ASHLAND, Ky. –  Today, the three United States Attorneys for the Tristate area:  Robert M. Duncan, Jr., of the Eastern District of Kentucky; Michael B. Stuart, of the Southern District of West Virginia; and Benjamin C. Glassman, of the Southern District of Ohio, along with representatives from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), state and local law enforcement and prosecutors, and other law enforcement partners announced the formation of a law enforcement working group, to enhance joint efforts to combat violent crime and drug trafficking in the Kentucky, West Virginia, and Ohio Tri-State area. 

            The working group met for the first time on February 9, 2018, in Ashland.  

            The collaboration is part of the U.S. Department of Justice’s enhanced Project Safe Neighborhoods (PSN) Program, a crime reduction program incorporating long-standing law enforcement partnerships to help produce a long-term, meaningful reduction in violent crime.  PSN is a comprehensive approach to public safety, one that includes prevention, enforcement, and reentry efforts.    

            The working group will focus its efforts on individuals responsible for violent crimes and significant drug trafficking activities in the area.  As part of the collaborative partnership, members of ATF, FBI, DEA, and state and local law enforcement personnel will meet regularly to share intelligence, and to review cases about the most dangerous offenders in the area, including those cases in which the offender’s conduct involves possession or use of a firearm.  The cases will be evaluated to ensure that the most appropriate penalties will be applied to the offenders, whether in federal or state court.  The ultimate goal of the collaboration is to reduce violent crime and access to illegal drugs, and make the Tri-State safer. 

“As Attorney General Sessions has confirmed, combatting violent crime, reducing access to drugs, and partnering with state and local law enforcement efforts are top priorities for the Department of Justice,” said U.S. Attorney Duncan. “By working together to investigate and prosecute the most dangerous individuals in the Tristate, we are sending a clear message that we will protect our communities against those who do them harm.  If you are using firearms to commit acts of violence or illegally selling drugs – especially those that cause an overdose death – you are on notice:  your conduct will not be tolerated; and if it continues, you risk arrest, prosecution, and the forfeiture of your freedom.”   

“The good people of the Tristate and good cities like Huntington, Ashland, Ironton and Portsmouth, have paid too high a price because of violent crime and the drug scourge.  Effective partnerships, sharing resources and intelligence, and aggressive enforcement are the best offense to defeat those that bring chaos and despair to our communities,” said U.S. Attorney Stuart. “Now is the time to take our streets back from violent offenders and drug dealers that cause havoc.  We are committed to working together as true partners in this fight to reduce violent crime, protect our citizens, and put dangerous criminals behind bars for as long as possible.”

“State lines don’t stop criminals from committing violence in our communities, so they shouldn’t stop our law enforcement efforts, either,” U.S. Attorney Glassman said.  “Today’s announcement highlights our dedication to working together across governmental levels and geographic boundaries to get the job done.”

            Today’s announcement follows U.S. Attorney General Sessions’s directives to federal law enforcement and prosecutors, to reinvigorate the Project Safe Neighborhoods Program in an effort to reduce rising violent crime in America, and to combat access to illegal drugs, particularly opiates and opioids. 

– END –

ASHLAND, Ky. –  Today, the three United States Attorneys for the Tri-State area:  Robert M. Duncan, Jr., of the Eastern District of Kentucky; Michael B. Stuart, of the Southern District of West Virginia; and Benjamin C. Glassman, of the Southern District of Ohio, along with representatives from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), state and local law enforcement and prosecutors, and other law enforcement partners announced the formation of a law enforcement working group, to enhance joint efforts to combat violent crime and drug trafficking in the Kentucky, West Virginia, and Ohio Tri-State area.            

The working group met for the first time on February 9, 2018, in Ashland.             

The collaboration is part of the U.S. Department of Justice’s enhanced Project Safe Neighborhoods (PSN) Program, a crime reduction program incorporating long-standing law enforcement partnerships to help produce a long-term, meaningful reduction in violent crime.  PSN is a comprehensive approach to public safety, one that includes prevention, enforcement, and reentry efforts.         

The working group will focus its efforts on individuals responsible for violent crimes and significant drug trafficking activities in the area.  As part of the collaborative partnership, members of ATF, FBI, DEA, and state and local law enforcement personnel will meet regularly to share intelligence, and to review cases about the most dangerous offenders in the area, including those cases in which the offender’s conduct involves possession or use of a firearm.  The cases will be evaluated to ensure that the most appropriate penalties will be applied to the offenders, whether in federal or state court.  The ultimate goal of the collaboration is to reduce violent crime and access to illegal drugs, and make the Tri-State safer. 

“As Attorney General Sessions has confirmed, combatting violent crime, reducing access to drugs, and partnering with state and local law enforcement efforts are top priorities for the Department of Justice,” said U.S. Attorney Duncan. “By working together to investigate and prosecute the most dangerous individuals in the Tri-State, we are sending a clear message that we will protect our communities against those who do them harm.  If you are using firearms to commit acts of violence or illegally selling drugs – especially those that cause an overdose death – you are on notice:  your conduct will not be tolerated; and if it continues, you risk arrest, prosecution, and the forfeiture of your freedom.”   

“The good people of the Tri-State and good cities like Huntington, Ashland, Ironton and Portsmouth, have paid too high a price because of violent crime and the drug scourge.  Effective partnerships, sharing resources and intelligence, and aggressive enforcement are the best offense to defeat those that bring chaos and despair to our communities,” said U.S. Attorney Stuart. “Now is the time to take our streets back from violent offenders and drug dealers that cause havoc.  We are committed to working together as true partners in this fight to reduce violent crime, protect our citizens, and put dangerous criminals behind bars for as long as possible.”

