Seventh Defendant Convicted in Multi-Million-Dollar Health Care Fraud Scheme

HOUSTON—Tony Nnonso Obi, 56, a naturalized U.S. citizen from the Federal Republic of Nigeria, has entered a plea of guilty for his role in a massive health care fraud conspiracy that billed the Medicare and Medicaid programs for more than $45 million, United States Attorney Kenneth Magidson announced today.

Obi was convicted of one count of conspiracy to commit health care fraud and one count of money laundering.

As part of his plea, Obi admitted to entering into an agreement with the owner of City Nursing, Umawa Imo, to receive 15 percent of the money City Nursing obtained from Medicare for services billed on individuals referred to City Nursing by Obi or on Obi’s behalf. Imo, who is currently serving more than 27 years in federal prison for his role in the conspiracy, paid Obi $1,051,425.28. At least three of the beneficiaries taken to City Nursing by Obi were individuals living in Obi’s assisted living facility. Obi also admitted to paying beneficiaries and recruiters and handling office matters when Imo was out of the office.

Obi faces up to 10 years in prison and a $250,000 fine for each count. U.S. District Judge Kennth Hoyt, who accepted the plea today, has set sentencing for November 5, 2012. He has been in custody since his April 3, 2012 arrest, where he will remain pending that sentencing hearing.

Six others have also been convicted in relation to this scheme. The investigation into City Nursing was the result of a joint investigation by agents of the FBI, Internal Revenue Service-Criminal Investigation, the Department of Health and Human Services-Office of Inspector General, and the Texas Attorney General’s Office-Medicare Fraud Control Unit. Assistant United States Attorney Julie Redlinger is prosecuting the case.

Rochester Man Charged with Production and Possession of Child Pornography

ROCHESTER, NY—U.S. Attorney William J. Hochul, Jr. announced today that Anthony Davis, 43, of Rochester, New York, was arrested and charged by criminal complaint with production of child pornography and possession of child pornography. The charges carry a mandatory minimum penalty of 15 years in prison, a maximum penalty of 30 years, a $500,000 fine or both.

Assistant U.S. Attorney Tiffany H. Lee, who is handling the case, stated that according to the complaint, in July 2012, city of Rochester Police received a report from a cooperating witness who found a sexually explicit video of a 7-year-old minor on a smartphone belonging to Davis. The complaint alleges that the witness was able to identify the minor victim and Davis’s voice from the video. Rochester police executed a search warrant and seized the defendant’s telephones. Hundreds of suspected images of child pornography were found on two telephones that were seized, including the video of the 7-year-old minor that Davis allegedly produced. The defendant is currently facing state charges, including sexual abuse, in Monroe County.

This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.

The criminal complaint is the culmination of an investigation on the part of the FBI Cyber Crime Task Force, under the direction of Special Agent in Charge Christopher M. Piehota; the city of Rochester Police Department, under the direction of Chief James Sheppard; and the Monroe County District Attorney’s Office, under the direction of Sandra Doorley.

The fact that a defendant has been charged with a crime is merely an accusation, and the defendant is presumed innocent until and unless proven guilty.

Wisconsin Flag Lowering Order

EXECUTIVE ORDER #80

Relating to a Proclamation that the Flag of the United States and the Flag of the State of Wisconsin be Flown at Half-Staff as a Mark of Respect for Deputy Sheriff Sergio Aleman of the Milwaukee County Sheriffs Office.

WHEREAS, on July 31, 2012, Deputy Sheriff Sergio Aleman of the Milwaukee County Sheriff's Office tragically lost his life in the line of duty; and

WHEREAS, Deputy Sheriff Sergio Aleman provided faithful and honorable service to the people of Milwaukee County and the State of Wisconsin;

WHEREAS, the people of Wisconsin mourn the death of Deputy Sheriff Sergio Aleman; and

WHEREAS, a memorial service will be held for Deputy Sheriff Sergio Aleman on August 7, 2012.

NOW, THEREFORE, I, SCOTT WALKER, Governor of the State of Wisconsin, by the authority vested in me by federal and state law, do hereby order that the flag of the United States and the flag of the State of Wisconsin shall be flown at half-staff at all buildings, grounds, and military installations of the State of Wisconsin equipped with such flags beginning at sunrise on Tuesday, August 7, 2012 and ending at sunset on that date.

IN TESTIMONY WHEREOF, I have hereunto set my hand and caused the Great Seal of the State of Wisconsin to be affixed. Done at the Capitol in the City of Madison this third day of August, in the year two thousand twelve.

Scott Walker

Governor

Buffalo Man Sentenced on Fraud Charges

BUFFALO, NY—U.S. Attorney William J. Hochul, Jr. announced today that Dwayne Ferguson, 33, of Buffalo, New York, who was convicted of wire fraud, was sentenced to four years in prison by Chief U.S. District Judge William M. Skretny. The defendant was also ordered to pay $630,000 in restitution.

Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that the defendant is the former owner and operator of Intihar Recovery of New York, an automobile rental, repossession, storage, and towing services business. Ferguson fraudulently obtained money from Nissan Motor Acceptance Corporation, Toyota Financial Services, BMW Financial Services, GMAC Financial Services, and Ford Motor Credit to finance the purchase of motor vehicles for his business. The defendant submitted false and misleading documentation to those lending institutions indicating that his business was credit worthy when, in fact, the business had very few assets and had significant liabilities. The total loss to all the victim businesses was $1,110,937.

The sentence imposed by Judge Skretny will be served following the three-and-a-half- to seven-year New York State sentence Ferguson is currently serving following his conviction on charges of possession of a forged instrument and attempted grand larceny.

The sentencing is the result of an investigation by the Buffalo Police Department, under the direction of Commissioner Daniel Derenda; the New York State Department of Motor Vehicles, under the direction of Director Owen McShane; the New York State Department of Taxation and Finance, Criminal Investigations Division, under the direction of Commissioner Thomas Mattox; the New York State Department of Financial Services, Criminal Investigations Division, under the direction of Superintendent Benjamin Lawsky; and the Federal Bureau of Investigation, under the direction of Special Agent in Charge Christopher M. Piehota.

Former Alabama Governor Don Siegelman Re-Sentenced on Bribery, Conspiracy, Fraud, and Obstruction of Justice Charges

WASHINGTON—Former Alabama Governor Don Siegelman was re-sentenced today to serve 78 months in prison for his role in bribery, conspiracy, fraud, and obstruction of justice charges involving former HealthSouth CEO Richard M. Scrushy, announced Assistant Attorney General Lanny A. Breuer of the Department of Justice’s Criminal Division and Acting U.S. Attorney Louis V. Franklin Sr. of the Middle District of Alabama.

At a hearing today in Montgomery, Alabama, in addition to the prison term, U.S. District Judge Mark Fuller ordered Siegelman to serve three years of supervised release and to pay a $50,000 fine. Siegelman was originally convicted by a federal jury in June 2006 of seven counts of an indictment, involving bribery, conspiracy to commit honest services mail fraud, honest services mail fraud, and obstruction of justice.

In June 2007, Siegelman began serving a prison term on those convictions but was released on bond in March 2008, pending an appeal in which two honest services mail fraud counts were reversed. All five remaining counts were upheld in two opinions of the Eleventh Circuit Court of Appeals, and the U.S. Supreme Court denied further appellate review. The district court reviewed and denied all Siegelman’s various claims for a new trial prior to his re-sentencing today.

Siegelman stands convicted of bribery, conspiracy, and honest services mail fraud arising from a scheme in which Scrushy paid $500,000 to control a seat on the state regulatory board governing HealthSouth. Siegelman further stands convicted of obstruction of justice arising from a federal investigation of an alleged pay-to-play scheme with Alabama businessman Clayton “Lanny” Young.

“The outcome of this case reflects the unflagging commitment of the Department of Justice to hold public officials accountable for corruption,” said Assistant Attorney General Breuer. “The Criminal Division’s Public Integrity Section is determined to continue to vigorously pursue bribery cases involving federal, state, and local officials.”

