NORFOLK, Va. – Sophia Dix, 35, of Newport News, was sentenced today to 15 months in prison for wire fraud.  Dix was also sentenced to three years of supervised release and ordered to pay restitution in the amount of $97,584.94.

Dix pleaded guilty on April 25, 2016. According to court documents, from in or about April 2014, through in or about August 2015, Dix devised a scheme to defraud the Social Security Administration (SSA), where she was employed as a service representative at a district office in Norfolk. She had computer access to Social Security Administration beneficiary information, including bank account data for the direct deposit of benefit payments into the bank accounts of beneficiaries. Dix obtained monies for herself by fraudulently processing computer changes to beneficiary account information so that benefit payments would be deposited directly into prepaid reloadable debit card accounts that she opened at a financial institution in the name of a deceased beneficiary. As a result, Dix fraudulently diverted over $97,000 into the prepaid reloadable debit card accounts, which she used for her personal benefit.

Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael McGill, Special Agent-in-Charge of the Philadelphia Field Division of the SSA Office of the Inspector General, made the announcement after sentencing by U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Elizabeth M. Yusi prosecuted the case.

A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.  Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16cr32.

SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that Caddo Parish Commissioner Michael Dwayne Williams was sentenced to 14 months in prison for stealing from a nonprofit meant to help at-risk youth.

Williams, 55, of Shreveport, was sentenced by U.S. District Judge S. Maurice Hicks Jr. on 11 counts of wire fraud. He was also sentenced to three years of supervised release, and he was ordered to pay $8,584.68 restitution, a $10,000 fine and $1,100 to the Crime Victims Fund. According to evidence presented at the four-day trial that ended on March 10, 2016, Williams took more than $8,000 from a nonprofit’s bank account from October 1, 2012 through July 1, 2014. Williams urged the parish commission to appropriate public funds for the nonprofit SWAG Nation. Once those funds were allocated from the parish’s budget to SWAG Nation, Williams caused a bank debit card to be issued for the nonprofit. Between April of 2013 and July of 2014, Williams used the card to remove money on numerous occasions. According to the indictment, he took $100 to $200 each time that he made a withdrawal. Evidence presented at trial showed the defendant used the card in excess of 45 times for cash withdrawals and purchases.  SWAG Nation’s declared purpose is to partner with local institutions to help mentor and counsel at-risk individuals ages 7 to 17 so that they can better function in society.

“Mr. Williams put greed before the needs of his constituents by stealing money from a program set up to help at-risk youth,” stated Finley.  “His actions are a betrayal of the public trust and his oath of office.”

“Stealing is bad enough, but when you’re an elected official, you are stealing from the taxpayers who put their faith and trust in you,” Caddo Parish Sheriff Steve Prator said. “Mr. Williams violated the public’s trust and should now be held accountable.”

The FBI and the Caddo Parish Sheriff’s Office conducted the investigation.  Assistant U.S. Attorneys Joseph G. Jarzabek and Brandon B. Brown prosecuted the case.

LAS VEGAS, Nev.– A Las Vegas man who robbed a convenience store, two liquor stores, a payday loan company, and an electronics retailer in the Las Vegas area during the summer of 2014, was sentenced today to 1,354 months or over 112 years in prison and five years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. 

Dominique Wells, 29, was sentenced this morning by U.S. District Judge James C. Mahan. Wells was convicted by a jury in April of five counts of interference with commerce by robbery, two counts of conspiracy to interfere with commerce by robbery, and five counts of using a firearm during and in relation to a crime of violence.  Two co-defendants, Christopher Dobbins, 28, and Andre Hall, 27, pleaded guilty in 2015. Dobbins was sentenced on July 13 to four years in prison, and Hall is awaiting sentencing.

“The prosecution of persons who commit violent robberies of commercial establishments with guns in southern Nevada is a top priority of our violent crime program,” said U.S. Attorney Bogden. “The defendants who are prosecuted federally for these robberies are typically recidivist felons who are using firearms to terrorize our community. Like in this case, the consequences of conviction for these repeat, violent offenders are severe.”

According to court records and trial testimony, on June 15, 2014, Wells robbed a convenience store in Henderson using a handgun and wearing a black mask and gloves, black t-shirt and camouflage shorts.  Four days later, on June 19, 2014, Wells robbed a liquor store in Las Vegas using a handgun with a laser sight, and wearing camouflage shorts, a black t-shirt, and a black face mask/ski mask.  Two days after that, on June 21, 2014, Wells robbed a liquor store on the Boulder Highway in Las Vegas using a black handgun with a laser sight and wearing camouflage shorts, a black t-shirt and a black face mask/ski mask.  On June 26, 2014, Wells robbed a payday loan store in Henderson using a black handgun with a laser sight. Wells and a co-defendant used duct tape to tie up three individuals inside the payday loan store.  On July 3, 2014, Wells robbed an electronics retailer in Henderson using a black handgun.  Wells and a co-defendant used zip ties to tie up the employees in that robbery. Wells obtained on average only $100 to $250 in each robbery.

