Press Release

Sweet Springs, Missouri Man Indicted for Engaging in Business of Manufacturing Explosives, Unlawfully Possessing Unregistered Destructive Devices and Distributing Information Relating to Manufacturing Explosives

Friday, May 29, 2026

KANSAS CITY, Mo. – A Sweet Springs, Mo., man has been charged by a federal grand jury with one count of engaging in the business of manufacturing explosive materials without a license, one count of unlawful possession of unregistered destructive devices, one count of unlawful possession of components that can readily be converted into destructive devices, and one count of distributing information relating to manufacturing explosives, in violation of U.S. law.

According to an affidavit filed in support of the original criminal complaint, no later than Sept. 18, 2023, Jordan Derrick, 40, began using several social media sites to distribute videos of himself making various explosive materials. In his videos, Derrick provided step-by-step instructions on how to make these explosives.

Derrick’s videos were downloaded from his publicly available video sharing accounts and used by Shamsud-Din Jabbar, the terrorist who conducted an attack in New Orleans on Jan. 1, 2025. Jabbar had created IEDs consistent with Derrick’s instructional videos. The devices placed by Jabbar did not detonate and were subsequently rendered safe by law enforcement.  Also, according to the complaint, on May 4, 2026, an explosion occurred at a private residence in Odessa, Mo.  Investigators who searched the private residence after the explosion found two components suspected of being used in explosive devices. The occupant of the residence told investigators that he manufactured explosive devices after watching online tutorials on a social media account that is believed to be utilized by Derrick to distribute information relating to the manufacture of explosives. An investigation of the Odessa explosion is ongoing.

The allegations contained in the indictment are accusations, not evidence of guilt, and the defendant is presumed innocent until proven guilty in a court of law.  

If convicted of engaging in the business of manufacturing explosive materials without a license, Derrick would be subject to a sentence of up to 10 years in federal prison.  If convicted of unlawfully possessing an unregistered destructive device or components that can readily be converted into a destructive device, Derrick would be subject to a sentence of up to 10 years in federal prison on each count. And if convicted of distributing information relating to the manufacture of explosives, Derrick would be subject to a sentence of up to 20 years in federal prison.  In the federal judicial system, there is not the possibility of parole.  These maximum statutory sentences are prescribed by Congress, and they are provided here for informational purposes.  Any sentence would be determined by the court based on the advisory sentencing guidelines and other statutory factors. 

This case is being prosecuted by Assistant U.S. Attorney Trey Alford and Special Assistant U.S. Attorney Brandon Chlarson with valuable assistance provided by Trial Attorney Michael Dittoe of the National Security Division. It was investigated by the Federal Bureau of Investigation with the assistance of the Bureau of Alcohol, Tobacco, Firearms and Explosives. 

Department of Justice

U.S. Attorney’s Office

Middle District of Louisiana

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Thursday, October 20, 2016

Baton Rouge Businessman Sentenced To Prison For Bank Fraud Scheme

BATON ROUGE, LA - United States Attorney Walt Green announced today that United States District Chief Judge Brian A. Jackson sentenced JASON CHRISTOPHER DEVILLIER, age 45, for his convictions in connection with a scheme to defraud Whitney Bank.  This summer, DEVILLIER pled guilty to bank fraud and fraudulent receipt of bank funds.

Chief Judge Jackson sentenced DEVILLIER to a term of 33 months in the Bureau of Prisons, to be followed by a term of 3 years supervised release.  DEVILLIER was also sentenced to pay total restitution of $474,410.74 to Whitney Bank.  Additionally, DEVILLIER was ordered to forfeit assets of $474,410.74 and pay a $25,000 fine. 

These convictions arose from DEVILLIER’s ownership and operation of ABC123, L.L.C. (“ABC123”), a payment processing company for private and parochial primary and secondary schools located in Baton Rouge, Louisiana.  In order for ABC123 to perform its payment processing services for the schools, parents established accounts through ABC123’s website, which enabled parents to send money electronically to the schools for tuition, cafeteria fees, and other school-related fees.  ABC123 collected the funds paid by parents and transmitted them to financial institutions designated by each respective school.  As a result, DEVILLIER had access to the schools’ bank account information, including routing and account numbers.    

DEVILLIER accomplished his scheme to defraud Whitney Bank through his use of the Automated Clearing House (“ACH”) network.  DEVILLIER previously admitted that, from November of 2012 through July of 2013, he diverted funds from ABC123’s Whitney Bank account (“the ABC123 account”) into his personal account and other accounts, in amounts ranging from $30 to $50,000, through inappropriate ACH batch transactions.  For each fraudulent transaction, DEVILLIER posted numerous and substantial false and fraudulent credits to the ABC123 account, which he falsely represented as authorized withdrawals from accounts belonging to the schools.  In effect, these false and fraudulent ACH credits posted by DEVILLIER made it appear as though the ABC123 account had sufficient funds for withdrawals from said account.  Before Whitney Bank was able to detect and reverse the false and fraudulent ACH credits, Devillier transferred funds through ACH debits from the ABC123 account to various personal and business accounts belonging to him and others.  As a result of DEVILLIER’s fraudulent conduct, Whitney Bank suffered substantial losses. 