“Today’s sentence is another welcomed step toward closure to a dark chapter in Alabama politics. Six years after the trial jury rendered its verdict, and the appellate courts reviewed the evidence, former Governor Don Siegelman remains convicted for the serious felonious crimes he committed while serving as governor of Alabama. The verdict, the appellate review, and the sentence have energized my faith in our legal system and renewed my commitment to prosecute politicians who commit bribery, honest services mail fraud, conspiracy, and obstruction of justice. I am very proud of the courage displayed by everyone who assisted in the prosecution of this very significant and important case,” said Acting U.S. Attorney Franklin.

The case is currently being prosecuted by Acting U.S. Attorney for the Middle District of Alabama Louis V. Franklin Sr., a senior career prosecutor in the U.S. Attorney’s Office; and Richard C. Pilger, Director of the Election Crimes Branch of the Criminal Division’s Public Integrity Section.

Owner of Chantilly Pain Clinic Convicted of Drug Trafficking, Fraud Charges

ALEXANDRIA, VA—Paul Boccone, 56, was convicted of conspiring to distribute and distribution of oxycodone, health care fraud, and payroll tax evasion for his role as the owner and president of Chantilly Specialists pain clinic in Chantilly, Virginia. Charles Brown, Jr., 51, a nurse practitioner with Chantilly Specialists, was convicted of conspiring to distribute and distribution of oxycodone.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Kenneth T. Cuccinelli, Attorney General of Virginia; James W. McJunkin, Assistant Director in Charge of the FBI’s Washington Field Office; Richard A. Raven, Special Agent in Charge of the Washington Field Office of IRS-Criminal Investigation; and Gary Cantrell, Deputy Inspector General for Investigations at HHS-OIG, made the announcement after the verdict was accepted by United States District Judge Claude M. Hilton.

The defendants will be sentenced on November 9, 2012. Boccone faces a maximum sentence of 350 years in prison, and Brown faces a maximum sentence of 160 years in prison.

According to court records and evidence at trial, Paul Boccone was the owner and president of Chantilly Specialists, a pain management clinic in Chantilly, Virginia. Although not a trained or licensed medical practitioner, the evidence showed that he treated patients and prescribed narcotics by either forging the signatures of medical practitioners or encouraging medical practitioners to endorse prescriptions that he wrote. Charles Brown, Jr. was the lead nurse practitioner at the practice and assisted Boccone by continuing to prescribe large amounts of narcotics to patients without medical need. Over the course of the conspiracy, evidence showed that at least four Chantilly Specialists patients died of overdoses related to the drugs they obtained from the practice.

This case was investigated by the FBI Washington Field Office; Internal Revenue Service; Department of Health and Human Services, Office of the Inspector General; and Fairfax County Police Department.

Assistant United States Attorney Michael P. Ben’Ary and Special Assistant United States Attorney and Virginia Assistant Attorney General Marc J. Birnbaum are prosecuting the case on behalf of the United States.

Robert D. Foley, III Named Special Agent in Charge of Detroit Division

Director Robert S. Mueller, III has named Robert D. Foley, III special agent in charge of the FBI’s Detroit Division. Mr. Foley most recently served as the special agent in charge of the Administrative Division in the Washington Field Office.

Mr. Foley entered on duty as a special agent with the FBI in September 1996. He first reported to the Bridgeport Resident Agency in the New Haven Division, where he investigated violent crimes, gangs, and narcotics matters. He was also a member of the SWAT team and served as a firearms instructor.

In 1999, Mr. Foley transferred to the San Juan Division and investigated police corruption, gang,s and narcotics matters. In 2003, Mr. Foley was promoted to supervisory special agent at FBI Headquarters, where he was assigned as an agent attorney in the Office of General Counsel. He later moved to the Public Corruption Unit in the Criminal Investigative Division.

In 2005, Mr. Foley reported to the Tucson Resident Agency in the Phoenix Division. While there, he supervised a Joint Terrorism Task Force and a Criminal Enterprise Squad. He was then assigned senior supervisory resident agent of the Yuma and Lake Havasu Resident Agencies to supervise all FBI investigative programs in the area, with an emphasis on counterterrorism matters, public corruption, and Indian Country crimes.

Mr. Foley returned to FBI Headquarters in 2007 as the chief of the Transfer Unit in the Human Resources Division. In this role, he was responsible for all agent and professional staff transfers. In 2008, he was promoted to assistant special agent in charge of the Criminal Branch in the Louisville Division, where he also oversaw eight resident agencies and the Administrative program.

In 2009, Mr. Foley was promoted to chief of the Employee Services Section in the Human Resources Division. While there, he supervised the FBI’s payroll and personnel actions processing, transfers, employee relations, benefits, and awards programs, as well as the HRD Call Center. Mr. Foley was then assigned chief of the Employee Development and Selection Program Section, with responsibility for promotional processes and supervisor development.

Mr. Foley is originally from Massachusetts and has a Bachelor of Arts degree from Rhode Island College, a Master of Science degree in business administration from Boston University, and a Juris Doctorate from the New England School of Law-Boston. Before joining the FBI, Mr. Foley served six years as an aviator in the U.S. Army. He is married and has a daughter.

Four North Alabama Men Convicted in Marijuana Trafficking Conspiracy

BIRMINGHAM—A federal jury today convicted four North Alabama men in a conspiracy to traffic marijuana, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Patrick J. Maley, and Madison-Morgan County High Intensity Drug Trafficking Area Task Force Commander Dewayne McCarver.

Following an eight-day trial before U.S. District Judge Karon O. Bowdre, the jury convicted Kingy Ossarius Holden, 34, of Toney; Myron Dewayne Tibbs, 34; Michael Arnez “Little Mike” Brown, 32; and William Demetro “Little Will” Holden, 24, all of Huntsville, for conspiring to operate the drug-distribution ring based in Madison County. From 2006 to 2011, the drug ring distributed more than 2,000 pounds of marijuana, evidence at trial showed.

The jury also convicted Holden on four counts of distributing marijuana and one count of being a convicted felon in possession of a firearm.

Evidence in the case included conversations from federal wire taps which were conducted between July 2011 and September 2011. The wiretaps intercepted calls among all the defendants in which they discussed the drug trafficking operation. During the course of the wiretap investigation, law enforcement seized about $250,000 in proceeds of the illegal marijuana-distribution ring.

Along with the four men convicted today, eight other defendants in the case pled guilty before trial. Those defendants and their charges are as follows:

■Ivan Fletcher, 36, of Toney: convicted felon in possession of a firearm, possession with intent to distribute cocaine, and possessing a firearm in furtherance of a drug-trafficking crime.

■Roy Christian Lee, 44, of Huntsville: conspiracy to distribute marijuana and cocaine, possessing a firearm in furtherance of a drug-trafficking crime, and possession with intent to distribute cocaine.

■Cedrick Ramon “Ced” or “Big Ced” Carroll, 33, of Tuscumbia: conspiracy to distribute cocaine, possession with intent to distribute powder and crack cocaine, and possessing a firearm in furtherance of a drug-trafficking crime.

■Ashley Nicole Chunn, 24, of Huntsville: conspiracy to distribute marijuana.

■Nathan Searcy Wlliams, 29, of Northport: conspiracy to distribute marijuana and four counts of money laundering.

■Sharode Durome Pickett, 32, of Birmingham: conspiracy to distribute marijuana.

■Lamaric Trevelle “Akbar” Douglass, 22, of Huntsville: conspiracy to distribute marijuana and possession with intent to distribute marijuana.

■Napoleon Lee Ingram, 44, of Muscle Shoals: conspiracy to distribute cocaine and possession with intent to distribute cocaine.

Assistant U.S. Attorneys Laura D. Hodge, Enid D. Athanas, and Jennifer Murnahan prosecuted the case.

Statement by Secretary Napolitano on Shooting in Wisconsin

"Yesterday's tragedy in Wisconsin is deeply saddening.  The Department of Homeland Security will continue to provide any support necessary to the ongoing investigation.  Our thoughts and prayers go out to those impacted by this tragedy, the Sikh community, and especially the family and friends of those killed or wounded."

