Online Criminal Justice News

BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today Cesar Rivera-Figueroa, aka Fat Boy, 28, of San Juan, Puerto Rico, pleaded guilty before U.S. District Judge Lawrence J. Vilardo to engaging in a continuing criminal enterprise. The charge carries mandatory minimum penalty of 20 years in prison, a maximum of life and a $2,000,000 fine.

Assistant U.S. Attorneys Laura Higgins and Wei Xiang, who are handling the case, stated that the defendant was the leader of a drug trafficking organization who coordinated the transport of cocaine from multiple suppliers in Puerto Rico to the Buffalo area. Rivera-Figueroa then directed the distribution of cocaine, which included setting the price of cocaine, directing the collection of debt and the storage of proceeds, and instructing how payment was remitted back to Puerto Rico. The defendant also directed co-defendants to make trips to New York City to retrieve quantities of cocaine to bring back to Buffalo for distribution, and to make payment for the cocaine.

Throughout the course of the conspiracy, several packages containing kilogram-quantities of cocaine were sent from Puerto Rico and were intercepted by the United States Postal Inspection Service.

Cesar Rivera-Figueroa was arrested in September 2017 along with 11 others including: Jenhsen Rodriguez; Daniel Navarro; Virgen Perez-Jurado; Josue Cardona-Soto; Devincio K.D. James; Omar Vazquez-Baez; Luis Andino; Joseph Jones; Quinton Jones; Sucley Romero; and Tori Rockmore. Rivera-Figueroa is the fourth defendant to be convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.

The plea is the result of an investigation by the Federal Bureau of Investigation, Safe Streets Task Force, under the direction of Special Agent-in-Charge Gary Loeffert; the Drug Enforcement Administration, under the direction of Special Agent-in-Charge Ray Donovan, New York Field Division; the Bureau of Alcohol, Tobacco, Firearms, and Explosives, under the direction of Special Agent-in Charge John B. Devito, New York Field Division; the United States Postal Inspection Service, Boston Division, under the direction of Inspector-in-Charge Joseph W. Cronin; the Buffalo Police Department, under the direction of Commissioner Byron Lockwood; the New York State Police, under the direction of Major Edward Kennedy; and the Erie County Sheriff’s office, under the direction of Sheriff Timothy Howard.

Sentencing is scheduled for November 8, 2019, before Judge Vilardo.

PORTLAND, Ore.—Kermit Tyler Poulson, 40, pleaded guilty today to one count of transmitting threatening communications with the intent to extort Portland Mayor Ted Wheeler.

According to court documents, on October 9, 2018, Poulson posted multiple threatening comments on Mayor Wheeler’s personal Instagram account. Poulson threatened to firebomb the mayor’s home if he did not immediately fire a Portland police officer recently involved in an on-duty shooting. Investigators tracked the IP address associated with the comments to a Portland residence where Poulson was staying. Poulson was present when investigators searched the property and after initially making a number of misleading statements, admitted that he alone was responsible for the comments.

Poulson faces a maximum sentence of two years in prison, a $250,000 fine and three years of supervised release. He will be sentenced on October 2, 2019 before U.S. District Court Judge Michael H. Simon.

As part of the plea agreement, Poulson has agreed to forfeit property used to facilitate his crimes identified by the government prior to sentencing.

This case was investigated by the Portland FBI Joint Terrorism Task Force (JTTF) and the Portland Police Bureau (PPB). The Portland JTTF includes FBI special agents and more than a dozen state and local law enforcement officers.

United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance was sentenced on June 27, 2019, by Chief Judge Jeffrey L. Viken, U.S. District Court.

Loren Shon Waters, age 46, was sentenced to 10 years in federal prison, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.

From May 2016 through February 2018, Waters sold and distributed 500 grams or more of methamphetamine in western South Dakota, primarily on the Pine Ridge Reservation.

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

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

United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man convicted of Abusive Sexual Contact was sentenced on July 1, 2019, by U.S. District Judge Roberto A. Lange.

Mason Neck, age 28, was sentenced to 72 months in federal prison, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.

Neck was indicted by a federal grand jury on February 14, 2018. He pled guilty on April 3, 2019.

The conviction stemmed from conduct that occurred between June 2016 and August 2016, wherein Neck knowingly engaged in sexual contact with a child who was between two and three years old.

This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.

