SAN FRANCISCO – A Los Angeles woman was sentenced to 65 months in prison for her role in a conspiracy to cash stolen and fraudulently obtained U.S. Treasury checks, announced U.S. Attorney Brian J. Stretch and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.  The sentence was handed down by Jeffrey S. White, U.S. District Judge, following McDonald’s conviction after a jury trial.

Janel McDonald, 38, was convicted in March of conspiring to commit theft of public money, theft of public money, and aggravated identity theft.  McDonald was charged, along with 10 co-defendants, in November 2015.  According to the indictment and evidence presented at trial, from August 2013 through April 2015, McDonald’s co-conspirators stole deceased individuals’ personal identifying information from California death records and used it to file federal tax returns seeking refunds.  They also obtained social security and refund checks that were stolen from the U.S. mail system.  McDonald provided fake California IDs to her co-conspirators who used them to cash the stolen and fraudulently obtained U.S. Treasury checks.  McDonald caused a tax loss of approximately $471,000.

In addition to the term of prison imposed, Judge White ordered McDonald to serve three years of supervised release and to pay $471,961 in restitution to the Internal Revenue Service (IRS).  

U.S. Attorney Stretch and Acting Deputy Assistant Attorney General Goldberg thanked the attorneys prosecuting the case, Assistant U.S. Attorneys Thomas Newman and Jose Olivera, and Trial Attorney Gregory Bernstein of the Tax Division, as well as the special agents of the IRS Criminal Investigation who conducted the investigation.
 

         LOS ANGELES– A Yorba Linda man who owns a Gardena company that contracted with the U.S. Army to overhaul linear actuators used on Apache helicopters pleaded guilty to violating his contract with the military by making unauthorized repairs to motors inside the part.

         Bahram Bordbar, 62, the owner of Prototype Engineering and Manufacturing, Inc., pleaded guilty today to a federal charge of making false statements involving aircraft. Bordbar admitted that his fraudulent conduct led to him improperly receiving approximately $320,000 from the Army.

         Prototype had a contract to overhaul and repair linear actuators that were used on the Army’s AH-64-A Apache helicopter. Prototype was not authorized to repair DC motors used in the linear actuators unless the company received specific authorization from the Army.

         According to a plea agreement filed in United States District Court, Prototype used an outside contractor to repair 105 DC motors when those repairs had not been approved by the military. Those repaired motors were installed into overhauled linear actuators which were delivered to the Army.

         Bordbar also pleaded guilty to one count of aiding and abetting in the filing of a false tax return related to an employee’s tax return. Bordbar paid the employee $100,000, but told the employee the money was a gift and that he would pay the taxes, which prompted the employee to not report the money as income on a federal tax return. Bordbar has agreed to pay the Internal Revenue Service more than $28,000 to pay the employee’s back taxes.

         Bordbar pleaded guilty before United States District Judge John F. Walter, who is scheduled to sentence the defendant on October 16. At sentencing, Bordbar will face a statutory maximum sentence of 13 years in federal prison.

         This case was investigated by the Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; the U.S. Army Criminal Investigation Command; the Federal Bureau of Investigation; and IRS Criminal Investigation.

         SANTA ANA, California – The chief executive officer of an Orange County check-cashing business was arrested this morning on federal charges that accuse him of procuring and illegally exporting rifle scopes, laser boresighters and other tactical equipment from the United States to Syria in violation of the International Emergency Economic Powers Act (IEEPA).

         Rasheed Al Jijakli, 56, of Walnut, is expected to be arraigned this afternoon in the United States District Court on a three-count indictment that was returned by a federal grand jury on July 14. The indictment was unsealed this morning after Jijakli was taken into custody without incident by law enforcement authorities.

         The indictment accuses Jijakli of violating IEEPA, which authorizes the president to impose economic sanctions on a foreign country in response to an unusual or extraordinary threat to the national security, foreign policy or economy of the United States. In accordance with that authority, the president issued an executive order that included broad restrictions on exports to Syria. The Department of Commerce subsequently issued corresponding regulations restricting exports to Syria of items subject to the Export Administration Regulations.

         Jijakli also faces charges of conspiring to violate IEEPA and smuggling.

         From January 2012 through March 2013, Jijakli and three other individuals purchased and smuggled export-controlled items to Syria without obtaining licenses from the Department of Commerce. Jijakli and others allegedly hand-carried the items through Istanbul, Turkey and provided them to fighters in Syria. Those items allegedly included day- and night-vision rifle scopes, laser boresighters (tools used to adjust sights on firearms for accuracy when firing), flashlights, radios, a bulletproof vest and other tactical equipment.

         An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.

         If he is convicted of all three charges in the indictment, Jijakli would face a statutory maximum penalty of 50 years in prison.

         This case is the result of an ongoing investigation being conducted by the FBI, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of Commerce’s Office of Export Enforcement, and IRS Criminal Investigation.

