Montgomery, Alabama – On July 23, 2021, a notice of dismissal was filed indicating that SpectraCare Health Systems, Inc. (“SpectraCare”) agreed to pay $1 million dollars to resolve a federal qui tam lawsuit alleging that it violated the False Claims Act, announced Acting United States Attorney Sandra J. Stewart.  The Government’s multi-year investigation, which spawned from a whistleblower complaint, investigated whether SpectraCare knowingly violated the False Claims Act by improperly billing Alabama Medicaid for Basic Living Skills services, and by failing to return overpayments to the Alabama Medicaid Agency, which constitutes a “reverse false claim” actionable under 3729(a)(1)(G) of the False Claims Act. 

            SpectraCare Health Systems, Inc. is a 501(c)(3) nonprofit organization headquartered in Dothan, Alabama, which provides integrated healthcare services, including developmental disability services, intermediate care medical services, behavioral health services, and preventative programs to a range of patients.  The company is contracted by the Alabama Department of Mental Health to provide services, which are paid for by the Alabama Medicaid Agency.

            This lawsuit was initially filed in the United States District Court for the Middle District of Alabama by a former SpectraCare employee under the qui tam, or whistleblower, provisions of the False Claims Act.  Pursuant to these provisions, a private citizen can bring suit on behalf of the United States and share in any recovery.  The United States will receive $743,193.00 of the $1 million dollar settlement, 19% of which will go to the relator as her share of the Government’s recovery in the matter.  The remaining $256,807.00 will be paid to the Alabama Medicaid Agency.

            The settlement resolves allegations that, from October 1, 2012 through December 31, 2019, SpectraCare (1) knowingly submitted to Medicaid claims for reimbursement for services that were billed without complete and correct documentation, billed in duplicate, over-billed, or otherwise improperly billed, and/or (2) knowingly made, used, or caused to be made or used, false records or statements material to SpectraCare’s obligation to return overpayments to Medicaid based on such improper billing procedures, and/or (3) knowingly, intentionally, or recklessly failed to repay, or to exercise reasonable diligence to determine whether it was obligated to repay, Medicaid for SpectraCare’s improper claim submissions and their attendant overpayments.

            This Affirmative Civil Enforcement matter was handled by Assistant United States Attorney Samantha R. Miller and the Civil Health Care Fraud Investigator of the United States Attorney’s Office, with assistance from Assistant Attorney General James Hartin of the Office of the General Counsel for the Alabama Medicaid Agency.  The case was investigated in conjunction with the Office of Inspector General for the United States Department of Health and Human Services.  The claims resolved by the settlement are allegations only, and there has been no determination of liability.

NEWARK, N.J. – One Essex County correctional officer, two sergeants, and one lieutenant were indicted for civil rights violations in connection with the assault of a federal pretrial detainee, Acting U.S. Attorney Rachael A. Honig announced today.

Officer Damion James, 41, was charged with assaulting the pretrial detainee in violation of his civil rights. Sgt. Herman Pride, 51, Sgt. Jennifer Whitley, 38, and Lt. Nicholas Palma, 46, were charged with failing to intervene to stop the assault. Sgt. Whitley was additionally charged with submitting a false report to cover up the assault. All four defendants will be arraigned on a date to be determined. 

According to documents filed in this case:

On the evening of Aug. 17, 2020, a federal pretrial detainee at Essex County Correctional Facility (ECCF) squirted a mixture of urine, yogurt, and milk onto a correctional officer. The detainee subsequently was transported to a disciplinary cell, where James assaulted the detainee, striking him multiple times in the body and face. Pride, Whitley, and Palma watched the assault, but none of them intervened to stop it.  

Two days after the assault, the detainee was taken to the emergency room at University Hospital in Newark. He was diagnosed with large swelling and tenderness in the right side of his face and discoloration and bruising around his right eye.

The defendants all were required to submit documentation regarding their use of force.  None of them submitted any such reports. Instead, Whitley submitted a report falsely indicating that no force had been used, when, in fact, Whitley, Pride, and Palma had watched James repeatedly assault the pretrial detainee. Officer Angel Chaparro previously pleaded guilty to his role in the submission of the false report. 

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; and the Essex County Correctional Facility Internal Affairs Bureau, under the direction of Director Alfaro Ortiz and the Office of the Warden, with the investigation leading to the charges.

The government is represented by Acting Principal Assistant U.S. Attorney Rahul Agarwal.

The charges and allegations in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.

SPRINGFIELD, Ill. – A former technology coordinator who worked for Blue Ridge Community School District in Farmer, City, Ill., Joshua Raymer, 45, was sentenced on July 22, 2021, to 30 months in federal prison, to be followed by a three-year term of supervised release, in relation to a scheme that defrauded the district of approximately $336,276 over two years. 

Raymer pleaded guilty to one count of wire fraud in connection with the scheme in February 2021. According to court documents, during the time Raymer carried out the scheme, from April 2016 to December 2018, he falsely represented to a district official that computer switches had failed, and replacements were needed to maintain the district’s computer system. Raymer repeatedly used his position to have the district order and pay for more than 100 computer switches that it did not use or need, from two separate vendors, at a total cost of more than $400,000. Another 28 computer switches were ordered that were never paid for that resulted in a loss to the vendor of approximately $106,200.

When Raymer received the switches, he admitted that he sold them as if they were his personal property and used the money for himself. Acting under his name and doing business as “The Bored Woodworker,” Raymer contacted at least five different buyers and negotiated a purchase price for the switches that had been shipped to and paid for by the Blue Ridge school district. Raymer then shipped the switches to his buyers and had payments issued to himself or his business name.

At the sentencing, U.S. District Court Judge Sue E. Myerscough also ordered Raymer to pay $460,373.77 in restitution. Raymer is required to pay $336,276 to the school district and its insurer and $106,200 to a computer vendor. The judge also ordered Raymer to pay an additional $17,897.77 to Special Olympics Illinois in relation to a theft from that organization, where Raymer worked following his employment with the school district. Raymer had agreed to pay restitution in relation to that uncharged conduct as part of his plea agreement.

“The Farmer City Police Department deserves praise for an outstanding investigation,” said Acting U.S. Attorney Douglas J. Quivey. “Public corruption at any level of government simply cannot be tolerated. Our school children deserve quality technology, and prosecution with a resulting prison sentence that includes restitution serves to restore a needed level of public trust and reminds us all that those who decide to cheat will pay a stiff price.”

