District of Rhode Island
Press releases recorded for this federal judicial district.
VA Medical Center ICU Nurse Pleads Guilty to Theft of Prescription Drugs, Falsifying Employment ApplicationRead the Press Release
PROVIDENCE, R.I. – Lisa M. McManaman, 47, of Providence, a former registered nurse in the intensive care unit of the Providence VA Medical Center, pleaded guilty on Friday to stealing prescription drugs from the VA Medical Center and to failing to disclose on her employment application with the VA that she was previously terminated from a similar position at another hospital in Rhode Island.
Appearing Friday before U.S. District Court Chief Judge William E. Smith, McManaman pleaded guilty to one count of theft of government property and one count of false statements. McManaman’s guilty plea is announced by United States Attorney Peter F. Neronha; Jeffrey Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
At the time of her guilty plea, McManaman admitted to the court that on dozens of occasions between May 2015 and October 2015, she used an override feature of an automated medication dispensing system (AMDS) to obtain controlled substance pills, including but not limited to oxycodone and morphine, that were not prescribed for nor provided to patients. According to court records, in the month of September 2015 alone, McManaman used the override feature of the AMDS 19 times and removed approximately 240 controlled substance pills that were not prescribed by a physician and that were not administered to patients.
Additionally, McManaman admitted to the court that in March 2014, she provided false information on her job application for employment at the Providence VA Medical Center when she stated that she had not been terminated from any employment within the previous 5 years. An investigation revealed that in November 2013, McManaman had been fired from her previous job as a nurse in the intensive care unit of a hospital in Rhode Island.
McManaman is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on May 13, 2016.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the United States Department of Veterans Affairs, Office of Inspector General, and the DEA.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Four-time Bank Robber Sentenced to 92 Months in PrisonRead the Press Release
PROVIDENCE, R.I. – Vaughn Watrous, 39, of Providence, was sentenced on Thursday to 92 months in federal prison for robbing four banks in four days in February 2013.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Watrous to serve one year of supervised release upon completion of his prison term and to pay restitution totaling $4,850 dollars to the banks he admitted to robbing. Watrous pleaded guilty on October 16, 2015 to four counts of bank robbery.
Watrous’ sentence is announced by United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist, Providence Police Chief Colonel Hugh T. Clements, Jr., and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
At the time of his guilty plea, Watrous admitted to the court that on consecutive dates beginning on February 11, 2013, he robbed Sovereign Bank branch offices on North Main Street in Providence, Atwells Avenue in Providence, and on Reservoir Avenue in Cranston. He also admitted that on February 14, 2013, he robbed a Citizens Bank branch office located inside a supermarket on Garfield Avenue in Cranston.
In each instance, Watrous passed a note to a bank teller announcing the robbery, demanding large bills and instructing tellers not to trigger the bank alarm. Cranston police officers responding to the robbery of the Citizens Bank branch office observed the defendant in the vicinity of the bank and detained him. As they did, a large pile of cash fell to the ground. Additionally, officers recovered $690 hidden inside Watrous’ left shoe and $320 from his pockets.
The case was prosecuted by Assistant U.S. Attorney John P. McAdams, with the assistance of Assistant U.S. Attorney Lee H. Vilker.
The robberies were investigated by officers and detectives from the Cranston and Providence Police Departments, with the assistance of agents from the FBI.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Dance Instructor Sentenced for Traveling Interstate to Engage in Illicit Sexual ConductRead the Press Release
PROVIDENCE, R.I. – Keith Sampson, 37, of South Easton, Mass., a former dance instructor in Rhode Island, was sentenced today to 60 months in federal prison for traveling interstate to engage in illicit sexual conduct with a 15-year-old female he instructed at a Rhode Island dance studio. Sampson recently completed a seven-and-one-half year state prison term in Massachusetts in this and other criminal matters.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Sampson to serve 10 years supervised release upon completion of his federal prison term, during which time he will be prohibited from being in the company without supervision of anyone under the age of 18. Additionally, Sampson must register as a sex offender.
Sampson pleaded guilty on November 10, 2015, to traveling interstate to engage in illicit sexual conduct.
Sampson’s federal sentence is announced by United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
At the time of his guilty plea in federal court, Sampson admitted to the court that on December 29, 2007, the 15-year-old victim had been left in his care by her mother, on the pretense that the teenager would be spending the night at Sampson's Providence residence in the company of his wife and child. Instead, Sampson admitted that he drove the victim to the home of a relative in Easton, Mass., where he provided the victim with alcohol and then sexually assaulted her.
According to court documents and information presented to the court, the assault occurred while Sampson was awaiting trial in Massachusetts state court in an unrelated matter on two counts of statutory rape of a child. In that case, on January 10, 2008, a jury convicted Sampson of one count of statutory rape. He was sentenced to serve not less than four and not more than seven years imprisonment in Massachusetts state prison.
Additionally, based on the December 29, 2007, assault of his dance studio student, Sampson was indicted and charged in Massachusetts state court with rape of a child with force and providing liquor to a person under 21. He pleaded guilty on November 14, 2011, and was sentenced to not less than two-and-a-half and not more than three years imprisonment, to be served consecutive to the sentence he received as a result of his January 2008 conviction.
This case was prosecuted in federal court by Assistant U.S. Attorneys Zachary A. Cunha and Richard W. Rose.
The matter was investigated by the FBI, with the assistance of the Warwick, Rhode Island, and Easton, Massachusetts, Police Departments.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Two Individuals Plead Guilty to Bank Robbery ChargesRead the Press Release
PROVIDENCE, R.I. – Two individuals are scheduled to be sentenced in U.S. District Court in Providence on May 3, 2016, having pleaded guilty this week to bank robbery charges, announced United States Attorney Peter F. Neronha.
On Tuesday, Trevor Krous Gaskell, 35, of Warren, appeared before U.S. District Court Judge John J. McConnell, Jr., and pleaded guilty to two counts of bank robbery. Gaskell admitted to the court that on January 17, 2013, he robbed a branch office of Washington Trust Bank in Cranston of $4,995, and that on April 29, 2013, he robbed a branch office of Bank of Newport in Warren of between $2,000 and $3,000. In both instances, Gaskell admitted to the court that he handed bank tellers notes demanding cash, instructing them not to include dye packs or GPS trackers with the cash. No weapon was shown.
According to information presented to the court, Gaskell was previously convicted in Massachusetts state court of robbing a bank in Swansea on January 11, 2013.
In a separate matter, appearing today before U.S. District Court Judge John J. McConnell, Jr., Dennis Wilson, 44, of Waterbury, CT., pleaded guilty to one count of armed bank robbery. Wilson admitted to the court that on January 25, 2010, he robbed the Wave Federal Credit Union in Warwick of $16,126.50, while brandishing a firearm. According to information presented to the court, Wilson later admitted to FBI agents that he brandished a BB gun during the robbery.
According to information presented to the court, Wilson was previously convicted of robbing banks in New York and Connecticut.
Both men are detained in federal custody.
The cases are being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The bank robberies committed by Trevor Krous Gaskell were investigated by the FBI, and the Cranston and Warren Police Departments. The bank robbery committed by Dennis Wilson was investigated by the FBI and the Warwick Police Department.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Landscaping Executive Admits to Scheming to Avoid Paying Union BenefitsRead the Press Release
PROVIDENCE, R.I. – Steven F. Pagliarini, 57, Executive Vice-President and Treasurer of Central Landscaping Construction Company, located in Johnston, R.I., and Executive Vice-President of Central Nurseries, Inc., located in Chepachet and Johnston, R.I., pleaded guilty in U.S. District Court in Providence today to charges that he orchestrated a scheme in which Central Landscaping avoided paying contractually obligated union benefits for employees of two unions who worked on federally-funded projects.
In addition, Pagliarini pleaded guilty to charges that he provided false information to the Rhode Island Department of Labor and Training (RIDLT) regarding the employment status of some of his Central Nursery employees. Based on the information provided to RIDLT, the employees were paid unemployment compensation they were not entitled to receive.
Pagliarini pleaded guilty to three counts of falsification of documents and one count of wire fraud. He is scheduled to be sentenced on April 15, 2016.
Pagliarini’s guilty plea is announced by United States Attorney Peter F. Neronha; Cheryl Garcia, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region; Susan A. Hensley, Regional Director, U.S. Department of Labor Employee Benefits Security Administration; Todd Damiani, Special Agent in Charge of Region One U.S. Department of Transportation Office of Inspector General; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General; and Scott Jensen, Director of RIDLT.
Appearing before U.S. District Court Chief Judge William E. Smith, Pagliarini admitted to the court that at various times, between January 2007 and December 2010, he submitted false documents to union welfare and pension plan administrators of two unions that represent construction equipment operators and other employees of Central Landscaping. The documents did not accurately reflect the actual number of hours worked by some employees and the actual amount of wages paid to those employees.
The employees worked on federally-funded projects at the Hartford Park Project in Providence and the I-195 Relocation Project.
Pagliarini also admitted to the court that in a separate scheme, in order to avoid paying wages to some employees between November 2009 through April 2010, he falsely reported to the RIDLT that the employees of Central Nurseries had been laid-off because of a lack of work. Pagliarini admitted to the court that he required the employees to work part-time and he did not pay them. Based on documents filed with RIDLT, employees were paid a total of $68,487 in unemployment compensation.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the United States Attorney’s Office; U.S. Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation; U.S. Department of Labor Employee Benefits Security Administration; U.S. Department of Transportation Office of Inspector General; U.S. Department of Housing and Urban Development Office of Inspector General; and the Rhode Island Department of Labor and Training.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Thai National Indicted in Alleged Immigration Fraud SchemeRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence, R.I., returned a 26-count indictment on Tuesday charging Nimon Naphaeng, 34, a native and citizen of Thailand, who currently resides in Wakefield, R.I., with allegedly running an immigration fraud scheme which allegedly included the filing of false asylum applications on behalf of individuals who did not request nor authorize the applications.
The indictment is announced by United States Attorney Peter F. Neronha and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
According to the indictment and information presented to the court, it is alleged that between January 2014 and December 2015, Naphaeng advertised on the Internet and in flyers posted at various businesses that he could assist Thai nationals with obtaining an Employment Authorization Document (EAD) card, and, as a result, further government benefits such as a social security number, a driver’s license and, if they qualify, other financial benefits. It is alleged that Naphaeng, without the consent of the applicants, used personal information they provided to him to secure an EAD card to instead file asylum applications in their names. It is alleged that the applicants did not know that Naphaeng was filing asylum claims in order to secure EAD cards.
In order to qualify for asylum, an applicant must establish that they cannot return to their native country based upon persecution or a well-founded fear of persecution on account of race, religion, nationality, membership in a particular social group, or political opinion. The applicant must personally sign the application and swear under penalty of perjury that the information is true and correct. An initial asylum application grants the applicant certain benefits while their application is pending, including the issuance of an EAD card.
Nationwide, Thai nationals historically file less than 20 asylum applications each year. According to information presented to the court, this investigation began in January 2015, when immigration officials observed a surge of citizens from Thailand submitting asylum applications. A significant number of the applications allegedly shared the defendant’s home or work address. It is alleged that a review of more than 260 of these asylum applications contained virtually identical asylum claims, factual scenarios and supporting documents.
The indictment returned on Tuesday charges Nimon Naphaeng with seven counts of mail fraud, eight counts of visa fraud, ten counts of aggravated identity theft and one count of international money laundering. The government is also seeking the forfeiture of $279,550 seized from Naphaeng, monies allegedly realized by Naphaeng in the execution of the scheme.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Naphaeng, who was arrested on a criminal complaint on December 22, 2105, is detained in federal custody. A federal arrest warrant was obtained based on information developed by agents investigating this matter that Naphaeng was allegedly planning to leave the United States.
The matter was investigated by Homeland Security Investigations, with substantial assistance from the U.S. Citizenship and Immigration Services - Fraud Detection National Security Asylum Office, Newark, N.J., and the Warwick, R.I., Police Department.
The case is being prosecuted by Assistant U.S. Attorneys Richard W. Rose and Mary E. Rogers.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Businessman Sentenced for Marketing and Selling Unapproved Remedies for CancerRead the Press Release
PROVIDENCE, R.I. – James Feijo, 68, owner and operator of Daniel Chapter One, a Portsmouth, R.I., based company, was sentenced yesterday to 6 months in federal prison to be followed by 6 months home confinement for marketing and selling products not approved by the U.S. Food and Drug Administration (FDA) and failing to pay more than $218,000 in employment taxes due the IRS, announced United States Attorney Peter F. Neronha, George M. Karavetsos, Director, FDA’s Office of Criminal Investigations, and Kristina O’Connell, Acting Special Agent in Charge of IRS Criminal Investigation.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Feijo to serve 3 years supervised release and to pay restitution in the amount of $218,408.04 owed to the IRS. Feijo pleaded guilty on September 11, 2015, to introduction of a new unapproved drug and tax evasion.
“People facing difficult, even life-threatening, health challenges are often susceptible to the kinds of deceptive schemes cooked up by the defendant here,” said United States Attorney Peter F. Neronha. “Whether in this context or in others, those who prey on the hopes and fears of the most vulnerable deserve the full attention of law enforcement. A stretch in federal prison is more than appropriate for this defendant. The people who relied on his greed-motivated, baseless claims of ‘cure’ deserved much better.”
“The FDA’s drug approval process ensures that patients receive safe and effective medications,” said George M. Karavetsos, Director, FDA’s Office of Criminal Investigations. “When criminals evade the FDA process and sell their non-FDA approved products to our most vulnerable consumers, we will take action to protect the public’s health.”
At the time of his guilty plea, Feijo admitted to the court that he engaged in the marketing, sale and distribution of unapproved cancer treatment health products and supplements which were not generally recognized as safe and effective for use by the FDA. Additionally, the products, as marketed, were not generally recognized as safe and effective by qualified experts for the cure, mitigation, treatment, or prevention of cancer. The products were marketed and sold through various websites, in-store advertisements, a call center, on Feijos’ daily radio program, and through the use of promotional materials and publications.