         The case against Jijakli is being prosecuted by Assistant U.S. Attorney Mark Takla of the Terrorism and Export Crimes Section and Trial Attorney Christian Ford of the Counterintelligence and Export Control Section of the Justice Department’s National Security Division.

         LOS ANGELES– A Murietta man has been sentenced to 17 years in federal prison after pleading guilty to enticing a girl who lived in the Seattle area to engage in sexually explicit activity that resulted in the production of child pornography.

         Curtis Audun Larssen, 33, was sentenced yesterday by United States District Judge S. James Otero to 210 months in prison.

         Larssen pleaded guilty in June 2017 to one count of using the internet to induce a minor to engage in criminal sexual activity.

         According to court documents, Larssen directed a girl, who is described as being no older than 13, to have sexual contact with adult men. Larssen encouraged the victim to allow him to watch the sexual conduct, and to take photos and videos to send to Larssen. In one case, the girl sent Larssen a photo showing her engaged in sexual activity with a 35-year-old man.

         In a plea agreement, Larssen admitted that he used a peer-to-peer network to trade child pornography. During a search of his residence in 2014, authorities found in his possession approximately 470 videos depicting child pornography.

         Once he completes his prison sentence, Larssen will be on supervised release for the rest of his life.

         Larssen was one of 11 defendants arrested in April 2016 as part of Operation Wide Net, an investigation conducted by the Los Angeles Internet Crimes Against Children (ICAC) Task Force. ICAC includes special agents with the Federal Bureau of Investigation, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the United States Postal Inspection Service. These federal law enforcement agencies work with local law enforcement partners, including the Los Angeles Police Department and the Los Angeles Sheriff's Department.

         The case against Larssen was prosecuted by Assistant United States Attorney Jennifer Chou of the Violent and Organized Crime Section.

Oklahoma City, Oklahoma– JACOB SHANE McCAIN, 28, of Elk City, Oklahoma, was sentenced on July 27, 2017, to 60 months in prison for transporting stolen property across state lines and being a felon in possession of a firearm, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.

On September 6, 2016, McCain pled guilty to two separate crimes: transporting stolen goods across state lines and possessing a firearm as a convicted felon. According to court filings, McCain rented a 2012 skid steer valued at $73,000 from Warren Caterpillar in Oklahoma City in February 2015. A few days later, he sold the skid steer to an individual in Kansas for $10,000. Warren Caterpillar promptly reported the theft to the Oklahoma City Police Department, and the skid steer was recovered and returned. Further investigation determined that McCain had pawned two firearms in the summer of 2015. Because he had two felony convictions out of Beckham County, Oklahoma, he committed a federal felony when he possessed these weapons.

On July 27, 2017, U.S. District Judge Timothy D. DeGiusti sentenced McCain to 60 months in the custody of the Federal Bureau of Prisons. After his prison term, McCain will serve three years on supervised release. McCain was also ordered to pay $258,616 in restitution, based in part on similar crimes he committed.

This case is the result of an investigation by the Oklahoma State Bureau of Investigation and the Federal Bureau of Investigation’s Major Theft Task Force, which consists of partners from Oklahoma City FBI, OSBI, the Garvin County Sheriff’s Office, and the Oklahoma Department of Agriculture, Food & Forestry. The Tulsa Police Department also provided investigative assistance. Assistant U.S. Attorney Edward J. Kumiega prosecuted the case.

LAREDO, Texas – Four more defendants who were convicted in a marijuana trafficking and money laundering conspiracy have been ordered to federal prison, announced Acting U.S. Attorney Abe Martinez. Ricardo Ramirez, 31, and Leslie Bernice Trejo, 24, both of Laredo; and Salvador Saldana Medrano, 38, and Laura Heredia Garcia, 52, both of Nuevo Laredo, Mexico, had all previously pleaded guilty for their roles in the respective conspiracies.

At a hearing that concluded late today, U.S. District Judge Marina Garcia Marmolejo sentenced Medrano to a total of 57 months in prison for his convictions of conspiracy to possess with intent to distribute marijuana and conspiracy to commit money laundering. Garcia and Trejo were convicted in the money laundering conspiracy and will serve respective sentences of 40 and 12 months, while Ramirez received a 37-month-term for his conviction in the drug conspiracy. The court further issued a final order of forfeiture as to Medrano in the amount of $262,000 and $260,000 as to Garcia.

Erasmo Trejo-Nava was the head of a drug trafficking organization that received marijuana loads from Mexico and arranged to transport the marijuana to the Dallas area for himself and others to include Jaime Montalvo Ruiz and Ovidio Rodriguez. The organization used various stash houses and business fronts in the Laredo area to receive and prepare the marijuana for transportation via personal vehicles to a local warehouse where it was unloaded and reloaded onto tractor trailers for transportation to the Dallas area. Following delivery of marijuana loads in the Dallas area, the Trejo-Nava Organization collected drug proceeds and arranged to have the drug proceeds transported by couriers via personal vehicle or tractor trailers to Laredo and then Nuevo Laredo. Over the course of the conspiracy which spanned from June 10, 2011, through June 4, 2013, authorities made multiple seizures of marihuana that totaled in excess of 21,000 pounds.

