Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Tuesday 30 July 2019
Repeat Offender Sentenced to 125 Months in Federal Prison for Dealing MethamphetamineRead the Press Release
EUGENE, Ore.—Randall Neal Wynn, 59, of Goshen, Oregon, was sentenced today to 125 months in federal prison and five years’ supervised release for possessing methamphetamine.
According to court documents, Wyn’s criminal history spans nearly four decades. His drug, gun and elude offenses date back to the 1980s, and he has previously been sentenced to prison on at least six separate occasions, including a 17-year sentence imposed in 1993.
After multiple supervised release violations and four additional years in prison, Wynn’s criminal behavior continued. A Lane County Interagency Narcotics Team (INET) investigation revealed, in 2017, that Wynn was again dealing methamphetamine. INET arrested Wynn twice in 2017, after searches led to the seizure of narcotics, weapons and cash.
The Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) also investigated Wynn, as did the City of Springfield and Cottage Grove, Oregon Police Departments. On March 22, 2018, ATF arrested Wynn in Cottage Grove, seizing more than a pound of methamphetamine and a quarter pound of heroin.
Wynn’s criminal conduct has repeatedly endangered the public. In 1985, Wynn eluded police in a vehicle, nearly striking two officers; in 1993, while under the influence of drugs and alcohol, he seriously injured a woman in a head-on crash, causing her to be taken by life flight to a Portland-area hospital; and on multiple occasions in 2018, Wynn evaded police in dangerous vehicle escapes.
On December 12, 2018, Wynn pleaded guilty to two counts of possession with intent to distribute methamphetamine.
This case was investigated by ATF, INET and the City of Springfield and Cottage Grove Police Departments, with assistance from the U.S. Marshals Service. It was prosecuted by Jeffrey Sweet, Assistant U.S. Attorney for the District of Oregon, working with the Lane County District Attorney’s Office.
Rapid City Man Sentenced on Firearm ChargeRead the Press Release
United States Attorney Ron Parsons announced that Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
William Hopkins, age 25, was sentenced on July 26, 2019, to 3 years in federal prison, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
The charge related to Hopkins, a previously convicted felon prohibited from possessing firearms, knowingly being in possession of a Glock, model 43, 9mm semi-automatic pistol during a traffic stop on July 23, 2018, at Rapid City.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Safe Trails Task Force, and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Hopkins was immediately turned over to the custody of the U.S. Marshals Service.
Randolph County man sentenced for drug distributionRead the Press Release
ELKINS, WEST VIRGINIA – Jeffrey Lynn Woods, of Elkins, West Virginia, was sentenced today to 121 months incarceration for distributing methamphetamine, United States Attorney Bill Powell announced.
Woods, age 58, pled guilty to one count of “Conspiracy to Distribute More than 5 Grams of Methamphetamine” in January 2019. He admitted to conspiring with others to distribute more than five grams of methamphetamine, also known as “crystal” and “ice,” from the fall of 2016 to July 2018 in Randolph County.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives; the Mountain Region Drug & Violent Crimes Task Force; and the Elkins Police Department investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge John Preston Bailey presided.
Psychiatrist with Office in Opelika Indicted on Drug Distribution ChargesRead the Press Release
Montgomery, AL – On Tuesday, July 30, 2019, Dr. James Henry Edwards, III, 72, of Fairhope, Alabama, appeared in court for an arraignment after being charged with drug distribution offenses, announced United States Attorney Louis v. Franklin, Sr. Until his arrest on July 11, 2019, Dr. Edwards was a practicing psychiatrist with offices in Opelika and Gulf Shores, Alabama.
The indictment charges Edwards with three counts of unlawfully distributing controlled substances by writing medically illegitimate prescriptions. Among the drugs Edwards is alleged to have unlawfully prescribed are: alprazolam, commonly known by its brand name version, “Xanax”; dextroamphetamine-amphetamine, commonly known by its brand name version, “Adderall”; hydrocodone, commonly known by its brand name versions, “Norco,” and “Lortab”; lisdexamfetamine, commonly known by its brand name version, “Vyvanse”; and diazepam, commonly known by its brand name version, “Valium.”
