PITTSBURGH – A Fayette County man has been indicted by a federal grand jury in Pittsburgh on charges of possession with intent to distribute and distribution of fentanyl, a Schedule II controlled substance, resulting in an overdose death and with possession with intent to distribute and distribution of heroin, a Schedule I controlled substance, Acting United States Attorney Soo C. Song announced today.

The two-count indictment, returned on June 6, named Jarrel Williams, age 29, as the sole defendant.

According to the indictment, on Jan. 17, 2017, Williams possessed with intent to distribute and distributed a quantity of fentanyl, which resulted in the serious bodily injury and death of an individual, identified only as M.S. Count two of the indictment alleges that, on Jan. 19, 2017, Williams distributed or possessed with intent to distribute a quantity of heroin.

The law provides for a maximum total sentence of life in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Rachael L. Dizard is prosecuting this case on behalf of the government.

The Drug Enforcement Administration, West Leechburg Police, Allegheny Township Police, and Pennsylvania State Police conducted the investigation leading to the indictment in this case.

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

BOSTON - A Guatemalan national was sentenced today in federal court in Boston for illegal reentry after deportation.

Manuel Castillo-Coroy, 41, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 10 months in prison and three years of supervised release.  Upon completion of this sentence, Castillo-Coroy will again be placed into removal proceedings and deported to Guatemala. Castillo-Coroy pleaded guilty in March 2017.

Federal authorities encountered Castillo-Coroy in September 2016, and determined him to be unlawfully present in the U.S. Castillo-Coroy had previously been deported in July 2013, February 2012, and April 2011.

Acting United States Attorney William D. Weinreb and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Weinreb’s Major Crimes Unit prosecuted the case.

ALBUQUERQUE – Lelander Mays, 31, an enrolled member of the Navajo Nation who resides in Red Mesa, Utah, pled guilty today in federal court in Albuquerque, N.M., to an involuntary manslaughter charge.

Mays was arrested in Dec. 2016, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Mays killed a man when Mays crashed his vehicle on Dec. 6, 2016, on the Navajo Indian Reservation in San Juan County, N.M. At the time of the crash, Mays was driving under the influence of alcohol and the victim, who was a passenger in Mays’ vehicle, was thrown from the vehicle.

Mays was subsequently indicted on Dec. 20, 2016, and charged with involuntary manslaughter.

During today’s proceedings, Mays pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Mays faces a maximum penalty of eight years in federal prison. A sentencing hearing has yet to be scheduled.

This case was investigated by the Farmington office of the FBI, the Navajo Nation Division of Public Safety and the New Mexico State Police. Assistant U.S. Attorney Nicholas J. Marshall is prosecuting the case.

PITTSBURGH - On June 6, 2017, after a lengthy investigation into drug trafficking in Pittsburgh, Pennsylvania, 10 Allegheny County residents were indicted by a federal grand jury in Pittsburgh on charges of violating federal narcotics and firearms laws, Acting United States Attorney Soo C. Song announced today.

“This case, compelled by the threat of gang activity in the Hill District, illustrates the effective partnership among local, state and federal law enforcement in Western Pennsylvania,” stated Acting U.S. Attorney Song. “We are allied in the effort to disrupt drug trafficking organizations, stem the flow of heroin and opioids and reduce violence in our communities. Cooperation with the offices of Pennsylvania Attorney General Josh Shapiro and Allegheny County District Attorney Stephen Zappala made these charges possible.”

THE INDICTMENTS

The first indictment, containing six counts, named:

• Angelo Massie, 39, formerly of Penn Hills, PA;
• Raheem Buchanan, 32, formerly of Pittsburgh, PA, currently incarcerated;
• Lamont Butler, 45, formerly of Munhall, PA, currently incarcerated;
• Mark Watson, 43, of Pittsburgh, PA;
• Russell Johnson, 41, of Braddock, PA;
• Thomas Grace, 33, of McKees Rocks, PA;
• Jason Green, 35, of Wilkinsburg, PA; and
• Jermaine Thompson, 31, of Pittsburgh, PA.
   

According to the indictment, from in and around November 2015, and continuing thereafter to in and around September 2016, the defendants conspired with one another to distribute and possess with intent to distribute one kilogram or more of heroin. Mark Watson is charged with one count of possession with intent to distribute heroin. Lamont Butler is charged with one count of possession with intent to distribute more than 100 grams of heroin, possession with intent to distribute cocaine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm by a convicted felon.

The law provides for maximum total sentences ranging from up to 20 years in prison up to life in prison, as well as mandatory minimum sentences starting at five years in prison. Fines ranging from $250,000 to up to $20,000,000 may be imposed. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

A second related indictment, containing one count, named:

• Robert Fields, Jr., 23, of Pittsburgh, PA; and
• Norman Blackwell, 42, formerly of Pittsburgh, PA, currently incarcerated.
   