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

WILMINGTON, Del. – Eric Lloyd was captured just before midnight on July 3, 2019 by the United States Marshals Service (“USMS”) Fugitive Taskforce and the Federal Bureau of Investigation (“FBI”), in Philadelphia, Pennsylvania. Lloyd was convicted of racketeering, money laundering, and related charges after a trial in New Castle County Superior Court in June of 2019. Lloyd was released on bail during the trial. He became a fugitive after he fled while the jury was deliberating and a warrant was issued for his arrest after the jury found him guilty.

Lloyd’s apprehension was the result of a collaborative effort between the USMS and FBI. The USMS was also assisted by the United States Attorney’s Office and the Delaware Department of Justice. The USMS Fugitive Taskforce is staffed by a number of local agencies, including the Wilmington Police Department. Lloyd is expected to appear in Federal Court on Friday, July 5, 2019, for an initial appearance related to a violation of his federal supervised release. Afterwards, he will likely be turned over to state custody to be sentenced for his latest convictions.

Michael McGowan, U.S. Marshal for the District of Delaware, stated, “This arrest is another great example of the collaborative efforts of our federal, state and local law enforcement partners. Investigators worked tirelessly to ensure jurisdictional lines did not impede the capture of this dangerous fugitive.”

U.S. Attorney Weiss stated, “The USMS and the FBI should be commended for the capture of Mr. Lloyd. The Marshals work relentlessly to apprehend priority fugitives for every law enforcement agency in Delaware, and this is the latest example of their dedication to bringing brazen criminals like Mr. Lloyd to justice.”

A New York doctor has agreed to pay the government $127,072.34 for allegedly accepting illegal kickback payments from OK Compounding, L.L.C., announced U.S. Attorney Trent Shores.

The U.S. Attorney’s Office in the Northern District of Oklahoma entered into a settlement agreement with George Lehner, 46, a medical doctor, in an effort to recoup the costs to the U.S. government resulting from the illegal kickbacks. This civil settlement resulted from an investigation into numerous health care providers writing prescriptions for pain creams compounded and sold by OK Compounding in return for kickback payments.

“OK Compounding was an epicenter of criminal and civil healthcare fraud in northeastern Oklahoma. Another week, another physician being held accountable. My team won’t rest until they’ve rooted out the corruption,” said U.S. Attorney Trent Shores.

Beginning in 2014 and continuing into 2015, Dr. Lehner prescribed compounded pain creams for his patients, facilitating the sale and distribution of the creams. As compensation for his services, OK Compounding paid Dr. Lehner what was characterized by the parties as “medical director fees” based upon an hourly rate. However, the payments Dr. Lehner received from the company were, in actuality, “kickbacks.” Because Dr. Lehner’s patients were insured with Medicare, a federal health insurance program for people over 65 years of age and for certain younger individuals with some disability status, the kickbacks were in violation of the False Claims Act. It is illegal to pay or receive “kickbacks” in conjunction with federal health care insurance.

Prohibitions against kickbacks are crucial to insure that financial motives do not undermine the medical judgment of physicians and other health care providers. The civil False Claims Act is an important tool used to protect the integrity of taxpayer-funded health care programs.

The settlement resolves allegations that Dr. Lehner had an illegal financial relationship with OK Compounding, concerning pain creams from April of 2014 through March of 2015.

Affirmative Civil Enforcement (ACE) refers to filing civil lawsuits on behalf of the United States. The purpose of these civil actions is to recover government money lost to fraud or other misconduct or to impose penalties for violations of Federal health, safety, civil rights or environmental laws.

To report fraud and abuse against the Federal government in the Northern District of Oklahoma, please contact the U.S. Attorney’s Office at 918-382-2700 and speak to a member of the ACE Unit.

This settlement was the result of a coordinated effort by Assistant U.S. Attorney Marianne Hardcastle for the Northern District of Oklahoma; the Defense Criminal Investigative Service; Department of Labor– Office of Inspector General (OIG), IRS– Criminal Investigation Division; U.S. Postal Service– OIG; FBI; Department of Veterans Affairs– OIG and the Department of Health and Human Services– OIG.

The claims resolved by the settlement are allegations only; there has been no determination of liability.

TYLER, Texas – A 30-year-old Carthage, Texas man has been convicted of federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.

Winfred Earl Ware, Jr. was found guilty by a jury on June 28, 2019, of conspiracy to possess with intent to distribute methamphetamine, obstruction of justice and witness tampering following a two-week trial before U.S. District Judge Marcia A. Crone.