“State lines don’t stop criminals from committing violence in our communities, so they shouldn’t stop our law enforcement efforts, either,” U.S. Attorney Glassman said.  “Today’s announcement highlights our dedication to working together across governmental levels and geographic boundaries to get the job done.”

Today’s announcement follows U.S. Attorney General Sessions’s directives to federal law enforcement and prosecutors, to reinvigorate the Project Safe Neighborhoods Program in an effort to reduce rising violent crime in America, and to combat access to illegal drugs, particularly opiates and opioids. 

DALLAS— Jose Humberto Solis, 39, of Farmers Branch, Texas, was sentenced last week by U.S. District Judge Jane J. Boyle to serve a total of 128 months in federal prison following his guilty pleas in January 2016 and September 2017 to drug offenses as charged in two Northern District of Texas cases, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.

In one case, Solis pleaded guilty to one count of possession with intent to distribute a Schedule I controlled substance (heroin).  He received 128 months on that drug conviction. 

In the subsequent case, Solis pleaded guilty to one count of conspiracy to distribute a Schedule I controlled substance (heroin) and one count of conspiracy to commit money laundering and was sentenced to 128 months in federal prison.  That sentence will run concurrently to the first sentence imposed.

In the first case, between August 31, 2015 and September 1, 2015, Solis possessed and agreed to sell kilogram quantities of heroin. Specifically, on September 1, 2015, Solis traveled to a Target store located in Farmers Branch, Texas, with the specific intent to distribute one kilogram of heroin. After arriving at the Target, Solis was detained by law enforcement agents and the one kilogram of heroin was seized from his vehicle.

According to the plea agreement factual resume filed in the subsequent case, in 2013, agents with the Drug Enforcement Administration began an investigation into heroin sales in the Ninth Ward of New Orleans, Louisiana. Solis was identified asfacilitating the distribution of heroin in the Ninth Ward of New Orleans by supplying heroin he obtained in Dallas, Texas.

On December 19, 2014, a Louisiana State Police Trooper observed a white Honda Civic travelling on Interstate 10 in Jefferson Parish, Louisiana. The Trooper observed the vehicle’s driver swerving in and out of his lane and onto the shoulder of the freeway. The Trooper pulled the vehicle over for illegal use of traffic lanes. Solis was identified as the passenger of the vehicle. The trooper observed both the driver and Solis appearing very nervous. Based on his observations, the Trooper believed that the occupantsmay be engaged in illegal activity. Solis refused to give consent to search and a K-9 unit was requested. The K-9 alerted to narcotics in the passenger compartment. A search of the vehicle revealed approximately one-half kilogram of heroin in a Jack-in-the-Box food bag sitting on the front passenger side floorboard of the vehicle.

The case was investigated by the Drug Enforcement Administration (DEA). 

Assistant U.S. Attorney Rick Calvert was in charge of the prosecution.

# # #

ASHLAND, Ky. –  Today, the three United States Attorneys for the Tri-State area:  Robert M. Duncan, Jr., of the Eastern District of Kentucky; Michael B. Stuart, of the Southern District of West Virginia; and Benjamin C. Glassman, of the Southern District of Ohio, along with representatives from the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Federal Bureau of Investigation (FBI), the Drug Enforcement Administration (DEA), state and local law enforcement and prosecutors, and other law enforcement partners announced the formation of a law enforcement working group, to enhance joint efforts to combat violent crime and drug trafficking in the Kentucky, West Virginia, and Ohio Tri-State area. 

            The working group met for the first time on February 9, 2018, in Ashland.   

            The collaboration is part of the U.S. Department of Justice’s enhanced Project Safe Neighborhoods (PSN) Program, a crime reduction program incorporating long-standing law enforcement partnerships to help produce a long-term, meaningful reduction in violent crime.  PSN is a comprehensive approach to public safety, one that includes prevention, enforcement, and reentry efforts.     

            The working group will focus its efforts on individuals responsible for violent crimes and significant drug trafficking activities in the area.  As part of the collaborative partnership, members of ATF, FBI, DEA, and state and local law enforcement personnel will meet regularly to share intelligence, and to review cases about the most dangerous offenders in the area, including those cases in which the offender’s conduct involves possession or use of a firearm.  The cases will be evaluated to ensure that the most appropriate penalties will be applied to the offenders, whether in federal or state court.  The ultimate goal of the collaboration is to reduce violent crime and access to illegal drugs, and make the Tri-State safer. 

“As Attorney General Sessions has confirmed, combatting violent crime, reducing access to drugs, and partnering with state and local law enforcement efforts are top priorities for the Department of Justice,” said U.S. Attorney Duncan. “By working together to investigate and prosecute the most dangerous individuals in the Tristate, we are sending a clear message that we will protect our communities against those who do them harm.  If you are using firearms to commit acts of violence or illegally selling drugs – especially those that cause an overdose death – you are on notice:  your conduct will not be tolerated; and if it continues, you risk arrest, prosecution, and the forfeiture of your freedom.”   