According to the indictment, from in and around November 2015, and continuing thereafter to in and around January 2016, the defendants conspired with one another to possess with intent to distribute and distribute 100 grams or more of heroin.

The law provides for a mandatory minimum of five years and up to a maximum total sentence of 40 years in prison, a fine of up to $8,000,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Amy L. Johnston and Special Assistant United States Attorney Jonathan P. Fodi are prosecuting this case on behalf of the government.

The Allegheny County District Attorney Narcotics Enforcement Team – Narcotics, Firearms, & Violent Crime Task Force, as well as the Pennsylvania Office of the Attorney General – Bureau of Criminal Investigations, Organized Crime Section – Western Regional Office led the investigation, which resulted in the June 6, 2017 federal indictments.

These June indictments grew out of a federally administered Organized Crime and Drug Enforcement Task Force (OCDETF)s investigation that resulted in several federal indictments in August of 2016. The OCDETF task force is headed by the Federal Bureau of Investigation and is comprised of members drawn from the FBI Greater Pittsburgh Safe Street Task Force including the Pittsburgh Bureau of Police, Wilkinsburg Police Department, Allegheny County Sheriff’s Office, and the Allegheny County Police Department. Substantial assistance was provided by FBI San Juan, Puerto Rico (St. Thomas Resident Agency, U.S. Virgin Islands) and the United States Postal Inspection Service. Numerous other FBI field offices, including Detroit, Cleveland, New York, and Atlanta, in addition to the Bureau of Alcohol, Tobacco, and Firearms, also assisted with this investigation. The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.

The indictments from August 2016 were the result of an investigation, which utilized Title III wiretap intercepts and other investigative techniques to establish the existence of several overlapping and interrelated drug distribution networks with tentacles in the Western District of Pennsylvania, Northern District of Ohio, Eastern District of Michigan and the District of the Virgin Islands. The FBI Greater Pittsburgh Safe Streets Task Force’s focus began in early 2015 on a drug trafficking organization operating on Pittsburgh’s North Side and thereafter they were able to track drug suppliers beyond the borders of the Western District of Pennsylvania and across the Caribbean Sea.

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

LAS VEGAS, Nev.– A Las Vegas man was sentenced on Tuesday by U.S. District Judge Robert C. Jones to 18 months in prison for breaking and entering into a U.S. Postal Service vehicle and stealing mail from the vehicle, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Javier Encinas, 30, pleaded guilty on March 1, 2017, to one count of breaking or entering carrier facilities and one count of theft or receipt of stolen mail.

According to the plea agreement, on April 19, 2016, Encinas used a crow bar to break and enter into a locked U.S. Postal Service vehicle and steal trays of mail and 23 parcels. On April 20, 2016, Encinas was stopped by law enforcement in a stolen car. Inside that car law enforcement officers found approximately 471 items of stolen mail. During an interview with law enforcement, Encinas admitted to breaking into the back of the postal vehicle using a crow bar and stealing the mail.

The case was investigated by the U.S. Postal Service and prosecuted by Assistant U.S. Attorney Alexandra Michael.

###

KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for receiving and possessing child pornography.

Darren S. O’Dell, 47, of Independence, was sentenced by U.S. District Judge Howard F. Sachs to seven years in federal prison without parole. The court also ordered O’Dell to pay $18,000 in restitution to 17 children identified as victims of his crime.

On Jan. 19, 2017, O’Dell pleaded guilty to one count of receiving child pornography and one count of possessing child pornography.

According to court documents, a state trooper was monitoring online activity over a peer-to-peer file-sharing network in September 2015 when O’Dell made images of child pornography available. Investigators executed a search warrant at O’Dell’s residence and seized two desktop computers, a laptop computer and an external hard drive.

Investigators discovered more than 27,000 images of child pornography and more than 350 videos of child pornography on O’Dell’s devices. The majority of child pornography depicted children under the age of 12, including adult/toddle rape scenes and prepubescent children in bondage. The recurring theme in O’Dell’s voluminous collection centers around the violent and overwhelming application of sexual force by an adult on a restrained prepubescent child. O’Dell admitted that he had been downloading child pornography for several years.

This case was prosecuted by Assistant U.S. Attorney David A. Barnes. It was investigated by the Independence, Mo., Police Department and the Missouri State Highway Patrol.

Project Safe Childhood

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."

CHARLESTON, W.Va. – A St. Albans man was sentenced today to four years in federal prison for a drug crime, announced United States Attorney Carol Casto. Harold Lee Parsons III, 40, previously pleaded guilty to possession with intent to distribute methamphetamine.

On February 5, 2016, law enforcement executed a search warrant at Parsons’ residence on 2nd Avenue in St. Albans. Parsons was present in his residence during the search and he opened a safe for law enforcement. Inside the safe were 12 baggies containing approximately 330 grams of methamphetamine. Parsons further admitted that he received the drugs from Joseph Cooper, a codefendant, and that he intended to distribute the methamphetamine.

