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Wednesday 18 September 2019
Former Alabama Correctional Lieutenant Indicted for Allowing Inmate AbuseRead the Press Release
The Justice Department today announced that a Federal Grand Jury sitting in Montgomery, Alabama, returned a two-count indictment charging former Alabama Department of Corrections (ADOC) Lieutenant Willie Burks, 39, with failing to stop a sergeant under his command from kicking and striking with a baton a handcuffed and compliant inmate at ADOC’s Elmore Correctional Facility. Burks also was charged with making false statements to the federal grand jury in connection with the investigation.
Three former and current corrections officers have previously pleaded guilty in connection with this incident. Former Alabama Department of Corrections Sergeant Ulysses Oliver pleaded guilty to unlawfully assaulting two handcuffed inmates. Corrections Officers Briana Mosley and Leon Williams pleaded guilty for failing to intervene to prevent the abuse by former-Sergeant Oliver.
According to the prior guilty pleas, Oliver went to an observation room holding the two inmate victims, who were both handcuffed and sitting quietly. Oliver pulled the first victim from the observation room into an adjacent hallway, where he struck the victim multiple times with his fists and feet, and then used his collapsible baton to strike the victim approximately 19 times. After assaulting the first victim, Oliver returned to the observation room and pulled the second victim into the hallway. Oliver kicked the second victim and used his baton to strike the victim approximately 10 times. During the assaults, the victims were handcuffed, and were not resisting or posing a threat. After, Oliver returned to the observation room where the victims were held and shoved the tip of his baton into the face of one of the victims, lacerating the victim’s face. Oliver assaulted the victims as punishment because he believed that the victims had brought contraband into the facility. Oliver assaulted the victims in the presence of other ADOC correctional officers, who did not intervene to prevent the assaults.
Burks faces a statutory maximum sentence of 15 years in prison.
The charges contained in the indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty in court.
This case is being investigated by the FBI’s Mobile Division and ADOC’s Investigations and Intelligence Division. It is being prosecuted by Assistant U.S. Attorney Ben Baxley of the Middle District of Alabama, and Special Legal Counsel Mark Blumberg, Special Litigation Counsel Jared Fishman, and Trial Attorney David Reese of the Civil Rights Division.
Florida Man Arrested for Making Racially-Motivated Threats in Interference with Election in Charlottesville and CyberstalkingRead the Press Release
Charlottesville, VIRGINIA – United States Attorney Thomas T. Cullen and Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Right Division announced today the arrest of a Florida man on federal charges that in January 2019 he made racially-motivated threats against a prospective candidate that interfered with a local election for City Council in Charlottesville, Virginia.
A federal grand jury in the Western District of Virginia returned a sealed
indictment.pdf on September 11, 2019 charging Daniel McMahon, 31, of Brandon, Fla., with four counts: willful interference with a candidate for elective office, bias-motivated interference with a candidate for elective office, threats to injure in interstate commerce, and cyberstalking. The indictment was unsealed today following McMahon’s arrest.“As alleged in the indictment, this defendant was motivated by racial animus and used his social-media accounts to threaten and intimidate a potential candidate for elective office,” U.S. Attorney Thomas T. Cullen stated today. “Although the First Amendment protects an individual’s right to broadcast hateful views online, it does not give license to threats of violence or bodily harm. We will continue to prioritize cyber-threat cases, including those giving rise to civil rights violations.”
“The alleged targeted and racially motivated actions by Daniel McMahon were an attempt to disrupt the American political process,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Division. “The FBI remains committed to protecting the civil liberties of all Americans. We are grateful for the assistance of the FBI office in Tampa and the partnership with the United States Attorney’s Office, during this investigation.”
Specifically, the indictment alleges that McMahon threatened D.G. with physical harm because of D.G.’s race and because D.G. was campaigning for elected office. The indictment further alleges that threats were made with the intent to injure and intimidate D.G., and were part of a course of conduct that planed D.G. in fear of death and serious bodily injury. The charges of cyberstalking and transmitting threats in interstate commerce carry a maximum sentence of five years in prison. The two charges arising from the threats against D.G. because of his race and because he was campaigning for elected office each carry a maximum sentence of one year in prison.
This case is being investigated by the FBI and is being prosecuted by the United States Attorney for the Western District of Virginia Thomas T. Cullen, Assistant U.S. Attorney Christopher Kavanaugh, and Trial Attorney Risa Berkower of the Department of Justice’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
Florida Man Arrested for Making Racially-Motivated Threats in Interference with Election in Charlottesville and CyberstalkingRead the Press Release
Assistant Attorney General Eric Dreiband of the Justice Department’s Civil Rights Division and United States Attorney Thomas T. Cullen today announced the arrest of a Florida man on federal charges that in January 2019 he made racially-motivated threats against a prospective candidate that interfered with a local election for City Council in Charlottesville, Virginia.
A federal grand jury in the Western District of Virginia returned a sealed indictment on Sept. 11, charging Daniel McMahon, 31, of Brandon, Florida, with four counts: willful interference with a candidate for elective office, bias-motivated interference with a candidate for elective office, threats to injure in interstate commerce, and cyberstalking. The indictment was unsealed today following McMahon’s arrest.
“As alleged in the indictment, this defendant was motivated by racial animus and used his social-media accounts to threaten and intimidate a potential candidate for elective office,” U.S. Attorney Thomas T. Cullen stated today. “Although the First Amendment protects an individual’s right to broadcast hateful views online, it does not give license to threats of violence or bodily harm. We will continue to prioritize cyber-threat cases, including those giving rise to civil rights violations.”
“The alleged targeted and racially motivated actions by Daniel McMahon were an attempt to disrupt the American political process,” said David W. Archey, Special Agent in Charge of the FBI’s Richmond Division. “The FBI remains committed to protecting the civil liberties of all Americans. We are grateful for the assistance of the FBI office in Tampa and the partnership with the United States Attorney’s Office during this investigation.”
Specifically, the indictment alleges that McMahon threatened D.G. with physical harm because of D.G.’s race and because D.G. was campaigning for elected office. The indictment further alleges that threats were made with the intent to injure and intimidate D.G., and were part of a course of conduct that caused D.G. to fear death and serious bodily injury. The charges of cyberstalking and transmitting threats in interstate commerce carry a maximum sentence of five years in prison. The two charges arising from the threats against D.G. because of his race and because he was campaigning for elected office each carry a maximum sentence of one year in prison.
This case is being investigated by the FBI and is being prosecuted by the United States Attorney for the Western District of Virginia Thomas T. Cullen, Assistant U.S. Attorney Christopher Kavanaugh, and Trial Attorney Risa Berkower of the Department of Justice’s Civil Rights Division.
An indictment is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
Five Aliens Indicted on Illegal Reentry Charges, Illegal and Unlawful Alien in Possession of a Firearm, Passport Fraud, Aggravated Identity Theft, False Representation of Social Security Number, False Claim of US Citizenship in Order to Register to VoteRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging ABONZA BONIFACIO-GARCIA, age 33, of Mexico, and JOSE DIAZ-BRITO, age 40, of Mexico, with illegal reentry of a deported alien.
Additionally, the grand jury returned indictments charging JOHNNY ROEL-ROBLEDO, age 42, of Mexico, with illegal reentry of an aggravated felon and illegal and unlawful alien in possession of a firearm, and JORGE ALBERTO CHAVEZ-MORENO, age 38, of Mexico, with passport fraud, aggravated identity theft, false representation of a social security number, false claim to US citizenship in order to register to vote, and fraud and misuse of visas, permits and other documents.
If convicted of illegal reentry of a deported alien, BONIFACIO-GARCIA, previously deported and found in Pitt County, and DIAZ-BRITO, previously deported and found in Wake County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
ROEL-ROBLEDO, previously deported and found in Wake County, is alleged to have been previously removed subsequent to an aggravated felony conviction (possession with intent to sell and deliver cocaine). Therefore, if convicted, he would face a maximum imprisonment term of 30 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
If convicted of passport fraud, aggravated identity theft, false representation of a social security number, false claim to US citizenship in order to register to vote, and fraud and misuse of visas, permits and other documents, CHAVEZ-MORENO, found in Sampson County, would face maximum penalties of 37 years imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Federal inmates charged with assaulting correctional officersRead the Press Release
BRUNSWICK, GA.: Three federal prison inmates have been charged in separate incidents in which correctional officers were injured.
Eduardo Bermudez, 21; Dominique Moultrie, 31; and Ulysses Hensen, 43, inmates at Federal Correctional Institution Jesup, in Jesup, Ga., each are charged with Assaulting, Resisting, or Impeding employees of the Federal Bureau of Prisons, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charge carries a penalty of up to 20 years in prison.
In each case, the defendant is alleged to have refused instructions from correctional officers before assaulting them, resulting in injuries to the officers.
“The protection of our correctional officers is of paramount concern,” said U.S. Attorney Christine. “Our office will not hesitate to prosecute inmates who harm the officers whose job it is to house those inmates safely and humanely.”
“Staff at our federal correctional institutions serve, at times, under difficult conditions, trying to keep prisons safe for incarcerated felons,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “Any abuse of prison staff by inmates cannot and will not be tolerated, and will be pursued for prosecution by the FBI.”
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
The cases were investigated by the Federal Bureau of Prisons and the FBI, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
Federal Jury Convicts Coon Rapids Man for His Role in Methamphetamine Trafficking ConspiracyRead the Press Release
United States Attorney Erica H. MacDonald announced the conviction of JAMES FLAHERTY HILL, a/k/a “Whitey,” 36, for his role in a methamphetamine trafficking conspiracy. HILL was found guilty following a seven-day trial before Senior Judge Donovan W. Frank in U.S. District Court in Saint Paul, Minnesota. HILL’s co-defendants JAMES LEE JOHNSON, JUSTIN MICHAEL DRECHSEL, JERE DG ERICKSON, ANTHONY JAMES LANSING, CHELSEY ELIZABETH NELSON, and NICHOLE ROSE WOODWORTH each pleaded guilty to count of conspiracy to distribute methamphetamine.
According to the defendants’ guilty pleas and as proven at trial, HILL’s co-defendant, JOHNSON, led a drug trafficking organization (DTO) that distributed methamphetamine throughout the state of Minnesota. From November 2016 through August 2018, investigators with the Anoka-Hennepin Narcotics and Violent Crimes Task Force conducted an extensive investigation of the DTO. On November 14, 2016, law enforcement observed a DTO co-conspirator travel to HILL’s Coon Rapids residence, then travel to a truck stop, and then return to HILL’s residence. When the co-conspirator again left HILL’s residence, Blaine police officers initiated a traffic stop and found, inside the vehicle, several packages wrapped in plastic containing approximately 35 pounds of methamphetamine. Later that day, agents observed HILL attempting to remove items of contraband from his from his home, some of which were later seized from a co-conspirator’s vehicle, including multiple pounds of marijuana, one pound of methamphetamine, one pound of cocaine, four handguns and a rifle. By that night, law enforcement executed a search warrant at HILL’s residence and recovered various items consistent with a drug distribution operation, including scales, multiple burner phones, and multiple additional firearms.
This case is the result of an investigation conducted by the Drug Enforcement Administration, Homeland Security Investigations, the Anoka-Hennepin Narcotics and Violent Crimes Task Force, the Anoka County Sheriff’s Office, the Minnesota Bureau of Criminal Apprehension, the Blaine Police Department, and the Midwest Regional Forensic Laboratory.
This case is being prosecuted by Assistant U.S. Attorney Allen A. Slaughter.
Defendant Information:
JAMES FLAHERTY HILL, a/k/a “Whitey,” 36
Coon Rapids, Minn.
Convicted:
- Conspiracy to distribute methamphetamine, 1 count
- Possession with intent to distribute methamphetamine, 1 count
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Delegation of Law Enforcement Members from the State of Alabama Briefed in MexicoRead the Press Release
BIRMINGHAM – A delegation of law enforcement members from the State of Alabama, recently returned from a trip to Mexico and to the State of Sinaloa, home of the Sinaloa Cartel, announced U.S. Attorney Jay E. Town and DEA Assistant Special Agent in Charge Clay Morris.
“The efforts and actions of this Alabama delegation underscores the commitment and lengths to which law enforcement in the state will go to ensure the safety of its citizens and fully understand the breadth and sophistication of the enemy we face,” Town said. “That enemy is not just the cartels. It is not just the dealers. That enemy is also addiction and abuse. The entire delegation owes its thanks to the DEA for making arduous coordination look effortless.”
“It is the hope and prayer of this delegation of law enforcement executives that the citizens of Alabama understand that we are steadfast in our combined efforts to keep our communities safe,” Morris said. “Collectively, we will not tolerate the destruction drug trafficking brings to our great state. We witnessed firsthand the lengths Mexican drug cartels will go to fuel the disease of addiction. We are resolved to do everything in our power to stem the flow drugs into Alabama.”
On September 11, 2019, a delegation of twelve federal, state and local law enforcement officials traveled to Mexico to see, hear and smell the sophistication of the illegal narcotics trade there. The delegation was briefed in Mexico City at the highest levels. The delegation was in country for less than 72 hours, traveled nearly 5500 total miles and was constantly under the heavily armed protection of United States and Mexican law enforcement. The crime intelligence accumulated by the delegation was immeasurable, only countered by the amount of narcotics activity with but one primary destination…the United States.
The overall message was clear, narcotics trafficking and production in Mexico is dominating the drug trade in the United States. Heroin, methamphetamine, fentanyl, and even cocaine egressing from Columbia, are all being trafficked into the United States by the drug trade in Mexico. The precursor chemicals are being sourced primarily from China, but chemists working for the cartels are unfortunately making strides sourcing the precursor materials inside of Mexico. The profit margins for fentanyl and methamphetamine are driving the drug trade by the cartels.
The members of the delegation were:
Jay Town – U.S. Attorney, Alabama Northern District
Louis Franklin - U.S. Attorney, Alabama Middle District
Richard Moore - U.S. Attorney, Alabama Southern District
Clay Morris – Assistant Special Agent in Charge, Birmingham, New Orleans Division
Sean Stephen – Group Supervisor, Birmingham, New Orleans Division
Steven Marshall, Alabama Attorney General
John Harold Taylor – Alabama Law Enforcement Secretary
Kevin Turner - Sheriff, Madison County, Alabama
Barry Matson – Executive Director, Alabama District Attorney’s Association
Nicholas Derzis – Chief of Police, Hoover Police Department
Robert Broussard – District Attorney, Madison County, Alabama
Bryan Taylor – General Counsel, Governor of Alabama
Below is the link to the video shown at the press conference today.
Video fileDayton Man Sentenced to 7 Years for Possessing Gun as Convicted Felon, Violating Federal Supervised ReleaseRead the Press Release
DAYTON – Gabriel Newman, 36, of Dayton was sentenced in U.S. District Court to 84 months in prison for possessing an AR-15 assault-style rifle at a home where he was dealing illegal drugs.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Jonathan McPherson, Special Agent in Charge, U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Dayton Police Chief Richard Biehl announced the sentence handed down by U.S. District Judge Walter H. Rice.
Newman was also ordered to forfeit a handgun, ammunition and a high-capacity magazine for the AR-15 found during the search.
According to court documents, Newman was on federal supervised release in early 2018 for a prior federal conviction of drug trafficking when agents found the firearm as well as illegal drugs hidden inside a Christmas tree at a residence in east Dayton.
Agents arrested Newman and he pleaded guilty in February to one count of possessing a firearm as a convicted felon, and to violating his supervised release following his 2015 conviction for drug trafficking.
This case is being prosecuted as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. Through PSN, a broad spectrum of stakeholders work together to identify the most pressing violent crime problems in the community and develop comprehensive solutions to address them. As part of this strategy, PSN focuses enforcement efforts on the most violent offenders and partners with locally based prevention and reentry programs for lasting reductions in crime.
U.S. Attorney Glassman commended the cooperative investigation by the ATF and Dayton Police Department, as well as Assistant United States Attorney Brent Tabacchi, who is representing the United States in this case.
