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Friday, October 20, 2023
The Bronx Chamber of Commerce - Bronx Business News You Can Use
Twenty-One Charged with Firearms, Illegal Drugs, and Conspiracy Offenses Following Multi-Agency Violent Crime Reduction Effort in Memphis, Tennessee
Federal and local law-enforcement officials announced today that 21 individuals were charged in connection with firearms-trafficking, drug-distribution, conspiracy, and other offenses as part of a targeted violent crime reduction initiative in Memphis, Tennessee. The indictments are the result of a series of coordinated arrests made following a months-long multi-agency operation.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) and the Memphis Police Department (MPD) initiated this investigation after analyzing crime and gun recovery statistics. By examining more than 5,000 data points collected from the National Integrated Ballistic Information Network (NIBIN), MPD’s Real Time Crime Center, and 911 calls referencing shots fired, analysts were able to identify areas of Memphis with the highest density of firearm-related crime. Based on that analysis and other information, ATF opened an investigation into illegal activity at several locations around Memphis and Shelby County.
“The dozens of charges and arrests announced today represent what federal, state, and local law enforcement can accomplish when we work hand-in-hand to take violent criminals and trigger-pullers off our streets,” said Deputy Attorney General Lisa O. Monaco. “When we harness the Justice Department’s resources and technology — especially crime-gun intelligence from ATF’s NIBIN network — we are able to identify and arrest the culprits of gun violence and safeguard our communities. Across the country, our towns and cities are safer because of the dedication and bravery of federal agents and their state and local partners, and the 21st-century crime-solving tools DOJ is able to provide.”
“For months, ATF agents and our local, state, and federal law enforcement partners have been investigating violent criminals who have terrorized Memphis,” said Director Steve Dettelbach of the ATF. “The results are now clear: more than 20 arrests; nearly 100 seized firearms, including guns outfitted with machine gun conversion devices; and large quantities of narcotics – including fentanyl. All done better than ever using crime gun intelligence to catch the worst of the worst. ATF commits to continue using and sharing its intelligence with partners around the country to further drive down violent crime.”
“We have a serious gun violence problem in Memphis and strong law enforcement partnership is one of our most effective tools for addressing it,” said U.S. Attorney Kevin Ritz for the Western District of Tennessee. “This was an extensive, well-coordinated, and sustained effort to identify and take down some of our community’s most dangerous repeat offenders, serial shooters, and firearms trafficking rings so that we protect citizens and ensure our city’s safety. I want to thank our law enforcement partners for their hard work and reiterate this office’s commitment to working with them to make our streets safer.”
“ATF is committed to reducing the impact of firearm related violent crime in our communities,” said Special Agent in Charge Marcus Watson of ATF Nashville. “Using technology helps us to identify the high crime areas and those who criminally possess firearms. We employ every technique available to law enforcement to dismantle criminal organizations and disrupt the illegal use of firearms for criminal activity. Working with our law enforcement partners, this enforcement initiative did just that.”
Special Agent in Charge Marcus Watson of the ATF Nashville Division, U.S. Marshal Tyreece Miller, Chief Cerelyn “CJ” Davis of the Memphis Police Department, Assistant Special Agent in Charge Clint Cannon of Homeland Security Investigations (HSI), and Chief Deputy Anthony Buckner of the Shelby County Sheriff’s Office provided additional details relating to the initiative, as well as on larger firearms enforcement and violence-prevention efforts.
Additionally, District Attorney General Steve Mulroy announced that his office obtained a court order under Tennessee law to shut down the Save a Stop 2 store as a nuisance and danger to the community. The order was based on the excessive illegal firearm and drug crimes being committed on and around the property.
“This is an excellent example of effective partnerships among agencies,” said Shelby County District Attorney Steven J. Mulroy. “Thanks to the great work of the ATF and our local law enforcement, we were able to file a nuisance action to shut down a breeding ground of crime in the community which had long degraded neighborhood residents' safety and quality of life. Because of that and the work by the U.S. Attorney’s Office, residents can now look forward to a safer community.”
