Northern District of Alabama
Press releases recorded for this federal judicial district.
Morgan County Man Pleads Guilty to Sexual Exploitation of a ChildRead the Press Release
BIRMINGHAM – A Morgan County man pleaded guilty Tuesday in federal court to sexual exploitation of a child for videotaping a 13-year-old girl undressing and stepping into a shower, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Alabama Law Enforcement Agency Secretary Stan Stabler.
DUSTY RAY WILHOITE, 35, entered his guilty plea before U.S. District Judge Karon O. Bowdre. The judge scheduled Wilhoite’s sentencing for Dec. 7 in Huntsville.
According to Wilhoite’s plea agreement with the government, he produced the video in 2011. The mother of Wilhoite’s victim found the camera memory card containing the explicit images in 2013 and notified law enforcement.
The maximum penalty for sexual exploitation of a child is 30 years in prison and a $250,000 fine.
The FBI and ALEA investigated the case, which Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting.
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Bessemer Grocer Sentenced to Nearly 4 Years in PrisonRead the Press Release
BIRMINGHAM – A federal judge this week sentenced a Bessemer grocery store owner to three years and 10 months in prison and ordered him to forfeit $5.2 million to the government for defrauding the food stamp program, structuring cash transactions and laundering money to hide the illegal profit, and evading federal income taxes, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot and U.S. Department of Agriculture Office of Inspector General, Investigations, Special Agent in Charge Karen Citizen-Wilcox.
HASAN F. AHMED, 50, owner and operator of Associated Discount Foods on Ninth Street South in Bessemer, pleaded guilty in March to one count each of food stamp fraud, tax evasion and structuring currency transactions, and four counts of money laundering. U.S. District Judge R. David Proctor sentenced him on the charges Monday. In accordance with Ahmed’s plea agreement with the government, the judge also ordered Ahmed to forfeit the $5.2 million as proceeds of illegal activity.
“For several years, this defendant misused thousands of dollars’ worth of food stamp benefits every day, enriching himself at the expense of American taxpayers and food stamp recipients,” Vance said. “The SNAP program provides assistance for those who need help to feed their families. We will not allow criminals to corrupt that program so they can feed their own greed.”
“Hasan Ahmed intentionally abused the SNAP program and lined his pockets with taxpayer funds,” Hyman-Pillot said. “His actions ultimately reduced the amount of benefits available to families in need of nutrition assistance. IRS-CI and our law enforcement partners will continue to work together and investigate similar schemes. We will trace every penny of illicit proceeds and return the funds to the United States Government.”
Associated Discount Foods is a mid-sized neighborhood grocery store that was authorized by the U.S. Department of Agriculture to accept Supplemental Nutrition Assistance Program food stamp benefits.
From January 2007 through December 2010, the store’s average monthly SNAP redemptions were $4,196, increasing to $17,457 in January 2011, according to Ahmed’s plea agreement. By April 2011, the store’s monthly SNAP redemptions surpassed the average monthly redemptions of five other medium-sized grocery stores within a 14-mile area.
“Based on ADF’s total SNAP redemptions and comparison analysis, the defendant acquired an estimated $5,243,866.49 in SNAP benefits from July 2011 through June 2014 in a way that was contrary to law,” the plea agreement said. Ahmed’s redemptions rose dramatically because he illegally swapped food stamps for cash, at less than the stamps’ face value, and allowed customers to purchase ineligible items with food stamp benefits at inflated rates, according to the document.
Ahmed evaded taxes on the illegal income when he filed a federal income tax return for the 2013 tax year claiming total income of $24,728 when his actual income was $210,927, according to his plea.
Court documents, including Ahmed’s plea agreement, outline his money laundering and illegal currency structuring as follows:
Ahmed controlled a BB&T checking account opened in the name of a relative, identified in court documents as R.N. Between June 2013 and June 2014, in four separate transactions, he deposited $58,100 in proceeds of his food stamp fraud into R.N.’s account. Ahmed moved money into R.N.’s account from his grocery store’s business accounts, where SNAP benefits were electronically deposited, to conceal or disguise that the money was the product of his food stamp fraud.
Ahmed illegally structured financial transactions in an Associated Discount Foods business account at BB&T, making two withdrawals of $10,000 and 36 withdrawals ranging from $9,200 to $9,900, for a total of $362,900, between January and May of 2013. After a bank teller informed Ahmed that transactions over $10,000 had to be reported, he made no further currency transactions over that amount.
Financial institutions are required by law to report currency transactions above $10,000 to the U.S. Department of Treasury. “The defendant engaged in these transactions to evade the reporting requirement” on the 38 withdrawals, according to Ahmed’s guilty plea.
IRS-CI and USDA-OIG investigated the case, which Assistant U.S. Attorneys Erica Williamson Barnes and Daniel Fortune prosecuted.
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Leader of Northeast Birmingham Drug Ring Sentenced to 23 Years in Federal PrisonRead the Press Release
BIRMINGHAM – A federal judge today sentenced the leader of one of Birmingham’s largest cocaine- and heroin-trafficking rings to nearly 23 years in federal prison, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and Jefferson County Sheriff Mike Hale.
U.S. District Judge L. Scott Coogler sentenced PATRICK DEWAYNE HALL, 37, to 22 years and 11 months in prison for his role in leading the illegal drug-trafficking organization based in northeast Birmingham. Hall pleaded guilty in January 2016 to participating in the drug-trafficking conspiracy and to various other drug charges, including money laundering and using a telephone to traffic drugs.
A federal grand jury in October returned a 72-count indictment charging Hall and 23 others with conspiracy to possess with intent to distribute and to distribute heroin and cocaine. In addition to being charged in the conspiracy, various defendants also were charged with distributing drugs and laundering money.
The investigation focused on Hall, who, along with one of his lieutenants, LOVODAS DEANGELO BLAKE, 27, was arrested in the early morning of Aug. 2, by an FBI SWAT team after the duo hid for several hours in the attic of a Northeast Birmingham home. The pair ran to the house after leading federal agents on a high-speed chase through northeast Birmingham, then ditching their Chevrolet Tahoe in the front yard of a home. FBI agents recovered more than nine kilograms of cocaine and almost $20,000 from the vehicle.
Among the defendants sentenced today was DAVID WAYNE McDANIEL, 24, who is widely known by his rap artist moniker, “Northside Weezy.” McDaniel received a seven-year, six-month sentence. Also sentenced were TEDDY TONELL DAVIS, 34, to 15 years, eight months in federal prison, and COREY LIONEL PITTS, 38, to 10 years in prison. Last month, Judge Coogler sentenced ROBERT LYNN THOMAS JR., 26, to five years in prison, JESSTIFUR JAHALIA FERRARI HURST, 29, to 10 years in prison, RODRIQUIS TYRONE STURDVIANT, 26, to two years and 11 months in prison, ISRAEL BRAVO OLASOAGAR, 38, to three years, 10 months in prison, and JESSE TYRONE HURST, 58, to five years in prison. The remaining defendants are scheduled for sentencing in the coming months.
The prosecution resulted in the forfeiture of large amounts of cash, four vehicles valued at more than $160,000, five parcels of real property valued at more than $300,000, and 23 money judgments levied against the defendants for $10 million.
The FBI, IRS Criminal Investigation, Jefferson County Sheriff’s Office, and other agency members of the FBI’s North Alabama Safe Streets Task Force investigated the case. Assistant U.S. Attorney Greg Dimler prosecuted the case.
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Two Pharmacists Sentenced to Prison for Adulteration of Drugs in Connection with Alabama Based Compounding PharmacyRead the Press Release
WASHINGTON - The Department of Justice announced today that two Alabama pharmacists have been sentenced to 12 and 10 months in prison for their roles in the distribution of adulterated drugs, which were compounded at the now-defunct compounding pharmacy Advanced Specialty Pharmacy doing business as Meds IV.
David Allen, 60, of McCalla, Alabama, was the former pharmacist-in-charge of Meds IV, and William Timothy Rogers, 48, of Hoover, Alabama, was the former president of Meds IV. Both men pleaded guilty in March 2016 to two misdemeanor violations of the Federal Food, Drug and Cosmetic Act (FDCA). Allen and Rogers were sentenced to 12 months and 10 months in prison, respectively, by U.S. District Court Judge Virginia Emerson Hopkins for the Northern District of Alabama. Judge Hopkins also sentenced both defendants to one year of supervised release following their imprisonment and a $5,000 fine.
“Compounding pharmacies are entrusted with protecting the public’s health from any harm their drugs may impose and must comply with the law,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “These cases demonstrate that the Department of Justice will continue to work aggressively with the U.S. Food and Drug Administration (FDA) to protect consumers from drugs compounded under insanitary conditions.”
“Meds IV provided intravenous nutrition to patients, without taking legally required precautions in the preparation of its product,” said U.S. Attorney Joyce White Vance for the Northern District of Alabama. “As a result, a number of patients developed serious infections. We are committed to prosecuting this type of practice to the fullest extent of the law provides for and protecting the safety of our citizens.”
“Producing unsafe and contaminated drugs poses a serious threat to the U.S. public health and cannot be tolerated,” said Director George Karavetsos of the FDA’s Office of Criminal Investigations. “The FDA remains fully committed to aggressively pursuing those who place unsuspecting American consumers at risk by distributing adulterated drugs.”
As alleged in the information, Meds IV compounded various drugs for human use, including an intravenous drug known as Total Parenteral Nutrition (TPN). TPN is liquid nutrition administered intravenously to patients who cannot or should not receive their nutrition through eating. The information alleged that beginning in or around February 2011, Meds IV compounded its own amino acid solution, which it then mixed with other ingredients to form TPN.
As charged in the information, amino acid used in compounding the TPN was adulterated in that it was contaminated with Serratia marcescens (S. marcescens) and was prepared, packed, or held under insanitary conditions. S. marcescens is a bacteria that can cause bloodstream infections if introduced into the bloodstream through contaminated medications. These infections can cause serious medical complications, including death, because S. marcescens is resistant to many antibiotics.
According to the charging document, the amino acid was prepared by Meds IV outside a laminar airflow workbench and was kept unrefrigerated, in a room that was not sterile, in a large pot sitting on the floor, sometimes overnight, before it was sterilized and used.
As alleged in the information, between March 5 and 15, 2011, nine patients at various Birmingham-area hospitals who developed bloodstream infections caused by S. marcescens died, and several other hospital patients developed S. marcescens bloodstream infections but survived. According to the charges, all of these patients had been given TPN that was compounded and distributed by Meds IV. As alleged in the information, while a number of the patients who died had underlying conditions which may have contributed to their deaths, medical records of some patients suggest that the S. marcescens bloodstream infections were also a significant factor.
According to the information, Meds IV was notified on March 14, 2011, by a hospital in the Birmingham area, that four patients receiving TPN had tested positive for S. marcescens. The information alleged that the TPN was compounded and distributed by Meds IV and that this notification was the first time Meds IV was informed of a link between its TPN and patients testing positive for S. marcescens. The information alleged that on or around March 16, 2011, Meds IV began notifying some customers that compounding of TPN was suspended until further notice.
As noted in the information, during an inspection at Meds IV starting on March 22, 2011, investigators from the U.S. Centers for Disease Control and Prevention (CDC) found S. marcescens that was indistinguishable from the outbreak strain on a tap-water faucet, in an open container of amino acid powder, and on the surface of mixing equipment that had been used to make TPN. According to the charging document, the FDA and CDC investigators linked the S. marcescens to TPN that had been compounded by Meds IV.
As alleged in the information, Allen supervised all compounding at Meds IV, was specifically responsible for reviewing and approving TPN formulations and was also responsible for filling the individual prescriptions Meds IV received for patient-specific TPN products. The information alleged that Rogers was ultimately responsible for overseeing all of the day-to-day operations of Meds IV. Both defendants pleaded guilty to two misdemeanor counts, representing the two lots of amino acid which were determined to be adulterated in violation of the FDCA.
The case was prosecuted by Trial Attorney Heide L. Herrmann of the Justice Department’s Consumer Protection Branch and Assistant U.S. Attorney Henry Cornelius of the Northern District of Alabama. They were assisted by Associate Chief Counsel Shannon M. Singleton of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services. The case was investigated by the FDA’s Office of Criminal Investigations.
Additional information about the Consumer Protection Branch and its enforcement efforts may be found at http://www.justice.gov/civil/consumer-protection-branch. For more information about the U.S. Attorney’s Office for the Northern District of Alabama, visit its website at https://www.justice.gov/usao-ndal.
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Federal Jury Convicts Former Non-Profit Health Clinics CEO for Funneling Millions in Grant Money to Private CompaniesRead the Press Release
BIRMINGHAM – A federal jury today convicted the former chief executive of two non-profit health clinics for the poor and homeless for funneling millions in federal grant money to private companies he formed to contract with the clinics. U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Internal Revenue Service-Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot, and U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson announced the verdict.
The jury convicted JONATHAN WADE DUNNING, 52, of Hoover, for conspiracy, bank fraud, wire fraud and money laundering after deliberating about three days following three weeks of testimony before U.S. District Judge Barbara Jacobs Rothstein. Dunning’s sentencing should be scheduled in about 90 days.
The guilty verdicts came on 98 of 112 charged counts related to Dunning’s involvement with Birmingham Health Care, Central Alabama Comprehensive Health in Tuskegee, Birmingham Financial Federal Credit Union, and a group of for-profit businesses known as the “Synergy Entities.” Over the years, BHC and CACH received millions of dollars in federal grant funds through the Health Resources & Services Administration to further their missions of providing healthcare services to underserved populations.
Jurors found Dunning guilty of conspiracy to commit federal program fraud, wire fraud, bank fraud and two kinds of money laundering. They also found him guilty on 62 of 67 counts of wire fraud, two of three counts of bank fraud and 33 of 41 counts of money laundering.
"Dunning relentlessly stole taxpayer dollars that were meant to provide critical medical care to the poor and homeless in Birmingham,” Vance said. “His shameless devotion to purchasing luxury items like a Jaguar for himself, while leaving to suffer the people he committed to serve, is deplorable." Vance said. “My office is committed to prosecuting cases where tax dollars are criminally misused by those the public entrusts to be good stewards. I applaud the commitment of the agents of the FBI, IRS and HHS, and the prosecution team in my office, who all worked long hours to unsnarl the tangle of companies, contracts, real estate and financial dealings that Dunning used in an unsuccessful effort to conceal his criminal conduct.”
“Mr. Dunning took money intended to help the less fortunate in our area and used it for his own personal bank account -- actions that are simply inexcusable and hard to comprehend,” Stanton said. “I am extremely proud of the work on this case, and I want to personally thank the agents and prosecutors for their tireless efforts in bringing Dunning to justice. The public can be assured that the FBI and our law enforcement partners will continue to aggressively pursue those who would violate the public trust.”
“The guilty verdict of Jonathan Dunning is a victory for the American public,” Hyman-Pillot said. “Jonathan Dunning used taxpayer funds from Birmingham Healthcare to enrich himself. As a result, he built his fortune on a foundation of greed and deceit. IRS Criminal Investigation and our law enforcement partners exposed every layer of financial fraud Jonathan Dunning attempted to conceal. Today, justice has been served.”
“The jury's verdict speaks volumes,” Jackson said. “Stealing federal money meant to treat the poor and homeless will not be tolerated. We will continue to work with our law enforcement partners to protect the vulnerable beneficiaries of these taxpayer-funded programs from greed-fueled schemes."
Dunning was the chief executive officer of BHC and CACH for a period of time and left those jobs to run his for-profit businesses. Even after leaving his post as CEO, however, Dunning continued to exercise control over BHC and CACH, according to testimony. Between October 2008 and October 2011, Dunning served as president, board chairman and loan officer of Birmingham Financial Federal Credit Union.
From those various positions, Dunning participated in a conspiracy and executed schemes that defrauded BHC, CACH, and others of substantial resources, including federal funds. Dunning laundered money in a variety of ways to conceal and promote his crimes and to spend the money for himself.