 “The good people of the Tristate and good cities like Huntington, Ashland, Ironton and Portsmouth, have paid too high a price because of violent crime and the drug scourge.  Effective partnerships, sharing resources and intelligence, and aggressive enforcement are the best offense to defeat those that bring chaos and despair to our communities,” said U.S. Attorney Stuart. “Now is the time to take our streets back from violent offenders and drug dealers that cause havoc.  We are committed to working together as true partners in this fight to reduce violent crime, protect our citizens, and put dangerous criminals behind bars for as long as possible.”

“State lines don’t stop criminals from committing violence in our communities, so they shouldn’t stop our law enforcement efforts, either,” U.S. Attorney Glassman said.  “Today’s announcement highlights our dedication to working together across governmental levels and geographic boundaries to get the job done.”

            Today’s announcement follows U.S. Attorney General Sessions’s directives to federal law enforcement and prosecutors, to reinvigorate the Project Safe Neighborhoods Program in an effort to reduce rising violent crime in America, and to combat access to illegal drugs, particularly opiates and opioids. 

 Spokane– Joseph H. Harrington, United States Attorney for the Eastern District of Washington, announced that Daniel Woolem, age 49, of Moxee, Washington, was sentenced for Conspiracy to Distribute Methamphetamine and for Distribution of Methamphetamine. United States District Judge Stanley A. Bastian sentenced Woolem to a 235-month term of imprisonment, to be followed by five years of court supervision after he is released from federal prison.

According to information disclosed during court proceedings, in July 2015, a task force was created to investigate suspected drug trafficking organizations operating within Yakima County. During the investigation, law enforcement learned that Woolem was selling methamphetamine out of his residence in Moxee. In addition, law enforcement officers learned that Woolem was supplying street level drug dealers with methamphetamine. Law enforcement officers obtained multiple photographs of Woolem meeting with street level drug dealers at his residence. The investigators gathered evidence which resulted in the filing of a criminal Indictment.

On October 26, 2016, a search warrant was executed at the Woolem residence. In addition to other items, law enforcement officers discovered an elaborate security system, multiple firearms, loaded magazines, a suppressor, a bump stock, and drug paraphernalia.

In August, 2017, the case went to trial. Multiple witnesses testified concerning personal observations of Woolem selling methamphetamine at his residence. Several law enforcement officers testified and described the organization. The jury was provided with evidence obtained during the investigation. Woolem testified that he never sold drugs and that he was essentially a Good Samaritan who assisted the less fortunate. Woolem described how he occasionally would bring homeless people from Walmart to his home to bathe, and that he would provide them with food, cigarettes, and other items. On August 24, 2017, the jury found him guilty of all the charges.

At the February 7, 2017 sentencing hearing, Judge Bastian observed that Woolem lied when he testified under oath, which resulted in an obstruction of justice Enhancement. Judge Bastian determined that it was clear Woolem had a leadership role in the distribution of methamphetamine. It was based, in part, on Woolem’s obstruction of justice and leadership role that resulted in the 235-month term of imprisonment and five years of court supervision following release from federal prison.

Joseph H. Harrington stated, “I commend the law enforcement officers who worked on this case. Their seamless partnership resulted in the successful outcome in this matter. The United States Attorney’s Office in the Eastern District of Washington is, and will continue to be, committed to prosecuting aggressively and seeking appropriate punishment for offenders who distribute drugs in this District.”

This investigation was conducted by the Drug Enforcement Administration, the Yakama Nation Police Department, the Yakima County Sheriff’s Office, the Yakima Police Department, the Union Gap Police Department, the Moxee Police Department, the Toppenish Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Department of Homeland Security – Homeland Security Investigations, and the Law Enforcement Against Drugs Task Force. The case was prosecuted by Tom Hanlon, an Assistant United States Attorney for the Eastern District of Washington.

PROVIDENCE, RI –A Providence couple has been indicted by a federal grand jury on charges they allegedly participated in a conspiracy to smuggle significant quantities of cocaine from the Dominican Republic into Rhode Island. The indictment, returned on February 8, 2017, and unsealed by the Court on February 9, charges Victor Lopez, 42, and Johanna Liranzo, 37, with conspiracy to possess with the intent to distribute over 500 grams of cocaine and possession with the intent to distribute over 500 grams of cocaine.

The indictment is announced by United States Attorney Stephen G. Dambruch; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; Shelly A. Binkowski, Inspector in Charge of the U.S. Postal Inspection Service (USPIS), Boston Division; and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations (HSI) for New England.

According to court documents, it is alleged that on January 22, 2018, U.S. Customs and Border Protection (CBP) officers conducting enforcement examinations of U.S. mail shipped from the Dominican Republic through the JFK International Airport Mail Facility discovered a heavily taped express mail parcel addressed to a residence in Providence, R.I. Inside the package, CBP officers discovered two metal cylinders. Agents drilled holes in the cylinders and found them to be tightly packed with a white powdery substance, which tested positive for cocaine.

On January 29, 2018, law enforcement agents and officers from the U.S. Postal Service and the Rhode Island State Police High Intensity Drug Trafficking Area (HIDTA) Task Force established surveillance of the Providence address to which the package was addressed for delivery. They also began surveilling a vehicle seen repeatedly driving around the area of the residence, which appeared to be employing counter-surveillance measures. The package was delivered to the residence by a USPIS Inspector, operating in an undercover capacity. It is alleged that the package was accepted by Johanna Liranzo.