Panetta Asks Board to Review Military Justice in Deployed Areas By Jim Garamone American Forces Press Service WASHINGTON, Aug. 3, 2012 – Defense Secretary Leon E. Panetta has asked an independent board to review the application of military justice in deployed areas, the Pentagon’s General Counsel Jeh C. Johnson announced today. A subcommittee of the newly established Defense Legal Policy Board will examine instances where service members are alleged to have committed offenses against civilians in combat zones. Former DOD General Counsel Judith Miller and retired Army Maj. Gen. Walter B. Huffman will co-chair the subcommittee. Panetta signed a memorandum outlining the board’s task on July 30. “We know that, over the last 10 years in Iraq and Afghanistan, bad things have happened involving combat excesses and innocent civilians in deployed areas,” Panetta wrote in the memo. The abuses, he said, “have been rare among our professional fighting force,” but he said they became huge flash points that threatened to undermine the U.S. mission and relations with other countries. The board will review instances going back to October 2001 -- the beginning of Operation Enduring Freedom in Afghanistan. Johnson said it is important for DOD to learn from past experiences to ensure the U.S. military justice system is efficient, fair, dependable and credible. The board will look at how alleged offenses are initially reported and investigated. It will also look at the initial and final disposition authority in such cases, and whether in joint, deployed areas cases should be handled with joint resources rather than those from a single service, and whether sufficient resources exist in deployed areas to conduct proper investigations. The Defense Legal Policy Board was established in April. It serves as a federal advisory committee providing the Secretary of Defense with informed, independent advice on issues related to DOD, and can propose changes to department policies and goals. Others serving on the subcommittee, whose members are appointed by the Secretary of Defense, are retired Army Gen. Peter W. Chiarelli, retired Marine Corps Lt. Gen. John F. Sattler, retired Marine Corps Maj. Gen. Arnold L. Punaro, former Deputy Attorney General James B. Comey Jr., retired Army Judge Advocate General officer Col. Richard D. Rosen, the assistant U.S. attorney for Minnesota Charles Kovats, Yale Law School scholar Eugene Fidell and retired New York Police Department criminal investigator Roger Parrino. “This board is not composed entirely of lawyers,” Johnson said. “Military justice is a tool for commanders in deployed areas. It’s not a lawyer’s tool -- it’s a tool for commanders.”

By Jim Garamone
American Forces Press Service

WASHINGTON, Aug. 3, 2012 – Defense Secretary Leon E. Panetta has asked an independent board to review the application of military justice in deployed areas, the Pentagon’s General Counsel Jeh C. Johnson announced today.

A subcommittee of the newly established Defense Legal Policy Board will examine instances where service members are alleged to have committed offenses against civilians in combat zones. Former DOD General Counsel Judith Miller and retired Army Maj. Gen. Walter B. Huffman will co-chair the subcommittee.
Panetta signed a memorandum outlining the board’s task on July 30. “We know that, over the last 10 years in Iraq and Afghanistan, bad things have happened involving combat excesses and innocent civilians in deployed areas,” Panetta wrote in the memo. The abuses, he said, “have been rare among our professional fighting force,” but he said they became huge flash points that threatened to undermine the U.S. mission and relations with other countries.

The board will review instances going back to October 2001 -- the beginning of Operation Enduring Freedom in Afghanistan. Johnson said it is important for DOD to learn from past experiences to ensure the U.S. military justice system is efficient, fair, dependable and credible.

The board will look at how alleged offenses are initially reported and investigated. It will also look at the initial and final disposition authority in such cases, and whether in joint, deployed areas cases should be handled with joint resources rather than those from a single service, and whether sufficient resources exist in deployed areas to conduct proper investigations.

The Defense Legal Policy Board was established in April. It serves as a federal advisory committee providing the Secretary of Defense with informed, independent advice on issues related to DOD, and can propose changes to department policies and goals.

Others serving on the subcommittee, whose members are appointed by the Secretary of Defense, are retired Army Gen. Peter W. Chiarelli, retired Marine Corps Lt. Gen. John F. Sattler, retired Marine Corps Maj. Gen. Arnold L. Punaro, former Deputy Attorney General James B. Comey Jr., retired Army Judge Advocate General officer Col. Richard D. Rosen, the assistant U.S. attorney for Minnesota Charles Kovats, Yale Law School scholar Eugene Fidell and retired New York Police Department criminal investigator Roger Parrino.

“This board is not composed entirely of lawyers,” Johnson said. “Military justice is a tool for commanders in deployed areas. It’s not a lawyer’s tool -- it’s a tool for commanders.”

Project Ceasefire

CHILLICOTHE MAN SENTENCED FOR ILLEGAL FIREARM

KANSAS CITY, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced today that a Chillicothe, Mo., man has been sentenced in federal court for illegally possessing a firearm.

Joseph M. Johnson, 33, of Chillicothe, was sentenced by U.S. District Judge Brian C. Wimes on Monday, July 30, 2012, to four years and nine months in federal prison without parole.

On Feb. 7, 2012, Johnson pleaded guilty to being a felon in possession of a firearm. Johnson pawned a Winchester 30-06 caliber rifle at a Chillicothe pawn shop and about a month later attempted to redeem the rifle.

Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Johnson has prior felony convictions for involuntary manslaughter, unlawful use of a weapon and assault.

This case was prosecuted by Assistant U.S. Attorney Christina Y. Tabor. It was investigated by the Livingston County, Mo., Sheriff's Department, the Independence, Mo., Police Department and the ATF.
Project Ceasefire, launched in October 1999, is a cooperative initiative by federal and local law enforcement and the Kansas City Crime Commission that targets for federal prosecution persons who unlawfully use or possess firearms.

DEA Administrator Awarded Order of Merit from Dominican President

Dominican Republic President Leonel Fernandez today awarded the Order of Merit to DEA Administrator Michele M. Leonhart for her effort and commitment to battling global drug trafficking.  The Order of Merit of Duarte, Sanchez, and Mella is the principal order of the Dominican Republic, and is conferred by the President to both civilians and militaries for distinguished services.

Founded in 1931 as the Order of Merit of Juan Pablo Duarte and renamed in 1954, the order is conferred by the President as Head of State for distinguished service to the Republic. The grade of Commander is normally awarded to recipients of the rank of provincial governors, heads of universities, artists and writers of international reputation and the like. Duarte, Sánchez and Mella were heroes of the struggle for Dominican independence.

LAST DEFENDANT IN EAST SIDE POSSE GANG CASE PLEADS GUILTY

Charleston, South Carolina – United States Attorney Bill Nettles stated today that the last defendant in a City of Charleston gang case pled guilty in Federal Court, before the Honorable P. Michael Duffy. The case ultimately involved a forty-five (45) count indictment, naming Calvin Levar Dixon, a/k/a "Booga", a/k/a Calvin Dion; Michael Angelo Hayes, a/k/a "Little Mike", a/k/a "Mikey", a/k/a Ricky Lamont Hayes; Arnold Terrell Bellinger, a/k/a "A-1"; Jamile Raynod Harley, a/k/a "Miles", a/k/a "Mile", a/k/a "Tall Mile"; George Avery Bellinger, a/k/a "Lil George", a/k/a "Lil G", a/k/a "G"; Kevin Lemort Coaxum, a/k/a "Blizz"; Iman Gantt, a/k/a "I", a/k/a Imam Gantt, a/k/a Imen Gantt; Kadrin Christopher Simmons, a/k/a "Little Black"; Laquell Takeem Dixon, a/k/a "Quelly", a/k/a "Q-Nuts", a/k/a "Q"; Kenneth Bernard Brown, a/k/a "Numsey"; Shabazz Romell Wise, a/k/a "Little Bazz"; Montrell Sharife Wise, a/k/a "Trell"; Tony Brown; Walter Demeatrus Brown, a/k/a "Cook-a-Rooka"; and Charles Fabers, a/k/a Charles Fabers, Jr., a/k/a Junior Fabers, a/k/a Charles Fabes, a/k/a Charles Favors.

