PHOENIX, Ariz. – Last week, Kevin Dean McCoy, 28, of Tucson, Ariz., was sentenced by Senior U.S. District Judge James A. Teilborg to 15 years in prison. Silvester Ruelas, 50, of Peoria, Ariz., was previously sentenced to 20 years in prison. Two other co-defendants, Amber Worrell and Peggy Gomez, were sentenced to 10 years in prison and 5 years in prison, respectively. All four defendants pleaded guilty to conspiracy to distribute controlled substances and launder proceeds from drug distribution.

     Between 2015 and 2017, the defendants used the vendor name “Iceman21” to advertise and sell heroin, methamphetamine, and cocaine on various dark web marketplaces, including AlphaBay, Hansa, and Dream Market. The investigation revealed that the defendants were using the United States Postal Service to ship drugs from the Phoenix metropolitan area to locations throughout the United States. During the investigation, the United States Postal Inspection Service seized parcels containing illegal drugs that were en route to Arkansas, California, Florida, Georgia, Kansas, Minnesota, Missouri, Montana, Nevada, New York, North Carolina, Oregon, Pennsylvania, and Texas. To conceal and launder proceeds they generated through drug distribution, the defendants used encrypted technology, sold cryptocurrency through peer-to-peer exchangers, and created bank accounts for non-existent businesses. During the investigation, law enforcement officials seized a Seattle Seahawks Super Bowl XL ring, numerous gold, silver, and platinum bars, and an extensive collection of firearms, including a Texas Weapons System AK-47, a Mossberg 12 gauge shotgun, and a .50 caliber Bohica sniper rifle.

     “Our office is committed to working closely with our agency partners to aggressively investigate and prosecute drug traffickers,” said U.S. Attorney Michael Bailey. “Hiding behind computer keyboards and using our mail system to move their drugs will not shield them from lengthy prison sentences.”

     “Drug traffickers using the dark web feel a sense of security with the anonymity to sell their poisons throughout the world,” said Doug Coleman, Special Agent in Charge of the Drug Enforcement Administration (DEA) in Arizona. “This investigation clearly demonstrates they aren’t safe, they aren’t anonymous, and they can’t evade justice. DEA and our partners will relentlessly pursue criminals who prey on our citizens, no matter where they are and no matter what means they use to distribute their illicit and deadly products.”

     “Homeland Security Investigations (HSI) has continued to demonstrate a commitment to combating illicit activities spread by online dark web markets,” said Scott Brown, HSI Special Agent in Charge for the Phoenix office. “By joining forces with our law enforcement partners, we are utilizing all tools and authorities to investigate and dismantle narcotics trafficking and financial crimes that plague the internet. As this case demonstrates, there is no safe dark web marketplace beyond our investigative reach.”

     “This drug trafficking organization used sophisticated means to sell and distribute dangerous drugs throughout the country. No matter the methods used by criminals, IRS-CI Special Agents have the skills needed to investigate high tech drug and money laundering schemes,” said Special Agent in Charge Ismael Nevarez, Jr., of the Phoenix Field Office of IRS - Criminal Investigations.

     “This investigation once again showcases the excellent collaboration between the United States Postal Inspection Service and other law enforcement agencies. Through these partnerships, we continue working to keep our communities safe from the spread of illegal narcotics purchased through the dark web. We continue to challenge the anonymous nature of the dark web, proving time and again you are never truly anonymous,” stated Acting Inspector in Charge Jessica Wagner of the United States Postal Inspection Service.

     The investigation was conducted by the Drug Enforcement Administration, Homeland Security Investigations, Internal Revenue Service - Criminal Investigations, and the United States Postal Inspection Service, with assistance from the Scottsdale, Mesa, and Peoria Police Departments, as part of an operation supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that provides supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking, weapons trafficking, and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.

     The case was prosecuted by Matthew Binford and Carolina Escalante, Assistant United States Attorneys, District of Arizona, Phoenix.

WASHINGTON — The Justice Department announced today a settlement agreement with the Pasco County School District in Florida to resolve the department’s investigation into alleged discrimination against students with disabilities in school discipline, threat assessment practices and referrals of students to law enforcement. The department conducted its investigation under Title II of the Americans with Disabilities Act (ADA).

The department’s investigation found that the district routinely suspended students or called police for disability-related behavior that could have been addressed through proper support and de-escalation. The investigation also found problems with how the district conducted threat assessments (a process to identify, evaluate and respond to potential school security concerns). When these assessments involved students with disabilities, the district systematically failed to consider the relationship between a student’s disability and their behavior, and whether appropriate support for the student would address the behavior that prompted the assessment. Instead, the district often unnecessarily referred students to law enforcement to be arrested or to start the process for an involuntary admission into a mental health facility under Florida’s Baker Act. 

The agreement requires the district to end discriminatory practices under which students lost hours of classroom time, were treated unfairly in the threat assessment process, and even faced the prospect of being arrested or sent to a mental health facility against their will. The department will monitor the district’s implementation of the agreement and will also continue to monitor and enforce an ongoing desegregation order that covers the district.

“As we mark the 70th anniversary of Brown v. Board of Education, we remain committed to disrupting the school to prison pipeline and ensuring that the doors of academic opportunity are open to all,” said Assistant Attorney General Kristen Clarke of the Justice Department’s Civil Rights Division. “Too often schools rely on suspensions and law enforcement to address disability-related behaviors of students, without considering what they can do to help those students stay in and succeed at school. Equal participation in schools for students with disabilities means providing those students with the services and interventions they need to succeed. This agreement is part of our ongoing efforts across the country to combat practices that push students out of the classroom.”

“Each and every child deserves an equal opportunity to learn and thrive,” said U.S. Attorney Roger Handberg for the Middle District of Florida. “Our office, in partnership with the department’s Civil Rights Division, will vigorously investigate and enforce the protections of the ADA to end discrimination on the basis of disability in all settings, including in our public schools. I am heartened by the district’s commitment to this significant agreement, which will undoubtedly improve the education and everyday lives of students with disabilities in our community.”

The district cooperated with the department throughout the investigation and has committed to improving its services for students with disabilities. Among other actions, under the agreement, the district will:



Ensure that district personnel accurately assess disability-related behaviors, identify appropriate interventions for those behaviors and monitor the implementation of those interventions;

Hire a consultant with expertise in behavior interventions who will assist in updating its policies and practices;

Update its student code of conduct, threat assessment process and process for calling law enforcement to ensure that the district is adequately considering disability-related behaviors and modifying its policies and procedures to avoid discrimination based on disability;

Develop appropriate trainings to help schools implement the agreement and respond appropriately to student behavior and

Improve data collection and analysis systems and regularly evaluate data to ensure students with disabilities are not excluded from school for disability-related behaviors through the district’s discipline, threat assessment and law enforcement referral practices.