About 90 minutes after the package was delivered, and while members of the HIDTA Task Force were executing a court authorized search of the residence, a separate team of HIDTA Task Force members located and stopped the vehicle seen employing counter-surveillance measures in the area of the residence. The driver of the vehicle, Victor Lopez, and a passenger, Johanna Liranzo, were detained pending the investigation. Liranzo was found to be carrying a key to a storage unit located in Pawtucket.

According to court documents, an HSI agent located the storage unit and obtained surveillance video from the storage facility. The video allegedly showed the same vehicle which was seen employing counter-surveillance measures in the area of the residence arriving and departing from the storage unit to which Lopez and Liranzo had keys. A narcotics detection dog gave a positive response to the presence of narcotics at the storage unit.  A court authorized search of the storage unit by HIDTA Task Force members and USPIS agents resulted in the seizure of three metal cylinders, two of which were found to have drill holes placed in them by CBP officers in New York. Also seized from inside the storage unit were four compressed cellophane packages containing a total of more than a kilogram of cocaine. Law enforcement also seized personal papers belonging to Lopez and Liranzo.

An indictment is merely an allegation 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.

Victor Lopez has been detained in federal custody since his arrest and initial appearance in U.S. District Court on February 6, on a criminal complaint brought in this matter. He is scheduled to be arraigned on the indictment today. Johanna Liranzo was released on unsecured bond at her arraignment on Friday before U.S. District Court Magistrate Judge Patricia A. Sullivan.

The case is being prosecuted by Assistant U.S. Attorney Zechariah Chaffee.

###

#   #   #

COLUMBUS, Ohio – Gerald A. Lawson III, 30, of Warrensville Heights, Ohio, was charged by criminal complaint for allegedly acting as a straw purchaser for Quentin L. Smith, a convicted felon who shot and killed two Westerville Police Officers on February 10.

Lawson was charged with aiding and abetting the possession of a firearm by a prohibited person. He was arrested today by federal agents and is scheduled to appear before U.S. Magistrate Judge Kimberly A. Jolson today at 3:30pm.

Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) announced the charges.

According to the affidavit filed in support of the complaint, when Westerville Police Officers Anthony Morelli and Eric Joering responded to a disturbance call on Cross Wind Drive in Westerville, Smith was armed with a Glock semi-automatic handgun.

As a convicted felon, Smith is prohibited from purchasing or possessing a firearm.

An undisclosed witness told investigators Smith provided Lawson money for the firearm and an extra $100 to compensate Lawson – who knew Smith had been convicted of a felony – for buying the gun for him.

Investigators learned that Lawson and Smith have a long history of friendship. A review of Lawson’s social media account after the incident on February 10 revealed a post by Lawson displaying three photographs of both of the men together. A comment by Lawson associated with the post also referenced the long-standing friendship between the two.

Firearm trace results indicate the Glock firearm was purchased by Lawson in Broadview Heights, Ohio.

Aiding and abetting the possession of a firearm by a prohibited person is a federal crime punishable by up to 10 years in prison.

U.S. Attorney Glassman commended the investigation of this case by ATF, and Assistant United States Attorney Noah R. Litton, who is prosecuting the case.

A criminal complaint merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.

# # #

NEWPORT NEWS, Va. – A Portsmouth woman who faked her own death in connection with an elaborate bank fraud scheme was sentenced today to four years in prison.

According to court documents, Alexandra Hatcher, 50, conspired with her husband, Albert Hatcher Jr., 49, to collect on life insurance policies the two had obtained to insure Hatcher’s life. After traveling to Washington state and changing her legal name in August 2015, Hatcher and her husband submitted false death claims on at least two of these policies. In support of these claims, Hatcher created fake death certificates and published a death notice in the Daily Press. After insurers denied their claims, Hatcher and her husband undertook a cross-country fraud scheme through which they fraudulently obtained at least 20 new and newer-used luxury vehicles by presenting worthless and counterfeit checks and forged documents to car dealerships in several states. Hatcher and her husband retitled these vehicles and then used them as collateral for loans and other vehicles. The two also resold vehicles to other dealerships for cash. Hatcher used the legal name she adopted just prior to faking her death to purchase, title, and resell vehicles in furtherance of the scheme. 

The Hatcher’s each pleaded guilty to conspiracy to commit bank fraud, possessing and uttering a counterfeit security of an organization, and conspiracy to commit mail fraud. Albert Hatcher was sentenced to four years in prison on January 22 for his role in the scheme.

Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Kaitlin C. Gratton prosecuted the case.

A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 4:17-cr-48.

SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced that a former Arkansas state representative pleaded guilty in federal court today to his role in a conspiracy to embezzle more than $4 million from a Springfield, Mo.-based health care charity.

Eddie Wayne Cooper, 51, of Melbourne, Ark., waived his right to a grand jury and pleaded guilty before U.S. Magistrate Judge David P. Rush to a federal information that charges him with one count of conspiracy to embezzle from the nonprofit organization.

By pleading guilty today, Cooper admitted that he conspired with several executives of Preferred Family Healthcare, Inc., a non-profit charity headquartered in Springfield, to use the charity’s funds for unlawful political contributions, for excessive, unreported lobbying and to financially benefit themselves. Cooper received a total of at least $387,501 from a lobbying firm and at least $63,000 in kickbacks as a result of his participation in the conspiracy. Under the terms of today’s plea agreement, Cooper must forfeit his gain from the conspiracy to the government.