According to information presented in court, from 2014 through 2017, Ware conspired with others to possess with the intent to distribute 50 grams or more of methamphetamine. The evidence presented in trial showed that pending trial for the drug conspiracy charge in August 2018, Ware created false Facebook entries purported to be from a government witness which would tend to exonerate the defendant. By submitting those false documents to the court to be used at trial, the government had to dismiss the pending drug charge against Ware to investigate these messages. Upon examination, the government determined that the Facebook entries were created by Ware in an effort to influence the testimony of several witnesses in the original trial and to corruptly influence the due administration of justice. Ware was then indicted in Dec. 2018, on the original drug conspiracy as well as the charges of obstruction of justice and witness tampering.

Under federal statutes, Ware faces a minimum of 10 years in federal prison for the drug trafficking and tampering charges and up to 10 years in federal prison for the obstruction violation. The maximum statutory sentences prescribed by Congress is provided here for information purposes, as the sentence 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 U.S. Probation Office.

This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Federal Bureau of Investigation, and the Panola County Sheriff’s Office. This case was prosecuted by Assistant U.S. Attorneys Lauren Gaston and Michelle S. Englade.

SPRINGFIELD, Mo. – A former Arkansas state senator pleaded guilty in federal court today to accepting multiple bribes in connection with a multi-district investigation spanning the Western District of Missouri and Eastern and Western Districts of Arkansas.

Jeremy Hutchinson, 45, of Little Rock, Arkansas, pleaded guilty before U.S. Magistrate Judge David P. Rush to one count of conspiracy to commit federal program bribery. Hutchinson, who was previously a state senator and representative, resigned in August 2018 after he was indicted in the Eastern District of Arkansas.

Hutchinson pleaded guilty today to his role in a multi-million-dollar public corruption scheme that involved embezzlement, bribes and illegal campaign contributions for elected public officials. Hutchinson admitted that he was hired by then-Chief Operating Officer Bontiea Goss as outside counsel for Preferred Family Healthcare, Inc. (formerly known as Alternative Opportunities, Inc.), and in exchange for payments and legal work, Hutchinson performed official acts on behalf of the Springfield, Missouri-based healthcare charity, including holding up agency budgets and drafting and voting on legislation. Goss, a former executive at the charity, is charged in the same superseding indictment to which Hutchinson pleaded guilty.

According to today’s plea agreement, the charity paid Hutchinson a monthly retainer from May 2014 until 2017. In total, Hutchinson was paid more than $350,000 in charity funds. Hutchinson also received hotel rooms and Major League Baseball tickets paid for by the charity, and the use of the charity’s luxury and recreational real estate.

Hutchinson further admitted as part of his plea that: he understood that he was paid by Alternative Opportunities, Inc., and Preferred Family Healthcare, Inc., primarily because of his position as an elected public official; that he worked to further the interests of the non-profit while in the Arkansas State Legislature; that Goss, along with Milton Russell Cranford (also known as “Rusty”) and Robin Raveendran, both of whom served as executives for the charity and have also pleaded guilty for their role in the bribery scheme, directed Hutchinson to move the charity’s political agenda forward in the Arkansas Senate; and that Hutchinson performed some legal work for the charity to conceal his corrupt arrangement with the charity’s executives.

Under federal statutes, Hutchinson is subject to a sentence of up to five years in federal prison without parole and a fine of up to $250,000. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant 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.

Hutchinson previously pleaded guilty on June 25, 2019, to bribery and tax fraud as part of a multi-district plea agreement. Hutchinson pleaded guilty to an information filed in the Western District of Arkansas, charging him with conspiracy to commit federal program bribery as part of a separate scheme involving an unidentified individual who owned and operated orthodontic clinics throughout the state of Arkansas, for whom Hutchinson had taken official action in exchange for bribes. He also pleaded guilty to one count of filing a false tax return that was part of a 12-count federal indictment in the Eastern District of Arkansas, charging him with devising a wire and tax fraud scheme in which Hutchinson stole and misappropriated thousands of dollars in state campaign contributions for his own personal use, and then filed false federal income tax returns to conceal his conduct.

The multi-district investigation was conducted by IRS-Criminal Investigation, the FBI, and the Offices of the Inspectors General from the Departments of Justice, Labor, and the Federal Deposit Insurance Corporation (FDIC). The cases are being prosecuted by Assistant U.S. Attorney Steven M. Mohlhenrich of the Western District of Missouri; Trial Attorneys Marco A. Palmieri and Sean F. Mulryne of the Criminal Division’s Public Integrity Section; Assistant U.S. Attorneys Ben Wulff and Aaron Jennen of the Western District of Arkansas; and Assistant U.S. Attorneys Stephanie Mazzanti and Patrick Harris from the Eastern District of Arkansas.