As the result of a comprehensive drug investigation conducted by agents from the United States Postal Inspection Service, the Metropolitan Drug Enforcement Network Team, and Homeland Security Investigations, several defendants have been sentenced to federal prison. Cooper was sentenced to 14 years in federal prison for possession with intent to distribute methamphetamine. Benjamin Childers, another individual involved with the transport of methamphetamine in this drug trafficking organization, was sentenced to 10 years and a month in prison for conspiracy to distribute methamphetamine. Mark Cobb was sentenced to seven years in prison for conspiracy to distribute methamphetamine. Shayne Shamblen was also sentenced to seven years in prison for conspiracy to distribute methamphetamine. Mark Bays was sentenced to five years in prison for maintaining a residence for the purpose of distributing methamphetamine.

Several other individuals involved in the drug trafficking organization have entered guilty pleas and are awaiting sentencing. Morgan Light previously pleaded guilty to conspiracy to distribute methamphetamine and faces up to 20 years in federal prison when she is sentenced tomorrow. Jon Bowman previously pleaded guilty to using the mail to facilitate a drug crime and faces up to five years in prison when he is sentenced on June 14, 2017. David Huffman pleaded guilty to conspiracy to distribute methamphetamine and faces at least five and up to 40 years in prison when he is sentenced on June 21, 2017.

Gregory Crum and Diana Salazar Gamboa both pleaded guilty to conspiracy to distribute methamphetamine. Crum faces a minimum of 10 years and up to life in federal prison. Gamboa faces at least five and up to 40 years in federal prison. Beth Hammonds pleaded guilty to using the mail to facilitate a drug crime and faces up to five years in federal prison for her role in the conspiracy. Crum, Gamboa, and Hammonds are all scheduled to be sentenced on August 3, 2017.

Assistant United States Attorney Haley Bunn is responsible for these prosecutions. United States District Judge John T. Copenhaver, Jr., is presiding over these cases.

These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.

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SAN FRANCISCO –Alan Weissman was sentenced today to 30 months in prison for bank fraud, embezzlement from an employee pension benefit plan, and making false statements in documents required by the Employee Retirement Income Security Act (ERISA), announced United States Attorney Brian J. Stretch and the Employee Benefits Security Administration of the Department of Labor.  The sentence was handed down by the Honorable Charles R. Breyer, U.S. District Judge, following a guilty plea in which Weissman admitted he stole assets from ERISA plans for which he was supposed to be acting as a trustee.

Weissman, 72, of Rancho Palos Verdes, Calif., pleaded guilty on March 1, 2017, to the fraud scheme.  According to the plea agreement, Weissman served as a professional trustee and fiduciary of pension plans covered by ERISA.  Weissman admitted that he embezzled money from two of the pension plans for which he was a trustee.  Specifically, Weissman admitted he moved money from plan bank accounts to bank accounts under his control, and then used the money for his own purposes.  The defendant admitted he did so without the authorization or knowledge of the pension plan owners, their plan sponsors, or their participants.  Further, Weissman admitted that he attempted to hide the illegal transactions by falsely recording payments to himself in such a way as to make the payments look like legitimate plan expenses.  Weissman also admitted he altered account statements to conceal missing funds.  In sum, Weissman admitted embezzling $787,762 in plan funds. 

A grand jury indicted Weissman on February 11, 2016, charging him with five counts of bank fraud, in violation of 18 U.S.C. § 1344; six counts of wire fraud, in violation of 18 U.S.C. § 1343; two counts of theft or embezzlement from an employee benefit plan, in violation of 18 U.S.C. § 664; and one count of making false statements and concealment of facts in relation to documents required by ERISA, in violation of 18 U.S.C. § 1027.  Pursuant to the plea agreement, Weissman pleaded guilty to one count of bank fraud, the two embezzlement counts, and the false statements and concealment count.

In addition to the prison term, Judge Breyer sentenced Weissman to serve 3 years of supervised release.  Judge Breyer scheduled a hearing on August 23, 2017, to determine the amount of restitution.  Judge Breyer ordered the defendant to begin serving his sentence on or before September 6, 2017. 

Assistant U.S. Attorney Benjamin Kingsley is prosecuting the case with assistance from Bridget Kilkenny and Beth Margen.  The prosecution is the result of an investigation by the San Francisco Field Office of the Employee Benefits Security Administration of the Department of Labor.

SAN JOSE – Gary Thornhill pleaded guilty today to wire fraud and mail fraud in connection with a scheme to steal more than a million dollars from a client’s trust account, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.  The plea was accepted by the Honorable Lucy M. Koh, U.S. District Judge.