The enforcement of Title II of the ADA is a top priority of the Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt, and additional information about the work of the Educational Opportunities Section is available at www.justice.gov/crt/educational-opportunities-section. Members of the public may report possible civil rights violations at www.civilrights.justice.gov/report/.

The U.S. Attorney’s Office for the Middle District of Florida worked in collaboration with the Civil Rights Division’s Educational Opportunities Section to investigate this case. Information about the Civil Rights Unit of the U.S. Attorney’s Office for the Middle District of Florida and a complaint form for the unit can be found at www.justice.gov/usao-mdfl/civil-rights.

View the department’s letter to the district here. 

View the settlement agreement here.

View settlement agreement summary here.

Tacoma – A 48-year-old Longview, Washington, man was arrested this morning on a criminal complaint charging seven counts of making interstate threats, announced U.S. Attorney Nick Brown.  Mark Leonetti has allegedly repeatedly called U.S. Senators and members of the House of Representatives and left voicemails threatening bodily harm.  Leonetti will appear today in U.S. District Court in Tacoma.

“Making horrific and graphic threats to harm is always unacceptable, and we must always take threats of political violence seriously. In this instance, Mr. Leonetti refused to stop his conduct despite contact with law enforcement and mental health personnel,” said U.S. Attorney Brown.  “We acted now because it has become clear it is the only way to safeguard the community and those serving it.”

According to the criminal complaint, in 2021, Leonetti allegedly left more than 400 voicemails for members of Congress, several of which used slurs and were threatening.  This pattern of allegedly leaving voicemails for federal elected officials continued despite Leonetti being visited and warned several times by law enforcement and mental health professionals.  In early September 2022, he left threatening voicemails in the voicemail box of a congresswoman.  Emergency mental health professionals again contacted Leonetti after those calls.  In late September and October 2022, Leonetti left additional threatening voicemails for a different senator and a congressman.  The most recent voicemails were left on December 5, 2022 and contained bizarre and threatening statements about “murder” and “killing” individuals.

Making interstate threats is punishable by up to 5 years in prison.

The charges contained in the complaint are only allegations.  A person is presumed innocent unless and until he or she is proven guilty beyond a reasonable doubt in a court of law.

The case is being investigated by the FBI with assistance from the U.S. Capitol Police and the Longview Police Department.

The case is being prosecuted by Assistant United States Attorney Will Dreher.

leonetti_complaint.pdf

NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that over the course of the last week in federal court, before Chief United States District Judge Terrence W. Boyle, multiple defendants have been sentenced in a large-scale heroin and marijuana trafficking organization. 

The investigation was part of OCDETF Operation 190, which was named in memory of New Bern Police Department Officer Alexander Thalmann.  Officer Thalmann was shot and killed in the line of duty in March of 2014 by associates of the defendants in this case.  An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

The defendants’ convictions and sentencings were the culmination of a multi-year investigation into a heroin trafficking ring operating in and around New Bern, North Carolina, and led primarily by two men: DAMIEN LAMONTE BROWN and CALVIN MARK WILSON.  Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and members of the New Bern Police Department learned that BROWN, WILSON, and others had been involved in ordering heroin from New York City and arranging it to be brought down in multi-kilogram amounts over a period of several years.  BROWN and WILSON then supplied various mid and lower-level dealers in and around New Bern with the heroin for sale. 

As part of the investigation, law enforcement conducted over twenty controlled purchases of heroin from organization members between November 2016 and July 2017, along with traffic stops and other encounters in which they confirmed that members possessed drugs and guns.  Based on that investigation, ATF then obtained authorization for a federal wiretap of cellular phones associated with WILSON and two co-defendants.   As a result, agents intercepted calls and texts over a three-month period in late 2017 showing that WILSON was directing the supply and distribution of kilogram-levels of heroin from New York to New Bern, NC.  Based on intercepted calls, agents were able to stop and arrest WILSON and two co-defendants traveling back from New York with 3lbs of marijuana and 7 bars of heroin cutting agent.

ATF made arrests of many of the defendants on October 24, 2017, along with searches of five residences associated with the organization.  Through the life of the investigation, law enforcement has seized over a kilogram of heroin and twenty firearms.

The defendants include:

DAMIEN LAMONTE BROWN, aka “Dame,” 36, of New Bern, NC.  BROWN was convicted in August 2018 by a federal jury of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin, possession with intent to distribute one hundred (100) grams or more of heroin, and possession of a firearm by felon.  BROWN was sentenced to 360 months’ imprisonment.

DERRICK LAMONT DAVIS, aka “Gucci,” 35, of Kinston, NC.  DAVIS was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin.  DAVIS was sentenced to 48 months’ imprisonment.

DWAYNE LEE STALLINGS, aka “Smiley,” 35, of Cove City, NC.  STALLINGS was convicted of possession of a firearm by a felon and was sentenced to 108 months’ imprisonment.

NASSAR TURE MACK, 37, of New Bern, NC.  MACK was convicted of possession of a firearm by felon and was sentenced to 24 months’ imprisonment.

MARIO CORRELLUS BARGNEARE, aka “Rio,” 39, of New Bern, NC.  BARGNEARE was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and discharging a firearm in furtherance of a drug trafficking crime.  BARGNEARE was sentenced to 204 months’ imprisonment.

DEREK JACQUAN WIGGINS, aka “DJ,” 38, of New Bern, NC.  WIGGINS was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin, several counts of distributing heroin, and possession of a firearm by a felon.  He was sentenced to 120 months’ imprisonment.

ROY JAMES NOLON, aka “Henny,” 21, of New Bern, NC.  NOLON was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession of a firearm in furtherance of a drug trafficking crime.  He was sentenced to 96 months’ imprisonment.

MICHAEL QUALEEK VELASQUEZ, aka “Moo Moo,” 23, of New Bern, NC.  VELASQUEZ was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of heroin.  He was sentenced to 96 months’ imprisonment.

LAMAR HOSEA WIGGINS, aka “LB,” 39, of New Bern, NC.  WIGGINS was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession of a firearm by a felon.  He was sentenced to 96 months’ imprisonment.

LASHAWNNA JAQUETTE MCCOTTER, aka “Flossy,” 47, of New Bern, NC.  McCOTTER was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of marijuana.  She was sentenced to 30 months’  imprisonment.