In addition, at the time of his guilty plea, Feijo admitted to the court that from 2006 through 2011, he falsely represented to Daniel Chapter One employees that they were independent contractors, when in truth they were employees of Daniel Chapter One. During that time, Feijo failed to issue IRS Wage and Tax Statements accounting for employees’ wages and taxes withheld. Feijo admitted that Daniel Chapter One employees were paid by checks written out to cash, and that for at least sixteen quarters he failed to collect, account for and pay over employment taxes due the IRS totaling $218,408.04.
“Business owners like Mr. Feijo have an important responsibility to collect and turn over all withholding taxes,” said Kristina O’Connell, IRS Criminal Investigation Acting Special Agent in Charge. “Those who fail to do so gain a competitive advantage which will not be tolerated. Employment tax fraud also impacts employees, who may see future benefits such as Social Security reduced because their employer did not comply with the law."
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly.
The matter was investigated by the Rhode Island FDA Task Force and IRS Criminal Investigation.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Senior State Prosecutor Appointed Asst. United States AttorneyRead the Press Release
PROVIDENCE, R.I. – Ronald R. Gendron, an Assistant Attorney General with the Rhode Island Department of the Attorney General since 1991, has been appointed by United States Attorney Peter F. Neronha to the position of Assistant United States Attorney.
During his twenty-five year career as a state prosecutor, Mr. Gendron served in numerous capacities, including Chief of the White Collar and Public Corruption Unit and Chief of the Firearms Unit. He prosecuted a wide variety of criminal cases, including firearms, narcotics, organized crime, gang-related, financial, public corruption and computer/Internet crimes.
Additionally, while serving as a state prosecutor, Mr. Gendron was cross-designated a Special Assistant United States Attorney, and prosecuted federal technology–facilitated crimes against children under Project Safe Childhood. Mr. Gendron was also a liaison between the Attorney General’s Office and the United States Attorney’s Office for the implementation of Project Safe Neighborhoods.
United States Attorney Peter F. Neronha commented, “I am immensely pleased to welcome Ron Gendron to the United States Attorney’s Office. He has dedicated his life to public service, performing superbly and honorably during his many years as a state prosecutor. His experience and talent, and unquestioned integrity, will continue to serve the people of Rhode Island exceptionally well as a member of this office.”
Mr. Gendron graduated magna cum laude from Boston College. He earned his Juris Doctor at Villanova University School of Law. He served as a Judicial Law Clerk at the Rhode Island Supreme Court for the Honorable Thomas F. Kelleher, Senior Associate Justice.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Jury Convicts Providence Man on Drug Trafficking ChargeRead the Press Release
PROVIDENCE, R.I. – A federal court jury in Providence today convicted Jose Ignacio Goris, 41, of Providence, of attempting to possess with the intent to distribute 500 grams or more of cocaine. Goris was arrested on August 14, 2014, moments after he took custody of what he believed to be a kilogram of cocaine supplied to him at his request by a person he believed to be a drug trafficker. The purported drug trafficker was a DEA Task Force agent. The package was made to appear as if it contained a kilo of cocaine.
Goris’ conviction is announced by United States Attorney Peter F. Neronha and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
According to the government’s evidence presented at trial, beginning in early May 2014, Goris and two undercover agents who were posing as large-scale cocaine suppliers engaged in a series of electronically recorded telephone conversations and meetings. Goris repeatedly represented to the agents that he had previously engaged in distributing large quantities of cocaine and that he was anxious to return to “work” trafficking cocaine.
On the afternoon of August 14, 2014, Goris and one of the agents met in a mall parking lot in Warwick, at which time Goris was shown what he believed to be two kilos of cocaine. The look-alike cocaine packages were hidden inside a secret compartment of the undercover agent’s vehicle. After examining the packages, Goris told the agent that he was leaving to get funds to purchase a kilo of the cocaine.
Later that day, Goris and the agent met inside a Cranston retail store and negotiated terms for the sale of the kilo of cocaine. After they reached agreement, the agent directed Goris to a vehicle in the store parking lot which he told Goris contained a bag with a kilo of cocaine. Goris was arrested by members of the Drug Task Force moments after he retrieved and took possession of the bag from the vehicle. Inside the bag was a package made to appear as if it was a kilo of cocaine.
Goris, who has been held in federal custody since his arrest, will be sentenced by U.S. District Court Judge John J. McConnell, Jr., on a date to be scheduled by the court.
According to court records, Goris was previously convicted in federal court on drug trafficking charges.
The case is being prosecuted by Assistant U.S. Attorney Paul F. Daly, Jr.
The Rhode Island DEA Drug Task Force is comprised of agents and law enforcement officers from the DEA, ATF, IRS, Homeland Security Investigations, Rhode Island State Police, and Cranston, East Providence, Pawtucket, Providence, Newport, South Kingstown, Warwick, West Warwick and Woonsocket Police Departments.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Couple Sentenced to 5 Years in Prison for Trafficking Crack CocaineRead the Press Release
PROVIDENCE, R.I. – Luz Ramirez, 28, and Ralph Quinones, 38, of Central Falls, were sentenced today in U.S. District Court to 60 months in federal prison for conspiring to traffic crack cocaine, announced United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Ramirez and Quinones to serve 4 years supervised release upon completion of their prison terms. Ramirez pleaded guilty on August 12, 2015, and Quinones pleaded guilty on September 3, 2015, to conspiracy to distribute 28 grams or more of crack cocaine.
According to court documents and information presented to the court, in August 2014, as part of an ongoing investigation by the FBI into the trafficking of crack cocaine in Rhode Island, an individual assisting FBI agents arranged for the purchase of crack cocaine from Ralph Quinones. On August 15, 2014, the individual purchased 10.17 grams of crack cocaine from Quinones. On August 21, 2014, the individual purchased 11.67 grams of crack cocaine from Quinones.
According to information presented to the court, Quinones was arrested and detained on September 8, 2015, on an unrelated disorderly conduct charge. Later that same day, after speaking with Quinones by telephone from the ACI, Luz Ramirez contacted the individual who Quinones had sold crack cocaine to on August 15 and August 21, and told the individual that she would be taking care of Quinones’ customers. On September 9 Ramirez sold the individual 25.2 grams of crack cocaine. On October 8 Ramirez sold the individual 8.31 grams of crack cocaine.
Luz Ramirez and Ralph Quinones were arrested on March 6, 2015, and detained in federal custody.
The case was prosecuted by Assistant U.S. Attorney Ly T. Chin.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Sex Trafficking Law Enforcement Task Force Highlighted During National Slavery and Human Trafficking Prevention MonthRead the Press Release
PROVIDENCE, R.I. – January is National Slavery and Human Trafficking Prevention Month. In Rhode Island, the Sex Trafficking Law Enforcement Task Force, comprised of local and state law enforcement, agents from Homeland Security Investigations and the FBI, and prosecutors from the Rhode Island Attorney General’s Office and the United States Attorney’s Office, continue to be laser-focused working together as “one voice” on “one mission” to investigate, arrest and prosecute sex traffickers and sex buyers, and to rescue as many victims as possible who have become ensnarled in webs weaved by sex traffickers.
Human trafficking is the world's fastest growing criminal enterprise, valued to be an estimated $32 billion-a-year global industry. After drug trafficking, human trafficking is the world's second most profitable criminal enterprise, a status it shares with illegal arms trafficking. Sex trafficking can and does take place in every community, no matter the cultural make up, the affluence, or the location of a community. No community is immune from being affected by the exploitation of human beings for commercial sexual activity.
Nationally, for the 5th year, the U.S. Department of Homeland Security’s Blue Campaign is raising public awareness about human trafficking, and, among other things, the commitment of law enforcement on every level to, as the campaign stresses, to work as “One Voice. One Mission. End Human Trafficking.”
The Blue Campaign also offers training to law enforcement and others to increase detection and investigation of human trafficking, and to protect victims and bring suspected traffickers to justice.
Over the past two years in Rhode Island, at least 30 individuals have been charged with sex trafficking crimes by prosecutors from the United States Attorney’s Office and the Attorney General’s Office. Most sex trafficking cases are jointly reviewed by prosecutors from both offices to determine appropriate charges, appropriate jurisdiction and in which court appropriate penalties are likely to be realized. Several prosecutors from each office have been cross-designated, allowing them to work side-by-side to prosecute sex trafficking cases either in state or federal court.
For example, in 2014, local, state and federal law enforcement from two states worked collaboratively to successfully locate and rescue a 17-year-old Boston area woman who was enticed to leave her residence and who was brought to a Rhode Island motel by a Missouri man, for the purposes of being offered for commercial sexual activity. The Missouri man is now serving a 14-year sentence in federal prison.
In June 2015, a Superior Court jury found a Boston man guilty of two counts of sex trafficking a minor for forcing a 14-year-girl to dance and solicit men for sex at a Providence strip club, as well as posting an ad for her as an escort on adult websites. Working in concert with one another, law enforcement from Rhode Island and Massachusetts found a second girl in a motel in Seekonk. Law enforcement was able to successfully rescue both teenagers and arrest the defendant, who had been previously been convicted of sexual assault and interstate transportation of a minor for prostitution. The defendant, who is awaiting sentencing, is facing a maximum of 91 years in state prison.
In addition, members of the Sex Trafficking Law Enforcement Task Force have worked closely with Day One in Providence, the Aubin Center at Hasbro Children’s Hospital, DCYF, the Rhode Island Public Defender’s Office and the Rhode Island Police Chiefs’ Association to develop a uniform response protocol intended to serve as a guide and resource to assist in detecting and investigating the commercial sexual exploitation of children, successfully prosecuting those who engage in this conduct, and addressing the recovery needs of the victims of this crime.
“Make no mistake about it: the depraved individuals who enslave others for the commercial sex industry are more than mere criminals. They are kidnappers, torturers and rapists. To effectively end sex trafficking, it requires cooperation among local, state, national law enforcement agencies,” said Attorney General Peter F. Kilmartin. “The partnership by law enforcement through the Rhode Island Sex Trafficking Task Force has shown that by working together, we can successfully combat this new form of slavery and put the traffickers out of business.”
United States Attorney Peter F. Neronha commented, “Commercial sex traffickers trade in, and make money on, the vulnerability of their teenage and young adult victims. Few, if any, crimes are more outrageous or harmful to their victims, and those who engage in this conduct deserve the full attention of our joint law enforcement efforts. Those on the other side of these criminal transactions – the sex buyers – should also take notice, for they are an equal part of the problem, and they too will have a price to pay as we move forward with these cases.”
“U. S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) is committed to combating human trafficking in Rhode Island and beyond through close coordination with our federal, state and local partners,” said Special Agent in Charge Matthew Etre, of HSI Boston. “It is through information sharing mechanisms, such as the RI Sex Trafficking Law Enforcement Task Force, that we are able to combine our strengths, exchange best practices and provide a whole of government response to fighting these heinous crimes and getting the victims the support and resources that they need to recover.”
Commenting on behalf of local and state law enforcement across the state, Lincoln Police Chief Brian W. Sullivan, President of the Rhode Island Police Chiefs’ Association said, “In Rhode Island, when investigating Human Trafficking crimes, the emphasis that has been placed on creating a multi-agency, collaborative investigation has been critical in the removal of barriers. This partnership demonstrates the commitment of federal, state, and local law enforcement agencies to combating this crime.”
“Human trafficking has become a profitable business for criminals of all kinds to fund and advance their enterprises. Equally disturbing, victims of this trafficking are often beaten, starved, and forced to work in the sex industry or as domestic servants with little to no pay. People believe this could never happen here in Rhode Island—but it does,” said Harold H. Shaw, Special Agent in Charge of the FBI’s Boston Division. “As part of this task force, the FBI will continue to dedicate resources to disrupt these trafficking networks, all in an effort to help victims of these heinous crimes, and stem this egregious criminal activity.”
Click here to view the “Out of the Shadows” public service announcement designed to enhance awareness of human trafficking and encourage the public to educate themselves about how to recognize and report human trafficking.
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2nd Former Postal Employee Sentenced in Mail Theft ConspiracyRead the Press Release
PROVIDENCE, R.I. – Joan Manuel Mustafa, 28, of Providence, was sentenced today to 24 months in federal prison for his role in a conspiracy to steal U.S. Treasury checks from the U.S. mail, and either sell them on the street or deposit them in bank accounts opened with stolen or fraudulent personal information. The bank funds were then withdrawn or used to make retail purchases with the use of debit cards.
At sentencing, Mustafa was also ordered to serve 2 years supervised release upon completion of his prison term, and to perform 100 hours of community service. Mustafa pleaded guilty on October 21, 2015, to one count each of conspiracy, theft of mail and theft of public money or property.
Mustafa’s sentence, imposed by U.S. District Court Chief Judge William E. Smith, is announced by United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr. and Eileen Neff, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Field Office.
A co-defendant in this matter, Erick Vera-Garzon, 36, of Providence, was sentenced last month to 36 months in federal prison. Vera-Garzon pleaded guilty on September 23, 2015, to conspiracy, theft of mail and theft of public money or property.
An investigation by the Providence Police Department Intelligence and Organized Crime Unit and the United States Postal Service (USPS) Office of Inspector General (OIG) resulted in the seizure of approximately $1.6 million dollars worth of stolen U.S. Treasury checks, several dozen stolen gift cards, and more than $165,000 in cash gained as a result of the sale of stolen checks and gift cards.
According to court documents and information presented to the court, in September 2014, USPS-OIG agents began investigating the disappearance of U.S. Treasury checks addressed to individuals in Rhode Island and nearby Massachusetts. The missing checks were handled by employees at the U.S. Mail Providence Processing and Distribution Center. At the same time, independent of the USPS-OIG investigation, a Providence Police Department detective developed information that Vera-Garzon was selling stolen U.S. Treasury checks at 20% of face value to buyers on the streets of Rhode Island and New York. The investigation determined that many of the stolen checks were deposited in bank accounts that had been opened in Rhode Island, Massachusetts and New York in the names of some of the individuals whose checks had gone missing. The funds were then drawn down by cash withdrawals from ATMs, the purchase of goods and services, and the purchase of money orders.
