Phoenix Police Officer Arrested and Charged for Receiving and Possessing Child Pornography

Source: US FBI

PHOENIX, Ariz. – Alaa Robert Bartley, 41, of Gilbert, was arrested on Friday for receiving and possessing child sex abuse images. He was charged by federal criminal complaint on Friday with one count of Knowingly Receiving Child Pornography and one count of Knowingly Possessing Child Pornography. Bartley is an officer with the Phoenix Police Department.

The complaint alleges that, between August 2020 and February 2022, while living in Gilbert, Bartley used a social media platform to communicate with an adult woman, with the two expressing their sexual interest in children and the woman sending Bartley child pornography images. The affidavit alleges that Bartley used a fictitious name, but identified himself as a police officer and sent a picture of himself that showed his face to her. The adult woman has been charged separately in the Eastern District of Michigan in CR-23-20653.

A count of Knowingly Receiving Child Pornography carries a minimum mandatory sentence of five years and a maximum sentence of 20 years in prison, a fine of up to $250,000, and up to a lifetime of supervised release. A count of Knowingly Possessing Child Pornography carries a maximum sentence of 10 years in prison; if the offense involved a visual depiction of a prepubescent minor or minor who had not attained the age of 12, the offense carries a maximum sentence of 20 years in prison, a fine of up to $250,000, and up to a lifetime of supervised release.

A complaint is simply a method by which a person is charged with criminal activity and raises no inference of guilt. An individual is presumed innocent until evidence is presented to a jury that establishes guilt beyond a reasonable doubt.

The Federal Bureau of Investigation is conducting the investigation in this case. The United States Attorney’s Office, District of Arizona, Phoenix, is handling the prosecution.,
 

CASE NUMBER:            24-6161MJ
RELEASE NUMBER:    2024-047_Bartley

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

Arizona Doctor Pleads Guilty to Health Care Fraud

Source: US FBI

TUCSON, Ariz. – Linh Cao Nguyen, M.D., of Peoria, pleaded guilty on March 19, 2024, to Health Care Fraud. Nguyen’s sentencing is scheduled for May 28, 2024, before United States District Judge John C. Hinderaker.

Nguyen admitted that for years, he engaged in a scheme to defraud various health care benefit programs, including Medicare, TRICARE, AHCCCS, Blue Cross Blue Shield, and UnitedHealthcare. As part of his scheme, Nguyen knowingly caused to be submitted thousands of false billing claims. Nguyen also falsely created patient records to conceal and avoid detection of his fraudulent billing scheme. Generally, the fraudulent claims identified a medical doctor as the treating provider when, in fact, another provider such as a nurse practitioner, social worker, unlicensed psychology intern, or wound care nurse provided the service independently. By billing the medical service as if it were provided by a physician, Nguyen falsely inflated the amount his company was to be paid for the service.

Nguyen admitted the loss he caused was at least $3.7 million dollars. Nguyen agreed to pay restitution to the private insurance companies totaling over $1 million.

A conviction for Health Care Fraud carries a maximum penalty of 10 years in prison and a $250,000 fine.

The United States Department of Health and Human Services, Office of Inspector General, the Federal Bureau of Investigation, and the Department of Defense Office of Inspector General, Defense Criminal Investigative Service conducted the investigation in this case. The United States Attorney’s Office, District of Arizona, Tucson, is handling the prosecution.
 

CASE NUMBER:           CR-21-02716-TUC-JCH
RELEASE NUMBER:    2024-044_Nguyen

# # #

For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on X @USAO_AZ for the latest news.

Now Accepting Applications for the FBI’s Teen Academy

Source: US FBI

ARIZONA—Have you ever wanted to be part of a SWAT Team? Collect evidence or fingerprint a suspect? If so, then consider participating in the FBI Teen Academy.

The FBI Phoenix division invites all interested Arizona high school upcoming juniors and seniors (class of 2025/2026) to apply to the FBI Phoenix Teen Academy. Class will be held on June 12, for Phoenix students and June 14, for Tucson students from 8:30 a.m.- 4:00 p.m.

