Month: June 2022

Source: United States Department of Justice News

Hattiesburg, Miss. – A Taylorsville man was sentenced to 120 months in federal prison, followed by 5 years of supervised release, for conspiracy to distribute methamphetamine, announced U.S. Attorney Darren LaMarca and Special Agent in Charge Brad Byerley of the Drug Enforcement Administration.   

According to court documents, in April of 2020, DEA agents intercepted communications among Harold Keyes, Jr., 29, and his co-defendants conspiring to distribute methamphetamine.  Specifically, on April 24, 2020, agents intercepted methamphetamine related communications occurring in and around a residence in Hattiesburg.   Keyes was stopped by Hattiesburg Police Department for a traffic violation and officers discovered over a kilogram of methamphetamine wrapped in 3 bundles hidden in the front of Keyes’s pants.    

In addition to the prison sentence, Keyes was ordered to pay a $5,000 fine.

The case is the result of an extensive investigation, dubbed “Don’t Tell on Me Bro,” which began as an operation targeting illegal drug trafficking in the Hattiesburg, Mississippi area. “Don’t Tell on Me Bro” is part of an Organized Crime Drug Enforcement Task Forces (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten the United States by using a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

The case was investigated by the Drug Enforcement Administration, Lamar County Sheriff’s Office, the Mississippi Bureau of Narcotics, Hattiesburg Police Department, Forrest County Sheriff’s, and Columbia Police Department. 

Source: United States Department of Justice News

DES MOINES, IA – Kevin Jeffrey Stiller, age 59, of Ankeny, was sentenced Tuesday, June 7, 2022, to 18 months in prison for failing to file income tax returns. Stiller pleaded guilty on February 3, 2022, to two counts of failure to file income tax returns, one for each of the calendar years 2015 and 2017. Senior Judge James E. Gritzner imposed a 9-month prison sentence on each count, to be served consecutively, that is one after the other. Following completion of his prison term, Stiller will be on supervised release for one additional year. Stiller is responsible for paying his tax liability in full.

Stiller is the owner and operator of Spruce Hill Tree Service and he received taxable income from this business. Stiller knew he was required to file federal income tax returns for the years 2015 and 2017 and he willfully failed to do so. Stiller additionally failed to file federal income tax returns for the years 2008 – 2014, 2016, 2018, and 2019.

“The foundation of our tax system is the voluntary filing of tax returns by each citizen required to do so. Mr. Stiller flagrantly disregarded this basic duty for nearly 15 years”, stated Tyler Hatcher, Special Agent in Charge for IRS Criminal Investigation. “This sentence highlights the seriousness of filing income tax returns timely and accurately as prescribed by law otherwise you will be held accountable for not doing so.”

United States Attorney Richard D. Westphal of the Southern District of Iowa made the announcement. The Internal Revenue Service – Criminal Investigations investigated the case. The case was prosecuted by Assistant United States Attorney Adam J. Kerndt.

Source: United States Department of Justice News

Oxford, MS – An emergency room doctor from Golden, Mississippi has been sentenced to almost 3 years in prison today for failing to pay his taxes.

According to court documents, and evidence presented at trial, Dr. Kevin L. Crandell was an emergency room physician who earned $30,000 to $40,000 per month and stopped paying personal income taxes in 2007. During the years 2006 through 2012, Crandell accrued approximately $972,493 in tax debt, including penalties and interest. At trial, the Government presented evidence that Crandell submitted a false and fraudulent IRS Form 433-A in 2014 to the Internal Revenue Service in an attempt to negotiate a payment plan for his outstanding tax liabilities. Crandell falsely represented on that form that his expenses exceeded his income. Crandell also failed to list assets and business bank accounts, which he was using for personal expenses. Though Crandell attempted to blame a tax resolution service he hired in 2010, the evidence at trial showed that Crandell intentionally manipulated his pay stubs to show a decrease in his 2014 annual income before submitting the pay stubs to the tax resolution service.

U.S. District Court Judge Sharion Aycock heard comments from the defendant, his counsel and the United States before sentencing Crandell to 33 months in prison and restitution in the amount of $972,493.

“It is fundamentally unfair to the millions of Americans who pay their taxes each year for others to purposely and flagrantly evade their tax responsibilities and obligations,” remarked U.S. Attorney Clay Joyner. “Today’s sentence provides a measure of accountability for one individual who deliberately defrauded the IRS and hopefully sends a message to those who would seek to evade their legitimate tax obligations.”

“To build faith in our nation’s tax system, honest taxpayers need to be reassured that everyone is paying their fair share,” said James E. Dorsey, Special Agent in Charge, IRS Criminal Investigation, Atlanta Field Office.  “The IRS Criminal Investigation together with the Department of Justice, will investigate and prosecute those who violate our tax system.”