Over the last five years, 94 persons have been charged federally with using firearms to commit commercial robberies in southern Nevada.  Following are links to the news releases for some of those cases.

https://www.justice.gov/usao-nv/pr/las-vegas-cinched-hoodie-robber-sentenced-life-prison

https://www.justice.gov/usao-nv/pr/femal-getaway-driver-convicted-robberies-13-banks-and-stores-las-vegas-area-during-2012

https://www.justice.gov/usao-nv/pr/man-sentenced-over-14-years-prison-six-armed-robberies

https://www.justice.gov/usao-nv/pr/men-sentenced-prison-kidnapping-conspiracy-and-thefts-delivery-drivers-and-warehouses

https://www.justice.gov/usao-nv/pr/last-30-minutes-or-less-robbers-gets-16-years-prison

https://www.justice.gov/usao-nv/pr/man-sentenced-over-11-years-federal-prison-robbing-local-jewelry-store-stolen-handgun

https://www.justice.gov/usao-nv/pr/man-who-robbed-las-vegas-mini-mart-convicted-jury

This case was investigated by the FBI, the Las Vegas Metropolitan Police Department, and the Henderson Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. 

The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith, Jr. and Lisa Cartier-Giroux.

LAS VEGAS, Nev.– A Las Vegas man who robbed two tourists in the parking lot of their hotel at gunpoint and stole their vehicle, was sentenced this morning to 147 months in prison and three years of supervised release, announced U.S. Attorney Daniel G. Bogden for the District of Nevada. 

Brandon Michael White, 34, was sentenced by U.S. District Judge Gloria M. Navarro. White pleaded guilty on April 11 to one count of carjacking and one count of using a firearm during and in relation to a crime of violence. 

According to the guilty plea agreement, on Dec. 26, 2014, at approximately midnight, White approached a man and a woman in the parking lot of their hotel on East Flamingo Road just after they parked their vehicle. White pointed a revolver at their feet and told them to give him everything, including their car keys. White took the female victim’s purse and the male victim’s cellular telephone and the car keys, and drove off in their vehicle. White was captured hiding in a yard near another hotel, where he had discarded the stolen items and the handgun he used to commit the robbery.

White has seven prior felony convictions in Las Vegas for burglary, robbery, and theft, and numerous misdemeanor convictions. 

This case was investigated by the FBI and the Las Vegas Metropolitan Police Department, as part of the Safe Streets Task Force and Project Safe Neighborhoods program. 

The case was prosecuted by Assistant U.S. Attorney Phillip N. Smith, Jr.

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was indicted in federal court on one count of committing a health care fraud scheme against the State of Alaska Medicaid program.

Mee Chong Collins, 70, a resident of Anchorage, was charged with executing a scheme involving the submission of numerous fraudulent timesheets beginning in February 2009 through June 2013, falsely claiming that her family members had provided personal care attendant services to four Medicaid recipients.  According to the indictment, the services were not provided.  It is further alleged that the fraudulent timesheets caused the payment of approximately $337,149.68 in Medicaid funds.

Medicaid is a joint federal and state program that covers health care expenses for low-income and disabled people.  Personal care attendants enable Medicaid recipients to remain in their homes, rather than move to an assisted living facility.

The investigation leading to the indictment in this case was conducted by federal and state agencies, including the Federal Bureau of Investigation, the United States Department of Health and Human Services – Office of Inspector General, the Department of Homeland Security, and the State of Alaska Medicaid Fraud Control Unit.

An arraignment date for the defendant has not been set yet by the court.

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

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced that an Anchorage man was sentenced today in federal court to 21 months in prison for mail theft and credit card fraud. 

Evan Mullen, 28, resident of Anchorage, was sentenced by U.S. District Judge Sharon L. Gleason, who also ordered Mullen to pay full restitution. 

According to Assistant U.S. Attorney Aunnie Steward, who prosecuted the case, that starting in December 2015, Mullen repeatedly stole mail from mailboxes of residents living in an Anchorage Hillside neighborhood.  Mullen was specifically looking for credit cards but he also stole packages from these mailboxes and threw other opened mail on the ground.  Mullen took the stolen credit cards and purchased gift cards and merchandise.  Mullen continued this conduct up until the day before his arrest in February 2016.  There were more than 10 victims of Mullen’s crimes including those who had their mail stolen and banks who absorbed the loss from the stolen credit cards.  Efforts by the victims in the Hillside neighborhood to identify Mullen were extremely valuable to law enforcement in the investigation and prosecution of this case. 

At sentencing, Judge Gleason noted the seriousness of the violation of the victims’ privacy when Mullen ransacked their private mail. 

U.S. Attorney Loeffler commends the U.S. Postal Inspection Service and the Anchorage Police Department for the investigation of this case. 

DALLAS— Preferred Imaging, LLC, (Preferred Imaging), a provider of diagnostic imaging services, has agreed to pay $3,510,000 to resolve allegations that it improperly billed Medicare and Medicaid for services performed without proper medical supervision in violation of the False Claims Act and the Texas Medicaid Fraud Prevention Act.  Preferred Imaging cooperated with the investigation and, by settling, did not admit any wrongdoing or liability.  The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.  

