Security News in Brief: Former Port Angeles, Washington, Naturopath sentenced for scheme to profit on ‘COVID-19 cure’

Source: United States Department of Justice Criminal Division

Third federal conviction for introducing misbranded drugs into commerce; repeatedly ignored state licensing rules

Tacoma – A former Port Angeles, Washington, naturopathic physician was sentenced today in U.S. District Court in Tacoma to 8 months in prison and one year of supervised release for a federal felony related to his misbranding, and sale in interstate commerce, of products he claimed could prevent and treat numerous serious diseases, including COVID-19 and MRSA, announced U.S. Attorney Nicholas W. Brown.   Richard Marschall, 69, was convicted in October 2021, following a 4-day trial.  The jury found Marschall guilty of Introduction of Misbranded Drugs into Interstate Commerce, his third conviction for the same crime following earlier prosecutions in 2011 and 2017.  At the sentencing hearing U.S. District Judge Benjamin H. Settle said, “It is extremely dangerous during the COVID epidemic for people to be engaged in conduct that would lead other people to defer and wait to receive medical care.”

“Mr. Marschall has a history of lying to patients about their health and his proposed treatments.  His lies in this case are particularly troubling because he employed them when advising others about a deadly pandemic,” said U.S. Attorney Nick Brown.  “As people became fearful and searched for answers, Marschall touted an unproven treatment as a miracle cure for the deadly disease.  Such conduct can prevent patients from getting the legitimate treatment they need if they become ill.”

According to records filed in the case, in late March 2020, Food and Drug Administration criminal investigators began reviewing complaints from the public about Facebook posts for Marschall’s products.   Investigators reviewed Marschall’s Facebook page which included claims that his product the “Dynamic Duo” could “crush” viruses, including the coronavirus.  Marschall billed himself as a retired naturopath and “Health Coach.”  Marschall’s Facebook page also claimed that his products could eliminate MRSA and other infections “even if there is antibiotic resistance.”

On March 30, 2020, an FDA investigator spoke to Marschall on the telephone in an undercover capacity explaining to Marschall that she was worried about COVID-19.  Marschall told the investigator that the “Dynamic Duo” contained garlic extract and larch tree starch, and further represented that one of the substances “doesn’t boost the immune system, it just kills the virus.”  Marschall represented that the second substance would boost the production of white blood cells that attack infections.  The undercover agent ultimately ordered the “Dynamic Duo” for $140 plus shipping. 

On the call with the FDA investigator, Marschall also referred to himself as “Dr. Rick Marschall.” His Facebook posts and other marketing materials for the “Dynamic Duo” also referred to Marschall as “N.D.” and “N.D. retired.” But Marschall did not have a license to practice naturopathy. In 2018, the Washington State Department of Health permanently revoked his credential to practice as a naturopath. 

FDA investigators received Marschall’s “Dynamic Duo” products in early April 2020, along with instructional and marketing material.  The products themselves were not made by Marschall but by other manufacturers.  The manufacturers’ labels for the substances do not claim to kill viruses, but the material added by Marschall stated the substances can “crush 30 different viral infections, including those in the Corona family, like in China Corona-19.”

The jury found that Marschall misbranded the drugs because his marketing was false or misleading and because his products were not listed with the FDA.

Marschall was convicted previously and sentenced in federal court for distributing misbranded drugs, both in 2011 and again in 2017. 

In asking for a year-long prison term prosecutors wrote to the court, “For decades, Marschall lied and broke the law to provide unapproved treatments and healthcare services. Marschall lied to patients. He lied to authorities. He treated patients without examining them. And he prescribed substances in unusually large doses. Marschall repeated that dangerous playbook in this case: lying to the undercover agent about his credentials, treating her and her children over the phone without a physical exam, and recommending an extremely high dose of his drug.”

The case was investigated by the FDA Office of Criminal Investigation (FDA-OCI).  The case was prosecuted by Assistant United States Attorneys Nicholas Manheim, Michelle Jensen, and Brian Werner

Security News in Brief: San Antonio Man Found Guilty of Drug and Firearm Offenses

Source: United States Department of Justice News

SAN ANTONIO – On Friday, a federal jury convicted Kenton Maurice Haynes, 27, of San Antonio for his role in drug trafficking.

According to court documents and evidence presented at trial, on March 26, 2020, law enforcement officers observed Haynes and Kevin Johnson, Jr., 29, of San Antonio, driving a car in circles in an empty parking lot, parking, and then repositioning several times. Another car pulled up, and the driver exited his vehicle and got into the backseat of Johnson’s car. Officers then executed an arrest of all three of the individuals for a drug transaction that was in progress. At the time of the arrest, Johnson had a loaded handgun and nearly $10,000 in cash. Haynes had a loaded handgun equipped with a high-capacity magazine and approximately $2,700 in cash. Officers also recovered approximately two and a half pounds of marijuana, ecstasy and cocaine during the arrest.