 The prosecution alleged that all were members of a criminal street gang known as "ESP" or the "East Side Posse." This is a criminal street gang which operated in downtown Charleston in a neighborhood near a fast food restaurant on Meeting Street. The ESP territory had included Duc's Court, Line Street, Sheppard Street, Hanover Street, and Columbus Street. Drug markets operated at different locations. At least one location was regarded as an open air drug market.

The prosecution noted in various court proceedings that gang members conspired to distribute over a kilogram of gram of heroin as well as more than 280 grams of "crack" cocaine, in addition to selling marijuana. They also used various places on the East Side of Charleston (including residences or stores located in the neighborhood) to either manufacture or distribute drugs.

According to Assistant United States Attorney Kittrell and Special Assistant United States Attorney Linder, the East Side Posse is one of a number of different criminal "street gangs" that has operated in the downtown area. In order to address this criminal activity and to identify the complex distribution network, a joint federal, state, and local law enforcement team made a series of buys of heroin and crack which targeted street level dealers in an eight (8) block area of Charleston.

Investigators learned that many of the defendants grew up together in the same neighborhood and began selling drugs together in the Johnson Street area in the late 90's. They later moved their operation to the neighborhood surrounding Duc's Court. Part of the group (Michael Hayes, Kevin Coaxum, Kadron Simmons, Iman Gantt and others) began dealing out of Duc's Court, which was used as a distribution outlet until a police raid on May 29, 2009. When police raided the house, they found Kevin Coaxum and Iman Gantt inside, along with about one hundred and seventy-two (172) grams of crack, one hundred fifty-eight (158) grams of marijuana; a grinder (for marijuana packaging and distribution); several scales; a GE Turntable microwave oven and Pyrex cups, all with cocaine residue (for cooking crack); and a Hi-Point 9mm semi-automatic handgun which had been used as a house gun to protect drug dealing activities.
Investigators learned that many of the defendants grew up together in the same neighborhood and began selling drugs together in the Johnson Street area in the late 90's. They later moved their operation to the neighborhood surrounding Duc's Court. Part of the group (Michael Hayes, Kevin Coaxum, Kadron Simmons, Iman Gantt and others) began dealing out of Duc's Court, which was used as a distribution outlet until a police raid on May 29, 2009.

When police raided the house, they found Kevin Coaxum and Iman Gantt inside, along with about one hundred and seventy-two (172) grams of crack, one hundred fifty-eight (158) grams of marijuana; a grinder (for marijuana packaging and distribution); several scales; a GE Turntable microwave oven and Pyrex cups, all with cocaine residue (for cooking crack); and a Hi-Point 9mm semi-automatic handgun which had been used as a house gun to protect drug dealing activities.

As a result of that search, the defendants moved their drug distribution operation from Duc's Court. Some began operating from Hanover Street. A number of undercover buys were conducted at this location and sales continued until August 11, 2009, when a search warrant raid was conducted. Michael Hayes was outside the abandoned residence. Inside, officers recovered a Norinco SKS 7.62 x 39 caliber assault rifle, a Hi-Point 9mm semi-automatic handgun, a Hi-Point .380 caliber handgun, eighty three (83) wax paper "bindles" of heroin, four hundred and sixty (460) grams of marijuana, and a scale.
After the raid, the Hanover address was no longer used as a point of sale. In fact, in October of 2009, investigators tried to conduct an undercover buy operation and the confidential informant was instructed to go to an address on Columbus as "people were not allowed at ... Hanover anymore".

A number of undercover buys of crack were also made from the area around a local grocery store on the East Side. Some witnesses described having witnessed an open air drug market and street dealers selling to as many as 40 or more customers each.

The Assistant United States Attorney noted in court proceedings that ESP was sophisticated in terms of marketing its sales of heroin. That drug is often sold in Charleston in small wax paper wrapped packets. These are called bindles and usually sell for $20 each. ESP began selling these at the lower price of $10 a bindle, which became to law enforcement a signature for ESP street dealers.

United States Attorney Nettles noted that the investigation was a success because federal, state, and local law enforcement agencies worked closely together as a unified team. "This essentially is what can happen when everyone works in tandem. Instead of separate agencies working on different cases with each one viewed as single unrelated investigation, a greater community impact is obtained when efforts are combined, information is shared, resources are united, and decisions are made together. I commend the City of Charleston Police Department, the Ninth Circuit Solicitor's Office, the Drug Enforcement Administration and the Bureau of Alcohol, Tobacco, Firearms, and Explosives." Mr. Nettles noted that Assistant Solicitor Stephanie Linder of the Ninth Judicial Circuit was designated by the United States Department of Justice as a Special Assistant United States Attorney to work with Nettles' Violent Crime Task Force, and that the City of Charleston Police Department had assigned Jake Grill to the Drug Enforcement Task Force to work on complex investigations. Nettles said these were examples of the joint effort, and commended the efforts of both, additionally noting that Ms. Linder had been instrumental in the great result.

Chief Greg Mullen of the City of Charleston Police Department said that the partnership between the federal agencies and local police is effective. "We are delighted to see the result of our efforts to combat criminal street gangs operating in our community. Our partnership has achieved great results for a community which has been deeply impacted by criminal activity."

Solicitor Scarlett Wilson said that she was especially pleased with the combined effort and unified command of the investigation. She said her experience as an Assistant United States Attorney convinced her that coordinating state, federal and local efforts produces the greatest result. "You can't have a community impact unless the law enforcement community comes together" she noted, stating that "as ever, there is strength in unity."

Harry S. Sommers, the Special Agent in Charge of the DEA Atlanta Field Division commented "All participating agencies played a crucial role in the eradication of this criminal network. Their drug trafficking activities posed a significant threat to the quality of life in the Charleston, South Carolina area. The dismantling of this organization makes this community safer. I want to thank our federal, state and local law enforcement counterparts, who had a direct impact in making this investigation a success."
All the agencies pledged continued support. ATF will continue to dedicate whatever resources necessary in the fight against armed violent crime," said ATF Special Agent in Charge Wayne L. Dixie, "Along with our law enforcement partners we will aggressively enforce the laws that hold those violent criminals accountable for their actions."

CALVIN LEVAR DIXON, a/k/a "Booga", a/k/a Calvin Dion: Pled guilty to Count 1 (conspiracy to distribute a kilogram of heroin, more than 280 grams of crack and more than 500 grams of cocaine, and to use various places in Charleston to manufacture and distribute drugs), Count 16 (distribution of heroin on October 20, 2009); Count 17 (distribution of heroin on October 22, 2009)); Count 21 (distribution of crack on November 12, 2009); Count 37 (distribution of heroin on March 21, 2009); and Count 40 (possession of a firearm as a convicted felon on April 22, 2010). Mr. Dixon is facing a mandatory minimum sentence of 20 years in federal prison to a maximum of life in prison.

MICHAEL ANGELO HAYES, a/k/a "Little Mike", a/k/a "Mikey", a/k/a Ricky Lamont Hayes: Pled guilty to Count 1 (conspiracy to distribute a kilogram of heroin, more than 280 grams of crack and more than 500 grams of cocaine, and to use various places in Charleston to manufacture and distribute drugs); Count 20 (distribution of heroin on November 12, 2009); Count 24 (distribution of heroin on November 24, 2009); and Count 38 (distribution of heroin on April 1, 2010). Mr. Hayes is facing a mandatory minimum sentence of 20 years in federal prison to a maximum of life in prison. Additionally, he is a career offender and under the advisory Federal sentencing guidelines he faces an enhanced sentence.

ARNOLD TERRELL BELLINGER, a/k/a "A-1": Count 1 (conspiracy to distribute a kilogram of heroin, more than 100 grams of heroin and 28 grams of crack, and to use various places in Charleston to manufacture and distribute drugs), Count 9 (distribution of heroin on August 5, 2009); Count 13 (distribution of heroin on August 25, 2009); and Count 36 (possession with intent to distribute crack on March 26, 2010). Mr. Bellinger is facing a mandatory minimum sentence of 10 years in federal prison to a maximum of life in prison. Additionally, he is a career offender and under the advisory Federal sentencing guidelines he faces an enhanced sentence.