Between 2022 and 2023, law enforcement officials investigated illegal firearm and drug crimes happening in Memphis and Shelby County. Information from 911 calls involving the Save a Stop 2 property showed repeated reports of armed persons, drug overdoses, shots fired, both aggravated and simple assaults, auto thefts, fights, drug sales, and other disturbances. Many of these activities took place in the store’s public parking lot during business hours while nearby uninvolved, law-abiding citizens were engaged in their shopping or day-to-day errands.
The joint investigation has led to nine indictments or complaints and 21 defendants facing federal charges. Federal agents purchased or seized 91 firearms, six of which were outfitted with machine gun conversion devices or “switches” designed to convert a firearm to a fully automatic weapon. Additionally, law enforcement purchased or seized almost two kilograms of methamphetamine, 332 grams of powder cocaine, 210 grams of powder fentanyl, almost 65 grams of crack cocaine, 2,826 fentanyl pills, and 767 MDMA/Meth pills.
Some defendants were charged together, but several others were charged individually. The following charges have been filed in United States District Court, according to court documents:
Marvis Harris, 49, Christopher Butts, 41, and Antoinette Ozier, 41, were indicted together on drug distribution charges. In the same indictment:
Harris and Butts were charged with conspiracy to distribute drugs as well as distribution of drugs.
Butts and Ozier were charged with unlawfully possessing firearms following felony convictions and for possessing firearms in furtherance of a drug trafficking crime.
Harris was also charged with unlawfully possessing firearms following felony convictions, illegal possession of machine guns, and with possessing a firearm in furtherance of a drug trafficking crime.
Ozier was charged with using a premises for the purpose of manufacturing or distributing drugs.
Ernell Paige, 45, was charged in an indictment with possessing drugs with intent to distribute and with distribution of drugs.
Ulandus Mayes, 34, and Christopher Watts, 39, were indicted together for engaging in the business of dealing firearms without a federal firearms license and for unlawfully possessing firearms following felony convictions. Mayes was additionally charged with distribution of drugs and possessing firearms in furtherance of a drug trafficking crime.
Enrique Cardenas-Otra, 41, was charged with unlawfully possessing firearms following felony convictions and for engaging in the business of dealing firearms without a federal firearms license.
Xavier Ashford, 30, and Marquez Glover, 21, were both charged with distribution of drugs.
Leedell Otis, 46, Ricky Brooks, 41, and Jeremiah Otis, 34 were indicted together. In the same indictment:
Leedell Otis and Ricky Brooks were also charged with unlawfully possessing firearms following felony convictions.
In addition, Leedell Otis and Jeremiah Otis were charged with distribution of narcotics, and use and carry of a firearm during and in relation to a drug trafficking crime.
Justin Bankhead, 33, was charged with possession of a firearm in furtherance of a drug trafficking crime.
Jamar Anderson, 27, Tijerol Crawford, 33, Raymond Greenwood, 39, Broderick Harper, 26, Benjamin Jones, 28, Octavius McMullen, 32, and Larry Raiford, 58 were indicted together. In the same indictment:
Anderson, Jones, Crawford, Greenwood, and McMullen were also charged with unlawfully possessing firearms following felony convictions.
Anderson, Jones, Raiford, and Crawford were charged with distribution of narcotics.
Harper and Jones were charged with possession of a machinegun conversion device.
Crawford was charged with carrying and using a firearm during and in relation to a drug trafficking crime.
Adrian Seymour, 37, was indicted for unlawfully possessing firearms following felony convictions, distribution of narcotics, and use and carry of a firearm during and in relation to a drug trafficking crime.
ATF led the investigation preceding the indictments with assistance from MPD, the U.S. Marshals Service, Drug Enforcement Administration, HSI, and Shelby County Sheriff’s Office.