LATREKA DENISE HARDESTY, aka “T,” 27, of New Bern, NC.  HARDESTY was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin.  She was sentenced to time served.

ADRIENNE MICHELLE HALL, 35, of New Bern, NC.  HALL was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin.  She was sentenced to time served.

CAROLINE LOUISE HUGHES, 28, of Alliance, NC.  HUGHES was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin.  She was sentenced to 5 years probation.

 

Three defendants are scheduled to be sentenced over the course of the next few months.  They are:

CALVIN MARK WILSON, aka “Bali,” 34, of New Bern, NC.  WILSON was convicted of conspiracy to distribute and possess with the intent to distribute one thousand grams or more of heroin and a quantity of marijuana and possession with intent to distribute a quantity of marijuana.  WILSON faces a sentence of not less than 20 years’ imprisonment.

WILLIE FRANK JAMES AHERN, aka “White, White Bread, Dribs,” 39, of Bayboro, NC.  AHERN was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and several instances of distributing quantities of heroin.  AHERN faces up to life imprisonment.

WALTER NAJEE GREEN, III, 21, of New Bern, NC.  GREEN was convicted of distribution of a quantity of heroin and faces up to 30 years’ imprisonment.

 

The investigation also led to 8 individuals being charged by the state for drug offenses.  Those charges remain pending.

The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), New Bern Police Department, Jacksonville Police Department, Craven County Sheriff’s Office, Pamlico County Sheriff’s Office, the North Carolina State Bureau of Investigation, Onslow County Sheriff’s Office, Sampson County Sheriff’s Office, Trent Woods Police Department, Carteret County Sheriff’s Office, Morehead City Police Department, Beaufort County Sheriff’s Office, and with the assistance of the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA).  Assistant United States Attorney Laura S. Howard prosecuted this case on behalf of the government.

NEW BERN – United States Attorney Robert J. Higdon, Jr. announced that in federal court, before Chief United States District Judge Terrence W. Boyle, CALVIN MARK WILSON, also known as “Bali,” 35, of New Bern, North Carolina was sentenced to 35 years (420 months) in federal prison for conspiring to distribute and possess with the intent to distribute one thousand (1,000) grams or more of heroin and a quantity of marijuana.    

The investigation was part of OCDETF Operation 190, which was named in memory of New Bern Police Department Officer Alexander Thalmann.  Officer Thalmann was shot and killed in the line of duty on March 31, 2014 by associates of the defendant’s in this case.  An Organized Crime Drug Enforcement Task Force (OCDETF) is a joint federal, state, and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional level drug trafficking organizations, and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.

WILSON’s sentencing was the culmination of a multi-year investigation into a heroin trafficking ring operating in and around New Bern, North Carolina, and led primarily by two men: Damien Lamonte Brown and Calvin Mark Wilson.  Agents with the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and members of the New Bern Police Department learned that Brown, WILSON, and others had been involved in ordering heroin from New York City and arranging it to be brought down in multi-kilogram amounts over a period of several years.  Brown and WILSON then supplied various mid- and lower-level dealers in and around New Bern with the heroin for sale. 

As part of the investigation, law enforcement conducted over twenty controlled purchases of heroin from organization members between November 2016 and July 2017, along with traffic stops and other encounters in which they confirmed that members possessed drugs and guns. Based on that investigation, ATF then obtained authorization for a federal wiretap of cellular phones associated with WILSON and two co-defendants.  As a result, agents intercepted calls and texts over a three-month period in 2017 showing that WILSON was directing the supply and distribution of kilogram-levels of heroin from New York to New Bern, NC.  Based on intercepted calls, agents were able to stop and arrest WILSON and two co-defendants traveling back from New York with 3lbs of marijuana and 7 bars of heroin cutting agent. Subsequent investigation revealed that hundreds of grams of heroin had traveled separately down from New York to New Bern that day.

ATF made arrests of many of the defendants on October 24, 2017, along with searches of five residences associated with the organization.  Through the life of the investigation, law enforcement has seized over a kilogram of heroin and twenty firearms.

The defendants include:

CALVIN MARK WILSON, aka “Bali,” 35, of New Bern, NC.  WILSON was convicted of conspiracy to distribute and possess with the intent to distribute one thousand grams or more of heroin and a quantity of marijuana and possession with intent to distribute a quantity of marijuana.  WILSON was sentenced to 420 months’ imprisonment.

DAMIEN LAMONTE BROWN, aka “Dame,” 36, of New Bern, NC.  BROWN was convicted in August 2018 by a federal jury of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin, possession with intent to distribute one hundred (100) grams or more of heroin, and possession of a firearm by felon.  BROWN was sentenced to 360 months’ imprisonment.

DERRICK LAMONT DAVIS, aka “Gucci,” 35, of Kinston, NC.  DAVIS was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin.  DAVIS was sentenced to 48 months’ imprisonment.

DWAYNE LEE STALLINGS, aka “Smiley,” 35, of Cove City, NC.  STALLINGS was convicted of possession of a firearm by a felon and was sentenced to 108 months’ imprisonment.

WALTER NAJEE GREEN, III, 21, of New Bern, NC.  GREEN was convicted of distribution of a quantity of heroin and was sentenced to 72 months’ imprisonment.

NASSAR TURE MACK, 37, of New Bern, NC.  MACK was convicted of possession of a firearm by felon and was sentenced to 24 months’ imprisonment.

MARIO CORRELLUS BARGNEARE, aka “Rio,” 39, of New Bern, NC.  BARGNEARE was convicted of conspiring to distribute and possess with the intent to distribute one hundred (100) grams or more of heroin and discharging a firearm in furtherance of a drug trafficking crime.  BARGNEARE was sentenced to 204 months’ imprisonment.

DEREK JACQUAN WIGGINS, aka “DJ,” 38, of New Bern, NC.  WIGGINS was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin, several counts of distributing heroin, and possession of a firearm by a felon.  He was sentenced to 120 months’ imprisonment.

ROY JAMES NOLON, aka “Henny,” 21, of New Bern, NC.  NOLON was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession of a firearm in furtherance of a drug trafficking crime.  He was sentenced to 96 months’ imprisonment.

MICHAEL QUALEEK VELASQUEZ, aka “Moo,” 23, of New Bern, NC.  VELASQUEZ was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of heroin.  He was sentenced to 96 months’ imprisonment.

LAMAR HOSEA WIGGINS, aka “LB,” 39, of New Bern, NC.  WIGGINS was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession of a firearm by a felon.  He was sentenced to 96 months’ imprisonment.

