BIRMINGHAM – Federal prosecutors today charged the former town clerk of Wilton with embezzling from the Shelby County town, announced Acting U.S. Attorney Robert O. Posey and FBI Acting Special Agent in Charge David W. Archey.

In a one-count information filed in U.S. District Court, the U.S. Attorney’s Office charged APRIL PRICE ROMERO, 31, of Thorsby, with embezzling $8,752 from Wilton between Jan. 1, 2016, and May 17, 2016, while she was the town clerk.

“Whether they are elected or appointed, public officials are servants of the public's interest,” Archey said. “While the vast majority of public officials are honest, those who are not should know that there is no acceptable level of corruption, and my office is dedicated to rooting out corruption at every level. If you have information about public corruption, call our tip line at 844-404-TIPS, and tell us what you know."

In conjunction with the information, prosecutors also filed a plea agreement with Romero in which she acknowledges the charges and pledges to plead guilty to them.

As town clerk, Romero had access to and signature authority on all of the Town of Wilton’s bank accounts. According to her plea agreement, Romero stole from the town by making unauthorized disbursements from the town’s accounts and converting the money to her personal use.

As part of the plea agreement, Romero will pay $17,216 in restitution to the town and forfeit $8,752 to the government as proceeds of illegal activity.

The maximum penalty for embezzlement is 10 years in prison and a $250,000 fine.

The FBI investigated the case, which Assistant U.S. Attorney Pat Meadows is prosecuting.

###

SACRAMENTO, Calif. — Channin Renee Dickens, 30, of Sacramento, pleaded guilty today to possessing stolen mail, U.S. Attorney Phillip A. Talbert announced.

According to court documents, between September 15, 2016, and February 20, 2017, Dickens possessed mail that had been stolen from an authorized U.S. Mail receptacle. Dickens, along with Ashley Nicole Leyba, 27, of Sacramento, and others, carried out a scheme to defraud banks by using identity information and financial documents obtained from stolen U.S. Mail to apply for lines of credit and open accounts in the names of others. Dickens would use the cards to purchase merchandise and services.

On February 13, 2017, Leyba was arrested, and in April 7, 2017, pleaded guilty to bank fraud, aggravated identity theft, and possession of stolen mail. In Leyba’s plea agreement, she admits that while in custody, she instructed Dickens to destroy stolen identification and financial information that she had in her residence. However, some of the stolen mail was recovered in Dickens’ car before she could destroy it.

This case is the product of an investigation of the U.S. Postal Inspection Service, with assistance from the California Highway Patrol, the Sacramento County Sheriff’s Office, the Sacramento County Probation Office, and the Citrus Heights Police Department.

Dickens is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on September 15, 2017. Dickens faces up to five years in prison. Leyba is scheduled to be sentenced by Judge Burrell on July 28, 2017. Leyba faces up to 30 years in prison for bank fraud, a mandatory sentence of two years in prison for aggravated identity theft, and five years in prison for possession of stolen U.S. Mail.

LAS VEGAS, Nev.– A Las Vegas man was sentenced today to 78 months in prison for conspiracy to commit a nearly $5.3 million advance fee fraud scheme targeting small business owners seeking grant funding, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.

Gregory Villegas, 37, pleaded guilty on March 17, 2017, to one count of conspiracy to commit wire fraud. In addition to the term of prison, U.S. District Chief Judge Gloria M. Navarro ordered him to pay restitution in the amount of $5,908,726.38, and sentenced him to three years of supervised release.

According to his plea agreement, from March 1, 2008 to about May 2, 2012, Villegas and his co-conspirators Christine Gagnon, Mickey Gines, and others, defrauded at least 390 small business owners for an approximate total loss of $5,261,218. Villegas and his conspirators pretended to operate companies that would obtain grants for the small business owners from public and private sources. In truth, Villegas and his conspirators never intended to pursue any grant funding for the victims. The sole purpose of the scam was to enrich Villegas and conspirators. He and his conspirators made numerous false statements, including false promises of grant funding and false claims that grants had been obtained, but that the victims needed to pay additional fees for the grant agencies to release the funds. Villegas operated the scheme under multiple business names to avoid detection by consumer protection agencies and apprehension by law enforcement.