Preferred Imaging operates independent diagnostic facilities (IDTFs) in Texas, Illinois, and Kansas.  Certain procedures performed by IDTFs, such as procedures involving the administration of contrast dye, must be supervised by an on-site physician.  The settlement resolves allegations that Preferred Imaging submitted claims to Medicare, Medicaid, and TRICARE for procedures that were performed between January 2009 and February 2015 without a supervising physician on-site. 

“The requirement that certain services are supervised by a physician is in place to protect Medicare and Medicaid patients,” said U.S. Attorney Parker.  “This settlement clearly reflects our commitment to hold facilities responsible for failing to ensure that those requirements are satisfied.”

The settlement resolves allegations filed by relator Tracy Sifuentes, a former employee of Preferred Imaging, under the qui tam or whistleblower provisions of the FCA and TMFPA, which authorize private parties to sue for fraud on behalf of the United States and State of Texas and share in the recovery.  The relator will receive $596,700.

The investigation was conducted by Health and Human Services Office of Inspector General, Defense Criminal Investigative Services, and the Texas Medicaid Fraud Control Unit.  The case was handled by Assistant U.S. Attorney Lisa-Beth C. Meletta.

# # #

          GRAND RAPIDS, MICHIGAN–A federal grand jury indicted four Battle Creek men, William Jeffrey-Davis Edwards (age 24), Dakota Dale Walters (age 24), James Gabriel Smith (age 26), and Michael Ray Noble II (age 20), on multiple counts of sex trafficking two minors, both age 14. Calhoun County previously charged all four defendants with human trafficking upon their arrest in June, and those charges will be dismissed in light of the federal prosecution. Homeland Security Investigations has been working closely with the Battle Creek Police Department on a coordinated state and federal investigation.

          The defendants face up to life in prison on the sex trafficking counts, sex offender registration, and up to lifetime on intensive federal supervised release after prison. The minors will be able to seek monetary restitution for counseling, treatment, and other damages if the defendants are convicted. In addition to being charged with sex trafficking, Smith faces up to 10 years in prison on one count of being a felon in possession of a firearm.

          This case, prosecuted by Assistant U.S. Attorney Tessa K. Hessmiller, is part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. The U.S. Attorney’s Office; county prosecutor’s offices; and federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. Individuals with information or concerns about possible child exploitation should contact local law enforcement. For more information about Project Safe Childhood in West Michigan, including resources for children and parents, visit: http://www.justice.gov/usao/miw/programs/psc.html.

          The charges in an indictment are merely accusations, and the defendants are presumed innocent until and unless proven guilty in a court of law.

END

BOSTON – A Canton man was charged yesterday in U.S. District Court in Boston in connection with being a felon in possession of a firearm and distribution of cocaine.

Hollis Owens, 44, was indicted on one count of being a felon in possession of a firearm and ammunition, four counts of distribution of a controlled substance and one count of possessing a firearm in furtherance of a drug trafficking crime.  Owens was previously charged by complaint and arrested in April 2016.  

According to court documents, in the spring of 2016, law enforcement officers were investigating illegal distribution of cocaine in Framingham.  During that time, officers conducted several controlled purchases of cocaine from Owens. In April 2016, a search of Owen’s residence revealed approximately 18 grams of crack cocaine, a loaded Smith & Wesson 9mm hand gun, 114 rounds of various caliber ammunition and $1,869 in cash. 

Owens was prohibited from possessing a firearm because he had a prior state felony conviction. 

The charge of being a felon in possession of ammunition provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of up to $250,000.  The charge of distribution of a controlled substance provides a sentence of no greater than 20 years in prison, five years of supervised release and a fine of $1 million.  The charge of possessing a firearm in furtherance of a drug trafficking crime provides a minimum mandatory sentence of five years in prison and no greater than a lifetime which must be served consecutive to any other imposed sentence, five years of supervised release and a fine of $250,000.  Actual sentences for federal crimes are typically less than the maximum penalties.  Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Carmen M. Ortiz and Lawrence J. Panetta, Acting Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement.  The case is being prosecuted by Assistant U.S. Attorney Nicholas Soivilien of Ortiz’s Major Crimes Unit.

The details contained in the indictment are allegations.  The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. 

ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Natchitoches man was sentenced Wednesday to 211 months in prison for possessing methamphetamine and a firearm.

Harold Jumale Anderson, 42, of Natchitoches, La., was sentenced by U.S. District Judge Dee D. Drell to 151 months in prison on one count of possession of methamphetamine with intent to distribute and 60 months on one count of possession of a firearm in furtherance of drug trafficking. He was also sentenced to five years of supervised release. According to the April 26, 2016 guilty plea, law enforcement agents conducted a controlled buy of methamphetamine using a confidential informant on August 18, 2015, in Alexandria.  After his arrest, Anderson’s residence was searched, and agents found more than 500 grams of methamphetamine, a loaded Ruger 9 mm handgun and additional ammunition in his bedroom.

The FBI and the Louisiana State Police conducted the investigation.  Assistant U.S. Attorney Allison D. Bushnell prosecuted the case.