The maximum prison penalty for conspiracy is five years, for wire fraud and money laundering the maximum is 20 years, and for bank fraud, 30 years.
FBI, IRS-CID, and HHS-OIG investigated the case, which Assistant U.S. Attorneys Melissa K. Atwood, Tamarra Matthews-Johnson and John B. Ward are prosecuting.
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Federal Jury Convicts Former Army Contracting Official for Filing False Tax ReturnRead the Press Release
BIRMINGHAM – A federal jury on Wednesday convicted a former contracting official for the U.S. Army at Redstone Arsenal in Huntsville for filing a false income tax return, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Command Veronica Hyman-Pillot.
Following two and a half days of testimony before U.S. District Judge Madeline Hughes Haikala, the jury convicted WILLIS EPPS, 61, on one count of filing a false tax return.
Before Epps’ indictment in January 2013, he was a high-level contracting official assigned to Army Contracting Command-Redstone. Beginning in 2010, Epps provided contracting support to the Army’s Non-Standard Rotary Wing Aircraft office and was named its director of contracts. He retired in January 2013.
The jury convicted Epps of willfully filing an IRS tax return for 2013 that he knew was false. According to the evidence, Epps knowingly omitted $56,250 in income when he filed a return stating his joint taxable income for 2013 was $182,541.
The facts leading to the IRS-CI investigation of Epps arose during a separate multi-agency investigation into NSRWA. Those investigating agencies were the Special Inspector General for Afghanistan Reconstruction, Defense Criminal Investigative Service, U.S. Army Criminal Investigation Command and the FBI.
Assistant U.S. Attorneys Ramona C. Albin and Henry B. Cornelius Jr. prosecuted the case.
Birmingham Man Sentenced to 30 Years in Prison for Child Exploitation and Child PornographyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Birmingham man to 30 years in prison for sexually exploiting a 5-year-old child and possessing and distributing child pornography, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Judge R. David Proctor sentenced AHKEEM JAMAR JOHNSON, 24, on one count of sexual exploitation of a child, one count of distributing child pornography and one count of possessing child pornography. Johnson pleaded guilty to the charges in March. Following today’s hearing, the judge ordered Johnson immediately into the custody of U.S. Marshals.
According to court documents, Johnson took sexually explicit images of the 5-year-old girl and distributed some of those images. He also possessed more than 96 images of child pornography involving children other than the 5-year-old. Most of those images showed prepubescent girls engaged in sexual intercourse with adult men.
The FBI investigated the case, which Assistant U.S. Attorney Jacquelyn M. Hutzell prosecuted.
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Tuscaloosa Men Indicted for Conspiracy to Distribute Marijuana through the U.S. MailRead the Press Release
BIRMINGHAM – The FBI today arrested one of two Tuscaloosa men indicted in May on charges that they conspired to distribute marijuana and to bribe U.S. Postal Service employees to deliver the drug, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, U.S. Postal Inspector in Charge Adrian Gonzalez and West Alabama Narcotics Squad Capt. Wayne Robertson.
A federal grand jury in May indicted QUINCY TERRELL DOSS and MANUEL JOHNSON JR., both 35, for conspiracy to distribute marijuana in Tuscaloosa County between August 2014 and July 30, 2015. The grand jury’s five-count indictment also charges Doss and Johnson with conspiring, between April 2015 and July 30, 2015, to bribe Postal Service employees, and with possessing with intent to distribute marijuana on May 14, 2015. The indictment also charges Johnson with bribing a mail carrier on June 22, 2015, and charges Doss, individually, with possessing with intent to distribute marijuana on July 30, 2015.
Agents arrested Doss this morning at his at home. He was detained following an appearance before U.S. Magistrate Judge John E. Ott. Johnson already was in custody on state charges related to the marijuana distribution. Johnson is scheduled for arraignment in U.S. District Court on June 9.
“We are entitled to expect integrity and honesty from Postal Service employees,” Vance said. “My office is committed to prosecuting corrupt postal employees, as well as those who attempt to bribe postal workers in order to further their own criminal activities.”
“The Postal Service is in the business of moving the U.S. mail. It has no interest in being an unwitting accomplice to anyone using the U.S. mail to distribute illegal drugs, and is committed to root out such conspiracies,” Gonzalez said. “Part of the mission of the Postal Inspection Service is to ensure a safe and secure work environment for our employees. This alleged activity by these defendants posed a significant threat to the postal employees and community we strive to protect. I commend the hard work and countless hours put forth by all of the law enforcement agencies involved in this investigation."
“Today’s arrest shows the FBI’s commitment to working together with our law enforcement partners in addressing drug conspiracy, bribery, and corruption at every level,” Stanton said.
Robertson, of the West Alabama Narcotics Squad, said, "Our team is focused on stopping illegal drugs from coming onto Tuscaloosa County streets, whether those drugs come here by traditional means, or through mail and package services. We will continue to work with our law enforcement partners to stem that flow."
Three Postal Service employees involved in this case were charged previously and have entered guilty pleas for their roles in the conspiracy.
The maximum penalty for the charges of conspiracy to distribute marijuana, conspiracy to bribe a public official, and possession with intent to distribute marijuana is five years in prison and a $1 million fine. The maximum penalty for bribing a public official is two years in prison and a $250,000 fine.
The FBI, U.S. Postal Inspection Service and West Alabama Narcotics Squad investigated the case, which Assistant U.S. Attorney Brad Felton is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Huntsville Man Indicted for Bank Fraud and Aggravated Identity TheftRead the Press Release
BIRMINGHAM -- A federal grand jury today indicted a Huntsville man on fraud and aggravated identity theft charges in connection with a scheme to steal and counterfeit business checks in November and December 2014, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspector Frank Dyer.
An eight-count indictment filed in U.S. District Court charges that BERNARD EUGENE MCKINNEY II, 28, with the aid of others, counterfeited legitimate business checks that had been stolen from the U.S. mail, changed the payee names to himself or others, and then cashed the checks at north Alabama BBVA Compass Bank branches.
According to the indictment, McKinney would obtain stolen business checks or counterfeit checks. He would then forge the signature of the person who signed the original checks, which were used to make counterfeits, and/or change the name of the payee to his or other peoples’ names on the stolen business checks. McKinney would then cash, or assist others in cashing, the counterfeit checks and get cash for his personal use, thereby exposing the banks to financial loss.
The indictment’s six fraud counts list six fraudulent checks totaling nearly $53,000 cashed at BBVA branches.
The maximum penalty for bank fraud is 30 years in prison and a $1 million fine. The penalty for aggravated identity theft is a minimum two-year prison sentence served consecutively with any penalty imposed for a related crime, and a maximum $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Four Men Indicted for Trafficking Methamphetamine in North AlabamaRead the Press Release
BIRMINGHAM – A federal grand jury today indicted four men on charges of trafficking methamphetamine in north Alabama. The indictment follows the four men’s arrest last week and the seizure of more than 23 pounds of methamphetamine, announced U.S. Attorney Joyce White Vance and Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris.
An indictment filed in U.S. District Court charges ALFREDO LIZARRAGA ALARCON, 43, of Cleveland, Ala., FRANCISCO ALVAREZ “Edgar Alarcon” MONTES, 55, of Birmingham, DANIEL MORA “Moralejos” GONZALEZ, 43, of Tarrant, and GUILLERMO OLEA PEREZ, 44, of Phoenix, Ariz., with conspiring to distribute 500 grams or more of methamphetamine in Jefferson County and elsewhere in north Alabama between January 2014 and May 2016. Alarcon, Montes and Gonzalez are all Mexican nationals, and Perez is a Cuban national.
The indictment also charges various defendants with specific distribution counts. Those counts are as follows:
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Alarcon and Gonzalez, distributing 50 grams or more of methamphetamine in Jefferson County on May 3;
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Alarcon and Montes, distributing 50 grams of methamphetamine on May 17 in Jefferson County;
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Alarcon, Montes and Perez, possessing with intent to distribute 500 grams or more of methamphetamine on May 18 in Jefferson and Blount counties;
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Gonzalez, possessing with intent to distribute 50 grams or more methamphetamine on May 18 in Jefferson County.
The indictment contains 26 counts of using a telephone to facilitate a drug-trafficking crime. All of the telephone counts include Alarcon, 14 include Montes and four include Gonzalez.
The conspiracy charge and the possession with intent to distribute more than 500 grams of methamphetamine both carry a penalty of 10 years to life in prison and a maximum $10 million fine. The charges involving distributing 50 grams or more of methamphetamine carry a penalty of five to 40 years in prison and a maximum $5 million fine.
The charge of using a telephone to facilitate a drug-trafficking crime carries a maximum penalty of four years in prison and a $250,000 fine for each count.
DEA investigated the case, which Assistant U.S. Attorney Austin D. Shutt is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Army Reserves Lt. Col. Indicted for Fraudulently Supplying Chinese-made Army Promotional Gear as Made in USARead the Press Release
BIRMINGHAM – A federal grand jury today indicted a lieutenant colonel in the U.S. Army Reserves for fraudulently supplying hundreds of thousands of Chinese-produced baseball caps and backpacks to the Army Recruiting Command on Defense Department contracts to supply “100 % U.S. MADE” products, announced U.S. Attorney Joyce White Vance, Defense Criminal Investigative Service Special Agent in Charge John F. Khin, and U.S. Army Criminal Investigation Command Special Agent in Charge James T. Wallis.
A three-count indictment filed in U.S. District Court charges that FREDERICK LAMAR BURNETT, 48, of Madison, through his Huntsville-based company, Lamar International Inc., schemed to defraud the Defense Department on three contracts, worth $6.2 million, between 2005 and 2009. All the contracts, two for baseball caps and one for backpacks, were for promotional items to be given to Army recruits. Burnett certified for all three contracts that he would meet the requirements of the Buy American Act, the Berry Amendment and federal regulations that require the government to buy domestic products and materials, according to the indictment.
The Buy American Act is a law requiring the federal government to buy domestic articles, materials and supplies, primarily to protect American labor. The Berry Amendment is a legal restriction on the Defense Department prohibiting it from spending its funds on clothing, fabrics, fibers and yarns that are not grown, reprocessed, reused or produced in the United States. The purpose of the Berry Amendment is to protect the viability of the textile and clothing production base in the United States.
Under the first contract awarded to Lamar International in 2005, Burnett supplied 209,706 baseball caps over three years and the government paid him $1.4 million, according to the indictment. Under the second contract, awarded in 2007, Lamar supplied 590,042 ball caps and the government paid him about $4 million. Under the third contract, also awarded in 2007, Lamar supplied 146,375 Army Combat Uniform backpacks and the government paid $1.1 million. A Defense Department accounting agency made the payments to Burnett by electronic funds transfer to his Huntsville bank.
Along with the required compliance to the BBA and the Berry Amendment, according to the indictment, both of the 2007 contracts included a statement, in all capital letters, that the “PRODUCT MUST BE 100% U.S. MADE.”
Instead of providing American-made products, however, Burnett negotiated and contracted with suppliers directly from China and with American companies who he knew were procuring the products from China. He used Chinese-made products to fill orders under all three contracts and hid their foreign manufacture by hiring workers on a cash basis to remove all the Chinese labels and repackage the items he sent to the Army Recruiting Command, the indictment says.
After award of the second contract, a competitor protested the bid, claiming Burnett could only bid so low if he were using foreign suppliers. The government allowed Burnett to proceed with the contract after he submitted documentation that he was using only American-made products and that he would comply with all aspects of the Buy American Act and the Berry Amendment, according to the indictment.
The total amount of the three contracts was $6.2 million. The indictment seeks to have Burnett forfeit that amount to the government as proceeds of illegal activity.
The maximum penalty for wire fraud is 20 years in prison and a $250,000 fine.
DCIS and Army CID investigated the case, which Assistant U.S. Attorney David H. Estes is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Accused Gangster Disciple Now Charged with Distributing HeroinRead the Press Release
BIRMINGHAM – An Ensley man indicted in Atlanta last month as a high-ranking member of the violent Gangster Disciples Gang was indicted today by a federal grand jury in the Northern District of Alabama for distributing heroin, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
The Alabama grand jury returned a one-count indictment charging TERENCE “T-Man” SUMMERS, 42, with distributing 100 grams or more of heroin on Sept. 2 in Birmingham. Summers already is in custody on the Northern District of Georgia charge of conspiring to participate in a racketeering enterprise that included multiple murders, attempted murder and drug crimes.
In a separate and unrelated indictment, the grand jury also charged a Madison man, ROBERT EUGENE LEWIS, 46, with one count of possessing with intent to distribute more than 100 grams of heroin in Madison County in November 2013.
Lewis currently is in federal custody in Michigan on other drug charges.
“The prosecution of heroin and opiate traffickers is a key priority for our office,” Vance said. “With overdose death rates at an all-time high nationwide, we are committed to prosecuting criminals who bring heroin into this district and putting them in prison. Disrupting the supply of heroin in north Alabama by taking two suppliers off the streets, including one who is charged with working as a leader in a violent, drug-trafficking, nationwide criminal enterprise, is a significant step in making this community safer.”
Summers was indicted in Georgia as part of an FBI-led multi-agency investigation in Georgia and Tennessee that resulted in 48 people charged in two federal indictments as members of the Gangster Disciples Gang and involved in an illegal criminal enterprise. Summers is one of three Birmingham residents charged in the Georgia indictment. The other two are Shauntay Craig, 37, and Quiana Franklin, 33.
According to court documents in the Georgia and Tennessee cases, the Gangster Disciples is a national gang active in more than 24 states with a highly organized structure including board members and governor-of-governors who each controlled geographic regions, governors, assistant governors, chief enforcers and chiefs of security for each state or regions within the state where the Gangster Disciples were active, and coordinators and leaders within each local group. To enforce discipline among Gangster Disciples and adherence to strict rules and structure, members and associates were routinely fined, beaten and even murdered for failing to follow the gang’s rules.
Summers is listed in the Georgia racketeering conspiracy indictment as having held the positions of governor of Alabama and governor-of-governors for Georgia, Alabama, South Carolina and Florida for the Gangster Disciples Gang.
That indictment lists Craig as having held the rank of Gangster Disciples board member, and Franklin as treasurer for Alabama.
The prison penalty for the heroin distribution charges against both Summers and Lewis is five to 40 years. The maximum fine is $5 million.
The FBI investigated Summers’ Northern District of Alabama case, which Assistant U.S. Attorney Austin D. Shutt is prosecuting. The FBI and the Madison-Morgan County Strategic Counterdrug Team, or STAC, investigated Lewis’ case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
Anyone with concerns about opiate use and addiction should visit www.knowdope.org, a website sponsored by the U.S. Attorney’s Office that focuses on awareness and prevention of opiate addiction. The website provides a documentary, public service videos, and links to more information and resources to help with drug abuse and treatment.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Owner of Pizza Franchises Pleads Guilty to Submitting False Tax Return that Omitted Income from Skimmed CashRead the Press Release
BIRMINGHAM – The owner and operator of dozens of pizza franchise restaurants in Alabama, Georgia and Louisiana pleaded guilty today in federal court to filing a false federal income tax return that did not include money he skimmed from his Little Caesars restaurants, announced U.S. Attorney Joyce White Vance and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
RAMON S. ARIAS, 64, of Mountain Brook, entered his plea before Chief U.S. District Judge Karon O. Bowdre to one count of making a false tax return. In accordance with a plea agreement between Arias and federal prosecutors, Arias must pay $224,290 in restitution to the IRS, and cooperate with the IRS Civil Division in filing accurate amended tax returns for 2010 through 2013. He is scheduled for sentencing Oct. 4.
Arias owned, controlled and operated 26 to 45 Little Caesars franchises in the three states from 2010 through 2013, according to his plea. The stores were incorporated under various business names, with other individuals owning percentages of the businesses, but Arias was primarily responsible for running the businesses and managing the finances.