On March 24, 2016, a federal grand jury indicted Thornhill, 64, of Santa Clara, on charges that he used his position in a boutique insurance brokerage to withdraw funds from a widow’s client trust account.  During today’s plea proceedings, Thornhill admitted he is a licensed insurance broker who owned and operated a boutique insurance brokerage in Santa Clara.  In 1998, he sold an insurance policy to a married couple and, after the husband passed away in 2005, the widow became the sole insured of the plan.  In or about February 2008, Thornhill became the trustee of the entity that was the legal owner of the policy.  Thornhill acknowledged that he owed a fiduciary duty to the widow both as his client and as the trustee for the entity that managed the insurance policy.  Thornhill admitted that instead of acting in his client’s best interest, he transmitted written requests for funds to be drawn against the cash value of the widow’s insurance policy—he did so without the widow’s prior knowledge, consent, or authorization.  

Specifically, on October 27, 2011, Thornhill faxed a request for disbursement from the existing cash value of the policy in the net amount of $800,000.  After receiving the check in the mail, Thornhill deposited it into a bank account of which he was the only authorized signatory; he thereafter transferred all of the funds into a personal bank account that he controlled.  Further, Thornhill admitted he spent all of the funds he had obtained from the policy on personal expenses that were unrelated to his client.  In sum, as a result of his scheme, the defendant obtained nearly $1.5 million in unauthorized funds from his client’s policy that he used for his own personal benefit and purposes. 

The grand jury charged Thornhill with one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of mail fraud, in violation of 18 U.S.C. § 1341.  Pursuant to today’s plea agreement, Thornhill pleaded guilty to both counts without a written agreement.  Judge Koh has set sentencing for September 14, 2017, at 10:00 a.m.  The defendant remains free on bond. 

The defendant faces a maximum sentence of 20 years’ imprisonment, a fine of $250,000, plus restitution for each of the two counts with which he was charged.  However, any sentence will be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553. 

Assistant U.S. Timothy J. Lucey is prosecuting the case with the assistance of Laurie Worthen.  The prosecution is the result of an investigation the by the Federal Bureau of Investigation. 

ALEXANDRIA, Va. – A federal jury convicted an Alexandria man today of providing material to the Islamic State of Iraq and al-Sham (ISIS).

According to court records and evidence presented at trial, Mohamad Jamal Khweis, 27, left the United States in mid-December 2015, and ultimately crossed into Syria through the Republic of Turkey in late December 2015. Before leaving, Khweis quit his job, sold his car, closed online accounts, and did not tell his family he was leaving to join ISIS. During his travel to the Islamic State, he used numerous encrypted devices to conceal his activity, and downloaded several applications on his phone that featured secure messaging or anonymous web browsing. Khweis used these applications to communicate with ISIS facilitators to coordinate and secure his passage to the Islamic State.

“Khweis is not a naïve kid who didn’t know what he was doing,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, who is also serving as the Acting Assistant Attorney General for National Security. “He is a 27-year-old man who studied criminal justice in college. He strategically planned his travel to avoid law enforcement suspicion, encrypted his communications, and planned for possible alibis. Khweis knew exactly what he was doing, knew exactly who ISIS was, and was well aware of their thirst for extreme violence. Nonetheless, this did not deter him. Instead, Khweis voluntarily chose to join the ranks of a designated foreign terrorist organization, and that is a federal crime, even if you get scared and decide to leave. This office, along with the National Security Division and our investigative partners, are committed to tracking down anyone who provides or attempts to provide material support to a terrorist organization.”

After arriving in Syria, Khweis stayed at a safe house with other ISIS recruits in Raqqa and filled out ISIS intake forms, which included his name, age, skills, specialty before jihad, and status as a fighter. When Khweis joined ISIS, he agreed to be a suicide bomber. In February 2017, the United States military recovered his intake form, along with an ISIS camp roster that included Khweis’ name with 19 other ISIS fighters.

“Mohamad Khweis purposefully traveled overseas with the intent to join ISIL in support of the terrorist group’s efforts to conduct operations and execute attacks to further their radical ideology,” said Andrew W. Vale, Assistant Director in Charge in Charge of the FBI’s Washington Field Office. “Furthermore, when ISIL leaders questioned Khweis' commitment to serving as a suicide bomber to carry out acts of terrorism, Khweis stated that he agreed and recognized that ISIL uses violence in its expansion of its caliphate. Today’s verdict underscores the dedication of the FBI and our partners within the Joint Terrorism Task Force in pursuing and disrupting anyone who poses a risk of harm to U.S. persons or interests or by providing material support to a terrorist group.”

During the trial, Khweis admitted to spending approximately 2.5 months as an ISIS member, traveling with ISIS fighters to multiple safe houses and participating in ISIS-directed religious training. Kurdish Peshmerga military forces detained Khweis in March 2016. A Kurdish Peshmerga official testified at trial that he captured Khweis on the battlefield after Khweis left an ISIS-controlled neighborhood in Tal Afar, Iraq.

On a cross examination, Khweis admitted he consistently lied to United States and Kurdish officials about his involvement with ISIS, and that he omitted telling United States officials about another American who had trained with ISIS to conduct an attack in the United States.