Assistant U.S. Attorneys Marques Young and Michelle Parks for the Western District of Tennessee are leading the team that is prosecuting the cases.
These indictments are part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and gun violence, and to make our neighborhoods safer for everyone. On May 26, 2021, the Department launched a violent crime reduction strategy strengthening PSN based on these core principles: fostering trust and legitimacy in our communities, supporting community-based organizations that help prevent violence from occurring in the first place, using data-driven methods to set focused and strategic enforcement priorities, and measuring the results.
An indictment is merely an allegation. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
10 Defendants Indicted For Operating $20 Million Black Market HIV Medication Fraud Scheme
Defendants Include Alleged Medication Wholesalers and Pharmacy Owners
Damian Williams, the United States Attorney for the Southern District of New York, James Smith, the Assistant Director in Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and Naomi Gruchacz, the Special Agent in Charge of the New York Regional Office of the U.S. Department of Health and Human Services, Office of Inspector General (“HHS-OIG”), announced today the unsealing of Superseding Indictments charging BORIS AMINOV, CHRISTY CORVALAN, IRINA POLVANOVA, ROMAN SHAMALOV, JONATHAN GAVRIELOF, ANTONIO PAYANO, DAVID FERNANDEZ, CRYSTAL MEDINA, JUAN HERNANDEZ, a/k/a “Pop,” and ALBERT YAGUDAYEV, a/k/a “Jeff,” in connection with their participation in a years-long scheme to defraud Medicaid, Medicare, and private insurance companies out of at least approximately $20 million. POLVANOVA, SHAMALOV, and YAGUDAYEV were arrested this morning and GAVRIELOF was arrested yesterday evening. All four will be presented before Chief U.S. Magistrate Judge James L. Cott today. AMINOV, CORVALAN, FERNANDEZ, and MEDINA were previously arrested in connection with an earlier indictment in the case, which is assigned to U.S. District Judge Mary Kay Vyskocil. PAYANO and HERNANDEZ remain at large.
U.S. Attorney Damian Williams said: “As alleged, the defendants orchestrated a scheme to get rich by lying to Medicaid, Medicare, and private insurance companies and depriving vulnerable HIV patients of legitimate and safe medications. The defendants allegedly made millions of dollars through submitting fraudulent insurance claims, paying illegal kickbacks, and buying and selling black-market HIV medications. Today’s charges send a clear message that this Office will be tireless in its pursuit of those who seek to line their pockets by lying to federal agencies and preying on vulnerable members of society.”
FBI Assistant Director in Charge James Smith said: “For more than half a decade, the defendants allegedly operated a health care fraud scheme that defrauded taxpayer-funded medical programs. Black market medication frauds like this take advantage of vulnerable members of our community, exposing them to unnecessary risks. The FBI will make sure anyone attempting to illegally benefit from government health care programs is held accountable in the criminal justice system.”
HHS-OIG Special Agent in Charge Naomi Gruchacz said: “Health care fraud schemes that divert HIV medication harm patients who actually need the medication as well as put other patients at risk when black market medications are recirculated and dispensed by pharmacies participating in the scheme. HHS-OIG will continue to work with our law enforcement partners to hold accountable individuals who exploit federal health care programs for their own greed.”
According to the allegations contained in the Superseding Indictments:[1]
From at least in or about 2017 through at least in or about 2023, AMINOV, CORVALAN, POLVANOVA, SHAMALOV, PAYANO, FERNANDEZ, and MEDINA engaged in a scheme that defrauded Medicaid, Medicare, and private insurance companies out of at least approximately $20 million through trafficking in black-market HIV medication. In doing so, they exploited at least hundreds of low-income individuals who had been prescribed HIV medication, jeopardizing the health and safety of those vulnerable patients.
AMINOV and PAYANO distributed black-market HIV medications to pharmacies that were owned and operated by, among others, CORVALAN (the “Corvalan Pharmacies”), POLVANOVA (the “Polvanova Pharmacy”), and SHAMALOV (the “Shamalov Pharmacy”).
