Month: July 2022

Source: United States Department of Justice News

PITTSBURGH, PA — A resident of Pittsburgh, Pennsylvania, has been sentenced in federal court to 25 years imprisonment on his conviction of violating federal narcotics, firearms and health care fraud laws, United States Attorney Cindy K. Chung announced today.

Chief United States District Judge Mark R. Hornak imposed the sentence on William Richardson, age 61, formerly of the City’s Marshall-Shadeland neighborhood.

According to information presented to the court, Richardson was the leader of the large-scale illegal pill distribution network that also involved fraudulent health care fraud claims. Richardson and numerous others were part of the criminal enterprise in which Richardson and his conspirators obtained powerful and addictive prescription pain medication through physicians under the false pretense that they needed the medication and that they intended to use that medication themselves. In fact, they intended to sell the medication for profit to individuals addicted to those medications. Additionally, medication was often paid for through taxpayer-funded health care insurance programs. Thus, the taxpayers ended paying much of the prescription medications that these conspirators sold. Another source of supply for the pills distributed through this network was a pill supplier from the Detroit area named Kavon Dawkins.

Richardson was captured on court-authorized intercepted communications coordinating this enterprise, which involved the use of a minor to transport some of the pills and also involved actual and threatened use of violence. The court-authorized intercepted communications included a threat to harm a Pittsburgh Bureau of Police Detective who originated the investigation of Richardson.

Additionally, Richardson sold pills to an undercover Pittsburgh Police Officer, and when law enforcement officers executed a search warrant at Richardson’s home, they found a cache of firearms and ammunition. Richardson was precluded from possessing firearms or ammunition under federal law before of previous felony convictions.

Assistant United States Attorney Brendan T Conway prosecuted this case on behalf of the government.

United States Attorney Chung commended the Federal Bureau of Investigation, the Drug Enforcement Administration, and the Pittsburgh Bureau of Police for the investigation leading to the successful prosecution of Richardson.

Source: United States Department of Justice News

OKLAHOMA CITY – A three-year investigation into an Oklahoma prison-based drug trafficking organization has resulted in 21 defendants being convicted across multiple federal cases.  The wrap-up of this investigation and prosecution is jointly announced by Robert J. Troester, United States Attorney, Edward Chavez, DEA Special Agent in Charge of the Dallas Field Office, Christopher Altemus, IRS Criminal Investigations, Special Agent in Charge of the Dallas Field Office, and Wade Gourley, Chief of Police, Oklahoma City Police Department.

Public records reflect that over the course of this investigation, federal, state, and local law enforcement identified and targeted a drug trafficking organization run by Todd Mathew Strand, who was an Oklahoma Department of Corrections inmate already serving a 30-year state sentence for prior drug trafficking activity.  Strand, with the assistance of fellow inmate Hugo Gonzalez, Jr., ran his operation from inside state prison using contraband cell phones.  The pair then relied on a network of distributors and couriers on the streets to distribute methamphetamine and heroin and collect proceeds from those sales.  Further, Strand and his organization gathered firearms (often in exchange for drugs), with at least some of those firearms intended to be exported to Mexico.  In one instance, a search of a storage facility controlled by one of Strand’s associates resulted in the seizure of 13 assorted assault rifles, shotguns, parts, and ammunition that had been gathered for exportation to Mexico.

Crimes for which the defendants were convicted include drug distribution, drug conspiracy, money laundering, maintaining drug-involved premises, and illegal firearms possession.  Strand also ordered acts of violence, including acts against his own associates, during the course of the conspiracy.

In the end, Strand was sentenced to serve 384 months (32 years) in federal prison. Strand’s second in command, Gonzalez, Jr., was sentenced to serve 264 months (22 years) in federal prison.  Numerous other defendants with roles ranging from mid-level dealers and couriers to significant drug traffickers received sentences between 192 months and 36 months.  Collectively, the 21 defendants received sentences of more than 187 years in federal prison.  In addition, law enforcement seized approximately 46 pounds of methamphetamine and heroin, more than 50 firearms, and $35,000 in drug proceeds.

“This sprawling drug trafficking operation was primarily operated by inmates using contraband cell phones from inside state prison walls,” said United States Attorney Robert J. Troester.  “Thanks to the dedicated work and coordinated efforts of law enforcement, this drug trafficking network was stopped, and 21 defendants will collectively serve more than 18 decades in prison. I commend each of our law enforcement partners who worked together with prosecutors to achieve this outstanding result.”

“Drug trafficking, on our streets and in our prisons, impacts the safety and security of all of our lives,” said Eduardo A. Chavez, Special Agent in Charge of the DEA Dallas/Oklahoma.  “These convictions and prison terms should send a strong message to others that drug trafficking and its related violent crimes are not welcome here. DEA and our partners will continue to identify, disrupt, and destroy, these criminal organizations that choose to distribute drugs.”

