GREENEVILLE, Tenn. – On March 14, 2018, Dr. Abdelrahman Mohamed, 64, and Cecilia Manacsa, 59, both of Morristown, Tennessee, were sentenced by the Honorable J. Ronnie Greer, U.S. District Judge, to serve 36 months and 16 months respectively in federal prison.  In addition to his prison sentence, Mohamed also paid $730,000 in restitution.

Mohamed and Manacsa both pleaded guilty in September 2017, to an 11-count information charging them with one count of conspiracy to commit health care fraud and 10 counts of health care fraud. 

Mohamed was the owner and operator of Hamblen Neuroscience Center (HNC), a neurology and pain management facility located in Morristown, Tennessee.  Manacsa, his wife, worked at HNC as a supervisor of various employees, including the employee responsible for submitting bills to Medicare and Medicaid (known as TennCare in the state of Tennessee). A detailed account of their offenses is included in the information and plea agreements on file with the U.S. District Court.

Mohamed, who was the only physician on staff at HNC, provided medical treatment to a variety of patients, most of whom sought treatment for chronic pain and had health insurance provided by TennCare or Medicare.  Between January 2012 and September 2016 Mohamed and Manacsa developed a scheme to schedule far more patients per day than could be attended to by Mohamed.  On average, they scheduled between 40 and 60 pain management patients per day, during the estimated six-hour period that Mohamed worked.  To deal with the high volume, on many occasions staff members were instructed to line up the patients in the hallway outside of Mohamed's office, escort the first patient into the office for a one to two minute open-door meeting, then hand Mohamed a partially completed prescription for an opiate pain management medication, which he signed and gave to the patient. This process was repeated until all waiting patients had received a prescription for a controlled substance.  Each patient was then scheduled for another appointment the following month at which time the process was repeated. 

Mohamed admitted that during the fraud he issued thousands of prescriptions for opiate controlled substances and frequently did so on a recurring monthly basis, often for years.  He also admitted that when he issued such prescriptions he was doing so outside of the scope of ordinary medical practice. 

After these visits, Mohamed and Manacsa instructed HNC staff members to submit fraudulent bills to TennCare and Medicare claiming that they were owed approximately $1,538,000 for services they had not actually provided to these patients.  This fraud resulted in Medicare and TennCare paying approximately $733,000 to HNC.

“This case sends a clear message to physicians and other health care providers in the Eastern District of Tennessee that investigating and prosecuting healthcare fraud related to prescription opioids is a top priority for the Department of Justice as well as the U.S. Attorney’s Office,” said J. Douglas Overbey, U.S. Attorney for the Eastern District of Tennessee.  “Our district’s participation in the Opioid Fraud and Abuse Detection Unit will provide us with the resources necessary to effectively investigate and prosecute medical providers, such as Mohamed and Manacsa, who are contributing to this epidemic by unlawfully diverting or dispensing opioids outside the scope of acceptable professional practice,” added U.S. Attorney Overbey.

“These defendants enriched themselves at the expense of taxpayers by defrauding Medicare and TennCare,” said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General. “Their actions risked the health and safety of patients by prescribing opioids without a comprehensive physical exam.  This sentence sends a strong message

that this type of behavior will be dealt with seriously,” added Jackson.

This case was investigated by the Tennessee Bureau of Investigation and the Department of Health and Human Services – Office of the Inspector General. Assistance was provided by the Tennessee Department of Health as well as District Attorney General Dan Armstrong and the District Attorney’s Office for the Third Judicial District.  Assistant U.S. Attorney T.J. Harker represented the United States.

###

CAMDEN, N.J. – A Riverside, California, man was sentenced today to 36 months in prison for his role in a conspiracy to steal 94,000 credit and debit cards from customers at approximately 80 Michaels’ Stores and use that information to make fraudulent withdrawals from the customers’ bank accounts, U.S. Attorney Craig Carpenito announced.

Angel Angulo, 28, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to Count One and Count Two of an indictment charging him with conspiracy to commit bank fraud and aggravated identity theft. Judge Rodriguez imposed the sentence today in Camden federal court.

According to documents filed in this case and statements made in court:

The conspirators installed devices that acquired customers’ bank account and personal identification number (PIN) information on point of sale (POS) terminals at stores operated by Michaels. The stolen account information was used to produce counterfeit bank cards, which were used with the stolen PINs to withdraw funds from the compromised bank accounts.

The conspirators allegedly replaced 88 POS terminals in 80 different stores operated by Michaels across 19 states, including New Jersey, with counterfeit POS devices. Each counterfeit device was equipped with wireless technology, which the conspirators used to retrieve the stolen information. From February 2011 to April 2011, conspirators stole approximately 94,000 debit and credit card account numbers.

From April 2011 to May 2011, Angulo, Crystal Banuelos, and others obtained counterfeit cards with the corresponding PIN numbers written on them from other conspirators. They used the cards and PIN numbers to withdraw money using ATMs from hundreds of bank accounts. On May 14, 2011, Angulo and Banuelos possessed 179 counterfeit cards in New Jersey.

In addition to the prison term, Judge Rodriguez sentenced Angulo to five years of supervised release and ordered him to pay restitution of $480,300.

Banuelos previously pleaded guilty to her role in the scheme and is scheduled to be sentenced Sept. 5, 2018.

U.S. Attorney Carpenito credited special agents of the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt, with the investigation leading to today’s sentencing.

The government is represented by Assistant U.S. Attorney Daniel Shapiro of the Computer Hacking and Intellectual Property Section of the U.S. Attorney’s Office Economic Crimes Unit.

