Blackstone Man Pleads Guilty to Using a Firearm to Murder an Individual at Veterans Hospital

RICHMOND, VA—Cornelius I. Hayes, 55, of Blackstone, Virginia, pleaded guilty today to use of a firearm in relation to a violent crime causing the death of another. The charges stem from the February 22, 2012 murder of James Stephenson Lee in the parking lot of the Veteran’s Administration Hospital in Richmond, Virginia.

Neil H. MacBride, United States Attorney for the Eastern District of Virginia; Jeffrey C. Mazanec, Special Agent in Charge of the FBI’s Richmond Field Office; and Kim Lampkins, Special Agent in Charge, Department of Veterans Affairs, Office of Inspector General, made the announcement after the plea was accepted by United States District Court Judge Henry E. Hudson.

“Cornelius Hayes admitted that he shot and killed James Lee that tragic day in February,” said U.S. Attorney Neil H. MacBride. “He now faces up to life in prison for bringing—and then using—a firearm to resolve a domestic dispute. Today’s guilty plea brings closure one step closer for the victims and their families.”

Hayes was indicted on April 16, 2012, by a federal grand jury on charges of first-degree murder, use of a firearm in relation to a violent crime causing the death of another, attempted murder, use of a firearm in relation to a violent crime, and possession of a firearm by a convicted felon. Hayes faces a maximum penalty of life when he is sentenced on January 18, 2013.

In a statement of facts filed with his plea agreement, Hayes admitted to approaching Lee and a female in the parking of the Hunter Holmes McGuire Veteran Administration Medical Center on February 22, 2012. After a brief verbal confrontation with the female, Hayes brandished a .38 caliber revolver and shot Lee in the shoulder. Hayes chased the female a short distance, only to return to Lee and shoot him a second time. Lee died as a result of the gunshots fired by Hayes.

This case was investigated by the Federal Bureau of Investigation and the Veteran’s Administration-Office of the Inspector General. Assistant United States Attorney’s Peter S. Duffey and Erik S. Siebert are prosecuting the case on behalf of the United States.

Reno's Fugitive Task Force Arrests Colorado Sexual Assault and Kidnapping Suspect

Reno, NV – The Reno United States Marshals Service (USMS) led Fugitive Task Force, in partnership with the Department of Veterans Police, announces the arrest of Landan R. McMain (28). McMain is wanted by the Colorado Springs Police Department on an outstanding arrest warrant for multiple charges including kidnapping and sexual assault. It is alleged in 2006; McMain kidnapped and sexually assaulted an adult female. The warrant for arrest was issued on April 12, 2012 after McMain was determined to be a suspect.

After receiving information McMain was residing in Northern Nevada, the Task Force worked with the Department of Veterans Police to affect the arrest. McMain was arrested this afternoon, without incident, where he was employed at the Reno Veterans Administration Medical Center. He has been booked into the Washoe County Jail, as a fugitive from justice, awaiting extradition to Colorado.

The Fugitive Task Force, led by the U.S. Marshals Service, is a partnership comprised of law enforcement investigators from the United States Marshals Service, Washoe County Sheriff’s Office, Nevada Department of Public Safety (Probation & Parole), and Sparks Police Department. The Task Force combines the resources and expertise of local, state, and federal law enforcement in a coordinated effort to arrest dangerous fugitives and pursue sexual offenders wherever they are located.

Former Department of Veterans Affairs Official Sentenced to Serve 60 Months in Prison for Conspiracy and Wire Fraud

Spouse and Company Also Sentenced for Their Roles in Scheme

WASHINGTON — The former associate director of the Department of Veterans Affairs (VA) Consolidated Mail Outpatient Pharmacy in Hines, Ill., his wife and their temporary staffing company were sentenced today for their participation in a conspiracy to defraud the VA and the Small Business Administration (SBA), the Department of Justice announced.

William J. Brandt, the associate director of the VA facility from 1996 until April 2007, his wife, Esperanza A. Brandt, and Pronto Staffing Inc. were sentenced today in U.S. District Court in Chicago by Judge Milton I. Shadur. William Brandt was sentenced to serve 60 months in prison and Esperanza Brandt was sentenced to serve 24 months of probation. The Brandts and Pronto Staffing were also sentenced to pay $400,000 in restitution jointly and severally.

On May 9, 2009, the Brandts and Pronto each pleaded guilty to one charge of conspiracy to commit wire fraud. William Brandt also pleaded guilty to one charge of wire fraud, which deprived the VA and the public of his honest services. The Outpatient Pharmacy in Hines, one of seven regional VA mail-out pharmacies, currently processes and sends out more than 90,000 prescriptions each day to veterans.

The Brandts and Pronto admitted to conspiring with others to commit wire fraud in a scheme to fraudulently allow Pronto to provide temporary pharmacists to the Outpatient Pharmacy where William Brandt worked and supervised pharmacists. Pronto was created by the Brandts in 2000 to provide pharmacists to the Hines Outpatient Pharmacy. The company later sought SBA certification as a woman-owned, minority-owned small disadvantaged business and 8(a) Program participant. As part of the conspiracy, the Brandts agreed to allow another company to fraudulently use Pronto’s SBA status to bid on contracts set aside for SBA and 8(a) participants.

William Brandt also pleaded guilty to wire fraud for making materially false misrepresentations to the VA and other government officials and hiding his involvement with Pronto. Brandt claimed that Pronto was solely managed by his wife in order to avoid conflict of interest laws governing federal employees. During the course of the scheme, William Brandt, working with others, secretly agreed that the billing rates charged to the VA for certain pharmacists provided by Pronto should be increased. Between 2000 and 2007, the Brandts and other co-conspirators used Pronto to bill the VA for more than $8 million in services to the Hines Outpatient Pharmacy facility. The department said that this conduct deprived the VA and the public of Brandt’s honest service.

Four individuals and one company have pleaded guilty and have been sentenced in this investigation. On June 30, 2008, Joel M. Gostolmelsky, the former director of the VA facility, pleaded guilty to conspiracy and to accepting illegal gratuities in connection with awarding staffing and supply contracts, including contracts for temporary pharmacists. On Oct. 7, 2010, Gostolmelsky was sentenced to serve five months in prison and to pay $49,484 in restitution. On Aug. 13, 2009, Stephanie D. Blackmon and a temporary staffing company she owned, Patriot Services Inc., pleaded guilty to making a false statement to the SBA. On Sept. 28, 2010, Blackmon was sentenced to pay a $3,000 criminal fine and Patriot was sentenced to pay a $5,000 criminal fine.

The investigation of unlawful conduct concerning the VA’s Consolidated Mail Outpatient Pharmacies was conducted jointly by the Department of Justice Antitrust Division’s Chicago Field Office and the VA’s Office of Inspector General. The SBA’s Office of Inspector General, the Department of Defense Criminal Investigative Service and the U.S. Secret Service assisted in the investigation. 

Anyone with information concerning bid rigging, fraud, kickbacks, bribery or other crimes relating to violations of federal procurement laws meant to foster competition concerning any of the VA Consolidated Mail Outpatient Pharmacies should contact the Antitrust Division’s Chicago Field Office at 312-353-7530 or the VA Office of Inspector General at 1-800-488-8244.