The case was investigated by the FBI and U.S. Secret Service and prosecuted by Assistant U.S. Attorney Dan Cowhig.

###

           A 24 -year-old Seattle man was sentenced today in U.S. District Court in Seattle to five years in prison and five years of supervised release for three felony counts related to illegal gun possession and drug distribution, announced U.S. Attorney Annette L. Hayes. DION VINCENT HOOKS survived an August 2015, gun battle inside a car at a downtown Seattle Shell gas station. In the shooting, another young man was shot in the head and killed. The shooting occurred during a drug deal involving HOOKS and three others. Hooks pleaded guilty last March to being a felon in possession of a firearm, possession of marijuana with intent to distribute, and possession of a firearm in furtherance of a drug trafficking crime. At sentencing U.S. District Judge Robert S. Lasnik said, “any number of people could have been shot and killed at that service station . . . with drunk felons with firearms.”

           “This case demonstrates yet again that guns and drugs don’t mix,” said U.S. Attorney Annette L. Hayes. “One person killed and bullets flying – with those who happened to be in the area very much at risk. My office is steadfastly committed to working with our state and local partners to prosecute federally those who risk the safety of our neighborhoods and communities without a second thought.”

           According to records filed in the case, two men drove into the Shell station on Denny Way in Seattle intending to do a drug deal. Different witnesses have said the deal was for marijuana, or for prescription cough syrup, or Xanax. What is known is that after HOOKS and another man got into the back seat of the car, gunfire erupted and 22-year-old Wafi Kilaouy was shot in the head and killed. Frankie Miranda and HOOKS were both shot but survived. The car’s driver managed to get out of the car uninjured and fled the scene. Miranda was sentenced last month to ten years in prison. The forensic evidence indicates HOOKS did not fire his weapon.

          The shooting on Lower Queen Anne Hill was the latest in a string of convictions for HOOKS. As a juvenile he was convicted of unlawful possession of a firearm following a “shots fired” incident at Laurelhurst Park in Seattle. In 2010, HOOKS was convicted of robbery and second degree assault with a deadly weapon for robbing two school classmates at gunpoint. In 2011, HOOKS was sentenced to four years in prison for promoting prostitution. He was released from custody about a year before the shooting in this case.

           In imposing the sentence, Judge Lasnik noted that after he was shot, but before he was arrested in this case, HOOKS had turned his life around and abandoned his criminal lifestyle.

           The investigation revealed that three days before the shooting at the Shell station, HOOKS and Kilaouy burglarized a marijuana store in North Seattle while armed with at least one firearm.

            The case was investigated by the Seattle Police Department and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF). The case is being prosecuted by Assistant United States Attorney Stephen Hobbs.

SACRAMENTO, Calif. — Alexander Antonio Rojas, 58, of Sacramento, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 20 years in prison for distribution of child pornography, U.S. Attorney Phillip A. Talbert announced.

U.S. Attorney Talbert stated: “Today’s sentence is necessary to protect the public from further crimes by this defendant. He used his relative wealth and privilege in this country to exploit impoverished people overseas. It is our goal to ensure that this defendant never harms another child.”

“This case sends a clear message to those who seek, consume, and distribute child pornography,” said Acting Special Agent in Charge Voviette Morgan of the FBI Sacramento field office. “This investigation reminds those who are considering committing similar crimes that the FBI continues to collaborate with our international and task force partners to ensure the exploitation of vulnerable children is investigated and prosecuted to the full extent of the law.”

According to court documents, between August 5, 2013, and April 5, 2014, Rojas offered to pay money to individuals living in the Philippines and other Southeast Asian countries to produce photographs and videos of minor children engaged in sexually explicit conduct. In some instances, Rojas sought images of children as young as nine years old.

This case was the product of an investigation by the Federal Bureau of Investigation with assistance from the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Matthew G. Morris prosecuted the case.