JAMILE RAYNOD HARLEY, a/k/a "Miles", a/k/a "Mile", a/k/a "Tall Mile": Pled guilty to Count 1 (conspiracy to distribute a kilogram of heroin, more than 280 grams of crack and more than 500 grams of cocaine, and to use various places in Charleston to manufacture and distribute drugs); Count 20 (distribution of heroin on November 12, 2009); Count 22 (distribution of crack cocaine on November 18, 2009), Count 26 (distribution of crack cocaine on December 4, 2009, along with Kenneth Bernard Brown), and Count 31 (distribution of crack cocaine on January 5, 2010). Mr. Harley is facing a mandatory minimum sentence of 10 years in federal prison to a maximum of life in prison. Additionally, he is a career offender and under the advisory Federal sentencing guidelines he faces an enhanced sentence.
GEORGE AVERY BELLINGER, a/k/a "Lil George", a/k/a "Lil G", a/k/a "G": Pled guilty to Count 30 (distribution of crack cocaine on December 30, 2009); Count 32 (distribution of crack cocaine on January 8, 2010; and Count 44 (possession with intent to distribute crack cocaine on November 4, 2010). Mr. Bellinger is facing a maximum sentence of 30 years in federal prison.

KEVIN LEMORT COAXUM, a/k/a "Blizz": Pled guilty to Count 1 (conspiracy to distribute crack cocaine (more than 28 grams) and marijuana), and to use various places in Charleston to manufacture and distribute drugs), Count 7 (possession with intent to distribute crack cocaine with Iman Gantt on May 29, 2009). Mr. Coaxum is facing a mandatory minimum sentence of 10 years in federal prison to a maximum of life in prison. Additionally, he is a career offender and under the advisory Federal sentencing guidelines he faces an enhanced sentence.

IMAN GANTT, a/k/a "I", a/k/a Imam Gantt, a/k/a Imen Gantt: Pled guilty to Count 1 (conspiracy to distribute more than 28 grams of crack cocaine), and to use various places in Charleston to manufacture and distribute drugs); Count 4 (distribution of crack cocaine on May 22, 2009 with Kadrin Simmons); Count 6 (possessing a firearm in furtherance of a drug trafficking crime on May 29, 2009); and Count 7 (possession with intent to distribute crack cocaine with Iman Gantt on May 29, 2009). Mr. Gantt is facing a mandatory minimum sentence of 15 years in federal prison to a maximum of life in prison.

KADRIN CHRISTOPHER SIMMONS, a/k/a "Little Black": Pled guilty to Count 1 (conspiracy to distribute crack cocaine and marijuana), and to use various places in Charleston to manufacture and distribute drugs); Count 42 (possession with intent to distribute crack cocaine on May 5, 2010). Mr. Simmons is facing a maximum sentence of 30 years in federal prison.

LAQUELL TAKEEM DIXON, a/k/a "Quelly", a/k/a "Q-Nuts", a/k/a "Q": Pled guilty to Count 1 (conspiracy to distribute more than 28 grams of crack cocaine), and to use various places in Charleston to manufacture and distribute drugs); Count 25 (distribution of crack on November 24, 2009); Count 29 (distribution of crack on December 17, 2009). Mr. Dixon is facing a mandatory minimum sentence of 10 years in federal prison to a maximum of life in prison.

KENNETH BERNARD BROWN, a/k/a "Numsey": Pled guilty to Count 1 (conspiracy to distribute crack cocaine and marijuana), and to use various places in Charleston to manufacture and distribute drugs); Count 26 (distribution of crack on December 4, 2009); Count 27 (distribution of crack on December 9, 2009); Count 28 (distribution of crack on December 16, 2009). Mr. Brown is facing a maximum sentence of 20 years in federal prison.

SHABAZZ ROMELL WISE, a/k/a "Little Bazz": Pled guilty to Count 1 (conspiracy to distribute more than 28 grams of crack cocaine), and to use various places in Charleston to manufacture and distribute drugs); Count 34 (distribution of crack on February 11, 2010); Count 45 (distribution of crack on December 17, 2010). Mr. Wise is facing a mandatory minimum sentence of 10 years in federal prison to a maximum of life in prison.

MONTRELL SHARIFE WISE, a/k/a "Trell": Pled guilty to Count 1 (conspiracy to distribute more than 28 grams of crack cocaine), and to use various places in Charleston to manufacture and distribute drugs); Count 35 (distribution of crack on December 18, 2010); Count 43 (possession of a firearm as a convicted felon on June 16, 2010). Mr. Wise is facing a mandatory 5 years in federal prison to a maximum of 40 years.
TONY BROWN: Pled guilty to Count 19 (distribution of heroin on November 10, 2009). Mr. Brown is facing a maximum sentence of 30 years in federal prison. However, he is a career offender and under the advisory Federal sentencing guidelines he faces an enhanced sentence.

WALTER DEMEATRUS BROWN, a/k/a "Cook-a-Rooka": Count 1 (conspiracy to distribute heroin and to use various places in Charleston to manufacture and distribute drugs); Count 14 (distribution of heroin on October 13, 2009); Count 15 (distribution of heroin in October 16, 2009); and Count 16 (distribution of heroin on October 20, 2009 with Calvin Dixon). Mr. Brown is facing a maximum sentence of 30 years in federal prison. Additionally, he is a career offender and under the advisory Federal sentencing guidelines he faces an enhanced sentence.
and,

CHARLES FABERS, a/k/a Charles Fabers, Jr., a/k/a Junior Fabers, a/k/a Charles Fabes, a/k/a Charles Favors: Count 1 (conspiracy to distribute heroin and to use various places in Charleston to manufacture and distribute drugs); Count 18 (distribution of heroin on November 5, 2009); Count 41 (possession with intent to distribute heroin on April 22, 2009). Mr. Fabers is facing a maximum sentence of 30 years in federal prison.

Mr. Nettles said that Assistant United States Attorney Sean Kittrell and Special Assistant United States Attorney Stephanie Linder of the Charleston office were the federal prosecutors responsible for the investigation and prosecution of the case.

ATF SAN FRANCISCO FIELD DIVISION WELCOMES NEW LEADER JOSEPH M. RIEHL SAN

 FRANCISCO – The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) today announced the arrival of Joseph M. Riehl, as the new special agent in charge (SAC) of the San Francisco Field Division. He will direct the investigative activities of the law enforcement agency responsible for enforcing federal laws and regulations involving firearms and explosives within an area encompassing the central and northern portion of California and Nevada. Riehl takes the helm with more than 25 years of expertise and insight as a special agent with ATF.

“Our priority is to focus on impacting violent crime and making our neighborhoods safer by identifying and arresting violent offenders,” said Riehl. “We will renew partnerships and forge new working relationships with law enforcement at all levels of government as well as with community leaders and key stakeholders in California and Nevada.”

Riehl joined ATF as a special agent in 1987 and was assigned to the Miami Field Division, as a criminal investigator, where, he conducted and participated in several prominent cases, including bombing investigations which involved fatalities and a significant serial arsonist investigation that spanned throughout the southeast region. In 1994, he served in ATF headquarters as both a project officer in the Firearms Enforcement Division, and an explosives training manager in the Office of Training and Professional Development.

In 1997, Riehl was promoted to resident agent in charge, in the Providence, Rhode Island Field Office, where he lead and oversaw special agents who conducted criminal investigations of violent gang members, firearms traffickers, and individuals who committed explosive violations. As a first line supervisor he cultivated great working relationships with his local and federal counterparts as well as, federal and county prosecutors. Riehl was promoted in 2004, to Assistant Special Agent in Charge, in the Baltimore Field Division, where he guided and supported operations throughout the states of Maryland and Delaware. He launched multi-agency task forces to combat violent crime in the Baltimore area; and served as one of the ATF’s incident commanders on the high-profile Washington D.C. sniper; and the Maryland and Washington D.C., serial arsonist investigations.