The jury convicted Khweis on all three charged counts, including providing and conspiring to provide material support or resources to ISIS, and a related firearms count. Khweis faces a mandatory minimum of 5 years and a maximum penalty of life in prison when sentenced on October 13. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Acting Assistant Attorney General for National Security; and Andrew W. Vale, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the verdict. Assistant U.S. Attorney Dennis Fitzpatrick and Special Assistant U.S. Attorney Raj Parekh are prosecuting the case.

The FBI’s Joint Terrorism Task Force provided assistance in this case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-143.

SACRAMENTO, Calif. — Crystal Candiece Cooper, 35, pleaded guilty on Tuesday to executing a bank fraud scheme with contents of stolen U.S. Mail, aggravated identity theft, and possession of stolen U.S. Mail, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between December 19, 2015 and March 27, 2017, Cooper and others operated an identity theft scheme. Cooper obtained financial and identity information, checks, credit cards and bank cards from stolen U.S. mail and used them to get cash, goods, and services. Cooper targeted postal customers in Red Bluff.

One victim had applied for federal social security benefits and expected to receive a debit card in the mail to access the money. Instead, Cooper obtained the mail stolen from the victim and found the victim’s debit card and other identifying information. Cooper was able to activate the card and set a PIN to give her access to the funds. She made four separate cash withdrawals using the bank card.

When Cooper was arrested by federal agents on March 27, 2017, Cooper possessed more stolen mail and identity information such as Social Security numbers, dates of birth, and driver’s license numbers for residents of Tehama and Shasta Counties.

This case is the product of an investigation by the United States Postal Inspection Service with assistance from the Tehama County Sheriff’s Department and the Red Bluff Police Department. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.

Cooper is scheduled to be sentenced on September 12, 2017, by U.S. District Judge John A. Mendez. Cooper faces a maximum statutory penalty of up to 30 years in prison and a $1 million fine for the bank fraud conviction, a mandatory two years in prison consecutive to any other term and a $250,000 fine for the aggravated identity theft, and five years in prison and a $250,000 fine for possession of stolen mail. 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.

SAN DIEGO – Three individuals were arrested today in connection with a scheme to defraud victims seeking immigration status in the United States. As part of the fraud, two of defendants – Hardev Panesar and Rafael Hastie – posed as officers of the Department of Homeland Security (DHS) and promised that they could obtain immigration status for people in exchange for exorbitant fees. Gurdev Singh is also charged with assisting his conspirators in the fraudulent scheme.

According to a federal grand jury indictment unsealed today, although Panesar and Hastie have never worked at DHS, since at least 2014 they falsely claimed to be DHS agents and falsely stated they had the authority to obtain lawful immigration documents and legal status for individuals who lacked such status in the United States. Panesar and Hastie also falsely claimed they had the power to stop deportation proceedings.

According to the Indictment, the defendants defrauded victims out of approximately $6,000,000 from the scheme. Panesar, Hastie and Singh collected fees from victims under the guise that they would be able to provide immigration documents, and concealed from victims the fact that they would never be able to obtain immigration documents or status in the United States. Instead, the defendants converted the proceeds from the scheme to their personal use and benefit. Panesar, Hastie, Singh and others have solicited and recruited victims across the United States, including California and Indiana, and Mexico.

Panesar and Hastie convinced victims that they were agents, in part, because they showed fake agency credentials when meeting with the victims. Panesar and Hastie also provided immigration applications to victims and took fingerprints supposedly for immigration forms. They often demanded more money to speed up the process or guarantee the immigration documents by a certain date. Panesar, Hastie, and Singh never delivered on their promise to provide immigration documents, despite collecting thousands of dollars from each of the more than 150 victims.

 SUMMARY OF CHARGES

Count 1: 18 U.S.C. § 1349, Conspiracy to Commit Wire Fraud; Maximum Penalty 20 years in prison, $250,000 fine, forfeiture and restitution. (All defendants)

Counts 2-4: 18 U.S.C. § 1343, Wire Fraud; Maximum Penalty 20 years in prison, $250,000 fine, forfeiture and restitution (All defendants)

Counts 5-10: 18 U.S.C. § 912, False Personation of an Officer or Employee of the United States; Maximum Penalty 3 years in prison, $250,000 fine (Panesar and Hastie)

Count 11: 31 U.S.C. § 5324(a)(3), Structuring Domestic Financial Institutions; Maximum Penalty 10 years in prison, $250,000 fine, forfeiture (Panesar)

AGENCY

Federal Bureau of Investigation

*The charges and allegations contained in an Indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.