DALLAS— Christian C. Winchel, 49, of Rockwall, Texas, was sentenced today by U.S. District Judge Sidney A. Fitzwater to serve a total of 50 years in federal prison, and pay more than $1.4 million in restitution, following his guilty plea to multiple child pornography offenses involving prepubescent child pornography, announced U.S. Attorney John Parker of the Northern District of Texas.  

Winchel has been in custody since his arrest on a related federal criminal complaint in early February 2015.  He pleaded guilty in September 2015 to one count of production of child pornography, one count of transporting and shipping child pornography, and one count of possession of prepubescent child pornography

According to the factual resume filed in the case, Winchel began downloading child pornography in approximately 1994.  He admitted that he thought he would be able to trade child pornography with others if he produced his own material.  Winchel had access to an 18-month-old child, and he took sexually explicit photos of himself with the child.  He also admitted using a spy cam to capture minor girls using the bathroom when they were in his home and a nanny cam to capture minor girls in various stages of undress in his home. 

Winchel moved to Rockwall from Indiana in 2013, transporting the videos he had recorded of minor girls from Indiana to Texas.  He admitted that when children visited for sleepovers at his home in Rockwall, he filmed himself engaging in sexually explicit activity while in proximity of the minor children who were asleep.

Law enforcement executed a search warrant at Winchel’s residence in February 2015 and seized several media items.  An IT specialist, Winchel had used his computer skills to try to mask his computer from law enforcement. 

The forensic analysis, however, revealed that Winchel’s collection of child pornography, which he had categorized and organized, was approximately two terabytes in size.  Law enforcement further determined that some of the images and a video Winchel had involving an eight-year-old minor victim were produced in late July 2014.  Law enforcement found evidence that Winchel produced child pornography and images and videos of five minor victims. 

This year marks the 10^th anniversary of the Project Safe Childhood (PSC) initiative.  PSC is a department initiative launched in May 2006 to combat the proliferation of technology-facilitated sexual exploitation crimes against children.  Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims.  Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants.  These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes.  To learn more about PSC’s work, please visit: https://www.justice.gov/psc.

The FBI’s Dallas Child Exploitation Task Force conducted the investigation.  Assistant U.S. Attorney Camille Sparks prosecuted the case.

# # #

          A leader of a large drug trafficking group who tortured a co-conspirator to get information about a missing shipment of drugs, was sentenced today in U.S. District Court in Seattle to 15 years in prison for three federal felonies related to the drug enterprise, announced U.S. Attorney Annette L. Hayes.  RAMON ZAVALA-ZAZUETA, 44, of Kent, Washington was arrested in August 2015 hiding in a closet of his residence with a loaded semi-automatic pistol.  In the residence were heroin and drug trafficking materials.  During the course of the investigation law enforcement seized more than 29 pounds of meth, more than 18 pounds of heroin, six pounds of cocaine, approximately $178,000 in cash and 16 firearms, including five assault rifles.  At the sentencing hearing U.S. District Judge Marsha J. Pechman said, “What you’ve done is extraordinarily serious.  It is blight on the United States and on your home country of Mexico…. After you are released, go back to Mexico and do not return.”

          “No one wants to live in a community impacted by the drugs and violence that this defendant is responsible for,” said U.S. Attorney Annette L. Hayes.  “I commend the federal, state and local law enforcement agencies that worked together to eliminate this threat from our midst.  Western Washington is a better place because of their hard work.”

          The investigation involved court authorized wire-taps and extensive surveillance of members of the criminal group who trafficked large amounts of heroin and methamphetamine to the Northwest from California and Mexico.  When law enforcement moved in to make arrests they served search warrants on seventeen residences, three storage facilities and more than a dozen vehicles tied to the criminal group.  Search warrants were executed in: Auburn, Bellevue, SeaTac, Seattle, Tukwila, Renton, Kent, Port Orchard, and Everett, Washington.  In all 22 defendants were charged in the case.

            The investigation revealed that ZAVALA-ZAZUETA was not only bringing multiple pound loads of meth and heroin into Western Washington, he was obtaining firearms and sending them south to Mexico where drug cartels use them in their drug trafficking activities.  ZAVALA-ZAZUETA was at times trading drugs for stolen guns.  Some of the firearms recovered were two AR-15 style rifles, and two handguns.

            ZAVALA-ZAZUETA used one of the handguns to threaten a co-conspirator who he thought had information about a lost load of methamphetamine.  ZAVALA-ZAZUETA brought the co-conspirator and later the co-conspirator’s wife to his residence, tied the man up with duct tape, beat him, put a gun to his head, and used a red-hot knife to burn him.  ZAVALA-ZAZUETA tortured the man in an attempt to get information about the load of drugs he thought had been stolen.

          Those sentenced to date in this case include:

Ediberto Asevez Santillano, 36, of Renton, Washington – ten years in prison

Brian Christensen, 40, of Port Orchard, Washington – seven years in prison;

Will Edward Brambila, 27, of Kent, Washington – four years in prison;

Sendhy Amairany Felix Acevez, 22, of SeaTac, Washington – three years in prison;

Francisco Flores Penuelas, 44, of Kent, Washington – three years in prison;

Hanzel Knight, 43, of Auburn, Washington – five years in prison;

Heriberto Pacheco Juarez, 23, of Kent, Washington – five years in prison;

Alfonso Leos Villasenor, 21, of Kent, Washington – five years in prison;

Steven James Montgomery, 53, of Edmonds, Washington – four years in prison;

Ricardo Topete, 25, of Seattle – four years in prison.