If convicted, Edwards faces a maximum sentence of 20 years’ imprisonment on each count. He also faces substantial monetary penalties and restitution.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt. At his arraignment, Edwards pleaded not guilty to each count. A trial is currently scheduled for December 2, 2019 in Opelika. This case was investigated by the Drug Enforcement Administration’s Tactical Diversion Squad, the Federal Bureau of Investigation, and the United States Department of Health and Human Services – Office of Inspector General. Assisting on the case were: the Opelika, Alabama Police Department; the Alabama Board of Medical Examiners; the Gulf Shores, Alabama Police Department; the United States Department of Defense – Office of Inspector General; and the Alabama Department of Public Health. Assistant United States Attorneys Jonathan S. Ross, Megan A. Kirkpatrick, and Alice S. LaCour are prosecuting the case.
Probation Officer Charged with Violating Civil Rights of Two Individuals He SupervisedRead the Press Release
U.S. Attorney Trent Shores today announced that a Probation and Parole Officer from the Oklahoma Department of Corrections was charged with civil rights violations against two individuals he supervised while they were on probation.
“No individual or group of individuals is above the law. I am committed to identifying and eradicating civil rights abuses by law enforcement and others,” said U.S. Attorney Trent Shores. “The defendant in this case was an Oklahoma Probation and Parole Officer. The civil rights violations he is alleged to have perpetrated upon two female victims are not only stomach churning, but an affront on our justice system.”
According to the Information, Steven Michael Powers, 35, of Broken Arrow, is charged with two counts of Deprivation of Rights Under Color of Law based on events that occurred on or between Nov. 3, 2015, and Jan. 19, 2017. In one incident, Powers allegedly forced his penis upon a victim’s mouth against her will. In a separate incident, he allegedly exposed himself to a second victim, touched her shoulder with his penis, and masturbating in front of her. In both incidents, it is alleged that Mr. Powers willfully deprived the two victims of liberty without due process of law, which includes the right to bodily integrity, a right secured and protected by the Constitution and laws of the United States.
"While in his capacity as an Oklahoma Probation and Parole Officer, Steven Powers' conduct was an abuse of the authority and trust bestowed upon him,” said Special Agent in Charge Melissa Godbold of the FBI Oklahoma City Division. “The civil rights violations in which Powers is alleged to have committed not only violate the Constitutional rights of his victims, but undermines the integrity of our judicial system. This investigation epitomizes the FBI’s commitment to addressing incidents in which an officer's actions betray the public’s trust."
US Attorney Shores commended the thorough investigation by the Federal Bureau of Investigation and Oklahoma Department of Corrections. He also noted the diligence and victim-oriented approach of Assistant United States Attorney Jarrod Leaman in bringing this prosecution.
“I cannot underscore enough the importance of the work done by these investigators and AUSA Leaman to curb civil rights abuses. To those who think they can violate and abuse the civil rights of others: this aggression will not stand. Our system will not tolerate your criminal transgressions.”
An Information is a formal accusation of criminal conduct, not evidence of guilt. The defendant is presumed innocent unless and until proven guilty.
The FBI and Oklahoma Department of Corrections conducted the investigation. Assistant U.S. Attorney Jarrod Leaman is prosecuting the case.
Princess Anne Man Sentenced to over 11 Years in Federal Prison for Brandishing a Firearm During and in Furtherance of the Armed Robbery of an Armored Vehicle in Salisbury, MarylandRead the Press Release
Baltimore, Maryland – U.S. District Judge Richard D. Bennett today sentenced Ryan Shevin Smith, age 39, of Princess Anne, Maryland, to 141 months in federal prison, followed by three years of supervised release, for conspiring to commit the robbery of an armored vehicle in Salisbury, Maryland on January 22, 2018, for participating in the robbery and for brandishing a firearm during and in furtherance of a crime of violence. Smith pleaded guilty to conspiring to commit the robbery and to participating in the robbery, and a federal jury convicted him of brandishing the firearm.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Jennifer C. Boone of the Federal Bureau of Investigation, Baltimore Field Office; and Salisbury Police Chief Barbara Duncan.