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Court of Appeals Affirms 120-Year Sentence of Former Live Oak Police Sergeant Convicted of Producing and Possessing Child PornographyRead the Press Release
Jacksonville, Florida – Maria Chapa Lopez announces that, on September 17, 2019, a three-judge panel of the United States Court of Appeals for the Eleventh Circuit affirmed the 120-year federal-prison sentence of Kyle Adam Kirby (39, Live Oak), who was convicted of producing, attempting to produce, possessing, and accessing images and videos depicting the sexual abuse of minors. Kirby was arrested on October 28, 2015, at the Live Oak Police Department (LOPD) and has remained in custody since that date. A federal jury found him guilty on December 7, 2017.
According to testimony and evidence at trial, on October 22, 2015, FBI agents and other law enforcement officers executed a search warrant at Kirby’s residence as a result of an online child exploitation investigation. At that time, Kirby was a sergeant with the Live Oak Police Department. That same morning, the LOPD chief authorized the agents to inspect and search the computer located inside Kirby’s patrol car. A forensic examination of this computer revealed that it contained images depicting young children engaged in sexually explicit conduct. Kirby had used the patrol car’s computer to search for, download, access, and possess child pornography from as early as December 24, 2014.
A later search of an LOPD desktop computer used by Kirby revealed images depicting nude and partially undressed children in at least three different bathrooms. The evidence at trial revealed that Kirby had used one or more concealed cameras to surreptitiously film the unsuspecting minors. He had then transferred these images to the LOPD desktop computer and later had unsuccessfully attempted to delete them. Agents were able to locate folders on the computer named for several of Kirby’s victims.
In March 2018, United States District Judge Timothy J. Corrigan sentenced Kirby to serve 120 years in federal prison for these crimes. Kirby appealed his sentence to the United States Court of Appeals for the Eleventh Circuit, but that court affirmed, holding that the district court had not erred in calculating Kirby’s United States Sentence Guidelines advisory sentence of life imprisonment, which the court said, means a sentence that is “indefinite in duration.” The court said that Kirby’s 120-year sentence was “the closest available sentence to indefinite incarceration,” and concluded that, “when the Sentencing Guidelines recommend life imprisonment, they mean life imprisonment.”
The Court of Appeals also held that Kirby’s sentence was not unreasonably long, noting that, before imposing the longest sentence that it could, the District Court had “thoroughly discussed Kirby’s particularly heinous conduct and direct participation in the creation of child pornography, his breach of public trust as a police officer, and his total failure to take responsibility for his actions.”
This case was investigated by the Federal Bureau of Investigation, the Columbia County Sheriff’s Office, and the Florida Department of Law Enforcement, with the full cooperation of the Live Oak Police Department. Assistant United States Attorney D. Rodney Brown prosecuted the case in the District Court, and Linda Julin McNamara, Sara Sweeney, and Michelle Thresher Taylor represented the United States on appeal.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Correctional officer, inmate charged in federal prison bribery indictmentRead the Press Release
WAYCROSS, GA: A correctional officer at a privately-operated federal prison has been indicted on multiple counts of accepting bribes from an inmate and lying about it to investigators.
Micheal Eaddy, 23, of Blackshear, Ga., a correctional officer at D. Ray James Correctional Facility, a privately prison operated under federal contract in Folkston, Ga., was indicted by a federal grand jury on seven counts of Bribery, one count of Providing Contraband in Prison, and one count of False Statement, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. The charges carry possible punishment of up to 15 years in prison, and there is no parole in the federal system.
In the same indictment, Jean Civil, 24, of Port-au-Prince, Haiti, an inmate at D. Ray James, is charged with Possessing Contraband in Prison after being found in possession of a cell phone. The charge carries possible punishment of up to one year in prison. Civil is serving a 78-month sentence for Conspiracy to Distribute 500 Grams or More of Cocaine.
“Crimes inside our federally operated prison system can have a dangerous and damaging effect on community safety outside the prisons,” said U.S. Attorney Christine. “When guards violate their oaths and provide inmates with access to illegal materials, it reduces the ability to maintain order on the inside while facilitating criminal activity outside.”
According to the indictment, Eaddy is alleged to have accepted seven bribes totaling nearly $900 in return for smuggling cigarettes into the prison. He also is alleged to have denied accepting multiple bribes in return for smuggling contraband into the prison, instead claiming that he had conducted only one transaction. Investigators discovered the activity after seizing the contraband phone from Civil and examining its contents, which included electronic conversations between Civil and Eaddy.
Criminal indictments contain only charges; defendants are presumed innocent unless and until proven guilty.
“Contraband in prisons, specifically cell phones, poses a danger to correctional officers, prison staff, and the public,” said James F. Boyersmith, Special Agent in Charge of the U.S. Department of Justice Office of the Inspector General Miami Field Office. “Our agents will continue to investigate any Department of Justice employees, including correctional officers, who violate the law by smuggling contraband into federal prisons.”
The case was investigated by the U.S. Department of Justice Office of Inspector General, and prosecuted for the United States by Assistant U.S. Attorney Marcela C. Mateo.
Compounding Pharmacy, Two of Its Executives, and Private Equity Firm Agree to Pay $21.36 Million to Resolve False Claims Act AllegationsRead the Press Release
The Department of Justice announced today that compounding pharmacy Diabetic Care Rx LLC, or Patient Care America (PCA), PCA’s Chief Executive Officer Patrick Smith, PCA’s former Vice President of Operations Matthew Smith, and private equity firm Riordan, Lewis & Haden Inc. (RLH) have agreed to resolve a lawsuit alleging that they violated the False Claims Act through their involvement in a kickback scheme to generate referrals of prescriptions for expensive pain creams, scar creams, and vitamins, regardless of patient need, which were reimbursed by TRICARE, the federal health care program for military members and their families. PCA and RLH have agreed to pay $21,050,000, Patrick Smith has agreed to pay at least $300,000, and Matthew Smith has agreed to pay at least $12,788. These settlement amounts were based on defendants’ ability to pay.
“Kickback schemes taint decision-making and cause taxpayer-funded health care programs to pay for items or services that patients may not need,” said Assistant Attorney General Jody Hunt for the Department of Justice’s Civil Division. “We will hold accountable health care providers involved in such schemes designed to induce referrals of prescriptions that are reimbursed by federal health care programs.”
“The prosecution and resolution of this case demonstrates the U.S. Attorney’s Office continuing commitment to hold all responsible parties to account for the submission of claims to federal health care programs that are tainted by unlawful kickback arrangements,” said United States Attorney Ariana Fajardo Orshan. “Kickback schemes lead to unnecessary medical services and drive up the cost of health care for all.”
“This settlement sends a clear message about the Defense Criminal Investigation Service (DCIS) and its law enforcement partners’ unwavering commitment to protect the integrity of TRICARE, the Department of Defense’s health care program which serves to protect our U.S. military, their family members, and military retirees,” said Special Agent in Charge Cyndy Bruce of the DCIS Southeast Field Office. “Health care providers who manipulate and abuse the TRICARE program in order to seek financial gain by submitting false claims and demonstrating a lack of regard for TRICARE patients and the health care plan which is charged to provide their medical care, will be diligently investigated and held accountable for their actions.”
This settlement resolves a lawsuit pursued by the United States against PCA for allegedly paying kickbacks to outside “marketers” to target military members and their families for prescriptions for compounded creams and vitamins, which were formulated to ensure the highest possible reimbursement from TRICARE. The United States alleged that the marketers paid telemedicine doctors who prescribed the creams and vitamins without seeing the patients, or in some cases, even speaking to them. The settlement also resolves the United States’ allegations that PCA and a marketer routinely jointly paid the copayments owed by patients referred by the marketer, without any verification of the patients’ financial needs, and then disguised the payments as coming from a sham charitable organization, which was affiliated with the marketer. Finally, the settlement resolves the United States’ allegations that PCA continued to claim reimbursement for prescriptions referred by the marketers despite regularly receiving complaints from patients that revealed the prescriptions were being generated without patient consent or a valid patient-prescriber relationship. RLH, the private equity firm that managed PCA on behalf of its investors, allegedly knew of and agreed to the plan to pay outside marketers to generate the prescriptions and financed the kickback payments to the marketers. Patrick Smith and Matthew Smith were executives of PCA who allegedly executed the scheme.
The lawsuit resolved by the settlement was originally filed under the whistleblower (or “qui tam”) provisions of the False Claims Act by Marisela Medrano and Ada Lopez, two former employees of PCA. The qui tam provisions permit private individuals to sue on behalf of the government for false claims and to share in any recovery. The False Claims Act authorizes the United States to intervene and take over such lawsuits, which the United States did here, in part. The share to be awarded in this case has not been determined yet.
This civil settlement was the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch (Fraud Section), the United States Attorney’s Office for the Southern District of Florida, the Defense Criminal Investigative Service, and the U.S. Food & Drug Administration’s Office of Criminal Investigations.
The lawsuit is captioned United States ex rel. Medrano and Lopez v. Diabetic Care Rx LLC, d/b/a Patient Care America, et al., No. 15-CV-62617 (S.D. Fla.). The claims resolved by the settlement are allegations only and there has been no determination of liability.
Citizen of Mexico Sentenced to 10 Years in Prison on Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that David Flores-Torres, 26, a citizen of Mexico living in Dunkirk, NY, who was convicted of possession of child pornography involving a prepubescent minor, was sentenced to serve 120 months in prison and 30 years supervised release by U.S. District Judge Lawrence J. Vilardo.
Special Assistant U.S. Attorney Jeremy V. Murray, who handled the case, stated that on June 5, 2018, a search warrant was executed at the defendant’s residence in Dunkirk, NY. Law enforcement officers seized the defendant’s Samsung Galaxy S3 cellular telephone which contained 79 images and 14 videos of child pornography. Some of the images depicted prepubescent minors or minors less than 12 years-old, as well as depictions of violence. Torres also received and distributed images constituting child pornography from and to others with whom he communicated using a cellular telephone and the internet.
The defendant disclosed that, on three occasions during 2017 and 2018, he engaged sexual contact with two minor victims under the age of 18. The government advocated for a sentence of between 14 and 17.5 years in prison, which was the sentencing range recommended under the United States Sentencing Guidelines.
Today’s sentencing is the result of an investigation by Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
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Chicago Woman Charged with Operating Prostitution Business on City’s West SideRead the Press Release
CHICAGO — A Chicago woman has been indicted on federal charges for allegedly operating a prostitution business in the city’s West Town neighborhood.
JESSICA NESBITT, also known as “Madame Priscilla Belle,” 31, is charged with seven counts of using interstate commerce to facilitate prostitution, three counts of illegally structuring cash withdrawals to evade financial reporting requirements, one count of conspiracy to use interstate commerce to facilitate prostitution and transport and entice an individual across state lines to engage in prostitution, one count of enticing an individual across state lines to engage in prostitution, and one count of transporting an individual across state lines to engage in prostitution.
The indictment was returned last month and ordered unsealed today. Nesbitt pleaded not guilty at her arraignment this afternoon before U.S. Magistrate Judge Maria Valdez. A status hearing was scheduled for Oct. 15, 2019, at 9:30 a.m., before U.S. District Judge Robert M. Dow, Jr.
The indictment was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the FBI; and Kathy A. Enstrom, Special Agent-in-Charge of the IRS Criminal Investigation Division in Chicago. The government is represented by Assistant U.S. Attorneys Devlin N. Su and Erika Csicsila.
According to the indictment, Nesbitt owned and operated a company called Kink Extraordinaires, which employed several individuals who engaged in prostitution. Acts of prostitution were carried out in a residential building in the 2400 block of West Augusta Boulevard in Chicago, according to the indictment. Nesbitt advertised prostitution services on multiple websites, including backpage.com, eros.com and Gentlemen’s Pages, as well as a website that Nesbitt operated called kinkextraordinaires.com, the indictment states. Nesbitt also emailed her clients invitations to paid sex and fetish parties, including “Halloween Mischief” and “Black Tie Bizarre,” the indictment states.
In addition to activity in Chicago, Nesbitt arranged for herself and her employees to perform acts of prostitution in California, Washington, D.C., Florida, Indiana, Nevada, and Wisconsin, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
The enticement charge is punishable by up to 20 years in prison, while the transportation and structuring charges carry a maximum sentence of ten years. The charges of conspiracy and using interstate commerce to facilitate prostitution are each punishable by up to five years. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
Chester Man Sentenced for Gun CrimesRead the Press Release
CONCORD - Julion Adamski Parker, a/k/a Julian Iden Lima, 27, of Chester, was sentenced to time served (approximately 16 months) and fined $1,000 for violating federal firearms laws, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on July 11, 2017, Chester Police Department received a call that Parker was inside the Chester General Store with a gun in plain view. Knowing that Parker previously had been convicted of impersonating a federal officer, members of the Chester Police arrested Parker for being a felon in possession of a deadly weapon.
Further investigation showed that Parker had previously purchased guns on two occasions by completing documents that falsely claimed that he had never been convicted a felony in any court. On March 30, 2017, Parker purchased a Mosin-Nagant, Model M91/30, 7.62 X 39 mm caliber rifle from a federally licensed firearms dealer in Hooksett. On June 20, 2017, he purchased an Arsenal, Model SAM7R, 7.62 X 39 mm rifle from a federally licensed firearms dealer in Londonderry.
Parker previously pleaded guilty on May 2, 2019, to being a felon in possession of a firearm and two counts of making false statements in order to acquire a firearm. After being released from custody, Parker will be on supervised release for three years. During the first six months of his release he will be subject to home confinement with electronic monitoring.
“In order to protect public safety, it is essential to keep guns out of the hands of criminals,” said U.S. Attorney Murray. “We will continue to work with our law enforcement partners to identify, prosecute, and incarcerate criminals who unlawfully obtain and possess firearms.”
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chester Police Department. The United States Marshal’s Service assisted in the apprehension of Parker. The case was prosecuted by Assistant U.S. Attorney Debra Walsh.
The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes.
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Charges Brought Against 34 Individuals for Alleged West Coast Medicare and Medicaid Fraud Schemes Totaling $258 MillionRead the Press Release
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division announced today a health care fraud enforcement action in the state of California, involving charges brought against a total of 26 individuals in the Central District of California for their alleged involvement in Medicare and Medicaid fraud schemes resulting in $257 million in billings. Of those charged, 14 were doctors or medical professionals. In addition, in the states of Arizona and Oregon, eight defendants, including three licensed medical professionals, have been charged with defrauding the Medicaid program out of over $1 million. These cases were investigated by each state’s respective Medicaid Fraud Control Units
Today’s enforcement action was led and coordinated by the Health Care Fraud Unit of the Criminal Division’s Fraud Section in conjunction with its Medicare Fraud Strike Force (MFSF) partners, a partnership between the Criminal Division, U.S. Attorney’s Offices, the FBI and the U.S. Department of Health and Human Services Office of the Inspector General (HHS-OIG). In addition, the operation includes the participation of various other federal law enforcement agencies and the California Department of Justice, including the U.S. Department of Labor, Office of Inspector General, the U.S. Department of Labor, Employee Benefits Security Administration, the U.S. Department of Defense, Defense Criminal Investigative Service, the Amtrak Office of Inspector General, the U.S. Office of Personnel Management, Office of Inspector General and the California Department of Insurance.
The charges announced today aggressively target schemes billing Medicare and Medicaid for services, testing and prescriptions that were not medically necessary or not actually provided to beneficiaries.
“Today’s action shows that our ability to detect and prosecute health care fraud grows more sophisticated with each passing day,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice is using every tool at our disposal to target the medical professionals and others who place their personal greed above the public good.”
“Corruption drains dollars from private insurers and public programs such as Medicare and Medicaid,” said U.S. Attorney Nick Hanna of the Central District of California. “This office will continue to hold accountable anyone – including medical professionals – who seek to bilk our nation’s health care system.”