Clarence Daniels, 36, of Kent, Washington – seven years in prison.

Joseph Moore, 49, Kent, Washington – five years in prison.

          This was an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation, providing supplemental federal funding to the federal and state agencies involved.  The investigation was led by the Drug Enforcement Administration, the FBI and the Seattle Police Department.  The searches and arrests involved agents and officers from: Homeland Security Investigations – Seattle, Port of Seattle Police Department, Washington State Patrol, Snohomish County Sheriff’s Office, Snohomish Regional Drug And Gang Task Force, King County Sheriff’s Office, Kitsap County Sheriff’s Office, Lynnwood Police Department, Kent Police Department, Renton Police Department, Auburn Police Department, Tukwila Police Department, Federal Way Police Department, and the Pierce County Sheriff’s Office.

          The case is being prosecuted by Assistant United States Attorneys Vince Lombardi and Thomas Woods.

BOSTON – The U.S. Attorney’s Office announced today that California-based medical device manufacturer Acclarent Inc., a subsidiary of Ethicon, a Johnson & Johnson company, has agreed to pay $18 millio311n to resolve allegations that it caused health care providers to submit false claims to Medicare and other federal health care programs by marketing and distributing one of its products, the Relieva Stratus, for use as a drug delivery device without U.S. Food and Drug Administration (FDA) approval of that use.  

“The FDA plays a fundamental role in ensuring the safety and efficacy of medical devices and drugs in this country,” said United States Attorney Carmen M. Ortiz.  “Every time that patients receive a medical device or fill a prescription they should be able to take for granted that the FDA’s requirements have been met.  We will vigorously pursue those who ignore or seek to circumvent these important patient protections.”

“The FDA approval process serves an important role in ensuring that federal health care participants receive devices that are safe, effective and medically appropriate,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.  “We will not permit companies to circumvent that process and put profits over patient safety.”    

“The FDA's requirement for premarket approval of medical devices is designed to ensure the health and safety of patients,” said George M. Karavetsos, Director of the FDA Office of Criminal Investigations. “The FDA will continue to aggressively pursue those who place the public health at risk and compromise the integrity of the regulatory system.”

“Companies cannot ignore the regulatory process to boost their bottom line,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation's Boston Division.  “The FBI hopes this sends a clear message to those who disregard the laws and protections the public relies on for their safety.”

“Marketing medical devices for other than FDA approved uses can expose patients to questionable medical treatments while asking taxpayers to pick up the Medicare cost," said Special Agent in Charge Phillip M. Coyne of the Department of Health and Human Services Office of Inspector General.  "Our investigators, working closely with our law enforcement partners, will continue to pursue allegations of such misconduct and deter those tempted to launch such illegal scams.”

“We are pleased to have contributed to this outstanding multi-agency investigation,” said Jeffrey G. Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office.  “The VA makes every attempt to ensure pharmaceutical and medical devices have gone through the necessary FDA approval processes and have been determined to be safe and effective.  When individuals and companies circumvent that process, patients and our veterans suffer.”

Acclarent sold a variety of medical devices used in sinus surgeries, including a device known as the Relieva Stratus MicroFlow Spacer (Stratus).  In 2006, Acclarent received FDA clearance to market the Stratus as a spacer to be used only with saline to maintain sinus openings following surgery.  The government alleged that Acclarent intended for the Stratus to be used instead as a drug-delivery device for prescription corticosteroids, including Kenalog-40, and that the device was specifically designed and engineered for this use.     

The government further alleged that Acclarent marketed the Stratus as a drug delivery device even after the FDA rejected the company’s 2007 request to expand the approved uses for the Stratus.  For example, Acclarent employees trained physicians using a video that demonstrated the Stratus being used with prescription corticosteroid Kenalog-40 and also used a white, milky substance resembling Kenalog-40 when demonstrating the Stratus.   

In 2010, after the acquisition by Ethicon, Acclarent added a warning to its label regarding use of active drug substances in the Stratus.  By May 2013, Acclarent discontinued all sales of the Stratus and the company agreed to withdraw all FDA marketing clearances for the device, which is no longer commercially available in the United States.  Ethicon also cooperated with the government’s investigation.

On Wednesday, July 20^th, Acclarent’s former Chief Executive Officer, William Facteau, 47, of Atherton, California and former Vice President of Sales, Patrick Fabian, 49, of Lake Elmo, Minnesota were convicted following a six-week jury trial of 10 misdemeanor counts of introducing adulterated and misbranded medical devices into interstate commerce. 

This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services.  The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation.  One of the most powerful tools in this effort is the False Claims Act.  Since January 2009, the Justice Department has recovered a total of more than $30 billion through False Claims Act cases, with more than $18.3 billion of that amount recovered in cases involving fraud against federal health care programs.