At the time of the arrest, Haynes, who was a documented member of the Bloods and Neighborhood Piru street gangs, was under felony indictment for state offenses. Haynes was also wanted for multiple felony warrants for narcotics and firearms offenses.

At the conclusion of a four-day jury trial, Haynes was found guilty on all three charges alleged: one count of Receipt of Firearm While Under Indictment; one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime; and one count of Possession with Intent to Distribute Marijuana. Haynes is scheduled for sentencing before United States Senior District Judge David A. Ezra on August 8, 2022. He faces a maximum of five years in prison for both his receipt of a firearm while under indictment and his possession with intent to distribute a controlled substance. Haynes also faces a mandatory minimum sentence of five years in prison for possession of a firearm in furtherance of a drug trafficking crime to be served consecutively with any other sentence imposed.

On March 16, 2022, Haynes’ co-defendant, Kevin Johnson, Jr., pleaded guilty before United States Magistrate Judge Henry J. Bemporad to one count of Possession of a Firearm in Furtherance of a Drug Trafficking Crime and one count of Possession with Intent to Distribute Marijuana. Johnson is scheduled for sentencing before Judge Ezra on July 25, 2022. He faces a maximum of five years in prison for possession with intent to distribute a controlled substance with a mandatory minimum sentence of five years in prison for possession of a firearm in furtherance of a drug trafficking crime to be served consecutively with any other sentence imposed.

U.S. Attorney Ashley C. Hoff of the Western District of Texas and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Special Agent in Charge Fred J. Milanowski made the announcement.

The ATF, along with members of San Antonio Texas Anti-Gang Center (TAG), is investigating the case.

The public is encouraged to report San Antonio area gang-related crime to TAG’s intervention and prevention website at stopsanantoniogangs.org.

Assistant U.S. Attorneys Matthew W. Kinskey and William F. Calve are prosecuting the case.

This case is being prosecuted as part of the joint federal, state, and local Project Safe Neighborhoods (PSN) Program, 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.

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Security News in Brief: Jicarilla woman appears in court for voluntary manslaughter charge

Source: United States Department of Justice News

ALBUQUERQUE, N.M. – Laurice Montoya, 37, appeared in federal court on March 28 for a preliminary and detention hearing facing a charge of voluntary manslaughter in Indian Country. Montoya will remain in custody pending trial, which has not been scheduled.

According to a criminal complaint, on Jan. 19, at Montoya’s home on the Jicarilla Apache Reservation, Montoya allegedly began arguing with a man, identified in court records as John Doe, who had been staying with her since December 2021. Montoya was walking behind John Doe when she allegedly pushed him over a couch. Montoya helped John Doe to his feet, but then allegedly hit him twice across the back of his head with a snow shovel.

About four hours later, a friend showed up at the residence and called 911. Emergency Medical Services of the Jicarilla Apache Tribe transported John Doe to the San Juan Regional Medical Center where he later died. Doctors found that John Doe had sustained traumatic brain injury, a rib fracture, severe bruising on his upper body and two cuts on his scalp.

Montoya and John Doe are both enrolled members of the Jicarilla Apache Tribe.

A complaint is only an allegation. A defendant is considered innocent unless and until proven guilty. If convicted, Montoya faces up to 15 years in prison.

The Farmington Resident Agency of the FBI Albuquerque Field Office investigated this case with assistance from the Jicarilla Apache Police and the San Juan County Sheriff’s Office. Assistant United States Attorney Thomas Aliberti is prosecuting the case.

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Security News in Brief: Ambulance Company Pays Over $600K to Settle Allegations it Submitted Improper Claims

Source: United States Department of Justice News

U.S. Attorney Leonard C Boyle, Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services, Office of Inspector General, and Connecticut Attorney General William Tong today announced that AMERICAN MEDICAL RESPONSE OF CONNECTICUT, INC. (“AMR”), has entered into a civil settlement agreement with the federal and state governments and has paid $601,759 to resolve allegations it submitted improper claims to Medicare and Medicaid for ambulance services.  AMR is an ambulance company operating in Connecticut.

There are various types of services related to ambulance billing.  Advanced Life Support services (“ALS”) include services performed by a paramedic at the scene of an emergency response and in the ambulance.  ALS services require a high level of medical monitoring.  Basic Life Support services (“BLS”) are lower acuity services that can be performed by an emergency medical technician-basic, or relate to the transport of the patient in the ambulance to a hospital or other medical facility.  In several towns in Connecticut, local fire departments provide ALS emergency services when a 911 call is dispatched.  AMR is also dispatched to the scene of these calls to provide ambulance transport only (a BLS service).  When the fire department and AMR are on the scene together, it is a “joint response.”