Ramirez was identified as being involved in the distribution of one of the marijuana loads transported by the Trejo-Nava Organization between May 15-17, 2012, which amount totaled 568 kilograms.

Medrano was involved in coordinating the delivery of marijuana loads for Ruiz to the organization for transportation to the Dallas area and then coordinating the receipt of drug proceeds from the Trejo-Nava Organization on behalf of Ruiz.

Heredia was a money courier for the organization who was primarily tasked with transporting bulk cash drug proceeds from Laredo to Nuevo Laredo. She would hide the proceeds in her personal vehicle and transport the cash through the international bridge in Laredo.

Trejo was Trejo-Nava’s daughter who had knowledge of her father’s illicit activity and whose role was to assist another identified money courier in the transportation and concealment of drug proceeds totaling $73,240.

To date, a total of 20 defendants have been convicted for their respective roles in the overall conspiracy. Nine have now been sentenced.

The last 11 defendants are scheduled to be sentenced Sept. 20, 2017, to include Trejo-Nava, 44, Rodriguez, 42, both of Laredo, and Montalvo-Ruiz, 45, of Nuevo Laredo.

The charges were the result of a long term Organized Crime Drug Enforcement Task Force Investigation dubbed Operation Trena Sin Trono spearheaded by the Drug Enforcement Administration, High Intensity Drug Trafficking Area Task Force and IRS - Criminal Investigation with the assistance of Immigration and Customs Enforcement’s Homeland Security Investigations, Laredo Police Department and the Zavala County Sheriff’s Office. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.

LAREDO, Texas – A 50-year-old former Border Patrol (BP) agent has been ordered to federal prison for attempting to entice a minor to engage in sexual activity, announced Acting U.S. Attorney Abe Martinez. Salvador Contreras pleaded guilty March 7, 2017.

Today, U.S. District Judge Marina Garcia Marmolejo ordered Contreras to federal prison for 132 months. He will also serve 15 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. He will further be ordered to register as a sex offender.

In handing down the sentence, Judge Marmolejo referenced the defendant's claim that this was all part of a fantasy, noting he travelled a very long way to make the fantasy a reality. She further commented that she did not sense any real empathy from Contreras for what he was going to do and mentioned that some of his comments at the hearing were troubling. Contreras called himself a sex addict and that he was just "looking for his next high."

Contreras was arrested Dec. 2, 2016, in Cotulla. Prior to that, he had been in contact with an undercover agent whom he believed had an eight and 14-year-old daughters. During their conversations, Contreras transmitted numerous images of child pornography. He then travelled from Del Rio to Cotulla believing he would be engaging in sexual activity with both minor females. He was arrested upon his arrival and resigned shortly thereafter.

Customs and Border Protection - Office of Inspector General and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation with the assistance of the United States Attorney’s Office for the Western District of Texas. Assistant U.S. Attorney Alfredo De La Rosa prosecuted the case.

LAREDO, Texas – A Nuevo Laredo man and a Laredo woman have been ordered to federal prison for their roles in a conspiracy to traffic drugs via the World Trade Bridge, announced Acting U.S. Attorney Abe Martinez.

Daniel Rodirugez Reyna, 45, pleaded guilty to conspiracy to posses with the intent to distribute heroin and methamphetamine April 4, 2017. On that same date, Vanessa Bernal, 34, pleaded guilty for her participation as a co-conspirator in the methamphetamine conspiracy.

Today, U.S. District Judge Marina Garcia Marmolejo handed Reyna a 135-month sentence, while Bernal was ordered to serve 90 months. At the hearing, the Judge considered that while Bernal had no prior criminal history, she had admitted to receiving drugs and transporting drugs to the Nashville, Tennessee, area on two other occasions which warranted the sentence imposed. Judge Marmolejo noted Reyna also had no prior criminal history, but had admitted to transporting drugs for a two-year-period via the World Trade Bridge as a commercial truck driver. Reyna and Bernal will also be required to serve four years of supervised release following completion of the prison term. Not a U.S. citizen, Reyna is expected to face deportation proceedings following his release from prison.

The investigation began in 2014 when authorities learned of a possible drug transaction with a commercial truck driver expected to be crossing drugs via the World Trade Bridge in Laredo. Upon conducting surveillance, they observed Reyna meet with a confidential source at a warehouse in Laredo as he placed a white plastic bag inside the source’s front passenger window. After he departed the area, authorities were able to obtain the bag, which contained three bundles wrapped in clear cellophane wrap and black electrical tape. Laboratory analysis confirmed the three bundles all contained heroin with a net weight of 2.85 kilograms.