The FBI Teen Academy program provides an opportunity for students to learn about the different careers within the FBI, and actively engage with FBI agents to learn about crime prevention, evidence gathering, and investigative techniques.

Graduates of the Teen Academy program develop a keen understanding of how the FBI interacts and works with local law enforcement agencies to protect our communities.

Participation is free and volunteer organizations provide supplies for the events. Applicants must be rising juniors or seniors in high school in the state of Arizona.

This is a competitive program, and not all applicants will be selected. Student selection for the Teen Academy will be based on a quality application and written assignment. The application, release form, and supporting assignment must be received by the FBI Phoenix office by May 10, 2024. Incomplete and/or late applications will not be accepted.

To apply and for more information on the FBI Teen Academy, visit: https://www.fbi.gov/contact-us/field-offices/phoenix/community-outreach.

Former Alaska Advanced Nurse Practitioner Sentenced to 30 Years for Illegally Prescribing Millions of Opioids Causing Five Deaths

Source: US FBI

ANCHORAGE, ALASKA—Former Advanced Nurse Practitioner Jessica Joyce Spayd (52) was sentenced in U.S. District Court yesterday to 30 years (360 months) imprisonment for illegally prescribing and dispensing opioids outside the scope of legitimate medical practice that resulted in the deaths of five people between 2014 and 2019. United States District Judge Joshua M. Kindred handed down the sentence.

A jury convicted Spayd on October 27, 2022, of 10 crimes including five counts of illegal drug distribution that resulted in death and one count of maintaining a drug involved premises. She was also ordered to forfeit $117,000 in unlawful proceeds.

The parties presented 51 witnesses during the four-week trial. Government witnesses included pharmacists who refused to fill prescriptions from Spayd, law enforcement agents and officers who investigated the deaths, Spayd’s employees, individuals who received pills from Spayd, medical experts, every Medical Examiner in Alaska (each of whom performed autopsies on different overdose victims), and family members of the victims.

Evidence presented during the trial showed that Spayd prescribed and dispensed 4.5 million dosages of opioids in just over five years including fentanyl, methadone, oxycodone, and hydromorphone. Many times she combined those prescriptions with prescriptions for dangerous other drugs like valium and muscle relaxers, known as the “holy trinity,” greatly increasing the chances of overdose death. She wrote these prescriptions with little to no medical justification or treatment plan; minimal, if any, tests or physical examinations; and little, if any, considerations of non-opioid treatment. Many of her patients were vulnerable and suffering from chronic pain, addiction, and mental illness, yet Spayd disregarded their medical histories, risk factors, past overdoses, symptoms, and pleas to reduce or taper their doses. She also ignored warnings from patients’ family members, pharmacists, and other medical providers, and defied thousands of warning letters sent by insurance companies about the dangers of her practices.

In imposing the sentence, Judge Kindred emphasized the trust that society places in medical practitioners like Spayd and remarked that “when [practitioners] fail in their responsibilities, [they] can do far greater harm than the drug dealer on the street corner.” He also acknowledged that Spayd “knew she was in effect killing people, and she just kept doing it,” for nearly two decades.

“This is the deadliest drug case in this district’s history. And disturbingly, the five deaths the Defendant was convicted of at trial are just the tip of the iceberg” because “Spayd may have caused or contributed to the deaths of dozens: 20 total confirmed drug overdoses and many others suspected. She was a serial killer with a ‘poison pen,’” Assistant U.S. Attorney Ryan D. Tansey wrote in a sentencing memorandum filed with the court. “[H]er conduct was far more insidious” than that of a street level dealer “because she sanctioned (and supplied) lethal levels of drugs for her patients, day after day, year after year, under the shroud of a prescribing license, assuring them that it was safe and necessary. In the process, she abused her authority and violated her oath as a medical professional, prescribing higher doses per patient than any other prescriber in Alaska during the charging period.”