“The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs,” said Gerardo Gomez, Assistant Special Agent in Charge, IRS Criminal Investigation, Dallas Field Office. “Without these ill-gotten gains, the traffickers could not finance their organizations. The significant sentencings in this investigation should send a clear message to would-be criminals—you will be caught, and you will be punished. We, along with our law enforcement partners, and the United States Attorney’s Office, continue to do our part to put drug traffickers in jail or in this case, keep them in jail.”

“This case demonstrates just how dangerous and determined some criminals can be,” said Wade Gourley, Chief of the Oklahoma City Police Department. “We are thankful to have law enforcement partners as committed as we are to the safety of the residents who depend on us all.”

This investigation was spearheaded by the DEA with assistance from numerous other law enforcement partners, including the Oklahoma City Police Department, the IRS Criminal Investigative Division, the Bureau of Alcohol, Tobacco, Firearms and Explosives, Sallisaw Police Department, the Oklahoma Bureau of Narcotics, the Moore Police Department, the Edmond Police Department, Oklahoma Highway Patrol, the Oklahoma County District Attorney’s Office, and the Oklahoma Department of Corrections.

These prosecutions were 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.

Assistant U.S. Attorneys Thomas Snyder and Jason Harley prosecuted these cases.

Reference is made to public filings for more information.

Source: United States Department of Justice News

DAYTON, Ohio – Jermaine Treadwell, 31, of Centerville was sentenced in U.S. District Court here to 57 months in prison for possessing cocaine with intent to distribute it. FBI’s Southern Ohio Safe Streets Task Force, a multi-jurisdiction agency which includes FBI, Dayton Police Department, Montgomery County Sheriff’s Office, and Trotwood Police Department, investigated Treadwell.

According to court documents, in May 2021 law enforcement conducted a court authorized search of Treadwell’s residence in Centerville—a residence he shared with his girlfriend and three children. Agents found more than 13 grams of cocaine, a scale, drug cutting agents, approximately $17,000, ammunition, and multiple loaded firearms as well as a key to a storage unit. Law enforcement searched the storage unit and discovered $60,000, a scale with drug residue, cutting agents, and a kilogram hydraulic press with metal molds containing fentanyl residue.

“His actions helped continue the cycle of addiction in his own community,” said Kenneth L. Parker, United States Attorney for the Southern District of Ohio. “The presence of children in this environment exposes another generation to the specter of addiction.”

Treadwell pleaded guilty on October 14, 2021, to possession with intent to distribute cocaine.

Joining Mr. Parker in announcing the sentence was J. William Rivers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Division, Montgomery County Sheriff Rob Streck, Dayton Police Chief Kamran Afzal, and Trotwood Police Chief Erik Wilson. Senior U.S. District Judge Walter H. Rice imposed the sentence on July 14. Assistant U.S. Attorney Ryan A. Saunders represented the United States in this case.

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Source: United States Department of Justice News

Jacksonville, Florida –United States Attorney Roger B. Handberg announces the return of an indictment charging Stephan Leon Marshall (34, Jacksonville) with possessing two firearms and ammunition as a convicted felon. If convicted, he faces a maximum penalty of 10 years in federal prison. The indictment also notifies Marshall that the United States intends to forfeit the firearms and ammunition traceable to the offense. Marshall was arrested on July 11, 2022, in Jacksonville. He made his initial appearance on July 14, 2022, before United States Magistrate Judge Patricia D. Barksdale and was ordered detained pending trial.

According to the indictment, on April 10, 2022, Marshall was in possession of two firearms and ammunition. At the time of the incident, Marshall had previous felony convictions for possessing a firearm as a convicted felon, aggravated fleeing, and two burglaries. As a previously convicted felon, Marshall is prohibited from possessing firearms or ammunition under federal law.

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 Bureau of Alcohol, Tobacco, Firearms and Explosives and the Jacksonville Sherriff’s Office. It will be prosecuted by Assistant United States Attorney John Cannizzaro. The forfeiture will be handled by Assistant United States Attorney Mai Tran.

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.

Source: United States Department of Justice News

SAVANNAH, GA:  A U.S. Army soldier stationed at Fort Stewart awaits sentencing after admitting she led a “prolific fraud scheme” in which she and others illegally raked in millions of dollars from COVID-19 relief programs and federal student loan forgiveness.