On March 25, 2015, agents conducted surveillance of the same white semi-truck Reyna was driving after it crossed in to the United States from Mexico via the World Trade Bridge. Law enforcement followed Reyna as he drove the a warehouse on El Gato Road in Laredo. Shortly thereafter, a red Dodge Journey arrived. Bernal was later identified as the driver. Reyna then exited his vehicle, carrying a plastic shopping bag and placed it in the back seat of Bernal’s vehicle.

After they departed, authorities conducted a traffic stop and found the plastic bag. Inside, they discovered four bundles wrapped in brown tape which all contained crystal methamphetamine with a net weight of 3.9 kilograms.

Previously released on bond, Bernal was taken into custody following the sentencing today where she will remain pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future. Reyna has been and will remain in custody.

The Drug Enforcement Administration conducted the investigation with the assistance of task force members of the Webb County District Attorney’s Office and the Laredo Police Department. Assistant U.S. Attorney Mary Lou Castillo is prosecuting the case.

A Parma man was sentenced to 17 1/2 years in prison for sexually exploiting a 14-year-old girl, said Acting U.S. Attorney David A. Sierleja and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.

A jury last year convicted Richard Purnell, 56, of sex trafficking of children.

“This is a child rapist who deserves every day of this prison sentence,” Sierleja said. “This case is further proof that human trafficking happens all around us. We will go after customers as well as people who profit from human trafficking.”

“Purnell chose to repeatedly victimize a 14-year-old girl for his own sexual gratification without any regard for what is legally or morally acceptable," said Special Agent in Charge Stephen D. Anthony of the FBI Cleveland Division. "His actions are reprehensible and unacceptable. The FBI will continue to work with our law enforcement partners to aggressively pursue and bring to justice those who engage in human trafficking.”

Purnell repeatedly engaged in commercial sex acts with the 14-year-old, whose images were posted on the website backpage.com by Ronnie Pratt. He continued to engage in commercial sex acts with the girl even after she told him she was only 14 years old, according to trial testimony.

Pratt is serving 14 years in federal prison after pleading guilty to sex trafficking charges.

The Purnell case is the first time a customer has been prosecuted federal in a human trafficking case in the Northern District of Ohio.

This case was prosecuted by Assistant U.S. Attorneys Bridget M. Brennan and Linda Barr following an investigation by the FBI’s Child Exploitation Task Force. The Child Exploitation Task Force is comprised of the FBI, Adult Parole Authority, Cleveland Metro Housing Authority, Cleveland Police Department and Cuyahoga County Sheriff’s Office. The Parma Police Department provided substantial assistance to the investigation.

A Highland Heights man pleaded guilty to selling furanyl fentanyl that resulted in the fatal overdose of a Cleveland teen, said Acting U.S. Attorney David A. Sierleja and Cleveland Police Chief Calvin Williams.

Alec J. Steinberger, 22, is scheduled to be sentenced Oct 31. Under the terms of his plea agreement, he faces a likely sentence of 12 years in prison.

Steinberger pleaded guilty to distribution of a controlled substance the resulted in death, possession of a controlled substance with intent to distribute, attempted possession of a controlled substance with intent to distribute and use of a communication facility in furtherance of a drug offense.

“We continue to go after drug dealers who sell opioids that kill our children, friends and neighbors,” Sierleja said. “Aggressive prosecution, combined with increased treatment, prevention and changes in prescribing practices are key to turning the tide on the heroin and opioid epidemic.”

“Investigators of the Heroin Death Investigation Team are trained to investigate heroin overdose cases and link the victims back to the dealers,” said Cleveland Division of Police Chief Calvin D. Williams. “It is through the combined efforts of law enforcement, at the local, state and federal levels, and prosecutors of the U.S. Attorney’s Office that these indictments are secured and convictions are won. It is the hope that these examples will deter others from continuing this deadly cycle.”

Beginning on Jan. 30, 2016, Steinberger received Alprazolam (also known as Xanax) and furanyl fentanyl for distribution. Furanyl fentanyl is a potent synthetic opioid. These drugs came to Steinberger through the mail, according to the indictment.

On Feb. 23, 2016, Steinberger texted an associated: “I just got a pack bro.” He then informed several people that he had drugs for sale, including a man identified in the indictment only as L.H.

Steinberger texted L.H. repeatedly the next day. Messages included: “bro I did it last night any my pupils got so small they disappeared and then I was nodding for 18 hrs,” “Bro this is uncut from the road” and “this is uncut from china,” according to the indictment.

Steinberger then repeatedly texted L.H. if he knew anyone that could cut or dilute the drugs and repackage it for sale. Steinberger texted: “We gonna chill tmr” “and go to the hood and give samples” and “try and find out how to cut and re rock,” according to the indictment.