The charges were investigated by the Farmer City, Ill., Police Department, with the full cooperation of the school district, which referred the matter to law enforcement. Assistant U.S. Attorney Timothy Bass represented the government in the prosecution.

NEW ORLEANS, LOUISIANA –The United States Attorney’s Office for the Eastern District of Louisiana announced today that RUDY GUNAWAN, age 41, a citizen of Indonesia, was sentenced on July 20, 2021 to time served by the Honorable Wendy B. Vitter on one count of possession of fraudulent immigration documents. Additionally, the Court ordered GUNAWAN to pay a $100 special assessment cost.

According to court documents, United States Customs and Border Protection (CBP) officers received information that GUNAWAN was in the United States illegally and using a Social Security card bearing the name and number of another person. On September 28, 2020, CBP officers encountered GUNAWAN at his place of employment, Samurai Sushi (Slidell, Louisiana). An officer asked for identification and GUNAWAN produced a U.S. Social Security card and claimed to be a U.S. citizen from Puerto Rico. GUNAWAN later admitted that he knew that the U.S. Social Security card was falsely made and that he had obtained the card from an individual in Memphis, Tennessee for $700. He also admitted that the name and number on the card were not lawfully issued to him and that he purchased the fraudulent documents in order to be able to stay within the United States and work.

U.S. Attorney Evans praised the work of United States Customs and Border Protection and the Social Security Administration in investigating this matter. Assistant United States Attorney Jon Maestri is in charge of the prosecution.

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NEWARK, N.J. – A Pennsylvania doctor and his wife were charged today for their roles in schemes to solicit and receive kickbacks and bribes in exchange for ordering genetic tests, Acting U.S. Attorney Rachael A. Honig announced today.

Yitzchok “Barry” Kurtzer, 61, and Robin Kurtzer, 60, both of Monsey, New York, are charged by indictment with various counts for participating in a scheme to solicit and receive kickbacks and bribes in exchange for ordering genetic tests. Yitzchok Kurtzer is also charged with health care fraud related to the kickback scheme. Two of Yitzchok Kurtzer’s employees, Amber Harris and Shanelyn Kennedy, have each previously pleaded guilty for their roles in the kickback scheme, and Lee Besen and Kimberly Schmidt have also each previously pleaded guilty for a related cash-for-genetic tests scheme. Sentencings for each of those defendants is pending.  

According to documents filed in this case:

Yitzchok Kurtzer was a primary care physician with separate offices in the Scranton, Pennsylvania, area. Robin Kurtzer helped manage those offices. Beginning in 2018, Yitzchok Kurtzer and Robin Kurtzer solicited and received monthly cash kickbacks and bribes in exchange for collecting samples from Medicare patients and sending them for genetic tests to clinical laboratories in New Jersey and Pennsylvania. The cash kickbacks ranged up to $5,000, and the Kurtzers typically accepted the cash in one of Yitzchok Kurtzer’s offices, at times behind locked doors. At one point, the Kurtzers complained that they were not getting paid enough and negotiated for higher kickbacks and bribes.

The Kurtzers were recorded receiving and discussing many of their kickback and bribe payments. After Yitzchok Kurtzer accepted a $5,000 cash kickback, he counted the money and said, “Perfect. Didn’t short me.”

The Kurtzers used their employees in the scheme, including Harris and Kennedy, who each helped collect the DNA swabs in exchange for payments to them. Robin Kurtzer was recorded admitting that Harris and Kennedy should not have to be “bribed” to do their work, but Robin Kurtzer said that she had no trouble “giving them money” as long as they produced results.

Yitzchok Kurtzer correlated genetic test swab collection to bribe and kickback payments, regardless of medical necessity. He instructed his staff to stop collecting genetic test swabs when he missed receiving a bribe and kickback payment, and he increased the volume of genetic test swabs when the kickback and bribe payments resumed. He admitted in a recording that he provided a patient false information to get the patient to agree to be swabbed for a genetic test. And unless a patient actively sought their genetic test results, Yitzchok Kurtzer failed to review or otherwise use those results.

Even as the ongoing COVID-19 pandemic substantially reduced in-patient visits, the Kurtzers continued their scheme. They went from receiving hand-delivered cash kickbacks and bribes to accepting payments by wire and through a cell phone money-transfer app. Yitzchok Kurtzer also offered to pay one of his employees to collect genetic test swabs from all of his patients who lived in nursing homes.

As a result of these schemes, Medicare was billed over $1.3 million for tests generated from Yitzchok Kurtzer’s practice.

The indictment contains the following charges:

The kickbacks, illegal remunerations, and health care fraud charged in Counts 2 through 7 and 11 are each punishable by a maximum of 10 years in prison. The kickback conspiracy and Travel Act charges in Counts 1 and 8 through 10 are each punishable by a maximum of five years in prison. All 11 counts are also punishable by a $250,000 fine, or twice the gross gain or loss from the offense.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark; IRS-Criminal Investigation, under the direction of Special Agent in Charge Michael Montanez in Newark; and U.S. Department of Health and Human Services, Office of Inspector General, Philadelphia Regional Office, under the direction of Special Agent in Charge Maureen R. Dixon, with the investigation leading to the charges. She also thanked the FBI Scranton Field Office, FBI Philadelphia Division, and the Pennsylvania Attorney General’s Office for their assistance.

The government is represented by Assistant U.S. Attorney Joshua L. Haber of the Health Care Fraud Unit and Acting Principal Assistant U.S. Attorney Rahul Agarwal.

The charges and allegations against Yitzchok Kurtzer and Robin Kurtzer are merely accusations, and they are presumed innocent unless and until proven guilty.

NEW ORLEANS, LA – United States Attorney Duane A. Evans announced that QUINCY JACKSON, age 31 of New Orleans, Louisiana, was charged on July 23, 2021 in a single count indictment by a Federal Grand Jury for violating the Federal Gun Control Act, Title 18 United States Code, Sections 922(g)(1) and 924(a)(2).

According to court documents, JACKSON was previously convicted of manslaughter, possession of heroin, and possession with intent to distribute cocaine. Being a felon, JACKSON is prohibited from possessing a firearm. He is charged with having a Glock semi-automatic handgun on July 5, 2021. If convicted of this offense, JACKSON faces a maximum term of ten (10) years imprisonment, a fine of up to $250,000.00, up to three (3) years of supervised release following any term of imprisonment, and a mandatory $100 special assessment fee.     

U.S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.  

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.