HOUSTON – Four Houston men will serve the rest of their lives behind bars for the robbery and murder of an armored car guard and attempted robbery and murder of another, announced U.S. Attorney Ryan K. Patrick.

A federal jury deliberated for eight hours before convicting Nelson Alexander Polk, 40, Marc Anthony Hill, 48, John Edward Scott, 43, and Bennie Charles Phillips Jr., 32, on March 29, 2019, following a nine-day trial. All were convicted of attempted interference with commerce by robbery and aiding and abetting discharge of a firearm during a crime of violence. The jury also convicted Hill and Polk of aiding and abetting interference with commerce by robbery and aiding and abetting discharge of a firearm during a crime of violence causing the death of another.

Today, U.S. District Judge David Hittner sentenced each man to life in prison for their roles in the offenses. At the hearing, the court heard from the victim’s family who described the impact of the murder on their lives. They described waiting for their son, brother and fiancé to come home from work and that he should have never had to die for “easy money.”

The sentences stemmed from the robbery and murder of a Brinks armored car guard Aug. 29, 2016, at Wells Fargo Bank located at 13120 Northwest Freeway as well as the attempted robbery of a Loomis armored car guard at Amegy Bank located at 400 N Sam Houston Pkwy E Dec. 7, 2016.

All members of the crew received at least life in prison because each member knew the scheme involved murdering the guard then stealing the money.

Hill and Polk were sentenced to two consecutive life terms followed by 240 months for their roles in both robberies and murder. Scott and Phillips received life in prison followed by a consecutive 240 months for their roles in the attempted robbery and murder of the Loomis guard at Amegy Bank.

Hill conducted extensive surveillance at both locations and was there during the time of the Wells Fargo murder and robbery. He was also near the Amegy Bank poised to pick up the robbery crew members in a getaway vehicle.

Polk, Hill’s nephew, drove the car that would pull up on the dying guard for another crew member to get out and steal the money. Polk confessed to his roles in the crimes and admitted he knew the leader intended to “lay [the guard] down” so he could easily steal the money from the dying armored guard.

Phillips recruited Trayvees Duncan-Bush, 32, also of Houston, who would take the money off of the dying guard. He made sure that Duncan-Bush had a phone, instructions and a hotel room in preparation for the robbery/murder plot. Scott acted as an outside perimeter lookout. He alerted the crew via cell phone when the armored truck was headed towards the bank and watched for law enforcement.

At trial, the jury heard that a now-deceased individual had allegedly led the robbery crew, which would conduct extensive surveillance of banks’ ATMs and armored car routes before executing the robberies. The plan involved the leader lying in wait for the guard to begin service of the ATM. He would then shoot the guard from a distance with a high caliber rifle so another member of the robbery crew could pull up and take the money.

When law enforcement moved in to arrest the subjects Dec. 7, 2016, the leader of the crew allegedly came out firing his weapon and police responded, killing him.

Those sentenced today will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be determined in the near future.

Duncan-Bush had pleaded guilty to conspiracy to commit interference with commerce by robbery and aiding and abetting discharge of a firearm during a crime of violence prior to trial. He is set for sentencing Aug. 14, 2019, at which time he faces up to 20 years in prison.

The FBI, Houston Police Department and Bureau of Alcohol, Tobacoo, Firearms and Explosives conducted the investigation. Assistant U.S. Attorneys Heather Winter and Richard Hanes are prosecuting the case.

The case is an example of coordination between law enforcement who are part of the Houston Law Enforcement Violent Crime Initiative. The goal is to proactively fight and reduce violent crime across the Greater Houston area by targeting the region’s most violent offenders, augmenting investigative and prosecutorial efforts, and enhancing training, public awareness and education.

It 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.

U.S. Peter G. Strasser announced that United States District Court Judge, Barry W. Ashe, sentenced DILLON DAVIS, age 26, of Destrehan, to 151 months of imprisonment for committing a bank robbery in violation of Title 18, United States Code, Section 2113(a). DAVIS’ two prior drug convictions qualified him as a career offender, thus enhancing his sentencing guideline range.

The federal indictment alleged that DAVIS entered the Chase Bank located at 3540 Williams Boulevard, in Kenner, Louisiana, on August 2, 2017, and demanded one thousand dollars in U.S. currency from a bank teller.

DAVIS’ case has been designated as a Project Safe Neighborhoods (PSN) case. PSN is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.