According to the evidence presented at his two-day trial and court documents, at approximately 7:15 a.m. on January 22, 2018, Smith and his co-defendants, Michael Watts and Orneth South, approached the driver of the armored vehicle as he was removing cash cassettes from an ATM machine at a credit union on Mt. Hermon Road in Salisbury, Maryland. Co-defendant Michael Watts placed a .40-caliber handgun to the driver’s head and disarmed him of his service weapon. Watts testified that he got the .40-caliber handgun from Smith, which was named “Big Nasty,” and that Smith took the gun back after the robbery. Watts then grabbed the driver by the hair and order him to open the door of the armored vehicle. After the driver opened the door, Smith and South removed several bags of money from the vehicle, as well as ATM cassettes filled with cash. Watts then forced the driver into the vehicle, where he used zip ties to secure the driver’s hands. The robbers then fled with the money, stealing a total of $1,324,288. The robbers went to Smith’s residence in nearby Princess Anne and divided the stolen money. South and Watts then left and headed south, toward North Carolina.
On April 20, 2018, Orneth South, age 49, of Charlotte, North Carolina, was arrested on a warrant issued as a result of the robbery, and pleaded guilty to his role in the armored car robbery in Maryland, as well as a robbery in North Carolina. On January 31, 2019, co-defendant Michael Watts, a/k/a “Turtle,” age 42, of Brooklyn, New York, pleaded guilty to his role in the robbery. Watts was arrested on May 18, 2018, in Queens, New York, and at the time of his arrest, was wearing approximately $70,000 in jewelry, including a custom turtle pendant, which was purchased with the proceeds of the armored vehicle robbery. Watts also admitted using his portion of the stolen money to purchase a Mercedes S430 automobile, clothes, two tombstones, and to pay off bills and rent.
Judge Bennett ordered all three defendants to pay restitution in the full amount of the victim’s loss, $1,324,288.
Judge Bennett previously sentenced Watts to nine years in federal prison, and sentenced South to 20 years in federal prison.
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. Project Safe Neighborhoods (PSN) is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. 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.
United States Attorney Robert K. Hur commended the FBI and the Salisbury Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys P. Michael Cunningham and Paul A. Riley, who prosecuted the case.
# # #
Potosi Man Sentenced to 19 Years for Enticing a Minor for Illegal Sexual ActivityRead the Press Release
SPRINGFIELD, Mo. – A Potosi, Missouri, man was sentenced in federal court today for enticing a child victim in Lawrence County, Mo., to engage in illegal sexual activity.
Kevin Michael Nosser, 51, was sentenced by U.S. District Judge M. Douglas Harpool to 19 years and seven months in federal prison without parole. The court also sentenced Nosser to a lifetime of supervised release following incarceration.
Nosser, who pleaded guilty on March 7, 2019, admitted that he communicated online with a 12-year-old victim in Lawrence County, and made arrangements to pick her up and bring her to his residence in Potosi to engage in sexual activity.
When the child victim was reported as missing by her mother, the FBI and the Missouri State Highway Patrol began searching for her. The family discovered multiple video calls between the victim and Nosser on her Google Play account, and FBI agents linked a phone number on the victim’s cell phone to Nosser. State troopers then located Nosser and the child victim in Potosi.
This case was prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI, the Southwest Missouri Cyber Crimes Task Force, the Missouri State Highway Patrol and the Lawrence County, Mo., Sheriff’s Department.
Project Safe Childhood
This case was 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.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."Pittsburgh Man Charged with Federal Drug and Gun CrimesRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on charges of violating the federal narcotics and firearms laws, United States Attorney Scott W. Brady announced today.
The two-count Indictment named Antwon Shamar Bonner, 21, of Pittsburgh, Pennsylvania, as the sole defendant.
According to the Indictment, on or about July 12, 2019, in the Western District of Pennsylvania, Bonner possessed with intent to distribute a quantity of heroin, a Schedule I controlled substance. The Indictment further alleges that Bonner possessed four firearms in furtherance of the drug trafficking crime charged in the Indictment.
The law provides for a maximum total sentence of not less than five years and up to life in prison, a fine of not more than $1,250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. 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.
Assistant United States Attorney Jerome A. Moschetta is prosecuting this case on behalf of the government.
The Bureau of Alcohol, Tobacco, Firearms, and Explosives conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pierre Man Sentenced on Meth and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Possession with Intent to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person was sentenced on July 29, 2019, by U.S. District Judge Roberto A. Lange.
Paul Frost, age 47, was sentenced to 24 months in federal prison, followed by 3 years of supervised release, a $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $200.
Frost was indicted by a federal grand jury on October 16, 2018. He pled guilty on April 3, 2019.