The case was investigated by the New Orleans Police Department and the Federal Bureau of Investigation. It is being prosecuted by Assistant U.S. Attorney Charles D. Strauss.

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FRESNO, Calif. — Michael Shafer, 33, of Modesto, pleaded guilty today to conspiracy to distribute and possess with intent to distribute heroin and conspiracy to distribute and possess with intent to distribute marijuana, Acting U.S. Attorney Phillip A. Talbert announced.

According to court documents, Shafer was the Vice President of the Hells Angels Motorcycle Club in Modesto in 2019. As part of a years-long investigation into the Hells Angels Motorcycle Club, investigators obtained a court-authorized wiretap for Shafer’s phone. The wiretapped calls and messages showed that Shafer was conspiring to distribute marijuana and heroin. Specifically, in April 2019, Shafer conspired with a former Hells Angels member who was incarcerated in Pleasant Valley State Prison to smuggle heroin into prison.

This case is the product of an investigation by the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service-Criminal Investigation, the Modesto Police Department, the Turlock Police Department, the Stanislaus County District Attorney’s Office, the California Department of Corrections and Rehabilitation, and the California Highway Patrol. Assistant U.S. Attorneys Ross Pearson and Laurel Montoya are prosecuting the case.

Shafer is scheduled to be sentenced by U.S. District Judge Dale A. Drozd on Oct. 22. Shafer faces a maximum statutory penalty of 40 years in prison, a mandatory minimum sentence of five years in prison, and a $5 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.

This effort is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) operation. OCDETF identifies, disrupts, and dismantles the highest-level criminal organizations that threaten the United States using a prosecutor-led, intelligence-driven, multi-agency approach. Additional information about the OCDETF Program can be found at www.justice.gov/OCDETF.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.

SACRAMENTO, Calif. — A 12-count indictment was unsealed today charging West Sacramento residents Kimberly Acevedo, 50, and Philip Rich, 49, with mail fraud, aggravated identity theft, possession of stolen mail, and unlawful possession of 15 or more unauthorized access devices, Acting U.S. Attorney Phillip A. Talbert announced.

According to the indictment, between March 2019 and March 2021, Acevedo and Rich perpetrated a mail fraud scheme that involved theft of U.S. mail, identity theft, and unlawful possession of dozens of stolen bank cards. Generally, Acevedo and Rich obtained the personally identifiable information (PII) of victims and used that information to apply for new credit cards, debit cards, checkbooks, and other financial instruments to be sent to the victims’ real home addresses. The defendants then submitted change-of-address requests to USPS at www.usps.com using the victims’ PII. These change-of-address requests rerouted the victims’ mail to defendants’ shared home address, where they would open the mail and use its contents to make fraudulent purchases and cash fraudulent checks.

This case is the product of an investigation by the U.S. Postal Inspection Service and the Yolo County Sheriff’s Office. Assistant U.S. Attorney Denise N. Yasinow and Special Assistant U.S. Attorney Robert J. Artuz are prosecuting the case.

If convicted, Acevedo and Rich both face a maximum statutory penalty of 20 years in prison for mail fraud, five years in prison for possessing stolen mail, and 10 years in prison for possessing more than 15 unauthorized access devices. The defendants also face a mandatory additional sentence of two years in prison if convicted of aggravated identity theft and a maximum fine of $250,000 on each count. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.

FORT WAYNE – Brian Nordan, 44, and Dustin Coleman, 43, both of Cassopolis, Michigan, were sentenced by United States District Court Judge Damon R. Leichty upon their pleas of guilty to wire fraud, announced Acting U.S. Attorney Tina L. Nommay.

Brian Nordan was sentenced to 42 months in prison, 2 years of supervised release and ordered to pay $2,981,357.05 in restitution.

Dustin Coleman was sentenced to 6 months in prison, 12 months of supervised release and ordered to pay 149,756.00 in restitution.

In March 2006, a dentist and owner of a local dental practice hired Brian Nordan to work as the chief marketing officer and general manager of the dental practice. Eventually, Nordan was trusted to take on even more responsibility for the day-to-day management of the dental practice. In this role, Nordan was eventually paid an annual salary of $250,000.00 per year. As general manager, Nordan was trusted to make decisions in the best interests of the dental practice and its over 100 employees.

In the spring of 2018, the owner of the dental practice became aware that Nordan had been fraudulently misappropriating funds from the dental practice for years through multiple schemes. Forensic accountants discovered that, among other mechanisms of fraud, Nordan had made use of company funds (through company credit cards and reimbursement checks) to pay for unauthorized personal expenses, used company funds to pay his personal credit cards, paid wages and benefits to his husband and sister when they were not actually working for the company, and had made unauthorized investments with his employer's money into a toothpaste company of which he was one of the owners, which sold toothpaste back to the dental practice at greatly marked-up rates. A forensic accounting determined the total fraud loss from Nordan’s fraudulent schemes, self-dealing, and unauthorized enrichment of family members to be $3,038,857.05.

Coleman was Nordan’s domestic partner and eventual spouse who was hired by Nordan in 2012 to work on marketing for the business.  Although it was found he did some work for the business, the dentist-owner of the practice did not know nor approve of Coleman’s employment.  From 2016-2018, Coleman received $149,756.00 in wages and benefits to which he was not entitled as a result of this “ghost employment” scheme. 

This case was investigated by the FBI’s Indiana Financial Crimes Task Force with the assistance of the Organized Crime and Corruption Unit of the Indiana State Police. This case was prosecuted by Acting United States Attorney Tina L. Nommay and Assistant United States Attorneys Sarah E. Nokes and Luke N. Reilander.

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            WASHINGTON – After a three-day trial, a federal jury convicted former Alabama Department of Corrections (ADOC) shift commander Willie M. Burks III, 42, of failing to stop an officer under his command from assaulting an inmate at ADOC’s Elmore Correctional Facility. The jury rendered its guilty verdict on July 21, 2021.

            The evidence at trial established that Burks watched calmly as his subordinate, Sergeant Ulysses Oliver, took a handcuffed and compliant inmate out of an observation room, threw him onto the ground, and then punched, kicked, and beat him with a baton. Rather than intervene, as Burks had been trained to do, Burks stood silent until the end of the beating, at which time he commented, “that’s fair.” When Oliver turned himself in for using excessive force, triggering an investigation, Burks instructed Oliver to write in his report that Burks had told him to stop, even though that was not true, in order to cover up his failure to intervene.