U.S. Attorney Peter G. Strasser praised the work of the Kenner Police Department and the Federal Bureau of Investigation in investigating this matter. Assistant United States Attorney Brittany L. Reed is in charge of the prosecution.

PHILADELPHIA – United States Attorney William M. McSwain announced that Dean Volkes, 55, Donna Fallon, 54, both of Long Island, NY, and Devos Ltd., doing business as Guaranteed Returns, also located in Long Island, were sentenced to five years’ incarceration, one year and one days’ incarceration, and five years’ probation, respectively, by U.S. District Judge Petrese Tucker. Additionally, Volkes and Guaranteed Returns were each ordered to forfeit $114,832,445.62 and pay restitution of $95,253,090.05, and Fallon was ordered to pay $515,221.89 in restitution. Volkes, Fallon, and the company were convicted at trial in March 2017 of mail fraud, wire fraud, theft of government property, money laundering conspiracy, obstruction of justice, and false statements in connection with a scheme to steal money from clients who relied on the business to return unused pharmaceutical products.

Volkes was the President, Chief Executive Officer, and sole owner of Guaranteed Returns, a reverse pharmaceutical distributor located in Holbrook, New York. Fallon, who is Volkes’ sister, was the company’s Chief Financial Officer. As a reverse distributor, Guaranteed Returns managed the returns of pharmaceutical products for healthcare providers, including numerous hospitals, pharmacies, and long-term care facilities, as well as Department of Defense facilities. Pharmaceutical manufacturers often allow expired drugs to be returned for a refund. Guaranteed Returns handled this process for healthcare provider clients in exchange for a fee based on a percentage of the return value.

The evidence presented at trial proved that from approximately 1999 through 2014, Guaranteed Returns promised its clients that it would hold their “indate” (not yet expired) drug products until they expired, and then return them on the clients’ behalf, in exchange for a fee. Instead, Guaranteed Returns, at CEO Volkes’ direction, stole indated drug products that it received from its clients, returned the drugs to manufacturers, and kept the refund money. Volkes created a system in which he classified clients as either “managed” or “unmanaged.” While both categories of clients were victimized, Volkes reserved special treatment for “unmanaged” clients by stealing what he could from them by ensuring that Guaranteed Returns kept the full value of the returned product for itself. The evidence demonstrated that through this fraud, Volkes and Guaranteed Returns stole more than $100 million from over 13,000 clients, including more than $20 million from numerous medical treatment facilities operated by the U.S. Department of Defense and other government agencies.

The evidence also showed that Volkes, Fallon, and Guaranteed Returns stole clients’ refund money by diverting a percentage of the refunds into internal company accounts, conspired to launder the proceeds of the fraud, and obstructed justice in connection with a grand jury investigation.

“The defendants and their company took advantage of their own clients, stealing millions of dollars, and then committed further crimes by attempting to cover up the fraud,” said U.S. Attorney McSwain. “This kind of fraud netted the defendants exactly what they deserve – a trip to prison. My Office and our law enforcement partners will not allow dishonest businesses like this to steal from customers – which, in this case, included American taxpayers.”

“At each turn, these defendants’ guiding principle was greed,” said Michael T. Harpster, Special Agent in Charge of the FBI’s Philadelphia Division. “For years, they ripped off clients – among them, the U.S. government – to the tune of millions of dollars. They’re now being held accountable for their scheme, and for their brazen attempts to cover it up by obstructing justice. The FBI and our federal partners won’t stand for criminals stealing from the government and the taxpayers who fund it.”

“These sentencings are the direct result of a joint effort by the Defense Criminal Investigative Service (DCIS), the FBI and the U.S. Attorney’s Office, Eastern District of Pennsylvania,” stated Leigh-Alistair Barzey, Special Agent in Charge of the DCIS Northeast Field Office. “The fraudulent conduct in this case was particularly egregious and undermined the integrity of the U.S. Defense Department’s procurement system. DCIS is committed to working with its law enforcement partners to identify, investigative and prosecute individuals and companies who defraud the U.S. Government and the American taxpayer.”

The case was investigated by the Defense Criminal Investigative Service and the Philadelphia office of the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Nancy Rue and Patrick J. Murray.

PITTSBURGH - A resident of Westmoreland County has been sentenced in federal court to one-and-one-half years’ (18 months’) incarceration and five years of supervised release on her conviction of bank fraud and mail fraud, United States Attorney Scott W. Brady announced today.