Defense counsel: Lisa Lewis Esq., Assistant Federal Public Defender, Camden

HUNTSVILLE – Two top U.S. Department of Justice officials and the First Lady of Arkansas will open the 34^th International Symposium on Child Abuse presented by the National Children’s Advocacy Center March 19-22 at the Von Braun Center.

The annual symposium is a premiere conference that provides expert training and numerous networking opportunities to professionals in the child maltreatment field, and is one of the few conferences that addresses all aspects of child maltreatment, including physical abuse, sexual abuse, neglect, exposure to violence, poly-victimization, exploitation, intervention, trafficking and prevention. The NCAC will bring together approximately 1,400 law enforcement, medical, prosecution, victim advocacy, child protection and mental health professionals, and youth-serving organizations from 48 states, Washington, D.C., and 12 countries for the symposium.

Acting Associate Attorney General Jesse Panuccio, Principal Deputy Assistant Attorney General Alan Hanson and Arkansas’ First Lady Susan Hutchinson will speak at the symposium’s opening session Tuesday, March 20, 8:30 a.m. to 10 a.m.

NCAC Executive Director Chris Newlin said, “We are honored to have officials from the U.S. Department of Justice, along with First Lady Hutchinson of Arkansas, with us to welcome participants from throughout the United States and the world and provide an inspirational message about the impact and value of the work being done at Children’s Advocacy Centers. The Department of Justice has long supported the multidisciplinary work of Children’s Advocacy Centers in responding to child abuse.”        

“Since its inception in 1985, the NCAC has been a model in caring for abused children and in coordinating the work of the numerous agencies that treat and care for those courageous children with the agencies that investigate and prosecute cases involving them,” Town said. “The NCAC and its international symposium have trained thousands of professionals in the best methods of caring for the children and investigating their cases. The Justice Department has awarded valuable grants to support the NCAC’s important work, and I welcome Acting Associate Attorney General Panuccio and Principal Deputy Assistant Attorney General Hanson to Alabama to address the symposium and underscore the invaluable service the NCAC provides to children and communities across our country,” he said.  

Hutchinson, a former schoolteacher, has a lifetime of experience advocating for and working with children. Before becoming Arkansas’ first lady, Hutchinson spent several years on the board of the Children’s Advocacy Center of Benton County, one of 16 non-profit Children’s Advocacy Centers in Arkansas that work with abused children.

Panuccio is the third-ranking officer in the Department of Justice, overseeing more than a dozen department components, including the Antitrust, Civil, Civil Rights, Environment and Natural Resources, and Tax Divisions, and the Office of Justice Programs and the Office on Violence Against Women.

Hanson, who worked as general counsel, chief of staff and legislative director for U.S. Sen. Richard Shelby, brings more than 17 years of congressional policy, management, appropriations and political experience to the Justice Department.

The three-day international gathering will offer more than 160 workshops with tracks designed specifically for administration, child protective services, forensic interviewing, human trafficking/sexual exploitation, law enforcement, medical, mental health/treatment, prevention, prosecution/legal, secondary traumatic stress, victim advocacy and youth-serving organization.

For information or to arrange an interview with NCAC Executive Director Newlin or a speaker, contact Pam Clasgens, NCAC Community Awareness and Prevention Director, 256-327-3761 (direct line), or 256-533-5437 (main line) or pclasgens@nationalcac.org.

About the NCAC: The NCAC revolutionized the response to child sexual abuse in the U.S. There are currently more than 1,000 Children’s Advocacy Centers in the U.S. and 33 other countries are based on the model developed in Huntsville, Ala., in 1985. The NCAC provides services to children and families in the Huntsville-Madison County area, and is a national and international leader in training for professionals responsible for the protection of children.

The NCAC models, promotes and delivers excellence in child abuse response and prevention through service, education and leadership. For information, contact 256-533-5437 or visit www.nationalcac.org.

###

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that EDWIN CABAN, a former Protective Security Officer, pleaded guilty yesterday to creating a false incident report in which CABAN intentionally omitted the fact that CABAN had repeatedly punched a member of the public at a branch of the Social Security Administration (“SSA”), despite knowing that this omission was unlawful. CABAN pled guilty to a Superseding Indictment before U.S. District Court Judge Lorna G. Schofield, who will impose sentencing.

Manhattan U.S. Attorney Geoffrey S. Berman said:  “Protective Security Officers are charged with protecting those who enter federal facilities.  But, as he admitted in court, Protective Security Officer Edwin Caban repeatedly punched a visitor and then filed a false incident report omitting that fact.  Caban betrayed the public trust and violated the law.”

According to the allegations in the Superseding Indictment, to which CABAN pled guilty today as to Count Two, and the related Complaint in which he was originally charged on April 24, 2017:

The SSA has multiple branch offices located throughout New York City, where claimants may request SSA services and make inquiries regarding social security benefits and Social Security cards.  One branch office is located at 123 William Street (the “123 William Office”), in Manhattan.  The 123 William Office is staffed by two Protective Security Officers, who are employees of a contractor for the Federal Protective Service of the United States Department of Homeland Security.  The 123 William Office has several surveillance cameras, which captured the incident.

The Incident

At approximately 12:37 p.m. on June 22, 2016, the victim (“Victim-1”) entered the 123 William Office, wheeling an elderly gentleman in a wheelchair into the reception area.  CABAN attempted to move the wheelchair, which Victim-1 asked him not to do.  After CABAN stepped away, Victim-1 withdrew a cellphone from his pocket.  CABAN then walked back to Victim-1 and repeatedly accused him of taking a picture with his cellphone, which Victim-1 denied.