U.S. Attorney Walt Green stated: “Mr. Devillier was sentenced to a significant sentence for his criminal conduct.  In lining his own pockets, Mr. Devillier violated the trust of not only Whitney Bank, but also the trust of the schools, students, and families his business was supposed to serve.  I also wish to convey my appreciation to the FBI and the prosecutor for their excellent work, as well as to Whitney Bank and the schools for their cooperation and support during the investigation and prosecution of this important matter.”   

SAC Jeffrey S. Sallet stated: “I would like to recognize the outstanding work done by the assigned FBI Special Agent and Assistant U.S. Attorney in unraveling this complex bank fraud scheme.  The New Orleans Division of the FBI remains committed to working with our law enforcement partners to identify, investigate and prosecute those who would attempt to fraudulently utilize the banking system for personal gain.”

The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation. The matter is being prosecuted by Assistant United States Attorney Cam T. Le.

Department of Justice

U.S. Attorney’s Office

Middle District of Louisiana

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Thursday, October 20, 2016

Former Office Manager Of Baton Rouge Surgery Group Sentenced For Wire Fraud

BATON ROUGE, LA - United States Attorney Walt Green announced today that LORRIE LYNN ROGERSON, age 57, of Baton Rouge, Louisiana, was sentenced by U.S. District Judge John W. deGravelles for defrauding $430,490 from the Pediatric Surgery of Louisiana (“PSL”), a group of Baton Rouge physicians who specialize in surgery on children.  Rogerson was ordered to serve 12 months in prison, 12 months of supervised release following prison, restitution to the victim of $430,490, a fine of $10,000, and asset forfeiture of $394,584.  Rogerson was also ordered to repay $13,505 to the victim to reimburse the costs of investigating her offense.

PSL employed Rogerson to act as their office manager.  Rogerson was responsible for PSL’s payroll, accounts receivable, accounts payable, and human resources.  In her role, Rogerson enjoyed access to the bank accounts of PSL for the purpose of making deposits to, and paying bills from, the PSL bank account.  Rogerson was entrusted with the authority and responsibility to manage PSL’s banking affairs.  Rogerson had access to all accounts and was familiar with PSL’s account information.

In April 2015, a review of PSL financial records discovered that Rogerson had accessed PSL’s bank account to make unauthorized withdrawals and transfers for her personal benefit.  Between May 2008 and May 2015, Rogerson caused unauthorized electronic withdrawals to be made from the PSL bank account for the purpose of paying Rogerson’s credit cards.  Rogerson also issued numerous, unauthorized PSL checks for her benefit, and mischaracterized said checks in the accounting software as business expenses. 

Rogerson embezzled funds on approximately 256 occasions during the period of May 2008 and May 2015.  In order to execute the scheme to defraud on January 5, 2015, Rogerson used internet services to divert funds from a PSL bank account for the purpose of paying her personal credit card bills.

U.S. Attorney Green stated: “Today’s sentencing is yet another example of the insider threat that businesses face.  Such offenders must be held to account and should be reported to law enforcement immediately.  Our office, together with the FBI and our other federal, state, and local partners, stand ready to aggressively pursue these important matters.” 

FBI Special Agent-in-Charge Jeffrey S. Sallet stated: “This case is yet another example of the FBI’s commitment to work with our partners at the United States Attorney’s Office to investigate and prosecute individuals who willingly violate the law in order to personally enrich themselves at the expense of others.”

This matter is being prosecuted by the United States Attorney’s Office for the Middle District of Louisiana.  The investigation has been conducted by the Baton Rouge Resident Office of the Federal Bureau of Investigation, with substantial assistance provided by the victim, PSL, and their accountants, Faulk and Winkler.  The matter is being prosecuted by Assistant United States Attorney René Salomon.

Department of Justice

U.S. Attorney’s Office

Northern District of Ohio

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Thursday, October 20, 2016

Five people sentenced to prison for defrauding investors out of $17 million

Five people were sentenced to prison for their roles in a conspiracy to defraud about 70 investors out of approximately $17 million, law enforcement officials said.

Kenneth Grant, of Copley, was sentenced to 92 months in prison.

Thomas Abdallah, of Brunswick, was sentenced to 82 months in prison.

Jerry Cicolani, formerly of Richfield, was sentenced to 57 months in prison.

Jeffrey Gainer, of Copley, was sentenced to 52 months in prison.

Mark George, of Independence, was sentenced to 21 months in prison.

Kelly Hood, formerly of Richfield, was sentenced to one year of home confinement followed by probation.

Collectively, the defendants were also ordered to repay more than $17 million in restitution.

All six previously pleaded guilty to charges related to the case.

“These defendants swindled people out of millions of dollars so they could live extravagant lifestyles,” U.S. Attorney Carole S. Rendon said. “This was flat-out fraud. The defendants knew fully that they were stealing from the investors.”

“These defendants callously preyed on the desires of many to make wise investments for a secure future and duped them out of their life savings,” said FBI Special Agent in Charge Stephen D. Anthony. “Fraudsters such as these remain a top priority of the FBI.”