LASHAWNNA JAQUETTE MCCOTTER, aka “Flossy,” 47, of New Bern, NC.  McCOTTER was convicted of conspiring to possess with the intent to distribute a quantity of heroin and possession with intent to distribute a quantity of marijuana.  She was sentenced to 30 months’ imprisonment.

LATREKA DENISE HARDESTY, aka “T,” 27, of New Bern, NC.  HARDESTY was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin.  She was sentenced to time served.

ADRIENNE MICHELLE HALL, 35, of New Bern, NC.  HALL was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin.  She was sentenced to time served.

CAROLINE LOUISE HUGHES, 28, of Alliance, NC.  HUGHES was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin.  She was sentenced to 5 years probation.

 

There remains one defendant who is scheduled to be sentenced in July 2019:

WILLIE FRANK JAMES AHERN, aka “White, White Bread, Dribs,” 39, of Bayboro, NC.  AHERN was convicted of conspiring to distribute and possess with the intent to distribute a quantity of heroin and several instances of distributing quantities of heroin.  AHERN faces up to life imprisonment.

 

The investigation also led to 8 individuals being charged by the state for drug offenses.  Those charges remain pending.

The investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms & Explosives (ATF), New Bern Police Department, Jacksonville Police Department, Craven County Sheriff’s Office, Pamlico County Sheriff’s Office, the North Carolina State Bureau of Investigation, Onslow County Sheriff’s Office, Sampson County Sheriff’s Office, Trent Woods Police Department, Carteret County Sheriff’s Office, Morehead City Police Department, Beaufort County Sheriff’s Office, and with the assistance of the Federal Bureau of Investigation (FBI) and Drug Enforcement Administration (DEA).  Assistant United States Attorney Laura S. Howard prosecuted this case on behalf of the government.

NEW BERN, N.C. – Markel Brown, 20, of Maple Hill North Carolina, was sentenced yesterday to 126 months in prison for 1) Conspiracy to Possess with intent to distribute and distribute of 100 Grams or more of Heroin and 500 grams or more of Cocaine, 2) Possession with intent distribute 500 grams or more of Cocaine and 3) Possession of a firearm in furtherance of drug trafficking. 

According to court documents, evidence presented in court and other documents, on August 13, 2019 law enforcement received information that Brown was returning from Atlanta, Georgia after having obtained a large amount of narcotics to be distributed in Eastern North Carolina.  On August 13th, a Robeson County Sheriff’s Officer conducted a traffic stop on a car in which Brown was a passenger.  Law enforcement officers searched the car and found more than a kilogram of cocaine and a .22 caliber handgun with altered serial numbers.  Brown had $8,992 on his person.  During the subsequent investigation, law enforcement uncovered that Brown was providing cocaine, heroin, and fentanyl to the Maple Hill area.  Brown was responsible for distributing more than one and half kilograms of cocaine, 380 grams of heroin, 79 grams of a heroin/fentanyl mixture, and 70 grams of methamphetamine between December 2018 and September 2019.  On October 24, 2020, while detained, a detention officer observed Brown in possession of homemade alcohol in his cell.  When the officer attempted to retrieve the contraband, Brown struck the officer several times with a closed fist in the face and head area injuring the officer.

This is part of operation Ahab’s Harpoon which is part of an Organized Crime Drug Enforcement Task Force (OCDETF) investigation. OCDETF identifies, disrupts, and dismantles the highest-level drug traffickers, money launders, 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.

G. Norman Acker, III, Acting U.S. Attorney for the Eastern District of North Carolina made the announcement after sentencing by U.S. District Judge Louise W. Flanagan. The Bureau of Alcohol, Tobacco and Firearms, the Federal Bureau of Investigation, Jacksonville Police Department and the Roberson and Onslow County Sheriff’s Office investigated the case and Assistant U.S. Attorneys Timothy Severo and Charity Wilson  prosecuted the case.

Related court documents and information can be found on the website of the U.S. District Court for the Eastern District of North Carolina or on PACER by searching for Case No. 7:19-cr-00191-FL-3.

RALEIGH – Robert J. Higdon, Jr., the United States Attorney for the Eastern District of North Carolina, announces that yesterday in Federal court in New Bern, United States District Judge Louise W. Flanagan sentenced CHRISTOPHER LEON BROWN and MARK RAYFIELD BROWN, JR., both of Raleigh, North Carolina to 40 months in prison and 30 months in prison, respectively, for their roles in a health care fraud conspiracy that targeted the North Carolina Medicaid system.  The Court ordered the terms of imprisonment to be followed by three years of supervised release.  Both defendants were also ordered to pay restitution to the North Carolina Medicaid Program, among other terms of the judgment.

CHRISTOPHER LEON BROWN was named in Criminal Information filed on March 31, 2017, which charged him with conspiracy to commit health care fraud.  On April 13, 2017, BROWN pled guilty to the charge.

MARK RAYFIELD BROWN, JR. was named in a Criminal Information filed on December 22, 2016, which charged him with conspiracy to commit health care fraud.  On February 16, 2017, BROWN, JR. pled guilty to the charge.

A third co-conspirator, DARRYL VASHAUN STANFORD, of Raleigh, North Carolina, pleaded guilty to a Criminal Information on April 13, 2017.  On February 22, 2018, STANFORD was sentenced to 34 months imprisonment and three years of supervised release and ordered to pay restitution to North Carolina Medicaid Program, among other terms of the judgment.

According to the charging instruments, statements made in court, and other public information, BROWN, BROWN JR., and STANFORD were co-conspirators in a health care fraud scheme that stole hundreds of thousands in funds from the North Carolina Medicaid Program through the purchase and exploitation of stolen Medicaid beneficiary information and clinician information.  The stolen information was used by the co-conspirators to submit thousands of false and fraudulent claims for reimbursement for health care services that were never rendered by the listed providers.  The co-conspirators targeted the North Carolina Health Choice (NCHC) Health Insurance Program for Children in particular, a comprehensive health coverage program for low-income children which is part of the North Carolina Medicaid system.

Between approximately April 2014 and May 2015, BROWN, BROWN, JR., and STANFORD submitted fraudulent claims to Medicaid through Christian Medical Center, Inc., a purported provider of outpatient behavioral services in eastern North Carolina.  In truth,  Christian Medical was a shell company or “false front” with no legitimate business operations by this point.  BROWN, JR. was the owner of record for Christian Medical and partnered with BROWN (no relation) to facilitate the scheme.  Among other things, BROWN purchased stolen Medicaid beneficiary information and forwarded it to STANFORD, an experienced Medicaid biller.  STANFORD, in turn, used the stolen information to prepare and electronically file the fraudulent claims on Christian Medical’s behalf through Medicaid’s NCTracks system.