“Medical practitioners who abuse their positions of trust by supplying millions of opioids for no legitimate medical purpose wreak havoc on our community,” said U.S. Attorney S. Lane Tucker. “Let this sentence send a clear message to any other medical practitioners considering similar conduct in Alaska: our office and law enforcement partners will work tirelessly to investigate and prosecute these cases, and you will be punished severely.”

“Ms. Spayd betrayed the trust of her profession, those under her care, and her community by prescribing a staggering amount of opioids along with other powerful narcotics,” said Jacob D. Galvan, Acting Special Agent in Charge, DEA Seattle Field Division. “This lengthy sentence emphasizes the seriousness of Ms. Spayd’s actions and should be seen as deterrent to those who aim to bring harm to our communities.”

“Spayd callously abused her dispensing authority, while fueling the opioid epidemic and poisoning our communities in the process,” said Special Agent in Charge Antony Jung of the FBI Anchorage Field Office. “This investigation and subsequent prosecution was about seeking justice for the victims and their families, and holding Spayd accountable for her destructive and lethal crimes. With Spayd’s abuse linked to a significant loss of life, this sentence will undoubtedly have a direct public safety impact on our community.”

Assistant U.S. Attorneys Ryan Tansey and Michael Heyman prosecuted the case. 

The Drug Enforcement Administration (DEA) and the Federal Bureau of Investigation (FBI) conducted the investigation leading to the charges in this case, with invaluable assistance from members of the North Slope Borough Police Department, the Alaska Health Care Fraud Task Force, the U.S. Department of Health and Human Services-Office of the Inspector General, Internal Revenue Service (IRS), U.S. Bureau of Land Management (BLM), Office of Law Enforcement and Security, Department of Natural Resources (DNR), Alaska State Parks Rangers, Alaska State Troopers, Anchorage Police Department, Alaska Medicaid Fraud Control Unit, and the State of Alaska Division of Insurance.

The Alaska Health Care Fraud Task Force (AHCFTF) is a partnership of local, state, federal, and private agencies focused on the investigation of health care fraud, waste, and abuse in Alaska or affecting Alaskan interests. 

Juneau Man Pleads Guilty to Bank and Credit Union Theft

Source: US FBI

Juneau Man Was an Armored Transport Guard Who Stole $579,400.00 Entrusted to Him by Three Banks and Two Federal Credit Unions

JUNEAU – A Juneau man pleaded guilty to charges of Theft, Embezzlement, and Misapplication of Funds by a Person Connected in a Capacity with a Bank and Credit Union.

According to court documents, Austin Nolan Dwight Rutherford, 29, of Juneau plead guilty to Bank and Credit Union Theft.  Between January 21, 2019, and March 2022, Rutherford was an armed transport guard for Axiom Armored Transport (Axiom), which provided armed transportation of U.S. Currency for U.S. Bank, Wells Fargo Bank, Key Bank, NuVision Credit Union, and Alaska USA Federal Credit Union and their customers Automatic Teller Machines (ATM). Rutherford started to steal funds when he was transferred to Axiom’s Juneau branch in March 2020 through May 2022.  Rutherford was terminated March of 2022 but continued to make cash deposits into his bank accounts through May 2022 that were above and beyond any legitimate sources identified during the investigation. An internal audit determined that Rutherford stole a total of $579,400.00 in bank and credit union funds.

Rutherford is scheduled to be sentenced on August 17, 2023 and faces a maximum penalty of 30 years in prison, a fine of $1,000,000.00, and up to life on supervised release. Rutherford has agreed to pay restitution in the amount of $579,400.00 as part of his guilty plea. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

U.S. Attorney S. Lane Tucker of the District of Alaska made the announcement.

The Federal Bureau of Investigation is investigating the case.

Assistant U.S. Attorney Jack Schmidt is prosecuting the case.

###

Administrator of Scam Telegram Channel Charged with Fraud

Source: US FBI

BIRMINGHAM, Ala. – A federal grand jury indicted a Birmingham-area man for his role operating a scam Telegram channel dedicated to the sale of stolen and fraudulent checks, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Postal Inspection Service Inspector-in-Charge Scott D. Fix, Houston Division. 