Arias operated a scheme to divert cash from the gross receipts of some of the businesses, primarily two to four of the restaurants in Alabama, during the four years, according to his plea. Arias used a certified public accountant to prepare his business and individual income tax returns, but did not provide the accountant with any information about the skimmed money.
The amounts of skimmed cash under-reported on Arias’ individual returns for 2010, 2011, 2012 and 2013 were $238,664, $265,413, $312,955 and $287,023, respectively, according to Arias’ plea agreement.
The maximum penalty for making a false tax return is three years in prison and a $250,000 fine.
IRS-CI investigated the case, which Assistant U.S. Attorney J. Patton Meadows is prosecuting.
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Two Northeast Alabama Men Indicted in Joppa Post Office BurglaryRead the Press Release
BIRMINGHAM – A federal grand jury today indicted two northeast Alabama men for burglarizing a U.S. Post Office in Joppa, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspection Service, Postal Inspector in Charge Adrian Gonzalez.
Separate four-count indictments filed in U.S. District Court charge CLAY AUSTIN PARKER, 34, of Arab, and BRETT MICHAEL BAKER, 30, of Albertville, with one count each of post office burglary, theft of a post office key, theft of postal property and theft of postal money orders stemming from the burglary of the Joppa Post Office on Dec. 28. PARKER and BAKER join ANDREW CLAYTON ROGERS and TESSA JEAN MCCAY, who were indicted in March for the 2015 burglary.
The maximum penalty for theft of a post office key is 10 years in prison and a $250,000 fine. The maximum penalty for post office burglary and theft of postal money orders is five years in prison and a $250,000 fine. The maximum penalty for theft of postal property is three years in prison and a $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Justice Department Seeks to Shut Down Alabama Tax Return PreparerRead the Press Release
A number of tax return preparation businesses in the Birmingham, Alabama area unlawfully understate their customers’ income tax liabilities and overstate refunds by making deliberate misstatements on the returns, according to a new civil lawsuit filed by the Justice Department today. The suit, filed in federal court in Birmingham, asks the court to permanently bar Jessica Leverett aka Jessica Harris, from preparing tax returns for others. The suit also asks the court to order Leverett to turn over a list of all of the tax returns she has prepared.
According to the complaint, Leverett owns and operates a number of different tax preparation businesses in the area, including Tax Money Now, L.L.C., Dynamic Tax Services, Dynamic Tax Solutions and Express Money Tax. The government’s complaint alleges that Leverett and her associates prepared returns that fabricate self-employment businesses and business losses to offset their customers’ taxable income from other sources and to increase their customers’ Earned Income Tax Credit. When a customer does have a small business, the complaint alleges, Leverett and her associates mischaracterize the business income as household employee wages in order to avoid paying the required self-employment tax. The complaint also alleges that Leverett’s businesses claim education credits that the customers are not entitled to receive.
According to the complaint, the Internal Revenue Service (IRS) has examined 264 returns prepared by Leverett’s businesses and found that 206 understate the tax owed by Leverett’s customers by thousands of dollars on average. The complaint alleges that Leverett’s activities may have caused the United States to lose over $2.5 million in understated taxes and/or fraudulent refunds.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer, and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Birmingham Man Indicted for Mail Fraud, Wire Fraud and Identity TheftRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Birmingham man for stealing someone’s identifying personal information and using it to fraudulently obtain credit, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspection Service Postal Inspector in Charge Adrian Gonzalez.
A six-count indictment filed in U.S. District Court charges MARKEZ J. MCCONNICO, 34, with two counts each of mail fraud, wire fraud and aggravated identity theft. The indictment charges McConnico with opening two credit cards in the victim’s name, and also changing the victim’s Mobile mailing address to McConnico’s mailing address in Birmingham. McConnico added himself as an authorized user to the credit cards, causing the credit card issuers to mail the credit cards to McConnico at his address in July 2015, according to the indictment.
McConnico also is charged with gaining access to the victim’s Belk charge account using the victim’s Social Security number. McConnico made at least two charges to the victim’s Belk charge account in September and October 2015, according to the indictment.
The maximum penalty for both mail and wire fraud is 20 years in prison and a $250,000 fine. The penalty for aggravated identity theft is two years in prison.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Attorney General, White House Champion of Change Coming to Alabama for National Reentry WeekRead the Press Release
BIRMINGHAM – U.S. Attorney General Loretta E. Lynch and Daryl Atkinson, a White House Champion of Change and the Department of Justice’s first Second Chance Fellow, will be in north Alabama next week to participate in National Reentry Week events that will focus attention on the importance of helping ex-offenders build successful lives when they come out of prison, announced U.S. Attorney Joyce White Vance.
The attorney general will visit the Federal Correctional Institution in Talladega on Friday to highlight reentry programs in the prison.
Atkinson, an Alabama native, served three and a half years in an Alabama prison after pleading guilty in 1996 to a first-time, non-violent drug crime. He is now an attorney at the Southern Coalition for Social Justice in North Carolina, where he focuses on criminal justice reform issues, particularly removing the legal barriers triggered by contact with the criminal justice system.
The Justice Department designated April 24-30 as National Reentry Week to encourage and highlight work being done across the country to make the nation’s criminal justice system more fair, efficient and effective at reducing recidivism, and to help ex-offenders build fruitful lives and contribute to their communities. The U.S. Attorney’s Office for the Northern District of Alabama has organized events throughout the week across the district, including a reentry simulation, a roundtable discussion with former inmates, and reentry programs for inmates nearing the end of their sentences at both Talladega FCI and the women’s Federal Correctional Institution in Aliceville.
“As Alabama struggles to reform its prison system, we should use proven methods to support people returning to the community from prison find employment and lead law-abiding lives,” Vance said. “Our events this week are designed to educate the community about barriers to successful reentry and the benefits to society when we help overcome those barriers, including reduced crime, lower prison costs and an expanded work force.”
Atkinson will speak at the beginning of the reentry simulation on Tuesday, from 2 p.m. to 4 p.m., at the National Alumni House on the University of Alabama at Birmingham Campus. He is a living example of someone who served his sentence, faced many obstacles when he left prison, but overcame them and now works to shape reentry policy and practice at the federal level.
The reentry simulation is a role-playing exercise designed to give participants an understanding of the often overwhelming day-to-day barriers that someone coming out of prison faces in seeking a job, a driver’s license, housing, or transportation.
Another key event during the week is a reentry and employment roundtable at The Dannon Project from 2 p.m. to 4 p.m. on Thursday. The Dannon Project is a non-profit organization that provides services, including counseling and job training, to people coming out of prison. Dannon also works with employers to find appropriate job placements and provides support to both employer and employee to encourage success on the job.
The roundtable will serve as a listening session for local businesses and civic leaders to hear from Dannon’s clients about the importance of having job opportunities so that they can support themselves and their families and become positive role models in their communities.
Other events throughout the week will include two law enforcement crime intervention call-ins and a dinner gathering for recently released individuals and their families at the new state day reporting center in Birmingham to discuss the importance of family support to successful reentry.
The call-in as part of the Birmingham Violence Reduction Initiative will be held on Wednesday. This call-in of people identified as high-risk for committing or becoming a victim of violent crime will be the fourth call-in for the Birmingham VRI. Law enforcement will offer the opportunity for participants, who already are under probation or parole supervision, to connect with community resources, but also will deliver a strong message of hard consequences for individuals or the members of any group they associate with if the call-in participants engage in violent crime, particularly gun crime.
The Jefferson County call-in is scheduled for Monday. Participants called in for that meeting with law enforcement will be recently released state and federal offenders who are returning to Jefferson County. They will be provided information about community service providers that can help them successfully reintegrate into society.
Justice Department Hosts Interagency Community Initiative in Birmingham to Combat Religious Discrimination in EmploymentRead the Press Release
BIRMINGHAM — The Justice Department’s Civil Rights Division and the U.S. Attorney’s Office for the Northern District of Alabama, in partnership with other federal agencies, hosted a community roundtable at the Birmingham Civil Rights Institute on Wednesday that focused on religiously-motivated discrimination in hiring and in the workplace, and on ways the federal government can improve its efforts in these critically important areas, announced U.S. Attorney Joyce White Vance.
“The civil rights movement in Birmingham began in large part in our religious community,” Vance said. “The religious community in Birmingham, as across the nation, is now more diverse. Today’s opportunity to listen to the concerns and issues people of varied faiths encounter at the intersection of the exercise of their religion and their employment will help us all to better understand and respect the wide range of worship and belief that coexist in our great democracy,” she said.
About 20 representatives from various faiths and faith-based organizations in the Birmingham Area gathered around a table with Vance and officials with the Equal Employment Opportunity Commission, the Civil Rights Division of the Justice Department, and the Department of Labor’s Office of Federal Contract Compliance Programs to discuss short and long-term goals on how the federal government can better address the problem of religious discrimination in employment. Government representatives sought specific recommendations on steps the federal government might take to improve the way it responds to this issue.
Topics for the afternoon’s discussion were:
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Religion Discrimination and Harassment in the Workplace
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Data Collection and Reporting
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Accommodation of Religion
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Education Regarding Workplace Religious Discrimination
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Issues Involving Religious Institutions
The discussion underscored that issues exist in hiring and employment, particularly for those who are physically identifiable, like women who cover their heads or Sikhs who wear Turbans.
Participants also raised issues of prayer in the workplace, including Muslims who struggle to get accommodations for their daily prayers, to Jews, Muslims and non-believers who are ostracized for not joining in Christian prayer.
“We need to make it kosher to complain” about discrimination and subtle pressure to conform, said a Birmingham rabbi.
This roundtable is the third in a series of roundtables being held throughout the country as part of the Department’s new interagency community engagement initiative designed to promote religious freedom, challenge religious discrimination and enhance enforcement of religion-based hate crimes. This new initiative supplements the Department’s long-standing criminal and civil enforcement efforts to prevent religious discrimination and religion-motivated hate crimes.
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U.S. Attorney Vance Says White House Fair Chance Pledge Should Have Sound Footing in Birmingham AreaRead the Press Release
BIRMINGHAM – As the White House and U.S. Attorney General Loretta Lynch on Monday hosted 19 American companies committed to eliminating hiring barriers for people with criminal records, U.S. Attorney Joyce White Vance said she is proud that government and corporate leaders in the Birmingham area already are working to provide a pathway for a second chance to the thousands of people coming out of Alabama prisons each year.
The City of Birmingham in February became the first city in Alabama to “ban the box” on its hiring applications in order to give people with a criminal history a fair shot to compete for jobs and a chance to be judged on their qualifications. In November, Vance met with a group of Birmingham Business Alliance investors to discuss the importance of employment on the successful return to society of people leaving prison. These actions are right in step with the Fair Chance Business Pledge launched Monday by the Obama Administration, Vance said.
According to the White House, the pledge represents a call-to-action for all members of the private sector to improve their communities by eliminating barriers for those with a criminal record and creating a pathway for a second chance.
Many employers require job applicants to disclose conviction and arrest history on the initial job application. Often, when that disclosure is made, the applicant is immediately removed from further consideration for employment. The national “Ban the Box” campaign encourages governments and private employers to delay consideration of offense history within the hiring process.
There is strong data showing that ex-offenders who find employment are half as likely to reoffend as those who struggle to find a job, Vance said.
“For employers who believe it is unsafe to hire former inmates, there is also ample data showing that employed ex-offenders have better retention rates, better performance metrics, and pose no greater risk within the workplace than those without a conviction history,” she said.
In Alabama, more than 30,000 people are in prison or jail. The vast majority of those inmates – about 95 percent – will eventually return to the community. In Jefferson County alone, about 2,000 people return from prison annually.
“People who have completed a prison sentence for a crime they committed, should have a fair chance at success after paying their debt to society,” Vance said. “When they cannot get a driver's license or a job, they and the communities they live in are doomed to a cycle of repeated crime. Strong data shows that removing barriers to success and making it possible to find housing and transportation, and to train for and find employment reduces the likelihood that ex-offenders will commit new crimes and return to prison. In other words, we can make communities safer, families stronger and prisons less crowded and expensive for the taxpayer,” she said.
The U.S. Attorney’s Office will sponsor several educational events the week of April 25-29, which the Department of Justice has designated as National Reentry Week. Events in Birmingham will include a reentry simulation on Tuesday, April 26, and a roundtable conversation with ex-offenders at The Dannon Project on Thursday, April 28.
The reentry simulation, which will be presented at the National Alumni House on the University of Alabama at Birmingham campus, is designed to present an understanding of the many day-to-day obstacles someone coming out of prison faces in seeking a job, housing, or transportation. The Dannon Project is a non-profit organization that provides services to people coming out of prison, including counseling and job training. It also works with employers to find appropriate job placements and provides support to both employer and employee to encourage success on the job.
Businesses interested in information about hiri wh_fair_chance_business_pledge.pdfng ex-offenders, or for information about the Reentry Week events, call Assistant U.S. Attorney Jeremy Sherer, the office’s reentry coordinator, at 205-244-2019.
Owner of Pizza Franchises Acknowledges Submitting False Tax Return that Omitted Income from Skimmed CashRead the Press Release
BIRMINGHAM – Federal prosecutors on Thursday charged the owner and operator of dozens of pizza franchise restaurants in Alabama, Georgia and Louisiana for filing a false federal income tax return that did not include money he skimmed from his Little Caesars restaurants, announced U.S. Attorney Joyce White Vance and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
The U.S. Attorney’s Office charged RAMON S. ARIAS, 64, of Mountain Brook, with one count of making a false tax return. In a plea agreement reached between Arias and the government, he agrees to plead guilty to the charge, pay $224,290 in restitution to the IRS, and to cooperate with the IRS Civil Division in filing accurate amended tax returns for 2010 through 2013.
Arias owned, controlled and operated 26 to 45 Little Caesars franchises in the three states from 2010 through 2013, according to the plea agreement. The stores were incorporated under various business names, with other individuals owning percentages of the businesses, but Arias was primarily responsible for running the businesses and managing the finances, the plea agreement states.
It says Arias operated a scheme to divert cash from the gross receipts of some of the businesses, primarily two to four of the restaurants in Alabama, during the four years. Arias used a certified public accountant to prepare his business and individual income tax returns, but did not provide the accountant with any information about the skimmed money, according to the plea agreement.
The amounts of skimmed cash under-reported on Arias’ individual returns for 2010, 2011, 2012 and 2013 were $238,664, $265,413, $312,955 and $287,023, respectively, according to the plea agreement.
The maximum penalty for making a false tax return is three years in prison and a $250,000 fine.
IRS-CI investigated the case, which Assistant U.S. Attorney J. Patton Meadows is prosecuting.
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Jasper Pain Clinic Physician Sentenced to Nearly Three Years in Prison for Illegally Dispensing NarcoticsRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Vestavia Hills physician and owner of a Jasper neurology and pain clinic to nearly three years in prison for dispensing narcotic painkillers without a legitimate medical reason, announced U.S. Attorney Joyce White Vance, Drug Enforcement Administration Assistant Special Agent in Charge Clay A. Morris and Alabama Law Enforcement Agency Sec. Stan Stabler.
U.S. District Judge L. Scott Coogler sentenced Dr. MUHAMMAD WASIM ALI, 51, on 10 counts of unlawfully distributing controlled substances "outside the scope of professional practice and not for a legitimate medical purpose" to three people working undercover with law enforcement. Ali pleaded guilty to the charges in November.
The judge sentenced Ali to 30 months in prison, ordered him to forfeit $2,450 to the government as proceeds of illegal activity, and fined him $85,000. The judge also placed him on supervised release for three years following his prison term. During the supervised release, he cannot work in any medical facility that handles or prescribes controlled substances. In the course of the investigation and prosecution, Ali surrendered both his DEA Controlled Substances Registration, which enabled him to write prescriptions, as well as his medical license. The 30-month sentence, fine and forfeiture are in accord with a binding plea agreement reached between the government and Ali. Ali must report to prison in 30 days.