            “The Constitution requires officers to take reasonable steps to stop excessive force when they know of it and have the power to stop it,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Defendant Burks defied the Constitution, and ignored his oath as a law enforcement officer, when he casually watched a handcuffed and defenseless inmate in his custody being assaulted by an officer under his command. We stand ready to hold officers who commit federal civil rights violations inside of jails and prisons accountable for their misconduct.”

            “Correctional officers have an incredibly difficult and important job,” said Acting U.S. Attorney Sandra J. Stewart for the Middle District of Alabama. “Although a vast majority of them serve with honor, cases like this damage public trust and make the job they do more difficult.  When officers abandon their oath to protect and serve, and turn a blind eye to criminal conduct, they must be held accountable.  This office is committed to prosecute anyone who violates the law.”

            “When a law enforcement officer accepts his or her oath of office they also accept the higher standard they must adhere to,” said FBI Special Agent in Charge James Jewell of the FBI’s Mobile Division. “The abuse of prisoners should not, and will not, be tolerated by the men and women of the FBI and their work in this case was exemplary. The cooperation of the multiple agencies involved in this case, and most specifically the Alabama Department of Corrections, is a testament to their dedication to the administration of justice.”

            “We condemn in the strongest possible terms Burks’ behavior and blatant violation of his sworn oath to serve, said Chief Law Enforcement Officer Arnaldo Mercado for the Alabama Department of Corrections’ Law Enforcement Services Division. “We extend our thanks to the DOJ for their assistance in bringing forth justice in this case.”

            Burks is the fourth correctional officer to be convicted in federal court in connection with this assault.  Former ADOC Sergeant Ulysses Oliver previously pleaded guilty for assaulting the inmate, and former Corrections Officers Briana Mosley and Leon Williams, who were also present during the assault, previously pleaded guilty for failing to intervene.

            Burks will be sentenced in November. He faces a statutory maximum sentence of 10 years in prison. 

            This case was investigated by the FBI’s Mobile Division and ADOC’s Law Enforcement Services Division. It was prosecuted by Assistant U.S. Attorney Eric Counts of the Middle District of Alabama, and Trial Attorneys Katherine DeVar and David Reese of the DOJ’s Civil Rights Division.

            Separately, the Department of Justice is prosecuting a civil case against Alabama and ADOC that alleges a pattern or practice of excessive force by ADOC security staff in violation of the United States Constitution.  United States v. Alabama, No. 2:20-cv-01971-RDP (N.D. Ala.).  

NEWARK, N.J. – A former pharmaceutical sales representative was charged today for his role in a scheme to defraud a telecommunications company’s health care plan by billing for medically unnecessary compounded prescriptions, Acting U.S. Attorney Rachael A. Honig announced.

Carmine A. Mattia Jr. 60, of Cedar Grove, New Jersey, was indicted on one count of conspiracy to commit health care fraud and three counts of health care fraud. He will have his initial appearance on a date to be determined. 

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

Compounded medications are specialty medications mixed by a pharmacist to meet the specific medical needs of an individual patient. Although not approved by the Food and Drug Administration (FDA), they are properly prescribed when a physician determines that an FDA-approved medication does not meet the health needs of a particular patient, such as if a patient is allergic to a dye or other ingredients in the prescription.

The scheme centered on Mattia’s work as a sales representative for a marketing company and various compounding pharmacies, for which he sold compounded medications, including pain creams, scar creams, wound creams, and metabolic supplements/vitamins. Mattia was also a full-time employee of the telecommunications company and was a union representative for the company’s employees.

Between April 2016 and July 2016, Mattia participated in a conspiracy to submit fraudulent prescriptions for compounded medications to the telecommunications company’s health care plan. The compounding pharmacies paid Mattia a commission in exchange for each prescription for compounded medication Mattia caused to be billed to the company’s health care plan.

To fraudulently increase his profits as a sales representative, Mattia recruited Individual-1 to receive medically unnecessary compounded medications. Mattia paid Individual-1 to induce Individual-1 to receive these medications. Mattia also secured the signature of a New Jersey doctor, Robert Agresti, on prescription forms for Individual-1. Agresti and Individual-1 did not have a doctor/patient relationship, Agresti did not determine if Individual-1 needed the compounded medications selected, and he did not examine Individual-1. Agresti pleaded guilty on June 26, 2018, to conspiracy to commit healthcare fraud and is awaiting sentencing.

Mattia’s participation in the scheme caused a loss to the telecommunications company’s health care plan of approximately $100,000.   

The conspiracy charge and substantive health care fraud charges each carry a statutory maximum of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense, whichever is greatest.

Acting U.S. Attorney Honig credited special agents of the FBI, under the direction of Special Agent in Charge George M. Crouch Jr. in Newark, with the investigation leading to today’s indictment.

The government is represented by Assistant U.S. Attorneys Emma Spiro and Sean M. Sherman of the U.S. Attorney’s Office, Opioid Abuse Prevention and Enforcement Unit in Newark.

The charge and allegations contained in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

Eleven defendants from the Joplin, Missouri, area have now been charged in a third superseding indictment for a kidnapping conspiracy that led to the death of an Osage citizen and for attempting to obstruct the ensuing federal investigation.

“The 11 defendants charged were allegedly involved in either the kidnapping and resulting death of Jolene Walker Campbell or with threatening witnesses and concealing evidence to cover up their crimes,” said Acting U.S. Attorney Clint Johnson. “This indictment reflects a year’s worth of thorough investigative work and commitment from FBI special agents and federal prosecutor Kevin Fletcher to provide justice for the victim and her family.”

Jolene Walker Campbell’s body was discovered on July 15, 2020, in a remote field in Mayes County within the boundaries of the Muscogee Nation. The victim’s identity was initially unknown. Through an investigation involving the FBI, Mayes County Sheriff’s Office, Muscogee Nation Lighthorse Police Department and the Joplin Police Department, Ms. Walker Campbell was soon identified. The kidnapping and resulting death is alleged to have occurred between July 4 and 5, 2020.

Brothers Tre Robert Allan Ackerson and Lane Ryan Bronson along with Jacob Ryan Scribner and Kimberly Kay Grissom are newly charged in the third superseding indictment. Grissom is Ackerson and Bronson’s mother. The two brothers are in state custody in Missouri. Scribner and Grissom remain at large. All other defendants are in custody or are on pre-trail release.