“When you knowingly mix deceit and trickery into the financial well-being of individuals, you create a recipe for devastation that could last a lifetime,” said Special Agent in Charge of IRS Criminal Investigation.” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “Combining the financial investigative expertise of the IRS with the skills and resources of the FBI and the U.S. Attorney’s Office makes a formidable team for combating major, greed-driven crimes.”

Abdallah and Kenneth Grant owned and operated KGTA Petroleum, Ltd. They and others marketed KGTA as a company that earned profits from buying and selling crude oil and refined fuel products. They represented to investors that they had relationships with third-party purchasers and investor funds would be used to purchase fuel products at a discount and then resold at substantial profit, according to court documents.

KGTA issued investment agreements and promissory notes which offered guaranteed monthly payments up to five percent per month or annual payments of approximately 60 percent per year, according to the information. The defendants never filed documentation about KGTA with the Securities and Exchange Commission, according to court documents.

Together, they obtained approximately $31 million from about 70 investors between 2010 and 2014 through false and fraudulent pretenses. They knew KGTA did not have agreements in place to sell oil and fuel. Instead, the defendants used investor money for personal expenditures and luxury items including a Mercedes Benz, a boat and mortgage payments on high-end residential property, according to court documents.

The defendants defrauded the investors out of approximately $17 million as a result of the conspiracy.

This case was prosecuted by Assistant U.S. Attorneys Mark S. Bennett and M. Kendra Klump following an investigation by the Federal Bureau of Investigation and Internal Revenue Service—Criminal Investigations.

Department of Justice

U.S. Attorney’s Office

Eastern District of New York

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Thursday, October 20, 2016

American Sports Marketing Executive Pleads Guilty To Racketeering And Corruption Charges

Earlier today in federal court in Brooklyn, Aaron Davidson pleaded guilty to racketeering conspiracy and wire fraud conspiracy in connection with his involvement in schemes involving the payment of bribes to a high-ranking soccer official in exchange for media and marketing rights to international soccer tournaments and matches.  Davidson agreed to and paid these bribes on behalf of Traffic Sports USA, Inc. (Traffic USA), the Miami sports marketing company for which he served as president at the time of his arrest on May 27, 2015.  As part of his plea, Davidson also agreed to forfeit $507,906.84.  At sentencing, Davidson faces a maximum sentence of 20 years for each count.  Today’s plea proceeding took place before United States District Judge Pamela K. Chen.

The guilty plea was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director in Charge, FBI, New York Field Office; and Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation, Los Angeles Field Office.

According to court filings and facts presented during the plea proceeding, Davidson, a U.S. citizen, joined Traffic USA in 2003, initially working in sales and ultimately rising to the position of president of the company.  During his time at Traffic USA, Davidson was involved in multiple criminal schemes including, among others, schemes involving the agreement to pay and payment of bribes to a high-ranking official of FIFA, CONCACAF, the Caribbean Football Union, and one of FIFA’s national member associations in order to obtain lucrative media and marketing rights to international soccer tournaments and matches for Traffic USA and its business partners.  Those tournaments and matches included FIFA World Cup qualifiers, the CONCACAF Gold Cup, the CONCACAF Champions League, and the Copa América Centenario, a tournament jointly organized by CONCACAF and CONMEBOL, the South American soccer confederation.  In total, Davidson negotiated and agreed to bribe payments totaling more than $14 million.

The guilty plea announced today is part of an investigation into corruption in international soccer being led by the U.S. Attorney’s Office for the Eastern District of New York, the FBI New York Field Office, and the IRS-CI Los Angeles Field Office.  The prosecutors in Brooklyn are receiving considerable assistance from attorneys in various parts of the Justice Department’s Criminal Division in Washington, D.C., including the Office of International Affairs, the Organized Crime and Gang Section, the Asset Forfeiture and Money Laundering Section, and the Fraud Section, as well as from INTERPOL Washington. 

Assistant U.S. Attorneys Evan M. Norris, Amanda Hector, Paul Tuchmann, Nadia Shihata, Keith D. Edelman, and Brian D. Morris of the Eastern District of New York are in charge of today’s prosecution.

The government’s investigation is ongoing.

The Defendant:

AARON DAVIDSON
Age:  45
Nationality:  United States

E.D.N.Y. Docket No. 15 CR 252 (S-1)

Department of Justice

U.S. Attorney’s Office

District of New Mexico

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Thursday, October 20, 2016

Albuquerque Couple Sentenced on Wire Fraud Convictions Arising Out of Scheme to Defraud Office Supply Business

Defendants Also Ordered to Pay $96,000 in Restitution to Office Max/Office Depot and to Forfeit $105,191 to the United States

ALBUQUERQUE – Matthew Channon, 39, and his wife Brandi Channon, 37, both of Albuquerque, N.M., were sentenced today for their convictions on conspiracy and wire fraud charges arising out of a sophisticated scheme to defraud an office supply business out of more than $100,000.  Matthew Channon was sentenced to a year and a day of imprisonment to be followed by two years of supervised release.  Brandi Channon was sentenced to three years of probation, including six months of home confinement and 200 hours of community service. The Channons also were ordered jointly to forfeit $105,191 to the United States, and to pay $96,000 in restitution to Office Max/Office Depot, the business that was the victim of the Channons’ criminal conduct.