In 2005, Riehl served as the Chief, of the Arson and Explosives Programs Division at the ATF Headquarters. He addressed ATF policy and developed initiatives from a national prospective. Riehl assumed the responsibilities of the deputy director of the Terrorist Explosive Device Analytical Center at Quantico, Virginia in 2011. He coordinated and managed a national effort of law enforcement, military, and intelligence assets to gather and provide intelligence of improvised explosive devices to mitigate threats against the United States and its citizens.

Miami Home Health Care Agency Owner Pleads Guilty in $42 Million Medicare Fraud Scheme

The owner and operator of a Miami health care agency pleaded guilty today for his participation in a $42 million home health Medicare fraud scheme, announced the Department of Justice, the FBI and the Department of Health and Human Services (HHS). 

Eulises Escalona, 43, pleaded guilty before U.S. District Judge Joan A. Lenard to one count of conspiracy to commit health care fraud. In addition, as part of his plea agreement, Escalona agreed to forfeit to the government two residential properties and cash proceeds of the fraud contained in several bank accounts.  

  

According to the court documents, Escalona was the owner of Willsand Home Health Inc., a Florida home health agency that purported to provide home health care and physical therapy services to eligible Medicare beneficiaries.   

According to plea documents, Escalona conspired with patient recruiters for the purpose of billing the Medicare program for unnecessary home health care and therapy services.  Escalona and his co-conspirators paid kickbacks and bribes to patient recruiters in return for these recruiters providing patients to Willsand Home Health, as well as prescriptions, Plans of Care (POCs) and certifications for medically unnecessary therapy and home health services for Medicare beneficiaries.  Escalona and his co-conspirators would pay kickbacks and bribes directly to physicians in exchange for those physicians providing home health and therapy prescriptions, POCs and medical certifications to Escalona and his co-conspirators. Escalona used these prescriptions, POCs and medical certifications to fraudulently bill the Medicare program for home health care services, which Escalona knew was in violation of federal criminal laws.

According to plea documents, at Willsand Home Health, patient files for Medicare beneficiaries were falsified to make it appear that such beneficiaries qualified for home health care and therapy services when, in fact, many of the beneficiaries did not actually qualify for such services. Escalona knew that in many cases the patient files at Willsand Home Health were falsified. 

From approximately January 2006 through November 2009, Escalona and his co-conspirators submitted approximately $42 million in false and fraudulent claims to Medicare and Medicare paid approximately $27 million on those claims.

The plea was announced by Assistant Attorney General Lanny A. Breuer of the Criminal Division; U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida; Jeffrey C. Mazanec, Acting Special Agent-in-Charge of the FBI?s Miami Field Office; and Special Agent-in-Charge Christopher Dennis of the HHS Office of Inspector General (HHS-OIG), Office of Investigations Miami Office.

This case is being prosecuted by Senior Trial Attorney Joseph S. Beemsterboer of the Criminal Division?s Fraud Section.  The case was investigated by the FBI and HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division?s Fraud Section and the U.S. Attorney?s Office for the Southern District of Florida.

Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged more than 1,330 defendants who have collectively billed the Medicare program for more than $4 billion.  In addition, HHS?s Centers for Medicare and Medicaid Services, working in conjunction with HHS-OIG, is taking steps to increase accountability and decrease the presence of fraudulent providers.

Deputy Attorney General James M. Cole Speaks at the COPS Community Policing Conference

Bethesda, Md. ~ Wednesday, August 1, 2012

 Thank you, Barney, for your kind words and for inviting me to join you today.   I am personally grateful, and the Department is fortunate for the stewardship that you and Mary Lou provide over this critical constituency and set of issues.   I applaud your consistent, diligent support for law enforcement.   The resources you’ve made available – from grant programs and technical assistance, to educational publications and informational forums – evidences your commitment to offering dynamic and effective leadership in the field of policing.   

 

 I’d also like to thank each of you attending today.   Public safety is a collaborative effort.   The topics discussed here center around issues that have been brought to the Justice Department by those in the field, like you.   We organize this conference to address these issues, with the goal of creating a productive dialogue and, together, determining next steps to implement to bring about necessary changes in policing and crime fighting.

 

Our main objective at the Department is collaboration.   You will hear a great deal of discussion over the next two days about partnerships, and today I’d like to talk to you specifically about effective ways we can work together to address crime.   As chiefs and sheriffs, officers and deputies, educators and researchers, you see firsthand the devastating impact crime can have not only on those who have been personally victimized, but also on their families and the communities around them.        

I know that you also see firsthand the dream that can be lost by a child when her parent chooses a life in crime, or by a young person who decides to turn to crime, or by a former offender who makes the wrong choice and breaks the law again.

 

We realize that the protection of our communities, in so many ways, falls directly on your shoulders.    But you are not in this alone.   If there is one idea that you walk away from this conference with, I hope it will be that we at the Justice Department are your partners in this effort.    Together, we will continue to take a comprehensive and collaborative approach to finding the solutions that are most effective in your communities.    And in this budget climate, we are keenly aware of the need to make sure that we’re coordinating our efforts to make public safety dollars go even further.   

This coordinated approach to finding solutions involves more than just enforcement -- we must also direct our efforts to prevent the occurrence of crime in the first place, provide support through intervention programs, and provide individuals reentering our communities from jails and prisons with the tools they need to successfully turn away from crime.    By balancing these four legs of the stool—enforcement, prevention, intervention and reentry— together we can attain our shared goal of finding cost effective ways to make our communities safer.       

Community policing is and has always been an integral part of that strategy.   Community policing focuses on problem-solving and partnering with the community to address all aspects of threats against public safety.   This approach gets community stakeholders involved in the work of fighting crime, builds trust between officers and local residents, and ultimately improves public confidence in law enforcement’s effectiveness and in the integrity of the criminal justice system.  

 

And this is more than just a concept – this is law enforcement infrastructure that serves over 80 percent of the nation’s public.   

Over the last three years, funding through the COPS Office has helped add over 7,000 officers to the field.   As Barney mentioned earlier, just a few weeks ago, the COPS Office delivered an additional $111 million to hire new officers and protect law enforcement jobs in jeopardy.   Money talks and this is a significant statement about the Department’s priorities given the current fiscal climate.   We are particularly proud that 600 military veterans will be funded through this investment—an important step towards the President’s goal of opening up more opportunities for our veterans.   Law enforcement is an honored profession that demands many of the same attributes as military service – character, personal bravery, and a deep commitment to public service.   By adding more veterans to our police departments, we not only look after those who have put their lives on the line to protect us, we enhance those shared, valiant qualities in the delivery of community policing around the country.  

 

 In addition, funding through the COPS Hiring Program will be used to save nearly 200 jobs in jeopardy of being cut due to local budget issues.   The dramatic impact the economy has had on local policing has been discussed at length.   Too many local departments are still dealing with budget shortfalls, resulting in changes to their service delivery.   We are making every effort, Department-wide, to continue to find ways to assist you in this challenge.

 

 And frankly we are fortunate that this is one of the few areas of bipartisan support these days.   Recent appropriations activity in the House highlights bipartisan appreciation for the COPS Hiring Program by proposing nearly $200 million for 2013.   With the Senate proposing close to $250 million and the Administration asking for approximately $300 million, resources permitting, we hope to be in a position to plan an even more robust hiring program next year.  

 

 In addition to our commitment to community policing strategies and providing much-needed resources for officers and training, the Department of Justice recognizes that more must be done to ensure crime prevention.   I’d like to briefly discuss three of our efforts: one focused on reducing youth violence, another on better serving the innocent children found on crime scenes, and finally, our commitment to reducing recidivism at the state, local and federal level.       

The National Forum on Youth Violence Prevention (the Forum) -- launched two years ago at the direction of President Obama -- brings together a network of communities, federal agencies like the Departments of Justice and Education, corporate partners and  non-profit groups, along with neighborhood and faith-based organizations and youth representatives, to share information and build local capacity to prevent and reduce youth violence.  The efforts of these federal agencies maximize and leverage existing resources by sharing “what works” between federal, state and local partners.  