As recorded by security camera footage obtained from the SSA, CABAN at this point reached out toward Victim-1, and Victim-1 put both of his hands up in the air, with his palms facing CABAN.  CABAN then took hold of Victim-1’s waist with both hands, pivoted, turned Victim-1 around, and then pushed Victim-1 backward toward the elevator bank.  CABAN continued to push Victim-1 backward, toward a desk adjacent to the opening to the elevator bank, until Victim-1 fell backward over the desk.  CABAN then took hold of Victim-1’s arms, and, as Victim-1 struggled to shake free of CABAN’s hold, CABAN took Victim-1 into the elevator bank.

After a brief struggle in the elevator bank, CABAN pushed Victim-1 up against a wall. Placing his left hand at the base of Victim-1’s throat, CABAN pinned Victim-1 against the wall. As Victim-1 stood there, not moving, with his hands up in the air in a gesture of surrender, CABAN punched Victim-1 four times in the chest and ribs.  Victim-1 collapsed forward, and CABAN continued to hold on to Victim-1 as Victim-1 remained bent forward, clutching his abdomen.

At this point, CABAN’s partner, another protective security officer (“PSO-1”), arrived in the elevator bank from a back area of the office and approached CABAN and Victim-1.  CABAN let go of Victim-1, who remained against the wall, not moving.  As PSO-1 stood a few feet away, CABAN punched Victim-1 again in the chest.  After several minutes passed, CABAN and PSO-1 escorted Victim-1 out of the elevator bank and back into the main floor area, back toward where the man in the wheelchair was waiting.

As a result of the attack, Victim-1 suffered bodily injuries, including fractured ribs, bruising, and physical pain.

Shortly after the incident, Victim-1 called 911 and two New York City Police Department officers responded.  One of these officers (“Officer-1”) entered the 123 William Office and spoke with CABAN about Victim-1’s allegations.  CABAN stated to Officer-1 that he put his hands on Victim-1 to remove him from the office, at which point Victim-1 “flopped” onto the desk, knocking things over.  CABAN denied touching Victim-1 after that point and denied entering the elevator bank during the incident.

That same afternoon, CABAN placed a telephone call to an FPS reporting center, in which CABAN made an oral report about the incident.  CABAN stated that there was “a disruptive client in here that needed to be escorted out;” he did not disclose that he struck Victim-1.

CABAN wrote and submitted a Security Incident Report.  In that report, CABAN stated that, as he “attempted to guide [Victim-1] out” of the office, Victim-1 “yelled and jumped onto the security desk flairing [sic] arms and legs knocking equipment around.”  CABAN then stated that he placed Victim-1 in an “arm bar” and “took him by the elevator banks,” that Victim-1 “tried to break [his] hold” at which point CABAN “grabbed him under his chin” and “mainta[ined] a hold of his arm.”  CABAN stated that PSO-1 then arrived.  CABAN reported no other use of force against Victim-1.  In particular, nowhere in the report did CABAN state that he struck Victim-1.

*                      *                      *

CABAN, 56, of Astoria, New York, pled guilty to one count of filing a false form, which carries a maximum sentence of five years in prison.  The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.

Mr. Berman praised the investigative work of the FPS. 

This case is being handled by the Office’s Public Corruption and Civil Rights Units.  Assistant U.S. Attorneys Alison Moe and Jacob Lillywhite are in charge of the prosecution.  

Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan has sentenced Christopher Loran Bentley (31, Jacksonville) to 10 years in federal prison, followed by 5 years of supervised release, for possessing a pistol after having been convicted of a felony, and for possessing with intent to distribute crack cocaine and heroin. He pleaded guilty to the offenses on October 19, 2017.

According to court documents, Bentley possessed a stolen firearm outside a house in Jacksonville in April 2017. He was encountered by Jacksonville Sheriff’s Office patrol officers responding to investigate activities at the house. The officers observed Bentley sitting in his parked truck with a bag of marijuana in plain view. The officers ordered Bentley out of the truck, but he resisted and tried to escape. While removing Bentley from the truck, a bag of drugs, including powder cocaine, crack cocaine, and heroin fell from his lap, onto the ground. The firearm was sitting in the driver’s seat, where Bentley had been sitting. Bentley had been previously convicted of selling cocaine.

At sentencing, multiple witnesses’ testimony established that Bentley had been involved in pimping women in the Philips Highway area of Jacksonville for several years. Bentley controlled his sex trafficking victims through violence, threats of violence, coercion, and mental and emotional manipulation. On one occasion, Bentley threatened to bash one of his victims’ teeth in using a gun, broke his hand punching the victim in the head, then forced his victim to pull down her pants so that he could beat her with a pipe. Testimony also established that Bentley had used his victims’ drug addictions to coerce them into prostitution. One of Bentley’s victims died of an overdose in 2016, after obtaining fentanyl and cocaine from him.  On another occasion, Bentley fired his gun at another individual who had been trying to collect a debt from one of the women prostituted by Bentley.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jacksonville Sheriff’s Office, and the Florida Department of Law Enforcement, with assistance from the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Laura Cofer Taylor.

This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In October 2017, Attorney General Jeff Sessions announced the reinvigoration of PSN and directed all U.S. Attorneys’ Offices to develop districtwide crime reduction strategies, incorporating the lessons learned since the program’s inception in 2001. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.