The convictions stemmed from an incident that occurred on June 15, 2018, where Frost knowingly and intentionally possessed with the intent to distribute methamphetamine. Further, on both April 3, 2017, and June 15, 2018, Frost, being an unlawful user of a controlled substance, did knowingly illegally possess firearms.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Pierre Police Department. Assistant U.S. Meghan N. Dilges prosecuted the case.
Frost will report to the custody of the U.S. Marshals Service on August 6, 2019.
Pierre Man Sentenced for Possession of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man convicted of Possession of Child Pornography was sentenced on July 29, 2019, by U.S. District Judge Roberto A. Lange.
David Foster, age 36, was sentenced to 57 months in federal prison, followed by 5 years of supervised release, $130,500 in restitution, a $5,000 assessment to the Domestic Trafficking Victims’ Fund, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Foster was indicted by a federal grand jury on January 17, 2018. He pled guilty on May 1, 2019.
In early 2017, an agent with the Department of Homeland Security Investigations (HSI) initiated an undercover operation targeting chat rooms and child sexual exploitation on the “Kik” Messenger application. During the operation, the Kik group “No Limits” was discovered. An HSI agent recorded the activity of the group to include capturing images and videos of child exploitation/pornography that were shared among the group. Each member of the group received all of the content (images/videos) shared by other users in the group each time a user logged into the Kik application. One of the members of the group was identified as Foster, who was using the screen name “smartdguy”.
On May 4, 2017, a search warrant was executed in Pierre. A forensic analysis determined Foster’s iPhone6 contained over 4,700 images (including duplicates) of child pornography. A review of the videos on Foster’s iPhone6 revealed over 100 videos (including duplicates) of child pornography.
As part of his sentence, Foster was also ordered to pay $130,500 to 18 different victims whose images were found on his phone.
This case was prosecuted as part of Project Safe Childhood, a nationwide initiative of the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorney’s 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 those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
This case was investigated by the Department of Homeland Security Investigations. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Foster was immediately turned over to the custody of the U.S. Marshals Service.
Patient Recruiter Found Guilty in $1.3 Million Medicare Kickback SchemeRead the Press Release
A federal jury in Detroit, Michigan found a patient recruiter guilty today for his role in a scheme involving approximately $1.3 million in fraudulent Medicare claims for home health care that were procured through the payment of kickbacks.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Matthew Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy Slater of the FBI’s Detroit Division and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Following a six-day trial, Dominic Trumbo, 45, of Lexington, Kentucky, was found guilty of one count of conspiracy to pay and receive health care kickbacks and three counts of receipt of health care kickbacks. Sentencing has been scheduled for Dec. 3, 2019 before Chief U.S. District Judge Denise Page Hood of the Eastern District of Michigan, who presided over the trial.
According to evidence presented at trial, from 2009 to 2017, Trumbo, owner of Trumbo Consulting Agency, engaged in an illegal kickback scheme to defraud Medicare of approximately $1.3 million through fraudulent home health claims. The evidence showed that Trumbo solicited and received kickbacks in exchange for referring Medicare beneficiaries to serve as patients at multiple home health agencies. These home health agencies then submitted claims to Medicare for home health services that were purportedly provided to those beneficiaries.
The FBI and HHS-OIG investigated the case. Trial Attorneys Patrick Suter and Steven Scott of the Criminal Division’s Fraud Section are prosecuting the case.
The 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. Since its inception in March 2007, the Medicare Fraud Strike Force, which maintains 14 strike forces operating in 23 districts, has charged nearly 4,000 defendants who have collectively billed the Medicare program for more than $14 billion.
Parmelee Man Sentenced for Assault by Strangulation and Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man convicted of Assault by Strangulation and Suffocation and of Failure to Register as a Sex Offender was sentenced on July 29, 2019, by U.S. District Judge Roberto A. Lange.
Michael Yellow Eyes, age 37, was sentenced to 24 months in prison, followed by 3 years of supervised release, for Assault by Strangulation and Suffocation. He was sentenced to 15 months in prison, followed by 5 years of supervised release, for Failure to Register as a Sex Offender. The sentences will be served concurrently. Yellow Eyes was also ordered to pay a special assessment to the Federal Crime Victims Fund in the amount of $200.