 

The Forum creates a national conversation about youth and gang violence by increasing awareness and building local capacity to more effectively address the issue. We are creating a new model of federal and local collaboration, encouraging partners on all sides to change the way they do business by sharing common challenges and promising strategies - all leading to coordinated action.   The Forum is currently active in Boston, Chicago, Detroit, Memphis, Salinas, and San Jose, with plans to expand to additional cities soon. It also complements the Attorney General’s Defending Childhood Initiative, a Department of Justice-wide effort designed to prevent and reduce the harm caused by children’s exposure to violence.

 

 The Attorney General also announced the launch of an online toolkit -- now available to the public -- that provides resources on how to gather and better utilize data on youth violence, identify community assets, develop measurable objectives, and create and implement your own plans.  

 

We are also committed to better identifying and serving a vulnerable group whom we refer to as “Drug Endangered Children”.   In response to the Administration’s 2010 National Drug Control Strategy, the Department established the Federal Interagency Task Force on Drug Endangered Children (or “DEC”). I am privileged to chair this important task force, which benefits from active participation from multiple components within the Department of Justice, as well as the Office of National Drug Control Policy and the U.S. Departments of Health and Human Services, Education, Homeland Security, Transportation, and Interior. The DEC Task Force is committed to identifying ways to better serve and protect drug endangered children by building partnerships on the federal, state, tribal, and local levels.

 

Why is this constituency a priority for us? Over 9 million children – almost 13% of the child population – live in households where a parent or other adult uses, manufactures, or distributes illicit drugs.   In 81% of the reported cases of child abuse and neglect, substance abuse is rated as either the worst or second worst problem in the home.   And a sad fact of which you are all likely well aware—         Drug Endangered Children are almost 60% more likely to be arrested as juveniles.   This is a prime opportunity for prevention.   Earlier interventions with these kids is not only the right thing to do—but one of our best hopes of stopping the cycles of crime.

 

The COPS office has been a key partner in our effort to better identify and serve Drug Endangered Children.   Funding through COPS has supported the development of   a CoreDEC curriculum and enabled thousands of state, local and tribal law enforcement personnel to receive DEC training.   Last year, in coordination with members of the DEC Task Force, COPS helped develop a resources CD for professionals, bringing together tools created and identified by its federal partners into one, easy to use and free toolkit—which includes first responder checklists and other valuable tools to better identify and serve these kids.

 

 In addition to preventing crime by addressing youth violence and youth who are exposed to violence and crime, we know it is critical to reduce recidivism.   A truly productive conversation regarding the evolution of policing has to include prisoner reentry and practices that reduce the number of persons who enter and re-enter the criminal justice system.  

 

We need to hold accountable those who commit crimes – especially violent offenders and those who offend repeatedly – either through incarceration or through other effective sanctions.    At the same time, we know that time spent behind bars adversely affects so many aspects of a former prisoner’s life – from employment and education to housing opportunities.    These things influence a person’s chances of transitioning back into our communities to become a productive, law-abiding citizen, of remaining free from crime, and of becoming a taxpayer who can contribute to our revenue bases.   It also impacts their families and communities who are depending on them to become law-abiding, productive citizens.

 

Providing former offenders with the skills and resources they need to successfully reenter society is absolutely critical if we have any hope of preventing former offenders from again engaging in criminal conduct that not only harms victims, but also the communities around them.   And part of community policing is helping to make sure that these former offenders get the help and support they need to become productive members of the community, rather than a danger to the community.

 

 Today, some 2.3 million people – or more than 1 in 100 American adults – are behind bars in the United States.    At some point, 95 percent of these prisoners will be released, meaning some 700,000 people are coming out of our state and federal prisons every year.    We know that two-thirds of all released state prisoners will be re-arrested within three years, and half will return to prison; and among released federal prisoners, 40% are re-arrested or have their supervision revoked within 3 years. 

 

Aside from the very serious implications on public safety, recidivism impacts budgets at the federal, state, and local levels.    Our Bureau of Justice Statistics estimates that more than $74 billion is spent on federal, state, and local corrections annually.    In fact, it is one of the most expensive items in any state budget.    And with more than $6.5 billion spent on the Bureau of Prisons each year -- it takes up a substantial portion of the Department of Justice budget as well.  

These numbers demonstrate that our focus on reentry is critical to not only addressing issues of public safety, but also to addressing issues of economic and budget safety.  

We have much to be proud of in light of our successful efforts to prevent and respond to crime in our communities. The examples I’ve briefly touched on today demonstrate the effectiveness of the partnerships between the many organizations you represent and the Department of Justice in protecting people from crime.   We need to be innovative and cost-effective in protecting victims of crime and making our communities safer.   In light of our tough budgets and limited resources, we need to find ways to do these things smarter and that means doing them together.    We’ve made a lot of progress – but we still have our work cut out for us.    And as I look out among you, I know that this is a challenge we can take on and win.   Through working together, we can make our communities safer in all the ways that matter.  

 

Thank you for all you do to make that happen every day.   Thank you for the essential role you play each of your communities.   Thank you for your support for and partnership with the Department of Justice.

Kansas City Men Sentenced On Gun Charges Involving AK-47

KANSAS CITY, KAN. – Two Kansas City men have been sentenced to federal prison after police found an AK-47 in their car, U.S. Attorney Barry Grissom said.

Lee D. Hill, 24, Kansas City, Kan., was sentenced to 15 years in federal prison. Enoch B. Kennon, Jr., 25, Kansas City, Kan., was sentenced to seven years in federal prison.

Both men pleaded guilty to one count of unlawful possession of a firearm after a felony conviction. In their pleas, they admitted that on Dec. 7, 2011, police were called to the report of shots fired in the 2300 block of Stewart Avenue in Kansas City, Kan. Officers talked to four men in a Cavalier parked in a driveway. The men denied hearing gunshots and went into the residence where the car was parked. Later, one of the men came back out and checked to see whether the car was locked.

Looking through the window of the Cavalier, an officer spotted a Romanian-made AK-47 lying in plain sight on the rear passenger seat and a portion of the barrel of a handgun protruding from under the driver's seat. When officers knocked on the door of the house, three men ran from the rear of the house. Hill, Enoch and co-defendant Reginald D. Green were caught a short distance away. The Cavalier was registered to Hill.
At the time they were arrested both Hill and Enoch were prohibited under federal law from possessing a firearm because they had prior felony convictions. Hill's convictions included fleeing or attempting to elude a law enforcement officer. Enoch's convictions including aggravated battery of a law enforcement officer.
Co-defendant Reginald D. Green is set for sentencing Aug. 28.

Grissom commended the Kansas City, Kan., Police Department, the ATF and Assistant U.S. Attorney Terra Morehead for their work on the case.

KC MAN SENTENCED TO 17 YEARS FOR DRUG TRAFFICKING

KANSAS CITY, Mo. – David M. Ketchmark, Acting United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for his role in a large crack cocaine conspiracy.

Lonnie Goodrich, also known as "Daniel Watkins" and "Verdell Goodrich," 58, of Kansas City, was sentenced by U.S. District Judge Ortrie D. Smith on Tuesday, July 31, 2012, to 17 years and six months in federal prison without parole.

Goodrich was convicted in two separate bench trials of participating in a conspiracy to distribute crack cocaine and of maintaining a drug house at his residence for the use and distribution of crack cocaine.
Goodrich was found guilty before Judge Smith on April 4, 2012, of participating in a conspiracy to distribute crack cocaine in Jackson County, Mo., from Jan. 1, 2007, to Sept. 28, 2009. Nine co-defendants have been sentenced after pleading guilty to their roles in the drug-trafficking conspiracy.

The drug-trafficking conspiracy primarily operated in the 4600 block of Chestnut Avenue in Kansas City, Mo. According to evidence introduced at trial, Goodrich sold crack cocaine from his residence on Chestnut Avenue. The conspiracy is estimated to have generated $300,000 in drug proceeds, which Goodrich and his co-defendants must forfeit to the government.

On April 27, 2012, Goodrich was also found guilty before U.S. District Judge Gary Fenner of maintaining a drug house at his residence from Dec. 14, 2006, to Sept. 23, 2009, for the use and distribution of crack cocaine. Goodrich awaits sentencing on this charge.