United States Attorney Beth Drake stated today that a Federal Grand Jury in Greenville, South Carolina, returned Indictments against the following:

McCormick County Woman Indicted for Bank Embezzlement.  Amy June Schaufelberger, a/k/a Amy Schaufelberger Brown, age 31, of Parksville, South Carolina, was charged in a one-count Indictment with bank embezzlement, a violation of Title 18, United States Code, Section 656.  The maximum penalty Schaufelberger could receive is a fine of $1,000,000.00 and/or imprisonment of 30 years.  The case was investigated by agents of the United States Secret Service and is assigned to Assistant United States Attorney David C. Stephens of the Greenville office for prosecution.

Illegal Alien Indicted on Reentry of a Removed Alien and Felon in Possession of a Firearm.  Luis Cenobio Barrera, a/k/a “Daniel Munguia Casanova”, a/k/a “Felipe Molina Garcia”, age 24, of Greenville, South Carolina, was charged in a two-count indictment.  Luis Cenobio Barrera was charged with Reentry of Removed Alien, a violation of Title 8, United States Code, Section §1326(a), and Felon in Possession of a Firearm, a violation of Title 18, United States Code, Section §922(g)(1).  The maximum penalty Barrera could receive is 20 years imprisonment and a maximum fine of $250,000.  The case was investigated by agents of ICE-Homeland Security Investigations and is assigned to Assistant United States Attorney William J. Watkins, Jr., of the Greenville office for prosecution.

Illegal Aliens Indicted for False Use of Social Security Numbers.Juana Farfan-Garcia, a/k/a “MYP”, of Guatemala, was charged in a two-count indictment. Juana Farfan-Garcia was charged with Reentry of Removed Alien, a violation of Title 8, United States Code, Section §1326(a), and False Use of a Social Security Number, a violation of Title 42, United States Code, Section § 408. The maximum penalty Farfan-Garcia could receive is 2 years imprisonment and a maximum fine of $250,000, for Illegal Re-entry and 5 years imprisonment and a maximum fine of $250,000, for False Use of a Social Security Number.  The case was investigated by agents of ICE-Homeland Security Investigations and is assigned to Assistant United States Attorney Max Cauthen, of the Greenville office for prosecution.

Martina Guzman-Vasquez, a/k/a “CIRM”, of Guatemala, was charged in a two-count indictment.  Martina Guzman-Vasquez was charged with False Use of a Social Security Number, a violation of Title 42, United States Code, Section § 408, and False claim to be a citizen of the United States, a violation of Title 18, United States Code, Section § 911. The maximum penalty Guzman-Vasquez could receive is 5 years imprisonment and a maximum fine of $250,000, for False Use of a Social Security Number, and 3 years imprisonment and a maximum fine of $250,000, for False claim to be a citizen of the United States. The case was investigated by agents of ICE-Homeland Security Investigations and is assigned to Assistant United States Attorney Max Cauthen, of the Greenville office for prosecution.

Maria Barillas-Orozco, a/k/a “MRG”, locally from Saluda, South Carolina, was charged in a one-count indictment with False Use of a Social Security Number, a violation of Title 42, United States Code, Section § 408. The maximum penalty Barillas-Orozco could receive is 5 years imprisonment and a maximum fine of $250,000, for False Use of a Social Security Number. The case was investigated by agents of ICE-Homeland Security Investigations and is assigned to Assistant United States Attorney Max Cauthen, of the Greenville office for prosecution.

Juan Ramirez-Gomez, a/k/a “MB”,  of Guatemala, was charged in a two-count indictment. Juan Ramirez-Gomez was charged with False Use of a Social Security Number, a violation of Title 42, United States Code, Section § 408, and False claim to be a citizen of the United States, a violation of Title 18, United States Code, Section § 911. The maximum penalty Ramirez-Gomez could receive is 5 years imprisonment and a maximum fine of $250,000, for False Use of a Social Security Number, and 3 years imprisonment and a maximum fine of $250,000, for False claim to be a citizen of the United States. The case was investigated by agents of ICE-Homeland Security Investigations and is assigned to Assistant United States Attorney Max Cauthen, of the Greenville office for prosecution. 

The United States Attorney stated that all charges in these indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.

#####

          CONCORD, N.H. – United States Attorney Scott W. Murray announced today that Leonard Johnson and Robert Dales, both inmates at the Federal Correctional Institution FCI-Berlin, pleaded guilty to assaulting another inmate on May 23, 2017.  A sentencing hearing for Leonard Johnson and for Robert Dales will be held on June 27^th, 2018.                .

          According to documents filed with the court and statements made during the change of plea hearings, on May 23, 2017, Johnson and Dales were in Unit A-4 of the prison when they attacked another inmate.  The attack, which was captured on videotape, included Johnson and Dales punching, kicking and stomping on their victim.  Johnson and Dales continued the attack even though prison staff ordered them to stop.  Only after the defendants were threatened with use of pepper spray did the attack end.

          The victim was treated for his injuries at Androscoggin Valley Hospital.  He suffered lacerations and bruising to his head, eyes and ears.

          The staff at FCI-Berlin conducted the investigation of this case.

###

Jacksonville, FL – A federal grand jury has returned an indictment charging Brian Holland (23, Jacksonville) with aggravated sexual abuse by force. If convicted, he faces a maximum penalty of life imprisonment in federal prison, and a potential lifetime of supervision. 

According to the indictment and court records, Holland is charged with sexually abusing a passenger-victim on February 27, 2018, while aboard a Carnival cruise ship based out of Jacksonville. 

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

This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Ashley Washington and Jay Taylor.

The United States Attorney for the Northern District of Iowa is reminding consumers that if they lost money to a scammer through Western Union between January 1, 2004, and January 1h, 2017, they can submit a claim to the Federal Trade Commission (FTC) to potentially get their money back. The deadline to do so has been extended to May 31, 2018. 