Shortly after midnight on Feb. 25, Steinberger texted L.H.: “Find me customers and tell them you’re the plug and I’ll get it to you and then sell it and cut u in a tiny bit and throw u a free (Klonopin) and dope,” according to the indictment.

On Feb. 25, L.H. fatally overdosed on furanyl fentanyl he bought from Steinberger, according to the indictment.

This case is being prosecuted by Assistant U.S. Attorney Matthew J. Cronin following an investigation by the U.S. Postal Inspection Service and Cleveland Division of Police.

Abingdon, VIRGINIA – In late 2016, law enforcement agencies, led by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Drug Enforcement Administration, and assisted by agencies from across southwest Virginia, charged 32 individuals with conspiring to distribute methamphetamine and oxycodone.

The investigation, deemed Operation Leaving Las Vegas, accused 32 individuals of trafficking methamphetamine and oxycodone from Law Vegas into Southwest Virginia, Eastern Kentucky and elsewhere.

To date, 25 of the 32 charged have been convicted of federal drug conspiracy and money laundering charges. Nineteen of the defendants have been sentenced. The cases for the remaining defendants are working their way through the federal court system.

This week in the United States District Court for the Western District of Virginia in Abingdon, five defendants were sentenced for their roles in the conspiracy, Acting United States Attorney Rick A. Mountcastle announced.

Brandon Lee Stone, 33, was sentenced to 25 years in federal prison; Bradley Lee Chapman, 28, was sentenced to 135 months; Alex Michael Kayian, 23, was sentenced to 72 months; Kaitlynn Elizabeth Chapman was sentenced to 72 months, and Ralph Stewart Dingus, 27, was sentenced to 37 months.

Defendants previously sentenced for their roles in the conspiracy include John Dewayne Farmer, 240 months; Lola Virginia Farmer, 87 months; Shauna Nicole Chafin, 97 months; William Wesley Fleenor, 79 months; Jeffrey Nathaniel Gobble, 46 months, Preston Kyle Lawson, 46 months; Gary Ginn, 151 months; Daniel Corey Cantrell, 37 months; Tanner Morris Curd, 84 months; Amy Lorene Moser, 100 months; Steven Salyer, 87 months; Brandon Cody Trivett, 30 months; Lamar Skipper, four years’ probation; and Gary Brandon Childress, three years’ probation.

The investigation of the case was conducted by the Drug Enforcement Administration, Bureau of Alcohol, Tobacco, Firearms, and Explosives, Internal Revenue Service Criminal Investigations, United States Marshals Service, Virginia State Police, Washington County, Virginia Sheriff’s Office, Abingdon Police Department, Marion Police Department, and Smyth County, Virginia Sheriff’s Office. Assistant United States Attorney Zachary T. Lee is prosecuting the case for the United States.

Three Akron men were indicted for trying to pass counterfeit currency at the Summit Mall, said Acting U.S. Attorney David A. Sierleja.

Narlon Portis, Jr., 22, Rubin Smith, 21, and Christopher Cutlip, 21, were charged in the four-count indictment with making, possessing, uttering and dealing in counterfeit obligations or securities.

Portis, Smith and Cutlip passed and attempted to pass counterfeit U.S. currency at Summit Mall in Fairlawn on June 14, 2017. Mall security contacted the Fairlawn Police Department after one of the businesses reported the trio passed counterfeit $10 bills. Fairlawn Police located the suspects outside of the mall, found a large number of counterfeit bills and were arrested, according to court documents.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.

The investigation was conducted by the U.S. Secret Service and the Fairlawn Police Department. The case is being prosecuted by Assistant U.S. Attorney Teresa L. Riley.

An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

Two people who operated an Akron restaurant were sentenced to prison for harboring and hiring undocumented workers, law enforcement officials said.

Zhou Qiang Zou, was sentenced to 18 months in prison, to be followed by deportation. Xin Hsu was sentenced to nine months incarceration followed by nine months of house arrest. They are married and live in Akron. Both are 35 years old.

They were among the operators of the Royal Buffet and Grill restaurant in the Chapel Hill area of Akron. Hsu, Zou and others conspired to harbor and harbored at least 10 undocumented workers for the purpose of commercial advantage and private financial gain. The conspiracy included employing the undocumented workers at the Royal Buffet and Grill, where they worked for below minimum wage or only for tips, according to court documents.

Hsu, Zou and others also failed to report and pay taxes on cash receipts for nearly a decade, resulting in a tax loss of at least $1.5 million.

The defendants also housed the undocumented workers at one of their residences on Annapolis Avenue in Akron and transported them to and from the Royal Buffet and Grill as part of the conspiracy. Hsu, Zou and others housed as many as 14 undocumented workers at one time inside a single-family house, according to court documents.

“These defendants violated immigration and tax laws, taking advantage of their workers and the taxpayers,” said Acting U.S. Attorney David A. Sierleja.