The Channons were charged with conspiracy and wire fraud charges in a seven-count indictment filed in March 2013.  In addition to the conspiracy charge, the indictment charged Matthew Channon with four counts of wire fraud and Brandi Channon with two counts of wire fraud.  According to the indictment, the Channons perpetuated a scheme to defraud OfficeMax by using interstate wire communications to create numerous MaxPerk Rewards accounts in fictitious names to avoid OfficeMax’s policy of issuing only one account per person.  The couple then used the accounts to fraudulently claim rewards from OfficeMax to which they were not entitled.  The indictment alleged that the scheme continued from Aug. 2009 through June 2011, during which time the Channons fraudulently obtained MaxPerk Rewards certificates valued at more than $105,000.00.

The Channons were convicted on all seven counts in the indictment on Jan. 22, 2016, after a seven-day jury trial.  The evidence at trial established that the Channons conspired to defraud OfficeMax by fraudulently creating more than 5000 MaxPerk Rewards accounts in the names of fictitious people.  The couple went online and used the fraudulent accounts to falsely claim rewards-program credit for purchases that other customers had in fact made.  The Channons falsely claimed that they engaged in more than 60,000 transactions with OfficeMax involving almost $2,000,000.00 worth of purchases, in over 300 stores located in over 20 states.  As a result of their fraudulent conduct, the Channons defrauded OfficeMax of more than $100,000 worth of property.   

The case was investigated by the Albuquerque Division of the FBI and was prosecuted by Assistant U.S. Attorneys Margaret M. Vierbuchen, Holland S. Kastrin and C. Paige Messec.

Department of Justice

U.S. Attorney’s Office

Western District of Missouri

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Thursday, October 20, 2016

Tennessee man Sentenced for Thayer Bank Robbery

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Memphis, Tenn., man was sentenced in federal court today for robbing a bank in Thayer, Mo.

Bobby Laughton Yates, 26, of Memphis, was sentenced by U.S. District Judge M. Douglas Harpool on Oct. 11, 2016, to five years in federal prison without parole. The court also ordered Yates to pay $2,325 in restitution.

On March 16, 2016, Yates pleaded guilty to bank robbery. Yates admitted that he stole $2,325 from Great Southern Bank, 323 E. Walnut St., Thayer, on April 22, 2015.

Yates entered the bank on April 22, 2015, and asked for a deposit slip. A teller directed Yates to a kiosk to the right of the teller’s station. Yates went to the kiosk and wrote out a note on a withdrawal slip. Yates presented the slip, and a plastic bag, to the teller. The slip stated, “put ALL the Money in the BAG Dont do anything dumb.”  Yates instructed the teller not to draw the attention of the bank manager. The teller noted Yates kept his hand in his left sweater pocket, where she observed a bulge that appeared to be a gun.

           

Yates told the teller to give him the money from all the drawers; however, the teller informed him she only had access to hers. The teller placed all the bills in her drawer, into the bag and handed it to Yates. As Yates was leaving, he ran into the door jam and dropped what appeared to be a handgun. Yates picked the item up, but part of a broken piece was left behind. The broken piece was later determined to be part of an Airsoft gun.

Yates was later arrested for robbing the Patriot Bank in Millington, Tenn., and has pleaded guilty to that bank robbery in a separate case.

This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Thayer, Mo., Police Department, the Missouri State Highway Patrol and the FBI.

Department of Justice

U.S. Attorney’s Office

Western District of Missouri

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Thursday, October 20, 2016

Springfield Man Sentenced for $1.1 Million Investment Fraud Scheme

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for a more than $1.1 million investment fraud scheme.

Christopher Hanson, 54, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to two years and nine months in federal prison without parole. The court also ordered Hanson to pay $1,134,500 in restitution to his victims.

On Sept. 14,2015, Hanson pleaded guilty to wire fraud and money laundering. Hanson, the owner of Hanson Holdings, LLC, admitted that he was responsible for losses that totaled $1,134,500 for three victims of his Ponzi scheme.

Hanson offered the three victims what he described as “an investment opportunity.” Hanson told two of the victims that he would take their investment monies and purchase a collateralized mortgage obligation (CMO). Hanson claimed that a line of credit would be obtained against the CMO and both victim investors would receive their original investment plus a substantial dividend within months. Hanson told the third victim that he would purchase bonds and securities with his $100,000 investment. Hanson claimed this investment would generate a 250 percent return and that the victim investor would receive double his original investment within 40 weeks.

Financial records revealed that none of the monies obtained by Hanson or Hanson Holdings from these three investors were used to purchase securities or a CMO as Hanson had promised. Agents determined that Hanson authorized the release of the investors’ monies from his Scottrade Account, ETrade Account, or StockCross Account, into his personal bank accounts. Hanson used the money for personal expenses, to pay off parties unrelated to the investment, or he would use the money to pay off earlier investors who were clamoring for a return of their money.