Cooper was an Arkansas State Representative from 2006 through January 2011, and a lobbyist registered with the Arkansas Secretary of State beginning Jan. 20, 2011. On April 20, 2009, Cooper was hired to the full-time position of regional director for Preferred Family Healthcare. Cooper’s employment with the charity ended on April 26, 2017. Cooper was a member of the charity’s board of directors from October 2009 through April 2015; he also worked as a lobbyist.

Court documents cite, but do not identify by name, five additional co-conspirators who are not charged in the fraud scheme. Person #1, Person #2 and Person #3 – all residents of Springfield – were executives at the charity. They include the founder and chief financial officer of the charity, the charity’s chief operating officer and the charity’s chief executive officer. Person #4, a resident of Rogers, Ark., served as an executive for company operations in the state of Arkansas. Person #4 also operated two lobbying firms.

According to today’s plea agreement, conspirators engaged in multiple schemes to unlawfully use the charity’s funds to make political contributions, for excessive and unreported lobbying and political advocacy, and to unjustly enrich themselves. For example, conspirators caused personal contributions to elected officials and their political campaigns to be reimbursed by the charity. Such indirect contributions are prohibited by law just as if the payments had been made by the charity directly.

In order to provide a veneer of legitimacy for the kickbacks paid to themselves and others, and to disguise the nature and source of the payments, conspirators caused the payments to be described in the records as business expenses, such as “consulting” and “training” services, and executed sham “consulting agreements.” 

Part of the scheme involved $3 million in payments and kickbacks with a company identified in court documents as Lobbying Firm A, an Arkansas firm owned and operated by Person #4 that also employed Cooper as a lobbyist.

Preferred Family Healthcare paid Lobbying Firm A to provide lobbying and advocacy services. Cooper and others solicited the assistance of elected and appointed officials regarding legislative issues that impacted the charity, in particular matters involving the charity, and in steering grants and other sources of funding to the charity from 2010 through 2017. These funding sources included proceeds from the Arkansas General Improvement Fund.

Preferred Family Healthcare paid Lobbying Firm A more than $3 million from 2010 to 2017. These checks were falsely classified as a consulting expense in the books and records of the charity, when in fact the checks were payments for lobbying services, including direct contact with elected and appointed public officials, and for kickbacks paid to Person #1. From 2010 through 2015, the plea agreement says, Person #4 paid $640,500 in kickbacks to Person #1 by way of checks, and on numerous additional occasions, paid kickbacks in cash.

Part of the scheme also involved nearly $1 million in payments and kickbacks with a Philadelphia, Penn.-based lobbying firm. Donald Andrew Jones, also known as “D.A.” Jones, 62, of Willingboro, N.J., pleaded guilty on Dec. 18, 2017, to his role in the conspiracy.

Jones’s firm, D.A. Jones & Associates, based in Philadelphia, provides political and advocacy services, including consulting, analysis, and public relations. Jones admitted that he was paid approximately $973,807 by Preferred Family Healthcare for illegal lobbying and political activity on behalf of the charity. Two co-conspirators received a total of $264,000 in kickbacks from Jones.

According to court documents, Jones occasionally suggested that charity executives make political contributions to legislators they wanted to influence and/or thank for assistance. From time to time, Jones delivered their contribution checks directly to the legislators in Washington D.C., to increase the impact of the donations.

Between Jan. 12, 2012, and Jan. 17, 2017, Jones paid Person #4 a total of $219,000 in kickbacks. Additionally, at the direction of Person #4, Jones paid Cooper kickbacks of $25,000 on Jan. 8, 2013, and $20,000 on Dec. 26, 2013. On Jan. 18, 2012, Person #4 caused Lobbying Firm A to issue an $18,000 check Cooper, constituting Cooper’s share of Jones’s Jan. 2, 2012, kickback payment.

Under federal statutes, Cooper is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendants will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.

Preferred Family Healthcare & Dayspring Behavioral Health Services

Preferred Family Healthcare and its subsidiaries provide a variety of services to individuals, including mental and behavioral health treatment and counseling, substance abuse treatment and counseling, employment assistance, aid to individuals with developmental disabilities, and medical services. The charity, which reported more than $180 million in total revenue in 2016, received Medicaid reimbursements from the states of Missouri, Arkansas, Kansas and Oklahoma. The federal portion of those payments totaled more than $255 million from 2011 to 2016. The charity also received more than $53 million from the federal government (the Departments of Health and Human Services, Labor, Agriculture, Housing and Urban Development, Veterans Affairs, and Justice) under programs involving grants, contracts, loans, guarantees, insurance and other forms of federal assistance from July 1, 2010, to June 30, 2016.

Originally, and for most of its existence, Preferred Family Healthcare was known as Alternative Opportunities, Inc., which was incorporated in 1991. Alternative Opportunities merged with Preferred Family Healthcare of Kirksville, Mo., on May 1, 2015.

Dayspring Behavioral Health Services was an Arkansas company providing behavioral health services, which was acquired by Alternative Opportunities in 2007 and thereafter continued as a business alias of the charity. Doing business as Dayspring, the charity operated dozens of clinics throughout the state of Arkansas, offering a variety of behavioral health services to individuals, families, and groups.

This case is being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich. It was investigated by IRS-Criminal Investigation, the FBI and the Offices of the Inspectors General from the Departments of Labor, Health and Human Services, Housing and Urban Development, Veterans Affairs, and the FDIC. This is a combined investigation with the Western District of Arkansas, the Eastern District of Arkansas, the Eastern District of Pennsylvania and the Public Integrity Section of the Department of Justice.
 