In addition to their roles with respect to the Christian Medical scheme, BROWN and STANFORD were charged with, pleaded guilty to, and sentenced for engaging in a related conspiracy to file thousands of fraudulent Medicaid claims on behalf of multiple other providers.  These claims also incorporated stolen Medicaid beneficiary information and clinician information.

 Investigation of this case was conducted by the Federal Bureau of Investigation and the North Carolina Department of Justice, Medicaid Investigations Division.  Assistant United States Attorney Adam F. Hulbig prosecuted the case for the government. 

St. Louis, MO – Asean Mitchell, 20, of St. Louis, was sentenced to 150 months in prison on three counts of carjacking and one count of brandishing a firearm during a federal crime of violence.  He appeared in federal court today before U.S. District Judge Audrey G. Fleissig. 

According to court documents, on November 20, 2016, Mitchell and his accomplice, Travion Brown, committed a carjacking in the area of North 11th Street and St. Charles Street in downtown St. Louis.  Mitchell and Brown approached the victim.  Brown pulled a gun and ordered the victim out of the car.  The victim complied.  Brown and Mitchell entered the vehicle and drove away.

On November 22, 2016, Mitchell, Brown, and a third accomplice attempted another carjacking in downtown St. Louis.  The victim was stopped at a red light at the intersection of 10th Street and Market Street.  Mitchell, Brown and the third individual approached the vehicle.  One of the carjackers tapped on the vehicle’s window with a gun.  The light turned green and the victim successfully drove away.

Mitchell, Brown, and the third individual approached another victim seated in a vehicle at the intersection of Olive Street and 11th Street in St. Louis shortly after their earlier, unsuccessful carjacking.  The victim waived the three men away from the vehicle and attempted to drive away when the light turned green.  Brown shot the victim in the head.  The three carjackers fled from the area.  The victim survived.

Co-defendant Travion Brown was sentenced by U.S. District Judge Ronnie L. White on May 4, 2018, to 300 months in prison for his role in the armed carjackings. 

“We are grateful that no one lost a life during this carjacking spree and pleased that these defendants have been taken off the streets.  There is always more work to be done which is why preventing, disrupting, and prosecuting those who would commit a carjacking is one of this office’s top priorities,” said U.S. Attorney Jeff Jensen after Mitchell’s sentencing.     

The St. Louis Metropolitan Police Department and the Federal Bureau of Investigation investigated the case.  Assistant U.S. Attorney Sayler Fleming handled the case for the U.S. Attorney’s Office.

United States District Judge Victoria A. Roberts sentenced convicted former Wayne County airport official, James Warner, 52, of Commerce Township, to 10 years’ imprisonment today. A federal jury convicted Warner last June of ten counts of conspiracy, federal program bribery, federal program theft, money laundering and obstruction of justice, in connection with maintenance and repair contracts for runways and parking structures at Detroit Metropolitan Airport, United States Attorney Matthew Schneider announced today. 

Schneider was joined in the announcement by Steven M. D'Antuono, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Andrea M. Kropf, Special Agent-in-Charge of the Midwestern Region of the United States Department of Transportation Office of Inspector General.

According to the evidence provided during the three-week trial, from May of 2010, through August of 2014, while employed as a field inspector at the Wayne County Airport Authority (WCAA), Warner used his position of trust at the airport to direct more than $43 million in airport infrastructure projects to three coconspirators—William Pritula, Douglas Earles and Gary Tenaglia—in exchange for more than $6 million in kickbacks. This amount represents the highest bribe totals in the Eastern District of Michigan’s history, and one of the largest in the country.

On one occasion, Warner falsified the square footage and asphalt depth on an airport roadway project, creating and later approving a $938,000 bill from Pritula’s company for work which Pritula’s subcontractor only invoiced $275,000. Warner and Pritula then split the profits evenly. On another occasion, Earles’s company submitted two separate invoices—one for $13,429.63, and another for $18,055.26—for the replacement of backflow preventers at the airport. However, as the evidence revealed at trial, the backflow preventers listed in these invoices were neither purchased nor installed at the airport. Since Warner was the public official responsible for verifying these falsified invoices, he was able to conceal this fraud from the airport and authorize the airport to pay Earles for work that was never completed—a percentage of which was ultimately kicked back to Warner.

Each of Warner’s coconspirators, Pritula, 69, of Romulus, Earles, 60, of White Lake, and Tenaglia, 65, of Commerce Township have all pleaded guilty to conspiracy to commit bribery and theft.”  To date, the government has seized $11 million from Warner and his co-conspirators.

United States Attorney Schneider stated, “This case is yet another example of our office’s commitment to vigorously prosecute corrupt public officials who elevate their own greed over the best interests of the people of Michigan.” 

“Through bribery, fraud, and kickbacks, Mr. Warner stole the hard-earned money of the men and women who fund the services provided at Detroit Metropolitan Airport,” said SAC D’Antuono. “I am incredibly proud of the hard work of agents from the FBI and the US Department of Transportation, Office of Inspector General, and attorneys from the United States Attorney’s Office, whose collective efforts helped bring a measure of justice to this defendant."

 “With one of the largest bribes prosecuted to date in the Eastern District of Michigan, today’s sentencing reinforces our commitment to rooting out egregious infrastructure fraud,” stated Andrea M. Kropf, DOT-OIG Regional Special Agent-In-Charge. “It sends a message to public officials who may be motivated by greed to abuse their positions that they will be met with the full force of the criminal justice system.”

The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Transportation Office of Inspector General.  The case is being prosecuted by Assistant U.S. Attorneys Eaton P. Brown and Mark Chutkow.

Two high-level executives of Fiat Chrysler Automobiles US LLC (“FCA” or “Fiat Chrysler”) and a senior official of the International Union, United Automobile, Aerospace, and Agricultural Implement Workers of America (“UAW”) were sentenced to prison today based on their convictions relating to a scheme to bribe UAW officials by Fiat Chrysler, announced U.S. Attorney Matthew Schneider.

Joining in the announcement were Manny Muriel, Special Agent in Charge of the Detroit, Michigan office of the Internal Revenue Service – Criminal Investigations, James Vanderberg, Special Agent in Charge of the U.S. Department of Labor – Office of Inspector General, Timothy Slater, Special Agent in Charge of the Detroit, Michigan office of the Federal Bureau of Investigation, and Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.