“Sticking taxpayers with a bill for unnecessary healthcare services will never be tolerated,” said Special Agent in Charge Timothy B. DeFrancesca of the U.S. Health and Human Services, Office of the Inspector General. “Working closely with our law enforcement partners, our agency will tirelessly pursue physicians and others who threaten the integrity of Federal healthcare programs.”
“Health care fraud schemes cheat American taxpayers and health care programs out of millions of dollars,” said Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Field Office. “With the assistance of the public, the FBI and partner agencies will continue to combat this unscrupulous criminal activity that seeks to financially exploit our healthcare system.”
“Criminal activity that drives up medical costs for Californians at the expense of vulnerable communities will not be tolerated,” said California Attorney General Xavier Becerra. “The California Department of Justice will continue to seek opportunities to work with our federal partners to not only prevent wrongdoing, but also target fraudsters and hold them accountable.”
“Health plans are tempting targets for unscrupulous individuals,” said Los Angeles Regional Director for the U.S. Department of Labor’s Employee Benefits Security Administration Crisanta Johnson. When wrongdoers victimize health plans and their participants, EBSA and its fellow enforcement agencies will take prompt, aggressive, and coordinated action to hold them accountable.”
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Among those charged in Strike Force cases in the Central District of California are the following:
Ronald Weaver, M.D., 70, of Pacific Palisades, California, Sara Soulati, 49, of Santa Monica, California, John Weaver, M.D., 75, of Alhambra, California, Ronald Carlish, M.D., 78, of Pacific Palisades, California, Howard Elkin, M.D., 68, of Whittier, California, Wolfgang Scheele, M.D., 79, of Los Angeles, California, and Nagesh Shetty, M.D., 74 of Huntington Beach, California, were charged for their alleged participation in an approximately $135 million scheme to defraud Medicare through medically unnecessary cardiac treatments and testing through Global Cardio Care of Inglewood, California. The case is being prosecuted by Trial Attorneys Emily Z. Culbertson and Alexandra Michael of the Criminal Division’s Fraud Section.
Hilda Haroutunian, 59, of Sun Valley, California, Keyvan Amirikhorheh, M.D., 60, of Seal Beach, California, Lorraine Watson, 56, a physician’s assistant, of Valley Village, California, Noem Sarkisyan, 63, of North Hollywood, California, and Edmond Sarkisyan, 40, a medical assistant, of North Hollywood, California, were charged for their alleged participation in an approximately $10 million scheme to defraud the Family Planning, Access, Care and Treatment (Family PACT) program administered by Medi-Cal, the California Medicaid program, through fraudulent claims for family planning services, testing and prescriptions for non-existent patients submitted through Los Angeles Community Clinic, in Los Angeles, California, and associated diagnostic testing laboratories and pharmacies. The case is being prosecuted by Trial Attorney Alexis D. Gregorian of the Fraud Section.
Antonio Olivera, 78, of Downey, California, Emelita Cephass, 57, of Downey, California, and Martin Canter, 70, of Rancho Palos Verdes, California, were charged for their alleged participation in a hospice kickback scheme. Olivera was also charged for his alleged participation in a scheme to defraud Medicare, all involving Mhiramarc Management LLC, a hospice located in Downey, California. In a separate case, John O’Brien, hospice owner, was charged with health care fraud conspiracy for his alleged role in the fraud scheme. The cases are being handled by Trial Attorney Justin P. Givens of the Fraud Section.
Among those charged in cases being handled by the U.S. Attorney’s Office for the Central District of California are the following:
Navid Vahedi, 40, of Los Angeles, California, Vahedi’s pharmacy “Fusion Rx Compounding Pharmacy,” and Joseph S. Kieffer, 39, of Los Angeles, California, were charged for the alleged participation in a fraud and illegal kickback scheme. Fusion Rx produced compounded drugs, which are specially tailored medications that may be prescribed by a physician when the FDA-approved alternative does not meet the patient’s needs. Vahedi, the operator of Fusion Rx, and Kieffer, a marketer, allegedly paid commissions to marketers and some patients to obtain medically unnecessary compounded drugs to allow Fusion Rx to bill health care providers for those compounded drugs, many of which were reimbursed at rates much higher than average medications. To encourage patients to continue seeking the compounded drugs, Fusion Rx allegedly failed to charge copayments to patients. However, to avoid the scheme being uncovered in an audit, they also allegedly directed Fusion Rx staff to use gift cards to pay the patients’ copayments for them so that it would appear they made the required copayments. This conduct allegedly resulted in approximately $17 million in losses to health care providers while the defendants spent substantial sums of money on themselves, including Vahedi’s purchase of a 1963 Ford Mustang Cobra. Also charged in a related case was Joshua Pearson, 40, a marketer, of St. George, Utah, for his alleged receipt of illegal kickbacks from Fusion Rx, Vahedi, and Kieffer for patient referrals for compounded drugs. The cases are being prosecuted by Assistant United States Attorneys Ashwin Janakiram and Alexander Schwab of the Major Frauds Section and Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section.
Amir Friedman, 54, an anesthesiologist, of Calabasas, California, was charged for his alleged participation in a conspiracy to commit honest services mail and wire fraud and Travel Act violations involving approximately $800,000 in kickbacks for compounded pharmaceutical drugs involving New Age Pharmaceuticals, Inc., located in Beverly Hills, California. The case is being prosecuted by Assistant United States Attorney Ashwin Janakiram.
Susan H. Poon, D.C., 54, a Southern California chiropractor out of Dana Point, California, was charged for her alleged participation in an approximate $2 million scheme to defraud Anthem, Aetna, and other Blue Cross Blue Shield Association affiliates. Through this scheme, Poon allegedly submitted false and fraudulent claims for chiropractic services never provided, medical diagnoses never given, and office visits that never occurred. Poon also allegedly submitted false and fraudulent prescriptions to a provider of durable medical equipment—or in-home medical devices that can cost thousands of dollars each—that relied on those false prescriptions in its reimbursement claims. Employees and employee-dependents of the United Parcel Service and Costco Wholesale Corporation who allegedly never received the claimed services or sought the claimed medical equipment were named as patients in Poon’s false claims and prescriptions. The case is being prosecuted by Assistant United States Attorney Daniel S. Lim of the Santa Ana Branch Office.
Mahyar David Yadidi, D.C., a Southern California chiropractor, was charged with conspiracy to commit health care fraud for operating a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association health care benefit plan. Yadidi allegedly defrauded the ILWU-PMA Plan through his chiropractic clinic, San Pedro Philips Chiropractic, by offering kickbacks to patients for attending the clinic and by billing the Plan for services that were not rendered to its patients, services that were not medically necessary, and services that were provided by unlicensed employees not qualified to perform them. Yadidi allegedly continued to operate his scheme after he was terminated as an authorized provider by the ILWU-PMA Plan. Ivan Semerdjiev, D.C., a chiropractor working for Yadidi, and Julian Williams, a personal trainer working for Yadidi, were also both charged in connection with this fraud conspiracy. In total, Yadidi, Semerdjiev, and Williams submitted almost $5 million to the ILWU-PMA Plan in allegedly fraudulent claims. The case is being prosecuted by Assistant United States Attorney Alex Wyman.
Darren Hines, D.C., a Southern California chiropractor, was charged with health care fraud for operating a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association health care benefit plan. Hines allegedly defrauded the ILWU-PMA Plan through his chiropractic clinic, Advanced Alternative Health, by billing for services not rendered and services being provided by unlicensed employees who were not qualified to perform them, all after Hines was terminated as an authorized provider by the ILWU-PMA Plan. Hines submitted over half a million dollars in allegedly fraudulent claims over a short period of time. The case is being prosecuted by Assistant United States Attorney Alex Wyman.
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The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The Fraud Section leads the Medicare Fraud Strike Force (MFSF), which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, MFSF maintains 15 strike forces operating in 24 districts and has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Broward County Resident Sentenced to 66 Months in Prison and Ordered to Pay over $200K for Defrauding Investors in Public Impact Projects Throughout AfricaRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida and the Office of Inspector General (OIG) for the Export Import Bank of the United States (EXIM Bank) announced that Bernd Zalke Rind, 63, of Broward County, Florida was sentenced to prison and ordered to pay restitution for orchestrating a fraud scheme that preyed on individuals looking to make public impact investments in Africa.
Rind had previously pled guilty to wire fraud and aggravated identity theft (Case No. 18-cr-60323). He was sentenced to 66 months in prison by U.S. District Senior Judge William J. Zloch on June 25, 2019. Last week, on September 13, 2019, Rind was ordered to pay $217,315 in restitution by U.S. District Judge Robert N. Scola, Jr.
According to the court docket, including the criminal Indictment and a Stipulated Factual Basis that was filed in support of Rind’s guilty plea, between October 2017 and through May 2018, Rind utilized fraudulent EXIM Bank documents as part of an “advance fee” scheme. As part of this scheme, Rind would obtain legitimate EXIM Bank documents through his company, B&T Trust, LLC. Rind would then alter these documents to make it appear that he had obtained EXIM Bank financing for various public interest construction projects in Africa. This included fake loans totaling hundreds of millions of dollars that, according to Rind, provided financing for a school in Botswana, a low-income housing project in Zimbabwe, a Solar Power plant, and a medical clinic in Zambia. Using the lure of lucrative and socially impactful investments, along with the assurance of guaranteed EXIM Bank financing, Rind tricked investors into paying him hundreds of thousands of dollars in up front “retainer fees” in order to avoid losing the fake EXIM loans that he had supposedly obtained. Rind received at least $217,315 in illegal proceeds as a result of his fraudulent scheme. The victim investors are located throughout Africa and the United States. This was Rind’s second Federal felony conviction related to fraudulent business practices.
U.S. Attorney Fajardo Orshan commended the investigatory efforts of EXIM Bank’s Office of Inspector General – Office of Investigations in this matter. This case was prosecuted by Assistant U.S. Attorney Frederic Shadley.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Bossier City resident sentenced to 40 months for stealing more than $180,000 in price changing schemeRead the Press Release
SHREVEPORT, La. – United States Attorney David C. Joseph announced that Peter Stifner, 34, of Bossier City, Louisiana, was sentenced Tuesday by U.S. District Judge Elizabeth E. Foote to serve three years and four months in federal prison for using a merchandise price changing scheme to steal more than $180,000. Foote also ordered Stifner to pay $180,117 in restitution and to forfeit thousands of dollars in stolen merchandise that law enforcement seized. Stifner, who previously pleaded guilty on January 7, 2019, faces deportation back to Slovakia because of his legal status.
Stifner conducted a scheme to steal merchandise from Walmart, Sam’s Club and Target by obtaining barcode stickers of lower priced merchandise and placing them over the barcodes of higher priced merchandise in the stores. He would then purchase the merchandise at the lower price and resell it online for a profit. As a result of his fraudulent activity, the defendant stole more than $180,000 during the course of the scheme.
The U.S. Postal Inspection Service conducted the investigation. Assistant U.S. Attorneys Cadesby B. Cooper and Cytheria D. Jernigan prosecuted the case.
Bartlesville Woman Sentenced for Stealing Almost $400,000 from Family-Owned BusinessRead the Press Release
A Bartlesville woman was sentenced today in federal court for stealing $394,058.20 from her employer and submitting a false tax return, announced U.S. Attorney Trent Shores.
U.S. District Judge Gregory K. Frizzell sentenced Gina Lisa Preble, 59, of Bartlesville, to 26 months in federal prison followed by five years of supervised release for bank fraud and subscribing to a false tax return. The court further ordered Preble to pay $394,058.20 in restitution.
“With five fraud related convictions since 1981, Gina Preble has made a career out of white collar crime,” said U.S. Attorney Trent Shores. “It is not only armed robbers who cause economic harm to our community. Fraudsters like Gina Preble must be prosecuted and dealt serious consequences. Enough is enough. Not only will she be required to pay back the money she stole from the victim, but she will also spend some hard time in federal prison.”
Preble was employed as a clerk at TransWood Carriers Incorporated from 2011 until her termination in 2017. In an effort to disguise her thefts, Preble created fraudulent “draft checks” which she mixed in with legitimate business expense “draft checks” in order to trick her supervisor into signing them. Preble deposited fraudulent draft checks totaling $394,058.20 into her personal checking account, and used the funds for her own personal gain. Additionally in 2016, Preble signed and submitted a false tax return, omitting the stolen funds as income.
The Financial Litigation Unit at the U.S. Attorney’s Office for the Northern District of Oklahoma will pursue the restitution owed to the victim.
IRS-Criminal Investigation and the FBI conducted the investigation. Assistant U.S. Attorney Charles M. McLoughlin prosecuted the case.
Baltimore Defense Attorney Facing Federal Indictment for Racketeering, Drug, and Money Laundering ConspiraciesRead the Press Release
Baltimore, Maryland – A federal grand jury has indicted Kenneth Wendell Ravenell, age 60, of Monkton, Maryland, on federal charges of racketeering conspiracy, conspiracy to commit money laundering, and narcotics conspiracy. The indictment was returned late on September 18, 2019.
The indictment was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Kelly R. Jackson of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
Law enforcement will have no comment beyond this press release at this time.
According to the indictment, Ravenell violated the legitimate and lawful purpose of the law firm where he worked in order to enrich himself and Individual 1 by receiving payments from a drug trafficker client and his associates in exchange for instructing the client and his associates how to evade law enforcement and continue their drug trafficking, laundering drug proceeds, and obstructing justice to protect the client and his associates.
Further, the indictment alleges that Ravenell knowingly protected and assisted co-conspirators in their drug trafficking by coaching co-conspirators about law enforcement techniques so that they could evade these techniques when they trafficked in narcotics. Ravenell allegedly used the law firm’s bank accounts to launder hundreds of thousands of dollars and protect the drug trafficking organization. Ravenell allegedly used the law firm’s bank accounts to receive drug payments and make payments to attorneys retained to represent other members of the conspiracy, concealing and misrepresenting the source of the funds to those attorneys. Ravenell allegedly created and caused the creation of false records, including a client file in the name of a person that the law firm did not represent, in order to conceal the source of the funds used to pay other lawyers for their representations of members of the conspiracy. According to the indictment, Ravenell misrepresented to employees of the law firm the purpose of payments he directed them to make for or on behalf of members of the conspiracy. Ravenell also allegedly received substantial cash payments derived from drug sales as compensation for laundering money and for protection he provided to his co-conspirators.
In addition, the indictment alleges that Ravenell and a co-conspirator obtained information about arrested co-conspirators, including whether or not they were cooperating and the status of their cases, and provided such information to other members of the conspiracy so that they could protect ongoing drug operations. The indictment alleges that Ravenell obtained access to incarcerated co-conspirators, whom he did not represent, so that Ravenell could attempt to improperly influence their testimony, attempt to cause them to execute false affidavits and witness statements which he knew to be false, and attempt to cause witnesses to withhold testimony from official proceedings against his client.
Finally, the indictment alleges that Ravenell participated in a conspiracy to distribute 1,000 kilograms or more of marijuana.
If convicted, Ravenell faces a maximum sentence of 20 years in federal prison for the racketeering conspiracy; a maximum of 20 years in prison for the money laundering conspiracy; and a maximum of life in prison for the narcotics conspiracy. The case will be handled by U.S. District Judge Liam O’Grady, who has been assigned to preside over this case in the District of Maryland.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Robert K. Hur commended the IRS-CI, the DEA, the Maryland Transportation Authority Police Department, the Phoenix (Arizona) Police Department, and the Arizona Financial Crimes Task Force for their work in the investigation and thanked the prosecutors who are handling the case.
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Baltimore County Man Pleads Guilty to Possession with Intent to Distribute FentanylRead the Press Release
Baltimore, Maryland – Devon Denzel Thompson, age 26, of Woodlawn, Maryland, pleaded guilty today to possession with intent to distribute three kilograms of fentanyl.
The guilty plea was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Rob Cekada of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) Baltimore Field Division; and Chief Melissa R. Hyatt of the Baltimore County Police Department.