Based on the information developed by the Providence Police Department Intelligence and Organized Crime Unit, court authorized search warrants were obtained and executed at Mustafa and Vera-Garzon’s residences on April 16, 2015. Law enforcement seized more than 900 stolen U.S. Treasury checks valued at approximately $1.6 million dollars, several dozen gift cards and more than $53,000 in cash. Vera-Garzon and Mustafa were arrested on April 16, 2015.
The cases were prosecuted by Assistant U.S. Attorneys Gerard B. Sullivan and Richard W. Rose.
Agents from the Veterans Administration Office of Inspector General and the U.S. Treasury Office of Inspector General assisted agents from the United States Postal Service Office of Inspector General and detectives from the Providence Police Intelligence and Organized Crime Unit in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Providence Landlord Sentenced in Arson-for-Profit SchemeRead the Press Release
PROVIDENCE, R.I. – Rony Metellus, 52, of Providence, was sentenced on Wednesday to 42 months in federal prison for setting fire to an occupied three family tenement building he owned, in an arson-for profit scheme and insurance fraud scheme, announced United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Providence Public Safety Commissioner Steven M. Paré and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Metellus to serve 3 years supervised release upon completion of his prison term. Metellus pleaded guilty on August 3, 2015, to one count of defrauding an insurance company – wire fraud.
According to court records and information presented to the court, an investigation by the Providence Fire Department Arson Squad, the Providence Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the Rhode Island Attorney General’s Office, determined that an early morning fire on July 23, 2014, to an occupied three family tenement at 346 Admiral Street in Providence was intentionally set. The investigation determined that the building’s owner, Rony Metellus, intentionally set fire to the building in a scheme to collect insurance payments.
At the time of the fire, three adults and three children were living in a first floor apartment. The second and third floors, including the apartment where the fire was intentionally set, were vacant. The building sustained significant damage.
At the time of his guilty plea, Metellus admitted to the court that he drove from his Providence home at approximately 3:30 a.m. on the morning on July 23, 2014, set fire to the Admiral Street building, and quickly returned home as Providence fire apparatus were responding to the fire. Metellus admitted that he hired a public adjuster to represent him in filing an insurance claim for damages to the burned building. Records indicate a claim was filed with the insurer, Lloyd’s of London.
Metellus has been detained in federal custody since his arrest on August 8, 2014.
The case was prosecuted by Assistant U.S. Attorney William J. Ferland, with the assistance of Assistant U.S. Attorney Milind M. Shah.
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Jim Martin (401) 709-5357
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Convicted Felon Sentenced for Possessing Loaded FirearmRead the Press Release
PROVIDENCE, R.I. – Christopher Jeffrey Monroe, 29, of no permanent address, was sentenced on Wednesday to 24 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Newport Police Chief Gary T. Silva.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Monroe to serve 3 years supervised release upon completion of his prison term. Monroe pleaded guilty on September 25, 2015, to being a felon in possession of a firearm.
According to court documents and information presented to the court, on April 27, 2015, Newport Police Department officers developed information that Monroe, who was wanted on an active state arrest warrant, was staying in a room at a Newport motel. While officers were knocking on the door of the room they believed Monroe was occupying, they heard a window being opened. Officers observed Monroe leap from the window. Monroe was detained following a brief foot chase. The officers discovered a loaded semi-automatic handgun in Monroe’s pocket.
According to court records and information presented to the court, Monroe had previously been convicted of felony crimes, including assault.
The case was prosecuted by Assistant U.S. Attorney Sandra R. Hebert.
ATF assisted Newport Police in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Armed Co-conspirator of Planned Home Invasion Sentenced to 8 Years in PrisonRead the Press Release
PROVIDENCE, R.I. – Emmett Blyden, 45, was sentenced on Tuesday to 96 months in federal prison for his role in a conspiracy to commit an armed home invasion and drug-rip at a Providence residence in June 2014, where he, and a co-defendant, Allen Prout, 44, of Providence, were expecting to find and steal two kilos of heroin and a substantial amount of cash. Blyden and Prout were arrested on June 6, 2014, moments after each took possession of firearms they intended to use to commit the armed home invasion and robbery.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Blyden to serve 3 years supervised release upon completion of his prison term. Blyden pleaded guilty on September 22, 2015, to robbery conspiracy and being a felon in possession of a firearm.
Blyden’s sentence is announced by United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Allen Prout, who pleaded guilty on October 29, 2015, to robbery conspiracy, possession of a firearm in furtherance of a crime of violence and being a felon in possession of a firearm, is scheduled to be sentenced on February 2, 2016.
According to court documents and information presented to the court, in June 2014, Prout contacted an individual known to ATF agents, seeking assistance in setting up a robbery and inquiring as to the availability of firearms to be used during the robbery. Working at the direction of ATF, the individual met with Prout on June 2, 2014, to discuss robbing a fictitious stash house in Providence. Prout was told that two kilos of heroin and a large amount of cash were being stored at the residence. After having additional conversations via telephone and text messages over the next few days, Prout arranged to meet with the individual on June 6, 2014, to finalize plans for the home invasion and robbery, and to obtain firearms to be used during the crime. Blyden accompanied Prout to the meeting.
According to information presented to the court, Blyden attended the meeting knowing that it was to plan an armed home invasion and robbery. During the meeting, Blyden and Prout were told that up to five individuals would be inside the residence and that some or all may be armed. Prior to taking possession of a firearm, Blyden insisted on putting on a pair of gloves.
Shortly after Blyden and Prout each took possession of a firearm, ATF agents entered the residence and arrested the two men. The firearms had been rendered inoperable by ATF agents prior to being delivered to Blyden and Prout.
According to court records, Emmett Blyden’s prior felony record includes at least three drug trafficking convictions. Allen Prout was previously convicted on felony assault and larceny charges.
The case is being prosecuted by Assistant U.S. Milind M. Shah.
The Providence Police Department SWAT Team assisted ATF agents in the arrest of the defendants.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Landscaping Executive to Plead Guilty to Orchestrating Schemes to Avoid Paying Union Benefits, Falsify Unemployment DocumentsRead the Press Release
PROVIDENCE, R.I. – Steven F. Pagliarini, 57, Executive Vice-President and Treasurer of Central Landscaping Construction Company, located in Johnston, R.I., and Executive Vice-President of Central Nurseries, Inc., located in Chepachet and Johnston, R.I., has agreed to plead guilty in federal court to charges that he allegedly orchestrated a scheme in which Central Landscaping avoided paying contractually obligated union benefits for employees of two unions who worked on federally-funded projects, by paying a portion of the employees’ wages through Central Nursery, a non-union company.
In addition, Pagliarini has agreed to plead guilty to allegedly providing false information to the Rhode Island Department of Labor and Training (RIDLT) regarding the employment status of some of his Central Nursery employees. Based on the information allegedly provided to RIDLT, the employees were paid unemployment compensation they would not have been paid had accurate information regarding the employees’ employment status been provided.
According to an information and plea agreement filed in U.S. District Court in Providence, Pagliarini will plead guilty to three counts of falsification of documents and one count of wire fraud. Pagliarini is scheduled to be arraigned on Thursday.
The filing of the information and plea agreement is announced by United States Attorney Peter F. Neronha; Cheryl Garcia, Special Agent in Charge of the New York Region of the U.S. Department of Labor - Office of Labor Racketeering and Fraud Investigations; Susan A. Hensley, Regional Director, U.S. Department of Labor Employee Benefits Security Administration; Todd Damiani, Special Agent in Charge of Region One U.S. Department of Transportation Office of Inspector General; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General; and Scott Jensen, Director of RIDLT.
According to court documents, it is alleged that at various times, between January 2007 and December 2010, Pagliarini submitted false documents to union welfare and pension plan administrators of two unions that represent construction equipment operators and other employees of Central Landscaping. It is alleged that the documents did not accurately reflect the actual number of hours worked by some employees and the actual amount of wages paid to those employees.
The employees worked on federally-funded projects at the Hartford Park Project in Providence and the I-195 Relocation Project.
It is also alleged in court documents that in order to avoid paying wages to some employees between November 2009 through April 2010, Pagliarini devised a scheme in which he reported to the RIDLT that the employees of Central Nurseries had been laid-off because of a lack of work. It is alleged that, in fact, Pagliarini required the employees to work part-time. Pagliarini did not pay the employees. Instead, RIDLT paid the employees a total of $68,487 in unemployment compensation.
An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Dulce Donovan.
The matter was investigated by the United States Attorney’s Office, the U.S. Department of Labor - Office of Labor Racketeering and Fraud Investigations, U.S. Department of Labor Employee Benefits Security Administration, U.S. Department of Transportation Office of Inspector General the U.S. Department of Housing and Urban Development Office of Inspector General, and the Rhode Island Department of Labor and Training.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Tax Preparer Pleads Guilty to Tax Fraud and Wire FraudRead the Press Release
PROVIDENCE, R.I. – Leon F. Tejada, 50, of Providence, operator of El Centro Multiservicios, LLC, a tax preparation service in Providence, pleaded guilty today to federal tax fraud and wire fraud charges, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
Appearing before U.S. District Court Chief Judge William E. Smith, Tejada admitted to the court that during tax years 2009 through 2012, without the knowledge of his clients, he created and falsified clients’ dependents, exemptions, tax credits, deductions and expenses in order to increase the amount of tax refund due to some of his clients. An investigation by agents from IRS Criminal Investigation and by the United States Attorney’s Office determined that the tax fraud scheme resulted in a loss to the United States of $54,440.
Tejada admitted to the court that he also devised a scheme to divert some of his clients’ tax refunds through a bank clearing house, at which time, without the knowledge of his clients, a portion of the funds were diverted into his own bank account for his own personal use. The investigation determined that Tejada diverted $24,987 into his own bank account.
Tejada, who is released on unsecured bond, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on March 10, 2016.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
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Contact:
Jim Martin (401) 709-5357
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Firearms Traffickers Sentenced to Federal PrisonRead the Press Release
PROVIDENCE, R.I. – Kinmonte Markell Brown, 28, and Dennis Wells, 24, of Greenville, North Carolina, were sentenced in U.S. District Court in Providence today for trafficking more than a dozen firearms from North Carolina into Providence between November 2014 and January 2015.
Kinmonte Brown was sentenced to 84 months in federal prison, and Dennis Wells was sentenced to 78 months in federal prison. Both defendants have also been ordered to serve 3 years supervised release upon completion of their prison terms. Brown and Wells pleaded guilty on September 18, 2015, to conspiracy to deal firearms without a license, dealing firearms without a license, being felons in possession of a firearm and possession of a firearm with an obliterated serial number.
The sentences, imposed by U.S. District Court Chief Judge William E. Smith, are announced by United States Attorney Peter F. Neronha, Rhode Island Attorney General Peter F. Kilmartin, Michael J. Ferguson, Special Agent in Charge of the DEA’s New England Field Division, Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF, and Providence Police Chief Colonel Hugh T. Clements, Jr.
Information that led to the arrest of Brown and Wells in February 2015, and the interruption of the flow of firearms from North Carolina to an apartment in the Hartford Park neighborhood was developed as a result of the Rhode Island Urban Violent Crime Initiative - a wide-ranging collaboration of local, state and federal law enforcement, and federal and state prosecutors who are targeting violent crime and violent criminals in urban neighborhoods of Rhode Island.
In late 2013, the Initiative began targeting the distribution of heroin and crack cocaine in Providence, and the importation of firearms onto the streets of Providence. Simultaneously, and in close coordination, the FBI’s Safe Street Task Force and Providence Police began targeting gang members and associates engaged in violent crime, including gun crimes, in Providence.
Information gathered during these investigations led to a separate investigation by DEA, ATF, Providence Police, and state and federal prosecutors, which resulted in the interruption of the flow of illegal firearms into Providence from Greenville, North Carolina, and the arrest of Kinmonte Brown and Dennis Wells.
According to information presented to the court, beginning in late November 2014, and continuing through January 2015, a person working at the direction of DEA began a series of negotiations with Brown and Wells for a shipment and purchase of illegal firearms. The ongoing negotiations led to a series of sales and the delivery of a total of 15 illegal firearms and ammunition shipped from North Carolina to Providence by Brown and Wells. Each time firearms were delivered they were quickly secured by law enforcement.
On January 31, 2015, as previously arranged by a person working at the direction of DEA, Brown and Wells drove to Rhode Island from North Carolina to sell and deliver seven firearms, including a .357 magnum revolver with an obliterated serial number, a .38 caliber handgun and several shotguns and rifles. Browns and Wells were detained moments after they delivered the firearms.
The case was prosecuted in federal court by Assistant U.S. Attorney Paul F. Daly, Jr. and Joseph J. McBurney, Special Assistant R.I. Attorney General.
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Contact:
Jim Martin (401) 709-5357
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Colorado Couple Sentenced in R.I. on Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Jessica Garrett, 32, and John Baker, 39, of Wiggins, Colo., have been sentenced to federal prison for being felons in possession of a firearm. The couple, previously convicted of felony crimes, was arrested by Central Falls, R.I., police in May 2015, after an investigation resulted in the seizure of a loaded semi-automatic assault rifle from a truck the couple was traveling in.
Jessica Garrett was sentenced yesterday to 36 months in federal prison. Baker was sentenced today to 46 months in federal prison. Garrett and Baker were also ordered to serve 3 years supervised release upon completion of their prison terms. Garrett and Baker pleaded guilty in September to being a felon in possession of a firearm.
The sentences, imposed by U.S. District Court Chief Judge William E. Smith, are announced by United States Attorney Peter F. Neronha and Central Falls Police Chief Colonel James J. Mendonca.