Jerome Durden, 62, of Rochester, Michigan, was sentenced today to 15 months in prison based on his prior August 2017 guilty plea to conspiracy to defraud the United States before United States District Judge Paul D. Borman.  Durden was a former Financial Analyst for Fiat Chrysler, and he had served as the Controller of the joint UAW-Chrysler National Training Center between 2008 and 2015.  Durden presented false tax returns on behalf of the National Training Center and a “charitable” organization associated with former UAW Vice President General Holiefield known as the Leave the Light On Foundation in order to conceal over $1.5 million in illegal payments by Fiat Chrysler to senior UAW officials through the National Training Center and the foundation, all done in an effort to affect the labor-management relationship between Fiat Chrysler and the UAW.  The senior UAW officials who were bribed included UAW Vice President Holiefield, UAW Assistant Director Virdell King, senior UAW official Keith Mickens, senior UAW official Nancy A. Johnson, who served as the second in command of the UAW’s Chrysler Department from July 2014 through 2016, and others.

The illegal payments included paying off the mortgage on Holiefield’s home, first-class airline travel, designer clothing, furniture, jewelry and custom-made watches.

Keith Mickens, 64, of Clarkston, Michigan was sentenced today to 12 months in prison based on his April 2018 conviction to conspiring with other UAW officials and FCA executives to take illegal payments from Fiat Chrysler.  Between 2010 and 2014, Mickens was one of the senior UAW officials responsible for administering the collective bargaining agreements on behalf of tens of thousands of UAW members employed by FCA.  Mickens served as a member of the UAW’s National Negotiating Committee in 2011 and was one of the UAW officials responsible for negotiating the collective bargaining agreements between the UAW and FCA.  He also served as the co-Director of the National Training Center. 

Mickens has admitted to helping transfer over $700,000 from FCA to former UAW Vice President Holiefield using two companies that Holiefield controlled with Monica Morgan, Holiefield’s girlfriend and later wife.  FCA executives concealed the illegal payments using the bank account of the UAW-Chrysler National Training Center. 

Separate from the illegal activities involving UAW Vice President Holiefield, Mickens admitted that he and other senior UAW officials also accepted thousands of dollars’ worth of clothing, electronics, golf equipment, and other personal items that were paid for by FCA.

Michael Brown, 60, of West Bloomfield, Michigan was sentenced to 12 months in prison based on his felony conviction for providing misleading and incomplete testimony to a federal grand jury.  Brown misled the grand jury in a deliberate effort to conceal the existence of the conspiracy to bribe UAW officials by FCA, FCA executives acting in the interest of FCA, the UAW, and UAW officials.  Between 2009 and 2016, Brown was employed as a Director for Employee Relations at Fiat Chrysler.       

The Court’s sentencings of Durden, Brown, and Mickens mark the third, fourth, and fifth defendants to be sentenced in the ongoing criminal investigation into illegal payoffs to UAW officials.  On July 13, 2018, defendant Monica Morgan was sentenced to 18 months in prison and ordered to pay $190,747 in restitution for her tax fraud in connection with the receipt of illegal payments by her husband, the now deceased Holiefield, who had served as the Vice President of the UAW in command of the Chrysler Department.  On August 27, 2018, Alphons Iacobelli was sentenced to 66 months in prison and ordered to pay $835,523 in restitution for his involvement in the conspiracy to bribe UAW officials and his submission of false tax returns.        

“The Court’s sentences today are further strides forward in our effort to root out corruption in the leadership of the UAW because of illegal payments by Fiat Chrysler and its executives,” said United States Attorney Matthew Schneider.  “We want the hard working men and women of the union to know that federal law enforcement will uncover, prosecute, and punish any effort to undermine their collective bargaining process.”   

Manny Muriel, Special Agent in Charge of IRS Criminal Investigation’s Detroit office, stated, “Corporate Fraud continues to be a top priority for IRS Criminal Investigation.  When executives abuse the power they are given, it undermines our trust in the business sector and compromises the integrity of our economic and political system.  Today’s sentencings serve as a warning to those who hold positions of trust and leadership. Muriel continued, “IRS-CI and its law enforcement partners will continue to work together to uncover these schemes and hold the corporate and union executives accountable.” 

“Mickens, a former senior UAW official, conspired with former FCA management officials, including Durden, to accept illegal payments and other things of value from FCA in exchange for manipulating the collective bargaining agreement process at the expense of UAW members.  We will continue to work with our law enforcement partners and the U.S. Department of Labor’s Office of Labor-Management Standards to safeguard the assets of union members,” said James Vanderberg, Special Agent-In-Charge, Chicago Region, U.S. Department of Labor Office of Inspector General.

“Today’s sentencings of former FCA executives and a senior UAW official once again demonstrate that those who seek personal gain through deception and fraud will be brought to justice,” said Timothy R. Slater, Special Agent in Charge, Detroit Division of the FBI. “The FBI and our law enforcement partners remain committed to the dogged pursuit of all those responsible for corrupting the collective bargaining process and stealing from the many hardworking and dedicated auto workers in our community.”

“Protecting members against corruption perpetrated by their union leaders is critical to the mission of the Office of Labor-Management Standards (OLMS),” said Thomas Murray, District Director, U.S. Department of Labor, Office of Labor-Management Standards.  “OLMS thanks the United States Attorney’s Office for vigorously prosecuting those involved in the conspiracy.  We will continue to work cooperatively with our law enforcement partners to ensure that anyone who abuses their union position for personal financial gain will be brought to justice.”

These cases are being prosecuted by Assistant U.S. Attorneys David A. Gardey, Erin S. Shaw, and Adriana Dydell.

A jury convicted a former Wayne County Airport official on ten counts of conspiracy, federal program bribery, federal program theft, money laundering and obstruction of justice, in connection with maintenance and repair contracts for runways and parking structures at Detroit Metropolitan Airport, United States Attorney Matthew Schneider announced today. 

Schneider was joined in the announcement by Timothy R. Slater, Special Agent-in-Charge of the Detroit Field Office of the Federal Bureau of Investigation, and Andrea M. Kropf, DOT-OIG Regional Special Agent-In-Charge of the Midwestern Region of the United States Department of Transportation, Office of Inspector General.

Convicted was James Warner, 52, of Commerce Township.

The jury deliberated approximately three hours concluding the three-week trial before United States District Judge Victoria Roberts.

According to the evidence provided during trial, from May of 2010, through August of 2014, while employed as a field inspector at the Wayne County Airport Authority (WCAA), Warner engaged in multiple schemes to defraud the WCAA out of millions of dollars. In one scheme, Warner drafted and submitted fraudulently-inflated invoices for work which co-defendant William Pritula, 69, of Romulus, was contracted to perform at the airport. Upon payment by the WCAA to Pritula, Pritula would kickback roughly half of the profits to Warner—a total of over $5 million over four years—the largest bribe prosecuted to date in the Eastern District of Michigan.