This matter was investigated by the Commercial Litigation Branch of the Justice Department’s Civil Division; the Food and Drug Administration, Office of Chief Counsel; the Federal Bureau of Investigation, Boston Field Division; the Department of Health and Human Services, Office of Inspector General; the Defense Health Agency; the Food and Drug Administration, Office of Criminal Investigations; Department of Defense, Office of Inspector General, Defense Criminal Investigative Service; the Department of Veterans Affairs, Office of Inspector General.  The matter was handled by District of Massachusetts Assistant U.S. Attorneys Sara Miron Bloom, Patrick Callahan and Department of Justice Trial Attorneys Colin Huntley and Ross Goldstein.

The claims resolved by this settlement are allegations only, and there has been no determination of liability. 

U.S. Attorney Kenneth A. Polite announced that DARION TINSON, age 34, of New Orleans, pleaded guilty today to two counts of an Indictment charging violations of the Federal Controlled Substances Act and the Federal Gun Control Act.

According to court documents, during a search of a residence where TINSON was living, agents located approximately two ounces of heroin in a bedroom, as well as a stolen Taurus .45 semi-automatic pistol in close proximity to the suspected heroin.  Additionally, agents seized a scale, suspected marijuana, and approximately $2,000.00 in U.S. currency in the nightstand of the master bedroom.  TINSON admitted that the heroin and gun were his during post arrest interviews.  TINSON pled guilty to possession with the intent to distribute a mixture or substance containing a detectable amount of heroin, a Schedule I controlled substance, and possession a firearm in furtherance of his drug trafficking. 

TINSON faces up to 20 years in prison on the drug trafficking charge, a fine of up to $1,000,000, and at least three years of supervised release following any term of imprisonment.  The gun charge carries a mandatory minimum additional 5 years in prison that must run consecutive to any other sentence.  U.S. District Judge Kurt D. Engelhardt set sentencing for October 26, 2016.

U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter.  Assistant United States Attorney David Haller is in charge of the prosecution.

          A Seattle psychologist was sentenced today in U.S. District Court in Seattle to 78 months in prison and five years of supervised release for attempted travel to engage in illicit sexual conduct and attempted receipt of child pornography, announced U.S. Attorney Annette L. Hayes.  JONATHAN BRENT WULF, 62, of Seattle posted an ad on Craigslist beginning a conversation with what turned out to be an undercover agent working for U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI).  Through various communications by phone and internet, WULF said he wanted to have sex with the agent’s fictional 12-year-old stepdaughter.  WULF was arrested in September 2015 when he arrived at the hotel selected as the meeting place for the sexual encounter.  At the sentencing hearing U.S. District Judge Richard A. Jones noted WULF’s career as a clinical psychologist saying “You’ve been able to see the kind of damage this activity can cause.”

            “Predators use social media and the internet to prey on children,” said U.S. Attorney Annette L. Hayes.  “Even where there is careful oversight by parents, children are vulnerable to sexual predators through their online activities.  This defendant, a child psychologist, thought he could hide in the shadow of the internet.  He was wrong. Law enforcement and a prison sentence is what awaited him instead.”

          According to records filed in the case, over a two week period in September 2015, WULF repeatedly communicated with the undercover agent about his wanting to have sex with the agent’s fictional 12-year-old stepdaughter.  WULF repeatedly suggested that all text messages or other internet communications regarding his interest in underage sex should be deleted.  WULF also repeatedly acknowledged that pursuing sex with a minor was illegal.  WULF was a trained psychologist who had specialized in children and adolescents.  The Washington State Department of Health has suspended WULF’s license.

          “We entrust teachers and counselors to serve as role models for our children and safeguard their welfare, said Steve Cagen, acting special agent in charge for HSI Seattle. “This sentence should serve as a stern warning to anyone who mistakenly believes cyberspace affords them anonymity and they can use the Internet to sexually exploit children with impunity. HSI will use all of its law enforcement authorities to combat this heinous behavior -- we owe it to the children who are the victims in these cases, many of whom will bear the emotional scars of this trauma for the rest of their lives.”

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

          The case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations.  The case was prosecuted by Assistant United States Attorney Matthew Hampton.

This afternoon, following a two week trial, a federal jury in Brooklyn, New York, returned a guilty verdict against Gregorio and Angelo Gigliotti for their operation of a transnational cocaine trafficking operation that stretched from Italy, to Queens and to Costa Rica.  Gregorio Gigliotti was also convicted of possessing a stash of firearms in connection with the operation.  When sentenced by United States District Judge Raymond J. Dearie, the defendants face a maximum sentence of life imprisonment.  Gregorio Gigliotti faces a mandatory minimum sentence of 15 years in prison, and Angelo Gigliotti faces a mandatory minimum sentence of 20 years in prison.     

The verdict was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Angel M. Melendez, Special Agent-in-Charge, U.S. Immigration and Customs Enforcement (ICE), Homeland Security Investigations (HSI), New York; and Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office.