John H. Durham, United States Attorney for the District of Connecticut, announced that RYAN S. ROZYCKI, 41, of Norwalk, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to six months of imprisonment, followed by two years of supervised release, for tax evasion.  Judge Shea also ordered ROZYCKI to pay a $50,000 fine.

According to court documents and statements made in court, ROZYCKI owns and operates bangthebook.com, a sports gaming information website, as well as other website businesses and rental properties.  For the 2009 though 2014 tax years, ROZYCKI reported more than $1.6 million in gross receipts on his federal income tax returns, but failed to report more than $1.1 million in taxable income, which he had deposited into his personal bank accounts.  ROZYCKI had worked with an accountant to prepare his tax returns, but did not provide his accountant with any information regarding his personal accounts and the business receipts that had been deposited into them.

As a result, ROZYCKI failed to pay more than $300,000 in federal income taxes.

ROZYCKI has paid full restitution of $336,780 to the IRS.  He also will be required to pay interest and penalties.

On September 20, 2017, ROZYCKI pleaded guilty to one count of tax evasion.

Judge Shea ordered ROZYCKI, who is released on a $100,000 bond, to report to prison on April 30, 2018.

This case was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Michael S. McGarry.

Abingdon, VIRGINIA – United States Attorney Rick A. Mountcastle announced the sentencing of two Christiansburg residents who were previously convicted of tax fraud and multiple bankruptcy fraud charges.

Regan Dwayne Reedy, 56, was sentenced last week to 108 months in prison. He was previously convicted of conspiracy to commit tax fraud, making false declarations in a bankruptcy proceeding, concealment of property in a bankruptcy proceeding and false testimony in a bankruptcy proceeding.

Susan Annette Reedy, 50, was sentenced last week to 78 months in prison. She was previously convicted of making false declarations in a bankruptcy proceeding, concealment of property in a bankruptcy proceeding and false testimony in a bankruptcy proceeding.

According to evidence presented to the jury during the trial of Reagan and Susan Reedy by Assistant United States Attorney Joseph W. H. Mott, Reagan Reedy filed a number of fraudulent tax returns for individuals claiming refunds. The returns claimed excessive federal withholdings that resulted in excessive claims for tax refunds totaling over $1 million. A majority of the fraudulent returns were detected before refunds were issued, however, one refund in the amount of $156,191 was issued.

In addition to the tax return fraud, Regan Reedy and Susan Reedy filed three Chapter 7 bankruptcies seeking to discharge debts to private and governmental creditors.  In filings in 2012 and again in 2014, Regan and Susan Reedy omitted assets from their bankruptcy schedules and concealed assets from the bankruptcy trustee. Those assets included bank accounts, real estate, and vehicles they had placed in nominee names. At a creditors meeting in December 2014, both falsely testified regarding their means of support and the extent of their assets.  During their sentencing hearings last week, Regan and Susan Reedy were each held responsible for concealing over $1.8 million in assets during the course of the bankruptcies.

The investigation of the case was conducted by the Internal Revenue Service-Criminal Investigations, the Federal Bureau of Investigation, and the Office of the United States Trustee.

U.S. Attorney Duane A. Evans announced that ROT VAN NGUYEN, a/k/a “Minh Dung,” a/k/a “Minh Dung Duong,” age 56, of San Jose, California, was charged today with one count of failure to register as a sex offender under the federal Sex Offender Registration and Notification Act (SORNA).

According to court documents, NGUYEN was arrested in December 2017 in New Orleans after having departed California in November 2015.  After traveling to New Orleans, NGUYEN failed to register with local authorities as required by SORNA.  If convicted, NGUYEN faces a maximum term of 10 years in prison and a $250,000.00 fine.  He also would have to be sentenced to a term of supervised release of between 5 years and life.

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

U.S. Attorney Evans praised the work of the United States Marshal’s Service and the Louisiana State Police in this matter.  He extended his thanks to California Division of Parole Operations, the Orleans Parish Sheriff’s Office, and the Orleans Parish District Attorney’s Office for their assistance.  Assistant United States Attorney Matthew Payne is in charge of prosecution.

Shannon Maurice Johnson used a third party to illegally purchase guns

DES MOINES, Iowa – On February 12, 2018, Shannon Maurice Johnson, age 32, of Des Moines, Iowa, appeared before United States District Court Chief Judge John A. Jarvey and was sentenced to 180 months in prison following his plea of guilty to a felon in possession of firearms charge.

According to the plea agreement, Johnson admitted he utilized a third-party, his co-defendant Carolett Leyva, to purchase firearms for him from Des Moines area gun shops, as he was unable to do so because of a prior felony conviction. Defendant was found in possession of one of these firearms during a traffic stop by law enforcement in Illinois in February of 2017. Carolett Leyva is scheduled to be sentenced by Chief Judge Jarvey on February 20, 2018.

This investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Illinois State Patrol, Mid Iowa Narcotics Task Force, and Iowa Division of Narcotics Enforcement. The case was prosecuted by the United States Attorney's Office for the Southern District of Iowa.

       Montgomery, Alabama – On Thursday, February 8, 2018, Michael Graham Lowe, 25, of Prattville, Alabama, was found guilty by a federal jury of sex trafficking of a minor and conspiracy to commit sex trafficking, announced United States Attorney Louis V. Franklin Sr.