An eleven-count indictment filed in U.S. District Court charges Mekhi Diwone Harris, 24, of Birmingham, Alabama with conspiracy, wire fraud, and bank fraud. Harris was arrested on August 9, 2023, pursuant to a complaint issued by the U.S. District Court for the Northern District of Alabama.    

The indictment alleges that between October 2022 and August 2023, Harris participated in a scheme to sell stolen or otherwise fraudulent checks on a Telegram channel called “Work Related Slips.” According to court documents, thousands of stolen or fraudulent checks have been posted to the “Work Related Slips” channel since October of last year. The victims include individuals, municipalities, utilities, churches, nursing homes, schools, non-profit groups, and businesses across the country — including hundreds in the Northern District of Alabama. The total value of the checks posted to the “Work Related Slips” channel is more than $15 million.

The maximum penalty for conspiracy to commit bank fraud or conspiracy to commit wire fraud affecting a financial institution is 30 years in prison.  The maximum penalty for wire fraud is 20 years in prison. The maximum penalty for bank fraud is 30 years in prison.  

The FBI investigated the case, which is being prosecuted by Assistant U.S. Attorney Edward J. Canter. The U.S. Attorney’s Office for the Southern District of Alabama, the U.S. Postal Service Office of Inspector General, and the U.S. Postal Inspection service all provided significant assistance during the course of the investigation.

An indictment contains only charges.  A defendant is presumed innocent unless and until proven guilty.

Two Cousins Found Guilty of 11 Felony Charges, Including Assault with a Dangerous Weapon, Related to Capitol Breach

Source: US FBI

            WASHINGTON – Two cousins were found guilty in the District of Columbia of felony and misdemeanor charges for their actions during the Jan. 6, 2021, Capitol breach. Their actions and the actions of others disrupted a joint session of the U.S. Congress convened to ascertain and count the electoral votes related to the presidential election.

            Thomas Harlen Smith, 44, of Mathiston, Mississippi, was found guilty of 11 charges, including nine felony counts and two misdemeanors, following a jury trial before U.S. District Judge Reggie B. Walton, who scheduled sentencing for August 17, 2023. Smith was convicted of assaulting officers with a dangerous weapon; obstruction of an official proceeding; two counts of civil disorder; two counts of assaulting, impeding, or resisting officers; entering and remaining in a restricted building or grounds with a deadly or dangerous weapon; disorderly and disruptive conduct in a restricted building or grounds with a deadly or dangerous weapon; and engaging in physical violence in a restricted building or grounds with a dangerous weapon. He was also convicted of two misdemeanors: disorderly conduct in the Capitol grounds or buildings and an act of physical violence in the Capitol grounds or buildings.

            Donnie Duane Wren, 44, of Athens, Alabama, was found guilty of three charges, including two felony counts and one misdemeanor. His sentencing is also set for August 17, 2023, before U.S. District Judge Reggie B. Walton. Wren was convicted of assaulting, impeding, or resisting officers; civil disorder; and entering and remaining in a restricted building or grounds.

            According to evidence presented in court, Smith and Wren traveled from Mississippi and Alabama to D.C. to attend former President Trump’s rally. After reaching the Capitol grounds, Smith entered the Tunnel, attempted to break a window with his flagpole, and pushed into the Capitol. Later, on the Upper West Terrace, Smith and Wren pushed against a police line –holding them back for twenty seconds. Smith then kicked an officer to the ground and threw a metal pole — hitting an officer in the head. After the he left Capitol grounds, Smith messaged on Facebook, “we stormed the capitol.”

            Smith’s most serious assault charge and the obstruction charge each carry a statutory maximum sentence of up to 20 years in prison. Wren’s assault charge carries a statutory maximum sentence of up to 8 years in prison. A federal court judge will determine the appropriate sentence after considering all factors and the U.S. Sentencing guidelines.