Union Treatment Center (“UTC”), a medical and physical therapy provider with clinics in Austin, Killeen, San Antonio, and Corpus Christi, will pay $3 million to settle civil health care fraud allegations, announced U.S. Attorney Richard L. Durbin, Jr. Under the settlement, UTC will also waive claims for payment exceeding $1.6 million and be permanently excluded from participating in federal health care programs. The settlement partially resolves a lawsuit under the False Claims Act alleging that UTC perpetrated a scheme to defraud the federal workers’ compensation program (“FECA program”).

“Today’s settlement reflects our commitment to combatting fraud in the federal health care system,” said U.S. Attorney Richard L. Durbin, Jr. “We will use all of the tools at our disposal, including civil litigation under the False Claims Act, to ensure the integrity of federally funded programs.”

The U.S. Department of Labor, Office of Workers’ Compensation Programs (“OWCP”) administers the FECA program, which covers roughly 3 million federal civilian and postal employees for job-related injuries. Benefits include payment of an injured worker’s medical and rehabilitation expenses. OWCP uses federal funds to reimburse health care providers that treat covered workers.

“UTC and its executives submitted false claims to the Office of Workers’ Compensation Programs under the guise that they were treating injured American workers pursuant to the Federal Employees’ Compensation Act. The U.S. Department of Labor’s Office of Inspector General will continue to work with our law enforcement partners to vigorously investigate medical providers who attempt to fraudulently obtain money from Department of Labor Programs intended to treat injured workers,” said Steven Grell, Special Agent in Charge, Dallas Regional, U.S. Department of Labor, Office of Inspector General.

“The Office of Workers’ Compensation Programs considers program integrity and fraud detection and prevention a top priority. We thank the law enforcement community for their investigative efforts – we also thank DOJ for their hard work in resolving this case. This settlement sends a strong signal to providers who submit false health care claims to the government that they will be held accountable for their actions.” Gary A. Steinberg – Deputy Director of OWCP, United States Department of Labor.

UTC claimed to specialize in treating workplace injuries. The company marketed itself to patients covered by the FECA program, targeting in particular unionized postal workers in Austin and San Antonio and civilian Army employees in the Corpus Christi area. In its civil complaint, the United States alleged that UTC, Garry Craighead, UTC’s former Chief Executive Officer, and Christine Craighead, its former Chief Operating Officer, orchestrated a scheme to overcharge OWCP for services and supplies allegedly rendered to patients covered by the FECA program. The United States asserted that, between January 1, 2009, and December 31, 2012, UTC fraudulently billed the FECA program for services it did not render; routinely overcharged for medical examinations; falsely inflated the time patients spent in therapy; and, billed for unnecessary services and supplies. The United States also accused UTC of offering, paying, soliciting, and receiving kickbacks in exchange for patient referrals. The government’s allegations may be found in a qui tam lawsuit captioned United States ex rel. Wheeler v. Union Treatment Centers, LLC, et al., no. SA:13-cv-4-XR (W.D. Tex.) The settlement agreement is not an admission of liability by UTC.

“The workers’ compensation program benefits thousands of postal employees who have received legitimate on-the-job injuries. This investigation should send a clear message to all healthcare providers that workers’ compensation fraud is a federal crime that carries serious consequences and will not be tolerated,” said Special Agent in Charge Maximo Eamiguel, U.S. Postal Service Office of Inspector General Southern Area Field Office. “The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the United States Postal Service.”

“This settlement further demonstrates the resolve of USACIDC”s Major Procurement Fraud Unit and our law enforcement partners to protect and defend the assets of the United States Army,” stated Frank Robey, director, USACIDC Major Procurement Fraud Unit.

The settlement with UTC is part of a larger enforcement initiative. Garry Craighead is currently serving a 14-year term of imprisonment as a result of his guilty plea to kickback and money laundering charges. The Court ordered Craighead to pay OWCP nearly $18 million in restitution for the damage he caused to the FECA program. His criminal case may be found at United States v. Garry Wayne Craighead, no. A:15-cr-348 (W.D. Tex.)Christine Craighead is awaiting trial on conspiracy, wire fraud, kickback, and aggravated identity theft charges. Her trial is set for October 30, 2017. The criminal case is captioned United States v. Christine Ann Craighead, 1:17-cr-88 (W.D. Tex.)

“Along with criminal prosecution, the FBI is committed to pursuing administrative and civil remedies with the United States Attorney's Office, and our partner investigative agencies, to prevent, deter, and recover government losses sustained by fraud waste and abuse,” stated FBI Special Agent in Charge Christopher Combs, San Antonio Division.

The United States Postal Service Office of the Inspector General, United States Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, and United States Department of Labor Office of the Inspector General conducted the investigation for the United States. Assistant United States Attorney John J. LoCurto and Auditor Jamie Cole, CPA handled the investigation for the United States Attorney’s Office.

A 26-year-old baggage handler at Austin Bergstrom International Airport (ABIA) faces up to twenty years in federal prison after pleading guilty to stealing items from checked baggage, including a .40 caliber Glock semi-automatic pistol, announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Austin Police Chief Brian Manley.