Ali practiced medicine at the Walker Rural Health Care/Jasper Neurological Care clinic. According to his guilty plea, Ali dispensed 1,100 oxycodone pills to three undercover officers between August 2014 and November 2014 without conducting acceptable medical examinations or requesting and/or reviewing medical records. Ali’s medical files for the three individuals listed multiple falsified examinations and multiple falsified and baseless diagnoses.
“Abuse of prescription opiates, which contributes to heroin addiction, is a nationwide problem that has resulted in epidemic overdose death rates,” Vance said. “Alabama leads the nation in the number of per capita prescriptions for opioid painkillers, a troublesome distinction. While responsible and legitimate painkiller prescribing is an important part of the practice of medicine, doctors who use their prescription pads to provide opiates without legitimate medical reason are illegally dealing drugs,” she said. “My office and our law enforcement partners are committed to shutting that down.”
“The use, abuse, distribution and diversion of opiate pharmaceutical drugs are at epidemic levels in Alabama and across the United States,” Morris said. “The doctors who abandon their Hippocratic Oath and distribute highly addictive pain medicine without a legitimate medical purpose hurt our communities and ruin the great reputation of the many doctors who work tirelessly to help others,” he said. “Today’s sentence should send a clear message to those who illegally distribute drugs. DEA and our law enforcement partners will work relentlessly to protect our communities, citizens and neighborhoods against illegal drug distribution that leads to drug addiction and ruined lives.”
“The illegal distribution and abuse of opiate drugs continues to be a great concern in Alabama,” Stabler said. “This growing problem impacts the lives of many families -- regardless of their demographics. State Bureau of Investigation narcotics agents worked closely with our federal partners during the course of this investigation,” he said. “We will continue to work as a team and collaborate with federal, state, county and municipal law enforcement agencies to fight the unlawful distribution of illegal drugs.”
Ali was one of three Birmingham-area physicians charged last year as part of DEA's Operation Pilluted in Alabama, Arkansas, Louisiana and Mississippi, which focused on reducing trafficking and abuse of pharmaceuticals.
The DEA, Internal Revenue Service, Criminal Investigation, and the Alabama Law Enforcement Agency investigated the case, which Assistant U.S. Attorneys Chinelo Diké-Minor and Robin Beardsley Mark prosecuted.
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Justice Department Warns Public to Beware of Fraudulent Tax Return Preparers and Tax Scheme Promoters, Urges Taxpayers to Pay Federal Income Taxes on Time and in FullRead the Press Release
Washington – With tax season in full swing, the Justice Department urged the public today to avoid dishonest tax-return preparers who fleece their customers and illegally drain the U.S. Treasury. Noting that every taxpayer is ultimately responsible for the contents of his or her own return, Acting Assistant Attorney General Caroline D. Ciraolo of the Tax Division also warned the public to be wary of anyone who guarantees a refund or who claims to sell a sure-fire way to reduce your taxes.
Dishonest Return Preparers Cost Their Clients and the United States
U.S. taxpayers filed approximately 150 million returns in 2014. According to statistics available from the Treasury Inspector General for Tax Administration, the Internal Revenue Service (IRS) identified more than 2.1 million of those returns that claimed fraudulent refunds totaling more than $15.7 billion. As in past years, the IRS has designated return preparer fraud as one of 2016’s “Dirty Dozen” tax scams to avoid during return filing season. In 2015, the Tax Division permanently shut down more than 35 fraudulent tax-return preparers located all over the United States. The defendants in those cases spanned the spectrum from large-scale return preparation franchises to small, independent return preparers.
“Every year, thousands of federal income tax returns are prepared by people who care much more about making a quick buck than about preparing accurate returns,” said Acting Assistant Attorney General Ciraolo. “Most tax return preparers are honest. But some preparers who charge clients a percentage of their tax refund intentionally prepare false returns to increase their clients’ refund, and thus their own fees. Likewise, some preparers who charge by the form will intentionally prepare incorrect forms that their clients don’t need in order to increase their compensation. Taxpayers might think that they’re getting a good deal on their taxes, or that as long as someone else prepares the return, they’re not responsible. They’re wrong. Taxpayers who have their return prepared incorrectly are required to pay the tax they owe, or pay back the refund they weren’t entitled to get. These clients might also owe interest and penalties, which can be substantial. Fortunately, there are red flags that taxpayers can look for and avoid when choosing a return preparer.”
Your refund should never be deposited directly into a preparer’s bank account.
In United States v. Elton L. Barnes, No. 2:14-cv-05621 (C.D. Cal.), the court barred a return preparer who caused other people’s tax returns to be deposited to bank accounts in his name.
Never sign a blank return or a blank form, or sign a return or a form without reading it first.
By law, a return preparer must provide a client with a completed copy of the return no later than the time the customer is asked to sign the return. In United States v. Syed N. Ahmed et al., No. 2:15-cv-11461 (E.D. Mich.), the United States alleged that the defendants’ Liberty Tax Service franchises asked customers to sign blank forms that stated that the customers had non-existent businesses, which were then used to maximize the customer’s refund. Although the defendants did not admit to the allegations in the complaint, they agreed to an order from a federal court permanently shutting down the stores.
Don’t use a preparer who mischaracterizes your expenses.
In United States v. Lawrence Preston Siegel, No. 3:15-00643 (S.D. Cal.), the defendant prepared returns that falsely characterized personal purchases as deductible expenses. For instance, one customer’s return deducted purchases at Tiffany & Co., Louis Vuitton, and Royal Caribbean Cruise Lines as “medical expenses.” The court permanently barred Siegel from preparing tax returns or providing tax advice for compensation.
Do not use a preparer who fabricates business expenses or deductions, or who claims bogus credits to which you are not entitled, such as the Earned Income Tax Credit, the child care credit, or the education credit.
One of the most common dishonest return-preparation practices is to prepare returns that include non-existent businesses, sometimes based on a client’s hobbies. In 2015, for example, federal courts shut down tax return preparers in Kahului, Hawaii; Appleton, Wisconsin; and Chicago, Illinois, who fabricated supposed “businesses” for their clients. Federal courts have also ordered return preparers in Miami, Florida, and Memphis, Tennessee to submit to third-party monitoring at their own expense to make sure they are not preparing returns with fraudulent “businesses.”
Some other fraudulent schemes and practices that have been stopped through injunction orders entered by federal courts throughout the country include:
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Fabricating fake Form W-2 (Wage and Tax Statement) information;
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Claiming bogus education and first-time homebuyer credits;
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Claiming phony child and dependent care credits or residential energy credits;
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Claiming fraudulent fuel tax credits;
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Falsely exempting foreign earned income;
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Inflating unreimbursed employee business expense deductions; and
- Fraudulently inflating or decreasing a client’s income or deductions to maximize the Earned Income Tax Credit
In January 2016, a federal court in Orlando, Florida entered a preliminary injunction against Jason Stinson, who ran a series of tax return preparer storefronts under the name “Nation Tax Services,” requiring him to shut down the stores pending resolution of the case. As part of its explanation for why it was ordering Stinson’s stores to shut down in the middle of the case, the court said that Stinson’s business “exposes . . . [his] customers to individual tax liability. Both the Government and Stinson’s customers will suffer irreparable harm if an injunction is not granted. Moreover, it is in the public’s best interest to protect vulnerable customers from the inaccurate preparation of their taxes, not to deplete Government resources, and to maintain the public trust in the tax system.” The case is United States v. Jason Stinson et al., No. 6:14-cv-1534 (M.D. Fla.).
The IRS advises taxpayers who ask a tax professional to prepare their return to be careful in the professional they select. The IRS offers some basic tips and guidelines to assist taxpayers in choosing a reputable tax professional and is also offering taxpayers a number of instructional YouTube videos to help them prepare their own taxes for the upcoming filing season. Several options, including free assistance with preparation and electronic filing for the elderly and individuals making $50,000 or less, are available to help taxpayers prepare for the current tax season and receive their refunds as easily as possible.
Tax Division Sues to Shut Down Promoters of Fraudulent Tax Schemes
In addition to return preparers who deliberately falsify returns, the Tax Division targets those who peddle schemes that purportedly reduce taxes—but in fact rely on false statements or financial sleight-of-hand.
In United States v. Wayne Reeves et al., No. 12-cv-1916 (D. Nev.), the court found that defendants Wayne Reeves and Diane Vaoga advised their clients “to set up sham trusts and have their wages directed into accounts for those trusts as a way to improperly reduce their tax liability.” They advised their clients that the income the clients received from the trusts was “nontaxable and did not need to be reported on tax returns.” The court further found that Reeves prepared tax returns that “willfully attempted to understate his clients’ correct tax liabilities,” and that Vaoga assisted him in doing so. In January 2015, the court permanently barred both Reeves and Vaoga from preparing returns or giving tax advice to others.
In November 2015, the Tax Division sued to shut down an alleged tax scheme based on a purported solar energy generation facility in Utah. The case is United States v. RaPower-3 LLC et al., No. 2:15-cv-00828 (D. Utah). The United States’ complaint alleges that the defendants purportedly sell “solar thermal lenses” to customers, and tell their customers that they are entitled to claim depreciation expenses and the solar energy credit for the lenses—even though the defendants allegedly know or have reason to know that their customers are not in the business of producing and selling solar energy and that the defendants’ purported solar energy facilities do not actually produce solar energy in a manner that meets the Internal Revenue Code’s requirements for claiming the credit.
And in the same month, in United States v. James Tarpey et al., No. 2:15-cv-00072 (D. Mont.), the Tax Division sued to shut down an alleged timeshare donation scheme. According to the United States’ complaint in that case, the defendants have their customers give rights in a timeshare to “Donate for a Cause,” a tax-exempt entity operated by Tarpey. The complaint alleges that the customers receive an appraisal that grossly overvalues the donated timeshare rights and use that appraisal to claim a large charitable donation deduction, even when the true market value of the timeshare right is a small fraction of the appraised value.
“The Tax Division is committed to stopping those who promote fraudulent tax shelters and other schemes or who prepare false returns,” Acting Assistant Attorney General Ciraolo said. “Along with our colleagues at the IRS, we will find dishonest preparers and fraudulent tax-scheme promoters and work to shut them down. We will hold accountable those who willfully assist taxpayers to file false returns. And in appropriate cases, we will prosecute them. But everyone can help stop fraud and protect our public finances. Pay attention to your tax return and make sure that it’s right. If you think that a tax return preparer is deliberately preparing incorrect returns, or you suspect someone is selling a phony tax-loss scheme, report that person to the IRS.”
The IRS website has information about how to report a dishonest return preparer, as well as information about how to report other types of tax fraud. The Justice Department’s website has a list of tax-return preparers and tax-scheme promoters whom the courts have shut down.
In addition to the civil enforcement through injunctions that stop their illegal actions, many return preparers and promoters also face prosecution. Examples of those investigations can be found for fiscal years 2014 and 2015.
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Demopolis Woman Sentenced to Four Years in Prison for Tax Evasion and Filing False ReturnsRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Demopolis woman to nearly four years in prison for filing more than $250,000 in false tax returns, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Internal Revenue Service, Criminal Investigation, Special Agent in Charge Veronica Hyman-Pillot.
EUNICE F. PLUMMER, 36, pleaded guilty in October before U.S. District Judge L. Scott Coogler to three counts of attempting to evade or defeat a large portion of the income tax she owed for 2011, 2012 and 2013. She also pleaded guilty to eight counts of filing false tax returns for other people between 2011 and 2013. Judge Coogler sentenced her to three years and 10 months in prison and ordered her immediately into the custody of U.S. Marshals.
According to the indictment and her plea agreement with the government, Plummer operated a tax preparation business in Birmingham, called Plummer Tax Services, from 2010-2014. During that time, she routinely inflated the amount of tax refunds her customers would receive by using fraudulent information —including wage amounts, child and dependent care expenses, education credits and business losses – on tax returns. Plummer also substantially underreported her income from operating Plummer Tax Services. Between the taxes she failed to pay on her own behalf and the boosted refund amounts from the fraudulent tax returns she filed for clients, Plummer cheated the IRS out of more than $250,000.
In January and February this year, while Plummer was on bond awaiting sentencing following her guilty plea, she reactivated her tax business under a new name, Unique Tax Services, at the same location where she had operated Plummer Tax Services, and filed more tax returns that were fraudulent. Judge Coogler told Plummer at sentencing that by continuing to file fraudulent tax returns after pleading guilty to that conduct, she showed “disdain and disrespect” to the court and acted like “a thief” and “a con artist.”
The FBI and IRS-CI investigated the case, which Assistant U.S. Attorney Xavier O. Carter Sr. and Amanda Wick prosecuted.
Missouri Woman Charged in Carjacking Conspiracy for Multi-State Crime SpreeRead the Press Release
BIRMINGHAM – A federal grand jury today returned conspiracy and armed carjacking charges against the surviving member of a Missouri couple that was sought for crimes in four states earlier this year before being apprehended in a hail of gunfire in Florida in February, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
An eight-count indictment filed in U.S. District Court charges BRITTANY NICOLE HARPER, 30, of Joplin, Mo., with one count of conspiracy to transport a stolen vehicle across state lines, two counts of transporting a stolen vehicle across state lines, three counts of carjacking and two counts of brandishing a gun during a crime of violence.
The indictment states that the purpose of the conspiracy was for Harper and “her co-conspirator to unlawfully obtain vehicles, by whatever means necessary,” including acts of violence, and then to use the stolen vehicles as transportation between various states. The indictment refers throughout to Harper’s co-conspirator, but does not name him.
Harper was arrested in Milton, Fla., on Feb. 5, after a face-off with police in which her co-conspirator was shot and killed. She faces state charges in Florida.
“Anyone who chooses to move from state to state, repeatedly and violently taking whatever they want along the way and threatening the lives of innocent people, has to know that the criminal rampage will not last long,” Vance said. “Law enforcement will catch up to them.”
The indictment describes a 10-day, four-state crime spree by Harper and her male companion that began in Webb City, Mo., on Jan. 26, when the couple took a 2009 Cadillac on a test drive from a dealership and never returned. Highlights of the crime spree, as outlined in the indictment, are as follows:
Before arriving in Alabama, the couple burglarized a home in Missouri, where they parked the stolen Cadillac in the garage and stole a 2007 Chevrolet Trailblazer parked at the home.
The couple’s first crime in Alabama is listed as a theft at the Walmart in Bessemer on Jan. 30, before the couple drove the Trailblazer to Tuscaloosa, where they forced a motel clerk at gunpoint into the backseat of the 2011 Volkswagen Jetta he had driven to work. Harper and her companion drove the Jetta to Hoover, where they tried, unsuccessfully, on Jan. 31, to take a Camaro from a McDonald’s employee, and then released the motel clerk in Vestavia Hills.
Soon after releasing the clerk, Harper’s companion entered a home on Monte Vista Drive in Vestavia Hills, where he encountered one of the home owners and his minor children. The co-conspirator put a gun to the man’s neck and began forcing him toward the garage, but the man got free and went for help. The co-conspirator then forced the man’s wife at gunpoint into the homeowners’ 2010 Ford Edge and drove away.
Harper and her companion released the woman near the Grandview Medical Center on Cahaba River Road in Birmingham, and then drove the stolen Ford Edge to Perry County, Ga.
The indictment lists other crimes in Georgia and Florida before Harper’s arrest on Feb. 5 following a high-speed chase through neighborhoods in Milton, Fla., after police confronted the couple.
The other crimes listed as part of the conspiracy, but not individually charged in the indictment, include the robbery and kidnapping of a convenience store clerk in Perry, Ga., on Feb. 1, the robbery of Alvin’s Island beach shop in Destin, Fla., on Feb. 3, and the robbery of a shoe store and a home invasion and carjacking, all in Pensacola, Fla., on Feb. 4.