United States District Judge Cathy Bissoon imposed the sentence on Nicolette Gizzi, age 46, of North Huntingdon, PA.

According to information presented to the court, from December 2009 through approximately June 2016, Gizzi, who was employed as the Financial Manager for Steel Valley Authority, embezzled by issuing checks to herself and her credit card company, without authorization, and then forging the required signatures. The checks were drawn on Steel Valley Authority’s business bank account. Steel Valley Authority is funded primarily by federal grants. Additionally, Gizzi, who has a prior federal fraud conviction in South Carolina, defrauded the United States Attorney’s Office for the District of South Carolina as it attempted to collect restitution for her previous victim.

Prior to imposing sentence, Judge Bissoon imposed an obstruction of justice sentencing enhancement based on false statements Gizzi made to the United States Probation Office during the course of a Presentence Interview.

U.S. Attorney Brady said, "Nicolette Guzzi perpetrated her fraud scheme on an economic development organization that is primarily funded through grants from the U.S. Department of Labor. An important part of our work is ensuring that public monies are used for their intended purposes, as we have demonstrated through this prosecution."

"Nicolette Gizzi devised a scheme to embezzle over $82,000 in Workforce Innovation and Opportunity Act funds from her employer at the expense of job seekers who were eligible for those resources. We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Employment Training Administration to protect the integrity of services designed to strengthen and improve America’s workforce," said Richard Deer, Special Agent-in-Charge, Philadelphia Region, U.S. Department of Labor Office of Inspector General.

Assistant United States Attorney Lee J. Karl prosecuted this case on behalf of the government.

United States Attorney Brady commended the U.S. Department of Labor, Office of Inspector General, the Federal Bureau of Investigation and the U.S. Department of Housing and Urban Development, Office of Inspector General for the investigation leading to the successful prosecution of Gizzi.

SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Ernest Schaeffer, age 43, of Schuylkill Haven, was sentenced on July 2, 2019, by U.S. District Court Judge Malachy E. Mannion to 15 years’ imprisonment followed by five years on supervised release for participating in a methamphetamine trafficking conspiracy.

According to United States Attorney David J. Freed, Schaeffer previously pleaded guilty to conspiracy to distribute more than 500 grams of methamphetamine between June and October 2016.

Judge Mannion explained that he imposed a sentence above the advisory guidelines range because during the course of the drug conspiracy Schaeffer held a woman captive for three days in a shed on his property and tortured her with electric shocks and a stun gun.

The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and local police in Schuylkill County. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.

This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.

John H. Durham, United States Attorney for the District of Connecticut, announced that CEWELL SHARPE, also known as “C.C.,” 36, of Bridgeport, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to 151 months of imprisonment, followed by three years of supervised release, for trafficking heroin.

According to court documents and statements made in court, in 2015, the FBI’s Bridgeport State Streets Task Force, Bridgeport Police Department and Connecticut State Police Statewide Narcotics Task Force initiated an investigation into several heroin distributors operating in Bridgeport. The investigation, which included court-authorized wiretaps, controlled purchases of heroin and physical surveillance, revealed that Sharpe and Harry Blake, also known as “Harry-O,” partnered to distribute large amounts of heroin in Bridgeport. Sharpe frequently carried firearms in connection with his drug trafficking activity.

On April 12, 2019, Sharpe pleaded guilty to one count of conspiracy to possess and distribute heroin.

Sharpe has been in federal custody since January 26, 2016, after he was charged during a separate investigation into heroin and crack cocaine trafficking in Bridgeport. He subsequently pleaded guilty and, on June 27, 2016, was sentenced to 48 months of imprisonment.

Judge Arterton ordered Sharpe’s 151-month sentence to run consecutively to the 48-month sentence he is currently serving.

On October 31, 2018, a jury found Blake guilty of one count of conspiracy to possess with intent to distribute 100 grams or more of heroin. On June 26, 2019, he was sentenced to 168 months of imprisonment.

This matter was investigated by the FBI’s Bridgeport Safe Streets Task Force and the Bridgeport Police Department, with the assistance of the Drug Enforcement Administration, Connecticut State Police, Stratford Police Department, Stamford Police Department and the Trumbull Police Department K-9 Unit. The case is being prosecuted by Assistant U.S. Attorneys Alina M. Reynolds and H. Gordon Hall.

WASHINGTON – The Office of Justice Programs’ National Institute of Justice today released recommendations to assist jurisdictions and agencies in solving unresolved criminal cases, or “cold cases." The recommendations are the result of dedicated professionals convening and deliberating over the course of two years to develop long-awaited best practices.