According to court records and information presented to the court, on May 13, 2015, Central Falls Police detectives developed information that a couple that recently arrived in Central Falls from Colorado was attempting to sell a firearm. The investigation determined that the firearm, a semi-automatic assault rifle, was being stored inside a pick-up truck in which the couple was traveling.
Later that evening, detectives approached the couple as they were attempting to enter the pick-up truck. John Baker was immediately detained. Jessica Garrett was apprehended as she attempted to flee. Inside Garrett’s handbag detectives found a magazine containing 12 rounds of rifle ammunition. During a court authorized search of the truck, which had Iowa license plates and that had recently been reported stolen in Colorado, detectives seized a loaded semi-automatic assault rifle with 28 rounds of ammunition. Baker and Garrett have been detained since their arrest.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
ATF assisted Central Falls Police Department detectives in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Former Postal Employee Sentenced to Prison in Mail Theft ConspiracyRead the Press Release
PROVIDENCE, R.I. – Erick Vera-Garzon, 36, of Providence, was sentenced today to 36 months in federal prison for his role in a conspiracy to steal U.S. Treasury checks from the mail and either sell them on the street or deposit them in bank accounts opened with stolen or fraudulent personal information. The bank funds were then withdrawn or used to make retail purchases with the use of debit cards.
An investigation by the Providence Police Department Intelligence and Organized Crime Unit and the United States Postal Service (USPS) Office of Inspector General (OIG) resulted in the seizure of approximately $1.6 million dollars worth of stolen U.S. Treasury checks, dozens of stolen gift cards, and more than $165,000 in proceeds gained as a result of the sale of stolen checks and gift cards.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Vera-Garzon to serve two years supervised release upon completion of his prison term. Vera-Garzon pleaded guilty on September 23, 2015, to conspiracy, theft of mail and theft of public money or property.
Vera-Garzon’s sentence is announced by United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr. and Eileen Neff, Special Agent in Charge of the United States Postal Service Office of Inspector General, Northeast Area Field Office.
Joan Manuel Mustafa, 28, of Providence, a former co-worker of Vera-Garzon, pleaded guilty on October 21, 2015, to conspiracy, theft of mail and theft of public money or property. He is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 8, 2016.
According to court documents and information presented to the court, in September 2014, USPS-OIG agents began investigating the disappearance of U.S. Treasury checks addressed to individuals in Rhode Island and nearby Massachusetts. The missing checks were handled by employees at the U.S. Mail Providence Processing and Distribution Center. At the same time, independent of the USPS-OIG investigation, a Providence Police Department detective developed information that Vera-Garzon was selling stolen U.S. Treasury checks at 20% of face value to buyers on the streets of Rhode Island and New York. The investigation determined that many of the stolen checks were deposited in bank accounts that had been opened in Rhode Island, Massachusetts and New York in the names of some of the individuals whose checks had gone missing. The funds were then drawn down by cash withdrawals from ATMs, the purchase of goods and services, and the purchase of money orders.
Based on the information developed by the Providence Police Department Intelligence and Organized Crime Unit, court authorized search warrants were obtained and executed at Mustafa and Vera-Garzon’s residences on April 16, 2015. Law enforcement seized more than 900 stolen U.S. Treasury checks valued at approximately $1.6 million dollars, several dozen gift cards and more than $53,000 in cash. Vera-Garzon and Mustafa were arrested on April 16, 2015.
The cases are being prosecuted by Assistant U.S. Attorneys Gerard B. Sullivan and Richard W. Rose.
Agents from the Veterans Administration Office of Inspector General and the U.S. Treasury Office of Inspector General assisted agents from the United States Postal Service Office of Inspector General and detectives from the Providence Police Intelligence and Organized Crime Unit in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
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Providence Man Pleads Guilty to Sex Trafficking, Child Pornography ChargesRead the Press Release
PROVIDENCE, R.I. – Dujuan Harris, 35, of Providence, R.I., pleaded guilty in U.S. District Court in Providence on Tuesday to trafficking a 17-year-old girl from Texas to Rhode Island for the purpose of offering her for commercial sexual activity, and to being in possession of photographs of the minor victim in various stages of undress.
Appearing before U.S. District Court Chief Judge William E. Smith, Harris admitted to the court that after he befriended the victim on the Internet, he communicated with her via cell phone, text messages and Skype. Harris admitted to the court that in June 2015, he facilitated the victim’s travel to Rhode Island. Harris paid for the victim to travel to Boston where he met her and then brought her to Providence. Once in Providence, he repeatedly offered the victim for commercial sexual activity.
Harris pleaded guilty to one count each of sex trafficking of a child and possession of child pornography, announced United States Attorney Peter F. Neronha, Providence Police Chief Colonel Hugh T. Clements, Jr., and Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations for New England.
According to information presented to the court, after befriending the victim on the Internet, Harris convinced the teenager to provide photographs to him in various stages of undress. Within a few days of her arrival in Providence, Harris took additional photographs of the victim in various stages of undress and posted some of the photographs of her in an ad on Backpage.com.
According to an investigation by the Providence Police Department and agents from Homeland Security Investigations, the response to the ad was immediate and numerous sexual encounters for a fee with the 17-year-old were arranged. All of the payments were turned over to Harris. When Harris told the young woman that he wanted to increase the number of sexual encounters as a way to increase the amount of money she was earning, the young woman told Harris she no longer wanted to participate. After discovering that the young woman had attempted to communicate with her family in Texas, Harris removed the battery from the victim’s cell phone and on several occasions refused to allow her to leave his Providence apartment.
On June 30, 2015, HSI agents, Providence Police detectives and members of the Human Trafficking Task Force located the victim in an apartment in Providence. Following the rescue of the victim, law enforcement discovered numerous nude photographs of the 17-year-old victim on Harris’ cell phone. Harris was arrested.
According to information presented to the court, since his arrest and detention at the Adult Correctional Institute, despite a no-contact order, Harris has contacted the victim more than 100 times.
Harris is scheduled to be sentenced by U.S. District Court Judge William E. Smith on March 4, 2016.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
Prosecutors from the Rhode Island Department of the Attorney General are assisting the United States Attorney’s Office in the prosecution of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Six Indicted in Alleged Mortgage Fraud, Bank Fraud, Identity Theft SchemeRead the Press Release
PROVIDENCE, R.I. – A 22-count federal grand jury indictment unsealed in U.S. District Court in Providence on Thursday charges six individuals, including a Rhode Island real estate attorney, a real estate agent, a licensed loan originator, a former loan officer, a loan processor and a real estate investor, with allegedly participating in a conspiracy to obtain money they were not entitled to from financial institutions and individuals through mortgage loans, residential property sales and fees.
The indictment represents the latest federal charges to be filed in a wide-ranging series of ongoing investigations by the United States Attorney’s Office, the U.S. Department of Housing and Urban Development Office of Inspector General, the U.S. Secret Service and the Rhode Island State Police Financial Crimes Unit into alleged mortgage fraud in Rhode Island.
According to the indictment returned on Wednesday, it is alleged that between 2007 and 2014, the defendants conspired to execute a scheme which caused prospective homebuyers to obtain mortgages from financial institutions based upon materially false loan applications and fraudulent supporting documentation. It is also alleged that as part of the conspiracy, false representations were made in order to obtain fees to which the defendants were not entitled or to make a profit selling property in which they had an ownership interest. It is further alleged that in some instances, thousands of dollars were fraudulently obtained by misrepresenting on a Housing and Urban Development form the amount of funds due or to be paid to one of the parties involved in a transaction.
It is alleged that in numerous instances, the defendants concealed their involvement in the scheme by conducting business under the names of several different entities and individuals. It is alleged that at times, the defendants used stolen identities to further the fraud and to conceal their connection to the real estate transactions.
The indictment is announced by United States Attorney Peter F. Neronha; Christina D. Scaringi, Special Agent in Charge of the Northeast Region of the U.S. Department of Housing and Urban Development Office of Inspector General; Ted A. Arruda, Resident Agent in Charge of the Providence Office of the U.S. Secret Service; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
The indictment charges:
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Attorney Louis Marandola, 41, of Providence, R.I., with one count of conspiracy, five counts of bank fraud, three counts of wire fraud and six counts of aggravated identity theft.
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Brian R. McCaffrey, 38, of East Greenwich, R.I., a licensed loan originator, with one count of conspiracy, two counts of bank fraud and two counts of aggravated identity theft.
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Raffaele M. Marziale, 41, of Bristol, R.I., a former loan officer, with one count of conspiracy, two counts of bank fraud and two counts of aggravated identity theft.
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Lauren Sienko, 33, of Rehoboth, Mass., a loan processor, with one count of conspiracy, two counts of bank fraud and one count of aggravated identity theft.
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Gina M. Ronci Mohamed, 45, of Lincoln, R.I., a licensed real estate agent, with one count of conspiracy, two counts of bank fraud, two counts of aggravated identity theft, and one count of false statement.
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Edwin Rodriguez, 35, of Pawtucket, R.I., a real estate investor, with one count of conspiracy, once count of bank fraud, two counts of aggravated identity theft and two counts of witness tampering.
Attorney Louis Marandola, Edwin Rodriquez and Lauren Sienko were released on unsecured bond following their arraignment on Thursday before U.S. District Court Magistrate Judge Patricia A. Sullivan. Brian McCaffrey, Raffaele Marziale and Gina Ronci Mohamed were released on unsecured bond following their arraignment today before Magistrate Judge Patricia A. Sullivan. Not guilty pleas were entered on behalf of all of the defendants.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt. This indictment reflects the most recent charges filed by the U.S. Attorney’s Office in a wide-ranging series of ongoing investigations into alleged mortgage fraud in Rhode Island.
In September, Franchesco Franco, 34, of Providence, a former mortgage loan originator, pleaded guilty to conspiracy to commit bank fraud. Franco admitted to participating in a scheme to defraud Flagstar Bank, by filing a fraudulent mortgage loan application and supporting documentation in the name of a person known to him who is deceased.
In a separate matter, it is alleged that Dylan T. Kelly, 40, of Providence, whose real estate appraiser’s license expired in September 2008, continued to conduct and issue real estate appraisals using the identity, license and insurance certificate of a licensed appraiser without his permission or knowledge. Kelley is charged by way of an information with false statements on a loan application.
The cases are being prosecuted by Assistant U.S. Attorneys Sandra R. Hebert and William J. Ferland.
Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
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Appellate Court Denies Estate Planner’s Attempt to Vacate Guilty Plea; Leaves Prison Term, Restitution Order IntactRead the Press Release
PROVIDENCE, R.I. – The First Circuit Court of Appeals today let stand a District Court ruling denying motions by Joseph A. Caramadre to withdraw his guilty plea to conspiring to steal and use the identities of terminally-ill patients to obtain millions of dollars in illicit profits from insurance companies and bond issuers, and left intact a sentence of 6-years in federal prison imposed by U.S. District Court Chief Judge William E. Smith.
Joseph A. Caramadre, president, CEO and majority owner of Estate Planning Resources in Cranston, R.I., was sentenced on December 16, 2013, to 72 months in federal prison to be followed by 3 years supervised release, during which time he is required to perform 3,000 hours of community service to the elderly and terminally-ill individuals. Caramadre was also ordered to pay restitution in the amount of $46 million dollars.
Caramadre pleaded guilty on November 19, 2012, to conspiracy to commit identity theft and wire fraud, as the second week of testimony in his federal court jury trial was scheduled to begin. Prior to sentencing, Caramadre attempted to withdraw his guilty plea, however his motion to withdraw the guilty plea was denied by Chief Judge William E. Smith.
At the time of his guilty plea, Caramadre admitted to the court that he, and a co-defendant, Raymour Radhakrishnan, an employee of Caramadre, made misrepresentations to terminally-ill and elderly patients and their family members in order to obtain their personal identity information. They used the information, including names; dates of birth; and social security numbers, to obtain more than 200 variable annuities and to open more than 75 brokerage accounts in order to purchase “death-put" bonds in the victims’ names without their knowledge and consent. Caramadre and Radhakrishnan either forged the signatures of terminally-ill people on account documents, or obtained by means of misrepresentations. When the terminally- ill person died, Caramadre and others reaped substantial profits by exercising death benefits associated with the investments.
“The road has been a long one, but the defendant’s quixotic and seemingly inexhaustible attempts to escape the consequences of his reprehensible criminal conduct are finally at an end,” commented United States Attorney Peter F. Neronha. “Perhaps he can spend the remainder of his six year prison sentence reflecting on his greed and his victimization of the most vulnerable, instead of dreaming up Hail Mary legal arguments.”
The matter was argued before the First Circuit Court of Appeals by Assistant U.S. Attorney Donald C. Lockhart. The criminal case was prosecuted in U.S. District Court by Assistant U.S. Attorneys Lee H. Vilker and John P. McAdams.
The matter was investigated by the United States Attorney’s Office and the FBI, with the assistance of the U.S. Postal Inspection Service and IRS Criminal Investigation.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
R.I. U.S. Attorney’s Office Collects More Than $6 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2015Read the Press Release
PROVIDENCE - U.S. Attorney Peter F. Neronha announced today that the United States Attorney’s Office for the District of Rhode Island collected $6,130,353.07 in criminal and civil actions in Fiscal Year 2015. Of this amount, $2,626,122.75 was collected in criminal actions and $3,504,230.32 was collected in civil actions.
Additionally, Rhode Island worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $16,878,661.95 in cases pursued jointly with these offices. Of this amount $16,878,401.95 was collected in civil actions.
Attorney General Loretta E. Lynch announced today that the Justice Department collected $23.1 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2015. The more than $23.1 billion in collections in FY 2015 represents more than seven and a half times the approximately $2.93 billion of the Justice Department’s combined appropriations for the 93 U.S. Attorneys’ offices and the main litigating divisions in that same period.