            The case is being prosecuted by the U.S. Attorney’s Office for the District of Columbia and the National Security Division’s Counterterrorism Section. Valuable assistance was provided by the U.S. Attorney’s Offices for the Northern District of Mississippi, the Northern District of Alabama, and the Southern District of Florida.

            The case is being investigated by the FBI’s Washington and Birmingham Field Offices and the Homestead Florida and Oxford Mississippi Resident Agencies which listed Wren as #219 on their seeking information photos. Valuable assistance was provided by the U.S. Capitol Police, the Metropolitan Police Department, and the Prince George’s County Police Department.

            In the 28 months since Jan. 6, 2021, more than 1,000 individuals have been arrested in nearly all 50 states for crimes related to the breach of the U.S. Capitol, including more than 320 individuals charged with assaulting or impeding law enforcement. The investigation remains ongoing. 

            Anyone with tips can call 1-800-CALL-FBI (800-225-5324) or visit tips.fbi.gov.

Leader of a Major Drug Trafficking Organization Operating in Jefferson County Indicted on Drug and Gun Charges

Source: US FBI

Birmingham, Ala. – A federal indictment unsealed on Monday charges the leader of a major drug trafficking organization and one of his lieutenants on drug and gun charges, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples.

A ten-count indictment filed in the U.S. District Court charges Lumon Andre Layton, aka “Loom”, 49 , of Birmingham, and Cedric Lamar Nelson, aka asCed”, 36 , of Midfield,  with conspiracy to possess with intent to distribute and distribution of heroin, fentanyl, methamphetamine, and cocaine, and distribution of fentanyl between March 2022 and January 2023.

Layton is also charged with five counts of possession with intent to distribute and distribution of heroin, fentanyl, methamphetamine, and cocaine, two counts of using and carrying a firearm during and in relation to drug trafficking crimes, and two counts of being a felon in possession of a firearm. Layton was convicted of Manslaughter on May 2, 2000, in the Circuit Court of Talladega County, Alabama, as well as several drug crimes in Jefferson County, Alabama, prior to 2000. 

According to the indictment, on January 6, 2023, Jefferson County Sherriff deputies executed four search warrants on properties involved in the conspiracy. The deputies seized $1,088,000 from these properties, in addition to five firearms seized during the investigation.

The penalty for conspiracy to distribute methamphetamine and possession with intent to distribute or distribution of a controlled substance is a minimum mandatory penalty of ten years to life in prison. The maximum penalty for possession with intent to distribute or distribution of heroin, fentanyl, methamphetamine, and cocaine is life in prison. The penalty for using and carrying a firearm during and in relation to a drug trafficking crime is a minimum mandatory term of five years in prison up to life to run consecutive to any other count. The maximum penalty for being a felon in possession of a firearm is 15 years in prison.

The FBI and Jefferson County Sheriff’s Office investigated the case.   Assistant U.S. Attorney Jonathan Cross is prosecuting the case.

An indictment contains only charges.  A defendant is presumed innocent unless and until proven guilty

Former Interiorscapes Bookkeeper Pleads Guilty to Embezzlement Scheme

Source: US FBI

BIRMINGHAM, Ala. – The former bookkeeper for Interiorscapes, a small Birmingham-based business that offers plant services to a range of companies, has pleaded guilty to running a multi-year embezzlement scheme, announced U.S. Attorney Prim F. Escalona and Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples. 

Tammi Spangenberg Turner, 60, of Morris, pleaded guilty yesterday before U.S. District Court Judge Karon O. Bowdre to wire fraud.

According to the plea agreement, Turner served as the bookkeeper at Interiorscapes from about 2015 until late 2021. Her duties included overseeing accounts payable and receivable, payroll, and entries in the company’s QuickBooks accounting software. During her tenure, Turner used a company credit card to pay tens of thousands of dollars of personal expenses. Turner hid her conduct by creating false entries in QuickBooks, writing personal checks to the company purportedly as reimbursement for the charges, keeping copies of those checks in the company records, but never depositing the checks in the company’s operating accounts. These unauthorized and unreimbursed charges totaled more than $94,000.