“Law enforcement partners are working together to arrest and prosecute those who peddle deadly fentanyl on our streets and in our neighborhoods,” said U.S. Attorney Robert K. Hur. “Drug traffickers are on notice that dealing in fentanyl increases their odds of federal prosecution. We will continue to do everything we can to reduce overdose deaths from this drug and from all opioids. Add a gun to that equation and you face an even longer sentence in federal prison, where there is no parole—ever. Please, put down the gun and save a life—maybe even your own.”
According to his plea agreement, on March 16, 2018, Thompson was pulled over for a traffic violation by Baltimore County Police Department officers. During the course of the traffic stop, law enforcement asked Thompson to get out of his vehicle, but he did not comply. Instead, Thompson drove away, followed by the Baltimore County officers, who observed Thompson throwing items out of the window. Ultimately, Thompson was stopped and placed under arrest. Law enforcement recovered a digital scale and other drug paraphernalia from the vehicle. Law enforcement recovered the items Thompson threw from his vehicle, including a baggie containing over 40 grams of fentanyl.
Based on those recoveries, a warrant was obtained to search Thompson’s residence. During the search, law enforcement recovered three kilograms of fentanyl and over $10,000 from Thompson’s bedroom and a .380-caliber handgun and rounds of live ammunition from other areas of the house. Thompson admitted that the drugs and gun were his and that he possessed the gun in connection with his drug distribution.
As part of his plea agreement, Thompson is required to forfeit any assets directly traceable to the offense, including $14,144 in cash and the .380-caliber firearm and ammunition recovered from his home.
Thompson and the government have agreed that, if the Court accepts the plea agreement, Thompson will be sentenced to between 10 and 12 years in federal prison. U.S. District Judge George L. Russell, III has scheduled sentencing for December 20, 2019 at 11:00 a.m.
United States Attorney Robert K. Hur commended the ATF and the Baltimore County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Christopher M. Rigali and Lauren E. Perry, who are prosecuting the case.
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Alameda Resident Charged with Illegally Importing NarcoticsRead the Press Release
OAKLAND – The U.S. Attorney’s Office charged James Heyward Silcox III today with illegally importing controlled substances, announced United States Attorney David L. Anderson, Homeland Security Investigations Special Agent in Charge Tatum King, Coast Guard Investigative Service Special Agent in Charge Kelly Hoyle, and Customs and Border Protection Director of Field Operations Brian J. Humphrey.
According to the complaint, Silcox, 41, of Alameda, Calif., is alleged to have illegally imported Tramadol from Singapore and Germany. Tramadol is a Schedule IV controlled substance and narcotic.
The complaint describes three illegal shipments of Tramadol to Silcox from overseas. In July 2019, Customs and Border Protection (CBP) officers at the JFK International Air Mail Facility inspected a package from Singapore that contained approximately 865 grams of Tramadol. In August 2019, CBP officers at the San Francisco Air Mail Facility intercepted a package from Germany that contained 650 tablets containing Tramadol. On September 13, 2019, CBP officers in the San Francisco Air Mail Facility intercepted a package from Singapore that contained 458 grams of Tramadol. All three packages were addressed to post office boxes held by Silcox.
The complaint alleges that law enforcement officers removed the Tramadol from the August package and delivered it with substitute material to Silcox’s post office box on September 16, 2019. The same day, Silcox picked up the package.
Silcox, a U.S. Coast Guard Commander, was arrested September 17, 2019, at Coast Guard Island, in Alameda. He made his initial appearance in federal court in San Francisco this morning and was released on a personal recognizance bond. Silcox’s next scheduled appearance is at 10:30 a.m. on September 26, 2019, for identification of counsel and a preliminary hearing before the Honorable Kandis A. Westmore, U.S. Magistrate Judge.
A complaint merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum sentence of 5 years in prison, and a fine of $250,000, for each violation of 21 U.S.C. § 952(a). However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Sarah E. Griswold is prosecuting the case with the assistance of Elise Etter. The prosecution is the result of an investigation by the Homeland Security Investigations; the High Intensity Drug Trafficking Area-Transnational Narcotics Team (HIDTA-TNT); the U.S. Postal Inspection Service; the Department of Homeland Security Office of Inspector General; and the Coast Guard Investigation Service. The prosecution is part of the Organized Crime Drug Enforcement Task Force (OCDETF) National Heroin Initiative to combat the opioid crisis.
29 Defendants Indicted for Drug Conspiracy, International Money Laundering, Money Laundering Conspiracy, And/Or Related ChargesRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Enrique Pacheco, age 30, of McAlester; Liliana Alvarez Soto, age 22, of Oklahoma City; Leroy Carl Fox, age 40, of McAlester; Matthew Scott Scraper, age 37, of McAlester; Alyssa Mae Syvongsa, age 19, of Tulsa; Shiana Nicole Johnson, age 24, of Ada; Feather Cheyenne Pacheco, age 23, of Tahlequah; Marc Anthony Cox, age 43, of Fort Gibson; Krystal Sue-Ann Mayen, age 30, of Oklahoma City; Kendall Brent Smith, age 50, of Okmulgee; Michael Sean Gunn, age 30, of Alma, Arkansas; Magdalena B. Mallard, age 34, of Fort Smith, Arkansas; Wesley Michael Rollins, age 31, of Tulsa; Jamie Denise McDonald, age 30, of Tulsa; Kami Rai Gill, age 32, of Del City; Joel David Kazmierczak, age 46, of Broken Arrow; Alexandra Tristian Giemausaddle, age 31, of Anadarko; Trina Kay Rose, age 48, of Ada; Cheyenne Grace Alexus Tiger, age 22, of Oklahoma City; and Tina Marshall Stilwell, age 30, of Fort Gibson, were each indicted for Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1), and 841(b)(1)(A), punishable by not less than 10 years imprisonment and up to a $10,000,000 fine.
Muskogee residents Jose Miguel Pacheco, age 30; Maricsa Pacheco (Brown), age 29; Lannie Jo Carter, age 18; Daniel Pacheco, age 25; Teodoro Renteria Pacheco, age 55; Randy Eugene Langton, age 61; Tabitha Ann Bryant (Ford), age 37; Ervin Hernandez, age 31; and Christian Jonathan Hernandez, age 30, were also indicted for Drug Conspiracy. All 29 defendants are charged with conspiracy to distribute controlled substances, with some of those defendants additionally charged with other crimes, including International Money Laundering, Money Laundering Conspiracy and Distribution or Possession with Intent to Distribute Methamphetamine, Heroin, and/or Cocaine.
The Indictment alleges that beginning on November 4, 2016 and continuing until on or about September 11, 2019, in the Eastern District of Oklahoma and elsewhere, the defendants willfully and knowingly combined, conspired, confederated, and agreed together, and with others known and unknown to the Grand Jury, to commit offenses against the United States.
The Indictment also alleges that on certain dates from July 16, 2019 through August 8, 2019, in the Eastern District of Oklahoma, the defendants Enrique Pacheco, Lannie Jo Carter, Shaina Nicole Johnson, Trina Kay Rose, Daniel Pacheco, Maricsa Pacheco and Tabitha Ann Bryant, transmitted, transferred and attempted to transmit and transfer funds, that is United States Currency, by wire transfer from a place in the United States to a place outside the United States, with the intent to promote the carrying on of a specified unlawful activity, that is, the felonious importation, receiving, concealment, buying, selling, or otherwise dealing in a controlled substance, in violation of Title 21, United States Code, Section 1956(a)(2)(A) and Title 18, United States Code, Section 2, punishable by not more than 20 years imprisonment and a fine of the greater of $500,000.00 or two-times the amount of the transaction.
The charges arose from a joint investigation led by the Drug Enforcement Administration, along with the Federal Bureau of Investigation, the Internal Revenue Service, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Oklahoma Bureau of Narcotics and Dangerous Drugs, the Oklahoma Department of Corrections, the Oklahoma Highway Patrol, the Muskogee County Sheriff’s Office, the Muskogee Police Department, and the Tulsa County Sheriff’s Office. Additionally, many prominent agencies which are members of the DEA High Intensity Drug Trafficking Area Task Force (“HIDTA”), contributed to this investigation, including: the Tulsa Police Department, the Broken Arrow Police Department, the Chickasaw Nation Lighthorse Police Department, the Miami Police Department, the Moore Police Department, the El Reno Police Department, the Yukon Police Department, the Duncan Police Department, the Norman Police Department, the Choctaw Police Department, the Edmond Police Department, the Oklahoma County Sheriff’s Office, the Canadian County Sheriff’s Office, the Rogers County District Attorney’s Office, and the Oklahoma County District Attorney’s Office. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (“OCDETF”) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney.
United States Attorney Brian J. Kuester said, “Each year hundreds of people in Oklahoma die as a result of drug overdoses. Among the drugs contributing to these tragic deaths are methamphetamine and heroin. This operation, known as operation “Pop Can,” targeted an organization dealing those deadly drugs in the Eastern District and throughout Oklahoma.” Kuester added, “This investigation has been a shining example of how the public benefits when law enforcement agencies collaborate. The scope, duration, and success of this takedown would not have been possible without the participation of the agencies involved.”
“Operation Pop Can has thus far resulted in 25 arrests, and the seizure of over 30 pounds of meth and approximately 5 pounds of heroin. This investigation is yet another, where a contraband phone is smuggled into a DOC facility, and then utilized by an inmate to orchestrate criminal activity spanning across all three Oklahoma Federal Judicial Districts,” said DEA Assistant Special Agent in Charge John Scott. “The success in this case was a direct result of the collaboration between federal, state, and local agencies. It was a combined effort of everyone involved bringing their respective resources together to go after this criminal organization. There is no doubt that the takedown of this group will have a positive effect on our community.”
“The FBI works closely with our federal, state, and local law enforcement partners to combat organized crime and illegal drug trafficking in Oklahoma. Today’s arrests are a reminder to those who prey on our communities - your criminal activity will not be tolerated and you will be brought to justice,” said Melissa Godbold, Special Agent in Charge of the FBI’s Oklahoma City Division.
“The selling of illicit drugs in our communities negatively impacts nearly all aspects of our lives,” said Tamera Cantu, IRS Special Agent In Charge of the Dallas Field Office. “This investigation involves drug traffickers laundering their profits through wire transfers to Mexico. The role of IRS-Criminal Investigation in narcotics cases is to track down these profits and dismantle the drug trafficking organizations. Today’s indictments emphasize our commitment to this role as we work alongside our law enforcement partners to protect people’s security, health and wellbeing by bringing these criminals to justice.”
John Scully, Commissioner of the Oklahoma Department of Public Safety said, “Partnering with the Eastern District of the United States Attorney’s Office and our other law enforcement partners on this case, has resulted in multiple arrests and indictments. Those arrests will certainly keep Oklahomans safer and will have a positive impact on the drug epidemic in our communities. These Drug Trafficking Organizations commit violent crimes in order to continue their criminal enterprise and the desire by those addicted, to obtain these illegal drugs drives them to commit related crimes as well. Oklahomans should be proud of the coordinated response by the U.S. Attorney’s Office and these law enforcement agencies, to keep them safe.”
Oklahoma Bureau of Narcotics and Dangerous Drugs Control Interim Director Bob Cook said, “It takes law enforcement in a cooperative effort with our federal, state and local partners to dismantle these groups that threaten the peace and safety of our communities. OBN is committed in our mission to eradicate criminal drug organizations and fight to protect law abiding citizens.”
Muskogee County Sheriff Rob Frazier said, “Today’s search warrants and arrests represent the continued efforts of the Muskogee County Sheriff’s Office to combat illegal drugs and make Muskogee County a safer place for all. This office will continue our strong alliances with local, state, and federal law enforcement agencies to maximize our efforts against drug distributors in Muskogee County.”
“The Tulsa County Sheriff’s Office is proud to be part of this collaboration”, said Tulsa County Sheriff Vic Regalado. “These arrests are a perfect example of how our communities and the citizens of the Eastern District are safer, when local, state and federal authorities work together to take drug dealers off the streets.”
A grand jury Indictment does not constitute evidence of guilt. A grand jury Indictment is a method of bringing formal charges against the defendant. All defendants are presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt.
25 Southern California Defendants Face Federal Charges Alleging Fraud Schemes that Cost Health Care Programs Millions of DollarsRead the Press Release
LOS ANGELES – A local health care fraud enforcement action has resulted in federal charges against of 25 Southern California defendants for their alleged involvement in healthcare fraud schemes that fraudulently sought over $150 million from the Medicare and Medicaid programs, as well as private insurers and union health benefit plans. Fourteen of those charged in federal court in Los Angeles and Santa Ana are doctors or medical professionals.
The charges announced today target schemes billing Medicare, Medicaid and other health care plans for services, testing and prescriptions that were not medically necessary or not actually provided to beneficiaries.
The cases announced today are the result of investigations being conducted by the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG); the U.S. Department of Labor, Office of Inspector General; the U.S. Department of Labor, Employee Benefits Security Administration; the Defense Criminal Investigative Service; the Amtrak Office of Inspector General; the U.S. Office of Personnel Management, Office of Inspector General; the California Department of Insurance; and the California Department of Justice.
The criminal cases have been brought by the United States Attorney’s Office and prosecutors in the Health Care Fraud Unit of the Criminal Division’s Fraud Section at the Justice Department who work with law enforcement partners under the aegis of the Medicare Fraud Strike Force.
“Corruption drains dollars from private insurers and public programs such as Medicare and Medicaid,” said United States Attorney Nick Hanna. “This office will continue to hold accountable anyone – including medical professionals – who seeks to bilk our nation’s health care system.”
“Today’s action shows that our ability to detect and prosecute health care fraud grows more sophisticated with each passing day,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “The Department of Justice is using every tool at our disposal to target the medical professionals and others who place their personal greed above the public good.”
“Sticking taxpayers with a bill for unnecessary healthcare services will never be tolerated,” said Special Agent in Charge Timothy B. DeFrancesca of the U.S. Health and Human Services, Office of the Inspector General. “Working closely with our law enforcement partners, our agency will tirelessly pursue physicians and others who threaten the integrity of Federal healthcare programs.”
“Health care fraud schemes cheat American taxpayers and healthcare programs out of millions of dollars,” said Assistant Director in Charge Paul D. Delacourt of the FBI’s Los Angeles Division. “With the assistance of the public, the FBI and partner agencies will continue to combat this unscrupulous criminal activity that seeks to financially exploit our healthcare system.”
“Criminal activity that drives up medical costs for Californians at the expense of vulnerable communities will not be tolerated,” said California Attorney General Xavier Becerra. “The California Department of Justice will continue to seek opportunities to work with our federal partners to not only prevent wrongdoing, but also target fraudsters and hold them accountable.”
A total of 10 cases are being announced today. Those charged are:
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Dr. Ronald Weaver, 70, of Pacific Palisades; Sara Soulati, 49, of Santa Monica; Dr. John Weaver, 75, of Alhambra; Dr. Ronald Carlish, 78, of Pacific Palisades; Dr. Howard Elkin, 68, of Whittier; Dr. Wolfgang Scheele, 79, of Los Angeles; and Dr. Nagesh Shetty, 74 of Huntington Beach, who were charged for their alleged participation in an approximately $135 million scheme to defraud Medicare through medically unnecessary cardiac treatments and testing through Global Cardio Care of Inglewood. This case is being prosecuted by DOJ Trial Attorneys Emily Z. Culbertson and Alexandra Michael.
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Navid Vahedi, 40, of Los Angeles; Vahedi’s pharmacy, Fusion Rx Compounding Pharmacy; and Joseph S. Kieffer, 39, a marketer, of Los Angeles, who were charged in a fraud and kickback scheme. Vahedi and Kieffer, allegedly paid commissions to marketers and some patients to obtain medically unnecessary compounded drugs to allow Fusion Rx to bill health care providers for those compounded drugs, many of which were reimbursed at rates much higher than average medications. To encourage patients to continue seeking the compounded drugs, Fusion Rx allegedly failed to collect copayments from patients. However, to avoid the scheme being uncovered in an audit, they also allegedly directed Fusion Rx staff to use gift cards to pay the patients’ copayments for them so that it would appear they made the required copayments. This conduct allegedly resulted in approximately $17 million in losses to health care providers, while the defendants spent substantial sums of money on themselves, including Vahedi’s purchase of a 1963 Ford Mustang Cobra. Also charged in a related case was Joshua Pearson, 40, a marketer, of St. George, Utah, for his alleged receipt of illegal kickbacks from Fusion Rx, Vahedi and Kieffer for patient referrals for compounded drugs (Pearson is a 26th defendant in the cases being announced today). The cases are being prosecuted by Assistant United States Attorneys Ashwin Janakiram and Alexander Schwab of the Major Frauds Section and Assistant United States Attorney Jonathan Galatzan of the Asset Forfeiture Section.