Yellow Eyes was indicted by a federal grand jury for Assault by Strangulation and Suffocation on October 16, 2018. He was indicted for Failure to Register as a Sex Offender on December 11, 2018. He pled guilty to both offenses on May 3, 2019.
The conviction for Failure to Register as a Sex Offender stemmed from conduct that occurred in August 2018. Yellow Eyes was convicted of Abusive Sexual Contact in April 2017. As a result of this conviction, he is required to register as a sex offender and to update his registration within three business days of relocating or changing employment. On August 1, 2018, Yellow Eyes moves from his registered address in Rosebud, South Dakota, but did not update his sex offender registration until August 29, 2018.
The conviction for Assault by Strangulation and Suffocation stemmed from an incident that occurred in Parmelee on September 20, 2018, wherein Yellow Eyes assaulted his spouse and intimate partner by strangling and suffocating her until she could not breathe.
These cases were investigated by the Rosebud Sioux Tribe Law Enforcement Services and the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the cases.
Yellow Eyes was immediately turned over to the custody of the U.S. Marshals Service.
Ohio County man admits to firearms chargeRead the Press Release
WHEELING, WEST VIRGINIA – Derek Schultz, of Wheeling, West Virginia, has admitted to a firearms charge, United States Attorney Bill Powell announced.
Schultz, age 53, pled guilty to one count of “Unlawful Possession of N.F.A. Firearm.” Schultz admitted to having an unregistered .30 caliber machine gun in January 2019 in Ohio County.
Schultz faces up to 10 years incarceration and a fine of up to $250,000 for each count. 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.
This case was brought as part of Project Safe Neighborhoods (PSN). Project Safe Neighborhoods is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. 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.
Assistant U.S. Attorney David J. Perri is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
U.S. Magistrate Judge James P. Mazzone presided.
New Orleans Business Owner Pleads Guilty to Conspiracy to Defraud First NBC BankRead the Press Release
NEW ORLEANS – The United States Attorney’s Office announced that KENNETH CHARITY (“CHARITY”), age 54, a resident of New Orleans, Louisiana, pleaded guilty today to conspiring to defraud First NBC Bank, the New Orleans-based bank that failed in April 2017.
According to the Bill of Information, from in or around February 2007 through April 2017, CHARITY had a banking relationship with First NBC Bank, individually and through certain entities. During that time, Bank President A acted as the loan officer for CHARITY and the loan officer to certain of CHARITY’s entities (“the Entities”). By the time First NBC Bank failed, the balances on the loans issued to CHARITY and the entities totaled more than $18 million. CHARITY, Bank President A, and others knowingly conspired to defraud First NBC Bank. According to the Bill of Information, the purpose of the conspiracy was for CHARITY, Bank President A, and others to unjustly enrich themselves, disguise the true financial status of CHARITY and the Entities, conceal the accurate performance, and misrepresented the purpose of the loans made to KENNETH CHARITY and the Entities.
KENNETH CHARITY, Bank President A, and others provided First NBC Bank with materially false and fraudulent documents and financial statements, which, among other things, overstated the value of KENNETH CHARITY’s assets, understated his liabilities, and omitted material information. These false statements disguised his and the Entities’ true financial condition.
The Bill of Information also alleges that it was part of the conspiracy for Bank President A and others to disguise CHARITY and the Entities’ true financial condition by, among other things, issuing new loans to CHARITY and the Entities, which would pay older loans that CHARITY was unable to repay. The new loans would then appear to be current and performing, while the old loans appeared to have been paid. In reality, CHARITY had insufficient income and cash flow to support his debt at First NBC Bank. Bank President A was well-aware that CHARITY was unable to repay his loans, yet Bank President A continued to falsely represent in bank records that CHARITY and his Entities were profitable.
Additionally, the Bill of Information alleges CHARITY, Bank President A, and others, carried out the conspiracy by repeatedly lying in bank loan documents about the purpose of loans that Bank President A approved for CHARITY and the Entities. Specifically, Bank President A approved loans for CHARITY and his Entities that appeared to be for legitimate business purposes. In reality, CHARITY spent loan proceeds on personal expenses. Bank President A was aware that CHARITY did not spend the loan proceeds consistently with the purposes stated on the loan documents. For example, from in or around August 2014 through in or around December 2016, Bank President A caused three loans to be disbursed to one of CHARITY’s entities for the purpose, in part, of enclosing a patio at a beignet shop located at 620 Decatur Street. CHARITY never built the patio. The loan proceeds were used instead to pay CHARITY’s overdrafts, which included personal expenses, and to make loan payments.