“This case serves as a powerful example of the impact of international cooperation in combatting criminal organizations whose activities transcend national borders,” stated United States Attorney Capers.  Mr. Capers thanked our law enforcement partners in Italy, including the Prosecutor of the Republic of Reggio Calabria; the Italian National Police (INP), and in particular, the Squadra Mobile of Reggio Calabria and the Servizio Centrale Operativo; the Direzione Centrale per i Servizi Antidroga; and the Direzione Nazionale Antimafia, as well as our law enforcement partners in Costa Rica, including the Organismo de Investigacion Judicial.  Mr. Capers also expressed his gratitude to the U.S. Department of Justice Attaché and the Offices of the HSI and FBI Legal Attaché at the U.S. Embassy in Rome, as well as the FBI Legal Attaché at the U.S. Embassy in Panama City, who coordinated extensive evidence-sharing and coordinated operations.  Mr. Capers also thanked the New York City Police Department and the Drug Enforcement Administration for their assistance in this matter.

“This family run business served more than just pizza to its customers, using store fronts like a pizzeria to import large amounts of cocaine,” said HSI New York Special Agent-in-Charge Melendez.  “Like father like son, both of these defendants will likely be spending the next several years in jail.” 

“This case has sentiments of the famous Pizza Connection case- an organized crime family running a narcotics trafficking ring fronted from a family restaurant in New York.  Today’s guilty verdict matches the past.  We are pleased to say that another organized crime enterprise’s attempt at evading law enforcement has been disrupted.  We thank our law enforcement partners here, in Italy and Costa Rica for their continued cooperation,” stated FBI Assistant Director-in-Charge Rodriguez.           

Evidence presented at trial  - including court-authorized wiretaps and physical surveillance - revealed that Gregorio Gigliotti, together with his wife, owned and operated several businesses in New York City that were used to facilitate their narcotics-trafficking operation, including Cucino Amodo Mio, an Italian restaurant and pizzeria in Corona, Queens, and Fresh Farm Produce Export Corp., an import company.  Their son, Angelo Gigliotti, played the role of Gregorio’s trusted assistant, including handling the drug trafficking operation when Gregorio was out of the country.  In October 2014, law enforcement intercepted a shipment of cassava (a starchy root also referred to as yucca) that was shipped to the United States from Costa Rica and bound for Fresh Farm Produce Export Corp. in New York.  The shipment was found to contain approximately 40 kilograms of cocaine secreted inside cardboard boxes of cassava.  Earlier, Gigliotti’s wife traveled to Costa Rica with more than $360,000 in cash that she delivered to the sources of supply.  In September 2014, Franco Fazio, a relative and Italian national, traveled from Italy to New York and then to Costa Rica to deliver another $170,000 in cash to the sources of supply. 

In December 2014, law enforcement intercepted a second shipment of cassava bound for Fresh Farm Produce Export Corp. in New York that had also been shipped from Costa Rica and seized approximately 15 kilograms of cocaine secreted within the cardboard boxes of the produce.  Prior to the arrival of this shipment of cocaine, Fazio had made two additional trips to Costa Rica to meet with the sources of supply.

The Gigliotti defendants were arrested on March 11, 2015, in New York.  That same day, law enforcement searched Cucino Amodo Mio as well as Gregorio and his wife’s residence.  In the restaurant they seized one 12 gauge shotgun, one loaded .357 magnum Trooper revolver, one loaded .22 caliber Colt pistol, one.38 caliber Charter Arms revolver, one 9 mm Keltec pistol, one .762 Czech pistol, one .38 caliber Derringer that had a defaced serial number, ammunition magazines, loose ammunition, two handgun holsters, brass knuckles, more than $100,000 in cash, and a drug ledger detailing the disbursement of money made on the sale of narcotics.  In the Gigliotti residence, agents recovered a loaded handgun and more than $18,000 in cash.

The charges in the indictment against co-defendants Eleonora Gigliotti and Franco Fazio remain pending.  These charges are merely allegations, and these defendants are presumed innocent unless and until proven guilty. 

The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section.  Assistant United States Attorneys Margaret E. Gandy and Keith D. Edelman are in charge of the prosecution.

The Defendants:

GREGORIO GIGLIOTTI
Age:  60
Queens, New York

ANGELO GIGLIOTTI
Age:  36
Queens, New York

E.D.N.Y. Docket No. 15-CR-204 (S-2) (RJD)

Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a Wasilla man was sentenced by U.S. District Judge Sharon L. Gleason to 95 months in prison for bank robbery.

Wayne Michael Sexton, 45, of Wasilla, Alaska, was indicted by the grand jury in November 2015 for robbing Credit Union 1 located in the Midtown region of Anchorage, on Aug. 7, 2015.  Sexton, who has been in custody for the robbery since Nov. 9, 2015, has been detained in the Anchorage jail without bail. Sexton has a prior conviction for two bank robberies which he committed in 1999.

According to Assistant U.S. Attorney Steven Skrocki, Sexton carried and pointed a revolver at bank personnel, took over the entire bank lobby area, threatened and intimidated bank personnel and pilfered each teller station one at a time.  During the robbery, Sexton obtained more than $17,000 in cash. 

In sentencing Sexton to a term of 95 months, the court noted the impact of the crime on the victim tellers, Sexton’s display of a pistol during the robbery, the threat to the public and Sexton’s inability to avoid a life of crime.  Sexton told the court the robbery was “an act of a coward.” Sexton was also ordered by the court to pay $17,730 to Credit Union 1 in restitution.        