“The Department of Justice is committed to upholding the rule of law, safeguarding taxpayer resources, and protecting the American people from exploitation and abuse,” said Attorney General Loretta Lynch. “The collections we are announcing today demonstrate not only the strength of that commitment, but also the significant return on public investment that our actions deliver. I want to thank the prosecutors and trial attorneys who made this achievement possible, and to reiterate our dedication to this ongoing work.”
United States Attorney Peter Neronha commented, “The mission of this Office is broad in scope, and includes a commitment to protect the public’s financial and other resources. Public or private, those who harm the environment, engage in financial fraud, or take financial advantage of victims or the public generally, will continue to receive the full attention of both this Office’s Civil and Criminal Divisions, as will those who pose a threat to national security, who violate the public trust, who commit crimes of violence, or who engage in sex trafficking, particularly of minors.”
In 2015, collections included $2,605,661 from American Access Care in settlement to resolve allegations of violations of the False Claims Act; $8,000,000 collected in cooperation with the Eastern District of Wisconsin from PharMerica Corporation in settlement of allegations of violations on the Controlled Substances Act; collection of $450,000 from CVS Health in settlement for allegations of violations of the Controlled Substances Act; and, $127,500 from Wal-Mart, Inc. in settlement of False Claims Act violations for claims submitted to Medicaid.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety or environmental laws. In addition, civil debts were collected on behalf of several federal agencies such as the Internal Revenue Service and Health and Human Services.
Additionally, the U.S. Attorney’s Office in Rhode Island, working with partner agencies and divisions, collected $8,261,533 in asset forfeiture actions in FY 2015. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
In the District of Rhode Island, the Financial Litigation Unit, working closely with the Asset Forfeiture Unit, collected a total of $2,389,896.28 through its Asset Forfeiture Restoration Program. Included in the above amount is $2,339,210.22 that the District collected from Rocco DeSimone, a former Rhode Island art dealer convicted of defrauding investors. DeSimone was sentenced to 16 years in prison in July 2011, on eight counts of money laundering and mail fraud. The assets that were either sold or returned directly to victims include a 2006 Ford GT sports car which sold at auction for $189,000, a painting by French impressionist Pierre-Auguste Renoir known as "Paysage a Cagnes," which sold at auction for $551,500, and an assortment of Japanese swords.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Gang Associate Sentenced to Federal Prison on Drug Trafficking and Firearms ChargesRead the Press Release
PROVIDENCE, R.I. – Antonio Fortes, 25, of Cranston, an associate of the YNIC street gang, was sentenced today to 48 months in federal prison on drug trafficking and firearm charges, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Fortes to serve 3 years supervised release upon completion of his prison term, the first six months to be served in home confinement. Fortes pleaded guilty on September 15, 2015, to one count each of possession with the intent to distribute heroin, possession with the intent to distribute crack cocaine and being a felon in possession of a firearm.
Fortes is also facing murder, assault and weapons charges in Rhode Island state court for his alleged role in the October 22, 2014, shooting in Providence that resulted in the death of Terry Robinson. Fortes is charged with one count of murder, three counts of discharge of a firearm while in the commission of a crime of violence, two counts of assault with a dangerous weapon, two counts of carrying a firearm without a license, and one count of conspiracy.
According to federal court documents and information presented to the court, an investigation by ATF agents into Fortes drug trafficking activities included controlled purchases of crack cocaine and repeated surveillance by law enforcement. The investigation culminated with the execution of a court authorized search of Fortes’ residence on March 24, 2015, which resulted in the seizure of numerous packets of heroin, crack cocaine and a loaded .45 caliber handgun.
The case was prosecuted by Assistant U.S. Attorneys Milind M. Shah, with the assistance of Assistant U.S. Attorney William J. Ferland.
Law enforcement officers from the Cranston, Pawtucket and Providence Police Departments assisted agents from ATF in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Convicted Felon Sentenced to 7 Years in Prison on Firearm ChargeRead the Press Release
PROVIDENCE, R.I. – Momoh Fahnbulleh, 38, of Providence, was sentenced today to 84 months in federal prison for being a felon in possession of a firearm, announced United States Attorney Peter F. Neronha and Providence Police Chief Colonel Hugh T. Clements, Jr.
At sentencing, U. S. District Court Chief Judge William E. Smith also ordered Fahnbulleh to serve three years supervised release upon completion of his prison term. Fahnbulleh pleaded guilty on March 2, 2015, to a single-count indictment charging him with being a felon in possession of a firearm.
According to court records and information presented to the court, in October 2013, as a result of information developed during an investigation into Fahnbulleh’s alleged drug trafficking activities, Providence Police sought and executed a court authorized search warrant at Fahnbulleh’s residence. During the search, detectives and officers seized a loaded 9mm semi-automatic handgun. There were 15 rounds of ammunition in the magazine and one in the pistol’s firing chamber.
Additionally, law enforcement seized numerous items used in the packaging and distribution of cocaine.
Fahnbulleh has been detained since his arrest on October 3, 2013.
According to court records, Fahnbulleh was previously convicted in Rhode Island state court on multiple felony charges, including drug trafficking and firearm charges.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
Agents from ATF assisted Providence Police in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Mass. Resident Detained in R.I. on Stolen Firearms, Bank Fraud ChargesRead the Press Release
PROVIDENCE, R.I. – Edwin William Rosa, 45, of Peabody, Mass., was ordered detained in federal custody today by U.S. District Court Magistrate Judge Lincoln D. Almond following an initial appearance in federal court in Providence on charges that he allegedly purchased eight guns from firearms dealers in Massachusetts using bogus bank checks, and that he allegedly sold the stolen guns to firearms dealers in Rhode Island.
Rosa is charged by way of a federal criminal complaint with possession of stolen firearms and bank fraud. The charges are announced by United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
It is alleged in court documents that between September 8 and September 30, 2015, Rosa used personal checks from closed bank accounts to purchase eight firearms from registered firearms dealers in Massachusetts, and that he then sold the firearms to registered firearms dealers in Rhode Island for immediate payment in cash or by check.
According to an affidavit in support of an arrest warrant and criminal complaint in this matter, Rosa’s alleged possession of stolen firearms arises from his theft of the firearms as well as his possession of those stolen firearms up to the point of sale to other firearms dealers. Rosa’s alleged bank fraud arises from his alleged scheme to defraud banks through the issuance of “bad” checks designed to draw funds from financial institutions.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by ATF, with the assistance of the Smithfield, R.I., and Seekonk, Fall River and Somerset, Mass., Police Departments.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Providence Man Pleads Guilty to Sex Trafficking, Conspiracy to Traffic HeroinRead the Press Release
PROVIDENCE, R.I. – Damien Beverly, 29, of Providence, has pleaded guilty in federal court to charges that he trafficked two women from Boston to Rhode Island for the purposes of offering them for commercial sexual activity and that he conspired to traffic heroin, which he provided to the women as payment, announced United States Attorney Peter F. Neronha, Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations (HSI) for New England, and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
Appearing before U.S. District Court Chief Judge William E. Smith on Thursday, Beverly pleaded guilty to one count of conspiracy, two counts of transportation to engage in prostitution and one count of conspiracy to distribute heroin.
A second individual charged in this matter, Tariq Rosario, 28, of Boston, Mass., pleaded guilty on Thursday to one count of conspiracy to distribute heroin.
According to court records and information presented to the court, an investigation by agents from Homeland Security Investigations and members of the Rhode Island State Police, law enforcement members of the Rhode Island Human Trafficking Task Force, in June or July 2014, Damien Beverly encountered one of the victims in downtown Boston. The woman was brought to a hotel room in Warwick rented by Beverly, where he photographed her and persuaded her to post an advertisement on Backpage.com, with the intent that she engage in commercial sexual activity. Over the next several days, several individuals responded to the advertisement. All of the money collected by the victim was turned over to Beverly, who in exchange provided the woman with heroin that he obtained from Tariq Rosario.
In September 2014, Beverly met a second woman on the streets of Boston where she was homeless and addicted to heroin and cocaine. He persuaded her to travel to Rhode Island, promising her that he would provide her with housing and drugs in exchange for working as a prostitute. The woman resided with Beverly in Providence, during which time they posted numerous advertisements on Backpage.com offering the woman for commercial sexual activity. All of the money earned by the victim was turned over to Beverly in exchange for housing, food and a daily supply of heroin.
In late September or early October 2014, the first victim, who had since returned to Boston, was persuaded to return to Rhode Island, and to live and work with Beverly and the second victim. All of the money earned by both women was turned over to Beverly. In exchange for working as prostitutes, Beverly provided the victims with between 3-5 grams of heroin daily, which he obtained from Tariq Rosario.
Based on information developed by the Rhode Island Human Trafficking Task Force, in January 2015, members of the Rhode Island State Police, and HSI and FBI agents executed a court authorized search warrant at the Providence residence where the victims were staying with Beverly. Beverly was detained and the victims were rescued by law enforcement and provided support services.
Damien Beverly, who has been detained since his arrest on January 13, 2015, and Tariq Rosario, who has been detained since his arrest on September 18, 2015, are scheduled to be sentenced on February 5, 2016.
The case is being prosecuted by Assistant U.S. Attorney Adi Goldstein.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Business Executive Indicted for Failing to Pay More than $250,000 in Child Support ObligationsRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence returned a two-count indictment on Thursday charging Christopher Carroll, 47, formerly of Jamestown, R.I., with allegedly travelling in interstate and outside the country to evade paying more than $250,000 in child support payments for his three minor children, age 9, 11 and 14, announced United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General.
According to court documents, it is alleged that Carroll, a former senior marketing executive with an international energy management company based in Paris, France, and which operates a facility in West Kingston, R.I., ceased paying Rhode Island Family Court ordered child support payments of $6,000 per month in January 2013, two years after the court ordered the payments to begin. On June 17, 2013, a Rhode Island Family Court judge ruled that Carroll was in contempt of court for failing to meet his child support obligations, which to date totals more than $250,000.
According to court documents, during the pendency of his child support obligations, Carroll, who has had numerous investment accounts, withdrew at least $369,329.31 from those accounts.
The indictment charges Christopher Carroll with interstate travel to avoid child support obligation and failure to pay child support. An arrest warrant has been issued for Carroll, who is believed to be traveling abroad.
According to court documents, in May 2012, Carroll relocated to his employer’s Paris headquarters where he was employed until October 2012. Since that time, according to court documents, Carroll remarried, renounced his U.S. Citizenship and has been traveling abroad utilizing a Republic of Ireland passport. According to court documents, Carroll and his current wife identify themselves as being semi-retired, and have stated that they have spent the past year traveling in Europe, Central and South America, Canada and the United States.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose. The matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General, with the assistance of the Rhode Island Child Support Enforcement Office.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Veterans’ Cemetery Worker Ordered to Serve Veterans, Probation for Stealing GravestonesRead the Press Release
PROVIDENCE, R.I. – Kevin Maynard, 59, of Charlestown, R.I., a former employee at the Rhode Island Veteran’s Memorial Cemetery in Exeter, was ordered today to perform 200 hours of community service in the service of veterans as part of his sentence of 12 months’ probation for stealing granite gravestones and other items from the Veterans’ Memorial Cemetery, announced United States Attorney Peter F. Neronha; Jeffrey Hughes, Special Agent in Charge, Department of Veterans Affairs, Office of Inspector General (VA OIG), Northeast Field Office; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
The sentence was imposed by U.S. District Court Chief Judge William E. Smith. Maynard pleaded guilty on July 28, 2015, to theft of government property.
According to court documents, over a lengthy period of time, Maynard removed worn or broken grave markers from the cemetery and brought them to his Charlestown residence. On April 23, 2015, a VA-OIG agent and a Rhode Island State Police detective accompanied Maynard to his home where investigators discovered at least 150 veterans’ grave markers being used as flooring for a shed and two make-shift garages. Investigators also located additional markers on the property and a box of American flags belonging to the Veterans’ Cemetery.
According to Government regulations, all Government-furnished headstones/markers/ medallions remain the property of the United States Government in perpetuity and that the “destruction, mutilation, defacement, injury, or removal of any monument, gravestone, or other structure within the limits of any national cemetery is prohibited.”
The case was prosecuted by Assistant U.S. Attorney John P. McAdams.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Providence Felon Detained on Drug Trafficking, Firearms ChargesRead the Press Release
PROVIDENCE, R.I. - Thealeah Duopu, 39, of Providence, was ordered detained in federal custody today following an initial appearance in federal court in Providence on charges of trafficking crack cocaine, and for being a felon in possession of a firearm and for using the firearm in furtherance of his alleged drug trafficking activities.
United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF, announced the arrest and detention of Duopu, which comes following a nearly month-long investigation of Duopu’s alleged drug trafficking and gun crime related activities. The investigation allegedly included several purchases of crack cocaine by an undercover ATF agent from Duopu and a court authorized search of Duopu’s residence.
Duopu was ordered detained by U.S. District Court Magistrate Judge Patricia A. Sullivan following an initial appearance on a criminal complaint charging Duopu with possession of 28 grams or more of cocaine base with intent to distribute, distribution of 28 grams or more of cocaine base, distribution of cocaine base, possession of firearms in furtherance of a drug trafficking crime and being a felon in possession of firearms.
A complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
According to court documents, beginning on October 19, 2015, and continuing until yesterday, an ATF undercover agent allegedly arranged on at least four occasions for the purchase of varying amounts of crack cocaine from Duopu. In each alleged instance, the amount of crack cocaine allegedly ordered from Duopu and delivered to the agent by Duopu increased substantially from the previous transaction. The alleged purchases and deliveries ranged from approximately 8 grams on October 20, 2015, to approximately 52 grams on November 3, 2015. Each alleged transaction occurred at an agreed upon location in a parking lot in Pawtucket.
According to court documents, on Tuesday of this week, an ATF undercover agent allegedly arranged with Duopu to again purchase crack cocaine. They allegedly agreed to meet in Pawtucket on Thursday to complete the transaction. On Thursday, as Duopu left his residence allegedly to meet with the agent, he was detained by members of the ATF Task Force. A court authorized search of Duopu’s alleged stash house and of his person resulted in the seizure of crack cocaine, a loaded firearm, cash, and items used in the packaging and distribution of crack cocaine.