Rojas has been in custody since his arrest on June 13, 2014.

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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.

Acting U.S. Attorney Duane A. Evans announced that BRENDEL DEEMER, 48, of New Orleans, a Certified Public Account (CPA), was charged today with willfully filing a false tax return for herself. DEEMER was charged with filing a false 2010 individual income tax return that excluded income and inflated expenses for businesses under her control.

According to the Bill of Information, DEEMER operated Deemer CPA & Consulting Services LLC since at least 2009. From 1999 through 2005, she also operated Building Blocks Academy, a day care center. DEEMER ceased operating Building Blocks Academy after Hurricane Katrina and did not resume operating the business. As alleged in the Bill of Information, for tax years 2009 and 2010, DEEMER filed individual income tax returns that falsely reported her Schedule C business income from Deemer CPA and Consulting Services, LLC, and her expenses for Building Blocks Academy.

Upon conviction, DEEMER faces a maximum penalty of three years of imprisonment. She also faces a term of supervised release, as well as potential fines and other monetary penalties.

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

Acting U. S. Attorney Evans commended the work of IRS-Criminal Investigations in investigating this matter. Assistant U.S. Attorney Hayden Brockett is in charge of the prosecution.

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of a criminal Complaint charging WILLIAM McFARLAND with wire fraud, in connection with a scheme to defraud investors in a company controlled by McFARLAND, Fyre Media LLC (“Fyre Media”), as well as a related entity responsible for organizing a music festival set to take place in the Bahamas (the “Fyre Festival”). McFARLAND was arrested today in New York, New York, and is expected to be presented before U.S. Magistrate Judge Kevin N. Fox tomorrow.

Acting Manhattan U.S. Attorney Joon Kim said: “As alleged, William McFarland promised a 'life changing' music festival but in actuality delivered a disaster. McFarland allegedly presented fake documents to induce investors to put over a million dollars into his company and the fiasco called the Fyre Festival. Thanks to the investigative efforts of the FBI, McFarland will now have to answer for his crimes.”

Assistant Director-in-Charge William F. Sweeney Jr. said: “Under McFarland's direction, Fyre Media created a promoter's marketplace for entertainment bidding. In addition to this initial business venture, McFarland went one step further in establishing a subsidiary of the company, Fyre Festival LLC. But in order to drive the success of both entities, as alleged, McFarland truly put on a show, misrepresenting the financial status of his businesses in order to rake in lucrative investment deals. In the end, the very public failure of the Fyre Festival signaled that something just wasn't right, as we allege in detail today.”

According to the allegations in the Complaint[1] unsealed today in Manhattan federal court:

McFARLAND was the founder and Chief Executive Officer of Fyre Media. In 2016, McFARLAND started Fyre Media to build a digital app that would allow individuals organizing commercial events, such as concerts, to bid for artist and celebrity bookings at such events. According to Fyre Media documents provided to investors by McFARLAND, Fyre Media’s historical and projected revenue from at least April 2016 to November 2017 consisted solely of artist bookings. In late 2016, McFARLAND established a subsidiary of Fyre Media known as Fyre Festival LLC and began promoting the Fyre Festival. McFARLAND promoted the Fyre Festival in part by claiming that it would bring a global audience together to share a life changing experience. Ultimately, the Fyre Festival was widely deemed to have been a failure.

From in or about 2016 through in or about May 2017, McFARLAND perpetrated a scheme to defraud, inducing at least two individuals to invest approximately $1.2 million dollars in Fyre Media and an associated entity based on misrepresentations about Fyre Media’s revenue and income. In order to procure these investments, McFARLAND provided materially false information. For example, McFARLAND told investors that Fyre Media earned millions of dollars of revenue from thousands of artist bookings from at least July 2016 until April 2017. In reality, during that approximate time period, Fyre Media earned less than $60,000 in revenue from approximately 60 artist bookings.