Defendants Breanna Lynn Sloan, Tre Robert Allen Ackerson and Lane Ryan Bronson, all non-Indians, are charged with a kidnapping conspiracy that resulted in the death of Jolene Walker Campbell, a citizen of the Osage Nation. According to the indictment, the defendants conspired with one another and others to kidnap the victim whom they suspected was a federal informant. On July 4, 2020, Bronson allegedly pointed a gun at the victim’s head and forced her into a vehicle in Joplin, Missouri. Between July 4 and July 5, 2020, Ackerson and Sloan are alleged to have transported the victim across state lines into Oklahoma, through both the Cherokee and Muscogee Nations, and left her body in a field in Mayes County within the boundaries of the Muscogee Nation. Counts 1-3 relate to the kidnapping and death of Ms. Walker Campbell.

In count 4, the trio is further charged with desecrating the victim’s body by disposing of it to conceal the crime and to impede any possible investigation and prosecution.

Chloe Louise Stith, David William Morris, Breanna Lynn Sloan, Morgan Lee Bowman, Sarah Michelle Humbard, Megan Louise Detherage, Ariel Sue Paige Divine, Tre Robert Allen Ackerson, Lane Ryan Bronson, Jacob Ryan Scribner, and Kimberly Kay Grissom are charged in Count 5with conspiracy to tamper with a witness, victim, and informant by using and threatening physical force.  From July 5, 2020, to the date of the third superseding indictment (July 20, 2021) the defendants allegedly intimidated, threatened, and used physical force against at least four victims/witnesses/informants to prevent them from communicating with agents regarding the death of Ms. Walker Campbell.

Chloe Louise Stith, Ariel Sue Paige Divine, Tre Robert Allen Ackerson and Layne Ryan Bronson are charged in Count 6 with disposing of the victim’s belongings and her body on July 5, 2020, to make them unavailable as evidence in an investigation into the killing.

Breanna Lynn Sloan, Morgan Lee Bowman, Megan Louise Detherage, Tre Robert Allen Ackerson, and Lane Ryan Bronson are charged with tampering with a witness, victim, and informant in Count 7. On July 7, 2020, the defendants allegedly bound and blindfolded two witnesses, kidnapped them, and took them to a remote location. According to the indictment, the defendants then shot at Witness 1 with a semi-automatic rifle and told the witness to “dance” while Witness 2, still blindfolded, was forced to listen to the gunshots and Witness 1 scream. The two were then warned not to speak with law enforcement. In Count 8, the same defendants are charged for attempting to destroy evidence of the assault by cleaning one of the witnesses’ car with bleach.

Tre Robert Allen Ackerson, Lane Ryan Bronson, and Jacob Ryan Scribner are charged in Count 9 with tampering with a witness, victim, and informant when they allegedly carjacked Witness 1 to remind and warn the witness not to speak with law enforcement about the federal investigation. The incident occurred on July 19, 2020, two days after the news reported that the body found in Oklahoma was Ms. Walker Campbell.

Breanna Lynn Sloan is charged in Count 10 with tampering with a witness, victim, or informant by corrupt persuasion when on Aug. 8, 2020, she allegedly offered Witnesses 1 and 2 $1,000 if the witnesses recanted their testimony in Missouri state court against Tre Robert Allen Ackerson for the carjacking discussed in Count 9.

In Count 11, David William Morris, Sarah Michelle Humbard and Lane Ryan Bronson are charged with threatening physical force against Witness 2 with intent to hinder the witness’ testimony in Missouri state court. On Aug. 11, 2020, Morris and Humbard allegedly reminded Witness 2 about the death of Ms. Walker Campbell, warned that the witness was playing with fire, and directed the defendant to drive to a hotel in Carthage, Missouri, where they met Bronson. The indictment states that Bronson then demanded that Witness 2 appear in court the next day and change his testimony about Tre Robert Allen Ackerson or he would pay.

Chloe Louise Stith and Lane Ryan Bronson are charged in Count 12 with tampering with a witness, victim and informant. On Aug. 13, 2020, the two defendants allegedly covered Witnesses 3 and 4’s eyes with duct tape, bound their hands with zip ties, forced them into a car, and took them to a remote location. Bronson then allegedly beat Witness 3 while making Witness 4 watch. He stated that he heard Witness 4 was talking about the disappearance of Ms. Walker Campbell. He then allegedly warned that witness 4 would be beaten if the witness spoke to law enforcement.

Chloe Louise Stith and Jacob Ryan Scribner are charged in Count 13 with conspiracy to retaliate against a witness, victim and informant. On Aug. 22, 2020, the two allegedly conspired together and with others to retaliate against Witness 4 for speaking to authorities.

Finally, in Count 14, Tre Robert Allen Ackerson, Jacob Ryan Scribner, and Kimberly Kay Grissom are charged with conspiracy to retaliate against a witness, victim and informant. On April 26, 2021, they are alleged to have conspired together and with others to retaliate against Witness 3.

An indictment is merely an allegation and defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

Below is a list of defendants named in the indictment:

Chloe Louise Stith, 34

David William Morris, 34

Breanna Lynn Sloan, 22

Morgan Lee Bowman, 26

Sarah Michelle Humbard, 24

Megan Louise Detherage, 27

Ariel Sue Paige Divine, 29

Tre Robert Allen Ackerson, 27

Lane Ryan Bronson, 28

Jacob Ryan Scribner, 33

Kimberly Kay Grissom, 46

Assistant U.S. Attorney Kevin Fletcher is prosecuting the case. AUSA Fletcher is a prosecutor from the U.S. Attorney’s Office in the Northern District of Iowa. He volunteered to assist prosecution efforts here in the Northern District of Oklahoma due to increased jurisdictional responsibilities regarding crimes involving Native American victims or defendants and that occur within the Muscogee (Creek) Nation and Cherokee Nation Reservations.

            WASHINGTON – A longtime payroll administrator was found guilty today of wire fraud and other charges for a scheme in which she embezzled more than $1.5 million from her former employer, announced Acting U.S. Attorney Channing D. Phillips and Robert E. Bornstein, Acting Special Agent in Charge of the FBI Washington Field Office Criminal Division.

            Eleanor Milligan, 61, of Silver Spring, Md., was found guilty of a total of 13 counts, including wire fraud, aggravated identity theft, and first-degree theft. The verdict followed a trial in the U.S. District Court for the District of Columbia. The Honorable Timothy J. Kelly scheduled sentencing for Oct. 22, 2021.