The IRS investigated the case.  The case was prosecuted by Assistant U.S. Attorneys Clay Dabbs and Philip Levy.

Source: United States Department of Justice News

SCRANTON- The United States Attorney’s Office for the Middle District of Pennsylvania announced that Martin Perez-Amaro, age 33, of Mexico, was indicted yesterday by a federal grand jury and charged with illegal reentry into the United States.

According to United States Attorney John C. Gurganus, Perez-Amaro had been deported in September 2018, and is alleged to have illegally reentered the United States sometime after that date.  He was located in Lackawanna County on May 8, 2022. 

This case was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO) and is being prosecuted by Assistant U.S. Attorney Jeffery St John.

The maximum penalty under federal law for this offense is 2 years of imprisonment, a term of supervised release following imprisonment, and a fine. A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.

Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.

# # #

Source: United States Department of Justice News

ABINGDON, Va. – Sovah Health has agreed to pay the United States $4.36 million to settle claims that the hospital system violated the Controlled Substances Act (CSA) on numerous occasions between 2017 and 2020.  As part of the resolution, Sovah Health further agreed to be subject to a period of four years of increased compliance and oversight during which any failure to comply with its obligations may result in contempt of court findings that could result in additional monetary sanctions and injunctive relief.  The settlement is the third-largest civil penalty ever obtained from a hospital system under the Controlled Substances Act and the largest ever in the Fourth Circuit.  

The claims center around Sovah Health’s failure to have effective controls in place to prevent the diversion of powerful painkilling prescription opioids. Sovah Health is a regional health care delivery system comprised of a hospital with two campuses – Danville and Martinsville. In 2017, Danville (formerly Danville Regional Medical Center) and Martinsville (formerly Memorial Hospital of Martinsville & Henry County) united to form Sovah Health.

From 2017 to 2019, a Sovah Health employee diverted more than 11,000 Schedule II controlled substances from Sovah Health. From January to May 2020 a second Sovah Health employee tampered with Fentanyl vials and hydromorphone injectables by replacing the controlled substance with saline and diverting the controlled substance. The United States alleged Sovah Health failed to provide effective controls and procedures to guard against the diversion of controlled substances, filled orders for controlled substances without a system in place to disclose suspicious orders of controlled substances, and failed to maintain readily retrievable records of controlled substances.

“As opioid overdose deaths skyrocket, it is critical that health care companies are held accountable when they fail to effectively safeguard these powerful prescriptions within their facilities,” said U.S.  Attorney Christopher R. Kavanaugh for the Western District of Virginia. “The oversight provided by this resolution will ensure future compliance involving these important but potentially deadly substances, and the United States Attorney’s Office for the Western District of Virginia will continue to vigorously pursue these cases with our federal and local partners in order to protect Virginia’s communities.”

“Today’s settlement sends a clear message to all registrants that it is essential to maintain effective controls to prevent the diversion of controlled substances” said DEA Washington Division Special Agent in Charge Jarod Forget.  “DEA is dedicated to combat the prescription drug abuse problem in Virginia and throughout the country and to hold all DEA registrants accountable.”

“The FDA oversees the U.S. drug supply to ensure that patients receive medicines that are safe and effective,” said Special Agent in Charge George A. Scavdis of the FDA Office of Criminal Investigations Metro Washington Field Office. “We will continue to protect the public health by holding accountable health care companies that fail to safeguard their prescription drug inventory and thereby compromise their patients’ health and comfort.”

“With opioid deaths and overdoses at record-breaking highs, especially across Southside Virginia, there must be zero tolerance of trusted health professionals engaging in drug diversion,” said Colonel Gary T. Settle, Virginia State Police Superintendent. “For the safety and protection of Virginia’s communities, our Virginia State Police Drug Diversion special agents, in collaboration with our local and federal public safety partners, will continue to aggressively pursue investigations related to the illegal distribution of Fentanyl and other prescription drugs.”

The agreement, which is available here, resolves Sovah Health’s potential civil and criminal liability based on the investigation. As part of the resolution, Sovah Health has committed to additional compliance measures including, but not limited to, having cameras at all Automated Dispensing Machines to capture the activity of placing/removing controlled substances; promptly reporting losses and diversion of controlled substances; taking and reporting disciplinary action taken against employees found to have been responsible for theft, diversion or loss of controlled substances; maintaining a mandatory random drug testing program for employees; and conducting a full physical inventory of all federally scheduled II-V controlled substances more frequently than required by law.

Assistant U.S. Attorneys Justin Lugar and Randy Ramseyer represented the United States in this matter.

The investigation was conducted by the Food and Drug Administration – Office of Criminal Investigations, the Drug Enforcement Administration – Roanoke Resident Office Diversion Group, and the Virginia State Police.