Law enforcement investigators became aware of sales of crack cocaine occurring on the 4600 block of Chestnut in Kansas City, Mo., and initiated an investigation that included surveillance and controlled drug buys. Numerous drug buys occurred each day, usually across the street from Goodrich's residence. At least 50 vehicles per day stopped to purchase crack cocaine from dealers. Dealers often returned to Goodrich's residence between sales. Customers sometimes entered Goodrich's residence to purchase crack cocaine and sometimes smoked their purchases inside the residence. Dealers used the residence to chop up and package their crack cocaine and get out of the weather.

Evidence introduced at trial indicated that dealers were required to pay Goodrich for the use of his residence. These payments were in the form of "dime rocks" of crack cocaine ($10 rocks) from dealers in the morning, as well as payments later in the day, depending on business. When Goodrich was arrested and incarcerated for several months in an unrelated case, he left instructions that his girlfriend would continue receiving those payments on his behalf.

Officers executed a federal search warrant at Goodrich's residence on Sept. 23, 2009. They found five different kinds of ammunition, drug paraphernalia, crack cocaine, marijuana and digital scales.

This case was prosecuted by Assistant U.S. Attorney David DeTar Newbert and Special Assistant U.S. Attorney Ryan C. Hershberger. It was investigated by the ATF and the NITRO Task Force

FELON SENTENCED TO 10 YEARS IN FEDERAL PRISON FOR POSSESSING FIREARMS

PHOENIX – On July 30, 2012, Darrell Lee Mayo, 28, of Phoenix, was sentenced by U.S. District Judge Susan R. Bolton to 120 months in federal prison. On March 7, 2012, a federal jury found Mayo guilty of five counts of being a felon in possession of a firearm.

This case stems from Operation 602 Exchange, which was an undercover operation conducted at a west valley secondhand shop. According to court documents and evidence presented at trial, Mayo sold seven firearms to undercover agents and officers on five separate occasions between November 2010 and January 2011. Mayo was prohibited from possessing firearms due to his prior felony convictions. Mayo's lengthy criminal record includes convictions for aggravated assault, misconduct involving weapons, money laundering and assisting a criminal street gang.

The investigation in this case was conducted by the ATF and the Phoenix Police Department. The prosecution was handled by Robert K. Lu and Mark J. Wenker, Assistant U.S. Attorneys, District of Arizona, Phoenix.

U.S. Marshals Conduct "Operation Safety Net III"

1300 Convicted Sex Offenders Verified for Compliance

Scranton, PA – Today, United States Marshal Martin J. Pane announced the successful conclusion of Operation Safety Net III – an initiative designed to verify the addresses of more than 1,300 convicted sex offenders residing in the Middle District of Pennsylvania. This operation is the direct result of The Adam Walsh Child Protection and Safety Act of 2006, signed into law July 27, 2006. The Act commemorated the July 27, 1981 abduction and murder of 6-year old Adam Walsh. It designated the United States Marshals Service (USMS) as the lead federal law enforcement agency charged with assisting jurisdictions in locating and apprehending sex offenders who fail to register, and pursuing convicted sex offenders who cross state lines to avoid their registration requirements. Beginning in February 2012, Deputy U. S. Marshals teamed with the Pennsylvania State Police Megan’s Law Section as well as state and local police officers to verify Megan’s Law addresses of 1,309 convicted sex offenders living in the 33 counties which comprise the Middle District of Pennsylvania. This number also included the verification of addresses for 88 offenders classified as Sexually Violent Predators. 13 individuals were found to be out of compliance with sex offender registration requirements, and were arrested for violations of Megan’s Law. Those arrested were: Scott Vosburgh – a 25-year old convicted sex offender classified as a Sexually Violent Predator living in Carbon County. The Lansford Police Department charged Vosburgh with this offense. He was arrested by a local police agency in Lehigh County on an unrelated incident on March 14th. Keith Pericoli – a 43-year old convicted sex offender living in Lackawanna County. The Scranton Police Department charged Pericoli with Megan’s Law violations. Deputy U.S. Marshals arrested him in Lackawanna County on February 27th. Richard Sherin – a 63-year old convicted sex offender living in Luzerne County. The Pennsylvania State Police charged Sherin with this offense. Deputy U.S. Marshals arrested him in Luzerne County on March 23rd. Tyrone Fair – a 56-year old convicted sex offender originally from Elmira, NY – charged with sex offender registration violations by the Elmira Police Department. Deputy U.S. Marshals found Fair living in Dauphin County and arrested him on May 14th. Chris Peters – a 52-year old convicted sex offender living in Cumberland County. On May 20th, Deputy U.S. Marshals located Peters. On the same date, the Mechanicsburg Police Department charged and arrested him on the violation. Ryan Break – a 23-year old convicted sex offender living in Luzerne County. The Pennsylvania State Police charged him with the violation. Deputy U.S. Marshals arrested him in Luzerne County on June 6th. Wade Shultz – a 33-year old convicted sex offender from Kingfisher County, OK - wanted for sex offender registration violations in Oklahoma. Deputy U.S. Marshals found Shultz living in York County and arrested him on June 6th. Jose Correa – a 31-year old convicted sex offender last known to reside in Cumberland County but with addresses in Dauphin, Lancaster, Lebanon, and Schuylkill counties. Two local police agencies in Lancaster County charged Correa with Megan’s Law violations. USMS task force members located Correa in Lancaster County and arrested him on June 21st. Ralph Tolley – a 41-year old convicted sex offender from Lackawanna County. The Pennsylvania State Police charged Tolley with the violation. Deputy U.S. Marshals arrested him in Lackawanna County on June 22nd. John Karns – a 34-year old convicted sex offender from Dauphin County. The Pennsylvania State Police charged Karns with the violation. Deputy U.S. Marshals arrested him in Dauphin County on June 25th. Donald Cordell – a 35-year old convicted sex offender from Franklin County. The Pennsylvania State Police charged Cordell with the violation. Deputy U.S. Marshals arrested him near Hagerstown, Maryland on July 9th. Byron Chisolm – a 37-year old convicted sex offender from Dauphin County. The Harrisburg Bureau of Police charged Chisolm with the violation. Deputy U.S. Marshals arrested him in Dauphin County on July 13th. Bryan Jurenec – a 25-year old convicted sex offender formerly of York County. Deputy U.S. Marshals located Jurenec living in Arizona. Marshals Service personnel in Phoenix, Arizona arrested him on July 16th. Four additional convicted sex offenders were found to be out of compliance with Megan’s Law requirements. They were arrested on unrelated criminal matters. Megan’s Law violations are pending with local law enforcement agencies. United States Marshal Pane stated, “The public should know that the Marshals Service is committed to enforcing the blanket of protection that Megan’s Law and The Adam Walsh Act provide to our citizens. Convicted sex offenders must know this mission is given the highest priority within our agency. Operation Safety Net III has ended, but our efforts to locate non-compliant sex offenders never does.” The following law enforcement agencies worked with the United States Marshals Service in support of Operation Safety Net III: Pennsylvania State Police Megan’s Law Section; Pennsylvania State Police Fugitive Apprehension Unit; Carlisle Police Department; Cumberland County Sheriff’s Department; Dauphin County Adult Probation Department; Franklin County Sheriff’s Department; Lackawanna County Sheriff’s Department; Latimore Township (Adams County) Police Department; Lycoming County Sheriff’s Department; Pennsylvania Board of Probation and Parole; Union County Sheriff’s Department; York City Police Department; and York County District Attorney’s Office - Detective Bureau The Middle District of Pennsylvania is comprised of the following 33 counties: Adams Bradford Cameron Carbon Centre Clinton Columbia Cumberland Dauphin Franklin Fulton Huntingdon Juniata Lackawanna Lebanon Luzerne Lycoming Mifflin Monroe Montour Northumberland Perry Pike Potter Schuylkill Snyder Sullivan Susquehanna Tioga Union Wayne Wyoming York Additional information about the U.S. Marshals Service can be found at http://www.usmarshals.gov.