Appearing before United States Magistrate Judge Mark Lane this afternoon, Ja’Quan Johnson pleaded guilty to one count of theft from an interstate shipment and one count of possession of a stolen firearm. By pleading guilty, Johnson admitted that between November 29, 2016, and February 2, 2017, he stole seven handguns from inside passenger bags at ABIA.

Johnson remains on bond pending sentencing. Sentencing has yet to be scheduled.

The Federal Bureau of Investigation, Transportation Security Administration and the Austin Police Department’s Aviation Division conducted this investigation. Assistant United States Attorney Gregg N. Sofer is prosecuting this case for the Government.

Tampa, Florida – Acting United States Attorney W. Stephen Muldrow announces that Gary Todd Smith (“Todd Smith”) (47, Fayetteville, North Carolina) today pleaded guilty to conspiracy to commit mail and wire fraud affecting a financial institution, and to wire fraud affecting a financial institution. He faces a maximum penalty of 30 years in federal prison. A sentencing date has not yet been set.

According to court documents, Smith ran Smith Advertising, which turned into a massive fraud scheme. Smith borrowed money from over 150 people, wherein each earlier loan was repaid from subsequent loans. Smith lied about the purpose of the loans and conspirators created fake documents to mask the scheme.The company’s real books showed that, as a result of the scheme and on the date the company ceased operations, the total assets and equity were valued at -$166,863,476.23.

This case was investigated by the Federal Bureau of Investigation and the U.S. Secret Service. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.

Ocala, Florida – Acting United States Attorney W. Stephen Muldrow announces a federal criminal complaint charging Simon Rodriguez-Flores (48), Tirso Rodriguez-Astudillo (35), and Gilberto Astudillo-Carbajal (34), all of Ocala, with conspiracy to possess with the intent to distribute 500 grams or more of methamphetamine. If convicted, each faces a 10-year mandatory minimum, up to life, in federal prison; up to a $10 million fine; and a minimum term of 5 years, up to life, of supervised release. In addition, each faces potential deportation from the United States because they are citizens of Mexico and currently in the United States illegally. All three individuals made their initial appearances in federal court on June 5, 2017, and were ordered detained pending the resolution of their cases.

According to the criminal complaint, in or around April 2017, Rodriguez-Flores, Rodriguez-Astudillo, and Astudillo-Carbajal agreed to sell illegal drugs. On May 24, 2017, in a restaurant parking lot in Ocala, Rodriguez-Flores sold approximately 140 grams of crystal methamphetamine to a confidential source working at the direction of the Drug Enforcement Administration. On June 2, 2017, Rodriguez-Flores and Rodriguez-Astudillo arrived at a prearranged meeting in Ocala to sell an additional two kilograms of crystal methamphetamine to the same confidential source, but they were arrested by law enforcement. The two kilograms were recovered as evidence. Simultaneously, a federal search warrant was executed at a residence in the northwest section of Ocala. At the residence,  the DEA  took Astudillo-Carbajal into custody. The complaint further alleges that Astudillo-Carbajal was involved in the manufacture of crystal methamphetamine at the residence.

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

This case was investigated by the Gainesville Resident Office of the United States Drug Enforcement Administration, as well as task force officers assigned to the DEA from the Gainesville Police Department, Alachua County Sheriff’s Office, Ocala Police Department, Levy County Sheriff’s Office, Union County Sheriff’s Office, and Columbia County Sheriff’s Office. The Marion County Unified Drug Enforcement Strike Team assisted in the execution of the search warrant as well as the arrests. This case is being prosecuted by Assistant United States Attorney Dale R. Campion.

HOUSTON – A 52-year-old resident of The Woodlands has been charged with defrauding her former employer of more than $1.5 million, announced Acting U.S. Attorney Abe Martinez.

A criminal information was filed May 24, 2017, charging Kavita Nehendra Duvvuru with one count of wire fraud. She is expected to make her initial appearance before U.S. Magistrate Judge Stephen Smith at 10:00 today.

According to the charges, Duvvuru worked for the president of Vinmar International Ltd., a petrochemical, marketing and distribution firm located in Houston. The criminal information alleges that from 2010 through January 2017, Duvvuru made unauthorized charges of personal expenses and unauthorized cash withdrawals on credit cards which were only to be used for Vinmar business expenses. Duvvuru allegedly altered the credit card statements and provided false information to conceal her fraud from Vinmar.

As a result of her scheme Duvvuru caused Vinmar a loss of more than $1.5 million, according to the charges.

If convicted, she faces up to 20 years in federal prison and a possible $250,000 maximum fine.

The criminal information also contains a notice of forfeiture.

The FBI conducted the investigation. Assistant U.S. Attorney John Braddock is prosecuting the case.

A criminal information is a formal accusation of criminal conduct, not evidence.

A defendant is presumed innocent unless convicted through due process of law.