U.S. Attorney Loeffler commends the Federal Bureau of Investigation and the Alaska State Troopers for the investigation of this case.

MARTINSBURG, WEST VIRGINIA – A federal grand jury returned an indictment charging Jonathan Leigh Wienke, 45, of Martinsburg, West Virginia with multiple firearm charges, United States Attorney William J. Ihlenfeld, II, announced.

In June 2016, Wienke allegedly possessed a .22 caliber pistol, a firearm silencer, and materials to manufacture firearm silencers in Berkeley County, WV. Wienke is charged with one count of "Making a Firearm in Violation of the National Firearms Act,” two counts of “Receipt or Possession of Firearms Made in Violation of the National Firearms Act,” two counts of “Receipt or Possession of an Unregistered Firearm,” and two counts of “Receipt or Possession of Firearm Unidentified by Serial Number,”

He faces up to ten years in prison and a fine up to $10,000 for each charge. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
 
Assistant U.S. Attorney Anna Z. Krasinski is handling the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Department of Homeland Security are investigating.
 
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.

PITTSBURGH – A Lawrence County resident has been sentenced in federal court to five years’ imprisonment on his conviction of conspiracy to distribute 28 grams or more of crack cocaine, United States Attorney David J. Hickton announced today.

United States District Judge Nora Barry Fischer imposed the sentence on Melvin Dorsey-Pace, 23, of New Castle, Pa.

According to information presented to the Court, in 2015, the Bureau of Alcohol, Tobacco Firearms and Explosives, the Drug Enforcement Administration, and other agencies joined forces in a long-term wiretap investigation of drug trafficking in New Castle. The investigation revealed that Melvin Dorsey-Pace conspired with others to possess with intent to distribute and distribute crack cocaine which was transported from Buffalo, NY, to the New Castle area for further distribution.

Prior to imposing sentence, Judge Fischer stated that the sentence was not greater than necessary to fulfill the purposes of sentencing.

Assistant United States Attorneys Jonathan B. Ortiz and Tonya Sulia Goodman prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, the New Castle Police Department, and the Lawrence County Drug Task Force for the investigation leading to the successful prosecution of Dorsey-Pace.

PITTSBURGH - A former resident of Penn Hills, Pennsylvania, more recently a resident of Tucker, Georgia, has been sentenced in federal court to 144 months (12 years) imprisonment followed by five years supervised release on his conviction of violating federal narcotics and money laundering laws, United States Attorney David J. Hickton announced today.

Senior United States District Judge Terrence F. McVerry imposed the sentence on Randee Gilliam, 50, of Tucker, Georgia.

According to information presented to the court, the investigation, which began in the fall of 2011 and concluded in mid-March 2012, involved Title III wiretaps on cell phones utilized by Lamont Wright, John Saban, and Dorian Gilliam.

The investigation revealed that Randee Gilliam obtained multi-kilogram quantities of cocaine from a source of supply in Tucson, Arizona, on a regular basis. Randee Gilliam then supplied those kilograms of cocaine to John Saban, a resident of Pittsburgh, on a weekly basis. Randee Gilliam arranged for the kilograms of cocaine to be transported from Tucson, Arizona, to Las Vegas, Nevada, where they were divided up into numerous parcels, hidden inside computer monitors or leather binders, and shipped via UPS or FedEX to several different shipping facilities in the Pittsburgh area. The parcels were then picked up in Pittsburgh by John Saban and his associates.

Saban would then supply nearly all of that cocaine to Lamont Wright, the primary distributor for the organization. Wright, in turn, supplied quantities of this cocaine to countless individuals to include Eric Campbell, Genaro Coleman, and Frederick Ellis.

The drug proceeds collected by Saban from Wright were concealed in protein powder containers and provided to Dorian Gilliam or, on numerous occasions, to Myrene Gilliam. Dorian and Myrene Gilliam then hid the containers in their luggage and flew via commercial airline to Randee Gilliam in Las Vegas to deliver the money. The money was then used by Randee Gilliam to purchase additional quantities of cocaine from the sources of supply in Tucson.

On March 10, 2012, in the midst of the investigation, federal agents, with the assistance of the Monroeville Police, seized $150,000 in drug trafficking proceeds from Randee Gilliam. The cash was seized shortly after it had been provided to Mr. Gilliam by John Saban as payment for multiple kilograms of cocaine that had been supplied to Saban in the days prior.

Assistant United States Attorney Charles A. Eberle prosecuted this case on behalf of the government.

U.S. Attorney Hickton commended the federally administered Organized Crime and Drug Enforcement Task Force (OCDETF) headed by the Drug Enforcement Administration (DEA), which is comprised of members drawn from the Internal Revenue Service Criminal Investigation Division, the Allegheny County District Attorney's Office, and the Pittsburgh Bureau of Police, for the investigation leading to the successful prosecution of Randee Gilliam and his co-conspirators referenced herein. Also assisting in the investigation were the United States Marshals Service, the Penn Hills Police, the Monroeville Police, the Pennsylvania State Police, and the McKees Rocks Police.