            According to the government’s evidence, except for brief periods, Milligan worked from 1998 to 2016 for a company based in Washington, D.C.  Beginning in at least or about August 2009, and continuing until in or about March 2016, Milligan used her fellow employees’ names and personal identifying identification without authority to transmit false payment requests to herself through the employer’s payroll processing system. In total, Milligan caused more than $1.5 million in fraudulently obtained payments to be direct-deposited into accounts under her control and otherwise paid for her benefit.

            In announcing the verdict, Acting U.S. Attorney Phillips and Acting Special Agent in Charge Bornstein commended the work of those who investigated the case from the FBI’s Washington Field Office. They also expressed appreciation for the assistance provided by the Metropolitan Police Department (MPD). They commended the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialists Chad Byron and Michon Tart, Victim-Witness Service Coordinator Tonya Jones, Supervisory Litigation Technology Specialist Leif Hickling, and Litigation Technology Specialist Jeanie Latimore-Brown. Finally, they acknowledged the work of Assistant U.S. Attorneys Diane Lucas and Christine Macey, who prosecuted the matter.

BEAUMONT, Texas – A Honduran national residing in Port Arthur has pleaded guilty to federal violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today. 

Santos Orellana-Hernandez, 47, pleaded guilty to use of interstate commerce facilities in the commission of murder-for-hire, tampering with a witness by intimidation and threats, and conspiracy to commit witness tampering.  Orellana-Hernandez entered his guilty plea today before U.S. District Judge Thad Heartfield.

“Public safety in the Eastern District of Texas is enhanced by the excellent partnerships we have between local and federal law enforcement.  In this case, as soon as the Port Arthur Police Department learned of the defendant’s plot to kill his Port Arthur family’s relatives in Honduras, they coordinated with the FBI, who moved swiftly to prevent any bloodshed,” said Acting U.S. Attorney Nicholas J. Ganjei.  “I also commend the tremendous work of the investigative and prosecutorial team, which flew to Honduras to interview witnesses and prepare the criminal case against Mr. Orellana-Hernandez.  Because of the excellent work of law enforcement in this matter, lives were saved.”

“Today’s announcement highlights the FBI's efforts in Beaumont, the FBI Legal Attaché office, and its local law enforcement and international partners to tirelessly and aggressively utilize all available investigative tools and methods at their disposal,” said Houston FBI Special Agent in Charge Perrye K. Turner.  “Law enforcement and the public must continue to work together to ensure our communities’ safety.”

“We appreciate the continued collaboration of the U.S. Attorney’s Office and the FBI on this case,” said Port Arthur Police Chief Timothy Duriso.  “We will continue to work closely with our federal partners to make Port Arthur a safer place.”

According to information presented in court, from January to March of 2020, Orellana-Hernandez, residing in Port Arthur, Texas, solicited the murder of two extended family members residing in Honduras.  Specifically, Orellana-Hernandez solicited Gustavo Ramires, a person located in Honduras, to kill Orellana-Hernandez’s mother-in-law, G.V., and brother-in-law, J.A.V.  The purpose of the intended murders was revenge against Orellana-Hernandez’s soon-to-be ex-wife, who was seeking a divorce from Orellana-Hernandez in Jefferson County, Texas.  Orellana-Hernandez reportedly told E.A.V. that he would make her “cry tears of blood.”

Orellana-Hernandez offered to pay Ramires $200,000 in Honduran Lempira (approximately $8,000 in U.S. dollars) upon proof that Ramires had killed G.V., J.A.V., and two other individuals. Orellana-Hernandez directed Ramires to perform the killings on or after April 21, 2020, the date when the divorce was to become final.  Ramires was additionally instructed to provide photographic proof of the killings before he would receive payment.  Ramires later placed a recorded telephone call to Orellana-Hernandez, in which the two discussed the murder-for-hire plot, using coded language such as “planting the corn,” to refer to the killings.  Ramires later told investigators that “planting the corn” meant burying the victims’ bodies.

Orellana-Hernandez was indicted by a federal grand jury on May 20, 2020 and taken into federal custody.  In early June, while jailed, Orellana-Hernandezconspired with another person to intimidate E.A.V. in an attempt to make her withdraw the murder-for-hire accusation. On Nov. 4, 2020, the grand jury returned a superseding indictment that added the witness tampering charges. 

Orellana-Hernandez faces up to 20 years in federal prison.  The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney John B. Ross and Special Assistant U.S. Attorney Sean C. Day.             

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            WASHINGTON – A California man pleaded guilty today to sexual abuse and admitted to the abusive sexual contact of numerous women, as well as photographing and recording dozens of nude and partially nude women without their consent during his career as a U.S. government employee.

            According to court documents, Brian Jeffrey Raymond, 45, of La Mesa, was most recently employed by the U.S. government at the U.S. Embassy in Mexico City, Mexico. Raymond departed Mexico after an adult woman was observed nude and screaming for help from his balcony on May 31, 2020. The woman reported she had no memory of events after consuming drinks and food provided by Raymond.

            “Brian Raymond betrayed the trust granted to him as a U.S. government employee representing the United States abroad by engaging in years of predatory conduct sexually abusing, exploiting, and recording vulnerable women he targeted in the United States and around the world,” said Assistant Attorney General Kenneth A. Polite Jr. of the Justice Department’s Criminal Division.  “As demonstrated by Raymond’s prosecution and plea, the Department of Justice and its law enforcement partners will use all of the tools at our disposal to hold accountable those who victimize women.”

            During the subsequent investigation, law enforcement agents recovered hundreds of photographs and videos depicting more than 20 unconscious and nude or partially nude women from Raymond’s cell phones, iCloud account, and other electronic devices. Raymond created these materials starting at least as early as 2006 and continuing up until May 30, 2020. Raymond’s hand is visible in photographs and videos manipulating his victims’ eyes, mouths, and limbs and fondling their breasts and buttocks. Raymond is also seen lying in bed with unconscious women on two different occasions. The women experienced memory loss during their time with Raymond and had no knowledge of the photographs, videos or physical contact. Internet history recovered from Raymond’s devices revealed searches for unconscious women, as well as searches for the side effects of prescription drugs combined with alcohol, for example, “ambien and alcohol side effects,” “Ambien dissolve,” “Ambien and alcohol pass out” and “passed out and carried.”

            “Thanks to the coordinated efforts of law enforcement here and abroad, Brian Raymond was brought to justice for the sexual and exploitive crimes he repeatedly committed against numerous women,” said Acting U.S. Attorney Channing D. Phillips for the District of Columbia. “We hope that this guilty plea brings some solace to his many victims.”