TITLE: National Best Practices for Implementing and Sustaining a Cold Case Investigation Unit

AUTHOR: National Institute of Justice

WHERE: https://www.ncjrs.gov/pdffiles1/nij/252016.pdf

Earlier today, in federal court in Brooklyn, Anna Steiner, an anesthesiologist, was arraigned on an indictment charging her with conspiracy to commit health care fraud for her alleged role in a telemedicine scheme to submit fraudulent claims to Medicare, Medicare Part D plans and private insurance plans. Steiner was previously arrested on a complaint in April 2019, and was arraigned this morning before United States District Judge I. Leo Glasser.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and Scott J. Lampert, Special Agent-in-Charge, U.S. Department of Health and Human Services Office of Inspector General, Office of Investigations (HHS OIG), announced the indictment.

“As alleged, Steiner claimed to provide telemedicine services to patients, but in reality, her telecare was a fiction and the claims submitted to Medicare unnecessary and fraudulent,” said United States Attorney Donoghue. “This Office and our law enforcement partners will continue vigorously investigating and prosecuting health care professionals who seek personal enrichment by stealing from a taxpayer-funded program.”

“Fraud against both public and private health care plans is not a victimless crime—the cost of doing business is ultimately transferred to members and taxpayers alike,” said FBI Assistant Director-in-Charge Sweeney. “More importantly, prescribing medication and medical equipment to patients for the sole purpose of turning a profit is not only unethical, it’s dangerous business. Today’s indictment is a victory for the FBI and our partners, the public at large, and those in the medical community who operate within the confines of the law.”

“When physicians boost their profits by billing federal healthcare programs for medically unnecessary services, the Office of Inspector General, along with our law enforcement partners, will thoroughly investigate such deceptive schemes,” said HHS-OIG Special Agent-in-Charge Lampert.

As alleged in the indictment, telemedicine is a service connecting medical providers with individuals who receive healthcare benefits through real-time, interactive audio and video telecommunications. Beginning in approximately January 2015, Steiner and other medical providers purported to practice telemedicine pursuant to agreements with an entity identified in the indictment as “Company-1” and others, in exchange for kickbacks paid for each purported telemedicine encounter with a beneficiary. In fact, Steiner and other medical providers signed numerous prescriptions and order forms for durable medical equipment (DME) and drugs for beneficiaries, when the DME and drugs were not medically necessary and not the result of an actual doctor-patient relationship or examination. Suppliers of DME and pharmacies then submitted to Medicare more than $7 million in claims, on behalf of more than 3,000 beneficiaries, including residents of the Eastern District of New York. Medicare paid more than $3 million on these claims.

The charge in the indictment is an allegation, and the defendant is presumed innocent unless and until proven guilty.

The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision by the U.S. Attorney’s Office for the Eastern District of New York and the Criminal Division’s Fraud Section. Trial Attorney Andrew Estes of the Fraud Section is in charge of the prosecution.

The Defendant:

ANNA STEINER (also known as “Hanna Wasielewska”)

Age: 63

Valatie, New York

E.D.N.Y. Docket No. 19-CR-295 (ILG)

Earlier today, at the federal courthouse in Brooklyn, Paul Ragusa, an associate of the Bonanno and Gambino organized crime families, was sentenced by United States District Judge Pamela K. Chen to 72 months’ imprisonment for possessing nine firearms, including three automatic assault rifles and a silencer. Ragusa possessed the firearms while serving a custodial sentence at a residential re-entry facility in connection with three prior felony convictions. Ragusa pleaded guilty to the firearms charge in October 2018.

Richard P. Donoghue, United States Attorney for the Eastern District of New York, announced the sentence.

“While serving a prior sentence for violent crimes involving machineguns, Ragusa was ready and willing to transport more guns, including assault rifles,” stated United States Attorney Donoghue. “Today’s sentence incapacitates the defendant, who clearly continues to pose a danger to the community.” Mr. Donoghue thanked the Federal Bureau of Investigation (FBI) and New York City Police Department, as well as law enforcement partners in Canada, including the Royal Canadian Mounted Police and the GTA Combined Forces Special Enforcement Unit Public Prosecution Service of Canada, Ontario Regional Office.

Between July and October 2017, Ragusa met with a cooperating witness (CW) whom he knew through their prior affiliation with the Giannini Crew, a criminal enterprise responsible for numerous violent crimes. During recorded conversations with the CW, Ragusa agreed to commit a murder-for-hire. Ragusa stated that he did not need a gun, because he would stick an “ice pick” through the victim’s head.