In another scheme, Warner drafted and submitted fraudulent invoices on behalf of co-defendant Douglas Earles, 60, of White Late, the owner and operator of North Star Plumbing. In the invoices Warner wrote, he billed the airport for industrial-sized plumbing fixtures which Earles never installed. In exchange, Earles would kickback roughly 40 percent of the profits to Warner--over $100,000 between June of 2010, and August of 2013.

In yet a third conspiracy, Warner demanded money from co-defendant Gary Tenaglia, 65, of Oakland Township. Tenaglia held maintenance and repair contracts for Detroit Metropolitan Airport’s parking structures. Warner both inspected and supervised Tenaglia’s work and concealed any mistakes from the WCAA. In exchange, Warner demanded approximately 10 per cent of each invoice from Tenaglia. In total, Warner paid Tenaglia hundreds of thousands of dollars between May of 2011, and June of 2014. Thus far in the investigation, law enforcement has seized $11.4 million in criminal proceeds including $7.5 million from Pritula and $3.9 million from Warner.

Pritula, Earles, and Tenaglia have been convicted of conspiracy to commit bribery and theft.

Warner left the WCAA in August of 2014. In January of 2017, he began working for the Water and Sewer Department in West Bloomfield Township. Within months, Warner proposed to Tenaglia a continuation of the same scheme the two had at the airport—a demand for 10 percent of each invoice West Bloomfield Township paid Tenaglia.

In addition to the theft, bribery and money laundering offenses, the jury convicted Warner with obstructing justice by altering a document he provided to the FBI during their investigation of this matter.

In total, based on his convictions, Warner is facing a sentencing guidelines range of 292 to 365 months in prison.

United States Attorney Schneider stated, “Today’s conviction reinforces our dedication to prosecuting corrupt public officials who put their own greed over the best interests of the public.  This is certainly true here, where the defendant showed little concern for the infrastructure of our very own airport.” 

Special Agent-in-Charge Slater stated, "The broad scope of Mr. Warner's crimes demonstrates a profound misappropriation of the public trust. Citizens of the Eastern District deserve integrity and accountability from the officials charged with the operation of all public facilities, including Detroit Metropolitan International Airport. Today's verdict underscores our commitment to holding these officials accountable. I am proud of our investigators and our partners at the Chicago Field Office of the U.S. Department of Transportation, Office of Inspector General, whose collective efforts helped achieve it."

 “Today’s conviction of James Warner, whose blatant disregard for his fiduciary responsibility to properly steward taxpayer dollars, sends a clear signal that such gross violations of public trust will not be tolerated,” stated Andrea M. Kropf, DOT-OIG Regional Special Agent-In-Charge. “The professionalism and dedication of the collective law enforcement and prosecutorial team involved in this case is a testament to an effective criminal justice system working tirelessly to protect the taxpayers’ investment in our nation’s infrastructure from fraud and abuse.”

Each theft and bribery charge carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.  Each of the money laundering conspiracy counts carries a maximum sentence of 10 years’ imprisonment and a fine of $250,000.  The bribery and theft conspiracy counts carry a maximum sentence of 5 years’ imprisonment and a fine of $250,000. The obstruction of justice count carries a maximum sentence of 20 years’ imprisonment and a fine of $250,000.   

A sentencing date has been set for October 8, 2019.

The investigation of this case was conducted by the Federal Bureau of Investigation and the Department of Transportation.  The case is being prosecuted by Assistant U.S. Attorneys Eaton P. Brown and Mark Chutkow.

 

First Assistant U.S. Attorney Bridget Brennan announced today that a federal grand jury sitting in Cleveland has returned a 28-count indictment charging nine individuals for their roles in a scheme to defraud Medicaid. These nine individuals either owned, operated or worked for Eye For Change Youth & Family Services, Inc. (Eye For Change), a non-profit corporation in Cleveland.

First Assistant U.S. Attorney Bridget Brennan, FBI Special Agent in Charge Eric B. Smith, Office of the Inspector General, U.S. Department of Health and Human Services Special Agent in Charge Lamont Pugh III and Ohio Attorney General Dave Yost made the announcement.

“These defendants are accused of defrauding a tax-payer funded health care benefit program that was created to assist some of the most vulnerable among us,” said First Assistant U.S. Attorney Bridget Brennan. “Their alleged conduct, including the payment of kickbacks, was designed simply to enrich themselves. We are grateful for the hard work of the agencies involved who, like us, are dedicated to bringing allegations of fraud and illegal kickbacks before the court.”

"These individuals engaged in a scheme to defraud tax-payers by submitting fraudulent billing to a federally funded healthcare program, which is supported by hard-working citizens,” said FBI Special Agent in Charge Eric B. Smith. “The FBI and our partners will continue to root out such fraud and hold those engaged in illegal financial dealings responsible in a court of law.”

“The billing of medical services that are not rendered, the payment of kickbacks, and the falsification of documents with respect to medical records are illegal acts commonly used by those who commit healthcare fraud,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region.  “The OIG routinely conducts data analysis in an effort to identify aberrant and potentially fraudulent billing trends and will take action to hold those who seek to defraud federally funded health care programs accountable.”

"There are actually real people out there who are suffering and need help," Ohio Attorney General Dave Yost said.  "You don't have to make up imaginary patients. A jury of their peers will undoubtedly know some of them. I'm grateful for the state-federal partnership that is bringing these fakes to justice."

Named in the indictment are:

Alfonzo D. Bailey, age 38, of Cleveland, Ohio. Bailey was the incorporator and 100% owner of Eye For Change Youth & Family Services.

David Brown, age 39, of Maple Heights, Ohio. Brown was a marketer and Clients Rights Officer at Eye For Change.

Valerie White, age 51, of Columbus, Ohio. White was employed as a Qualified Mental Health Specialist (QMHS) and a counselor/therapist who provided counseling services to Eye For Change Medicaid beneficiary clients.

Sandra Wilson, age 52, of Cleveland, Ohio. Wilson was employed as an assessor and staffed the crisis hotline at Eye For Change and provided counseling services Medicaid beneficiary clients.

Cheria Oliver, age 31, of Canal Winchester, Ohio. Oliver was employed as a Qualified Mental Health Specialist (QMHS) at Eye For Change and provided counseling services to Medicaid beneficiary clients.