       Previously, a federal grand jury returned an indictment against Lowe and his co-defendant, Joshua David Rose, after hearing evidence that the two recruited, enticed, and transported a minor victim knowing that the victim was under the age of 18 years and would be engaging in a commercial sex act.  Joshua Rose, 29, also from Prattville, pled guilty to sex trafficking of a minor in August 2017.

       According to evidence presented at the four-day trial, Lowe was friends with the 17-year-old minor victim and in May 2016, he introduced the victim to co-defendant Rose at a motel in Montgomery.  On May 24 and 25, 2016, Rose took photographs of the victim and placed an ad on the classified advertising website Backpage.com.  Lowe and Rose transported the minor victim to perform commercial sex acts in Montgomery and the surrounding areas and stood guard outside during the acts.  Rose and Lowe used the money earned by the minor victim to purchase illegal narcotics.  On May 26, 2016, the victim became upset and refused to perform further commercial sex acts.  Lowe then transported the victim from the motel leaving her at a local residence.  After hearing the evidence presented at trial, the jury found Lowe guilty of both counts in the federal indictment.

       For the sex trafficking of a minor charge, Lowe faces a minimum of 10 years and a maximum of life in prison.  For the conspiracy to commit sex trafficking, Lowe faces up to life in prison.  Lowe is in the custody of the United States Marshals Service pending a sentencing hearing, which has not yet been scheduled.

       “These human traffickers prostituted a child in order to have the money to feed their drug habit,” stated U.S. Attorney Franklin.  “We will not allow the children of this District to be preyed-upon, prostituted and used by predators.  This office will continue to use all resources necessary to take these criminals off the streets and ensure the safety of our children.”  

       “The Prattville Police Department is very thankful for the working relationship we have with the U.S Attorney’s Office and all the agencies involved in this case,” stated Prattville Police Chief Mark Thompson.  “This should send a strong message to the criminal element committing these types of crime that we will find them and put them away. We are very proud of our Criminal Intelligent Unit for the effort put into this case. It shows that the Prattville PD is proactive and we will continue to develop better ways to combat crime.” 

       “Human trafficking is a horrific crime that traps its victims in a life of misery and abuse,” said Attorney General Steve Marshall. “This conviction is the result of a long and painstaking investigation by agents and officers who cared deeply about the harm being caused to the young victim, and were determined to stop this from happening to her and to others. I am thankful for the diligence of the Prattville Police Department, which initiated this case, working with agents of the Alabama Attorney General’s Office and the U.S. Department of Homeland Security and assisted by the Montgomery Police Department. I also want to thank the U.S. Attorney’s Office for its successful prosecution to bring this criminal to justice.  As Alabama’s Attorney General, I am committed to continue this kind of cooperative and dedicated teamwork among agencies, which is the key to making our state a safer place.”

       “HSI will tirelessly work to investigate and bring to justice anyone who thinks they can get away with preying upon our children for their sexual gratification,” said Homeland Security Investigations Acting Special Agent in Charge Thomas M. Annello. “This case highlights the exceptional commitment and devotion of the men and women who pursue the perpetrators of these depraved crimes every day.”

       This case was jointly investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Prattville Police Department, and the Alabama Attorney General’s Office, with assistance from the United States Marshal’s Service and Montgomery Police Department. 

       The case was prosecuted by Assistant U.S. Attorney Hollie Worley Reed of the Middle District of Alabama and Trial Attorney Leslie Williams Fisher of the Criminal Division’s Child Exploitation and Obscenity Section.

Tampa, Florida – United States Attorney Maria Chapa Lopez announces that a jury has found Akbar Fard (53, formerly of Tampa) guilty of wire fraud. He faces a maximum penalty of 20 years in federal prison; his sentencing hearing is scheduled for May 24, 2018.

Fard was indicted on March 22, 2017.

According to testimony and evidence presented at trial, Fard defrauded the Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR) programs of the National Aeronautics and Space Administration (NASA), the Missile Defense Agency, and the United States Navy out of approximately $2.1 million. The SBIR/STTR programs support scientific excellence and technological innovation through the investment of federal research funds. Fard thwarted the fundamental purpose of these programs by using the funds to support his lifestyle instead of purchasing research materials.

“The NASA Office of Inspector General will continue to aggressively investigate those who undermine and defraud NASA programs and operations,” said Special Agent in Charge John Corbett, Central Field Office. “This jury verdict serves as a staunch reminder that such conduct will not be tolerated. The NASA OIG applauds the efforts of the entire investigative and prosecution team during this multi-year investigation, and we look forward to our continued cooperation with our law enforcement partners in the pursuit of justice.”

“This verdict demonstrates the effectiveness of investigations by the Defense Criminal Investigative Service and our law enforcement partners to ensure that federal contractors do not defraud the U.S. Government and waste precious taxpayer dollars. DCIS protects the integrity of DoD programs by rooting out fraud, waste, and abuse that negatively impacts critical programs,” said Special Agent in Charge John F. Khin, Southeast Field Office.

“The Naval Criminal Investigative Service works tirelessly to identify individuals who attempt to defraud United States Naval and Marine Corps forces around the globe. This verdict reflects a joint effort with our partner agencies and the Department of Justice to bring accountability to those individuals who waste taxpayer dollars,” said Special Agent in Charge Michael Wiest, NCIS Southeast Field Office.

This case was investigated by NASA’s Office of the Inspector General, the Defense Criminal Investigative Service, and the Naval Criminal Investigative Service. It is being prosecuted by Assistant United States Attorney Thomas N. Palermo.