“Employers have a legal responsibility to hire and maintain an authorized workforce. Those who circumvent our immigration system will be held accountable,” said Steve Francis, Acting Special Agent in Charge of HSI’s Detroit office.

“Individuals who corruptly violate the law to further their business interests and intentionally evade paying their fair share of taxes undermine public confidence in our tax system and unfairly disadvantage businesses that play by the rules,” said Ryan L. Korner, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “As these defendants have discovered, operating outside the law and failing to pay taxes have severe consequences."

The case is being prosecuted by Assistant U.S. Attorneys Teresa Riley and Robert J. Patton following an investigation by the U.S. Department of Homeland Security Investigations and the Internal Revenue Service – Criminal Investigations.

ATLANTA – Atlanta Medical Clinic (“AMC”), which is an Atlanta-based pain management clinic, and Dr. Timothy Dembowski (AMC’s owner), have agreed to pay the United States $250,000 to resolve allegations that they violated Medicare rules and the False Claims Act (“FCA”) by billing the Government for: (1) services performed by a physician suspended from the Medicare program, and (2) the administration of foreign, non-FDA approved drugs, which are not eligible for reimbursement under the Medicare program.

“To maximize their profits, AMC and Dr. Dembowski violated Medicare program rules, and then exacerbated their misconduct by submitting false claims to the Government,” said U.S. Attorney John Horn. “Pursuing this investigation and securing this settlement highlights our continued diligence in combating waste, fraud and abuse with respect to federal health care programs.”

“This monetary resolution to allegations that violate the False Claims Act hopefully sends a message to health care providers that we are determined to root out any attempt to take advantage of our federal health care programs,” said David LeValley, Special Agent in Charge of the FBI’s Atlanta Field Office. “Healthcare providers like Dr. Dembowski and AMC need to think twice before they so willfully, and illegally try to maximize their profits.”

“When physicians and health care companies provide patients with drugs not approved by the FDA and bill for services provided by those suspended from the Medicare program, they violate the basic trust that is extended to healthcare professionals,” said Special Agent in Charge Derrick L. Jackson of the HHS-OIG’s Atlanta Region. “Our agents continue to work with the Department of Justice to root out such fraud schemes, which undermine the public’s confidence in, and the financial well-being of, federal health care programs.”

A joint investigation conducted by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health and Human Services - Office of the Inspector General, and the Federal Bureau of Investigation revealed evidence suggesting that AMC and Dr. Dembowski violated the FCA through two separate schemes involving the submission of fraudulent Medicare claims to the Government.

First, AMC and Dr. Dembowski claimed and received payment for medical services rendered by a physician that worked at AMC (“Physician 1”). However, these claims were fraudulent as Physician 1 previously was suspended from the Medicare program in June 2013 for making false statements and omissions regarding his criminal history. Due to his suspension, no services rendered by Physician 1 were eligible for Medicare reimbursement. Both AMC and Dr. Dembowski were aware of Physician 1’s suspension, and that he was thus ineligible to provide services to Medicare patients.

Nevertheless, AMC and Dr. Dembowski circumvented Physician 1’s Medicare suspension and received Medicare reimbursements for Physician 1’s services, by falsely and fraudulently describing – in claims submitted to the Government – services that had been performed by Physician 1 as services performed by a different AMC physician (“Physician 2”) that was authorized to participate in the Medicare program.

Second, AMC and Dr. Dembowski violated the FCA by: (1) obtaining a foreign, non-FDA approved knee treatment drug – i.e, Orthovisc– from a firm in Canada; (2) utilizing such drug on Medicare patients; and then (3) seeking and receiving reimbursement from Medicare.

However, Medicare does not cover the costs of foreign, non-FDA approved drugs, and AMC and Dr. Dembowski never informed Medicare that the invoices involved the administration of foreign, non-FDA approved drugs.

The claims asserted against AMC and Dr. Dembowski are allegations only, and there has been no determination of liability.

This matter was handled by Assistant U.S. Attorney Paris A. Wynn.

For further information please contact the U.S. Attorney’s Public Affairs Office at USAGAN.PressEmails@usdoj.gov or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.

Dr. George Cohlmia, a physician with offices in Tulsa and Tahlequah, entered into a settlement agreement to pay $120,000 to resolve civil allegations that he violated the Comprehensive Drug Abuse Prevention Act of 1970, announced Acting United States Attorney Loretta F. Radford of the Northern District of Oklahoma. The Comprehensive Drug Abuse Prevention Act of 1970 regulates the manufacture and distribution of controlled substances.

According to the settlement agreement, between April 2013 and June 2015, it was alleged that Dr. Cohlmia dispensed controlled substances outside of his DEA registered location and permitted employees to purchase and dispense controlled substances to themselves, other employees, and Dr. Cohlmia. It was further alleged that Dr. Cohlmia failed to keep an inventory and other required records concerning the ordering, receipt and dispensing of controlled substances.