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Hilda Haroutunian, 59, of Sun Valley; Dr. Keyvan Amirikhorheh, 60, of Seal Beach; Lorraine Watson, 56, a physician’s assistant, of Valley Village; Noem Sarkisyan, 63, of North Hollywood; and Edmond Sarkisyan, 40, a medical assistant, of North Hollywood, who were charged for their alleged participation in an approximately $10 million scheme to defraud the Family Planning, Access, Care and Treatment (Family PACT) program administered by Medi-Cal, the California Medicaid program, through fraudulent claims for family planning services, testing and prescriptions for non-existent patients submitted through Los Angeles Community Clinic and associated diagnostic testing laboratories and pharmacies. The case is being prosecuted by DOJ Trial Attorney Alexis D. Gregorian.
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Amir Friedman, 54, an anesthesiologist, of Calabasas, who is charged for his alleged participation in a conspiracy to commit honest services mail and wire fraud and Travel Act violations involving approximately $800,000 in kickbacks for compounded pharmaceutical drugs involving New Age Pharmaceuticals, Inc., in Beverly Hills. The case is being prosecuted by Assistant United States Attorney Ashwin Janakiram.
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Susan H. Poon, 54, a chiropractor who resides in Dana Point, who was arrested today after a federal grand jury charged her in an approximately $2 million scheme to defraud Anthem, Aetna, and other Blue Cross Blue Shield Association affiliates, including the Teamsters Western Region and Local 177 health care plans. Through this scheme, Poon allegedly submitted false and fraudulent claims for chiropractic services never provided, medical diagnoses never given, and office visits that never occurred. Poon also allegedly submitted false and fraudulent prescriptions to a provider of durable medical equipment that relied on those false prescriptions in its reimbursement claims. Employees and employee-dependents of the United Parcel Service and Costco Wholesale Corporation, who allegedly never received the claimed services or sought the claimed medical equipment, were named as patients in Poon’s false claims and prescriptions. The case is being prosecuted by Assistant United States Attorney Daniel S. Lim of the Santa Ana Branch Office.
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Antonio Olivera, 78, of Downey; Emelita Cephass, 57, of Downey; and Martin Canter, 70, of Rancho Palos Verdes, who were charged for their alleged participation in a hospice kickback scheme. Olivera was also charged for his alleged participation in a scheme to defraud Medicare. Both schemes involve Mhiramarc Management LLC, a hospice located in Downey. In a separate case, hospice owner John O’Brien was charged with health care fraud conspiracy for his alleged role in the fraud scheme. The cases are being handled by DOJ Trial Attorney Justin P. Givens.
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Mahyar David Yadidi, 37, a chiropractor who resides in Los Angeles, who was charged with conspiracy to commit health care fraud for operating a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association health care benefit plan. Yadidi allegedly defrauded the ILWU-PMA Plan through his chiropractic clinic, San Pedro Philips Chiropractic, by offering kickbacks to patients for attending the clinic and by billing the benefit plan for services that were not rendered to its patients, services that were not medically necessary, and services that were provided by unlicensed employees not qualified to perform them. Yadidi allegedly continued to operate his scheme after he was terminated as an authorized provider by the ILWU-PMA plan. Ivan Semerdjiev, 40, of Irvine, a chiropractor working for Yadidi, and Julian Williams, 44, of San Pedro, a personal trainer working for Yadidi, were also charged in connection with this fraud conspiracy. In total, Yadidi, Semerdjiev and Williams submitted almost $5 million in claims to the ILWU-PMA plan. The case is being prosecuted by Assistant United States Attorney Alex Wyman.
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Darren Hines, 49, a chiropractor who lives in the Harbor City neighborhood of Los Angeles, who was charged with health care fraud for operating a scheme to defraud the International Longshore and Warehouse Union – Pacific Maritime Association health care benefit plan. Hines allegedly defrauded the ILWU-PMA plan through his chiropractic clinic, Advanced Alternative Health, by billing for services not rendered and services being provided by unlicensed employees who were not qualified to perform them, all after Hines was terminated as an authorized provider by the ILWU-PMA plan. Hines allegedly submitted over $500,000 in fraudulent claims over a short period of time. The case is being prosecuted by Assistant United States Attorney Alex Wyman.
“Health plans are tempting targets for unscrupulous individuals,” said Crisanta Johnson, Los Angeles Regional Director for the U.S. Department of Labor’s Employee Benefits Security Administration. “When wrongdoers victimize health plans and their participants, EBSA and its fellow enforcement agencies will take prompt, aggressive, and coordinated action to hold them accountable.”
Thomas W. South, Deputy Assistant Inspector General for Investigations, the U.S. Office of Personnel Management, Office of Inspector General, said: “I am proud of the outstanding work of the OPM OIG investigative staff and our law enforcement partners. The OPM OIG has zero tolerance for unethical behavior and we will vigorously investigate cases of fraud and abuse by professionals in the health care industry.”
“An important mission of the Office of Inspector General is to investigate allegations of fraud relating to labor unions and their affiliated employee benefit plans. We will continue to work with our law enforcement partners to investigate these types of allegations,” said Quentin Heiden, Acting Special Agent-in-Charge, Los Angeles Region, U.S. Department of Labor, Office of Inspector General.
“Our office, in partnership with our fellow investigative agencies, will continue to comprehensively investigate and bring to justice the people who perpetrate health care fraud,” said Kevin Winters, Amtrak’s Inspector General. “We will remain vigilant in protecting Amtrak employees, retirees, and their dependents, by ensuring our health care dollars are not wasted on fraudulent providers.”
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent until and unless proven guilty.
The Justice Department’s Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. There are 15 strike forces operating in 24 federal districts, and, since its inception in March 2007, strike force prosecutors have charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion. In addition, HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
The U.S. Department of Labor, Office of Inspector General is responsible for identifying and reducing labor racketeering and corruption in employee benefit plans, labor-management relations, and internal union affairs. Through its criminal investigations and collaboration with the Employee Benefits Security Administration and other federal law enforcement partners, the DOL-OIG works diligently to ensure prosecution of individuals involved in wrongdoing related to union affairs.
The U.S. Department of Labor’s Employee Benefits Security Administration is responsible for protecting the retirement, health and other workplace-related benefits of America’s workers and their families. As part of its overall enforcement program, EBSA investigates criminal acts committed against employer- and union-sponsored health and welfare plans in coordination with other law enforcement partners.
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Tuesday 17 September 2019
Waterbury Crack Dealer Sentenced to 5 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that CHARLES WILKERSON, 37, of Waterbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 60 months of imprisonment, followed by five years of supervised release, for distributing crack cocaine.
According to court documents and statement made in court, in May and June 2018, law enforcement made four controlled purchases of crack cocaine from Wilkerson in Waterbury. One of the crack cocaine sales involved approximately 34 grams of crack.
Wilkerson was arrested on a federal criminal complaint on August 16, 2018. On May 2, 2019, he pleaded guilty to one count of distribution of 28 grams or more of cocaine base (“crack”).
Wilkerson, who is released on a $200,000 bond, is required to report to prison on October 7.
Wilkerson’s criminal history includes several state convictions, including five convictions for distributing narcotics. At the time of the drug sales in May and June 2018, he was released on bond after being arrested in Torrington for distributing crack and other offenses.
This matter was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Federal Bureau of Investigation and Waterbury Police Department. The case was prosecuted by Assistant U.S. Attorney Natasha Freismuth.
Virginia man indicted for falsely altering his military discharge papersRead the Press Release
MARTINSBURG, WEST VIRGINIA – Jon Sterling Williams, of Richmond, Virginia, was indicted today on a charge of falsely altering his military discharge paperwork, United States Attorney Bill Powell announced.
Williams, age 56, was indicted one count of “Altered Army Discharge Certificate.” Williams is accused of having a falsely altered discharge certificate, claiming he was awarded a Silver Star, two Purple Hearts, and two Bronze Stars. He was allegedly in possession of the certificate in January 2019 in Berkeley County.
Williams faces up to one year incarceration and a fine of up to $100,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Jeffrey A. Finucane is prosecuting the case on behalf of the government. The Veterans Affairs Police investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
United States Files Civil Lawsuit against Edward Snowden for Publishing a Book in Violation of CIA and NSA Non-Disclosure AgreementsRead the Press Release
The United States today filed a lawsuit against Edward Snowden, a former employee of the Central Intelligence Agency (CIA) and contractor for the National Security Agency (NSA), who published a book entitled Permanent Record in violation of the non-disclosure agreements he signed with both CIA and NSA.
The lawsuit alleges that Snowden published his book without submitting it to the agencies for pre-publication review, in violation of his express obligations under the agreements he signed. Additionally, the lawsuit alleges that Snowden has given public speeches on intelligence-related matters, also in violation of his non-disclosure agreements.
The United States’ lawsuit does not seek to stop or restrict the publication or distribution of Permanent Record. Rather, under well-established Supreme Court precedent, Snepp v. United States, the government seeks to recover all proceeds earned by Snowden because of his failure to submit his publication for pre-publication review in violation of his alleged contractual and fiduciary obligations.
The lawsuit also names as nominal defendants the corporate entities involved in publishing Snowden’s book. The United States is suing the publisher solely to ensure that no funds are transferred to Snowden, or at his direction, while the court resolves the United States’ claims. Snowden is currently living outside of the United States.
“Edward Snowden has violated an obligation he undertook to the United States when he signed agreements as part of his employment by the CIA and as an NSA contractor,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The United States’ ability to protect sensitive national security information depends on employees’ and contractors’ compliance with their non-disclosure agreements, including their pre-publication review obligations. This lawsuit demonstrates that the Department of Justice does not tolerate these breaches of the public’s trust. We will not permit individuals to enrich themselves, at the expense of the United States, without complying with their pre-publication review obligations.”
“Intelligence information should protect our nation, not provide personal profit,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This lawsuit will ensure that Edward Snowden receives no monetary benefits from breaching the trust placed in him.”
This lawsuit is separate from the criminal charges brought against Snowden for his alleged disclosures of classified information. This lawsuit is a civil action, and based solely on Snowden’s failure to comply with the clear pre-publication review obligations included in his signed non-disclosure agreements.
This matter is being handled by the Department of Justice’s Civil Division and the U.S. Attorney’s Office for the Eastern District of Virginia.
The claims asserted by the United States are allegations only; there has been no determination of liability.
United States Files Civil Lawsuit Against Edward SnowdenRead the Press Release
ALEXANDRIA, Va. – The United States today filed a lawsuit against Edward Snowden, a former employee of the Central Intelligence Agency (CIA) and contractor for the National Security Agency (NSA), who published a book entitled Permanent Record in violation of the non-disclosure agreements he signed with both CIA and NSA.
The lawsuit alleges that Snowden published his book without submitting it to the agencies for pre-publication review, in violation of his express obligations under the agreements he signed. Additionally, the lawsuit alleges that Snowden has given public speeches on intelligence-related matters, also in violation of his non-disclosure agreements.
The United States’ lawsuit does not seek to stop or restrict the publication or distribution of Permanent Record. Rather, under well-established Supreme Court precedent, Snepp v. United States, the government seeks to recover all proceeds earned by Snowden because of his failure to submit his publication for pre-publication review in violation of his alleged contractual and fiduciary obligations.
The lawsuit also names as nominal defendants the corporate entities involved in publishing Snowden’s book. The United States is suing the publisher solely to ensure that no funds are transferred to Snowden, or at his direction, while the court resolves the United States’ claims. Snowden is currently living outside of the United States.
“Intelligence information should protect our nation, not provide personal profit,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “This lawsuit will ensure that Edward Snowden receives no monetary benefits from breaching the trust placed in him.”
“Edward Snowden has violated an obligation he undertook to the United States when he signed agreements as part of his employment by the CIA and as an NSA contractor,” said Assistant Attorney General Jody Hunt of the Department of Justice’s Civil Division. “The United States’ ability to protect sensitive national security information depends on employees’ and contractors’ compliance with their non-disclosure agreements, including their pre-publication review obligations. This lawsuit demonstrates that the Department of Justice does not tolerate these breaches of the public’s trust. We will not permit individuals to enrich themselves, at the expense of the United States, without complying with their pre-publication review obligations.”
This lawsuit is separate from the criminal charges brought against Snowden for his alleged disclosures of classified information. This lawsuit is a civil action, and based solely on Snowden’s failure to comply with the clear pre-publication review obligations included in his signed non-disclosure agreements.
This matter is being handled by the U.S. Attorney’s Office for the Eastern District of Virginia and the Department of Justice’s Civil Division.
The claims asserted by the United States are allegations only; there has been no determination of liability.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
U.S. Attorney’s Office Settles Disability Discrimination Allegations with Operator of Skilled Nursing FacilitiesRead the Press Release
BOSTON – The U.S. Attorney’s Office reached an agreement today with Athena Health Care Systems (Athena), operator of 16 skilled nursing facilities in Massachusetts, to resolve allegations that they violated the Americans with Disabilities Act (ADA) by turning away patients because they were being treated for Opioid Use Disorder (OUD).
According to two complaints filed with the United States Attorney’s Office, individuals seeking admission at Athena facilities were denied because they were being treated with buprenorphine, a medication used to treat OUD. The individuals were seeking admissions to the facilities for health issues unrelated to their addiction, but required that the facilities administer their buprenorphine as they would administer any other medication. Individuals receiving treatment for OUD are generally considered disabled under the ADA, which, among other things, prohibits private healthcare providers from discriminating on the basis of disability.
Under the terms of the agreement, Athena will, among other things, adopt a non-discrimination policy, provide training on the ADA and OUD to admissions personnel, and pay a civil penalty of $10,000 to the United States.
“The opioid epidemic is a battle in which victory is measured by the number of lives saved,” said United States Attorney Andrew E. Lelling. “Medically-assisted treatment is a powerful tool for helping people in recovery to avoid relapse. To that end, my office will continue to identify and eliminate illegal barriers to treatment. We commend Athena for cooperating with our investigation and working with us to modify its policies for compliance with the ADA. We encourage other entities to proactively do the same.”
This matter is part of an ongoing effort by the U.S. Attorney’s Office to enforce the Title III of the ADA and to eliminate discriminatory barriers to treatment for Opioid Use Disorder (OUD). In May 2018, the U.S. Attorney’s Office reached the first settlement of this kind with Charlwell House, a rehabilitation center that provides skilled nursing services. Today’s settlement marks the second resolution in the District of Massachusetts.
This matter was handled by Assistant U.S. Attorney Gregory Dorchak of Lelling’s Civil Rights Unit.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney launches high school drug-free PSA contestRead the Press Release
WHEELING, WEST VIRGINIA – U.S. Attorney Bill Powell is encouraging high school students from across his district to spread the message of the dangers of drugs by holding a public service announcement contest.
“We obviously feel that aggressive prosecutions are a really important part of the drug battle. However, prevention and treatment are equally important goals. When students recognize the dangers of drug abuse, are educated on prevention efforts and encouraged in the process, significant progress can be made. We encourage as many students as possible to get involved,” said Powell.
The contest, which is open to all high schools in the 32 counties in the Northern District of West Virginia, is a chance for the students to write, act, and produce in their own television PSA, promoting a drug-free high school. Students are encouraged to come up with a drug-free message to share with their peers, produce a 60-second video, and submit the video to the contest by December 15, 2019.