These potential refunds for consumers are the result of joint investigations by the FTC, the Department of Justice (DOJ), and the U.S. Postal Inspection Service. Western Union agreed to pay a $586 million settlement, and that money will be used to provide refunds. Once a consumer’s claim is verified by the DOJ, the amount of money returned to the consumer will depend on the total number of valid claims submitted. 

Consumers who wish to file a claim or learn more about the refund process can visit the Western Union Refunds page on the FTC’s website at FTC.gov/WU.  Consumers may also call 1-844-319-2124 to start a claim.

Follow us on Twitter @USAO_NDIA.

Former Detroit Police Department Officer Anthony Careathers was sentenced today to twenty-four months’ imprisonment for accepting a bribe from an owner of an automobile collision shop in exchange for referring stolen and abandoned vehicles recovered in the City of Detroit to that shop, United States Attorney Matthew Schneider announced today.

Schneider was joined in the announcement by Jeffrey E. Peterson, Acting Special Agent in Charge, Federal Bureau of Investigation, Patricia Armstrong, U.S. Postal Inspector in Charge, U.S. Postal Inspection Service, Detroit Division and Chief James Craig, Detroit Police Department. The defendant was actively employed with the Detroit Police Department at the time of the offense.

Anthony Careathers, age 52, was sentenced by U.S. District Judge Robert Cleland. Careathers previously pleaded guilty to one count of extortion.

According to the facts alleged in the indictment and further developed at the plea hearing and in sentencing briefing, Careathers accepted cash payments from the owner/operator of a Detroit collision shop in exchange for referring abandoned vehicles to that shop for repairs and for warning the business owner of law enforcement activity.

This is the first defendant to have been sentenced as a result of this investigation.  The others awaiting sentencing or a trial are:

• James Robertson, age 45, pleaded guilty to an Information charging 2 counts of Extortion
• Jamil Martin, 46, pleaded Guilty to an Information charging 1 count of Extortion

• Martin Tutt, age 29, pleaded guilty to an Information charging 2 counts of Extortion

• Charles Wills, age 52, pleaded guilty to two counts of Extortion charged in a Superseding Indictment.

• Deonne Dotson, age 45, is awaiting trial.

All of the Officers were charged with engaging in extortion for using their official positions as Police Officers to refer cars to certain collision shops in exchange for cash payments.

“The vast majority of Detroit Police Officers are courageous, dedicated public servants, but unfortunately these defendants are an exception to that rule,” U.S. Attorney Schneider said.

"I certainly appreciate the collaborative partnership of the state and federal agencies who took part in conducting this investigation." said Chief James Craig. "Although, the actions of these officers are disappointing, I echo U.S. Attorney Matthew Schneider in saying that the vast majority of the men and women on this department, serve the residents of this city with the utmost level of integrity and dedication."

“Anthony Careathers, a former Detroit Police Officer, was held accountable today for his own individual actions.  Careathers' acts should not be considered representative of the vast majority of law enforcement professionals at the Detroit Police Department who serve the citizens of Detroit with honor and integrity every day," said Jeffery E. Peterson, Acting Special Agent in Charge, Detroit Division of the FBI.

The investigation was conducted by the FBI, the U.S. Postal Inspection Service, Detroit Police Department and the following agencies from the FBI Detroit Area Corruption Task Force: Michigan State Police and U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operation Division.

The FBI Detroit Area Corruption Task Force is comprised of personnel from the Detroit Division of the FBI; Michigan State Police; Michigan Department of Attorney General; Detroit Police Department; U.S. Internal Revenue Service, Criminal Investigation Division; U.S. Customs and Border Protection, Office of Professional Responsibility, Investigative Operations Division; U.S. Postal Inspection Service; U.S. Department of Labor, Office of the Inspector General, Office of Labor Racketeering and

Fraud Investigations; U.S. Department of Housing and Urban Development, Office of the Inspector General; U.S. Department of Transportation, Office of the Inspector General; U.S. Department of Homeland Security, Office of the Inspector General; U.S. Department of Education, Office of the Inspector General; and U.S. Environmental Protection Agency, Office of the Inspector General.

The case is being prosecuted by Assistant United States Attorneys Sarah Resnick Cohen and Craig A. Weier.

BOSTON – A Chelsea man pleaded guilty today in federal court in Boston to his role in a large-scale methamphetamine trafficking and money laundering ring operating between Massachusetts and California.

Russell Ormiston, 51, pleaded guilty to conspiracy to distribute and to possess with intent to distribute 50 grams or more of methamphetamine. U.S. Senior District Court Judge George A. O’Toole Jr. scheduled sentencing for June 13, 2018.

In November 2016, Ormiston and 10 co-defendants were charged with various methamphetamine offenses relating to a transnational trafficking scheme.

Beginning in at least 2013 and continuing to November 2016, Ormiston was involved in a conspiracy that transported methamphetamine from San Diego, Calif., to Massachusetts, where it was distributed in the greater Boston area. Proceeds from the sale of that methamphetamine were then transported and/or transferred back to California and laundered in various ways.  

Ormiston received methamphetamine from a co-conspirator, who received it from a supplier in California. Ormiston redistributed a portion of the methamphetamine to his customers.

The charge of conspiracy to distribute and possess with the intent to distribute 50 grams or more of methamphetamine provides for a mandatory minimum sentence of 10 years in prison and up to life, a minimum of five years and up to a lifetime of supervised release, and a fine of up to $10 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.