The FBI investigated the case, which Assistant U.S. Attorneys John B. Felton and Erica W. Barnes are prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Federal Grand Jury Indicts St. Clair County Man for Receiving, Distributing, and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a St. Clair County man on multiple charges of receipt, distribution and possession of child pornography, announced U.S. Attorney Joyce White Vance, Alabama Law Enforcement Agency Secretary Stan Stabler and FBI Special Agent in Charge Roger C. Stanton.
A three-count indictment filed in U.S. District Court charges DANNY C. OLIVER Sr., 62, with receiving, distributing and possessing child pornography between 2014 and 2015.
Because Oliver was previously convicted of sexual abuse in the first degree in the State of Alabama, the maximum penalty for receiving and distributing child pornography is 40 years in prison and a $250,000 fine, and the maximum penalty for possessing child pornography is 20 years in prison and a $250,000 fine.
ALEA and the FBI investigated the case, which Assistant U.S. Attorney Jacquelyn Hutzell is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Cullman County Man Indicted for Producing Child Pornography Involving Multiple VictimsRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Cullman County man, on charges related to the production of child pornography involving four minor victims, announced U.S. Attorney Joyce White Vance and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
GREGORY JEROME LEE, 53, was indicted on four counts of production of child pornography, one count of conspiracy to advertise child pornography and one count of conspiracy to distribute and receive child pornography.
According to the indictment, from September 1996 through December 2004, Lee used, persuaded, coerced and enticed minors to engage in sexually explicit conduct in order to produce images of that conduct. Between September 1996 and August 2007, Lee conspired with other individuals to distribute and receive child pornography through a variety of means, including the Internet.
The U.S. Postal Inspection Service is investigating the case. Assistant U.S. Attorney Jacquelyn Hutzell and Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section are prosecuting the case.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent until and unless proven guilty. Members of the public who may have information related to this matter should call the USPIS Birmingham Office at (205) 326-2909.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Birmingham Man Indicted for Preparing False Tax Returns and Intimidating WitnessesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Birmingham man for preparing false income tax returns and for intimidating witnesses who the Internal Revenue Service contacted to question about returns he had prepared, announced U.S. Attorney Joyce White Vance and IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
An 11-count indictment filed in U.S. District Court charges DONALD E. STEELE, 41, with seven counts of aiding in the preparation of a false federal income tax return in 2010 or 2011, and with four counts of witness tampering in 2011. At the time, Steele operated Max Tax, a Birmingham tax return preparation business owned by his wife.
Steele is charged with making false claims and fabricating tax deductions on federal tax returns for five different taxpayers. Among the charges is that, in 2011, Steele prepared a 2010 tax return for “H.N.D,” fraudulently claiming an exemption for her disabled dependent brother, identified as “K.L.,” when Steele knew that K.L. was H.N.D.’s boyfriend and not disabled. Steele also claimed a $1,000 “American opportunity” tax credit based on a false claim that K.L. was a student and had incurred $4,000 in education expenses during the 2010 tax year.
In the witness-tampering counts, Steele is charged with calling K.L. about seven or eight times after learning IRS agents were inquiring about the preparation of H.N.D.’s 2010 tax return and telling K.L. to lie to the agents and tell them that Steele’s wife had prepared H.N.D.’s return.
Two other counts of the indictment charge Steele with preparing returns for “A.E.T.” for the calendar years 2009 and 2010, falsely claiming business losses for the taxpayer when she was not self-employed in either year and did not provide Steele any information pertaining to self-employment. Steele claimed a net business loss of $12,049 for A.E.T. in 2009 and a net loss of $11,938 in 2010, according to the indictment.
In another witness tampering count, Steel is charged with contacting a former tax preparer at Max Tax and telling her that if IRS agents contacted her, she should withhold information and tell them that he did not prepare any tax returns, that his wife prepared and transmitted the returns.
The maximum penalty for aiding in the preparation of a false federal income tax return is three years in prison and a $250,000 fine. The maximum penalty for witness tampering is 20 years in prison and a $250,000 fine.
IRS-CI investigated the case, which Assistant U.S. Attorney J. Patton Meadows is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Alabama Man Indicted for Producing Child Pornography Involving Multiple VictimsRead the Press Release
An Alabama man was indicted today by a federal grand jury in Birmingham, Alabama, on charges related to the production of child pornography involving four minor victims, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Joyce White Vance of the Northern District of Alabama.
Gregory Jerome Lee, 53, formerly of Cullman County, Alabama, was indicted on four counts of production of child pornography, one count of conspiracy to advertise child pornography and one count of conspiracy to distribute and receive child pornography.
According to the indictment, from September 1996 through December 2004, Lee used, persuaded, coerced and enticed minors to engage in sexually explicit conduct in order to produce images of that conduct. Between September 1996 and August 2007, Lee conspired with other individuals to distribute and receive child pornography through a variety of means, including the Internet.
The U.S. Postal Inspection Service (USPIS) is investigating the case. Trial Attorney Amy E. Larson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jacquelyn Hutzell of the Northern District of Alabama are prosecuting the case.
The charges and allegations contained in an indictment are merely accusations. The defendant is presumed innocent unless and until proven guilty. Members of the public who may have information related to this matter should call the USPIS Birmingham Office at (205) 326-2909.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Alabama’s First Day Reporting Center for Ex-offenders Open in BirminghamRead the Press Release
BIRMINGHAM – The Alabama Board of Pardons and Paroles hosted an open house Monday at the state’s first Day Reporting Center in Birmingham. The ceremony showcased the probation and parole officers and other staff, along with treatment providers and community partners who will make the program possible, announced Center Director Benita Daugharty and U.S. Attorney Joyce White Vance.
The non-residential, three-phase reporting center program will offer medium- to high-risk probationers and parolees in the Jefferson County area access to services, including targeted drug treatment, substance abuse intervention and rehabilitation, cognitive behavioral therapy, educational training, and assistance with employment. The program will require participants to perform community service and will foster opportunities for participants to positively transform criminal attitudes, behaviors, values and beliefs.
The program is made possible by a $687,176 Department of Justice, Bureau of Justice Assistance grant.
The DRC is an evidence-based program, modeled after the State of Georgia’s network of day reporting centers serving both urban and rural areas of the state. Alabama’s goal is to expand the program into a network of centers strategically placed to serve those areas of the state that would receive the most benefit. Mobile will be home to Alabama’s next DRC.
Pardons and Paroles Executive Director Phil Bryant stated his strong support for the reentry-minded endeavor. “The dedication of leadership at Pardons and Paroles, among DRC staff, local stakeholders and community partners, as well that of U.S. Attorney for the Northern District of Alabama, Joyce Vance, have all been critical for getting this program up and running,” he said. “Ongoing support will continue to be critical to the success of this program, which is currently serving its first 20 participants. We look forward to measuring the success of this program with help from our research partner and technical assistance provider,” Bryant said.
Board of Pardons and Paroles Chairman Cliff Walker also voiced his support for programming like the DRC to help strengthen the reentry process for offenders being paroled in Alabama. He likened the reentry process in Alabama to a boat full of holes that cannot rise with the tide until the holes – such as lack of employment opportunities, education, and family support -- can be plugged. He championed the DRC as a program that is geared towards filling those holes.
“The evidence that led Alabama to adopt prison reform suggests that when money saved by reducing the number of people in state prison is reinvested in community services to help those people successfully reenter their communities, we can reduce crime while saving on the cost of running our prison system,” Vance said. “The day reporting center in north Birmingham is an outstanding example of a program that seeks to reduce crime through prevention, enforcement and reentry services,” she said. “The center will follow best practices that have been proven in other states to reduce recidivism among ex-offenders.”
Talladega Man Sentenced to 55 Years for Aggravated Sexual Abuse of a ChildRead the Press Release
BIRMINGHAM – U.S. District Judge Abdul K. Kallon today sentenced a truck driver from Talladega to 55 years in prison and a lifetime term of supervised release for his aggravated sexual abuse of a child under age 12, announced U.S. Attorney Joyce White Vance and Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
A federal jury convicted RICK LEE EVANS, 43, on Dec. 11, 2015, for the aggravated sexual abuse of a child.
According to evidence introduced at trial, Evans, a former U.S. Army soldier, and his then-wife, a Department of Defense employee, were living in Germany when they were asked to take temporary custody of a five-year-old child whose parents were deployed to Iraq with the U.S. Army. Trial evidence showed that from May 2007 to December 2008, while the child lived with Evans, he sexually abused the child on multiple occasions.
Assistant U.S. Attorney Jacquelyn Hutzell of the Northern District of Alabama and Trial Attorney Austin M. Berry of the DOJ Criminal Division’s Child Exploitation and Obscenity Section prosecuted the case. U.S. Army Criminal Investigations Division and the FBI’s Birmingham, Alabama, Division investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Alabama Man Sentenced to 55 Years for Aggravated Sexual Abuse of a ChildRead the Press Release
An Alabama man was sentenced today to 660 months in prison and a lifetime term of supervised release for his aggravated sexual abuse of a child under the age of 12, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Joyce White Vance of the Northern District of Alabama.
Rick Lee Evans, 43, a truck driver from Talladega, Alabama, was convicted by a federal jury on Dec. 11, 2015, of one count of aggravated sexual abuse of a child under 12.
According to the evidence introduced at trial, Evans, a former U.S. Army soldier, and his then-wife, a Department of Defense employee, were residing in Germany when they were asked to take temporary custody of a five-year-old child whose parents were deployed to Iraq with the U.S. Army. Trial evidence showed that from May 2007 to December 2008, while the child lived with Evans, he sexually abused the child on multiple occasions.
Trial Attorney Austin M. Berry of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Jacquelyn Hutzell of the Northern District of Alabama prosecuted the case. U.S. Army Criminal Investigations Division and the FBI’s Birmingham, Alabama, Division investigated the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Justice Department Settles Disability-based Housing Discrimination Lawsuit with Owners and Developers of 71 Apartment Complexes in Alabama, Georgia, North Carolina and TennesseeRead the Press Release
WASHINGTON – The Justice Department announced today that the owners and developers of 71 multifamily housing complexes in four states with more than 2,500 ground-floor units have agreed to pay $350,000 to settle claims that they violated the Fair Housing Act and the Americans with Disabilities Act by building apartment complexes that were inaccessible to persons with disabilities. As part of the settlement, the companies also agreed to make substantial retrofits to remove accessibility barriers.
Under the terms of the agreement, which was approved today by the U.S. District Court for the Northern District of Alabama, Alabama-based developers Allan Rappuhn, Gateway Construction Corporation, Gateway Development Corporation and other affiliated companies must take extensive actions to make the complexes accessible to persons with disabilities. These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb walkways to allow persons with disabilities to access units from sidewalks and parking areas, replacing cabinets in bathrooms to provide sufficient room for wheelchair users and removing accessibility barriers in public and common use areas at the complexes. The defendants will pay $300,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations and $50,000 as a civil penalty.
“Our country prohibits discrimination because of an individual’s disability, and our laws guarantee all people the right to access housing of their choice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue aggressively enforcing the Fair Housing Act and the Americans with Disabilities Act to ensure that residential multi-family housing is built with the required accessible features.”
“Because of the Fair Housing Act and the Americans with Disabilities Act, persons with disabilities, like all Americans, have the right to live in housing free of discrimination” said U.S. Attorney Joyce White Vance. “My office remains committed to aggressively protecting the housing and other rights of individuals with disabilities.”
The agreement also requires the defendants to receive training about the Fair Housing Act and Americans with Disabilities Act to ensure that all future multifamily housing construction complies with these laws and to provide periodic reports to the Justice Department.
Those who are entitled to share in the settlement fund will be identified through a process established in the settlement. Persons who believe they may have been harmed by the inaccessible conditions at any of these properties, either when they or someone associated with them lived there or considered living there, should contact the Justice Department toll-free at 1-800-896-7743 mailbox #2, or e-mail the Justice Department at [email protected].
The 71 complexes at issue, 69 of which were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program or other federal programs, are:
- Alexander Terrace Apartments, Moulton, Alabama
- Americus Gardens Apartments, Americus, Georgia
- Applegate Apartments, Florence, Alabama
- Autumn Ridge Apartments, Jacksonville, North Carolina
- Bailey Springs Apartments, Lincolnton, North Carolina
- Belle Isle Apartments, Robertsdale, Alabama
- Blue Springs Apartments, Jacksonville, North Carolina
- Bradbury Apartments, Newton, North Carolina
- Brentwood Landing Apartments, Prattville, Alabama
- Brentwood Landing II Apartments, Prattville
- Brookstone Village Apartments, Jacksonville, Alabama
- Canebreak Apartments, Wilmington, North Carolina
- Cedar Glades Apartments, Shelbyville, Tennessee
- Charleston Square Apartments, Troy, Alabama
- Cherry Ridge Independent Living Apartments, Birmingham, Alabama
- Cottage Hill Pointe Apartments, Mobile, Alabama
- Double Creek Apartments, Florence
- Eagle Pointe Apartments, Madison, Alabama
- Evergreen Village Apartments, Cedartown, Georgia
- Glencoe Trace Apartments, Griffin, Georgia
- Hamilton Place Apartments, Millbrook, Alabama
- Harbor Square Apartments, Decatur, Alabama
- Heatherwood Apartments, Alexander City, Alabama
- Heritage Vista Apartments, Milledgeville, Georgia
- Heron Lake Apartments, Valdosta, Georgia
- Heron Lake II Apartments, Valdosta
- Hickory Run Apartments, Jacksonville, Alabama
- Hickory Run II Apartments, Jacksonville, Alabama
- Highland Park Senior Village, Douglasville, Georgia
- Hunter Pointe Apartments, Centreville, Alabama
- Ivy Pointe Apartments, Tuscumbia, Alabama
- Ivy Pointe II Apartments, Tuscumbia, Alabama
- Kirby Creek Apartments, Cairo, Georgia
- Kirkwood Trail Apartments, Cedartown
- Lakeshore Crossing Apartments, Huntsville, Alabama
- Lenox Station Apartments, Rockingham, North Carolina
- Liberty Square Apartments, Montgomery, Alabama
- Mallard Lake Apartments, LaGrange, Georgia
- Maple Square Apartments, Jefferson, Georgia
- Meadowview Apartments, Greenville, Alabama
- Oakland Mill Apartments, Lincolnton, North Carolina
- Oleander Park Apartments, Mobile
- Orchard Park Apartments, Hayneville, Alabama
- Palladian Apartments, Mobile
- Palladian II Apartments, Mobile
- Palladian-Fairhope Apartments, Fairhope, Alabama
- Palladian-Jubilee Apartments, Daphne, Alabama
- Parkwood Apartments, Pell City, Alabama
- Pebble Creek Apartments, Butler, Alabama
- Pinewood Apartments, Pooler, Georgia
- Powell Place Apartments, Barnesville, Georgia
- Preston Place Apartments, Quitman, Georgia
- Shadowood Apartments, Stevenson, Alabama
- Shellbrooke Pointe Apartments, Fairhope, Alabama
- Sheppard Station Apartments, Pooler, Georgia
- Skyline Trace Apartments, Monroe, Georgia
- Sterling Oaks Apartments, Spindale, North Carolina
- Stoney Creek Apartments, Laurinburg, North Carolina
- Stony Ridge Apartments, Hogansville, Georgia
- Sullivan Village Apartments, Tuscumbia, Alabama
- The Park at Rocky Ridge Apartments, Birmingham
- Timberfalls Apartments, Thomaston, Georgia
- Valley Ridge Apartments, LaGrange, Georgia
- Village at Wedgewood Apartments, Cairo
- Villas on Forsyth Apartments, Barnesville, Georgia
- Waring Apartments, Waycross, Georgia
- Waring II Apartments, Waycross
- Waterford Farms Apartments, Arab, Alabama
- Wincliff Apartments, Gainesville, Georgia
- Woodlawn Terrace Apartments, Valdosta
- Westfork Apartments, Jasper, Alabama
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities. Enacted in 1990, the Americans with Disabilities Act requires, among other things, that places of public accommodation, such as rental offices at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Justice Department Settles Disability-Based Housing Discrimination Lawsuit with Owners and Developers of 71 Apartment Complexes in Alabama, Georgia, North Carolina and TennesseeRead the Press Release
The Justice Department announced today that the owners and developers of 71 multi-family housing complexes in four states with more than 2,500 ground-floor units have agreed to pay $350,000 to settle claims that they violated the Fair Housing Act and the Americans with Disabilities Act by building apartment complexes that were inaccessible to persons with disabilities. As part of the settlement, the companies also agreed to make substantial retrofits to remove accessibility barriers.