Dara Buck, a/k/a Dara Butler, 39, of Ladson, S.C., a U.S. Army Chief Warrant Officer 2 stationed at Fort Stewart, pled guilty to an information charging her with Conspiracy to Commit an Offense Against the United States, said David H. Estes, U.S. Attorney for the Southern District of Georgia. The guilty plea subjects Buck to a sentence of up to five years in prison and substantial financial penalties and restitution, followed by up to three years of supervised release after completion of any prison term. There is no parole in the federal system.

“Dara Buck swore an oath to protect and defend her country, and then engaged in a massive scheme to defraud the nation’s taxpayers,” said U.S. Attorney Estes. “She is now being held accountable for this fraud and betrayal, thanks to the diligence of our civilian and military law enforcement partners.”

As spelled out in the Information and plea agreement, from August 2017 through May 2021, Buck led a conspiracy to fraudulently obtain funding from the Coronavirus Aid, Relief, and Economic Security (CARES) Act’s Paycheck Protection Program (PPP), and to secure the fraudulent discharge of federal student loans using falsified disability claims.

Altogether, Buck admitted submitting more than 150 fraudulent PPP loan applications to the Small Business Administrating for herself and others in the conspiracy, resulting in more than $3.5 million in fraudulent disbursements from banks to members of the conspiracy. Buck directly received fraudulently obtained PPP funding, or was paid by conspirators for submitting their fraudulent applications.

In addition, conspirators paid Buck to submit falsified U.S. Department of Veterans Affairs certifications for total and permanent disability to the U.S. Department of Education in order to fraudulently secure the discharge of more than a dozen student loans totaling more than $1 million.

Sentencing in the case will be held before U.S. District Court Judge R. Stan Baker after completion of a pre-sentencing investigation by the U.S. Probation Office.

“Falsifying documents to gain access to SBA program funds intended for the nation’s small businesses is reprehensible,” said SBA OIG’s Eastern Region Special Agent in Charge Amaleka McCall-Brathwaite. “Our Office will remain relentless in the pursuit of fraudsters who seek to exploit SBA’s vital economic programs. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and commitment to seeing justice served.”

SBA’s Acting General Counsel, Therese Meers, stated “This is yet a further example of the significant results achieved through the joint efforts of SBA and other Federal agencies to uncover, and forcefully respond to, fraud committed by individuals seeking to abuse SBA’s assistance programs. Identifying, and aggressively pursuing, fraudulent activity which harms not only the Agency’s financial assistance programs, but the public interest, in general, and, in particular, those in our communities that are the intended beneficiaries of such programs, is one of SBA’s top priorities.”

“CW2 Buck choose to dishonor the U.S. Military and defraud the American people she swore to protect and defend,” stated Special Agent in Charge Cynthia A. Bruce, Department of Defense Office of Inspector General, Defense Criminal Investigative Service (DCIS), Southeast Field Office. “DCIS with our investigative counterparts will continue to diligently investigate those who engage in corruption and other illegal acts.”

“This defendant falsified VA disability documents that were, in turn, used to fraudulently discharge federal loans at the taxpayers’ expense for someone who wasn’t even a veteran,” said Special Agent in Charge David Spilker with the Department of Veterans Affairs Office of Inspector General’s Southeast Field Office. “The VA OIG is committed to investigating anyone who would exploit VA’s programs and services and will continue to work closely with our law enforcement partners to hold wrongdoers accountable.”

“The Treasury Inspector General for Tax Administration is committed to protecting the nation’s tax system from waste, fraud and abuse,” said J. Russell George, Treasury Inspector General for Tax Administration. “Abusing a Federal program designed to assist Americans in need by fraudulently applying for loans has and will continue to be aggressively investigated. I want to thank our law enforcement partners and the U.S. Attorney’s office for their commitment to this goal.”

“I’m proud of the OIG Special Agents and our law enforcement colleagues whose efforts brought about today’s action,” said Reginald J. France, Special Agent in Charge of the U.S. Department of Education Office of Inspector General’s Southeastern Regional Office. “The OIG is committed to fighting student aid fraud in all its forms and we will continue to pursue anyone who participants in these types of crimes.”

The case is being investigated by the Small Business Administration Office of Inspector General; the Defense Criminal Investigative Service; U.S. Army Criminal Investigation Division, the U.S. Department of Education Office of Inspector General; the Department of Veterans Affairs Office of Inspector General; and, the U.S. Treasury Inspector General for Tax Administration; and prosecuted for the United States by Assistant U.S. Attorney Jonathan A. Porter and former Assistant U.S. Attorney Patrick J. Schwedler.

Anyone with information about allegations of attempted fraud involving COVID-19 can report it by calling the Department of Justice’s National Center for Disaster Fraud (NCDF) Hotline at 866-720-5721 or via the NCDF Web Complaint Form at: https://www.justice.gov/disaster-fraud/ncdf-disaster-complaint-form.