The maximum penalty for wire fraud is twenty years in prison, a fine of up to $250,000, and supervised release of up to three years.

The FBI investigated the case. Assistant U.S. Attorney J.B. Ward is prosecuting the case. 

Etowah Pain Clinic Owner Pleads Guilty in Multi-Million-Dollar Kickback and Health Care Fraud Case

Source: US FBI

BIRMINGHAM, Ala. – Another individual has been convicted in the latest in a series of cases involving multi-million-dollar health care fraud and kickback conspiracies, announced U.S. Attorney Prim F. Escalona, Federal Bureau of Investigation Special Agent in Charge Carlton L. Peeples, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Tamala E. Miles. 

David Lyle Shehi, 42, of Rainbow City, pleaded guilty yesterday before Chief U.S. District Judge L. Scott Coogler to conspiracy to pay kickbacks and commit health care fraud.

According to the information and plea agreement, Shehi owned a pain management clinic in Rainbow City called Etowah Pain. Between 2016 and 2018, Shehi conspired with others to commit health care fraud, and to receive kickbacks in exchange for his medical practice’s ordering items or services that would be billed to Medicare and other health insurance programs. One of those services was electro-diagnostic testing provided by a Huntsville-based company called QBR, or Diagnostic Referral Community. According to the plea agreement, QBR paid Shehi, through the medical practice, a per-patient fee for tests ordered from QBR and reimbursed by insurance. The payments were disguised as hourly payments for the ordering physician’s time and staff’s time, but in reality, Shehi’s practice was paid on a per-patient basis.

Also, this week, a defendant in a related case was sentenced. Today, Judge Coogler sentenced Dr. Eric Beck, 64, of Huntsville, to 15 months in prison. Beck pleaded guilty last year to health care fraud conspiracy for his role in the QBR scheme.

In February, John Alan Robson, 40, of Trussville, was indicted in a related case for health care fraud conspiracy, kickback conspiracy, and kickbacks.

The cases against Shehi, Beck, and Robson are related to several other cases that have resulted in convictions. John Hornbuckle, 53, of Huntsville, pleaded guilty to health care fraud and kickback conspiracy offenses for his role, as QBR’s CEO, in orchestrating the fraud. James Ewing Ray, 52, of Gadsden, pleaded guilty to health care fraud and kickback conspiracy for his role as a sales rep who marketed QBR’s scheme to Shehi and other medical practices and received kickbacks per test ordered.

In March 2022,  a jury convicted Dr. Mark Murphy, 66, and his wife Jennifer Murphy, 66, both of Lewisburg, Tennessee, of drug distribution, fraud, and kickback crimes. The Murphys operated North Alabama Pain Services, which closed its Decatur and Madison offices in early 2017. According to court documents and evidence presented at trial, the Murphys took kickbacks from QBR of more than a million dollars. In return, Dr. Murphy ordered electro-diagnostic tests from QBR for his patients, regardless of whether there was a medical need for those tests. Dr. Murphy also pre-signed prescriptions for expensive specialty topical creams, sprays, and patches, which patients then received whether they wanted the products or not. Before the Murphys went to trial, a co-defendant, Brian Bowman, 42, of Gadsden, pleaded guilty to health care fraud conspiracy. According to Bowman’s plea agreement, Bowman marketed QBR’s electro-diagnostic testing to medical providers, and was paid a fee for each test they ordered. Bowman received nearly a million dollars in fees from QBR. Bowman also marketed high-reimbursing specialty prescription drugs to the Murphys and other providers, and received payments for the prescriptions he generated.

Mark Murphy and Jennifer Murphy each were sentenced to twenty years in prison. Hornbuckle was sentenced to eighty months in prison. Ray and Bowman are awaiting sentencing. Other co-conspirators have already been sentenced.

The maximum penalty for conspiracy to commit health care fraud and receive kickbacks is five years in prison.

The FBI and HHS-OIG investigated the case. Assistant U.S. Attorneys J.B. Ward and Don Long are prosecuting the case.