Month: January 2023

Source: United States Department of Justice News

JOHNSTOWN, Pa. – A resident of Clearfield, PA pleaded guilty in federal court to charges of violating federal narcotics laws, United States Attorney Cindy K. Chung announced today.

Toby Lee Coker, age 37, of Clearfield, PA, pleaded guilty to Counts Two and Eight of the Superseding Indictment before Senior United States District Judge Kim R. Gibson.

In connection with the guilty plea, from July 2019 to June 2020, Coker did conspire to distribute and possess with the intent to distribute 500 grams or more of a mixture and substance containing a detectable amount of methamphetamine. Further, on or about February 20, 2020, Coker did distribute a quantity of methamphetamine.

Judge Gibson scheduled sentencing for May 30, 2023. The law provides for a minimum sentence of 15 years in prison and maximum sentence of life in prison, a fine of $20,000,000 or both, for Count Two and a maximum sentence of 30 years in prison, a fine of $2,000,000 or both, for Count Eight. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.

Assistant United States Attorney Maureen Sheehan-Balchon is prosecuting this case on behalf of the government.

The Drug Enforcement Administration and the Pennsylvania State Police conducted the investigation that led to the prosecution of Coker. Additional agencies participating in this investigation include the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, Homeland Security Investigations, Pennsylvania Office of the Attorney General, Clearfield County District Attorney’s Office, Erie County District Attorney’s Office, Millcreek Police Department, Erie Bureau of Police, and other local law enforcement agencies.

This prosecution is a result of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles high-level drug traffickers, money launderers, gangs, and transnational criminal organizations that threaten communities throughout the United States. OCDETF uses a prosecutor-led, intelligence-driven, multi-agency approach that leverages the strengths of federal, state, and local law enforcement agencies against criminal networks.

Source: United States Department of Justice News

KANSAS CITY, KAN. – A Kansas woman was sentenced to 33 months in prison for bank fraud. 

According to court documents, Stephenie Stites, 52, of Overland Park worked as the accounts payable clerk for Norbrook Inc. In 2020, Norbrook noticed accounting discrepancies and when confronted, Stites admitted to making approximately $72,000 in unauthorized charges on the company’s credit card. A full review showed she’d embezzled more than $712,000 from Norbrook by creating two fake companies and manipulating invoices. As indicated in her plea agreement, Stites spent the stolen money to pay for personal expenses such as home and vehicle expenses, travel, hotels, real estate, and other disbursements. 

A federal judge sentenced Stites to 33 months in prison to be followed by four years of supervised release and ordered her to pay $712,890.27 in restitution to the victim company. 

Charles Dayoub, Special Agent in Charge of the Kansas City Office of the FBI said, “Stites perpetuated a scheme, misappropriating funds to fake companies and misusing company credit cards for personal gain.  Her actions resulted in the embezzlement of over $700,000 and violated the trust placed in her by her employer.  This sentencing demonstrates the FBI’s commitment to investigate financial fraud and to hold those individuals accountable for their actions.”

The Federal Bureau of Investigation (FBI) investigated this case.

Assistant U.S. Attorney Ryan J. Huschka prosecuted the case.

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Source: United States Department of Justice News

OKLAHOMA CITY – United States Attorney Robert J. Troester announced today that the Western District of Oklahoma (WDOK) collected $53,584,692 in criminal and civil actions and through asset forfeiture in Fiscal Year 2022.

Of the total amount collected and exclusively worked by the district, $3,245,900 was for criminal actions and $2,952,310 for civil action.  The WDOK also worked with components of the Department of Justice and other U.S. Attorney’s Offices to jointly collect $40,997,638 in civil cases.  The WDOK collected $6,388,844 through asset forfeiture by partnering with agencies and divisions.  Forfeited assets deposited into the DOJ Assets Forfeiture Fund are used to restore funds to crime victims as well as a variety of law enforcement purposes.

“In addition to keeping communities safe, my office prioritizes the recovery of financial losses suffered by victims of crime and by taxpayers who have lost funds through fraud on the government or default on loans,” said U.S. Attorney Robert J. Troester.  “I am proud the talented women and men in my office who use the tools Congress has provided to seek to achieve financial justice in criminal and civil litigation involving the United States.”