United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigations in Boston; William Ferrara, Director of Field Operations of U.S. Customs and Border Protection; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Boston Police Commissioner William Evans made the announcement. The Massachusetts Department of Correction; Norfolk County Sherriff’s Office; Suffolk County Sheriff’s Office; and the Reading, Watertown, Quincy, Chelsea, Braintree, Peabody, Waltham, and Woburn Police Departments; and Connecticut State Police assisted with the investigation. Assistant U.S. Attorney Karen Beausey of Lelling’s Narcotics & Money Laundering Unit is prosecuting the cases.

The former Director of Parks and Grants for Plymouth Township, Michael Mitchell, 49, of Rockford, IL, was charged today by Information with one count of theft from a local government receiving federal assistance, United States Attorney Matthew Schneider announced. 

Schneider was joined in the announcement by Jeffery E. Peterson, Acting Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Thomas Tiderington, Plymouth Township Chief of Police.

According to the Information, in October of 2016, while serving as the Director of Parks and Grants for Plymouth Township, Mitchell stole property belonging to the township, including a commercial lawnmower, a John Deer Gator utility vehicle, and other equipment, with a total value of about $10,000.  Mitchell faces up to 10 years imprisonment and a fine of $250,000.

United States Attorney Schneider stated, “When public officials use their jobs to steal from taxpayers, their theft isn’t just measured in dollars - it is measured by the damage caused by robbing the public of honest government.  We will stand up and fight this corruption at all levels.” 

"Today’s charges of Mr. Mitchell should reassure the citizens of Michigan that the FBI and members of our Detroit Area Public Corruption task force are committed to holding public officials at all levels of government accountable for their actions if they decide to break the law,” said Jeffrey E. Peterson, Acting Special Agent in Charge, Detroit Division of the FBI. 

"I would encourage anyone with information about potential public corruption in Michigan to contact the Detroit FBI’s Public Corruption tip line at 313-965-2222 or our main number 313-965-2323.”

This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan.  The investigation of this case was conducted by the Federal Bureau of Investigation and Plymouth Township Police Department.  The case is being prosecuted by Assistant U.S. Attorney R. Michael Bullotta.

BROWNSVILLE, Texas – Two people have been ordered to federal prison following their convictions related to a conspiracy to purchase and smuggle an M203 Grenade Launcher as well as three semi-automatic rifles, announced U.S. Attorney Ryan K. Patrick.

ulce Maria Rippstine, 38, of San Juan, and Juan Martin Segura-Olvera, 57, of Reynosa, Mexico, pleaded guilty Dec. 7, 2017, and June 29, 2017, respectively.

Today, U.S. District Rolando Olvera ordered Rippstine to serve 37 months in prison, while Segura-Olvera received a 50-month term of imprisonment. Rippstine was further ordered to serve two years of supervised release. Not a U.S. citizen, Segura-Olvera is expected to face deportation proceedings following his prison term. The court acknowledged Rippstine’s and Segura-Olvera’s similar roles in the offense, but gave individual consideration to their actions as well as the actions of the other co-defendants.

Beginning in the fall of 2016, purchasers located in Mexico had negotiated the sale of a grenade launcher and three assault rifles with undercover federal agents who were posing as black market arms dealers. Acting on behalf of the purchasers in Reynosa, Rippstine and Segura met with the agents on Feb. 7, 2017, in Los Fresnos. Following the purchase, Rippstine and Segura were to act as the munitions transporter to facilitate the exportation and smuggling into Mexico.

Oscar Fredy Garcia, 31, of Reynosa, and Jorge Cortez-Trujillo, 42, of Veracruz, Mexico, were also members of the conspiracy. Garcia had been living illegally in the United States when he arrived in Los Fresnos on Feb. 7, 2017. In his possession was $5,000 to pay for the previously negotiated exchange. Cortez-Trujillo also illegally entered the United States prior to Feb. 7, 2017. His role was to inspect the grenade launcher and other munitions to insure the quality for the buyer in Mexico.

Rippstine had travelled to Reynosa to pick up Segura-Olvera before returning to the United States to meet at the predetermined location on Feb. 7. After an initial meet-and-greet, money was exchanged and Cortez-Trujillo inspected the grenade launcher, commenting that he was familiar with the weapon and was ex-Mexican military. He also stated that ammunition for the weapon was available in Mexico and that he had crossed these weapons previously. After he completed the inspection, Cortez-Trujillo directed the agents to load the munitions into the backseat of Rippstine’s vehicle. At that time, all four men were taken into custody.

Garcia and Cortez-Trujillo were each sentenced to five years in prison for their role in the conspiracy late last year.

The Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of Immigration and Customs Enforcement’s Homeland Security Investigations.

Assistant U.S. Attorney Jason Corley is prosecuting the case.

BOSTON – A Winchester woman was sentenced today for bank fraud after using forged checks and account numbers to steal nearly a million dollars. 

Sager Kopchak, a/k/a Sager Dallai, 34, was sentenced by U.S. Senior District Court Judge Mark L. Wolf to 18 months in prison, three years of supervised release and ordered to pay a fine of $10,000. In September 2017, Kopchak was charged and agreed to plead guilty to four counts of bank fraud.

In late 2009, Kopchak contacted an individual she knew and asked to stay with the individual for a few weeks while Kopchak received cancer treatment. Kopchak stayed with the individual from late 2009 until the summer of 2010, and paid neither rent nor utilities. In reality, Kopchak did not have cancer and was not undergoing cancer treatment. While staying with the individual, Kopchak stole a checkbook and, over the next eight years, stole nearly $1 million by forging checks and using the routing numbers from the stolen checks to make charges against the individual’s account.  Kopchak used the stolen money to make high end purchases such as a pair of 2.05 karat diamond earrings ($9,700), five fur coats (totaling $21,297), Chanel purses (totaling $9,649), a Cartier watch ($3,250) and a trip to the Bahamas ($11,166), among other things.