            In the plea agreement, Raymond admitted he engaged in sexual intercourse with two of the victims depicted in the recordings when both were incapable of appraising the nature of the conduct or consenting to it. These offenses occurred on May 30, 2020, and March 26, 2020, in Raymond’s embassy-leased residence in Mexico City. Additionally, Raymond admitted that over the course of 14 years he recorded and/or photographed at least 24 unconscious and nude or partially nude women and touched the breasts, buttocks, groin area and/or genitalia of numerous women while they were incapable of consent. Raymond transported these obscene materials, specifically 479 photographs and videos of 20 unconscious and nude or partially nude women, into the United States. While under investigation, Raymond attempted to delete the photographs and videos from his devices and internet accounts and made materially false statements to law enforcement. 

            “Today’s guilty plea of Brian Jeffrey Raymond sends a strong message: The Diplomatic Security Service is committed to making sure U.S. government employees who engage in predatory behavior for which they can be charged with a criminal offense face serious consequences,” said Acting Assistant Director for Domestic Operations Julia Sweeney of the U.S. Department of State’s Diplomatic Security Service (DSS). “Our strong relationships with the U.S. Department of Justice and U.S. and foreign law enforcement partners around the world continue to be essential in the pursuit of justice.”

            “Brian Jeffrey Raymond’s guilty plea is a step in the right direction in the pursuit of justice for the many victims of his predatory behaviors,” said Assistant Director in Charge Steven M. D’Antuono of the FBI’s Washington Field Office. “The FBI is grateful to the brave women who came forward to provide information to further this investigation and put a stop to Raymond’s actions.”

            Raymond will be sentenced at a date to be determined and faces a maximum penalty of life in prison, a fine of $250,000, a term of supervised release of at least five years and mandatory restitution. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors. 

            Trial Attorneys Jamie Perry and Danielle Hickman of the Justice Department’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney April Russo of the U.S. Attorney’s Office for the District of Columbia are prosecuting the case.

            The FBI and the Department of State’s DSS Office of Special Investigations are investigating the case. The Justice Department’s Office of International Affairs and National Security Division provided valuable assistance.

            The Department of Justice gratefully acknowledges the Government of Mexico, to include the Fiscalía General de la República and the Fiscalía General de Justicia de la Ciudad de México, for their extraordinary efforts, support and cooperation during the investigation.

            If you believe you have been a victim, have information about Raymond or know of someone who may have information about Raymond, the FBI requests that you fill out this secure, online questionnaire, email FBI at ReportingBJR@fbi.gov or call 1-800-CALL-FBI.

A 28-year-old Tulsa man was charged in federal court today after he allegedly enticed a 16-year-old and received sexually explicit pictures and videos of the girl, announced Acting U.S. Attorney Clint Johnson.

Alexander Nicholaus Sweet, of Tulsa, made an initial appearance today in federal court after being charged by Criminal Complaint with coercion and enticement of a minor, production of child pornography, receipt of child pornography and possession of child pornography. Sweet will next appear in court for a detention hearing on July 30.

The FBI Oklahoma City Field Office requests any other possible victims to contact the agency at 405-290-7770.

According to the affidavit filed with the Complaint, in December 2020, the FBI received information that Sweet was in an intimate relationship with a 16-year-old girl and was in possession of sexually explicit images of the victim that is considered child pornography. The information was allegedly corroborated during a resulting investigation.

The defendant also allegedly bragged about dating underage girls on multiple social media platforms.

The FBI and Tulsa Police Department are the investigative agencies. Assistant U.S. Attorneys Edward Snow and Christopher Nassar are prosecuting the case.

This matter will proceed in U.S. District Court in Tulsa, where the Complaint is currently pending. A Complaint is a temporary charge alleging a violation of law. For the case to proceed to trial, the United States must present the charge to a federal Grand Jury within 30 days. Once a Grand Jury returns an Indictment, a defendant has a right to a jury trial at which the United States would have the burden of proving the defendant’s guilt beyond a reasonable doubt. All defendants are presumed innocent until proven guilty in a court of law.

SHERMAN, Texas – The former mayor of Richardson, Texas, and a land developer whom she married post-indictment but in advance of trial, have been convicted of federal bribery and tax fraud violations in the Eastern District of Texas, announced Acting U.S. Attorney Nicholas J. Ganjei today.

Laura Jordan, also known as Laura Maczka, 56, and Mark Jordan, 54, both of Plano, Texas were found guilty by a jury following a three-week trial before U.S. District Judge Amos Mazzant III.  Both defendants were found guilty of bribery concerning a program receiving federal funds, conspiracy to commit bribery concerning a program receiving federal funds, tax fraud, and conspiracy to commit tax fraud.

“The cornerstone of a representative democracy is that citizens can rely on their elected officials to wield their official powers in a way that furthers the best interests of the community, rather than to benefit their friends and cronies,” said Acting U.S. Attorney Nicholas J. Ganjei.  “Today’s verdict will go a long way towards bolstering public confidence in the integrity of our democratic institutions and promoting open and honest governance.  I thank the jury for their service and commend the investigative and prosecutorial team for their tenacity and professionalism.”

“Ultimately, the trust of the citizens of Richardson was betrayed by Laura and Mark Jordan,” said Dallas FBI Special Agent in Charge Matthew J. DeSarno.  “Our elected officials are held to the highest standards, and Laura Jordan traded her responsibility to serve her constituents to enjoy a stream of financial benefits.  The FBI and our partners will continue to ensure that those who violate their obligation to the public are held fully accountable.”

According to information presented in court, from May 2013 through April 2015, Maczka was the mayor of Richardson, Texas, and Jordan was a land developer.  Maczka and Jordan conspired to devise and execute a scheme to commit bribery.  Maczka, contrary to her campaign promises, supported and repeatedly voted for controversial zoning changes sought by Jordan, ultimately allowing for the construction of over 1,000 new apartments in Richardson near other Richardson neighborhoods. In exchange, Jordan paid Maczka over $18,000 in cash, an additional $40,000 by check, and paid for over $24,000 in renovations to Maczka’s home.  Jordan also paid for luxury hotel stays and airfare upgrades for Maczka, and provided Maczka lucrative employment at one of Jordan’s companies.  According to court testimony, Maczka and Jordan failed to disclose to the public that they had coordinated to affect the zoning changes Jordan wanted and that Jordan had provided a stream of benefits to Maczka.