Columbia, South Carolina –------- United States Attorney Beth Drake announced today that Jeffery Michael Patterson entered a plea of guilty on charges of making a false statement to federal agents.  Patterson faces a maximum sentence of up to five years in federal prison and a fine of up to $250,000.  Patterson will be sentenced by United States District Judge Timothy M. Cain after the completion of a presentence investigation.

The facts presented at the guilty plea hearing established that Patterson was employed at a local FAA approved airplane repair and service facility.  During the course of a routine evaluation of employees, Patterson represented that he had FAA certifications to do certain work on airplanes.  The repair facility tried to verify this information through the FAA and was advised that Patterson held none of the certifications that he claimed to have.  The matter was then referred to the Inspector General (IG) of the Federal Department of Transportation for investigation.  IG Special Agents interviewed Patterson, and he made false statements to them to include the false statement that he had the FAA certifications but that they were under other names because his name had been changed numerous times by the Treasury department to protect his family from drug dealers who had been investigated by his father while working as a drug enforcement officer.  At the guilty plea hearing, Patterson admitted that this story was bogus.

The case was prosecuted by Assistant United States Attorney David C. Stephens of the Greenville Office.
 

#####
 

Jacksonville, Florida – United States Attorney Maria Chapa Lopez announces that Bobby L. Ratcliffe (59) and Wanda F. Ratcliffe (55), both of Reddick, Florida, have pleaded guilty to conspiracy to structure financial transactions to evade reporting requirements. Each faces up to five years in federal prison; a sentencing date has not yet been set.

According to the plea agreement, Bobby and Wanda Ratcliffe structured cash deposits and withdrawals into and out of bank accounts that they controlled. The couple often traveled to Jacksonville, Orlando, and Tampa to conduct the transactions. To avoid Currency Transaction Reports, which are required for currency transactions exceeding $10,000 in a single day, they made individual deposits of less than $10,000 at different credit unions, or branches of the same credit union, on the same day or over consecutive days.

In addition to structuring cash deposits, the Ratcliffes made structured cash withdrawals by writing and cashing numerous personal checks made payable to themselves. Between August 2014 and July 2015, they wrote more than 1,750 checks to themselves for cash. Although the aggregate amount of withdrawals exceeded $10,000, no individual check was greater than $10,000 on a single day. In less than a year, the couple structured more than $4.5 million. 

This case was investigated by the U.S. Treasury Office of Inspector General, the Internal Revenue Service – Criminal Investigation, the Federal Insurance Deposit Corporation – Office of Inspector General, the Social Security Administriation – Office of Inspector General, the U.S. Secret Service, and the Marion County Sheriff’s Office. It is being prosecuted by Assistant United States Attorneys Frank Talbot and Bonnie Glober.

RALEIGH– The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that last Friday evening, BAKARI MAURICE TEACHEY aka “Double R”, a Rocky Mount resident, was convicted in a three-day jury trial before Senior United States District Judge W. Earl Britt.  The jury found TEACHEY guilty of 3-counts of Possession of a Firearm and/or Ammunition by a Convicted Felon.

The evidence at trial showed that TEACHEY pistol-whipped a man on May 9, 2017, at his estranged wife’s home, and the victim received medical treatment.  Two days later, TEACHEY was found in possession of a stolen Ruger 9 mm pistol during a traffic stop by the Rocky Mount Police Department.  On August 4, 2017, Rocky Mount Police Officers executed a search warrant on the home that TEACHEY shared with his fiancée.  The officers located numerous firearms and ammunition including a Smith and Wesson M&P 15 rifle, a Century Arms 7.62x39 rifle, a Glock 9mm pistol with an extended magazine, a .357 Taurus revolver, and assorted ammunition including ammunition for the caliber of firearms recovered and other ammunition.  TEACHEY is scheduled to be sentenced on June 4, 2018.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone.   Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority.   In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.

The investigation of this case was conducted by the Rocky Mount Police Department, the Cumberland County Sheriff’s Office, the North Carolina State Crime Laboratory, and the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF).  Assistant United States Attorney S. Katherine Burnette represented the government in this case. 

Columbia, South Carolina---- United States Attorney Beth Drake stated today that Kenneth Wayne Richardson, age 36, of Moncks Corner, South Carolina was sentenced in federal court in Charleston, South Carolina, for Possession of Child Pornography involving Prepubescent Minors, a violation of 18 U.S.C. § 2252A(a)(5)(B).  United States District Judge David C. Norton, of Charleston, sentenced Richardson to 210 months (17.5 years), $8,500 restitution, and supervised release for life.

Evidence presented at the change of plea hearing established that on two different occasions Richardson posted web-links containing child pornography videos to internet chat rooms. Law enforcement agents traced the postings to internet protocol (IP) addresses associated with Richardson. Agents executed a search warrant at Richardson’s residence and seized a computer tablet belonging to Richardson that contained multiple images of child pornography. Richardson admitted that he possessed child pornography, including on his internet “cloud” account. He also admitted to posting web-links to chat rooms. Agents also executed a search warrant on Richardson’s internet “cloud” account and discovered over 4,000 images and 3,000 videos containing child pornography. These images and videos included adults engaged in sexual acts with prepubescent minors as well as sadistic and masochistic conduct.

The case was investigated by agents of ICE-Homeland Security Investigations. The Berkeley County Sheriff’s Office assisted in the execution of the residential search warrant. Assistant United States Attorney Dean H. Secor of the Charleston office 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 click on the tab "resources."

#####