Under the terms of the agreement, which was approved today by the U.S. District Court for the Northern District of Alabama, Alabama-based developers Allan Rappuhn, Gateway Construction Corporation, Gateway Development Corporation and other affiliated companies must take extensive actions to make the complexes accessible to persons with disabilities. These corrective actions include replacing excessively sloped portions of sidewalks, installing properly sloped curb walkways to allow persons with disabilities to access units from sidewalks and parking areas, replacing cabinets in bathrooms to provide sufficient room for wheelchair users and removing accessibility barriers in public and common use areas at the complexes. The defendants will pay $300,000 to establish a settlement fund for the purpose of compensating individuals with disabilities who have been impacted by the accessibility violations and $50,000 as a civil penalty.
“Our country prohibits discrimination because of an individual’s disability, and our laws guarantee all people the right to access housing of their choice,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We will continue aggressively enforcing the Fair Housing Act and the Americans with Disabilities Act to ensure that residential multi-family housing is built with the required accessible features.”
“Because of the Fair Housing Act and the Americans with Disabilities Act, persons with disabilities, like all Americans, have the right to live in housing free of discrimination” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “My office remains committed to aggressively protecting the housing and other rights of individuals with disabilities.”
The agreement also requires the defendants to receive training about the Fair Housing Act and Americans with Disabilities Act to ensure that all future multifamily housing construction complies with these laws and to provide periodic reports to the Justice Department.
Those who are entitled to share in the settlement fund will be identified through a process established in the settlement. Persons who believe they may have been harmed by the inaccessible conditions at any of these properties, either when they or someone associated with them lived there or considered living there, should contact the Justice Department toll-free at 1-800-896-7743 mailbox #2, or e-mail the Justice Department at [email protected].
The 71 complexes at issue, 69 of which were built with financial assistance from the federal government’s Low-Income Housing Tax Credit program or other federal programs, are:
- Alexander Terrace Apartments, Moulton, Alabama
- Americus Gardens Apartments, Americus, Georgia
- Applegate Apartments, Florence, Alabama
- Autumn Ridge Apartments, Jacksonville, North Carolina
- Bailey Springs Apartments, Lincolnton, North Carolina
- Belle Isle Apartments, Robertsdale, Alabama
- Blue Springs Apartments, Jacksonville, North Carolina
- Bradbury Apartments, Newton, North Carolina
- Brentwood Landing Apartments, Prattville, Alabama
- Brentwood Landing II Apartments, Prattville
- Brookstone Village Apartments, Jacksonville, Alabama
- Canebreak Apartments, Wilmington, North Carolina
- Cedar Glades Apartments, Shelbyville, Tennessee
- Charleston Square Apartments, Troy, Alabama
- Cherry Ridge Independent Living Apartments, Birmingham, Alabama
- Cottage Hill Pointe Apartments, Mobile, Alabama
- Double Creek Apartments, Florence
- Eagle Pointe Apartments, Madison, Alabama
- Evergreen Village Apartments, Cedartown, Georgia
- Glencoe Trace Apartments, Griffin, Georgia
- Hamilton Place Apartments, Millbrook, Alabama
- Harbor Square Apartments, Decatur, Alabama
- Heatherwood Apartments, Alexander City, Alabama
- Heritage Vista Apartments, Milledgeville, Georgia
- Heron Lake Apartments, Valdosta, Georgia
- Heron Lake II Apartments, Valdosta
- Hickory Run Apartments, Jacksonville, Alabama
- Hickory Run II Apartments, Jacksonville, Alabama
- Highland Park Senior Village, Douglasville, Georgia
- Hunter Pointe Apartments, Centreville, Alabama
- Ivy Pointe Apartments, Tuscumbia, Alabama
- Ivy Pointe II Apartments, Tuscumbia, Alabama
- Kirby Creek Apartments, Cairo, Georgia
- Kirkwood Trail Apartments, Cedartown
- Lakeshore Crossing Apartments, Huntsville, Alabama
- Lenox Station Apartments, Rockingham, North Carolina
- Liberty Square Apartments, Montgomery, Alabama
- Mallard Lake Apartments, LaGrange, Georgia
- Maple Square Apartments, Jefferson, Georgia
- Meadowview Apartments, Greenville, Alabama
- Oakland Mill Apartments, Lincolnton, North Carolina
- Oleander Park Apartments, Mobile
- Orchard Park Apartments, Hayneville, Alabama
- Palladian Apartments, Mobile
- Palladian II Apartments, Mobile
- Palladian-Fairhope Apartments, Fairhope, Alabama
- Palladian-Jubilee Apartments, Daphne, Alabama
- Parkwood Apartments, Pell City, Alabama
- Pebble Creek Apartments, Butler, Alabama
- Pinewood Apartments, Pooler, Georgia
- Powell Place Apartments, Barnesville, Georgia
- Preston Place Apartments, Quitman, Georgia
- Shadowood Apartments, Stevenson, Alabama
- Shellbrooke Pointe Apartments, Fairhope, Alabama
- Sheppard Station Apartments, Pooler, Georgia
- Skyline Trace Apartments, Monroe, Georgia
- Sterling Oaks Apartments, Spindale, North Carolina
- Stoney Creek Apartments, Laurinburg, North Carolina
- Stony Ridge Apartments, Hogansville, Georgia
- Sullivan Village Apartments, Tuscumbia, Alabama
- The Park at Rocky Ridge Apartments, Birmingham
- Timberfalls Apartments, Thomaston, Georgia
- Valley Ridge Apartments, LaGrange, Georgia
- Village at Wedgewood Apartments, Cairo
- Villas on Forsyth Apartments, Barnesville, Georgia
- Waring Apartments, Waycross, Georgia
- Waring II Apartments, Waycross
- Waterford Farms Apartments, Arab, Alabama
- Wincliff Apartments, Gainesville, Georgia
- Woodlawn Terrace Apartments, Valdosta
- Westfork Apartments, Jasper, Alabama
The federal Fair Housing Act prohibits discrimination in housing based on disability, race, color, religion, national origin, sex and familial status. Among other things, the Fair Housing Act requires all multifamily housing constructed after March 13, 1991, to have basic accessibility features, including accessible routes without steps to all ground floor units, and units accessible to wheelchair users and others with disabilities. Enacted in 1990, the Americans with Disabilities Act requires, among other things, that places of public accommodation, such as rental offices at multifamily housing complexes designed and constructed for first occupancy after Jan. 26, 1993, be accessible to persons with disabilities.
Fair housing enforcement is a priority of the Civil Rights Division. More information about the Civil Rights Division and the laws it enforces is available at http://www.justice.gov/crt.
Rappuhn Consent Order
Justice Department Announces New Interagency Initiative to Combat Religious DiscriminationRead the Press Release
WASHINGTON – The Justice Department announced the launch of “Combating Religious Discrimination Today,” a new interagency community engagement initiative designed to promote religious freedom, challenge religious discrimination and enhance enforcement of religion-based hate crimes. The Justice Department’s Civil Rights Division, in partnership with other federal agencies, will host a series of community roundtables across the country that focus on protecting people and places of worship from religion-based hate crimes; combating religious discrimination, including bullying, in education and employment; and addressing unlawful barriers that interfere with the construction of places of worship.
The inaugural roundtable, which is taking place today in Newark, N.J., will focus on addressing bullying and religious discrimination in schools. It will examine how students encounter bullying and harassment based on their actual or perceived religion, as well as discrimination based on religious clothing, holidays and expression.
Subsequent roundtables will focus on a variety of related topics, including a meeting in Birmingham, that will examine religious discrimination in employment; a discussion in Dallas that will center on preventing and prosecuting religion-based hate crimes targeting individuals and houses of worship; and a convening in Detroit that will address discrimination by local zoning officials against congregants seeking to build places of worship. The final roundtable will also concentrate on bullying and religious discrimination in schools and will take place in Palo Alto, California.
“Hate-motivated violence, harassment and discrimination violate America’s laws and threaten our founding vision of a free and tolerant society that welcomes people from every creed and walk of life,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division. “Robust community engagement and meaningful dialogue can help our country fulfill its promise of religious freedom, and we look forward to tackling this challenging work with creative solutions in the months ahead.”
“Our communities can thrive only when individual’s civil rights are protected, so that we have broad inclusion in the work force,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “Protecting the employment rights of religious groups is an important matter. We welcome the opportunity to engage the community in a roundtable discussion of this issue.”
Agencies participating in the new initiative include the Departments of Education, Homeland Security (DHS) and Labor (DOL); the Equal Employment Opportunity Commission (EEOC); and within the Justice Department, the Civil Rights Division, FBI, Office of Justice Programs, Executive Office for U.S. Attorneys and Community Relations Service. Agency officials will facilitate the roundtable discussions to help identify key priorities and lead robust dialogue with community members and civil rights advocates.
“We are eager to continue partnering with our federal colleagues to address bias and discrimination in our nation’s schools, and to continue our strong enforcement of federal civil rights laws to ensure that all students can learn in safe school environments,” said Catherine E. Lhamon, Assistant Secretary for Civil Rights at the Department of Education.
“Since DHS was established, we have worked closely with communities across the country to combat intolerance and ensure safety at houses of worship,” said Officer Megan H. Mack of the DHS Office for Civil Rights and Civil Liberties. “Ensuring the protection of uniquely American rights and liberties is a fundamental part of DHS’s mission to build safe and resilient communities. We look forward to expanding our already extensive engagement with communities by working closely with our federal partners on this effort.”
“A diverse and inclusive workplace reflects the strength and richness of America and its history,” said Director Patricia Shiu of the DOL Office of Federal Contract Compliance Programs. “Built by immigrants from every corner of the world, our nation’s greatness must not be diminished by unlawful religious discrimination. The Department of Labor welcomes the opportunity to collaborate with our federal partners on this important issue.”
“Our nation was founded on the principles of freedom and equality,” said Jenny R. Yang, EEOC Chair. “Working with our federal and community partners enables EEOC to better understand and address religious discrimination in the workplace, and to inform affected communities of protections under federal law.”
The new initiative supplements the department’s long-standing criminal and civil enforcement efforts to prevent religious discrimination and religion-motivated hate crimes. Since the 9/11 terrorists attacks, the department has investigated more than 1,000 incidents involving acts of violence, threats, assaults, vandalism and arson targeting diverse religious and ethnic groups, prosecuting dozens of these cases to the fullest extent of the law. The Civil Rights Division, often in close partnership with other federal agencies, also utilizes civil enforcement to combat religious discrimination and protect religious freedom. This includes preventing religious discrimination in education, through Title IV of the Civil Rights Act of 1964, and in employment, through Title VII of the Civil Rights Act of 1964. In addition, the division enforces the Religious Land Use and Institutionalized Persons Act, which protects individuals, houses of worship and other religious institutions from discrimination in zoning and landmarking laws. For more information about the new initiative, please email [email protected]. Additionally, EEOC is posting a ‘What You Should Know’ document today on its homepage, www.eeoc.gov, compiling EEOC’s resources regarding religious and national origin-based discrimination.
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Bessemer Grocer Pleads Guilty to $5 million Food Stamp Fraud, Tax Evasion, Money Laundering and Currency StructuringRead the Press Release
BIRMINGHAM – A Bessemer grocery store owner pleaded guilty today in federal court to defrauding the food stamp program of more than $5 million, structuring cash transactions and laundering money to hide the illegal profit, and evading federal income taxes, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot and U.S. Department of Agriculture Office of Inspector General, Investigations, Special Agent in Charge Karen Citizen-Wilcox.
HASAN F. AHMED, 50, owner and operator of Associated Discount Foods on Ninth Street South in Bessemer, pleaded guilty before U.S. District Judge R. David Proctor to one count each of food stamp fraud, tax evasion and structuring currency transactions and four counts of money laundering. As part of his plea, Ahmed agreed to forfeit $5.2 million to the government as proceeds of his illegal activity, including his interest in $375,027 which the government already has seized from the grocery store and four bank accounts. Ahmed’s sentencing date has not been set.
“The SNAP program provides assistance for those who need help to feed themselves or their families. It is not an open pocketbook for criminals to abuse in order to selfishly enrich themselves,” Vance said. “This was not a victimless crime. Instead of fulfilling his obligations, Mr. Ahmed used his position to defraud $5 million from a taxpayer-funded program.”
“Hasan Ahmed made an illegal profit by taking advantage of a benefit program,” Hyman-Pillot said. “His actions were a direct misuse of tax dollars. IRS Criminal Investigation and our law enforcement partners will work aggressively to uncover similar schemes and return the illicit proceeds back to the United States Government.”
“Ahmed’s plea should serve as a warning to all stores that participate in the Supplemental Nutrition Assistance Program as vendors that fraud and trafficking of EBT benefits, which is purchasing those benefits for cash, will be vigorously investigated and prosecuted by the USDA-Office of Inspector General, the U.S. Attorney’s Office, and all of its federal, state and local partners that have a stake in ensuring that fraud is eliminated from taxpayer-funded programs,” Citizen-Wilcox said.
Associated Discount Foods is a mid-sized neighborhood grocery store that was authorized by the USDA to accept SNAP food stamp benefits.
From January 2007 through December 2010, the store’s average monthly SNAP redemptions were $4,196, increasing to $17,457 in January 2011, according to Ahmed’s plea agreement with the government. By April 2011, the store’s monthly SNAP redemptions surpassed the average monthly redemptions of five other medium-sized grocery stores within a 14-mile area, according to the plea agreement.
“Based on ADF’s total SNAP redemptions and comparison analysis, the defendant acquired an estimated $5,243,866.49 in SNAP benefits from July 2011 through June 2014 in a way that was contrary to law,” the plea agreement states. Ahmed’s redemptions rose dramatically because he illegally swapped food stamps for cash, at less than the stamps’ face value, and allowed customers to purchase ineligible items with food stamp benefits at inflated rates, according to the document.
Ahmed evaded taxes on the illegal income when he filed a federal income tax return for the 2013 tax year claiming total income of $24,728 when his actual income was $210,927, according to his plea.
Ahmed’s plea agreement outlines his money laundering and illegal currency structuring as follows:
Ahmed controlled a BB&T checking account opened in the name of a relative, identified in court documents as R.N. Between June 2013 and June 2014, in four separate transactions, he deposited $58,100 in proceeds of his food stamp fraud into R.N.’s account. Ahmed moved money into R.N.’s account from his grocery store’s business accounts, where SNAP benefits were electronically deposited, to conceal or disguise that the money was the product of his food stamp fraud.
Ahmed illegally structured financial transactions in an Associated Discount Foods business account at BB&T, making two withdrawals of $10,000 and 36 withdrawals ranging from $9,200 to $9,900, for a total of $362,900, between January and May of 2013. After a bank teller informed Ahmed that transactions over $10,000 had to be reported, he made no further currency transactions over that amount.
Financial institutions are required by law to report currency transactions above $10,000 to the U.S. Department of Treasury. “The defendant engaged in these transactions to evade the reporting requirement” on the 38 withdrawals, according to Ahmed’s guilty plea.
The maximum penalty for both food stamp fraud and tax evasion is five years in prison and a $250,000 fine. The maximum penalty for money laundering is 20 years in prison and a $500,000 fine or twice the value of the property involved in the transaction, whichever is greater. The maximum penalty for currency structuring is 10 years in prison and a $500,000 fine.
IRS-CI and USDA-OIG investigated the case, which Assistant U.S. Attorneys Erica Williamson Barnes and Daniel Fortune are prosecuting.