As a result of the alleged undercover purchases of crack cocaine from Duopu, the court authorized search of his alleged stash house and of his person, law enforcement seized 233.3 grams of crack cocaine, a loaded semi-automatic handgun and $20,538 in cash.
According to court records, Duopu was previously convicted in Rhode Island state court on firearm and drug charges.
The case is being prosecuted by Assistant U.S. Attorneys Milind M. Shah and Paul F. Daly, Jr.
Pawtucket Police and the Providence Arson Squad assisted the ATF Task Force in the investigation of this matter. The ATF Task Force consists of agents and officers from ATF; Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Financial Customer Service Specialist Sentenced for Bilking Deceased Sisters’ Estate of $1.2 Million DollarsRead the Press Release
PROVIDENCE, R.I. – Ronald Hunt, 45, of Collinsville, Ill., a former financial customer service specialist for Columbia Management Investment Services (CMIS), a subsidiary of Ameriprise Financial, was sentenced today to 18 months in federal prison for defrauding the estate of two deceased sisters from Galway, Ireland, of more than $1.2 million dollars, announced United States Attorney Peter F. Neronha and Ted A. Arruda, Resident Agent in Charge of the Providence Office of the United States Secret Service.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Hunt, formerly of Bristol, R.I., to serve two years supervised release and 100 hours of community service upon completion of his prison sentence. Hunt pleaded guilty on July 16, 2015, to wire fraud.
According to court documents, in March 2013, while working at a CMIS call center in Providence, Hunt used his position to research deceased clients who had unredeemed Ameriprise Financial accounts and no listed beneficiaries. Hunt identified two such accounts belonging to deceased sisters in Galway, Ireland.
According to court documents, in May 2013, Hunt submitted redemption paperwork for the two sisters’ accounts, using the alias “Sean Kane,” as the executor for the accounts. On May 20, 2013, using the alias, Hunt transferred $769,242.24 from one sister’s account and $459,531.91 from the second sister’s account into a CMIS account he created. Two days later he transferred the entire amount, $1,228,774.15, to a fictitious business bank account he created. On May 23, 2013, and again on August 29, 2013, Hunt withdrew funds totaling $750,000 from the business account.
Amerprise Financial recovered nearly all of the stolen funds. At sentencing, U.S. District Court Chief Judge Smith ordered Hunt to pay restitution in the amount of nearly $21,000, which represents the balance of the amount of money stolen from the sisters’ estates which was not previously recovered.
The case was prosecuted by Assistant U.S. Attorney Terrence P. Donnelly, with the assistance of Assistant U.S Attorney John P. McAdams.
The matter was investigated by the United States Secret Service, with the assistance of the Securities and Exchange Commission, Division of Enforcement.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Former Dance Instructor Pleads Guilty to Interstate Travel to Engage in Illicit Sexual ConductRead the Press Release
PROVIDENCE, R.I. – Keith Sampson, 37, formerly of Providence, RI, pleaded guilty in federal court in Providence today to interstate travel to engage in illicit sexual conduct, admitting to the court that in December 2007 he transported one of his dance studio students, a fifteen-year-old girl, from Rhode Island to Easton, Mass., for the purpose of engaging in illicit sexual conduct, announced United States Attorney Peter F. Neronha and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
According to court documents and information presented to the court, on December 29, 2007, the girl had been left in Sampson's care by her mother on the pretense that she would be spending the night at Sampson's Providence residence in the company of his wife and child. Instead, Sampson admitted to the court that he drove the victim to the home of a relative in Easton, Mass., where he provided the victim with alcohol and then sexually assaulted her.
According to court documents, the assault of the fifteen-year-old victim occurred while Sampson was awaiting trial in Massachusetts state court on two counts of statutory rape of a child in an unrelated matter. In that case, on January 10, 2008, a jury found Sampson guilty of one count of statutory rape. He was sentenced in February 2008 to serve not less than four and not more than seven years' imprisonment in Massachusetts state prison as a result of this conviction.
Additionally, based on the December 29, 2007, assault of his dance studio student, Sampson was indicted and charged in Massachusetts state court with rape of a child with force and providing liquor to a person under 21. He pleaded guilty to the charges on November 14, 2011, and was sentenced to not less than two-and-a-half and not more than three years' imprisonment, to be served consecutively to the sentence he received as a result of his January 2008 conviction.
In total, Sampson served approximately seven years in prison in Massachusetts. Upon his release from Massachusetts state prison, Sampson was placed in federal custody and brought to Rhode Island to face charges in U.S. District Court in Providence brought as a result of the December 2007 assault.
Sampson is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 29, 2016.
The case is being prosecuted in federal court in Providence by Assistant U.S. Attorneys Richard W. Rose and Zachary A. Cunha.
The matter was investigated by the FBI, with the assistance of the Warwick, Rhode Island, and Easton, Massachusetts, Police Departments.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Tax Preparer to Plead Guilty to Tax and Wire FraudRead the Press Release
PROVIDENCE, R.I. – According to an information and plea agreement filed today in U.S. District Court in Providence, Leon F. Tejada, 50, of Providence, operator of El Centro Multiservicios, LLC, a tax preparation service in Providence, has agreed to plead guilty to federal tax and wire fraud charges, announced United States Attorney Peter F. Neronha and William P. Offord, Special Agent in Charge of IRS Criminal Investigation.
According to the court documents, it is alleged that during tax years 2009 through 2012, Tejada, without the knowledge of his clients, created and falsified clients’ dependents, exemptions, tax credits, deductions and expenses in order to increase the amount of tax refund due to the clients. It is alleged that the scheme resulted in a loss to the United States of $54,440.
It is also alleged that Tejada devised a scheme to divert his clients’ tax refunds through a bank clearing house, at which time, without the knowledge of his clients, a portion of the funds were diverted into his own bank account for his own personal use. It is alleged that Tejada diverted $24,987 into his own bank account.
An information is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The matter was investigated by Internal Revenue Service Criminal Investigation.
The case is being prosecuted by Assistant U.S. Attorney Richard W. Rose.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Convicted Felon Detained After Allegedly Stealing Six FirearmsRead the Press Release
PROVIDENCE, R.I. – Anthony Jenkins, 51, of Providence, has been ordered detained in federal custody following his initial appearance in federal court in Providence on Thursday on a criminal complaint charging him with being a felon in possession of a firearm and possession of stolen firearms. Jenkins was arrested by members of an ATF task force moments after he allegedly stole six firearms from a garage in Cranston.
Jenkins’ arrest is announced by United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of ATF.
According to court documents and information presented to the court, members of the ATF task force became aware of Jenkins alleged plans to steal the firearms and to sell some of them. Jenkins was apprehended by members of the task force immediately after he allegedly stole the guns. When apprehended, Jenkins allegedly had six firearms and ammunition in his possession.
According to court records and information presented to the court, Jenkins’ criminal history includes at least 13 felony convictions, including drug trafficking, robbery and assault.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF Task Force consists of agents and officers from ATF; Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections.
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Alleged Gang Member Detained for Allegedly Trafficking Crack CocaineRead the Press Release
PROVIDENCE, R.I. – Jaheem Benton, 26, of Pawtucket, an alleged member of the YNIC street gang, has been ordered detained in federal custody for allegedly trafficking crack cocaine, announced United States Attorney Peter F. Neronha and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Benton was arrested on Wednesday by members of an ATF Task Force consisting of federal and local law enforcement agents and officers who have been investigating for the past several months Benton’s alleged gang and drug trafficking activities. Benton was ordered detained on Thursday during his initial appearance in U.S. District Court before U.S. District Court Magistrate Judge Lincoln D. Almond on a criminal complaint charging him with possession of crack cocaine with the intent to distribute.
According to court documents and information presented to the court, it is alleged that on at least six occasions since January, Benton allegedly sold a person who was assisting law enforcement in their investigation of Benton plastic baggies containing crack cocaine. Each of the alleged transactions was monitored by law enforcement.
A court authorized search of Benton’s residence on Wednesday resulted in the seizure of approximately 1.2 grams of crack cocaine and numerous items used in the packaging and distribution of crack cocaine.
According to court records and information presented to the court, Benton was previously convicted in Rhode Island state court on multiple counts of assault and multiple firearms charges.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney Milind M. Shah.
The ATF Task Force consists of agents and officers from ATF; Providence, Cranston and Central Falls Police Departments; and the Special Investigations Unit at the Rhode Island Department of Corrections. Pawtucket Police assisted the ATF Task Force in the investigation of this matter.
RI Dermatology and Cosmetic Center Pays More Than $150,000 to Settle Allegations of Upcoding Medicare ClaimsRead the Press Release
PROVIDENCE, R.I. – United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New England Region, announced today that Rhode Island Dermatology and Cosmetic Center, LLC, and Rhode Island Dermatology OBS, LLC, of Lincoln, have paid $152,043.25 to resolve civil allegations that they violated the federal False Claims Act by billing Medicare for some patient services and procedures performed at rates higher than were warranted.
Based on an investigation conducted by the U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG) and the United States Attorney’s Office, the United States alleged that, between 2009 and 2014, Rhode Island Dermatology, which provides dermatology, plastic surgery, and cosmetic surgery services, billed Medicare for surgical closure procedures at a higher rate of complexity than was supported by certain patients’ condition or the circumstances of the closure, and which should properly have been classified at a lower billing rate for less complex procedures. The amount that Medicare pays for a given medical or surgical procedure is frequently dependent on the complexity of that procedure. Upcoding, or billing for a level of complexity that is not warranted by a patient’s actual condition and treatment, results in improperly higher payments for care that should have actually been reimbursed by Medicare at a lower rate.
The matter was settled prior to litigation, without an admission of liability or wrongdoing on the part of the practice.
The case was litigated by Assistant U.S. Attorney Zachary A. Cunha.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Providence Resident Pleads Guilty to Participating in Hobbs Act Robbery ConspiraciesRead the Press Release
PROVIDENCE, R.I. – Allen Prout, 43, of Providence, pleaded guilty in federal court in Providence to two counts of conspiracy to commit Hobbs Act robbery, and one count each of possession of a firearm in furtherance of a crime of violence and being a felon in possession of a firearm, admitting to the court that he participated in two separate Hobbs Act robbery conspiracies.
Appearing before U.S. District Court Judge John J. McConnell, Jr., on Thursday, Prout admitted to the court that on June 2, 2014, he and his co-conspirator took possession of firearms they intended to use to commit a home invasion at a drug stash house in Providence, where they believed two kilos of heroin and a substantial amount of cash were being stored. Prout and his co-defendant, Emmett Blyden, 45, of Providence, were arrested after taking possession of the firearms delivered by an individual who was assisting ATF agents. Blyden pleaded guilty on September 22, 2015, to conspiracy to commit Hobbs Act robbery and being a felon in possession of a firearm.
Prout also admitted to the court that he participated in a conspiracy in September 2012 to rob an individual at gun point of money the victim intended to use to purchase a significant quantity of oxycodone pills. According to court records, Prout and his co-defendant, Kiplagatt Stewart, 41, of Providence, posed as drug dealers in order to gain access to the home of the victim. Instead of selling the victim oxycodone pills, Prout and Stewart robbed the victim at gunpoint of approximately $14,000 in cash.
Kiplagatt Stewart, 41, of Providence, was sentenced on October 22, 2015, to 84 months in federal prison. At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered Stewart to serve 3 years supervised release upon completion of his prison term. Stewart pleaded guilty on June 17, 2015, to conspiracy to commit Hobbs Act robbery.
Prout’s guilty pleas and Stewart’s sentence are announced by United States Attorney Peter F. Neronha, West Warwick Police Chief Colonel Richard G. Silva and Daniel J. Kumor, Special Agent in Charge of the Boston field division of ATF.
Allen Prout is scheduled to be sentenced on February 2, 2016. Emmett Blyden is scheduled to be sentenced on January 5, 2016.
The cases are being prosecuted by Assistant U.S. Attorneys Milind M. Shah, with the assistance of First Assistant U.S. Attorney Stephen G. Dambruch and Assistant U.S. Attorney Adi Goldstein.
Providence Police and Rhode Island State Police assisted West Warwick Police and ATF in the investigation of these matters.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Woonsocket Resident Pleads Guilty to Drug Trafficking, Firearm ChargesRead the Press Release
PROVIDENCE, R.I. - Miguel Colon, 55, of Woonsocket, pleaded guilty in federal court in Providence today to charges of trafficking heroin and cocaine, and to carrying a firearm in furtherance of his drug trafficking activities. Colon was arrested in April 2015 by federal, state and local law enforcement upon his return to New England from Texas and Florida with three kilos of cocaine and a loaded firearm found stashed inside a sophisticated hydraulically-controlled hidden compartment inside his vehicle. A subsequent court authorized search of self-storage units rented by Colon resulted in the seizure of nearly 900 grams of heroin.
Appearing before U.S. District Court Chief Judge William E. Smith, Colon pleaded guilty to possession with the intent to distribute 100 grams of more of heroin, possession with the intent to distribute 500 grams or more of cocaine, being a felon in possession of a firearm and carrying a firearm during a drug trafficking crime.
Colon’s guilty plea is announced by United States Attorney Peter F. Neronha; Woonsocket Police Chief Thomas S. Carey; Providence Police Chief Colonel Hugh T. Clements, Jr.; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; and Michael J. Ferguson, Special Agent in Charge of the DEA’s New England Field Division.
According to court documents and information presented to the court, Woonsocket and Providence Police detectives, independent of one another, developed information this past winter that approximately once a month Miguel Colon traveled by vehicle to Texas and/or Florida to obtain large amounts of cocaine and/or heroin, which he then transported back to Rhode Island to distribute. In late April, detectives and officers from the Providence and Woonsocket Police Departments developed information that Colon was on a drug run to Texas and Florida. The investigation determined that Colon and a female companion would be arriving back into Rhode Island in the early morning hours of April 27, 2015.