All videos will be watched and judged by a panel of law enforcement partners and television professionals. The winner will be announced at the Cancer Research Classic basketball tournament January 3 and 4, 2020 at WesBanco Arena in Wheeling. The winner will receive an award from the U.S. Attorney’s Office, and the PSA will be shared with media outlets across the district for airing. All videos submitted to the contest will be showcased at the tournament.
Students are encouraged to join the Drug Free Club of America at their school to gain free admission to the event. For contest rules, questions, and more details, call 304-234-7743.
Two RGV Residents Order to Pay More Than $860,00 in RestitutionRead the Press Release
McALLEN, Texas – A durable medical equipment (DME) company owner and his biller have been sentenced for conspiring to submit fraudulent claims to Texas Medicaid, announced U.S. Attorney Ryan K. Patrick.
Edinburg resident Everardo Villarreal, 46, of Edinburg, and his secretary and Medicaid biller, Delilah Rae Robles, 39, of Weslaco, pleaded guilty June 24, 2019, admitting they submitted false claims for DME that was never delivered to Medicaid beneficiaries.
Today, U.S. District Judge Micaela Alvarez imposed a 40-month sentence for Villarreal, while Robles was sentenced to time served plus six months home confinement. Both will also be ordered to serve three years of supervised release following their sentences and have been ordered to pay restitution in the amount of $869,693.92.
Villarreal was the owner and operator of now defunct Durable Medical Supply Depot of Elsa. From on or about April 2010 to on or about September 2014, he and Robles billed Texas Medicaid in excess of $1,500,000 for DME that was either never delivered or were only partially delivered to Medicaid beneficiaries. Both Villarreal and Robles purchased or arranged for the purchase of personal identification numbers of local Medicaid beneficiaries in order to submit the false and fraudulent claims.
Previously released on bond, both were permitted to remain on bond. Villarreal will voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The Texas Attorney General’s Medicaid Fraud Control Unit, Department of Health and Human Services – Office of Inspector General and FBI conducted the investigation. Assistant U.S. Attorney (AUSA) Cynthia A. Villanueva and former Special AUSA Marian Swanberg prosecuted the case.
Two Plead Guilty in Decades Long Scheme to Defraud the U.S. GovernmentRead the Press Release
PROVIDENCE – A Rhode Island couple has pleaded guilty in federal court to charges they participated in a scheme that lasted more than twenty years to defraud the United States Government of hundreds of thousands of dollars in federally-funded benefits.
Lens Chappell, a/k/a Carter Jefferson, 71, and his wife, Mulin Alexandre, a/k/a Kesa Pittman and later Kesa Jefferson, 40, of Providence, admitted they jointly participated in schemes to fraudulently obtain government documents, state Medicaid, as well as federally-funded U.S. Department of Housing and Urban Development (HUD), U.S Health and Human Services (HHS) and Social Security benefits dating back to at least 1998.
Appearing today before U.S. District Court Judge John J. McConnell, Jr., Lens Chappell pleaded guilty to conspiracy to defraud the United States, theft of public money, false statement in a passport application or use, and aggravated identity theft. On Monday, Mulin Alexandre pleaded guilty before U.S. District Court Judge John J. McConnell, Jr. to conspiracy to defraud the United States and passport fraud. Both will be sentenced on December 4, 2019.
According to court documents, beginning in 1998, Lens Chappell took on a relative’s identity and used that identity and a stolen identity to identify his wife in order to obtain government documents, including passports. Chappell arranged for Alexandre to come from her native Haiti to the United States unlawfully, changing her identity to Kesa Pittman and later Kesa Jefferson.
The pair used the fraudulent identities to obtain state Medicaid benefits and federally-funded benefits from HUD, HHS, and Social Security. According to information presented to the Court, from 1998 to 2014, it is alleged that the Providence couple fraudulently received an estimated $450,000 in federally-funded benefits they were not entitled to receive.
Lens Chappell and Mulin Alexandre’s guilty pleas are announced by United States Attorney Aaron L. Weisman; Rhode Island Attorney General Peter F. Neronha; Scott E. Antolik, Special Agent in Charge of the Boston Field Office of the Social Security Administration, Office of the Inspector General/Office of Investigations; U.S. Department of Health and Human Services, Office of Inspector General Special Agent in Charge Phillip M. Coyne, Special Agent in Charge of the Boston Field Office of the U.S. Department of State, Diplomatic Security Service William B. Gannon; 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 Superintendent of the Rhode Island State Police Colonel James M. Manni.
United States Attorney Aaron L. Weisman thanks the Rhode Island Department of the Attorney General and the Rhode Island Department of Human Services for their continued assistance in the investigation of this matter and support in the preparation of this case for prosecution in federal court.
The case is being jointly prosecuted in U.S. District Court by Assistant United States Attorney Terrence P. Donnelly and Rhode Island Special Assistant Attorney General David T. Bonzagni.
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Topeka Men Plead Guilty to Federal Carjacking ChargeRead the Press Release
TOPEKA, KAN. – Two Topeka men pleaded guilty today to a federal carjacking charge, U.S. Attorney Stephen McAllister said.
Chauncey Elliott Lyles, 20, Topeka, Kan., and Mathdaniel Squirrel, 23, Topeka, Kan., both pleaded guilty to one count of carjacking.
In their pleas, they admitted that on Jan. 30, 2019, in Topeka, they threatened the driver of a 2007 Cadillac SUV and stole the vehicle.
Sentencing is set for Nov. 26. The parties have agreed to recommend a sentence of not less than 60 months and not more than 87 months.
McAllister commended the Topeka Police Department, the FBI and Assistant U.S. Attorney Skip Jacobs for their work on the case.
Three Gang Members Charged in Federal Court with Attempted MurderRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Peter C. Fitzhugh, the Special Agent in Charge of the New York Field Office of Homeland Security Investigations (“HSI”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), today announced the unsealing of an indictment charging three members of the MacBallas street gang with attempted murder, arising out of their role in an assault and attempted murder against a fellow inmate inside a New York City jail in June 2017.
Two of the defendants, KALVIN THWAITES and ANDREW BURRELL, were taken into federal custody last week and presented before U.S. Magistrate Judge James L. Cott. The remaining defendant, KENDALL NEWLAND, was taken into federal custody this morning and presented before U.S. Magistrate Judge Ona T. Wang. The case has been assigned to U.S. District Judge Victor Marrero. An initial pretrial conference is scheduled for September 20, 2019, at 2:00 p.m., before Judge Marrero.
Manhattan U.S. Attorney Geoffrey Berman said: “As alleged in the Indictment, the defendants tried to kill a fellow inmate in order to promote their membership in the MacBallas street gang. We are committed to working with our law enforcement partners to end gang violence, wherever it occurs.”
HSI Special Agent-in Charge Peter C. Fitzhugh said: “These MacBallas gang members were already serving time for their criminal acts when they tried to take the life of another inmate. When it comes to maintaining power and position, these individuals have little regard for human life. This is why law enforcement remains diligent in its gang enforcement both on and off the streets.”
According to the allegations contained in the Indictment[1] and statements made in court:
The MacBallas gang is a criminal enterprise that operates principally in and around the New York City area, including within city, state, and federal jails and prisons. Members and associates of the MacBallas engage in, among other things, narcotics trafficking, as well as acts of violence, to preserve and protect the power of the gang.
On June 7, 2017, the defendants, who were detained at the Vernon C. Bain Center, a New York City jail in the Bronx, New York, assaulted with a dangerous weapon and attempted to murder a fellow inmate in order to maintain or increase their position in the MacBallas.
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THWAITES, 26, of Queens, New York, NEWLAND, 25, of Mount Vernon, New York, and BURRELL, 28, of the Bronx, New York, are each charged with one count of assault and attempted murder in aid of racketeering activity, which carries a maximum sentence of 20 years in prison. The maximum potential sentence is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Berman praised the outstanding investigative work of HSI and the NYPD.
Assistant U.S. Attorneys Jason Swergold and Adam Hobson are in charge of the prosecution. The case is being handled by the Office’s Violent and Organized Crime Unit.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Texas Man Admits to Involvement in Transporting 76 AliensRead the Press Release
LAREDO, Texas – A 42-year-old resident of San Antonio had pleaded guilty to conspiring to transport 76 undocumented aliens, announced U.S. Attorney Ryan K. Patrick.
On June 11, 2019, Nelson Vargas-Torres attempted to drive a tractor-trailer through the Border Patrol checkpoint located at mile-marker 29 on Interstate Highway 35, north of Laredo. Authorities became suspicious when Vargas-Torres stated he was transporting plastics, when his bill of lading actually stated “clutch parts.” A trained K-9 subsequently alerted to the possible presence of concealed humans inside the locked trailer he was hauling. Law enforcement then used wire cutters to break the seal for the trailer and eventually rescued 76 undocumented aliens from Mexico, El Salvador and Honduras who were hidden inside.
Today, Vargas-Torres pleaded guilty before U.S. Magistrate Judge Diana Song Quiroga to conspiracy to transport undocumented aliens.
U.S. District Judge Marina Garcia Marmolejo will impose sentencing at a later date. At that time, Vargas-Torres faces up to 10 years imprisonment. Vargas-Torres has been and will remain in custody pending that hearing.
Customs and Border Protection and Immigration and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Francisco J. Rodriguez is prosecuting the case.
Tax Preparer Convicted of Conspiracy to Defraud IRS and Preparing False Tax ReturnsRead the Press Release
TRENTON, N.J. – A Maryland man working as a tax preparer in New Jersey was convicted today on charges of conspiracy to defraud the IRS by preparing false income tax returns for clients in order to boost business at tax preparation companies that he and others ran, U.S. Attorney Craig Carpenito announced.
Joseph Kenny Batts, 50, of Elkridge, Maryland, was convicted following a one-week trial before U.S. District Judge Michael A. Shipp in Trenton federal court on one count of conspiracy to defraud the United States and five counts of aiding and assisting in the preparation of false federal income tax returns.
According to documents in this case and the evidence at trial:
Since at least 2009 to April 2015, Batts was co-owner, along with conspirator Damien Askew, of Tax Pro’s, a tax return preparation and payroll business in Essex County, New Jersey, where Batts and others prepared tax returns. In order to boost their business, Batts, Askew, codefendants Tony Russell, Angelo K. Thompson and Rudolph Sanders conspired to falsify their clients’ income tax returns for the purpose of generating refunds in amounts that their clients were not entitled to receive. The fraudulent practices used to inflate tax refunds included fabricating and inflating credits for education and child care; deductions, such as charitable contributions and unreimbursed employee expenses; and Schedule C business losses.
As part of their scheme, Batts, Thompson, Askew, Russell and Sanders also used fraudulent IRS Forms 1098-T to support false education credits that they had claimed on their clients’ false federal income tax returns prepared at Tax Pro’s and Tax Solutions and Associates.
Batts also used the Paid Taxpayer Identification Number (PTIN) – the identification number that paid tax preparers are required to place on tax returns that they have prepared – of his conspirator tax preparers when preparing tax returns to conceal his identity as the actual tax return preparer, due to, among other things, his prior tax fraud conviction.
By inflating the tax refunds through fraudulent means, Batts and his conspirators caused a total tax loss to the United States in excess of $900,000.
Thompson, Askew, Sanders and Russell have previously pleaded guilty to their roles in the scheme and await sentencing.
The conspiracy charge carries a maximum potential penalty of five years in prison. The maximum sentence for aiding or assisting in the filing of false returns is three years in prison. Both are also punishable by a statutory maximum fine equal to the greatest of $250,000 or twice the gross amount of any pecuniary gain that any persons derived from the offense or twice the gross amount of any pecuniary loss sustained by any victims. Sentencing for Batts is scheduled for Jan. 16, 2020.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur, with the investigation leading to today’s conviction.
The government is represented by Assistant U.S. Attorneys Cari Fais and Jihee G. Suh and of the U.S. Attorney’s Office in Newark.
Statement from United States Attorney Jay E. Town on the Death of Tuscaloosa PD Investigator Dornell CousetteRead the Press Release
“Tuscaloosa PD Investigator Dornell Cousette’s end of watch has come too soon. Our thoughts and prayers are with his family, fiancé, children, and fellow officers. This is yet another heartbreaking reminder of the dangers our brave men and women of the badge face daily.”
South Florida Securities Lawyer Charged with Securities Fraud Relating to 1 Global Capital Investment SchemeRead the Press Release
A South Florida securities lawyer and former outside counsel for 1 Global Capital, LLC has been charged with securities fraud in connection with an investment fraud scheme that impacted more than 3,600 investors in 42 different states.
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge of the FBI’s Miami Field Office made the announcement.
Jan Douglas Atlas, 74, of Ft. Lauderdale, Florida, was charged today by information with one count of securities fraud, in violation of Title 15, United States Code, Sections 77q(a) and 77x, in Case No. 19CR60258. The case is assigned to U.S. District Judge Beth F. Bloom in Fort Lauderdale. If convicted, Atlas faces a maximum statutory sentence of up to five years in prison and a fine up to $10,000.
According to the information, 1 Global Capital LLC (1 Global) was a commercial lending business based in Hallandale Beach, Florida, that made the equivalent of “pay day” loans to small businesses at high interest rates. To fund these merchant cash advance loans, 1 Global obtained funds from investors nationwide, offering short-term investment contracts. The investors would supposedly receive a proportionate share of the principal and interest payments as the loans were repaid. 1 Global raised money using investment advisors and other intermediaries, with promises of significant commissions. In many cases, the commissions were not fully disclosed to investors. According to court records, 1 Global operated from early 2014 through approximately July 27, 2018, when it filed for bankruptcy. As of that time, 1 Global had more than 3,600 investors and had raised more than $330 million, and its own internal documents showed a $50 million cash deficit.
Substantial questions arose during 1 Global’s operations as to whether 1 Global was offering or selling a security and subject to federal and state securities laws, and whether the offering was required to be registered with the U.S. Securities and Exchange Commission. These questions were raised by investors, investment advisors, and regulators. Atlas acted as outside counsel for 1 Global and allegedly knew that if 1 Global’s investment offering were determined to be a security, it would undermine the ability of 1 Global to raise funds from retail investors and to continue to operate without substantial additional expenses and reporting requirements. Such a classification would undermine the profits and fees that 1 Global and its principals would be able to obtain from 1 Global’s operations.
Atlas was a long-time South Florida securities attorney who, in addition to his role as outside counsel for 1 Global, was a partner at Law Firm #1. The information alleges that at the request of 1 Global’s principals, Atlas authored two opinion letters in 2016 containing false information that Atlas allegedly knew would be used by 1 Global to operate the business unlawfully. The opinion letters falsely described how the 1 Global investment actually worked, describing the 1 Global investment inaccurately in order to achieve the opinion that Individual #1 and others at 1 Global desired. The opinion letters falsely described the duration of the investment, among other things, omitting the automatic renewal aspect and that the investment was being targeted toward retail, non-sophisticated investors (such as IRA account holders). Atlas intentionally made false and misleading statements in these opinion letters, according to the information, to give 1 Global, and its employees and agents, false legal cover to continue to conduct business unlawfully.
Atlas’s opinion letters were used and relied upon by 1 Global employees and agents to continue to raise money illegally. At or around the time that Atlas executed these letters he received payments from Attorney #1, an attorney who worked at Law Firm #1 and also had a fundraising role at 1 Global. Atlas allegedly understood that the payments he received from Attorney #1 constituted a percentage of commissions received by Attorney #1 of money raised by 1 Global from new investors. The funds totaled approximately $627,000 and were paid to Atlas’s personal checking account. These funds were not disclosed to Law Firm #1, and Atlas and Attorney #1 allegedly knew that they were required to disclose and share all fees paid by clients of Law Firm #1, with Law Firm #1.
Previously, on August 23, 2019, former 1 Global Chief Financial Officer Alan G. Heide entered a guilty plea to one count of conspiracy to commit securities fraud in connection with the 1 Global fraud scheme, in Case No. 19-60231-CR-RKA. Sentencing for Heide is set for December 12, 2019, before U.S. District Judge Roy K. Altman in Ft. Lauderdale.