United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case was investigated with the assistance of the Boston Police Department.  Assistant U.S. Attorney Sara Miron Bloom of Lelling’s Economic Crimes Unit prosecuted the case.

Columbia, South Carolina ---- United States Attorney Beth Drake stated that Jonathan Donnell Thompson, age 36, of Columbia, plead guilty in federal court to conspiracy to steal firearms from a federal firearms licensee, in violation of Title 18, United States Code, Section 371. In January 2018, Thompson’s co-defendant, Cedric K. Reddick, age 24, of Columbia, plead guilty to conspiracy to steal firearms from a federal firearms licensee and to being a felon in possession of a firearm, all in violation of Title 18, United States Code, Sections 371, 922(g)(1) and 924(a)(2). United States District Judge Michelle Childs, of Columbia, accepted both guilty pleas and will impose sentence on both Thompson and Reddick after she has reviewed the presentence reports, which will be prepared by the U.S. Probation Office.

Evidence presented in court established on August 5, 2016, Tony’s Guns and Police Supplies, a federal firearms licensee, in Sumter was burglarized and 69 handguns stolen. The investigation revealed similarities between that burglary and other burglaries of liquor stores in several counties. Through the joint investigation, law enforcement developed information that lead to Thompson being a suspect and later a DNA match linked co-defendant Reddick to a burglary of one of the liquor stores. Further investigation linked Thompson and Reddick to the burglaries through various means, including phone records and social media posts. Additionally, a search warrant at Reddick’s apartment revealed a 9mm handgun stolen during the burglary of Tony’s Guns and Police Supplies. Upon arrest, Reddick confessed to his involvement and implicated Thompson.

Thompson faces a maximum of 5 years imprisonment, a fine of $250,000, and 3 years of supervised release on the conspiracy charge.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), the Sumter County Sheriff’s Office, the Newberry County Sheriff’s Office, the South Carolina State Law Enforcement Division (SLED), the Clinton Police Department, the Fairfield County Sheriff’s Office, the Richland County Sheriff’s Department, and the Lexington County Sheriff’s Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.

Project Ceasefire is South Carolina’s continued application 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.

#####

Columbia, South Carolina ---- United States Attorney Beth Drake stated that Shiquisa Monique Watts, a/k/a “Quisha,” age 23, of Fort Mill, plead guilty today in federal court to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Section 922(g)(1). United States District Judge Michelle Childs, of Columbia, accepted the guilty plea and will impose sentence after she has reviewed the presentence report, which will be prepared by the United States Probation Office.

Evidence presented in court established that on September 10, 2016, officers with the Fort Mill Police Department responded to a fight in the Wal-Mart parking lot. Officers gathered information that one of the individuals involved in the altercation was Watts and that she had been armed with a handgun. Watts and others involved had since left the area. However, officers made contact with Watts at her home as she was exiting a vehicle. Officers located a loaded Ruger .380 caliber handgun in the car and Watts admitted possessing it. Further investigation revealed that the firearm had previously been reported stolen.   

Watts is prohibited under federal law from possessing firearms and ammunition based upon her prior state convictions for distribution of marijuana and distribution of marijuana within the proximity of a park.    

Watts faces a maximum of 10 years imprisonment, a fine of $250,000, and 3 years of supervised release on the felon in possession of a firearm and ammunition charge.

The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Fort Mill Police Department and was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.

Project Ceasefire is South Carolina’s continued application 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.

#####

PITTSBURGH – Two New York residents have pleaded guilty in federal court to a charge of conspiracy, United States Attorney Scott W. Brady announced today.

William O. Candelaria, 29, and Christopher T. Candelaria, 25, both of Brooklyn, New York, pleaded guilty yesterday to one count before United States District Judge Nora Barry Fischer.

In connection with the guilty plea, the Court was advised that in June 2016, William and Christopher Candelaria and others conspired to use counterfeit credit cards at Giant Eagle stores in Western Pennsylvania to purchase gift cards and merchandise, which totaled approximately $91,000. 

Judge Fischer scheduled Christopher T. Candelaria’s sentence for July 18, 2018 at 9:30 a.m. and William O. Candelaria’s sentence for July 18, 2018 at 11 a.m.  The law provides for a total sentence of five years in prison, a fine of $250,000, or both at each count.  Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the criminal history, if any, of the defendant.

Assistant United States Attorney Gregory C. Melucci is prosecuting this case on behalf of the government.

The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of these defendants. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security/Homeland Security Investigations, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police, the Pennsylvania State Police and the Robinson Township Police Department.

PITTSBURGH - A resident of Fayette County, Pennsylvania, has been sentenced in federal court to 33 months' imprisonment, a $100,000.00 fine, and restitution in the amount of $505,131.95, as well as forfeiture in the amount of $235,515.93, on his conviction of mail fraud, United States Attorney Scott W. Brady announced today.

United States District Judge Arthur J. Schwab imposed the sentence on Keith A. Bassi, age 61, of Fayette City, Pennsylvania.