The federal and state governments allege that AMR would often bill Medicare and Medicaid for ALS (paramedic) services when it was only providing the BLS (ambulance transport) services.

For claims submitted to Medicare, billing for ALS services in “joint response” situations would have been proper if AMR had a written billing agreement in place with the local fire departments, which it did not during relevant time period.  For claims submitted to Connecticut Medicaid, in many cases, both AMR and the local fire departments billed Medicaid for ALS/paramedic services.  As a result, Medicaid actually paid twice for the paramedic services, once to the local fire departments and a second time to AMR. 

To resolve the governments’ allegations, AMR paid $601,759, which covers claims submitted to the Medicare and Medicaid from January 2014 through December 2019.

AMR also entered into a consent agreement the with the Connecticut Department of Public Health in which they agreed to cease and desist the prohibited conduct and to pay a $25,000 civil penalty to the State of Connecticut.

This matter was investigated by the Office of Inspector General for the Department of Health and Human Services and the Connecticut Office of the Attorney General.  The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot, and Assistant Attorney General Karla Turekian of the Connecticut Office of the Attorney General.

People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.

Security News in Brief: Idaho Falls Man Pleads Guilty to Enticement of a Child

Source: United States Department of Justice News

POCATELLO – An Idaho Falls man pleaded guilty in federal court to attempted coercion and enticement a child.

According to court records, Joel Hawley Phelps, 63, admitted that, on September 24, 2021, he texted with a person he thought was a 14-year-old girl, but was instead, a law enforcement officer acting undercover.  During their conversations, the undercover officer made clear that she was only 14 years old. Phelps asked to meet with her for the purposes of sexual intercourse, and they agreed to meet at a convenience store for that purpose.

On October 4, 2021, Phelps drove to the agreed-upon convenience store, where he was arrested.  Phelps’ phone was searched and found to contain the messages in which he agreed to meet the fictitious girl for intercourse. Phelps also admitted in an interview with law enforcement that he had traveled to the gas station to have sex with the purported girl.

Phelps is scheduled to be sentenced on June 13, 2022, and faces a maximum penalty of a lifetime in federal prison. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

“In 2022, this office is projected to file more Project Safe Childhood cases than ever before,” stated U.S. Attorney Rafael M. Gonzalez, Jr. “In fact, we expect our case filings to increase 22 percent over the preceding four-year average. What is astounding is that that average was an all-time high. The reason we are able to catch a record number of child predators is that our partner agencies, federal, state, and local, are sending us a record number of investigations,” Mr. Gonzalez added. “Like today’s case, a significant percentage of these child safety investigations are brought to us by ICAC. I commend ICAC and Attorney General Wasden for their work and our partnership. Together, we make Idaho a safer place for children,” he concluded.

“The crimes of child pornography and enticement are particularly vile because of who they target,” Attorney General Lawrence Wasden said. “But these strong local, state and federal partnerships give us the ability to push back and put dangerous criminals in prison. By working these cases whether from cybertip or undercover operation to sentencing, Idaho law enforcement and prosecutors are making a difference in the lives of our children and grandchildren.”

U.S. Attorney Gonzalez commended the cooperative efforts of the Idaho Internet Crimes Against Children (ICAC) Task Force, the Idaho Falls Police Department, and Homeland Security Investigations in Idaho Falls, which led to charges.

ICAC will be hosting a virtual event on April 6, 2022, to provide more information and resources regarding internet safety for children. The program, “Digital Dangers: Helping Idaho Adults Protect Children, will be streamed live via YouTube on April 6 from 7:00 to 8:15 p.m. MDT, and will include information about online risks to children and teens and mental health effects children can suffer as a result of unhealthy online habits. The program will also include a presentation on the federal prosecution of online sexual predators. Presenters include: Chris McCormick, Idaho ICAC Commander; Mark Dalton, Idaho ICAC Investigator; Dr. Noreen Womack, Pediatrician; and Kassandra McGrady, Assistant U.S. Attorney, U.S. Attorney’s Office for the District of Idaho.

The YouTube channel is titled “Office of the Attorney General, State of Idaho” and is available at https://www.youtube.com/channel/UC3ouMPXe9am2bWa2l9g4M6Q.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. As part of Project Safe Childhood, the U.S. Attorney’s Office for the District of Idaho and the Idaho Attorney General’s Office partner to marshal federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.

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