Former Brink’s Employee Charged with Stealing $200,000 in QuartersRead the Press Release
BIRMINGHAM – Federal prosecutors today charged a Harpersville man with stealing nearly $200,000, all in quarters, while he worked for Brink’s Company armored transport service, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
The U.S. Attorney’s Office charged STEPHEN LANCASTER DENNIS, 49, with one count of bank theft for stealing $196,000 belonging to the Federal Reserve Bank of Atlanta while he worked as a money processing manager for Brink’s at its Birmingham branch in early 2014. Dennis has entered an agreement with the government to plead guilty to the charge and repay $196,000 to Brink’s. The armored service already has reimbursed the Federal Reserve Bank for the loss.
“This defendant may have thought he had quite a haul when he took nearly $200,000 in quarters from the Federal Reserve’s coin storage at Brink’s, but now he carries a heavier load. He must repay the money and face a federal sentence,” Vance said.
“What Mr. Dennis may have thought was a nickel and dime theft was, in the end, the equivalent of a major bank heist,” Stanton said. “Now, he will be a convicted felon who must repay all the stolen money.”
According to the charging document and Dennis’ plea agreement, he carried out the theft as follows:
Brink’s stored U.S. currency and coin belonging to its customers, including the Atlanta Federal Reserve Bank, at Brink’s facility in Birmingham. As a money processing manager at the facility, Dennis had access to the Federal Reserve Coin Inventory. As part of that inventory, quarters were stored in ballistic bags, each containing $50,000. The bags were stored on skids inside Brink’s Coin Room.
An April 2014 audit of the Federal Reserve Coin Inventory revealed that four of the ballistic bags contained beads and only $1,000 in quarters. The quarters were placed so they would be visible through a plastic window in the neck of each bag.
An investigation revealed that on Sunday, Feb. 16, 2014, not a scheduled workday for Dennis, he entered Brink’s and collected four empty skids and four empty ballistic bags, which he filled with beads. He then placed the skids and the bags inside the coin room. Between Jan. 1, 2014, and Feb. 20, 2014, his last day of employment at Brink’s, Dennis stole the 784,000 quarters totaling $196,000.
The maximum penalty for bank theft is 10 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Henry Cornelius is prosecuting.
Federal Judge Sentences Tuscaloosa County Man to 14 Years in Prison for Receiving and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal judge on Monday sentenced a Tuscaloosa County man to 14 years in prison for receiving and possessing child pornography, announced U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton and Alabama Law Enforcement Agency Acting Secretary Stan Stabler.
U.S. District Judge L. Scott Coogler sentenced ADAM SHANE SWINDLE, 34, on one count each of receiving and possessing child pornography in 2014.
The defendant used peer-to-peer file-sharing computer software to receive and possess videos depicting children under the age of 12 being raped and sodomized. The simple possession of these images is a crime of violence.
“This defendant is NOT a minimal offender and therefore deserves a harsh sentence of imprisonment,” the government said in a court filing.
The FBI and ALEA State Bureau of Investigation investigated the case, which Assistant U.S. Attorney Jacquelyn Hutzell prosecuted.
KNOW DOPE Website Goes Live with Award-winning PSAs and DocumentaryRead the Press Release
BIRMINGHAM – A new website presenting award-winning public service announcements and a short documentary produced by UAB Digital Media and focused on awareness and prevention of opiate addiction in the face of steeply rising heroin overdose deaths is live and publicly available, announced U.S. Attorney Joyce White Vance.
As part of the community Pills to Needles Initiative, the U.S. Attorney’s Office last year contracted with the University of Alabama at Birmingham’s Digital Media Department to create content for the website. Students who worked on the yearlong Know Dope project with UAB Digital Media Director Rosie O’Beirne last week won Best of Show in the student competition for the American Advertising Federation Birmingham Awards, or ADDYs.
The students created the Know Dope campaign name and logo, along with six public service announcements and the 10-minute documentary designed to be shown in area schools as part of drug awareness programs. The documentary and PSAs, along with information and links to help educate and provide resources on drug abuse and addiction can be found at www.knowdope.org.
“My office's partnership with the talented group at UAB Digital Media has led to the production of short video clips suitable for sharing on social media that can help fight against the deadly rise of prescription drug and heroin addiction,” Vance said. “It is critical for our community to understand the path from pill to heroin addiction, and that we focus on prevention and treatment opportunities. I hope everyone will spend a few minutes on our website. Minutes you spend may help save the life of someone you love.”
“One of the main aims of the Know Dope campaign was to appeal to a younger audience, while recognizing that heroin might be replaced by other drugs in the future,” O’Beirne said. “Digital assets were tested with middle and high school audiences, who are the main target audiences, and have provided a very positive response. Rollout of the campaign is planned throughout this spring.”
“Pills to Needles” is a collaborative initiative begun in 2014 to respond to the sharp spike in heroin deaths in northern Alabama. The initiative, originated thorough the U.S. Attorney’s Office for the Northern District of Alabama in conjunction with key partners including the UAB School of Public Health, the Jefferson County Department of Health and the Addiction Prevention Coalition, to date has focused on building and planning. Its overarching goals are to create a comprehensive and responsive community infrastructure to address this serious public health issue; develop strategies to reduce the ill-effects of heroin and prescription drug abuse; and give voice to those affected by heroin and prescription drug abuse.
Russellville Man Indicted for String of 2015 Bank RobberiesRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a Russellville man for a string of bank robberies and attempted bank robberies in north Alabama this past fall, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
A six-count indictment filed in U.S. District Court charges KERRY DEWAYNE HARBIN, 45, with four counts of bank robbery and two counts of attempted bank robbery between Sept. 1 and Oct. 15.
The indictment charges Harbin with robbing the BBVA Compass Bank on State Farm Parkway in Homewood on Sept. 1, the Union State Bank on Lorna Road in Hoover on Sept. 10, the Wells Fargo Bank on West Valley Avenue in Homewood on Sept. 17, and the Cullman Savings Banks on Second Avenue in Cullman on Oct. 14. The indictment also charges Harbin with attempted bank robbery at the BB&T Bank on Red Lane Road in Birmingham on Sept. 9 and the BBVA Compass Bank on Green Springs Highway in Homewood on Sept. 10.
The maximum penalty for bank robbery and attempted bank robbery is 20 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney William G. Simpson is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
University of Alabama at Birmingham Enters Agreement with Justice Department to Improve Physical Access on CampusRead the Press Release
BIRMINGHAM -- U.S. Attorney Joyce White Vance today announced a comprehensive settlement agreement under the Americans with Disabilities Act with the University of Alabama at Birmingham to ensure equal access for individuals with disabilities to the university’s academic and general facilities. The agreement also established an innovative process for ADA complaints to be investigated or reviewed.
The agreement resolves a complaint filed by a UAB student who alleged that various buildings and parking lots on campus were inaccessible to individuals with mobility impairments, in violation of the ADA.
UAB worked jointly with the U.S. Department of Justice and the U.S. Attorney’s Office to address the complaint. Through the collaboration, the parties developed a pilot program designed to address alleged violations of the ADA at institutions of higher learning. As part of the pilot, UAB agreed to conduct architectural reviews of several academic and general facilities. The Justice Department provided support and trained UAB personnel to properly survey the university’s property for ADA compliance. Once UAB completes its architectural surveys, it will submit reports to the Justice Department for review.
“UAB should be commended for its quick response to the complaint of potential ADA violations and its willingness to work collaboratively with my office and DOJ to promptly address the problem and protect the rights of people with disabilities,” Vance said. “We welcome the use of this collaborative model, which avoids litigation costs and encourages efficient remedies for the people in our community.”
Title II of the ADA requires that public entities ensure that no qualified individual with a disability be excluded from participation in or be denied the benefits of services, programs or activities of a public entity, or be subjected to discrimination on the basis of that disability. In addition, Title II of the ADA requires, among other things, that no qualified individual with a disability shall, because a public entity’s facilities are inaccessible to or unusable by individuals with disabilities, be excluded from participation in, or be denied the benefits of the services, programs or activities of a public entity, or be subjected to discrimination by any public entity.
As a public entity, UAB is required to ensure that its facilities are readily accessible to individuals with disabilities. Public entities must also construct or alter any buildings or facilities in such a manner that those structures meet the requirements of Title II of the ADA.
IRS Employee Pleads Guilty to $1 Million ID Theft Tax Fraud SchemeRead the Press Release
BIRMINGHAM – An IRS employee whose job was to assist taxpayers experiencing problems resulting from identity theft pleaded guilty Monday in federal court to stealing identities and orchestrating a tax-fraud scheme involving up to $1.5 million in fraudulent income tax returns, announced U.S. Attorney Joyce White Vance, IRS Criminal Investigation, St. Louis Field Office, Special Agent in Charge Karl A. Stiften, and Treasury Inspector General for Tax Administration, Mid-States Field Division, Special Agent in Charge Ruben Florez.
NAKEISHA HALL, 39, entered her guilty pleas before U.S. District Judge Karon O. Bowdre to theft of government funds, aggravated identity theft, unauthorized access to a protected computer and conspiracy to commit bank fraud and mail fraud affecting a financial institution. She acknowledged in her plea that the tax fraud conspiracy had an intended loss to the IRS of between $550,000 and $1.5 million. Hall agreed to restitution and forfeiture of $438,187, representing funds actually paid out by IRS as a result of the scheme. Hall’s sentencing is scheduled June 29.
Hall worked in the Taxpayer Advocate Service office in Birmingham from July 2007 to November 2011. Since November 2011, Hall has worked in TAS offices in Omaha, Neb., New Orleans, La., and Salt Lake City, Utah. TAS is responsible for assisting taxpayers who are having difficulties with the IRS. TAS works with victims of identity theft and assists them in removing fraudulent tax information from their accounts and in filing corrected tax returns, if necessary.
“Ms. Hall used her IRS access to compromise taxpayers’ identities and try to steal more than $1 million dollars from the U.S. Treasury,” Vance said. “Taxpayers must be able to trust that IRS employees will protect their sensitive information, not steal it and corrupt it for personal gain. I thank the TIGTA and IRS-CI investigators who helped my office ensure that this crime was prosecuted and punished.”
“Abusing her position with the Internal Revenue Service, Ms. Hall stole the identities of taxpayers through unauthorized access to IRS computers and filed false tax returns seeking more than a million dollars in tax refunds,” Stiften said. “This defendant systematically defrauded the government and blatantly disregarded the victims of her scheme.”
A federal grand jury in December indicted Hall, along with JIMMIE GOODMAN, 37, and ABDULLA COLEMAN, 37, both of Birmingham, on charges they took part in the scheme operated out of Birmingham between 2008 and 2011 that involved stealing personal identity information from the IRS to create fraudulent tax returns, and collecting the stolen refunds that were generated.
A separate indictment charged another co-conspirator, LASHON ROBERSON, 36, of Pelham, with the conspiracy and four counts of mail fraud affecting a financial institution.
Roberson is scheduled to plead guilty on Wednesday.
Goodman is scheduled for trial Feb. 29, and Coleman is to be arraigned on the charges against him on Thursday, after being arrested in Madison, Wis., and transferred to the Northern District of Alabama.
According to the indictments and Hall’s plea, Hall, Goodman, Coleman, Roberson and at least one other individual, conspired to defraud both the IRS and financial institutions, including Bancorp Bank, between January 2008 and November 2011, and used the U.S. mail to execute the fraud. Hall, Goodman, Coleman and Roberson also conspired to obtain money from Bancorp Bank and other financial institutions. Bancorp Bank and other financial institutions issue stand-alone debit cards for the purpose of accepting tax refunds.
The multi-year conspiracy was conducted as follows, according to the indictments and Hall’s plea:
Hall obtained individuals’ names, birth dates and Social Security numbers through unauthorized access to IRS computers. Hall used the personal identity information to prepare fraudulent income tax returns and submitted them electronically to the IRS. Hall requested that the IRS pay the refunds onto debit cards and directed that the cards be mailed to drop addresses that she controlled. Hall solicited and received drop addresses from Goodman, Coleman, Roberson and at least one other person. The co-conspirators also collected the refund cards from the mail.
Hall activated the cards by using stolen identity information. She, Goodman, Coleman, Roberson and the unnamed co-conspirator took the money off the debit cards at ATMs or used the cards for purchases. If the fraudulent returns generated U.S. Treasury checks rather than the requested debit cards, Hall and her co-conspirators used fraudulent endorsements in order to cash the checks. Hall compensated Goodman, Coleman, Roberson and the fifth co-conspirator by giving them a portion of the refund money, or by giving them refund cards for their own use.
The theft, aggravated identity, and unauthorized access counts relate to two specific taxpayers’ information that Hall accessed and used in 2010.
The conspiracy charge carries a maximum penalty of 30 years in prison and a $1 million fine. The maximum prison penalty for theft of government funds is 10 years in prison. Aggravated identity theft carries a mandatory two-year prison term, which must be served consecutively to any other sentence imposed in the case, and unauthorized access to a protected computer carries a maximum five-year prison term. All three charges carry a maximum $250,000 penalty.
IRS-CI and TIGTA investigated the case, which Assistant U.S. Attorney Erica Williamson Barnes is prosecuting
City of Birmingham Bans the Box on Employment ApplicationsRead the Press Release
U.S. Attorney and Department of Labor Applaud Birmingham as First in Alabama to Make the Change
BIRMINGHAM – The City of Birmingham is now the first city in Alabama to “Ban the Box” on its hiring applications, a move that should help ex-offenders find jobs and decrease the likelihood that they will return to prison.
Birmingham Mayor William A. Bell, U.S. Attorney Joyce White Vance, U.S. Deputy Secretary of Labor Chris Lu, and The Dannon Project Executive Director Kerri Pruitt announced the change Thursday in a press conference at the U.S. Attorney’s Office.
In Alabama, more than 30,000 people are in prison or jail. The vast majority of those inmates – about 95 percent – will eventually return to the community. In Jefferson County alone, about 2,000 people return from prison annually.
"The city will continue to lead the way by expanding existing programs and furthering our reach,” Mayor Bell said. “There is no such thing as a disposable person. We must take the time and make the effort to offer second chances to the thousands of people impacted by these statistics.”
“There is strong data showing that finding a job substantially reduces an ex-offender’s likelihood of returning to prison,” U.S. Attorney Vance said. “For those who believe former inmates are unsafe or unfit for the workplace, there is also ample data showing that employed ex-offenders have better retention rates, better performance metrics, and pose no greater risk within the workplace than those without a conviction history.”
“Birmingham is taking an important step to give people with a criminal history a fair shot to compete for jobs and a chance to be judged on their qualifications,” said Deputy Secretary Lu. “I applaud the leadership of Mayor Bell and U.S. Attorney Vance, and I look forward to working with them to support the full re-entry of ex-offenders.”
“We are very thankful for the opportunity to educate returning citizens, as well as the extended community, about the valuable support that Ban the Box offers in giving everyone equal access to employment,” said Dannon Director Pruitt.
Many employers require job applicants to disclose conviction and arrest history on the initial job application. Often, when that disclosure is made, the applicant is immediately removed from further consideration for employment. The national “Ban the Box” campaign encourages governments and private employers to delay consideration of offense history within the hiring process.
Data shows that ex-offenders who are able to find a job are about half as likely to reoffend as those who are unable to find employment. Removing barriers to a successful return to society for individuals coming out of prison helps them become productive members of society and reduces the likelihood they will commit new crimes.
More than 100 cities and counties and 19 states, including Georgia, have joined companies like Walmart, Target, Home Depot and Koch Industries to ban the box. Late last year, President Obama called upon the Office of Personnel Management to ban the box within federal employment applications.
In Alabama, Jefferson County sends more people to state prison than any other county, which underscores the important role the City of Birmingham has taken in removing the conviction box from its initial employment applications.