According to court documents and information presented to the court, in the early morning hours of April 27, numerous local, state and federal unmarked law enforcement vehicles were posted along Route 95 N from the Connecticut border and northward. Law enforcement spotted Colon’s vehicle at about 4:00AM, and followed the vehicle until it came to a stop in a parking lot of a motel in North Attleboro, Mass. Law enforcement quickly surrounded the vehicle and removed Colon. A Rhode Island State Police K-9 indicated the presence of narcotics inside the vehicle.
With the assistance of North Attleboro and Massachusetts State Police, the vehicle was removed to the North Attleboro Police Department where a Massachusetts court authorized search of the vehicle resulted in the discovery of three kilos of cocaine, approximately one pound of marijuana and a loaded semi-automatic firearm inside a sophisticated hydraulically-controlled hidden compartment.
Also located in the vehicle were keys to self-storage units at a Woonsocket storage facility. A Rhode Island court authorized search of two storage units rented by Colon at the Woonsocket storage facility resulted in the seizure of approximately 895 grams of heroin, and various items used in the packaging and distribution of drugs.
A court authorized search of Colon’s residence resulted in the seizure of .380 caliber live ammunition, drug ledgers with amounts of money listed next to names - some of the names on the ledgers were known to Woonsocket Police narcotics detectives as drug dealers in the City of Woonsocket, several small seedling sized marijuana plants and a State of Rhode Island marijuana caregiver card issued to Colon.
Colon, who has been detained in federal custody since his arrest, is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on January 14, 2016.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
R.I. Businessman Sentenced in Multi-million Dollar Tax Refund SchemeRead the Press Release
PROVIDENCE, R.I. – Anthony DelFarno, 53, of East Greenwich, R.I., was sentenced in U.S. District Court in Providence today to 65 months in federal prison for filing fifty-eight fraudulent personal and corporate tax returns between 2008 and 2011, some containing stolen personal identifying information of family members and others, seeking approximately $3.5 million dollars in tax refunds.
At sentencing, U.S. District Court Judge John J. McConnell, Jr., also ordered DelFarno to serve 3 years of supervised release upon completion of his prison sentence and to pay restitution to the government in the amount of $1.4 million. DelFarno pleaded guilty on June 16, 2015, to eleven counts of mail fraud, twenty-eight counts of theft of government funds and three counts of aggravated identity theft.
Delfarno’s sentence is announced by United States Attorney Peter F. Neronha; William P. Offord, Special Agent in Charge of IRS Criminal Investigation; and Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police.
At the time of his guilty plea, DelFarno admitted to the court that he filed twenty-eight false individual income tax returns in his own name, and in the names of several family members, including five of his children, and a girlfriend, without their knowledge, seeking refunds totaling $1.1 million dollars. Approximately $400,000 was paid to the defendant.
Additionally, DelFarno admitted to the court that he filed thirty fraudulent corporate income tax returns, for which he claimed refunds of $2.4 million dollars and was paid approximately $1 million dollars. DelFarno admitted to the court that many of the corporations he formed were formed in order to execute the tax fraud scheme.
The case was prosecuted by Assistant U.S. Attorney Richard W. Rose.
The matter was investigated by the United States Attorney’s Office, IRS Criminal Investigation and Rhode Island State Police.
This law enforcement action is part of President Barack Obama’s Financial Fraud Enforcement Task Force. The President established the interagency Financial Fraud Enforcement Task Force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general, and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources.
The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets, and recover proceeds for victims of financial crimes.
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Jim Martin (401) 709-5357
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Heroin, Crack Cocaine Trafficker Pleads GuiltyRead the Press Release
PROVIDENCE, R.I. – Dennis Bernard, 29, of Cranston, pleaded guilty in U.S. District Court in Providence today to trafficking heroin and crack cocaine, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist and Warwick Police Chief Colonel Stephen M. McCartney.
Bernard was arrested by detectives and officers from the Cranston and Warwick Police Departments on June 26, 2015, following a joint investigation by members of the Cranston Police Special Investigations Unit and the Warwick Police Special Operations Group into Bernard’s drug trafficking activities.
Appearing today before U.S. District Court Chief Judge William E. Smith, Bernard pleaded guilty to possession of heroin with the intent to distribute and possession of crack cocaine with the intent to distribute.
According to court documents, during the late spring and early summer of 2015, members of the Cranston Police Special Investigations Unit and the Warwick Police Special Operations Group worked collaboratively to investigate Bernard’s drug trafficking activities in Cranston and in Warwick. During the investigation, a Warwick undercover detective made several purchases of crack cocaine from Bernard.
On June 24, 2015, law enforcement executed a court authorized search warrant at Bernard’s Cranston residence where they seized approximately 44 grams of crack cocaine and approximately 25 grams of heroin, and $6,251 in cash. Various items used in the packaging and distribution of drugs were also seized.
At the time of Bernard’s arrest, law enforcement seized a BMW automobile, a Rolex watch and other assorted jewelry which the investigation determined was purchased by Bernard with proceeds derived from his drug trafficking activities. The items and cash seized have been forfeited to the government.
Bernard is scheduled to be sentenced on January 8, 2016.
The case is being prosecuted by Assistant U.S. Attorney Ly T. Chin.
The Rhode Island DEA Drug Task Force assisted the Cranston and Warwick Police Departments in the investigation of this matter.
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Jim Martin (401) 709-5357
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Three Sentenced in Sex Trafficking ConspiracyRead the Press Release
PROVIDENCE, R.I. – Three individuals who participated in a conspiracy in August 2014 to trafficking two Boston area females, one of them a minor, into Rhode Island for the purpose of offering them for commercial sexual activity have been sentenced in federal court in Providence.
Kemont Bowie, a/k/a Daddy, 35, of Central Falls, was sentenced today to 13 years in federal prison, to be followed by 10 years of supervised release. Bowie pleaded guilty on June 11, 2015, to conspiracy, sex trafficking of a child and transportation of a minor for sexual activity.
Ricky Wallace, a/k/a Justice, 34, of Pawtucket was sentenced on August 14, 2015, to 12 years in federal prison, to be followed by 5 years supervised release, for his participation in the conspiracy. He pleaded guilty on March 23, 2015, to one count each of conspiracy, sex trafficking of a child and transportation of a minor for sexual activity, and two counts of transportation of an individual for sexual activity.
Raechyl Spooner, 21, of Pawtucket was sentenced on October 8, 2015, to 3 years probation. She pleaded guilty on June 12, 2015, to one count of conspiracy.
The sentences, announced by United States Attorney Peter F. Neronha; Harold H. Shaw, Special Agent in Charge of the Boston field office of the FBI; Pawtucket Police Chief Paul King; Central Falls Police Chief Colonel James J. Mendonca; Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police; United States Marshal Jamie A. Hainsworth; and Arlington, Mass., Police Chief Frederick Ryan, were imposed by U.S. District Court Judge Mary M. Lisi.
According to court documents and information presented to the court, a 17-year-old female was taken from South Station in Boston in the early morning hours of August 19, 2014, and driven by the defendants to Rhode Island for the purposes of being trafficked for commercial sexual activity. According to the victim, she was driven to the same Pawtucket residence where she was located by law enforcement six days later and rescued by FBI agents, Pawtucket Police and Central Falls Police. She was located after she contacted a group home in the Boston area in which she resided, who in turn contacted the FBI. Provocative photographs taken of the victim were posted in advertisements placed on Backpage.com.
Additionally, on August 22, 2014, Wallace offered a 20-year-old Boston area woman a ride from South Station in Boston to nearby Cambridge, Mass. Instead of driving her to Cambridge, she was driven to Pawtucket and then to a motel in Seekonk, Mass., where she was photographed and offered on Backpage.com for commercial sexual activity. The woman repeatedly asked that she be driven back to the Boston area. The next day the woman was able to get away from Wallace and had contact with Seekonk Police, who was assisted by Rhode Island State Police in their investigation.
The case was prosecuted by Assistant U.S Attorney Adi Goldstein.
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Sex Offender Detained for Allegedly Violating SORNARead the Press Release
PROVIDENCE, R.I. – Byron Deweldon, 45, of Warwick, has been ordered detained in federal custody on a criminal complaint charging him with failing to register as a sex offender, in violation of the Sex Offender Registration and Notification Act (SORNA).
It is alleged in court documents that Deweldon failed to notify the Warwick Police Department or others of an address change after leaving his Warwick home on September 19, 2015, and traveling to locations in California, Florida, Maryland, Connecticut, Maine and Pennsylvania, all of which have Sex Offender registry statutes. Deweldon has a valid, non-expiring requirement that he register as a sex offender.
Deweldon’s arrest and detention is announced by United States Attorney Peter F. Neronha, U.S. Marshal Jamie A. Hainsworth and Warwick Police Chief Colonel Stephen M. McCartney.
According to court records, Deweldon was convicted in May 1995, in Rhode Island Superior Court, on three counts of second degree molestation; in May 1995, in Massachusetts, of indecent assault and battery on a child under the age of 14; in Rhode Island state court in April 2004, of third degree sexual assault; and in 2008, Deweldon was civilly committed by the Commonwealth of Massachusetts as a danger to the public. He was released on December 18, 2014, and moved into a family member’s home in Warwick.
Deweldon was arrested upon his return to Rhode Island last week by members of the U.S. Marshal’s SORNA Task Force, the U.S. Marshals and the Warwick Police Department.
SORNA provides a comprehensive set of federal standards for sex offender registration and notification in the United States through the nationwide network of sex offender registration and notification programs. Additionally, SORNA requires registered sex offenders to register and keep their registration current in each jurisdiction in which they reside, work, or go to school, and to make periodic in-person appearances to verify and update their registration information.
A criminal complaint is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams.
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Jim Martin (401) 709-5357
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Providence Resident Pleads Guilty to Robbing Four Banks in Four DaysRead the Press Release
PROVIDENCE, R.I. – Vaughn Watrous, 38, formerly of Providence, pleaded guilty in federal court in Providence today to robbing four banks, two in Providence and two in Cranston, on four consecutive days in February 2013, announced United States Attorney Peter F. Neronha, Cranston Police Chief Colonel Michael J. Winquist, Providence Police Chief Colonel Hugh T. Clements, Jr., and Harold H. Shaw, Special Agent in Charge of the Boston Field Office of the FBI.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Watrous pleaded guilty to four counts of bank robbery. He is scheduled to be sentenced on January 19, 2016.
At the time of his guilty plea, Watrous admitted to the court that on consecutive dates beginning on February 11, 2013, he robbed Sovereign Bank branch offices on North Main Street in Providence, Atwells Avenue in Providence, and on Reservoir Avenue in Cranston. He also admitted that on February 14, 2013, he robbed a Citizens Bank branch office located inside a supermarket on Garfield Avenue in Cranston.
In each instance, Watrous passed a note to a bank teller announcing the robbery, demanding large bills and instructing tellers not to trigger the bank alarm.
According to information presented to the court, Cranston police officers who responded to the robbery of the Citizens Bank branch office developed information that Watrous may have fled into a nearby store. Officers observed the defendant leaving that store and immediately arrested him. As they did, a large pile of cash fell to the ground. Additionally, officers recovered $690 hidden inside Watrous’ left shoe, $80 from inside his right front pocket and $240 from inside his left front pocket.
The case is being prosecuted by Assistant U.S. Attorney John P. McAdams, with the assistance of Assistant U.S. Attorney Lee H. Vilker.
The robberies were investigated by officers and detectives from the Cranston and Providence Police Departments and agents from the FBI.
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Jim Martin (401) 709-5357
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Grand Jury Indicts Two in Alleged ATM Skimming SchemeRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence on Wednesday returned an indictment charging Moises Morales Cano, 31, of Astoria, NY, and Carlos Cisneros, 53, of Jackson Heights, NY, with conspiracy to commit bank fraud and aggravated identity theft, for their alleged roles in a scheme to manipulate bank ATM machines which resulted in the theft of personal information skimmed from debit cards belonging to more than 1,300 individuals and the loss of more than $709,000.
It is alleged in court documents that between January 1 and April 4, 2015, the two men conspired with one another to attach skimming devices on ATMs at banks in several communities in Rhode Island and in at least two communities in Connecticut. An ATM skimming device is a technology that directly attaches to an ATM in order to intercept unknowing customers’ debit card information from the magnetic strip on customers’ ATM cards. The customers’ PINs are obtained through the attachment to the ATM of a custom fit plastic panel above the keypad, which houses a miniature remote camera that records the customers’ fingers as they enter their PINs into the ATM. Later, the stolen debit card information and PINs are downloaded to a computer and re-encoded onto counterfeit debit cards with a magnetic encoder. The information obtained is later used to make fraudulent transactions from the accounts of unknowing victims.
It is alleged in the indictment, announced by United States Attorney Peter F. Neronha, Ted A. Arruda, Resident Agent in Charge of the Providence office of the U.S. Secret Service, and Warwick Police Chief Colonel Stephen M. McCartney, that a total of approximately 1,329 individuals had their debit cards compromised by ATM skimming devices installed by Cano and Cisneros, resulting in a total loss of approximately $709,597.50.
An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Moises Morales Cano, who was arrested in Queens, NY, on September 9, 2014, on a federal criminal complaint charging him with conspiracy to commit bank fraud and aggravated identity theft, has been detained since his initial appearance in U.S. District Court in Providence before U.S. District Court Magistrate Judge Patricia A. Sullivan on September 18, 2015.
A federal arrest warrant has been issued for Carlos Cisneros, who is believed to have fled from the United States and is residing in Ecuador.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the United States Attorney’s Office, the U.S. Secret Service and the Warwick Police Department, with the assistance of the Smithfield, East Providence, Cranston and Johnston Police Departments.