This case was handled by Assistant United States Attorney Marianne Hardcastle. The claims asserted by the government are allegations only, and there has not been any determination of liability.

If you are aware of any illegal or unusual sales and/or distribution of prescription drugs, please contact the Drug Enforcement Administration at 1-877-792-2873.

Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and Mark G. Peters, the Commissioner of the New York City Department of Investigation, announced the arrest of DANIEL SHERLOCK stemming from his possession of child pornography. SHERLOCK was arrested today and will be presented today before United States Magistrate Judge Henry Pitman in Manhattan.

Acting Manhattan U.S. Attorney Joon H. Kim said: “As alleged, Daniel Sherlock, a city employee, had child pornography on his work computer, which he tried to conceal through a computer program designed to permanently delete files. Whatever efforts are made to avoid detection, we are committed to prosecuting child pornography offenses and protecting children from sexual exploitation.”

DOI Commissioner Mark G. Peters said: “This defendant allegedly used his access to NYC Health + Hospital computers to download child pornography, according to the criminal complaint. DOI’s comprehensive investigation recovered dozens of these disturbing images, and even before today’s arrest DOI quickly put protocols in place to prevent this defendant from accessing City hospital computers and properties. This charged crime is serious and the security of City facilities of paramount importance – there can be no tolerance for this type of grotesque behavior. We thank the United States Attorney’s Office for the Southern District of New York for their swift response and partnership on this investigation.”

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

In June 2017, law enforcement agents searched SHERLOCK’s work computer and recovered 86 images of child pornography, many of which depicted prepubescent children engaged in sexual activity with adults. Law enforcement agents also discovered that a program named “CCleaner,” which is a privacy and cleaning tool for computers that removes files, cleans the computer registry, and cleans traces of online activities, had been installed on SHERLOCK’s computer. New York City Health and Hospitals’ records confirmed that SHERLOCK had been at work on the days the child pornography was created and “CCleaner” was installed.

* * *

DANIEL SHERLOCK, 28, of East Meadow, New York, is charged with one count of possession of child pornography, which carries a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Any individuals who believe they have information concerning DANIEL SHERLOCK that may be relevant to the investigation should contact the United States Attorney’s Office through its toll-free hotline at 212-637-0650.

Mr. Kim praised the Criminal Investigators of the U.S. Attorney’s Office, and the New York City Department of Investigation and its Office of the Inspector General for NYC Health + Hospitals for their outstanding investigative work.

This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Alexandra N. Rothman is 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.

ALBUQUERQUE – Tracey Beaver, 38, an enrolled member of the Navajo Nation who resides in Pinehill, N.M., was sentenced yesterday in federal court in Santa Fe, N.M., to 60 months of imprisonment on each of two counts of involuntary manslaughter to run consecutively for a total of 120 months of imprisonment. Beaver will be on supervised release for three years after completing his prison sentence.

Beaver was arrested on Sept. 24, 2016, on a criminal complaint charging him with involuntary manslaughter. According to the complaint, Beaver killed two victims when he crashed his vehicle on Sept. 9, 2016, on the Ramah Navajo Indian Reservation in Cibola County, N.M. At the time of the crash, Beaver was driving under the influence of alcohol.

On Nov. 16, 2016, Beaver pled guilty to a felony information charging him with two counts of involuntary manslaughter. In entering the guilty plea, Beaver admitted killing the two victims by driving recklessly while under the influence of alcohol. Beaver acknowledged that the alcohol rendered him incapable of exercising clear judgment and a steady hand in operating the vehicle.

This case was investigated by the Gallup office of the FBI, the New Mexico State Police and the Ramah Navajo Police Department and was prosecuted by Assistant U.S. Attorney Nicholas Marshall.

HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that David Allen Hoffman, age 68, of Mechanicsburg, Pennsylvania, was sentenced on August 1, 2017, by U.S. District Court Judge William W. Caldwell to five years’ imprisonment, followed by 10 years of supervised release for receipt of images depicting the sexual exploitation of children. Judge Caldwell also ordered Hoffman to be immediately remanded into the custody of the United States Marshals Service.

According to United States Attorney Bruce D. Brandler, Hoffman received images depicting the sexual abuse of children from an international company. After obtaining a warrant, federal law enforcement officers searched Hoffman’s home in August 2016, and located over 600 images depicting the sexual exploitation of children he received between December 2010 and February 2011.

This case was investigated by the United States Postal Inspection Service and the Pennsylvania Office of the Attorney General. Assistant United States Attorney Daryl F. Bloom prosecuted the case.

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 clickon the tab "resources."

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BIRMINGHAM – A federal grand jury today indicted a Marion County man for methamphetamine distribution and gun charges, announced acting U.S. Attorney Robert O. Posey and Bureau of Alcohol, Tobacco and Firearms Special Agent in Charge Steven L. Gerido.