After purchasing black-market medication from AMINOV and PAYANO, CORVALAN, POLVANOVA, and SHAMALOV then dispensed that medication to patients of the Corvalan and Polvanova Pharmacies or otherwise distributed it to other pharmacies. FERNANDEZ and MEDINA were employees of the Corvalan Pharmacies who participated in the day-to-day operation of the scheme.
As part of the scheme, CORVALAN, POLVANOVA, FERNANDEZ, MEDINA, HERNANDEZ, and YAGUDAYEV also funded and paid illegal kickbacks to patients in order to recruit patients to their respective pharmacies. CORVALAN, POLVANOVA, FERNANDEZ, MEDINA, HERNANDEZ, and YAGUDAYEV regularly attempted to recruit new patients to increase the number of prescription medications for which the Pharmacies could fraudulently bill government insurance. CORVALAN, FERNANDEZ, and MEDINA also paid patients to sell back their HIV medications to the Corvalan Pharmacies, thereby inducing patients to forego using the medications they were prescribed.
From at least in or about 2021 through at least in or about October 2023, SHAMALOV and POLVANOVA engaged in a related scheme where they bought and then re-sold diverted black-market prescription HIV medication through online prescription drug marketplaces to other pharmacies around the country.
In order to further their schemes and conceal their proceeds, CORVALAN, POLVANOVA, and SHAMALOV used bank accounts associated with their respective pharmacies to funnel money to shell companies controlled by AMINOV.
The defendants spent the proceeds of the scheme to purchase luxury cars, including a 2021 Mercedes-Benz Maybach with an estimated fair market value of approximately $245,000; waterfront real-estate, including two properties in the Bronx purchased for a total of approximately $2.4 million; designer clothes; and jewelry and gold.
AMINOV, 47, of Brooklyn, New York, is charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison; one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to defraud the United States, which carries a maximum potential sentence of five years in prison.
CORVALAN, 41, of the Bronx, New York, is charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison; one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison; one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum potential sentence of five years in prison; and one count of conspiracy to defraud the United States, which carries a maximum potential sentence of five years in prison.
POLVANOVA, 47, of Queens, New York, is charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison; one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison; one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum potential sentence of five years in prison; one count of mail fraud, which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to defraud the United States, which carries a maximum potential sentence of five years in prison.
SHAMALOV, 47, of Queens, New York, is charged with one count of conspiracy to commit money laundering, which carries a maximum potential sentence of 20 years in prison; one count of mail fraud, which carries a maximum potential sentence of 20 years in prison; and one count of conspiracy to defraud the United States, which carries a maximum potential sentence of five years in prison.
GAVRIELOF, 28, of Woodmere, New York, is charged with one count of conspiracy to defraud the United States, which carries a maximum potential sentence of five years in prison.
PAYANO, 34, of the Bronx, New York, is charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison, and one count of conspiracy to defraud the United States, which carries a maximum potential sentence of five years in prison.
FERNANDEZ, 24, and MEDINA, 28, both of the Bronx, New York, are charged with one count of conspiracy to commit wire fraud and health care fraud, which carries a maximum potential sentence of 20 years in prison; one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum potential sentence of five years in prison; and one count of conspiracy to defraud the United States, which carries a maximum potential sentence of five years in prison.
HERNANDEZ, 63, of New York, New York, and YAGUDAYEV, 35, of Queens, New York, are charged with one count of conspiracy to violate the Anti-Kickback Statute, which carries a maximum potential sentence of five years in prison.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Williams praised the outstanding investigative work of the FBI and HHS-OIG.
This case is being handled by the Office’s General Crimes Unit. Assistant U.S. Attorneys Jeffrey W. Coyle and Jackie Delligatti are in charge of the prosecution.
The charges contained in the Indictments are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Superseding Indictments and the description of the Indictments set forth herein constitute only allegations, and every fact described herein should be treated as an allegation.