Maczka and Jordan were indicted by a federal grand jury on May 10, 2018.  Maczka and Jordan each face up to 10 years in federal prison.  The maximum statutory sentences prescribed by Congress are provided here for information purposes, as the sentencings will be determined by the court based on the advisory sentencing guidelines and other statutory factors.  Sentencing hearings will be scheduled after the completion of presentence investigations by the U.S. Probation Office.

This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Heather Rattan, Sean Taylor, Brent Andrus, and other attorneys from the Plano branch office. 

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A man with multiple prior convictions involving violence was sentenced today to eight years in federal prison. 

Trenton Sliekers, age 28, from Waterloo, Iowa, received the prison term after a guilty plea to possessing a firearm as a felon.  Statements at sentencing indicated that Sliekers used the firearm to shoot six times from a motorcycle at a residence that was then occupied by multiple people, including children.  Documents at sentencing noted that one of the bullets lodged in a couch cushion.   

At sentencing, the judge noted that Sliekers was a “violent man” and “very dangerous person” who had at least three prior crimes involving violence and who kept on “committing crime after crime after crime.”  The judge further found that Sliekers posed a “danger” and was “likely to reoffend.”    

Sliekers was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  Sliekers was sentenced to 96 months’ imprisonment.  He must also serve a three-year term of supervised release after the prison term.  There is no parole in the federal system.  Sliekers 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.

The case was prosecuted by Assistant United States Attorney Jake Schunk and investigated by the Waterloo Police Department and the Federal Bureau of Investigation. 

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

The case file number is 20-CR-2062-CJW-MAR.

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A man who took photographs of a child performing a sex act was sentenced today to more than twenty-eight years in federal prison.

Terrance Sullivan, age 63, from Waterloo, Iowa, received the prison term after a March 8, 2021 guilty plea to the sexual exploitation of a child.

At the guilty plea, Sullivan admitted that in September of 2019, he photographed a minor engaged in sexually explicit conduct with a Nikon digital camera.  At sentencing, the judge noted that Sullivan “systematically groomed” the child to “obtain her trust” for his own sexual gratification.  Sullivan’s actions required thoughtful planning, as he locked the door behind him in order to orchestrate taking photographs of the child, which he admitted he knew he should not be doing but thought it was fun.

Sullivan was sentenced in Cedar Rapids by United States District Court Judge C.J. Williams.  Sullivan was sentenced to 346 months’ imprisonment and fined $100.  He was also assessed additional assessments of $5,000.  He must also serve a five-year term of supervised release after the prison term.  There is no parole in the federal system.

Sullivan is being held in the United States Marshal’s custody until he can be transported to a federal prison.            The case was prosecuted by Assistant United States Attorney Elizabeth Dupuich and investigated by the Waterloo Police Department. 

This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse.  Led by the United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims.  For more information about Project Safe Childhood, please visit www.usdoj.gov/psc.  For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”

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

The case file number is 20-CR-2021.

Follow us on Twitter @USAO_NDIA.

NASHVILLE, – Howard L. Young, 75, the founder of a Nashville-based holistic wellness business was sentenced Friday by U.S. District Judge William L. Campbell, Jr. to eight years in prison, announced Acting U.S. Attorney Mary Jane Stewart for the Middle District of Tennessee.  Judge Campbell also ordered Young to pay $693,128.66 in restitution for operating a Ponzi scheme, in which he duped over 80 patients, financial institutions and investors out of nearly $700,000,

Young was charged in a criminal Information in October 2020 with four counts of bank fraud; six counts of wire fraud; and aggravated identity theft.  He pleaded guilty in December.

The charging documents allege, and Young admitted, that in 2015, Young founded Integrative Medical Services (IMS), purportedly a holistic wellness business.  Young also held himself out to hold a Doctor of Naturopathy but did not hold a Medical Doctorate and did not have a medical license. 

As early as 2017, Young began soliciting cancer patients, investors, and employees, telling them that he had obtained a $2 million grant from Vanderbilt University to study cancer patients and other patients with chronic medical conditions.  Young claimed he was awarded this grant because he had cured himself of cancer using naturopathic methods.  Young also promised that, as part of the “study,” patients would receive nutritional supplements, blood testing, nutrition and exercise coaching, gym memberships, massages, and acupuncture. For his scheme, Young targeted approximately 80 vulnerable victims, many of whom had been diagnosed with cancer or other debilitating medical conditions.

In order to participate in the “study,” Young told patients that Vanderbilt required an up-front payment of $10,000 but the funds would be returned to them at the conclusion of one year.  If patients could not afford to pay the upfront money, they were required to secure a CareCredit credit card or open a Health Credit Services account.  Each of these products is designed to assist patients in paying for medical treatments and functions like a revolving line of credit or an unsecured installment loan and requires the patient to make monthly installment payments.  Young promised patients that he would hold the initial funds withdrawn in escrow and would make all monthly payments and would pay off all existing balances at the conclusion of one year, so long as the patient continued to abide by all study protocols. 

In fact, Vanderbilt had not awarded any grants to Young or IMS.  Young’s representations that IMS had a grant from Vanderbilt were false and was intended to induce patients to apply for and obtain credit and loan accounts at Synchrony Bank, MetaBank, and Cross River Bank; to induce investors to give him funds for his fraudulent scheme; and to induce employees to help him solicit additional patients to participate in his fraudulent scheme.  Young even convinced one victim to transfer the title of his house to him in order to participate in the “study.”

Young did not hold the money in escrow as he promised and withdrew a portion of the funds for his own personal use, made payments to his personal credit cards, and made minimum payments on account holders’ credit accounts and loan accounts.  Patients did not routinely receive the nutritional supplements promised by Young, nor did they receive nutrition and exercise coaching, gym memberships, massages, or acupuncture as promised.  To further conceal his scheme, Young also changed the mailing addresses for patients’ accounts at CareCredit and HCS so that the monthly account statements went to a post office box he controlled.  Young made minimum payments on the CareCredit and HCS accounts to conceal the fraud and to keep his scheme going so that he could recruit additional patients to participate in the fictitious grant study.

IMS generated little, if any, revenue. The vast majority of funds flowing into IMS were deposits from the CareCredit credit accounts and the HCS loan accounts.  By July 2019, Young had received a total of approximately $669,470 from CareCredit and HCS.

This case was investigated by the FBI.  Assistant U.S. Attorney Kathryn W. Booth prosecuted the case.

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