In connection with a parallel civil enforcement action, the SEC today announced the filing of civil fraud charges against Atlas. In related cases, the SEC previously has filed civil fraud actions, SEC v. 1 Global Capital LLC and Carl C. Ruderman, Case No. 18-61991-CV-BB (S.D. Fla.), and SEC v. Alan G. Heide, Case No. 19-62047-CV-FAM (S.D. Fla.). The bankruptcy case, In re: 1 Global Capital LLC, et al., No. 18-19121-RBR (S.D. Fla.), remains pending.
An information is a charging instrument containing allegations. A defendant is presumed innocent unless and until proven guilty in a court of law.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI’s Miami Field Office. She also thanked the SEC’s Miami Regional Office, IRS Criminal Investigation’s Miami Field Office, and Florida’s Office of Financial Regulation for their assistance. This case is being prosecuted by Assistant U.S. Attorneys Jerrob Duffy and Lisa H. Miller, and Assistant U.S. Attorney Nicole Grosnoff is handling asset forfeiture related to this matter.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Smith County Man Guilty in Counterfeit Immigration Documents ConspiracyRead the Press Release
TYLER, Texas –A 45-year-old Tyler, Texas man has pleaded guilty to federal violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
Eleazar Juarez Juarez pleaded guilty to conspiracy to produce, transfer, and forge false identification documents today before U.S. Magistrate Judge K. Nicole Mitchell.
According to information presented in court, beginning in April 2009, Juarez Juarez was involved in a conspiracy to produce and sell fictitious U.S. identification documents to others. The false documents included U.S. Social Security cards and Permanent Residence cards. Juarez Juarez admitted to being personally responsible for the transfer of at least 25 false identification documents as part of this conspiracy. Juarez Juarez was indicted by a federal grand jury on April 23, 2019.
Under the federal statute, Juarez Juarez faces up to 5 years in federal prison at sentencing. The maximum statutory sentence prescribed by Congress is provided here for information purposes, as the sentencing will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office
This case is being investigated by the Federal Bureau of Investigation, Smith County Sheriff’s Office, U.S. Drug Enforcement Administration, U.S. Immigration and Customs Enforcement, and Texas Department of Public Safety. This case is being prosecuted by Assistant U.S. Attorney Alan R. Jackson.
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September Grand JuryRead the Press Release
United States Attorney Joe Kelly announced the federal Grand Jury for the District of Nebraska has returned 18 indictments charging 19 defendants. Indictments are charging documents that contain one or more individual counts that are merely accusations, and every defendant is presumed innocent unless and until proven guilty.
* Martin Alvarez Lopez, age 43, is charged with illegal reentry after deportation following a felony conviction on or about August 26, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Artemio Alvis-Lemus, age 45, is charged with illegal reentry after deportation on or about August 20, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Deaviea David Brown, age 19, is charged with felon in possession of ammunition on or about June 2, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Marquan Buchanan, age 20, of Lincoln, Nebraska, is charged with unlawful user of a controlled substance in possession of a firearm on or about May 16, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Antowyne L. Butler, age 18, of Lincoln, Nebraska, is charged with unlawful user of a controlled substance in possession of a firearm on or about May 13, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Lorenzo Manuel Estrada-Flores, age 34, is charged with illegal reentry after deportation on or about September 13, 2019, following an aggravated felony conviction. The maximum possible penalty if convicted is 20 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Jesus Noel Garfio, age 27, of Denver, Colorado, and Jenna Lynn Martinez, age 33, of Denver, Colorado, are charged in a two-count Indictment. Count I charges both defendants with possession with intent to distribute 5 grams or more of methamphetamine (actual) on or about July 16, 2019. The maximum possible penalty if convicted is 40 years’ imprisonment, $5,000,000 fine, 4-year term of supervised release, and a $100 special assessment. Count II charges both defendants with possession with intent to distribute a mixture or substance containing heroin on or about July 16, 2019. The maximum possible penalty if convicted is 20 years’ imprisonment, $1,000,000 fine, 3-year term of supervised release, and a $100 special assessment.
* Amiah Deshaun Jackson, age 21, of Lincoln, Nebraska, is charged in a two-count Indictment. Count I charges the defendant with unlawful user of a controlled substance in possession of a firearm between on or about March 22, 2019 and June 14, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with false statement during purchase of a firearm on or about May 3, 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Marcelo Lopez-De La Paz, age 50, is charged in a two-count Indictment. Count I charges the defendant of falsely representing a social security number to be his beginning on or about November 29, 2016. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraudulent use of identification documents to obtain employment on or about November 29, 2016. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Lorenzo Fermin Mateo Andres, age 22, is charged with illegal reentry after deportation on or about August 6, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Pedro Gabriel Mulul, age 40, is charged with illegal reentry after deportation on or about September 9, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Keanu Davont’a Murrell, age 19, is charged with unlawful user of a controlled substance in possession of a firearm on or about May 17, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Dustin Olofson, age 41, is charged in a three-count Indictment. Count I charges the defendant with possession with intent to distribute 50 grams or more of methamphetamine (actual) on or about April 18, 2019, after a conviction for a serious drug felony. The maximum possible penalty if convicted is Life imprisonment, $20,000,000 fine, 10-year term of supervised release, and a $100 special assessment. Count II charges the defendant with felon in possession of a firearm on or about April 18, 2019. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count III charges the defendant with possession with intent to distribute a mixture or substance containing methamphetamine on or about April 18, 2019, after a conviction for a serious drug felony. The maximum possible penalty if convicted is 30 years’ imprisonment, $2,000,000 fine, 6-year term of supervised release, and a $100 special assessment.
* Sean O’Neal, age 58, of Rancho Palos Verdes, California, is charged in a two-count Indictment. Count I charges the defendant with Cyber Stalking on or about April 12, 2016. The maximum possible penalty if convicted is 5 years’ imprisonment on each count, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with witness tampering on or about April 12, 2016. The maximum possible penalty if convicted is 3 years’ imprisonment on each count, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* David Alan Roberts, age 57, of Jacksonville, Texas, is charged with transmission of an interstate communication containing a threat to injure the person of another on or about September 3, 2019. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Martin Rosario-Rodriguez, age 32, is charged in a two-count Indictment. Count I charges the defendant with falsely representing a social security number to be his beginning on or about October 1, 2015. The maximum possible penalty if convicted is 5 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment. Count II charges the defendant with fraudulent use of identification documents to obtain employment on or about October 1, 2015. The maximum possible penalty if convicted is 10 years’ imprisonment, a $250,000 fine, a 3-year term of supervised release, and a $100 special assessment.
* Walter Jeovanny Santos, age 42, is charged with illegal reentry after deportation on or about September 10, 2019. The maximum possible penalty if convicted is 2 years’ imprisonment, a $250,000 fine, a 1-year term of supervised release, and a $100 special assessment.
* Jorge Villarreal-Rojo, of Omaha, is charged with possession with intent to distribute 500 grams or more of methamphetamine (mixture) on or about August 26, 2019. The maximum possible penalty if convicted is Life imprisonment, $10,000,000 fine, 5-year term of supervised release, and a $100 special assessment.
Schuylkill County Man Sentenced to Ten Years’ Imprisonment for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Anthony Navarro-Velez, age 34, of Shenandoah, Pennsylvania, was sentenced on September 9, 2019, to 121 months’ imprisonment by Senior U.S. District Court Judge James M. Munley, for his role in a conspiracy to distribute and possess with intent to distribute more than a kilogram of heroin.
According to United States Attorney David J. Freed, Navarro-Velez previously pleaded guilty to participating in the conspiracy during 2014 and 2015. Navarro-Velez admitted that he and others in the conspiracy distributed between one and three kilograms of heroin, which is approximately equivalent to between 40,000 and 120,000 retail bags of heroin. The heroin was obtained from suppliers in Paterson, New Jersey, and Hazleton, Pennsylvania.
Judge Munley also ordered Navarro-Velez to serve five years on supervised release following his prison sentence, and to forfeit firearms and his share of cash seized during the investigation.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Shenandoah Police. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. The Department of Justice reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local, and tribal law enforcement and the local community to develop effective, locally-based strategies to reduce violent crime.
This case was also brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
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Salvadoran National Sentence for Passport FraudRead the Press Release
BOSTON – A Salvadoran national residing in Worcester was sentenced yesterday in federal court in Worcester for passport fraud.
Neemias Pacheco-Santamaria, 33, was sentenced by U.S. District Court Judge Timothy S. Hillman to 13 months in prison and will face deportation upon completion of his sentence. Pacheco-Santamaria pleaded guilty in June 2019 to knowingly making false statements in applying for a U.S. passport.
In July 2018 Pacheco-Santamaria entered a Worcester Post Office and falsely used the name, date of birth, and Social Security number of a United States citizen from Puerto Rico to apply for a United States Passport.
The charge of passport fraud provides for a sentence of up to10 years in prison, three years of supervised release and a fine of $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and William B. Gannon, Special Agent in Charge of the U.S. Department of State, Diplomatic Security Service, Boston Field Office made the announcement today. Assistant U.S. Attorney Kristen M. Noto of Lelling’s Worcester Branch Office prosecuted the case.
Rock Island Felon to Serve Seven Years in Federal Prison for Illegally Possessing FirearmRead the Press Release
ROCK ISLAND, Ill. – On Sept. 16, 2019, Chief U.S. District Judge Sara Darrow sentenced Matthew Eric Moultrie, 20, of Rock Island, Ill., to seven years in federal prison for illegally possessing a firearm. Judge Darrow ordered that the federal sentence be served consecutively to two other criminal cases Moultrie has in Rock Island County.
On March 9, 2019, Moultrie pleaded guilty to the federal indictment that charged him with possessing a firearm as a felon on Sept. 14, 2018. According to court documents, on Sept. 14, 2018, Moultrie, a self-identified gang member, fired multiple rounds at an occupied vehicle in Rock Island. After officers identified Moultrie later that evening, he fled into an occupied home. Moultrie’s flight led to a two-hour standoff with law enforcement that ended with his surrender and arrest.
In ordering a sentence above the guideline range prescribed by the U.S. Sentencing Guidelines, Chief Judge Darrow found that Moultrie’s criminal behavior was aggravated, as he had posed a serious risk to his victims, the arresting officers, and the community at large.
The Rock Island Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the criminal investigation. Assistant U.S. Attorney Kevin Knight represented the government in the federal prosecution, in coordination with the Rock Island County State’s Attorney’s Office.
Rhode Island Man Pleads Guilty to Threatening Massachusetts ProfessorRead the Press Release
BOSTON – A Rhode Island man pleaded guilty today to sending a series of violent and threatening e‑mails to a Massachusetts professor and a university.
Matthew Haviland, 29, of North Kingstown, R.I., pleaded guilty today to one count of stalking and two counts of transmitting a threat in interstate commerce. U.S. District Court Judge Leo T. Sorokin scheduled sentencing for Dec. 10, 2019. According to the terms of a plea agreement, the government will recommend to the Court a sentence of 21 months in prison, three years of supervised release and a fine. Haviland was charged in April 2019.
Over the span of several hours on March 10, 2019, Haviland sent a Massachusetts professor a string of approximately 28 e-mails containing messages that included such threats as, “I will rip every limb from your body and eat it, piece by piece” and “I will bite through your eyeballs while you’re still alive, and I will laugh while you scream.” The professor to whom Haviland sent the threats has published and spoken in favor of abortion rights, and several of Haviland’s e‑mails made reference to abortion. In two successive e-mails, for example, Haviland wrote, “You will be held accountable for every f****** baby you murdered through your horrible deception of they are not humans” and “You will have your face ripped off and eaten by me, personally. I will enjoy raping your body after you’re dead. And that will only be the start.”
Haviland also sent several e-mails on March 15, 2019 to a professional school at the professor’s university. Those e-mails included the message: “You people are Evil, putrid, and somebody shoudl [sic] BOMB your school for spreading the idea that it’s okay to HATE people because of their race.” A later e-mail to the professional school said only, “You should be Murdered in cold blood.”
Haviland faces a sentence of up to five years in prison, three years of supervised release, a fine of up to $250,000, or twice the gross gain or loss resulting from the offense, whichever is greater, and restitution. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling and Joseph Bonavolonta, Special Agent in Charge of the FBI Boston Division, made the announcement today. Boston FBI’s Joint Terrorism Task Force conducted the investigation with the assistance of Warwick and North Kingstown (RI) Police Departments. Assistant U.S. Attorney Brian A. Pérez‑Daple of Lelling’s National Security Unit is prosecuting the case.
Political Consultant Pleads Guilty to Fraud Scheme Involving Scam PACsRead the Press Release
ALEXANDRIA, Va. – A Maryland political consultant pleaded guilty today to wire fraud as a result of his fraudulent scheme to solicit millions of dollars in political contributions through several scam-PACs that he founded and advertised as supporting candidates for office and other political causes.
“Rogers preyed upon his victims political beliefs with the intent of enriching his companies, his business partners, and himself,” said G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia. “Individuals like Rogers, who engage in sophisticated fraud schemes will be held accountable for their actions. We have a long history of investigating and prosecuting fraud cases here in the Eastern District, and we remain committed to working closely with our law enforcement partners to ensure that those who choose to engage in fraud activity are held accountable and brought to justice.”
According to court documents, from August 2012 through 2018, Kelley Rogers, 55, of Annapolis, operated multiple PACs, including Conservative StrikeForce (CSF), Conservative Majority Fund, and Tea Party Majority Fund. In that role, Rogers engaged vendors to send e-mail solicitations and make telemarketing phone calls to prospective donors seeking political contributions to his PACs. Rogers approved the text and other content of all solicitations, and determined how CSF spent the contributions individual donors gave in response to the solicitations.
“Rogers defrauded countless citizens across the country who sought to participate in the political process, and instead used the money to benefit himself and to perpetuate his fraudulent scheme,” said Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division. “Today’s guilty plea shows that the Department of Justice is committed to investigating and prosecuting those who undermine the integrity of our democratic institutions, including those who commit fraud to line their own pockets along the way.”
During the course of his scheme, Rogers solicited contributions from the general public for his PACs based on materially false and fraudulent pretenses, representations, and promises. For example, in or around 2013, Rogers, working with an email vendor, represented through CSF that money contributed by donors would be used to support the campaigns of a candidate for Governor and a candidate for Attorney General of Virginia through, among other things, get-out-the-vote efforts and the hiring of attorneys to ensure the integrity of the elections. In or around 2014, Rogers represented that donations to the PAC would be spent on assistance and support for military veterans. In truth and in fact, Rogers never intended to spend, and never actually spent, any of the money raised by Rogers’ PACs on get-out-the-vote efforts or lawyers to protect the integrity of the 2013 Virginia and Attorney General elections, or on assistance and support for military veterans. Instead, Rogers spent nearly all of the money raised from donors to benefit himself, his associates, and his PACs, including by pouring the majority of donor money into the solicitation of more donations.
“Rogers swindled millions of dollars from individuals attempting to participate in our democratic process,” said Assistant Director in Charge Timothy R. Slater of the FBI’s Washington Field Office. “Instead of using donations to provide assistance and support to military veterans, as he advertised, Rogers used the money to benefit himself and his associates. I commend the dedication and hard work of our FBI agents and analysts who investigated this egregious fraud against innocent U.S. citizens.”
In addition to the misrepresentations that Rogers made to donors, Rogers and others fraudulently billed his PACs for services that were not performed, thereby misappropriating donor money that had been contributed to the PACs by individuals across the country. Rogers and his associates also made false statements to the Federal Election Commission about how they were spending PAC money.
Finally, Rogers admitted that he and several others also participated in a scheme to use conduits (“straw donors”) to make contributions to a candidate running to represent a district in the U.S. House of Representatives that exceeded the limits placed on individual campaign contributions under federal law.
As part of his guilty plea, Rogers agreed to pay $491,299 in restitution to victims of his fraud scheme, as well as a forfeiture money judgment in the amount of $208,954.