In addition, McFARLAND provided at least one investor an altered stock ownership statement, in an effort to make it appear that McFARLAND could personally guarantee the investment. Specifically, McFARLAND provided an altered brokerage statement that purported to show that he owned shares of a specific stock worth over $2.5 million, when in reality he owned shares of that stock valued at less than $1,500.

* * *

McFARLAND, 25, of New York, New York, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison.

The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Kim praised the investigative work of the FBI’s New York Field Office, and thanked the Securities and Exchange Commission for their assistance.

The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant United States Attorneys Kristy J. Greenberg and Dina McLeod are in charge of the prosecution.

The charges contained in the Complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.

URBANA, Ill. – Late today, FBI agents arrested a Champaign, Ill., man, Brendt Christensen, 27, on a criminal complaint that charges Christensen with kidnapping visiting Chinese scholar Yingying Zhang on June 9, 2017. Christensen will remain in law enforcement custody pending his initial federal court appearance in Urbana scheduled on Monday, July 3, at 10:00 a.m.

The arrest and charges were announced by FBI Special Agent in Charge Sean Cox, Springfield Division, and Acting U.S. Attorney Patrick D. Hansen.

The affidavit filed in support of the complaint alleges that on June 9, Christensen was driving the black Saturn Astra which was observed on security camera video as it stopped next to Zhang at the corner of W. Clark St. and N. Goodwin Ave., at approximately 2:00 p.m. Zhang is observed on video entering the front passenger side of the vehicle. The vehicle then pulled away and proceeded northbound on N. Goodwin Ave.

Since Zhang was last seen in the video entering the car, the FBI, the University of Illinois Police Department and the Illinois State Police and local law enforcement have worked around the clock to locate Ms. Zhang and to investigate her disappearance. As part of this effort, the University of Illinois community of faculty, staff and students, and residents of the Champaign-Urbana community have provided information and support to law enforcement in the continuing search for Ms. Zhang.

According to the affidavit, on June 29, 2017, while Christensen was under law enforcement surveillance, agents overheard him explaining that he kidnapped Zhang. Based on this, and other facts uncovered during the investigation of this matter, law enforcement agents believe that Ms. Zhang is no longer alive.

Members of Ms. Zhang’s family, the Chinese consulate, and University of Illinois officials have been advised of Christensen’s arrest and the evidence in the possession of the FBI.

Members of the public are reminded that a complaint is merely an accusation; the defendant is presumed innocent unless proven guilty.

United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man has been convicted of Distribution of a Controlled Substance and Possession with Intent to Distribute a Controlled Substance and was sentenced on June 26, 2017, by U.S. District Judge Roberto A. Lange.

Lloyd One Star, age 27, was sentenced to 5 months in custody followed by 5 months home confinement, 3 years of supervised release, a fine of $1,000, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

One Star was indicted by a federal grand jury on November 9, 2016. He pled guilty on February 7, 2017.

The conviction stems from a traffic stop on March 7, 2016. A K9 alerted on the vehicle and the officers found several baggies containing methamphetamine, a Schedule II Controlled Substance. One Star admitted that he received distributable quantities of methamphetamine and that he engaged in distribution

This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.

One Star was immediately turned over to the custody of the U.S. Marshals Service.

United States Attorney Randolph J. Seiler announced that Marlin Iron Crow, age 44, of Porcupine, South Dakota, was found guilty of Second Degree Murder as a result of a federal trial in Rapid City, South Dakota. The jury returned the verdict on June 30, 2017.

The charge carries a maximum penalty of up to life in custody and/or a $250,000 fine, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.

The conviction stems from Iron Crow killing the male victim on November 11, 2016, at Porcupine by beating him with his hands and shod feet

This case was investigated by the Federal Bureau of Investigation and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Megan Poppen prosecuted the case.

A sentencing date will be set. Iron Crow was remanded to the custody of the U.S. Marshals Service pending sentencing.

United States Attorney Randolph J. Seiler announces that the Eighth Circuit Court of Appeals has affirmed the district court in appeal no. 16-3483, United States of America, appellee, v. Denny Johnson, Sr., appellant.