Highlights of the Western District of Oklahoma’s FY2022 collection efforts include:

• After a collaborative investigation with other DOJ components, Balfour Beatty Communities LLC (BBC), one of the largest providers of privatized military housing to the U.S. Armed Forces, paid $35.2 million to resolve claims that they defrauded the U.S. Air Force, U.S. Army, and U.S. Navy by falsifying satisfaction of performance objectives to obtain incentive payments to which it was not entitled.
• After a voluntary disclosure, Oklahoma Heart Hospital South, LLC paid $1,151,770.50 to resolve allegations it submitted false claims for Intensive Cardiac Rehabilitation services billed to Medicare. 
• Comanche County Hospital Authority (“CCHA”) and two physicians paid $550,000 to resolve civil penalty claims related allegations that the prescriptions issued by Drs. Harden and Varkey were outside the usual course of professional practice and that CCHA neglected to implement appropriate prescribing policies and procedures.
• INTEGRIS ProHealth, Inc., and its parent company, INTEGRIS Health, Inc. paid $120,000 to resolve civil penalty claims stemming from allegations that Integris Baptist Medical Center Pharmacy violated the Comprehensive Drug Abuse Prevention and Control Act of 1970 and its regulations by failing to timely notify DEA regarding thefts or significant losses of Schedule II controlled substances. 
• A $100,000.00 forfeiture money judgment against Rodger Bramley was collected in full on June 17, 2022.  In 2013, Bramley was indicted with dozens of other individuals for their participation in an illegal gambling business, Legendz Sports.  In 2015, a federal jury convicted Bramley of racketeering conspiracy, conducting an illegal gambling business, and money laundering conspiracy. 

The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims Fund, which distributes the funds collected to federal and state victim compensation and victim assistance programs.

Source: United States Department of Justice News

NEW ORLEANS, LOUISIANA – U.S. Attorney Duane A. Evans announced that DANIELLE COLEMAN, age 39, of New Orleans, Louisiana, pled guilty on January 19, 2023 before United States District Judge Carl J. Barbier to Theft of Government Funds, in violation of Title 18, United States Code, Section 641.

According to documents filed in federal court, COLEMAN’s grandmother was authorized to receive Social Security Administration (“SSA”) Title II – Retirement Survivor Insurance (RSI) Benefits up until her death which occurred on September 8, 2009. An investigation by special agents with the SSA, Office of Inspector General and United States Department of Treasury, Inspector General for Tax Administration, revealed COLEMAN was in possession of her late grandmother’s ATM card and began withdrawing money from her account after her death. COLEMAN used her late grandmother’s ATM card to pay for her own personal expenses knowing she was not entitled to those Social Security benefits. COLEMAN failed to notify the SSA of her grandmother’s death and took approximately $86,280.00 in SSI benefits from her account. An additional $1,200.00 of COVID-19 stimulus funds were erroneously deposited into COLEMAN’s grandmother’s account, and COLEMAN also used these funds for personal expenses.

COLEMAN faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, a fine of up to $250,000.00, and a mandatory $100 special assessment fee.

U.S. Attorney Evans praised the work of the Social Security Administration, Office of the Inspector General and the United States Department of Treasury, Inspector General for Tax Administration.  The prosecution of this case is being handled by Assistant U.S. Attorneys Rachal Cassagne and Spiro Latsis.

Source: United States Department of Justice News

A man who was discovered transporting illegal immigrants across northeastern Oklahoma pleaded guilty this week in federal court.

Alfonso Solis-Melendez, 33, a Mexican national, pleaded guilty to transportation of illegal aliens.

The defendant and his 11 passengers were discovered after an Oklahoma Highway Patrol Trooper stopped the minivan they were traveling in for speeding on the Will Rogers Turnpike. Seven were riding in seats, and the others were lying across the floor of the minivan while it was traveling at highway speeds. Through the investigation, agents learned the defendant was paid to transport the immigrants from Albuquerque, New Mexico, to St. Lewis, Missouri. Passengers were from Mexico, El Salvador, Bolivia, and Guatemala.

In August 2022, Solis-Melendez was also charged by the state of Texas with similar crimes.

U.S. Immigration and Customs Enforcement’s Enforcement and Removal Operations and Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney William Rubens prosecuted the case.