Rogers pleaded guilty to wire fraud and is scheduled to be sentenced on Jan. 17, 2020. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General of the Justice Department’s Criminal Division, and Timothy R. Slater, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Liam O’Grady accepted the plea. Assistant U.S. Attorney Kimberly Pedersen and Trial Attorneys John Taddei and Bill Gullotta of the Criminal Division’s Public Integrity Section are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information are located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:19-cr-270.
Owner of Defense Contracting Firm Sentenced to 42 Months in Prison for Defrauding U.S. Department of Defense and Conspiring to Violate Arms Export Control ActRead the Press Release
CAMDEN, N.J. – A Camden County, New Jersey, man was sentenced today to 42 months in prison for defrauding the U.S. Department of Defense (DoD) by providing military equipment parts that were not what he had contracted to provide and illegally accessing technical information as a non-United States citizen, U.S. Attorney Craig Carpenito announced.
Oben Cabalceta, 53, of Atco, New Jersey, previously pleaded guilty before U.S. District Judge Noel L. Hillman to an information charging him with one count of wire fraud and one count of conspiracy to violate the Arms Export Control Act. Judge Hillman imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Cabalceta was the owner of two companies: Owen’s Fasteners Inc. (Owen’s) and United Manufacturer LLC (United), two manufacturing companies in West Berlin, New Jersey.
Cabalceta admitted that between August 2004 and March 2016, Owen’s and United obtained contracts with the DoD by falsely claiming that the military parts it contracted to provide would be the exact product provided by authorized manufacturers. The DoD contracts specified that the military parts were critical application items for military equipment, including aircraft. Contrary to the contract, Cabalceta either used his companies to contract with local manufacturers to supply non-conforming parts or made the parts himself at a significantly reduced cost. The non-conforming parts were shipped from New Jersey to various DoD locations around the country. DoD paid Owen’s and United $1,890,939 for those parts.
Cabalceta also admitted that he was a native and citizen of the Republic of Costa Rica who overstayed his tourist visa in 2000 and was not a United States citizen or lawfully in the United States. To further his fraud on the DoD, in August 2005 and November 2010, Cabalceta caused his brother-in-law, Roger Sobrado, to submit to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf of Owen’s. In 2015, Cabalceta caused an accomplice to submit to the DoD a fraudulent application for access to export controlled drawings and technical data on behalf of Owen’s.
Cabalceta acknowledged that access to the controlled drawings and technical data was limited to citizens of the United States and those lawfully in the United States. He admitted that on July 28, 2011, and at various times between January 2013 and November 2015, while unlawfully in the United States, he accessed or downloaded drawings that were sensitive in nature that required special access.
In addition to the prison term, Judge Hillman sentenced Cabalceta to two years of supervised release and ordered to pay $1.8 million in restitution. He will also be deported to Costa Rica upon completion of his sentence.
On Oct. 11, 2018, Sobrado pleaded guilty before Judge Hillman to a three-count information charging him with conspiracy to commit wire fraud, conspiracy to violate the Arms Export Control Act, and income tax evasion. He was sentenced Sept. 4, 2019, to three years in prison.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Defense, Defense Criminal Investigative Service Northeast Field Office, under the direction of Special Agent in Charge Leigh-Alistair Barzey; special agents of the U.S. Attorney’s Office; special agents of the Department of Homeland Security, Homeland Security Investigations, under the direction of Special Agent in Charge Brian Michael; special agents of IRS - Criminal Investigation, under the direction of Special Agent in Charge John R. Tafur; and special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge John F. Grasso for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney=s Office Criminal Division in Camden.
North Branford Woman Charged with Embezzlement, Fraud and Identity Theft OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MELISSA MEOLE, 34, of North Branford, was arrested today on a federal criminal complaint charging her with multiple embezzlement, fraud and identity theft offenses.
MEOLE appeared this afternoon before U.S. Magistrate Judge Robert M. Spector in New Haven and was released on a $200,000 bond.
As alleged in the criminal complaint, Meole was employed by Bridgeport Health Care Center Inc. (“BHCC-INC”), a corporation that operates a nursing and rehabilitation facility in Bridgeport known as Bridgeport Health Care Center (“BHCC”). Prior to November 2018, BHCC-INC also operated a second nursing and rehabilitation facility in Bridgeport known as Bridgeport Manor. Meole worked in BHCC-INC’s business office and was responsible for processing payroll and for handling the finances of the Bridgeport Manor resident trust account. Between approximately January and October 2018, Meole embezzled approximately $150,000 from the BHCC and Bridgeport Manor resident trust accounts.
In addition, the complaint alleges that Meole stole more than $29,000 from BHCC-INC in the form of payroll checks, which she deposited into her personal bank account.
It is further alleged that, after Meole’s employment with BHCC-INC was terminated in October 2018, Meole defrauded another employer of more than $9,000, and she defrauded multiple banks in an identity theft and check kiting scheme.
The complaint charges Meole with theft or embezzlement in connection with health care, which carries a maximum term of imprisonment of 10 years; health care fraud, which carries a maximum term of imprisonment of 10 years; wire fraud, which carries a maximum term of imprisonment of 20 years; bank fraud, which carries a maximum term of imprisonment of 30 years; and aggravated identity theft, which carries a mandatory two-year term of imprisonment.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the U.S. Department of Labor – Office of Inspector General, U.S. Department of Labor – Employee Benefits Security Administration, Boston Regional Office, Internal Revenue Service – Criminal Investigation Division. The case is being prosecuted by Assistant U.S. Attorneys David E. Novick and Neeraj N. Patel.
New Jersey Tax Return Preparer Sentenced to Six Years in Prison for False Tax FilingRead the Press Release
NEWARK, N.J. – A tax preparer from Bergen County, New Jersey, was sentenced today to 72 months in prison for filing false federal income tax returns, stealing client refunds, and committing identity theft in connection with refunds stolen from a deceased taxpayer, U.S. Attorney Craig Carpenito announced.
Wayne Dunich-Kolb, 54, previously pleaded guilty before U.S. District Judge Kevin McNulty to four counts of a second superseding indictment: aiding and assisting preparation of false tax returns; subscribing to false tax returns; mail fraud while on pretrial release; and aggravated identity theft. Judge McNulty imposed the sentence today in Newark federal court.
According to documents filed in this case and statements made in court:
Dunich-Kolb operated a tax preparation business through which he prepared and filed tax returns through various tax preparation entities, including Dunich-Kolb LLC, Jadran Services Corp., Adriatica Payroll Corp., Adriatica Tax Planning LLC, and Adriatic Tax Planning LLC (collectively, the “tax preparation entities”), which he ran from his former residences in Saddle River and Montvale, New Jersey. Dunich-Kolb also maintained a U.S. Post Office box in Las Vegas, Nevada, that he used in connection with his tax preparation business.
Dunich-Kolb caused many of his clients to form fictitious partnerships or corporations that existed in name only and had no business purpose other than to falsely reduce the clients’ tax liability. He prepared fraudulent business returns for clients’ fictitious businesses by fabricating and inflating business expenses, such as advertising, travel and other miscellaneous expenses, in order to generate fraudulent business and partnership losses, which he then used to substantially reduce taxpayers’ taxable income on their individual federal income tax returns.
Dunich-Kolb falsified clients’ individual federal income tax returns, partnership returns, and corporation returns by fabricating and inflating: (1) business and partnership Schedule K-1 losses; (2) deductions for unreimbursed employee business expenses, including home office, vehicle mileage and fuel expenses; and (3) expenses and cost basis of rental properties, including vehicle mileage and travel expenses for rentals located within or a short distance from the primary residence.
Dunich-Kolb also falsified his own personal federal income tax returns by substantially underreporting income from his tax preparation and accounting business. For tax year 2008, Dunich-Kolb received gross income totaling approximately $638,000 while claiming income of only $489.
Dunich-Kolb also stole certain clients’ federal tax refunds, including the refunds of a deceased client, by causing the IRS to mail the refund checks to Dunich-Kolb’s Las Vegas Post Office box, from where they were forwarded to Dunich-Kolb’s residence in Montvale. Dunich-Kolb, without authorization, used the Social Security numbers of the deceased client and another client on IRS forms claiming that the latter client was entitled to the deceased client’s refunds for tax years 2013 and 2014 and causing the IRS to mail the deceased client’s refunds to his Las Vegas Post Office box. Once in receipt of the clients’ tax refund checks, Dunich-Kolb deposited the checks into accounts that he controlled and converted the funds to his own personal use.
In addition to the prison term, Judge McNulty sentenced Dunich-Kolb to three years of supervised release and ordered him to pay restitution of $2.2 million to the IRS.
U.S. Attorney Carpenito credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan R. Tafur, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Sarah Devlin, Chief of the Asset Recovery and Money Laundering Unit.
Defense counsel: Jeffrey G. Garrigan Esq., Summit, New Jersey
Navajo Man Sentenced to 36 Years in Prison for Seven Counts of Aggravated Sexual Abuse of a ChildRead the Press Release
PHOENIX – Last week, Bo Lane, 36, of Coppermine, Ariz., was sentenced by Chief U.S. District Judge G. Murray Snow to 432 months in prison, followed by a lifetime term of supervised release, on seven counts of aggravated sexual abuse of a child, each count to run concurrently. Lane was found guilty of those counts by a federal jury on June 14, 2019.
The evidence at trial showed that between 2013 and 2017, Lane sexually abused two minor victims. The abuse started when the victims were six years old and took place on the Navajo Indian Reservation. Both Lane and the victims are members of the Navajo Nation.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Navajo Nation Police Department. The prosecution was handled by Christina J. Reid-Moore and Dimitra H. Sampson, Assistant U.S. Attorneys, District of Arizona, Phoenix.
Milledgeville Tax Preparer Enters Guilty Plea in Tax Fraud Case, Investigators Marked 5K+ "Suspicious" ReturnsRead the Press Release
MACON – The former owner of Mr. Tax, Etc., a tax preparation business, admitted to manipulating and falsifying client information on filed tax returns in federal court on Thursday, announced Charles “Charlie” Peeler, the United States Attorney for the Middle District of Georgia. Willie Moore, Jr., 48, of Braselton, Georgia, entered a guilty plea to one count of Conspiracy to Defraud the United States on Thursday, September 12, 2019 before U.S. District Judge Tilman “Tripp” Self. A co-defendant in the case, James Prather, 47, of Douglasville, Georgia, previously pleaded guilty to one count Conspiracy to Defraud the United States on May 8, 2019, causing a $1,000,000 loss to the United States Government. The total loss to the United States Government caused by Mr. Moore will be determined at his sentencing. The Conspiracy charge carries a maximum sentence of five years, a maximum fine of $250,000 and up to three years of supervised release. Both defendants agreed to be permanently enjoined from preparing or filing federal tax returns for anyone other than themselves. A sentencing date has not been set.
“Both defendants criminally manipulated the tax system for their benefit, ultimately stealing a vast sum of money from taxpayers,” said Charlie Peeler, the U.S. Attorney. “We will continue to work vigorously to protect taxpayers from government fraud. I want to commend the investigating agents with the Southeast Scheme Development Center and the IRS for their work.”
“Mr. Moore used a foundation of fraud and deceit in order to cheat the government and victimize innocent taxpayers and is now being held accountable for his egregious behavior,” said IRS Criminal Investigation, Atlanta Field Office Special Agent in Charge, Thomas J. Holloman. “We want the individuals who engage in these schemes to know that we will pursue prosecution and seek to hold them accountable for their corrupt endeavors to rob the nations’ taxpayers. IRS – Criminal Investigation is particularly appreciative of the partnership we enjoy with the Office of the United States Attorney in the investigation and prosecution of tax crimes.”
"Together with U.S. Attorney Peeler and our law enforcement partners, we will continue to pursue fraud and abuse in bankruptcy cases,” said Nancy J. Gargula, U.S. Trustee for Georgia, Florida, the Commonwealth of Puerto Rico and the U.S. Virgin Islands (Region 21).
Co-defendants and business partners Mr. Moore and Mr. Prather orchestrated a tax refund scheme through Mr. Moore’s tax return preparation business AMAB Enterprises, d/b/a/ Mr. Tax, Etc., a storefront location on North Columbia Street in Milledgeville, Georgia. Investigators identified a total of 5,529 suspicious federal income tax returns for the 2011, 2012, 2013, and 2014 tax years, and a high percentage of returns, 97%, receiving a refund. Mr. Moore admitted in his guilty plea agreement that to increase a client’s tax returns, he would manipulate the taxpayer’s returns by listing fraudulent businesses, profits, educational expenses, and household income. Most of the clients interviewed stated that their income tax returns were not explained to them nor were they reviewed with them. Some clients never even received a copy of their returns or were given partial copies missing pages, parts, or schedules. Bank records show more than $400,000 in transfers to the defendants, the profits of the tax refund scheme.
The case was investigated by the Internal Revenue Service’s (IRS) Criminal Investigation Division and the IRS’s Southeast Scheme Development Center. The charges resulted, in part, from a referral by the U.S. Trustee for Region 21 to the U.S. Attorney. The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 21 is headquartered in Atlanta, with additional offices in Macon and Savannah, Georgia; Miami, Orlando, Tallahassee and Tampa, Florida; and San Juan, Puerto Rico.
Assistant U.S. Attorney Shanelle Booker prosecuted the case for the Government. Questions can be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603 or Melissa Hodges, Public Affairs Director (Contractor), United States Attorney’s Office, at (478) 765-2362.
Mexican National Pleads Guilty to Illegal Reentry, Transporting Illegal AliensRead the Press Release
Roanoke, VIRGINIA – An illegal alien from Mexico, who was removed from the United States on April 2, 2018 and reentered the country without permission, pleaded guilty today in U.S. District Court in Roanoke to illegally reentering the United States without permission and transporting illegal aliens. United States Attorney Thomas T. Cullen made the announcement.
Eliezer Ramos-Arriola, a.k.a. Francisco Gaitan-Arreola, a.k.a. Francisco Gaitan Arreola, a Citizen of Mexico, waived his right to be indicted and pleaded guilty today to an Information.
“Human smuggling – particularly when it involves unaccompanied children – is a serious federal crime,” U.S. Attorney Cullen stated today. “I appreciate the commitment and hard work of our partners at the Department of Homeland Security in investigating this case and other criminal violations of our immigration laws.”
“Individuals cannot expect to repeatedly flout our immigration laws without consequence,” said Lyle Boelens, acting field office director of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO) Washington, D.C. “This individual had already been afforded due process in our nation’s immigration courts and not only again defied our laws but facilitated the illegal entry of countless others.”
“As the lead federal agency investigating alien smuggling, HSI is committed to employing the full range of our unique law enforcement authorities and techniques,” said Raymond Villanueva, special agent in charge of ICE Homeland Security Investigations (HSI) Washington, D.C. “Human life may not be treated like a commodity.”
According to court documents, Ramos-Arriola is a citizen of Mexico who was removed on April 2, 2018 from El Paso, Texas. The defendant never sought nor obtained authorization to reapply for admission into the United States.
However, On April 4, 2019, Ramos-Arriola was the driver of a vehicle stopped by law enforcement in Christiansburg, Virginia. Inside the vehicle, officers located seven illegal aliens, consisting of six adult males and one, unaccompanied, minor female. These individuals were citizens of Mexico and Honduras and not authorized to be in the United States.
In exchange for assistance in illegally crossing into the United States, Ramos-Arriola had agreed to work for a smuggling service to transport passengers to various locations throughout the United States, including within the Western District of Virginia. The defendant picked-up the seven passengers in Phoenix, Arizona and was paid $600 to feed the passengers and to pay for fuel. In addition, the mother of the juvenile female entered into an agreement with the smuggling service to pay an additional $4,000 to the driver who delivered her daughter to the Western District of Virginia.
The investigation of the case was conducted by the U.S. Immigration and Customs Enforcement, Virginia State Police, and Montgomery County Sheriff’s Office. Assistant United States Attorney Charlene R. Day is prosecuting the case for the United States.