Johnson lived in Kenel, South Dakota, on the Standing Rock Indian Reservation. He sexually assaulted and restrained his victim over the course of several weeks in December 2013 and January 2014.

Following a trial, a jury found Johnson guilty of two counts of aggravated sexual abuse, one count of assault with a dangerous weapon, one count of simple assault, and one count of domestic assault by a habitual offender. He was sentenced to 30 years of imprisonment, followed by five years of supervised release.

On appeal, Johnson argued that the district court should have excluded various pieces of evidence and should have allowed evidence about the victim’s past actions. He also argued about the sentencing court’s inclusion of certain sentencing enhancement based on his victim’s vulnerability and his obstruction of justice. The Eighth Circuit affirmed the district court in all respects. In particular, the Court discussed at length the value and credibility of the expert testimony provided by the executive director of the South Dakota Network Against Family Violence and Sexual Assault.

U.S. Attorney Seiler reflected on the decision, “It’s another great example of the fine work being done by our office and our partners to bring justice to domestic abusers.”

Assistant U.S. Attorney Troy Morley prosecuted the case at trial and handled the appeal for the government. The case was investigated by the Federal Bureau of Investigation.

United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, man convicted of Assaulting a Federal Officer was sentenced on June 26, 2017, by U.S. District Judge Roberto A. Lange.

Laverne White Hose, age 28, was sentenced to 6 months in custody, followed by 6 months of home confinement, 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

White Horse was indicted by a federal grand jury on October 12, 2016. He pled guilty on April 11, 2017.

The conviction stemmed from an incident that occurred during a traffic stop near Mission, on August 13, 2016. White Horse, who was initially stopped for an equipment violation, was subsequently arrested for Driving Under the Influence. As he was being arrested, White Horse became uncooperative and belligerent with the arresting officer, a Rosebud Sioux Tribe Police Officer. After the officer placed White Horse in wrist restraints, White Horse spitvbdirectly in the officer’s face.

This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.

White Horse was immediately turned over to the custody of the U.S. Marshals Service.

Acting United States Attorney Steve Butler of the Southern District of Alabama announces that United States District Court Chief Judge Kristi K. DuBose sentenced Jamie Nichelle McKay on June 30, 2017 to serve a term of imprisonment of 60 months followed by 4 years of supervised release for conspiracy to distribute methamphetamine in violation of 21 USC § 846.  During the federal investigation, it was revealed that the defendant distributed 28 grams of methamphetamine (Actual) with her co-defendant, Jay Kimberly Ponder.  The defendant, who had an extensive criminal history, entered a guilty plea before the Court on March 17, 2017.

This case was investigated by the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), the Mobile County Sheriff’s Office, the Mobile Police Department, and the United States Marshals Service.  Assistant United States Attorney Lawrence J. Bullard prosecuted the case for the United States Attorney’s Office for the Southern District of Alabama.

WASHINGTON –  A grand jury sitting in the Middle District of North Carolina returned an indictment charging a Greensboro, North Carolina resident with corruptly endeavoring to obstruct and impede the Internal Revenue Service (IRS), preparing and filing fraudulent tax returns, bankruptcy fraud and making false bankruptcy declarations, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Sandra J. Hairston for the Middle District of North Carolina.

The indictment alleges that, between July 2008 and July 2009, Hassie Demond Nowlin aka Demond Nowlin and Brilliant Knowlin, filed personal tax returns with the IRS reporting fake income and income taxes withheld and seeking more than $700,000 in fraudulent refunds.  According to the indictment, between 2008 and 2010, the IRS assessed taxes, penalties and interest against Nowlin related to his 2005 through 2008 income tax returns. After being notified of the assessments, Nowlin allegedly began concealing his assets and placing them in the names of nominee entities.  The indictment also alleges that Nowlin made false statements to IRS agents, including that he did not prepare tax returns for clients. 