According to court documents, Hanson also engaged in an unrelated ongoing fraud in Apple Valley, Minn., for which he faces a civil suit. Hanson also faces state charges in Greene County Circuit Court for a similar, but unrelated, fraud scheme.

This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FBI and IRS-Criminal Investigation.

Department of Justice

U.S. Attorney’s Office

Northern District of Ohio

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Thursday, October 20, 2016

Warren man sentenced to a year in prison for mailing white powder to former employer

A Warren man was sentenced to one year and one day of incareceration for mailing an envelope containing white powder to his former workplace, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.

Anthony J. Natale, 38, previously pleaded guilty to with one count of conveying false information related to the use of a weapon of mass destruction.

Natale mailed an envelope containing white powder via the United States Postal Service to American Business Center, at 7677 South Avenue, Youngstown, on November 10, 2014.  This was done with the intent to convey false and misleading information related to the use of a weapon of mass destruction, according to court documents.

Natale formerly worked at American Business Center. He was terminated on Oct. 6, 2014, according to court documents.

He was ordered to pay $9,834.13 to the victim company, and $14,361.90 to the first responders. He will also serve three years of probation and pay a $100 special assessment.

The case is being prosecuted by Assistant U.S. Attorney Justin Seabury Gould, and was investigated by the Federal Bureau of Investigation and Mahoning County Sheriff's Office. 

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.

Department of Justice

Office of Public Affairs

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Wednesday, October 19, 2016

Former CEO Sentenced for Bribery and Fraud Scheme Involving Red Light Camera Contracts in Ohio

A former CEO of a traffic light enforcement camera vendor was sentenced today to 14 months in prison for her role in a multi-year bribery and fraud scheme, announced Assistant Attorney General Leslie R. Caldwell of the Department of Justice’s Criminal Division, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Office.

Karen L. Finley, 57, of Cave Creek, Arizona, was sentenced today before U.S. District Judge Michael H. Watson of the Southern District of Ohio.  She pleaded guilty on June 19, 2015, to one count of conspiracy to commit federal programs bribery and honest services wire and mail fraud.  Finley cooperated with the government’s investigation against John Raphael, an Ohio lobbyist, who pleaded guilty to one count of violating the Hobbs Act for his involvement in the scheme.  On June 8, 2016, Raphael was sentenced to serve 15 months in prison.   

From December 2005 to February 2013, Finley served as CEO of a red light camera enforcement company.  During this time, she participated in a scheme in which the company made campaign contributions to elected public officials in the cities of Columbus, Ohio, and Cincinnati through Raphael, a consultant retained by the company.  Finley and others, including another executive of the company, agreed to provide the conduit campaign contributions through Raphael with the understanding that the elected public officials would assist the company in obtaining or retaining municipal contracts, including a red light camera enforcement contract with the city of Columbus.  Finley also admitted that she and her co-conspirators concealed the true nature and source of the payments by Raphael and the company’s payment of false invoices for “consulting services,” which funds Raphael then provided to the campaigns of the elected public officials. 

The FBI’s Cincinnati Field Office, Columbus Resident Agency, investigated the case with the assistance of IRS-Criminal Investigation and the Ohio Bureau of Criminal Investigation.  Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section and Assistant U.S. Attorney J. Michael Marous of the Southern District of Ohio prosecuted the case.

Department of Justice

U.S. Attorney’s Office

District of Kansas

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Wednesday, October 19, 2016

Florida Man Sentenced For Wichita Bank Robbery

WICHITA, KAN. - A Florida man was sentenced Wednesday to 46 months in federal prison for robbing a Wichita bank, Acting U.S. Attorney Tom Beall said.

Antonio Adam Smiley, 30, Zephyrhills, Fla., pleaded guilty to one count of bank robbery. He admitted that on Nov. 18, 2015, he robbed the Emprise Bank branch at 2323 S. Hydraulic. He fled the bank with the money and left Wichita. He was identified from surveillance photos and arrested Nov. 23, 2015, in Zephyrhills, Fla.

Beall commended the Wichita Police Department, the FBI and Assistant U.S. Attorney Jason Hart for their work on the case.

Department of Justice

Office of Public Affairs

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Wednesday, October 19, 2016

New Orleans Business Owner and Doctor Sentenced to Prison for Roles in $34 Million Medicare Fraud Scheme

The owner of a New Orleans medical service company and a doctor who served as the company’s medical director were sentenced to prison today for their involvement in a $34 million Medicare fraud scheme.

Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth A. Polite of the Eastern District of Louisiana, Special Agent in Charge Jeffrey S. Sallet of the FBI’s New Orleans Field Office and Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Dallas Regional Office made the announcement.

Elaine Davis, 60, of New Orleans, and Pramela Ganji, M.D., 67, of Harahan, Louisiana, were sentenced to 96 months and 72 months in prison, respectively.  Chief U.S. District Judge Kurt D. Engelhardt of the Eastern District of Louisiana imposed the sentences and scheduled a hearing to determine restitution owed by both defendants for Dec. 7, 2016.  On March 17, 2016, a jury convicted Davis and Ganji each of one count of conspiracy to commit health care fraud and one count of health care fraud.