On October 25, 2017, the CW asked Ragusa if he knew anyone who could transport firearms. Ragusa responded, “Yeah, me! I’ll do it!” On November 2, 2017, Ragusa met an undercover FBI agent who drove him to a warehouse in Nassau County, where Ragusa packed nine firearms, including two AK-47 assault rifles and one M16 rifle, into a large bag. Ragusa and the agent drove to a parking lot in Queens, where Ragusa loaded the firearms into a waiting undercover FBI vehicle. Ragusa was paid $2,000 in cash. Unbeknownst to Ragusa, the firearms were the property of the FBI and had been rendered inoperable.

The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Tanya Hajjar and Drew Rolle are in charge of the prosecution.

The Defendant:

PAUL RAGUSA

Age: 48

Brooklyn, New York

E.D.N.Y. Docket No. 17-CR-613 (PKC)

ROCHESTER, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Williams, 52, of Rochester, NY, who was convicted of sex trafficking of a minor, was sentenced to serve 188 months in prison by Chief U.S. District Judge Frank P. Geraci, Jr.

Assistant U.S. Attorneys Melissa M. Marangola and Tiffany H. Lee, who handled the case, stated that between January and February 2012, the defendant enticed a minor victim (Victim 1), to engage in a commercial sex act. Williams recruited and enticed Victim 1 to live with him and to earn money working as a prostitute. Advertisements for Victim 1 were posted on Backpage.com. The investigation began when a family member saw an ad for Victim 1 online.

The sentencing is the result of an investigation by the Federal Bureau of Investigation, Rochester Office, under the direction of Special Agent-in-Charge Gary Loeffert, and the Monroe County District Attorney's Office, under the direction of District Attorney Sandra Doorley.

A man who possessed child pornography pled guilty on July 8, 2019, in federal court in Cedar Rapids.

Troy French, age 29, from Cedar Rapids, was convicted of one count of possession of child pornography. At the plea hearing, French admitted that, between 2012 and 2017, he knowingly possessed child pornography, including one or more depictions of prepubescent children.

Sentencing before United States District Court Judge C.J. Williams will be set after a presentence report is prepared. French was taken into custody by the United States Marshal after the guilty plea and will remain in custody pending sentencing. French faces a possible maximum sentence of 20 years’ imprisonment, a $250,000 fine, $5,100 in special assessments, and supervised release for 5 years to life following any imprisonment.

This case is being prosecuted by Assistant United States Attorney Mark Tremmel and was investigated by the Federal Bureau of Investigation.

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.”

United States Attorney Trent Shores announced that Treveon Montrell Vaughn, 27, of Tulsa, was sentenced in U.S. District Court for obstructing commerce by robbery and to brandishing a firearm during six different robberies at local donut and Dollar General stores.

Chief U.S. District Judge John E. Dowdell sentenced Vaughn to 319 months in federal prison and further ordered him to pay restitution to the businesses in the amount of $60,000.

“Treveon Vaughn was a gun-toting serial armed robber whose crime spree was brought to an end by dedicated police work and diligent prosecution. Vaughn also admitted to influencing juveniles to participate in his criminal transgressions. Alpha Criminals like Vaughn are exactly who Project Safe Neighborhoods was designed to identify and hold accountable,” said U.S. Attorney Trent Shores “No longer will Vaughn be able to corrupt youths in our community nor violently rob our local businesses.”

Vaughn committed six armed robberies between June 24, 2018, and August 17, 2018, and at one point committed three robberies in one day. In each of the robberies, Vaughn wore a mask and brandished a firearm, threatening store employees and stealing cash from registers. Vaughn’s crime spree ended when Tulsa police officers were called to the scene of a robbery in progress at a Dollar General store on August 17, 2018, and Vaughn became trapped inside the store. At one point during the resulting stand-off with officers, the defendant started a small fire, trying to destroy evidence. He eventually surrendered and was taken into custody. He eventually admitted to influencing and leading a group of juveniles into his criminal activity, stating they would do anything for money.

The Tulsa Police Department and the FBI conducted the investigation. Assistant U.S. Attorney Ryan Roberts prosecuted the case.

This prosecution is a result of the Project Safe Neighborhoods (PSN) initiative. PSN was reinvigorated in 2017 as part of the Justice Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership the local community and with federal, state, local and tribal law enforcement to develop effective, locally-based strategies to reduce violent crime.

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