Justice Department Settles with Alabama Moving Company over Hepatitis-C DiscriminationRead the Press Release
BIRMINGHAM – The Justice Department reached an agreement today with Kemper Moving Systems Inc., a Huntsville franchise of Two Men and a Truck, to resolve allegations that the moving company violated the Americans with Disabilities Act (ADA) when it refused service because of a customer’s Hepatitis-C, announced U.S. Attorney Joyce White Vance.
Under the terms of a two-year consent decree filed today in the U.S. District Court for the Northern District of Alabama, and still pending approval by the court, Two Men and a Truck will adopt a series of non-discrimination training and policy reforms. The company must also pay $10,000 in compensation to the victim and a $3,500 civil penalty to the United States.
“The Americans with Disabilities Act was passed just over 25 years ago with the promise of opening up all aspects of American life to individuals with disabilities,” Vance said. “Our office is committed to ensuring that this promise is kept and that those individuals with disabilities are given equal access to accommodations and services.”
“The ADA prevents public accommodations, including moving companies, from denying service to people because of their disability status,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice stands firmly committed to protecting the rights of people who live with Hepatitis-C by combating unlawful discrimination, addressing unfounded stereotypes and eradicating the painful stigma that interferes with their daily lives.”
Title III of the ADA prohibits public accommodations, such as moving companies, from discriminating against people with disabilities, including Hepatitis-C. Through its investigation, the department found that Two Men and a Truck discriminated against a customer when its employees cancelled a move because of the customer’s Hepatitis-C. The company cancelled the move because its employees feared they would get Hepatitis-C, even though the customer explained to both the movers and their supervisors that individuals cannot contract Hepatitis-C by moving furniture or through casual contact. As a result of Two Men and a Truck’s cancellation on the scheduled move-out date, the customer had to pay rent for two apartments, locate last minute replacement movers and incur various other expenses.
Widely accepted professional medical guidelines and standards, including those published by the Centers for Disease Control and Prevention (CDC), clarify that Hepatitis-C is transmitted primarily through repeated exposures to infectious blood. According to the CDC, it is not spread through casual contact, including, sneezing, hugging, holding hands, coughing, sharing eating utensils or drinking glasses or through food or water. Two Men and a Truck’s refusal to move an individual with Hepatitis-C marked a clear violation of the ADA based on unfounded fears and stereotypes about a disability.
The agreement announced today requires Two Men and a Truck to implement a nondiscrimination policy along with additional procedures and employee training to prevent discrimination because of a customer’s disability, including Hepatitis-C. It also requires the company to hire or designate an ADA Compliance Official responsible for reviewing all disability-related decisions.
The consent decree, reached under Title III of the ADA – which prohibits discrimination against individuals with disabilities by public accommodations – requires Two Men and a Truck to report to the department on its compliance. The department will actively monitor compliance with the terms of the two-year consent decree.
For more information about the ADA or today’s agreement, individuals may access the ADA web page at http://www.ada.gov/ or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Justice Department Settles with Alabama Moving Company over Hepatitis-C DiscriminationRead the Press Release
The Justice Department reached an agreement today with Kemper Moving Systems Inc., a Huntsville, Alabama, franchise of Two Men and a Truck, to resolve allegations that the moving company violated the Americans with Disabilities Act (ADA) when it refused service because of a customer’s Hepatitis-C.
Under the terms of a two-year consent decree filed today in the U.S. District Court for the Northern District of Alabama, and still pending approval by the court, Two Men and a Truck will adopt a series of non-discrimination training and policy reforms. The company must also pay $10,000 in compensation to the victim and a $3,500 civil penalty to the United States.
“The ADA prevents public accommodations, including moving companies, from denying service to people because of their disability status,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice stands firmly committed to protecting the rights of people who live with Hepatitis-C by combating unlawful discrimination, addressing unfounded stereotypes and eradicating the painful stigma that interferes with their daily lives.”
“The Americans with Disabilities Act was passed just over 25 years ago with the promise of opening up all aspects of American life to individuals with disabilities,” said U.S. Attorney Joyce White Vance of the Northern District of Alabama. “Our office is committed to ensuring that this promise is kept and that those individuals with disabilities are given equal access to accommodations and services.”
Title III of the ADA prohibits public accommodations, such as moving companies, from discriminating against people with disabilities, including Hepatitis-C. Through its investigation, the department found that Two Men and a Truck discriminated against a customer when its employees cancelled a move because of the customer’s Hepatitis-C. The company cancelled the move because its employees feared they would get Hepatitis-C, even though the customer explained to both the movers and their supervisors that individuals cannot contract Hepatitis-C by moving furniture or through casual contact. As a result of Two Men and a Truck’s cancellation on the scheduled move-out date, the customer had to pay rent for two apartments, locate last minute replacement movers and incur various other expenses.
Widely accepted professional medical guidelines and standards, including those published by the Centers for Disease Control and Prevention (CDC), clarify that Hepatitis-C is transmitted primarily through repeated exposures to infectious blood. According to the CDC, it is not spread through casual contact, including, sneezing, hugging, holding hands, coughing, sharing eating utensils or drinking glasses or through food or water. Two Men and a Truck’s refusal to move an individual with Hepatitis-C marked a clear violation of the ADA based on unfounded fears and stereotypes about a disability.
The agreement announced today requires Two Men and a Truck to implement a nondiscrimination policy along with additional procedures and employee training to prevent discrimination because of a customer’s disability, including Hepatitis-C. It also requires the company to hire or designate an ADA Compliance Official responsible for reviewing all disability-related decisions.
The consent decree, reached under Title III of the ADA – which prohibits discrimination against individuals with disabilities by public accommodations – requires Two Men and a Truck to report to the department on its compliance. The department will actively monitor compliance with the terms of the two-year consent decree.
For more information about the ADA or today’s agreement, individuals may access the ADA web page at http://www.ada.gov/ or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Two Men and a Truck Consent Decree
Federal Criminal Charges Filed Against Two Pharmacists for Adulteration of Drugs in Connection with Alabama-Based Compounding PharmacyRead the Press Release
BIRMINGHAM – A criminal information was filed today in the U.S. District Court for the Northern District of Alabama against David Allen, former pharmacist-in-charge of the now-defunct compounding pharmacy Advanced Specialty Pharmacy doing business as “Meds IV,” and William Timothy Rogers, a pharmacist and the former president of Meds IV, the Department of Justice and U.S. Attorney Joyce White Vance announced. Allen and Rogers were charged in connection with the distribution of adulterated drugs, which were compounded at the Meds IV facility and distributed to Birmingham-area hospitals in 2011.
Allen, 60, of McCalla, and Rogers, 48, of Hoover, have signed plea agreements, in which both individuals have agreed to plead guilty to two misdemeanor violations of the federal Food, Drug and Cosmetic Act (FDCA) as charged in the Information. Following today’s filing of the criminal charges; the U.S. District Court will schedule an arraignment, where the defendants will be formally advised of the charges against them. Another hearing will then be set in which the defendants can enter their guilty pleas to the Court.
“The compounding of sterile drug products requires significant care, and the distribution of contaminated drug products can cause serious harm to patients,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “This criminal case demonstrates the Justice Department’s commitment to protecting consumers and patients, and making sure pharmaceutical drugs are safe and effective.”
“Meds IV was in the business of compounding drugs and IV nutrition that was supposed to help patients heal,” Vance said. “Instead, because of unsanitary procedures in the mixing of liquid nutrition, contaminated IV fluid was sent to Birmingham area hospitals and a number of patients developed serious bloodstream infections. I thank the FDA and its Office of Criminal Investigations for their diligence in helping us prosecute those responsible for the failings at Meds IV which contributed to significant harm.”
As alleged in the Information, Meds IV compounded various drugs for human use, including an intravenous drug known as Total Parenteral Nutrition (TPN). TPN is liquid nutrition administered intravenously to patients who cannot or should not receive their nutrition through eating. The information alleges that beginning in or around February 2011, Meds IV compounded its own amino acid solution, which it then mixed with other ingredients to form TPN.
As charged in the information, amino acid used in compounding the TPN was adulterated in the following ways: it consisted in whole or in part of a filthy, putrid, or decomposed substance, namely Serratia marcescens (S. marcescens) and it was prepared, packed, or held under insanitary conditions whereby it may have been contaminated with filth or rendered injurious to health. S. marcescens is gram-negative bacteria that can cause bloodstream infections if introduced into the bloodstream through contaminated medications. These infections can cause serious medical complications, including death, because S. marcescens is resistant to many antibiotics.
According to the charging document, the amino acid was prepared by Meds IV outside a laminar airflow workbench and was kept unrefrigerated, in a room that was not sterile, in a large pot sitting on the floor, sometimes overnight, before it was sterilized and used.
As alleged in the information, between March 5 and 15, 2011, nine patients at various Birmingham-area hospitals who developed bloodstream infections caused by S. marcescens died, and several other hospital patients developed S. marcescens bloodstream infections but survived. According to the charges, all of these patients had been given TPN that was compounded and distributed by Meds IV. As alleged in the information, while a number of the patients who died had underlying conditions which may have contributed to their deaths, medical records of some patients suggest that the S. marcescens bloodstream infections were also a significant factor.
According to the information, Meds IV was notified on March 14, 2011, by a hospital in the Birmingham area, that four patients receiving TPN had tested positive for S. marcescens. The information alleges that the TPN was compounded and distributed by Meds IV and that this notification was the first time Meds IV was informed of a link between its TPN and patients testing positive for S. marcescens. The information alleges that on or around March 16, 2011, Meds IV began notifying some customers that compounding of TPN was suspended until further notice.
As noted in the information, during an inspection at Meds IV starting on March 22, 2011, investigators from the U.S. Centers for Disease Control and Prevention (CDC) found S. marcescens that was indistinguishable to the outbreak strain on a tap-water faucet, in an open container of amino acid powder and on the surface of mixing equipment that had been used to make TPN. According to the charging document, the U.S. Food and Drug Administration (FDA) and CDC investigators linked the S. marcescens to TPN that had been compounded by Meds IV.
“Americans expect and deserve drugs that are safe, effective, and that meet appropriate standards for quality, yet Meds IV contaminated and distributed drug products that resulted in serious harm to patients,” said Acting FDA Commissioner Stephen Ostroff, MD. “Such conduct cannot be tolerated, and the FDA will continue to work with the Department of Justice to pursue aggressive enforcement actions against those who place American patients at risk.”
As alleged in the Information, Allen supervised all compounding at Meds IV, was specifically responsible for reviewing and approving TPN formulations, and was also responsible for filling the individual prescriptions Meds IV received for patient-specific TPN products. The information alleges that Rogers was ultimately responsible for overseeing all of the day-to-day operations of Meds IV. Both defendants have agreed to plead guilty to two misdemeanor counts, representing the two lots of amino acid which were determined to be adulterated in violation of the FDCA. For each count, the defendants face a statutory maximum sentence of up to one year in prison, a fine of up to $250,000, or both, and a term of supervised release after any imprisonment for up to one year.
The case is being prosecuted by Assistant U.S. Attorney Henry Cornelius of the Northern District of Alabama and Trial Attorney Heide L. Herrmann of the Justice Department’s Consumer Protection Branch. They were assisted by Associate Chief Counsel Shannon M. Singleton of the Food and Drug Division, Office of General Counsel, Department of Health and Human Services. The case was investigated by the FDA’s Office of Criminal Investigations.
A criminal Information is merely an allegation and every defendant is presumed innocent until proven guilty beyond a reasonable doubt.
information_allen_rogers.pdf (213.59 KB)
Stevenson, Alabama, Police Chief Charged with Civil Rights Offenses for Assaulting ArresteeRead the Press Release
The Justice Department announced today that a grand jury in the Northern District of Alabama charged the Chief of Police of Stevenson, Alabama, Daniel Winters, 55, with two counts of deprivation of civil rights under color of law.
The indictment alleges that on or about March 22, 2015, Winters physically assaulted an arrestee, and willfully failed to intervene to stop another person from using unreasonable force during the arrest. The assault caused the arrestee to suffer bodily injuries.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI, with assistance from the Alabama State Bureau of Investigation. The investigation remains ongoing. The matter is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Samantha Trepel of the Civil Rights Division’s Criminal Section and Deputy Chief Laura Hodge of the Northern District of Alabama.
Winters Indictment
Stevenson Police Chief Charged with Civil Rights Offenses for Assaulting ArresteeRead the Press Release
BIRMINGHAM –A federal grand jury today indicted Stevenson Police Chief Daniel Winters, 55, on two counts of deprivation of civil rights under color of law, announced the Justice Department and U.S. Attorney Joyce White Vance.
The indictment alleges that on or about March 22, 2015, Winters physically assaulted an arrestee, and willfully failed to intervene to stop another person from using unreasonable force during the arrest. The assault caused the arrestee to suffer bodily injuries.
An indictment is merely an accusation, and the defendant is presumed innocent unless and until proven guilty.
This case is being investigated by the FBI, with assistance from the Alabama State Bureau of Investigation. The investigation remains ongoing. The matter is being prosecuted by Special Litigation Counsel Forrest Christian and Trial Attorney Samantha Trepel of the Civil Rights Division’s Criminal Section and Deputy Chief Laura Hodge of the Northern District of Alabama.
Huntsville Man Charged with Sexual Abuse of MinorRead the Press Release
BIRMINGHAM – A federal grand today indicted a 45-year-old Huntsville man on charges he sexually abused a minor, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
An indictment filed in U.S. District Court charges WILLIAM MAURICE PATTERSON with four counts of engaging in a sexual act with a girl who was between 12 and 16 years old. The indictment charges the abusive conduct occurred between July 1, 2015, and Jan. 4, 2016, within the jurisdiction of Redstone Arsenal.
Each count of sexual abuse of a minor carries a maximum penalty of 15 years in prison and a $250,000 fine.
The FBI and U.S. Army Criminal Investigation Command investigated the case, which Assistant U.S. Attorney Mary Stuart Burrell is prosecuting.
An indictment contains only charges. A defendant is presumed guilty unless and until proven guilty.
Former Talladega Correctional Officer Indicted for Accepting Bribe to Smuggle Phone to InmateRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a former corrections officer at the Federal Correctional Institution in Talladega on charges she accepted a bribe in exchange for providing a cell phone to an inmate, announced U.S. Attorney Joyce White Vance and U.S. Department of Justice Office of the Inspector General Special Agent in Charge Robert A. Bourbon.
A two-count indictment filed in U.S. District Court charges correctional officer STACIE MARIE GARDNER, 31, of Weaver, with accepting $1,474, sent via Western Union in January 2015, in exchange for smuggling contraband into the prison. The indictment also charges that Gardner smuggled a cell phone into the prison and provided it to an inmate in exchange for the payment.
The maximum penalty for receipt of a bribe by a public official is 15 years in prison and a $250,000 fine. The maximum penalty for providing contraband to a federal prisoner is one year in prison and a $100,000 fine.
DOJ OIG investigated the case, which Assistant U.S. Attorney Davis A. Barlow is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
Former Army Employee at Redstone Indicted for Submitting False Tax ReturnRead the Press Release
BIRMINGHAM – A federal grand jury today indicted a former U.S. Army Contracting Command employee for submitting a false federal income tax return for 2013, announced U.S. Attorney Joyce White Vance and Internal Revenue Service Criminal Investigation Special Agent in Charge Veronica Hyman-Pillot.
A one-count indictment filed in U.S. District Court charges that WILLIS EPPS, 61, of Madison, knowingly omitted $56,250 of income on a tax return he signed and submitted in April 2014 for the 2013 tax year. Epps, now retired, worked as a contracting official for the ACC at Redstone Arsenal, assigned to the Non-Standard Rotary Wing Aircraft Project.
The maximum penalty for subscribing a false return is three years in prison and a $100,000 fine.
IRS-CI, in conjunction with the Special Inspector General for Afghanistan Reconstruction, Department of Defense Criminal Investigative Service, Army Criminal Investigation Command and FBI, investigated the case. Assistant U.S. Attorneys Ramona C. Albin and Henry Cornelius are prosecuting the case.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.