A two-count indictment filed in U.S. District Court charges JASON LAMAR McSHERIDAN, 45, of Hamilton, with possessing with intent to distribute 50 grams or more of methamphetamine on Feb. 5, 2016, in Marion County. The indictment also charges McSheridan as a convicted felon possessing three firearms on that date, a Ruger .45-caliber semi-automatic pistol, a Taurus .45-caliber pistol and a Winchester .30-30 caliber rifle.

McSheridan’s prior convictions are first-degree burglary, 2005, and unlawfully manufacturing a controlled substance, 2011, both in Calhoun County Circuit Court, according to the indictment.

The penalty for possessing with intent to distribute 50 grams or more of methamphetamine is 10 years to life in prison and a maximum $10 million fine.

The maximum penalty for being a convicted felon in possession of a firearm is 10 years in prison and a $250,000 fine.

ATF investigated the case, which the U.S. Attorney’s Office for the Northern District of Alabama is prosecuting.

An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.

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A North St. Louis man will serve 30 years in federal prison for robbing two convenience stores and shooting a store clerk in 2010. Leslie Woods, 23, was sentenced yesterday in the U.S. District Court to 30 years in prison for his role in the June 17, 2010 armed robbery and shooting that that occurred at the Best Stop convenience store in Cahokia, Illinois and the July 8, 2010 robbery and shooting that occurred at D&D’s MiniMart, also located in Cahokia, Illinois, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.

Documents filed in the U.S. District Court establish that on June 17, 2010, Leslie Woods, Derek Marshall, Terrell McGee and James Smith robbed the Best Stop convenience store partially masked and armed with a rifle and two handguns, one of which was a .40 caliber pistol Marshall had stolen during a burglary of a St. Louis gun store earlier in June. Woods, acting as the getaway driver, drove Marshall, McGee and Smith to the store in a car they had stolen during a carjacking in South St. Louis earlier in the day. Woods waited in the car while Marshall, McGee and Smith went into the store, ordered a customer to the ground, pointed a gun to the owner’s head and took over $11,000 from the cash register. As they fled the store, Marshall shot the customer laying on the floor with a .40 caliber pistol and then fired four shots toward a woman sitting in her car parked outside the business. The entire robbery was captured on the store video surveillance.

Five hours after the robbery, the stolen car was recovered in St. Louis County and processed for fingerprints. Two fingerprints were recovered from the door of the gas tank, which were determined to be a match to Leslie Woods. Approximately a week and a half later, Marshall was found in possession of a .40 caliber handgun during a traffic stop in Brooklyn, Illinois. Testing by the Illinois State Police forensic lab revealed that the gun recovered from Marshall was a match to the .40 caliber fired cartridges recovered by a crime scene investigator from the shooting at Best Stop.

Three weeks later, on July 8, 2010, Leslie Woods, Derek Marshall, Terrell McGee, James Smith and Reshon Farmer robbed D&D’s Minimart partially masked and armed with two rifles and two handguns. Farmer drove Woods, Marshall, McGee and Smith to the store in a minivan they had stolen in North St. Louis earlier that day. Farmer waited in the van while Woods, Marshall, McGee and Smith went into the store and pointed their guns at the two employees behind the counter. While the male clerk was trying to open the register, Woods shot him with a .30/.30 caliber rifle, causing him to fall on top of the female clerk who was lying on the ground. Woods then fired two more shots at both employees. As the two employees laid motionless on the floor, Woods and his co-conspirators took the cash register and a .40 caliber handgun that belonged to the store owner. As a result of the shooting, the male clerk suffered severe injuries and has permanent loss of use of his right arm. The entire robbery was captured on the store video surveillance.

Several police officers from North St. Louis who knew Woods, Marshall, Smith and Farmer viewed the video surveillance of D&D’s MiniMart robbery and identified Marshall, Woods and Smith as three of the gunmen. They also identified Farmer as the getaway driver. During an interview with law enforcement officers, Smith and Farmer confessed to their involvement in the D&D’s MiniMart robbery and identified Marshall, Woods and McGee as the three other gunmen.

In 2015, McGee was arrested and interviewed about his involvement in the two robberies. McGee admitted that he was one of the three gunman in the Best Stop robbery. He also admitted that he was one of the four gunmen in the D&D’s MiniMart robbery.

Woods, Marshall and McGee pleaded guilty to all charges in federal court in April 2017. Marshall and McGee are awaiting sentencing. After completion of the 30-year term of imprisonment, Woods will then serve 3 years of federal supervised release. He was also ordered to pay $727,070 in restitution to the victims and a $600 special assessment. Smith and Farmer were prosecuted for these offenses by the St. Clair County State’s Attorney’s Office.

The case was investigated by the Cahokia Police Department, the St. Louis County Police Department, the Illinois State Police, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Ali Summers, Dan Kapsak, and James Piper, Jr..