CHARITY could face up to 30 years’ imprisonment, a fine of not more than $1 million, or twice the gross gain to him or the gross loss of any victims, 5 years of supervised release, and a special assessment of $100.
Judge Lance M. Africk set CHARITY’s sentencing hearing for October 23, 2019 at 2 pm.
This case is being investigated by the Federal Bureau of Investigation; the Federal Deposit Insurance Corporation, Office of Inspector General; and the Board of Governors of the Federal Reserve System, Consumer Financial Protection Bureau, Office of Inspector General. Assistant U.S. Attorneys Sharan E. Lieberman, Matthew R. Payne, Nicholas D. Moses, and J. Ryan McLaren are in charge of the prosecution.
New Mexico Woman Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a New Mexico woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Holly Swallow, age 40, was indicted on June 11, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 29, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in federal prison and/or a $10,000,000 fine, up to a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning a time unknown, but no later than January 1, 2016, and continuing to June 11, 2019, Swallow knowingly and intentionally combined, conspired, confederated, and agreed with persons to knowingly and intentionally distribute and possess with intent to distribute 500 grams or more of methamphetamine.
The charge is merely an accusation and Swallow is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Swallow was released on bond pending trial. A trial date has not been set.
New Haven Man Admits Illegal Possession of Loaded HandgunRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that MAHDI HENDERSON, 25, of New Haven, pleaded guilty today in Hartford federal court to one count of possession of a firearm by a convicted felon.
According to court documents and statements made in court, on November 22, 2017, as part of an unrelated investigation, members of the New Haven and Hamden police departments executed a search warrant at a New Haven residence and encountered Henderson and three other individuals inside the residence. During the search, law enforcement discovered a loaded .22 caliber Smith & Wesson handgun under the couch where Henderson had been sitting. Subsequent forensic analysis of the handgun revealed Henderson’s DNA on the trigger of the gun.
Henderson’s criminal history includes felony convictions for assault in the first degree, possession of a pistol without a permit, and burglary in the second degree.
It is a violation of federal law for a person previously convicted of a felony offense to possess a firearm or ammunition that has moved in interstate or foreign commerce.
Henderson is scheduled to be sentenced by U.S. District Judge Vanessa L. Bryant November 7, 2019, at which time he faces a maximum term of imprisonment of 10 years.
Henderson has been in state custody on unrelated charges since October 3, 2018.
This matter is being investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, New Haven Police Department and Hamden Police Department, with the assistance of the Connecticut Forensic Science Laboratory. The case is being prosecuted by Assistant U.S. Attorney Nathaniel J. Gentile.
Multi-Agency Strike Force Operation Nets Almost 30 Arrests, Seizure of Weapons, Drugs, CashRead the Press Release
TALLAHASSEE, FLORIDA – A second round of concentrated and coordinated federal, state, and local law enforcement activity has produced 29 arrests of wanted suspects and the seizure of eight weapons, significant quantities of drugs, more than $7,500 in cash, and two stolen vehicles, United States Attorney Lawrence Keefe and Sheriff Walt McNeil announced today. The arrests and seizures were the result of ongoing work by a multi-agency strike force led by United States Marshals and the Leon County Sheriff’s Office under the ALLinLEON initiative.
"When we launched this operation last month, we knew it would not take long for our efforts to bear fruit. These most recent arrests are the result, and we know they will, in turn, lead to even bigger outcomes in the future," said Keefe, who is the U.S. Attorney for the Northern District of Florida. "The hard work of so many dedicated law enforcement professionals have made the streets of Leon County safer now than they were a month ago."
Agencies participating in the latest round of arrests include the U.S. Marshals Florida/Caribbean Regional Fugitive Task Force, Leon County Sheriff’s Office – including the vice, SPIDER, K-9, aviation, and traffic units – Florida Department of Law Enforcement, State Attorney’s Office, and U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The strike force launched with a large and visible operation in June, and has continued with lower profile activities leading up to last week’s coordinated operation.
"It’s multi-agency operations like this one that are driving the enforcement portion of ALLinLEON. Working together, with our law enforcement partners, is the only way we can rid our community of those who don’t want to contribute in a positive way," Sheriff McNeil said.