The indictment further charges that between January 2011 and January 2017, Nowlin operated a tax preparation business, and filed tax returns for clients that claimed phony business and education expenses and sought refunds to which the clients were not entitled.  According to the indictment, Nowlin did not identify himself as the paid preparer on these fraudulent returns.  The indictment alleges that Nowlin caused more than $250,000 in clients’ tax refunds to be deposited into nominee bank accounts that he controlled. 

In addition to the tax-related charges, the indictment alleges that Nowlin attempted to cheat his creditors by filing six fraudulent personal bankruptcy petitions between April 2013 and January 2017.  Along with five of those petitions, Nowlin also allegedly submitted false financial statements on which he did not fully disclose his income and assets. 

An indictment merely alleges that crimes have been committed and the defendant is presumed innocent until proved guilty beyond a reasonable doubt.

If convicted, Nowlin faces a statutory maximum sentence of three years in prison for obstructing the IRS and each count of preparing false tax returns and five years in prison for each count of bankruptcy fraud and making false bankruptcy declarations.  He also faces a period of supervised release, restitution and monetary penalties.

Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Hairston commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorney Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Anand Ramaswamy of the Middle District of North Carolina, who are prosecuting this case.

Additional information about the Tax Division and its enforcement efforts may be found on the division’s website. 
 
# # #

Acting United States Attorney Steve Butler of the Southern District of Alabama and Alabama Attorney General Steve Marshall announced today that Dr. Rassan M. Tarabein, 58, a neurologist residing in Fairhope, Alabama, was arrested by law enforcement officials on federal and state criminal charges relating to health care fraud.  On June 16, 2017, a state grand jury in Montgomery County, Alabama returned a 2¬–count indictment against Dr. Tarabein, charging him with Medicaid fraud and theft of property in the first degree.  On June 28, 2017, a federal grand jury for the Southern District of Alabama returned a 22–count superseding indictment against Dr. Tarabein, charging him with health care fraud, making false statements relating to health care matters, lying to a federal agent, unlawfully distributing schedule II controlled substances, and money laundering.  Later today, Dr. Tarabein is scheduled for an initial appearance on the federal charges before United States Magistrate Judge P. Bradley Murray in Mobile, Alabama.  Dr. Tarabein operated the Eastern Shore Neurology and Pain Center, a private clinic in Daphne, Alabama where he provided services relating to neurology and pain management, such as spinal injections. 

Acting United States Attorney Steve Butler stated, “As alleged, this neurologist operated a fraudulent medical practice that for years stole millions of dollars from health care programs and endangered the safety of his patients.  Federal and state investigators have worked diligently to expose the fraud.  Now this physician must face the consequences of his actions.”

Attorney General Marshall stated, “I am pleased to partner with our federal law    enforcement colleagues to protect precious state Medicaid resources.  I hope that this case will serve as a warning to others who might be tempted to steal taxpayer money allocated to protect our most vulnerable citizens.”

Federal Bureau of Investigation (FBI) Special Agent in Charge Robert E. Lasky stated, “Health care fraud cases continue to be a priority for the FBI.  We will continue to work closely with our law enforcement partners to bring these types of investigations to a swift and justifiable end.”

“It is disappointing when trusted professionals like Dr. Rassan Tarabein are engaged in corrupt practices, to include the diversion of controlled substances,” said Stephen G. Azzam, Special Agent in Charge of DEA’s New Orleans Field Division.  “Doctors have an obligation to ensure that prescription medications are getting into the hands of legitimate patients.  Thanks to the cooperative success of this investigation with our federal law enforcement partners and state investigators, this crooked doctor will be brought to justice.” 

“Dr. Tarabein's alleged activities blatantly abused federal health care programs and treated patients as his personal money machines," said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).  “This arrest should warn providers, who line their pockets at the expense of taxpayers, that they will face severe consequences.”

The facts in an indictment constitute allegations only.  The defendant is presumed innocent until proven guilty beyond a reasonable doubt.      

The FBI, DEA, HHS-OIG, and Alabama Medicaid Fraud Division are investigating the federal case.  Assistant United States Attorneys Sinan Kalayoglu and Gregory A. Bordenkircher are prosecuting the federal case in coordination with the Office of the Alabama Attorney General, Medicaid Fraud Control Unit.  Assistant Attorney Generals Bruce M. Lieberman and Jon R. Moody are prosecuting the state case.

Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Zachery Joseph Cooley, 38, of Mobile, was convicted in federal court on Thursday for conspiracy to possess with intent to distribute methamphetamine, four counts of distribution and possession with intent to distribute methamphetamine, and three counts of illegal weapon possession.  The jury for the trial was selected on Monday, June 26, and the trial commenced on June 27 before Senior District Court Judge Callie V. S. Granade.

The prosecution called 20 witnesses in the two-day trial.  The evidence showed that Cooley came to the attention of law enforcement officers when a search warrant was executed at a residence on Willow Creek Drive in Mobile in February of 2016.  The Mobile Police Narcotics Unit encountered Cooley in the first bedroom, on his knees packaging five ounces of methamphetamine ice into smaller amounts for distribution.  Cooley gave a statement after being advised of his rights that he did not own the methamphetamine ice, but he was a drug dealer and he sold methamphetamine ice to make money to support his daughter.  Others in the house gave statements after being advised of their rights that Cooley had traveled to Mississippi the night before the police searched the house, and he brought the methamphetamine ice into the residence. 

Cooley was arrested again on September 8, 2016, when he brought methamphetamine ice into a hotel room in Tillman’s Corner where a confidential informant was waiting to get the drugs from a supplier.  The informant was equipped with electronic devices to record the activities inside the room, and the video depicted Cooley arriving in the room with the drugs.  Mobile County sheriff’s deputies followed Cooley away from the hotel and stopped him as he pulled into a gas station.  Cooley was armed with a revolver and the marked money used by the informant to buy the drugs was recovered from his person.

Finally, Cooley was again encountered by law enforcement officers, this time the Mobile County Street Enforcement Narcotics Team (MCSENT).  On September 27, 2016, another confidential informant was purchasing methamphetamine from a dealer, who called Cooley to bring the drugs.  The officers confronted the dealer after Cooley left, and the dealer agreed to make another controlled purchase of methamphetamine from Cooley the next day.  On that date, September 28, 2016, Cooley brought the methamphetamine to the dealer turned informant, and the MCSENT officers followed Cooley to arrest him for the distribution of the drugs.  When a marked police car activated its blue lights, Cooley threw two items from his vehicle before he stopped.  MCSENT officers subsequently recovered a brown bag containing methamphetamine, a pipe and a tube used to ingest methamphetamine, baggies and two scales.  They also recovered a gun.  Cooley gave a tape-recorded statement after he was advised of his rights in which he identified several others involved in the methamphetamine distribution business with him, including his suppliers and several local distributors who received meth ice from him.  Four of the people who received meth ice from Cooley testified against him during the trial, each having entered into a plea agreement that provided for cooperation in ongoing drug investigations. 

Thursday, the jury returned guilty verdicts on 8 of 9 counts.  Cooley was acquitted,   on one of the two counts of using and carrying a firearm in relation to a drug trafficking felony.    Judge Granade set sentencing for October 4, 2017 at 9:30 a.m.  Cooley faces a minimum mandatory 10 years to life sentence on the conspiracy charge, and a minimum mandatory consecutive sentence of 5 years on the using and carrying a firearm in relation to a drug trafficking felony count. 

The case was investigated by the Mobile Police Department, MCSENT, the Mobile County Sheriff’s Office and the Department of Homeland Security Investigations.  It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.

Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Byron Chase Williams Champion, 24, of Pine Hill, was sentenced today in federal court on charges involving his theft of weapons and being a prohibited person in possession of firearms.  Court documents show that Champion stole firearms from members of his family.  These firearms were recovered from various pawnshops, one of which was in Pensacola, Florida.  Champion also stole guns from others, some of which were recovered from a pawn shop in Meridian, Mississippi.  The investigation also established that Champion was a marijuana user, and as such, he is prohibited from possessing a firearm under federal law.  Champion pled guilty to the charges in March of 2017.