According to evidence introduced at trial, Davis directed a massive fraud scheme through Christian Home Health Inc. (Christian), a company that used elderly and disabled Medicare recipients in New Orleans and adjacent communities to fraudulently bill Medicare for purported home health care services.  Ganji served as Christian’s medical director from 2010 through 2015.  Evidence presented at trial showed that the vast majority of these patients did not require home health care services, and that Ganji falsely claimed that beneficiaries she had never examined were qualified to receive these services. 

The evidence at trial demonstrated that Davis and Ganji caused Christian to bill Medicare for more than $34.4 million in claims, a vast percentage of which were fraudulent.  Medicare paid more than $29.6 million on these claims.

The FBI and HHS-OIG investigated the case.  Trial Attorneys William Kanellis, Antonio Pozos and Drew Bradylyons of the Criminal Division’s Fraud Section prosecuted the case.

Department of Justice

U.S. Attorney’s Office

Western District of Missouri

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Wednesday, October 19, 2016

Taney County Business Owner Sentenced for Failure to Pay $500,000 in Payroll Taxes

SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Taney County, Mo., business owner has been sentenced in federal court for failing to pay over more than $500,000 in taxes he withheld from his employees’ paychecks.

Carl Justin Gage, 42, of Ridgedale, Mo., was sentenced by U.S. District Judge Brian C. Wimes on Tuesday, Oct. 18, 2016, to a year and a day in federal prison without parole. The court also ordered Gage to pay $627,000 in restitution.

On Jan. 15, 2016, Gage pleaded guilty to the willful failure to pay over taxes.

Gage owned and operated multiple businesses in Taney County, including Eagle Construction and Excavating, LLC, Gage Excavating, LLC, Gage Family Entertainment, LLC, and Hollister Pizza Company, LLC. Based on his theft of the employee taxes from those businesses (including the employer’s matching portions), Gage embezzled approximately $503,000 (which does not include statutory interest owed) from 2008 to 2011.

Gage admitted he was aware of these requirements and willfully did not pay over the tax even though he withheld the taxes from the employees’ paychecks. Gage hired a bookkeeper to manage the finances of his businesses, including the payroll and preparation of payroll tax returns. The bookkeeper notified Gage of the payroll tax due and owning, but Gage willfully made the decision each quarter to not pay over the taxes withheld from his employees’ paychecks to the Internal Revenue Service.

This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the FDIC Office of Inpsector General and IRS-Criminal Investigation.

Department of Justice

U.S. Attorney’s Office

Eastern District of California

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Wednesday, October 19, 2016

Government Reaches $2.24 Million Settlement with Institutional Pharmacy Omnicare in Lawsuit First Brought by Former Regional Service Area Director in Lodi

Settlement Resolves Allegations of Falsely Billing Federal and State Health Care Programs for Prescription Drugs

SACRAMENTO, Calif. — Omnicare Inc., a national long-term care pharmacy, will pay a combined $2.24 million to resolve federal and state False Claims Act allegations that it improperly billed federal and state health care programs for prescription drugs that were dispensed to patients in skilled nursing and other institutional care facilities.

Specifically, the settlement resolves allegations that Omnicare employees manually altered the National Drug Code (NDC) field on claims resubmitted to Medicare, Medicaid, and TRICARE, in order to overcome prior rejection of these claims for payment. The alleged conduct occurred between January 1, 2006, and September 1, 2014, prior to CVS Health Corporation’s purchase of Omnicare.

As part of the settlement, CVS Health Corporation and its subsidiaries also entered into a five-year Corporate Integrity Agreement (CIA) with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG) that covers their institutional pharmacy services operations. The CIA is designed to increase accountability and transparency and to avoid or promptly detect future fraud and abuse.

“We are committed to ensuring the integrity of the federal health care system, and this extends to paying only for drugs that accurately reflect an underlying prescription,” said Acting U.S. Attorney Talbert.

The allegations resolved by the settlement were first raised in a lawsuit filed against Omnicare under thequi tam, or whistleblower, provisions of the False Claims Act by a former Regional Servicer Area Director in Omnicare’s pharmacy in Lodi, California. The Act allows private citizens with knowledge of false claims to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $411,624 of the recovery proceeds.

This case was pursued by Assistant United States Attorney Edward Baker through a coordinated effort with the Department of Health and Human Services Office of Inspector General and Office of General Counsel, the Civil Division of the Department of Justice, the Federal Bureau of Investigation, and the Defense Health Agency. A team from the National Association of Medicaid Fraud Control Units assisted with the investigation and participated in settlement negotiations on behalf of the states, and included representatives from the Offices of the Attorneys General for the states of California, Massachusetts, New York, Ohio, and Texas.

The claims settled by this agreement are allegations only, and there has been no determination of liability.