Results of last week’s joint operation include 29 total arrests; 8 firearms seized, including 3 listed as stolen weapons; the seizure of 136.5 grams of cannabis, 28.5 grams of cocaine powder, 38 grams of cocaine rock, 7 grams of meth, 499 grams of synthetic drugs, and $7,551.86 in currency; and the recovery of two stolen vehicles.
Among the individuals arrested in the operation are:
- Brandon Wolf, who was wanted by the State Attorney’s Office on multiple counts of aggravated possession of child pornography and fled to Alabama before being arrested by U.S. Marshals;
- Casey Goodson, who was wanted for multiple burglaries, grand theft, stolen property, and narcotics, and is now facing additional charges of aggravated assault on two law enforcement officers, as well as fleeing/eluding and grand theft;
- Nicholas Cofer, who was wanted by the Wakulla County Sheriff’s Office for sexual assault on an incapacitate person;
- Kewon Bruce and Quinterry Hale, who were arrested when a warrant was served and officers discovered five firearms, cash, and several types of drugs.
The joint federal, state, and local strike force is a concerted effort to crack down on violent crime under the Sheriff’s ALLinLEON umbrella. That initiative has also engaged community volunteers to regularly take at-risk youth to places of worship, activated Neighborhood Crime Watch programs, and conducted other activities to target neighborhoods that are perennial hotspots for violence. The effort also aims to help connect individuals who are reentering the community from incarceration with education, job skills, and substance abuse treatment.
All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html
Mission Man Sentenced on Meth and Firearm ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man convicted of Conspiracy to Distribute a Controlled Substance and Possession of a Firearm by a Prohibited Person, was sentenced on July 29, 2019, by U.S. District Judge Roberto A. Lange.
Walter Willard Wright, age 37, was sentenced to 160 months in federal prison, followed by 5 years of supervised release for the conspiracy conviction. He was sentenced to 120 months in federal prison, followed by 3 years of supervised release for the firearm conviction. The sentences will be served concurrently. Also, a special assessment to the Federal Crime Victims Fund in the amount of $200 was ordered.
Wright was indicted by a federal grand jury on August 13, 2018. He pled guilty on May 2, 2019.
The conviction stemmed from a conspiracy that occurred between October 1, 2016, and January 31, 2017, in which Wright and Co-Defendant Micole Menard, knowingly and intentionally conspired with others to distribute and possess with the intent to distribute between 1.5 kilograms and 5 kilograms of methamphetamine. Further, on January 18, 2017, during the execution of a search warrant at the Wright’s home, 267 grams of methamphetamine and other drug paraphernalia was seized from the home along with four firearms. Wright, being a felon and unlawful user of and addicted to a controlled substance, did knowingly illegally possess those firearms.
Drug trafficking is an inherently violent activity. Firearms are tools of the trade for drug dealers. It is common to find drug traffickers armed with guns in order to protect their illegal drug product and cash, and enforce their illegal operations.
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 its 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 local communities to develop effective, locally-based strategies to reduce violent crime.
This case was investigated by the Northern Plains Safe Trails Drug Enforcement Task Force and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Meghan N. Dilges prosecuted the case.
Wright was immediately turned over to the custody of the U.S. Marshals Service.
Mission Man Indicted on Meth Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission man has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Louie ThunderHawk, age 32, was indicted on July 16, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 26, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in prison and/or a $5,000,000 fine, at least 4 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 1, 2019, and July 16, 2019, ThunderHawk did knowingly and intentionally, combine, conspire, confederate, and agree with persons known and unknown, to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more methamphetamine.
The charge is merely an accusation and ThunderHawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
ThunderHawk was released pending trial. A trial date has not been set.
Mission Man Indicted on Assault ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Mission, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon and Assault Resulting in Serious Bodily Injury.
Lorenzo Brave Hawk, Sr., age 34, was indicted on June 11, 2019. He appeared before U.S. Magistrate Judge Mark A. Moreno on July 26, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in federal prison and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on November 9, 2018, Brave Hawk assaulted a woman with a baseball bat, and the assault resulted in serious bodily injury.
The charges are merely an accusation and Brave Hawk is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Michael J. Elmore is prosecuting the case.