United States District Court Judge Kristi K. Dubose sentenced to be imprisoned for 18 months, followed by a three-year term of supervised release.  Champion will undergo treatment for drug abuse while in prison and as a condition of his supervised release.  No fine was imposed, however, the judge ordered that Champion pay $200 in special mandatory assessments. 

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.  It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.

Acting United States Attorney Steve Butler of the Southern District of Alabama announced that Lance James Heine, 34, of Citronelle, was sentenced today in federal court on charges involving his being a prohibited person in possession of a. firearm.  Court documents show that Heine was involved in a shoot-out in the Pleasant Circle subdivision in Citronelle in May of 2014.   Citronelle police responded and found Heine hiding in some bushes near the McDavid Jones Elementary School.  He was holding a pistol when he was apprehended.  Heine pled guilty to the charges in February of 2017.

United States District Court Judge Kristi K. Dubose sentenced Heine to 24 months in prison, to be followed by a three-year term of supervised release.  Heine will undergo treatment for drug abuse while in prison and as a condition of his supervised release.  No fine was imposed, however,  the judge ordered that Heine pay $100 in special mandatory assessments. 

The case was investigated by the Citronelle Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.  It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.

PROVIDENCE – Kedwin Vargas, 26, of Roxbury, MA, was sentenced today in U.S. District Court in Providence, RI, to 60 months in federal prison for trafficking a female from Massachusetts to Rhode Island for the purpose of prostitution.

At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Vargas to serve 3 years supervised release upon completion of his prison term. Vargas pleaded guilty on December 8, 2016, to transportation with the intent to prostitute.

The government and the defendant recommended to the court that a sentence of 60 months of incarceration be imposed. The U.S. Sentencing Guideline range in this matter is 51 to 63 months of incarceration.

Vargas’ sentence is announced by Acting United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Harold H. Shaw, Special Agent in Charge of the FBI Boston Division.

At time of his guilty plea, Vargas admitted to the court that between January 2015 and March 2016, he met a female he knew to be engaged in prostitution, and did aid and abet her in carrying out that endeavor by, among other things, driving her from Massachusetts to appointments with customers in Rhode Island; holding cash she collected from her prostitution activities; and by profiting directly and indirectly from her activity.

Vargas has been detained in federal custody since his arrest on May 19, 2016.

A co-defendant in this matter, Rene Anthony Laureano, 31, of Roxbury, MA, was sentenced on June 21, 2017, to 24 months in federal prison. Laureano pleaded guilty on March 7, 2017, to transportation with the intent to prostitute.

The was prosecuted by Assistant U.S. Attorney William J. Ferland.

Acting United States Attorney Stephen G. Dambruch thanks the Warwick, R.I., and Boston Police Departments for their assistance in the investigation of this matter.

###

A Lima woman was sentenced to more than 17 years in prison for her role in a sex trafficking conspiracy, said Acting U.S. Attorney David A. Sierleja, FBI Special Agent in Charge Stephen D. Anthony and Lima Police Chief Kevin Martin.

Megan Hitt, 29, was sentenced to 210 months in federal prison. Jacqueline Young, 54, was sentenced to four years in prison for obstructing the investigation.

Last month, three people from Lima were sentenced to prison for their roles in the case. Randy Thompson, 26, was sentenced to 24 years in federal prison. Shemeric Cook, 30, was sentenced to 12 years in prison. Precious Russell, 20, was sentenced to nine years in prison.

Hitt, Thompson and others conspired to cause girls, aged 14 and 16, to engage in commercial sex acts in Lima and Fort Wayne, Indiana. They did this by taking and posting sexually explicit photos of the girls on backpage.com, transporting the girls, renting motel rooms for them and negotiating prices, according to court documents.

This took place between November 2015 and January 2016, according to court documents.

This case was prosecuted by Assistant U.S. Attorneys Alissa M. Sterling and Daniel Hurley following an investigation by the Lima Police Department, the FBI and the Northwest Ohio Crimes Against Children Task Force.