Department of Justice

U.S. Attorney’s Office

District of Arizona

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FOR IMMEDIATE RELEASE

Wednesday, October 19, 2016

Phoenix Woman Sentenced to Over 12 Months for Failure to Pay Taxes and Wages

     PHOENIX – On Oct. 17, 2016, Ismary Diaz, 56, of Phoenix, Ariz., was sentenced by U.S. District Judge Douglas L. Rayes to 12 months and 1 day of imprisonment. Diaz had previously pleaded guilty to willful failure to collect or pay tax and failure to pay minimum wage.

     Diaz, from at least 2009 through March, 2013, failed to file accurate tax returns, in order to hide the fact that she was illegally employing undocumented aliens in her five Phoenix area restaurants. Diaz also failed to pay her employees the federal minimum wage required by law.  Diaz failed to pay over $288,000 in taxes and over $89,000 in wages.

     The investigation in this case was conducted by a collaborative team consisting of multiple agencies, including IRS-CI, DOL, HSI, FBI and the Phoenix Police Department. The prosecution was handled by Monica Edelstein and Robert Brooks, Assistant U.S. Attorneys, District of Arizona, Phoenix.

CASE NUMBER:           CR-16-455-PHX-DLR   

RELEASE NUMBER:    2016-091_Diaz

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Department of Justice

U.S. Attorney’s Office

District of Connecticut

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FOR IMMEDIATE RELEASE

Wednesday, October 19, 2016

Former New Canaan Resident Sentenced to 33 Months in Federal Prison for Defrauding Investors

Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN B. JEFFREY, also known as TUCKER JEFFREY, 49, formerly of New Canaan, Conn., and currently a resident of Denver, Colo., was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to 33 months of imprisonment, followed by three years of supervised release, for defrauding investors of more than $1.3 million.

According to court documents and statements made in court, JEFFREY offered individuals the opportunity to invest in Anchor Shipping and Trading, and Southern Cross Shipping, representing to victims that the companies were organized in the Marshall Islands, were engaged in the cargo shipping business, and had long-term contracts that would support a profitable international shipping business.  The shipping companies were entirely fictitious.  Instead of using invested funds as he had promised, JEFFREY used the vast majority of the money for his personal expenses, including paying for the mortgage on his New Canaan home, tuition at private schools, country club dues, and home renovation and landscaping costs.

 As part of the scheme, JEFFREY created bogus documents that represented that certain well-known executives in the international shipping business were involved with the companies when, in fact, those executives had no such involvement.  He also e-mailed and telephoned his victims falsely representing that the companies were profitable, that the victims would soon be receiving distributions from their investments, and to reassure victims when payments were delayed.

Judge Bolden ordered JEFFREY to pay $919,500 in restitution to the victims of this scheme.  JEFFREY paid back certain victims after he found out about the FBI investigation, but required those victims to sign “settlement” agreements purporting to settle claims related to the fictitious companies.

On March 24, 2016, JEFFREY pleaded guilty to one count of wire fraud.

This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney Susan L. Wines.

Department of Justice

U.S. Attorney’s Office

Northern District of California

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FOR IMMEDIATE RELEASE

Wednesday, October 19, 2016

Remon Daniel Sentenced To 41 Months For Defrauding Produce Vendors Of Millions Of Dollars Worth Of Fruits And Vegetables

SAN JOSE – Remon Issa Daniel was sentenced in federal court this morning to 41 months’ imprisonment for his scheme to defraud produce vendors, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.  Over a two-year period, Daniel obtained more than $2 million of produce from almost 40 vendors by pretending to be employed by reputable produce companies and ordering loads of fruits and vegetables on credit, when he knew he did not have the funds to pay for the goods and had no intention of paying for them.

On July 7, 2016, Daniel, 35, of Redwood City, pleaded guilty to wire fraud and admitted that between 2014 and his arrest on February 25, 2016, he defrauded at least 38 different businesses in an effort to obtain approximately $2 million worth of fruits and vegetables. Daniel ordered produce primarily from companies in California, Arizona, and Texas, and usually claimed to be from Bay Produce, New San Jose Wholesale, or General Produce, each a genuine produce wholesaler in Northern California.  In fact, Daniel had no association with any of these companies. Daniel admitted to sending some of the vendors a copy of a deposit slip as proof that he had made a payment for the product.  Only after the vendor released the produce to Daniel, did the vendor learn that the deposited check was returned for insufficient funds.  Daniel was indicted by a grand jury on March 10, 2016, and was charged with 14 counts of wire fraud, in violation of 18 U.S.C. § 1343.  Pursuant to his plea agreement, Daniel pleaded guilty to three of the counts in the indictment and the remaining counts were dismissed.

The sentence was handed down by the Honorable Lucy H. Koh, U.S. District Judge.  In addition to the prison term, Judge Koh ordered Daniel to pay $1,696,445.70 in restitution to his victims and to serve three years of supervised release.  Daniel is currently in custody and will begin serving his sentence immediately.

Assistant U.S. Attorney Amber Rosen prosecuted the case with the assistance of Susan Kreider, Yolanda Singletary, and Nina Williams. The prosecution is the result of an investigation by the Federal Bureau of Investigation.