Charchee Tucker, age 43, of Warrensville Heights, Ohio. Tucker was employed as QMHS, QMHS Supervisor, Lead Case Manager, and Director of Marketing and Compliance. Tucker was to provide counseling services to Eye for Change Medicaid beneficiary clients.

Allen Steele, age 38, of Parma, Ohio. Steele was employed as a QMHS at Eye For Change and was able to provide counseling services to Medicaid beneficiary clients.

Kamelah Ganaway, age 43, of Macedonia, Ohio. Ganaway was employed as a QMHS at Eye For Change and was to provide counseling services to Medicaid beneficiary clients.

Tremayne Kellom, age 41, of Cleveland, Ohio.

According to the indictment, from February 2017 through September 2020, the defendants are accused of submitting, or allowing to be submitted, billings to the Medicaid program for services that were never performed and of falsifying records.

The indictment states that Bailey would pay White and Wilson, a Licensed Independent Social Worker (LISW) in order to use Wilson’s LISW provider number and credentials to submit billings and documents regarding mental health screenings that were never performed.

Bailey, Brown, White and Wilson would also submit billings to the Medicaid program for counseling services without an appropriate treatment plan in place for clients, as required by law.

In addition, Bailey, Brown, White and Wilson are accused of allegedly paying kickbacks in the form of cash, gift cards, and rent/bill payments to Medicaid beneficiaries in order to obtain these beneficiaries as clients and to bill Medicaid for services never rendered.

The indictment further states that Bailey, Brown, White and Wilson would direct employees to misdiagnose their Medicaid beneficiaries in order to receive authorization from the Ohio Department of Medicaid to provide services and bill at higher rates.

Bailey, Brown, Oliver, Tucker, Steele, Ganaway and Kellom are also accused of allegedly directing and allowing employees to insert false progress notes into Medicaid beneficiary electronic records in order to create the fictitious documents needed to submit their claims.

As a result of these offenses, the defendants shall forfeit approximately $2.3 million seized during the execution of a federal seizure warrant and all properties associated with Eye For Change in Cleveland, Cleveland Heights and Columbus.

An indictment is only a charge and is not evidence of guilt.  A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.

If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation.

In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.

The investigation preceding the indictment was conducted by the Cleveland Division of the FBI, the Department of Health and Human Services -- Office of the Inspector General and the Ohio Attorney General’s Healthcare Fraud Section. This case is being prosecuted by Assistant U.S. Attorney Michael L. Collyer and Special Assistant U.S. Attorney Jonathan L. Metzler.

KNOXVILLE, Tenn. –  On September 4, 2024, Morice Armani Brown, 24 years old, a Jamaican national, currently of Florida, was sentenced to a term of imprisonment of 63 months by the Honorable Thomas A. Varlan, United States District Judge, in the United States District Court for the Eastern District of Tennessee at Knoxville.  Following his imprisonment, he will be on supervised release for a period of one year.  The defendant was also ordered to repay nearly $700,000 in restitution to the victim in this case.  

As part of the plea agreement filed with the court, Brown pled guilty to conspiracy to commit mail fraud, in violation of 18 U.S.C. §§ 1349 and 1341.  Brown’s co-conspirators, Marklyn Antonio Forrester, Jamali Jermaine Ramsay, and Jahmarley Kiboki McFarlane, were sentenced to 63 months, 36 months, and 57 months in prison, respectively.  A fifth individual, Tessa Nicole Hines, is scheduled to be sentenced in October 2024, for her role in laundering money related to this scheme. 

According to court documents, Brown conspired to defraud a 76-year-old Lenoir City resident out of nearly $700,000 by tricking her into believing she had won millions of dollars in a sweepstakes’ competition through the mail.  Brown and the co-conspirators convinced the victim to pay various fees and taxes to claim the winnings and traveled to Lenoir City to collect funds from the victim.  The conspirators then split the proceeds between themselves and others.

United States Attorney Francis M. Hamilton, III, of the Eastern District of Tennessee made the announcement. 

The charges were the result of an investigation by the Lenoir City Police Department and the United States Postal Inspection Service.  

Assistant U.S. Attorneys Anne-Marie Svolto and Michael Deel of the Eastern District of Tennessee are prosecuting the case.

                                                                                                                ###

CHARLOTTE, N.C. – Hal H. Brown Jr., 70, of Asheville, N.C., pleaded guilty to securities fraud and transactional money laundering in federal court today before U.S. Magistrate Judge David C. Keesler, for orchestrating a $22 million Ponzi scheme, announced Andrew Murray, U.S. Attorney for the Western District of North Carolina.

John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, joins U.S. Attorney Murray in making today’s announcement.

According to admission made in plea documents and today’s plea hearing, from at least 2006 through September 2019, Brown fraudulently obtained more than $22 million from dozens of victims, some of whom were at, or near, retirement age, by engaging in an investment scheme through his company Oodles Inc. and its various affiliates (collectively, “OODLES”).  Individual victims invested anywhere from a few thousand to a few million dollars in OODLES. To induce victims to invest their money, Brown falsely represented that OODLES owned hundreds of millions of dollars in intellectual property, namely family entertainment shows and movies. As part of the scheme, Brown repeatedly lied to victims about the imminent sale of those intellectual properties to various well-known media companies. To perpetuate the fraud, Brown developed marketing material seeking investments or loans for OODLES that claimed large returns on funds invested or lent to the company.

As Brown admitted in court today, to convince victims the scheme was legitimate and to appease investors who sought an explanation about delays in payouts, Brown provided victims with a number of fraudulent and misleading statements and fictitious information, including fake bank statements and falsified company agreements, among others.

Brown used a substantial part of victim money on personal expenses unrelated to purported OODLES transactions.  He also used funds contributed by new investors to make payments to existing investors, commonly referred to as “Ponzi” payments.

A sentencing date for Brown has not been set.  The securities fraud charge carries a maximum prison sentence of 20 years and a $5 million fine. The transactional money laundering charge carries a maximum prison term of 10 years and a fine of not more than twice the amount of criminally derived property in the transaction or $250,000.

The FBI’s Charlotte Field Office handled the investigation.

Assistant U.S. Attorneys Daniel Ryan and Mark Odulio of the U.S. Attorney’s Office in Charlotte are prosecuting the case.

In March 2019, Andrew Murray, U.S. Attorney for the Western District of North Carolina, announced the Office’s Elder Justice Initiative, which aims to combat elder financial exploitation by expanding efforts to investigate and prosecute financial scams that target seniors; educate older adults on how to identify scams and avoid becoming victims of financial fraud; and promote greater coordination with law enforcement partners. For more information please visit: https://edit.justice.gov/usao-wdnc/elder-justice-initiative.