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Contact:
Jim Martin (401) 709-5357
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Comprehensive Enforcement Action, Federal Court Filings Require R.I. State Government to Reduce Pollution and Resolve Longstanding Clean Water Act ViolationsRead the Press Release
PROVIDENCE, R.I. - United States Attorney Peter F. Neronha, Assistant Attorney General for the Environmental and Natural Resources Division (ENRD) of the Department of Justice John C. Cruden, and EPA Region 1 Administrator H. Curtis Spalding announced today that the United States has taken comprehensive enforcement action to resolve several years of significant noncompliance by the Rhode Island Department of Transportation (“RIDOT”) with its obligations under the federal Clean Water Act and the permit that governs day-to-day operations of its stormwater drainage systems. The resolution is being carried out through the filing of a civil complaint in federal court in Providence, and the lodging of a consent decree that requires RIDOT to immediately begin comprehensive efforts to repair, restore, and improve its systems to comply with the law.
As detailed in the complaint filed today, it is alleged that RIDOT failed to comply with its obligations under the permit in four major areas: (1) taking appropriate steps to evaluate and address the impact of its systems on impaired waters in the State of Rhode Island, (2) detecting and eliminating illicit connections and discharges of pollutants, including sewage, from illicit connections, (3) inspecting, cleaning, and repairing its drainage systems, including catch basins and other components, and (4) conducting adequate street sweeping to reduce the flow of contaminants, such as sediment and other physical debris on roadways into waterways.
As part of its system of roads, bridges and other infrastructure, RIDOT’s roadways are accompanied by storm drains, pipes, catch basins, manholes, outfalls, and other drainage system components that carry stormwater runoff to approximately 235 impaired water body segments in Rhode Island: this includes waters that ultimately discharge into Narragansett and Mount Hope Bays. The RIDOT drainage system includes approximately 25,000 catch basins and 3,800 outfalls that extend over 3,300 lane miles of roadway.
The consent decree filed with the court represents the result of more than14 months of detailed and comprehensive discussions initiated by the United States Attorney’s Office and ENRD with the State of Rhode Island, culminating in a comprehensive agreement that requires RIDOT to address each of its areas of violation.
“For nearly a decade, the Rhode Island Department of Transportation has ignored its obligation to the people of Rhode Island to protect the waterways of this state. Instead, through its neglect and indifference - through its failure to inspect and maintain its storm water run-off system – RIDOT has contributed to the pollution of those waters,” said United States Attorney Peter F. Neronha.
U.S. Attorney Neronha added, “Today, with the filing of a complaint against RIDOT in federal court here in Providence and the entry of a consent decree between the United States and RIDOT, this will change. Under the terms of the consent decree, RIDOT’s obligations are clear – it must change the way it does business. It must do what it has repeatedly failed to do for years. It must comply with the law – specifically, the Clean Water Act. It must operate a storm water run-off system that protects, rather than harms, the environment. This Office, and our partners at EPA and ENRD, will hold RIDOT accountable should it fail to live up to its obligations.”
“This agreement is good news for communities and the environment of Rhode Island,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “This judicially enforceable settlement will require RIDOT to implement best management practices, including structural controls, to reduce stormwater pollution from its roads to impaired waters of Rhode Island. RIDOT will also be required to implement long-overdue repairs to its storm water drainage systems, which will also lead to improved water quality in area waterways, including the historic Narragansett Bay.”
“EPA is pleased that we have now entered into a comprehensive legal agreement to ensure that RIDOT takes the necessary steps to comply with requirements that ensure a cleaner and healthier environment. This settlement is designed to produce environmental improvements on a timeline that is aggressive, but not unrealistic for RIDOT. This is good news for everyone who enjoys the natural beauty and recreational abundance of Rhode Island,” said Curt Spalding, Regional Administrator of the US Environmental Protection Agency’s New England office.
Under the decree, if approved by the Court, RIDOT will pay a civil penalty of $315,000, and will undertake two Supplemental Environmental Projects (“SEPs”). These SEPs will result in the preservation, through conservation easements and permanent protection from development, of two parcels of land in Johnston and Lincoln, Rhode Island. These lands abut current state park or environmental preserves and lie within the watersheds of impaired waterways subject to the consent decree. Their designation as SEPs will ensure that they remain in their natural state for future generations of Rhode Islanders to enjoy.
To correct the identified deficiencies and meet its obligations under the Clean Water Act, RIDOT is required to develop stormwater control plans for groups of impaired water bodies (generally speaking, water bodies with high levels of pollution) that are near each other. These plans will identify the extent to which RIDOT’s roads and structures contribute to runoff to those water bodies, assess best practices to reduce pollution, and then implement measures (in some cases including structural controls such as infiltration trenches, basins, ponds, grass swales, and others) to meet pollution reduction targets, taking into account various specified formulas that assess the impact of RIDOT’s roads and paved areas on the amount of discharge to waterways. Once created, the plans will be subject to EPA review and approval, and must then be implemented by RIDOT.
Additionally, RIDOT will undertake a comprehensive program of sampling at locations where its systems drain into the environment to look for situations where third parties may have illicit connections to RIDOT storm sewers, potentially draining sewage or other non-stormwater pollutants through the system. When these tests identify designated pollutants, including high levels of bacteria accompanied by certain chemicals or biological indicators, RIDOT must investigate, determine the source of the connection, and take appropriate steps to eliminate it.
In addition, many elements of RIDOT’s physical systems, including catch basins, culverts, and other components of its stormwater drainage network, are in poor repair and have not been adequately maintained. In some cases, this prevents the system from working as it should to control pollutant discharge. Under the decree, RIDOT will submit an inventory of its physical systems by March of next year. It will then have to implement a comprehensive inspection, cleaning and repair program, followed by continuing periodic inspection and maintenance.
Finally, RIDOT must undertake an inventory of its roads and parking lots, and will then implement a street sweeping and tracking system to ensure that its network is fully and regularly swept.
RIDOT is required to file annual reports with EPA regarding its progress with all of the requirements of the decree, and the decree provides for stipulated penalties for future instances of noncompliance.
The investigation and resolution of this matter are the result of a coordinated enforcement effort among the U.S. Attorney’s Office for the District of Rhode Island, the Department of Justice’s Environmental and Natural Resources Division and EPA.
The case is being handled by Assistant U.S. Attorneys Zachary A. Cunha and Richard B. Myrus, Senior Counsel Elizabeth Yu of the Environmental and Natural Resources Division of the Department of Justice, and Enforcement Counsel Kevin Pechulis, of the EPA.
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Providence Resident Sentenced on Drug and Firearm ChargesRead the Press Release
PROVIDENCE, R.I. – Darren Monteiro, 28, of Providence, was sentenced today to 41 months in federal prison on federal drug and firearm charges, announced United States Attorney Peter F. Neronha, Providence Police Chief Hugh T. Clements, Jr., and Daniel J. Kumor, Special Agent in Charge of the Boston Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Monteiro to serve 6 years supervised release upon completion of his prison sentence. Monteiro pleaded guilty on July 23, 2015, to one count each of distribution of heroin and being a felon in possession of a firearm.
According to court records and information presented to the court, an investigation into Monteiro’s drug trafficking activities by the Providence Police Department’s Narcotics and Organized Crime Bureau included four purchases of heroin packets between November 8 and November 19, 2013. In addition, Monteiro arranged with a Providence Police undercover detective to purchase a firearm and ammunition he said that he intended to use to commit an armed robbery. Monteiro was arrested on November 13, 2013, moments after he took possession of a semi-automatic handgun and ammunition.
Monteiro has been detained since his arrest.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
ATF agents assisted Providence Police in the investigation of this matter.
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Contact:
Jim Martin (401) 709-5357
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Heroin Trafficker Sentenced to 5 Years in PrisonRead the Press Release
PROVIDENCE, R.I. – Jorge Franco, 37, of Pawtucket, was sentenced today to 60 months in federal prison for trafficking heroin, announced United States Attorney Peter F. Neronha and Newport Police Chief Gary T. Silva.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Franco to serve 4 years supervised release upon completion of his prison term. Franco, a Guatemalan national, also faces deportation proceedings. He pleaded guilty on April 1, 2015 to possession with the intent to distribute heroin.
According to court records and information presented to the court, in late June 2014, a Newport police detective developed information that a large shipment of heroin was expected to be delivered in Newport in the coming days. Two days later, on June 29, 2014, the detective learned that the shipment of heroin was expected to arrive that evening inside a vehicle with Massachusetts license plates being driven by a Hispanic male. A description of the vehicle was provided to police. The heroin delivery was expected to take place in the parking lot of a convenience store located a short distance from the Newport Bridge.
Shortly before 11:00 p.m. on June 29, 2014, law enforcement spotted a vehicle with Massachusetts license plates being driven by a male fitting the description previously provided to Newport detectives exiting the Newport Bridge. The vehicle was followed as it made its way into the parking lot of a nearby convenience store a short distance from the bridge. Once stopped, law enforcement approached the vehicle and detected a strong odor of narcotics.
Upon questioning, the driver indicated to law enforcement that drugs would be found concealed inside clothing inside the vehicle. With the driver’s permission, law enforcement searched the vehicle and discovered a bag containing clothing and bedding. The bag was taken to the Newport Police Department and searched.
Inside the bag, wrapped in the clothing and bedding, law enforcement discovered seven packages of Guatemalan coffee and nine packages of Guatemalan food products. Three of the coffee packages contained a total of 947.3 grams of pure heroin. A DEA chemist who examined the heroin reported that it was extremely rare to find heroin of this purity. The four remaining packages contained a total of 1,359 grams of extremely potent heroin. Inside the nine food packages law enforcement discovered nearly 4,000 grams of phenylacetic acid, a substance commonly used to produce methamphetamine.
Franco has been detained since his arrest on June 29, 2014.
The case was prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The FBI's Safe Streets Task Foerce assisted Newport Police in the investigation of this matter.
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Jim Martin (401) 709-5357
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Glocester Resident Pleads Guilty to Manufacturing MethamphetamineRead the Press Release
PROVIDENCE, R.I. – Kevin Lewis, 40, of Glocester, R.I., pleaded guilty in federal court in Providence today to manufacturing methamphetamine (meth), announced United States Attorney Peter F. Neronha, Glocester Police Chief Joseph S. Delprete and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration’s New England Field Division.
According to court documents, on July 28, 2015, a Glocester patrol officer stopped a vehicle being driven by Lewis, knowing that an active arrest warrant for Lewis had been issued by the Rhode Island Family Court. During the traffic stop, the officer saw on the back seat of the vehicle materials he recognized as items used in the production of meth. The officer also detected a strong odor of acetone, which is associated with the production of meth.
After placing Lewis in custody on the arrest warrant, police requested of Lewis’ wife, who was a passenger in the vehicle, that she drive the vehicle to the Glocester Police Department while under police supervision. A subsequent search of Lewis’ vehicle at the Glocester police station by members of the Glocester Police Department, the R.I. DEA Drug Task Force and the DEA Clandestine Laboratory Tactical Team resulted in the discovery and seizure from the trunk of the vehicle a batch of meth in the process of being produced. Also seized were three hydrochloric acid gas generators used in the production of meth, a completed one-pot meth cook and additional items used in the production of meth.
Glocester Police and members of the DEA Clandestine Laboratory Tactical Team also conducted a court authorized search of a vehicle parked behind Lewis’ Glocester residence where they discovered numerous items used in the manufacture of meth.
Lewis, who has been detained in federal custody since his arrest on July 28, 2015, will be sentenced on a date yet to be determined by the court.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
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Jim Martin (401) 709-5357
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$2.6 Million Recovered Through Settlement of False Claims Act Allegations Against American Access CareRead the Press Release
PROVIDENCE, R.I. - United States Attorney Peter F. Neronha and Phillip Coyne, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), New England Region, announced today that American Access Care Holdings, LLC, (AAC) which handled billings and claims submitted by a vascular access center formerly operated by AAC in Providence, R.I., has agreed to pay $2.6 million dollars to resolve allegations that it violated the False Claims Act as a result of conduct at its Providence access center.
Among other services, access care facilities address complications with dialysis access for patients with kidney disease. In this case, the Government alleged that AAC violated the False Claims Act through its knowing submission of three types of claims: (1) billing Medicare for percutaneous transluminal angioplasties (PTAs) that were medically unnecessary under Medicare guidance; (2) billing for more PTAs per patient encounter than permitted; and (3) billing for medically unnecessary procedures during follow-up visits.
“Doctors and companies that choose to collect federal healthcare dollars must do so with a clear understanding that those dollars come with responsibilities – first and foremost, that all care is billed because it’s necessary for the patient, not the bottom line,” announced U.S. Attorney Neronha. “Today’s settlement is a reminder that we will continue to vigorously police compliance with program standards to ensure that taxpayer dollars are spent only in the appropriate manner.”
“Health care providers will not be permitted to provide unnecessary medical procedures – in this case, invasive procedures -- on patients and then pocket the improper payments they receive as a result," said Special Agent in Charge Philip Coyne of the U.S. Department of Health and Human Services Office of Inspector General. “Our agency is dedicated to investigating health care fraud schemes that divert scarce taxpayer funds meant to provide for legitimate patient care.”
The government’s case was resolved under the federal False Claims Act, which allows the United States to recover federal funds that are paid out as a result of knowingly false or fraudulent claims, along with multiple damages. The Rhode Island settlement is concluded simultaneously with the resolution of claims against AAC by the United States Attorney for the District of Connecticut, and follows a third settlement against this company in the Southern District of Florida, in the case United States ex rel. Souza v. American Access Care of Miami, LLC (S.D. Fla.).
Former AAC facilities, including the one in Providence, are now operated by Fresenius Vascular Care, Inc. The conduct addressed by the settlement agreement took place prior to the merger between the two entities.
The investigation of this matter is the result of a coordinated effort between the U.S. Attorney’s Office for the District of Rhode Island and HHS-OIG.
The matter was litigated by Assistant U.S. Attorneys Zachary A. Cunha and Mary E. Rogers.
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