Department of Justice

U.S. Attorney’s Office

Northern District of Florida

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FOR IMMEDIATE RELEASE

Tuesday, October 18, 2016

Construction Company Partner Pleads Guilty to Evading Taxes on More Than $1 Million

PANAMA CITY, FLORIDA –Patrick Shawn Kelley, 54, of Panama City Beach, has pled guilty to two counts of tax evasion.  The plea was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.

Between 2009 and 2011, Kelley was a partner in American Construction Logistics and Services (ACLS), a construction company that performed work for the U.S. Government in Afghanistan.  During his guilty plea on October 14, Kelley admitted that he failed to file tax returns for the 2009, 2010, and 2011 tax years on income consisting of $1,167,025.32 in wages, ACLS funds used for personal expenditures, and cash wired to Kelley’s wife from ACLS employees.  In total, Kelley never paid the IRS $210,397 in taxes due and owing for the unreported income.

During the years 2010 and 2011, in an effort to conceal his income from the IRS, and without the knowledge or consent of his business partners, Kelley made significant personal expenditures directly from the ACLS bank account.  The expenditures included $320,550 for the purchase of his personal residence in Panama City Beach; $156,000 for an ownership interest in a motorcycle shop; $44,000 for the purchase of a boat; $10,393 for the purchase of a Jeep Wrangler; and a $9,500 loan to a friend.  Kelley also diverted funds totaling $353,520.37 from the ACLS corporate bank account to his personal bank accounts, and directed Afghan employees to wire cash to his wife.

For each count of tax evasion, Kelley faces a maximum of five years in prison, a total fine of $250,000, and an order of restitution.  Sentencing is scheduled for January 13, 2017, at 2:00 p.m., at the United States Courthouse in Panama City.

This case resulted from an investigation by the Internal Revenue Service – Criminal Investigation, the Federal Bureau of Investigation, and the Special Inspector General for Afghanistan Reconstruction.  Assistant United States Attorney Stephen M. Kunz is prosecuting the case.

The United States Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General.  To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website.  For more information about the United States Attorney’s Office, Northern District of Florida, visithttp://www.justice.gov/usao/fln/index.html.

For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, amy.alexander@usdoj.gov

Department of Justice

U.S. Attorney’s Office

Northern District of Illinois

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FOR IMMEDIATE RELEASE

Tuesday, October 18, 2016

Owner of Education-Services Companies Pleads Guilty to Offering Bribes and Kickbacks to Chicago Public Schools Chief in Exchange for Contract

CHICAGO — The owner of two education-services companies admitted in federal court today that he offered bribes and kickbacks to former Chicago Public Schools chief BARBARA BYRD-BENNETT in exchange for obtaining a $2.09 million contract to train principals.

GARY SOLOMON admitted in a written plea agreement that he offered bribes and kickbacks to then-CPS chief Byrd-Bennett in exchange for her efforts to steer the sole-source contract to Solomon’s companies, THE SUPES ACADEMY LLC and SYNESI ASSOCIATES LLC.  Byrd-Bennett had previously worked for the companies, and her fraudulent arrangement with Solomon called for her to return there as a consultant upon leaving CPS, according to the plea agreement.  Solomon maintained a line item within the companies’ internal financial statements to set aside the kickback money, which would be paid to Byrd-Bennett in the form of a one-time signing bonus on her first day back, the plea agreement states.  Solomon told Byrd-Bennett in an email, “If you only join for the day, you will be the highest paid person on the planet for that day. Regardless, it will be paid out on day one.”

In addition to arranging the kickbacks, Solomon also provided Byrd-Bennett with numerous other benefits, including meals and tickets to sporting events.

Solomon, 48, of Wilmette, pleaded guilty to one count of honest services wire fraud.  The conviction carries a maximum sentence of 20 years in prison.

The Wilmette-based SUPES and Evanston-based Synesi also pleaded guilty today as corporate defendants to one count of honest services wire fraud.  Each company faces a maximum fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greater.  The government anticipates that the advisory guideline fine will be in the range of $3.2 million to $6.4 million.

In addition to potential prison terms and fines, the individual and corporate defendants also will be ordered to join in a restitution payment to CPS.  The defendants and the government agree that the total amount of restitution is $254,000, minus any credit for funds repaid prior to sentencing.

A sentencing hearing for Solomon, SUPES and Synesi has been scheduled for March 24, 2017, before U.S. District Judge Edmond E. Chang.

The guilty pleas were announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Acting Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and Nicholas J. Schuler, Inspector General for the Chicago Public Schools.

All five defendants charged in the case have now been convicted.  Byrd-Bennett, 67, of Solon, Ohio, pleaded guilty last year to one count of honest services wire fraud, which carries a maximum sentence of 20 years in prison.  THOMAS VRANAS, a co-owner of SUPES and Synesi, pleaded guilty earlier this year to one count of conspiracy to commit federal program bribery.  Vranas, 35, of Glenview, faces up to five years in prison.  A sentencing hearing for Byrd-Bennett and Vranas has not yet been scheduled.

The government is represented by Assistant United States Attorneys Megan Cunniff Church and Lindsay Jenkins.