SAVANNAH, GA – Anthony Tyrone Roper, 55, an active duty Colonel with the U. S. Army stationed at Fort Gordon; Audra Roper, 49, the wife of Colonel Roper; and Dwayne Oswald Fulton, 58, a former employee of a defense contracting firm, were indicted this week by a federal grand jury sitting in Savannah, Georgia for their alleged roles in a bribery and kickback scheme. Each of the Defendants reside in Augusta, Georgia. According to the allegations contained in the Indictment, beginning in 2008 and lasting almost a decade, Colonel Anthony Roper conspired with his wife, Fulton and others to solicit and accept cash bribes in exchange for rigging the award of over $20 million in U. S. Army contracts to selected individuals and companies. The indictment further alleges that in an attempt to hide their bribery and fraud schemes, the Defendants attempted to obstruct an official investigation into their criminal conduct.

Colonel Roper was charged with one count of conspiracy, three counts of bribery, four counts of false statements and one count of obstruction, with a maximum sentence of 85 years in prison and a $1.75 million fine. Audra Roper was charged with one count of conspiracy, one count of false statements and one count of obstruction, with a maximum sentence of 25 years in prison and a $750,000 fine. Fulton was charged with one count of conspiracy and one count of obstruction, with a maximum sentence of 20 years in prison and a $500,000 fine. An indictment is only an accusation and is not evidence of guilt. The Defendants are entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.

The case has been investigated by Special Agent Preston T. Johnson of the U. S. Army, Criminal Investigations Division; Special Agent Randall J. Temples of the U. S. Department of Defense, Criminal Investigative Service; and, Special Agent Bryan M. Cofer of the U.S. Small Business Administration, Office of Inspector General. The investigation of this case remains ongoing. Assistant U. S. Attorney C. Troy Clark and Acting U.S. Attorney James D. Durham are prosecuting the case on behalf of the United States. Any questions should be directed to the U.S. Attorney’s Office at (912) 201-2522.

St. Louis, MO – George Patino, 57, of Houston, Texas, was convicted by a jury on Wednesday after a three-day trial of conspiracy, distributing Human Growth Hormone (“HGH”) for unauthorized medical purposes, and smuggling.

According to Court documents, under federal law, doctors can lawfully prescribe HGH for several narrow medical uses, for example to patients with wasting diseases associated with AIDS or Prader-Willi syndrome. HGH cannot be prescribed to help patients with body-building, anti-aging, or weight loss treatments. From April 2014 through June 2015, the evidence showed at trial that Mr. Patino sent numerous packages of HGH to a local St. Louis, Missouri doctor and many local patients. The local patients receiving the HGH hoped to increase their energy, strength, endurance, and athletic ability. The HGH smuggled here to Missouri by Mr. Patino was misbranded in that the drugs’ dosage and use instructions were in Spanish not English, and the drugs came from a Korean drug manufacturer that has not been approved by the U.S. Government to sell this drug in the United States.

A local doctor, Dr. Michael “Ted” Mimlitz, previously pled guilty in this same investigation to providing misbranded HGH drugs to numerous local patients who were experiencing a lack of energy, decreases in strength or endurance, or decreased athletic ability.

Mr. Patino now faces a maximum penalty of five years in prison for his conspiracy conviction, ten years in prison for his HGH distribution conviction, and twenty years in prison for the smuggling conviction, and/or fines up to $250,000 for each count. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.

“For drugs that enter the U.S. from outside the FDA-regulated distribution system, there is no guarantee that the drugs are safe and effective for patients to use,” said Special Agent in Charge, Spencer Morrison, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to work to protect the health of patients who rely on prescription drugs and to ensure the safety and effectiveness of those drugs.”

This case was investigated by the Office of Criminal Investigation for the U.S. Food and Drug Administration, with assistance from the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Homeland Security Investigations.

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          GRAND RAPIDS, MICHIGAN– Matthew John Andaluz, 44, of Battle Creek, Michigan pleaded guilty before the Hon. Robert J. Jonker, Chief U.S. District Judge, to producing child pornography, Acting U.S. Attorney Andrew Birge announced today. Andaluz faces a minimum of 15 years and a maximum of 30 years of imprisonment, and he will be required to serve a term of supervised release after his prison term has been completed. Andaluz will also be required to register as a sexual offender.

          Andaluz admitted at the plea hearing that he had taken pornographic photographs of a ten-year-old child at his home in Calhoun County. The conduct occurred in late 2010 and early 2011. Andaluz came to the attention of law enforcement in November 2016, when agents and investigators traced images Andaluz had distributed over the Internet back to his home in Calhoun County. Agents executed a search warrant at Andaluz’s home on December 16, 2016, and arrested him. Andaluz remains in custody pending sentencing, which is scheduled for September 25, 2017.

          This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: http://www.projectsafechildhood.gov/. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.

          The Department of Homeland Security, Homeland Security Investigations (HSI) investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.

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