According to the information presented to the court, between 2012 and 2016, Keith A. Bassi, then a licensed Pennsylvania attorney, misappropriated for personal use approximately $505,000 in funds belonging to the estate of an elderly person diagnosed with dementia. Bassi held a power of attorney for the victim, and then engaged in a series of financial transactions in which he diverted the victim’s assets into bank accounts he created and controlled at Charleroi Federal Savings and PNC Banks. In one instance, Bassi made insurance premium payments using the victim’s funds on a whole life policy purchased at Pacific Life in the name of someone other than the victim, and then later cancelled the policy and kept the surrendered cash proceeds for himself. He also used the victim’s estate funds to operate Mid Mon Valley Publishing Co.

Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.

The United States Attorney commended the United States Postal Inspection Service and the Federal Bureau of Investigation for the investigation that led to the successful prosecution of Keith A. Bassi.

PITTSBURGH – An Allegheny County resident has been sentenced in federal court to two years in prison and two years supervised release on his conviction of mail fraud, United States Attorney Scott W. Brady announced today.

United States District Judge David Stewart Cercone imposed the sentence on Cameron Howat, 58, of Allison Park, Pennsylvania.

According to the information presented to the court, Howat solicited investment funds from friends and acquaintances for the purpose of investing those funds in the foreign exchange market. Howat represented to the investors that his compensation for making the investments on their behalf would be to take fifty percent of the profits from the investments. Instead of investing all of the funds, as promised to the investors, Howat took portions of each investor’s money and used it to pay for personal expenses. As part of his sentence, Howat was ordered to pay $420,000 to his victims.

Assistant United States Attorney Shaun E. Sweeney prosecuted this case on behalf of the government.

The United States Attorney commended the Federal Bureau of Investigation for the investigation that led to the successful prosecution of Cameron Howat.

Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced that REZA OLANGIAN, a dual citizen of the United States and Iran, was sentenced today to 25 years in federal prison, after being found guilty in November 2016, of conspiring and attempting to send surface-to-air missiles (“SAMs”) and military aircraft parts to the Government of Iran.  OLANGIAN was arrested in Estonia on October 10, 2012, pursuant to a U.S. request for his provisional arrest, and he was extradited to the United States on March 26, 2013.  OLANGIAN was convicted after a two-week jury trial before U.S. District Judge Loretta A. Preska, who imposed today’s sentence.

Manhattan U.S. Attorney Geoffrey S. Berman said: “Reza Olangian was convicted by a unanimous jury for attempting to assist the Iranian government in brokering deals for missiles capable of destroying aircraft from the ground.  Olangian’s actions were in violation of critical international sanctions designed to protect our national security.  Today he was sentenced to 25 years for his efforts to support a designated state-sponsor of terror in obtaining deadly military weapons and other items.”

According to the evidence presented during the trial:

In 2008, OLANGIAN worked with Iranian officials to obtain approximately 375 SAMs for use by the Iranian government.  Ultimately, that missile deal was unsuccessful.

Beginning in early 2012, OLANGIAN worked to negotiate another, separate missile deal, this time with a confidential source (the “CS”), who was working with the Drug Enforcement Administration (“DEA”) and who purported to be a weapons and aircraft broker.  From his base of operations in Tehran, and from approximately May 2012 through October 2012, OLANGIAN arranged for the purchase of “IGLA-S” SAMs and various aircraft components.  During covertly recorded meetings in May 2012, and in subsequent recorded conversations and e-mails with the CS, OLANGIAN described in detail his plans for procuring the SAMs and aircraft parts and then smuggling them over land into Iran, from Afghanistan or from another neighboring country.  OLANGIAN also expressed his interest in purchasing numerous other types of weapons and military parts for the Iranian government, including the so-called “S-300” missile defense system and Russian-made naval vessels.

OLANGIAN’s 2012 negotiations included his participation in a videoconference with the CS, during which OLANGIAN remotely inspected a missile that the CS presented as a sample of the larger quantity of the SAMs that OLANGIAN sought to purchase.  After inspecting the sample missile and inquiring about its specifications, OLANGIAN stated that he would want “at least 200 . . . minimum 200” of such SAMs.  In his communications with the CS, OLANGIAN also indicated that he was arranging for a missile expert to inspect and test the SAMs.

At the same time that he was negotiating with the CS, OLANGIAN was also working with other individuals, both inside and outside Iran, to acquire numerous other items for the Iranian government and Iran-based entities.  For example, OLANGIAN worked with individuals and entities in China, Russia, and Europe to acquire commercial aircraft for use by Iranian airlines.  In one of these commercial aircraft deals, OLANGIAN and his coconspirators planned to purchase aircraft for $80 million and sell them to an Iranian company for $110 million.

During October 2012, OLANGIAN traveled to Estonia in connection with the SAMs deal and in anticipation of later traveling to Russia in connection with one of the aircraft deals.  He was arrested in Estonia, and following his arrest, he was interviewed by U.S. law enforcement agents.  OLANGIAN stated, among other things, that he had been working with Iranian government officials, that the SAMs he had arranged to purchase were being obtained for the Iranian government, and that the aircraft parts he attempted to acquire were to be used in Iranian military aircraft.

*           *         *

In addition to today’s sentence, OLANGIAN, 57, was sentenced to 5 years of supervised release. 

Mr. Berman praised the outstanding investigative work of the DEA’s Special Operations Division, Bilateral Investigations Unit.  Mr. Berman also thanked the DEA’s Copenhagen Country Office, as well as the U.S. Department of Justice’s Office of International Affairs and its National Security Division.

This prosecution is being handled by the Office’s Terrorism and International Narcotics Unit. Assistant U.S. Attorney Sean S. Buckley is in charge of the prosecution, with assistance from Robert E. Wallace of the National Security Division’s Counterintelligence and Export Control Section.