Brave Hawk was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Micronesian Government Official Sentenced to Prison for Role in Money Laundering Scheme Involving FCPA ViolationsRead the Press Release
A Micronesian government official was sentenced to 18 months in prison followed by three years of supervised release yesterday for his participation in a money laundering scheme involving bribes made to corruptly secure engineering and project management contracts from the government of the Federated States of Micronesia (FSM), in violation of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division and Special Agent in Charge Eli S. Miranda of the FBI’s Honolulu Field Office.
Master Halbert, 44, a Micronesian citizen, was sentenced in Honolulu by U.S. District Judge Susan O. Mollway of the District of Hawaii. Halbert pleaded guilty on April 2 to a one-count information filed in the District of Hawaii charging him with conspiracy to commit money laundering.
According to admissions made as part of his plea agreement, Halbert was a government official in the FSM Department of Transportation, Communications and Infrastructure who administered FSM’s aviation programs, including the management of its airports. Halbert admitted that between 2006 and 2016, a Hawaii-based engineering and consulting company owned by Frank James Lyon paid bribes to FSM officials, including Halbert, to obtain and retain contracts with the FSM government valued at nearly $8 million, in violation of the FCPA. Lyon and Halbert agreed that these bribe payments would be transported from the United States to the FSM.
Lyon, 53, of Honolulu, Hawaii, pleaded guilty on Jan. 22 to a one-count information filed in the District of Hawaii charging him with conspiracy to violate the anti-bribery provisions of the FCPA and to commit federal program fraud. Lyon was sentenced to serve 30 months in prison on May 13.
The FBI investigated this case. Trial Attorney Katherine Raut of the Criminal Division’s Fraud Section is prosecuting the case. The Criminal Division’s Office of International Affairs and the U.S. Department of Transportation’s Office of Inspector General provided significant assistance.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the Department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Michigan man sentenced to 10 years for drug distributionRead the Press Release
ELKINS, WEST VIRGINIA – Michael Christopher Morgan, of Detroit, Michigan, was sentenced to 120 months incarceration for his role in a heroin, cocaine, and methamphetamine distribution operation in Randolph County, United States Attorney Bill Powell announced.
Morgan, also known as “Deon” and “D,” age 37, pled guilty to one count of “Conspiracy to Distribute Heroin, Cocaine Base, and Methamphetamine” in April 2019. Morgan admitted to working with others to distribute heroin, “crack” cocaine, and methamphetamine in Randolph County from March 2016 to March 2017.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crime Task Force investigated.
The investigation was funded by the federal Organized Crime Drug Enforcement Task Force Program (OCDETF). The OCDETF program supplies critical federal funding and coordination that allows federal and state agencies to work together to successfully identify, investigate, and prosecute major interstate and international drug trafficking organizations and other criminal enterprises.
U.S. District Judge John Preston Bailey presided.
Mexican National Sentenced to 64 Months in Prison for Trafficking FentanylRead the Press Release
NEWARK, N.J. – A Mexican national was sentenced today to 64 months in prison for his role in conspiring to traffic approximately 300 grams of fentanyl into New Jersey, U.S. Attorney Craig Carpenito announced.
Angel Santo Jerez Matos, 61, a/k/a “El Colonel,” previously pleaded guilty before U.S. District Judge Kevin McNulty to an information charging him with conspiracy to possess with intent to distribute more than 40 grams of fentanyl. Judge McNulty imposed the sentence today in Newark federal court.
According to the documents filed in this case and statements made in court:
Matos was a supplier of fentanyl, heroin, and cocaine to a drug trafficking organization operating in and around New Jersey.
Matos and a member of a New Jersey drug trafficking organization were heard, on intercepted communications, discussing the pricing of “cars,” meaning kilograms of narcotics to be shipped from Mexico into the United States through California. The drugs would then be shipped to New Jersey. Additional communications among members of the New Jersey drug trafficking organization revealed that 300 grams of fentanyl that had originated with Matos in Mexico made its way to users in Newark in May 2017.
In addition to the prison term, Judge McNulty sentenced Matos to four years of supervised release.
U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Susan A. Gibson in Newark, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney Ari B. Fontecchio of the U.S. Attorney’s Office Economic Crimes Unit.
This case is being conducted under the auspices of the Organized Crime and Drug Enforcement Task Force. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Methamphetamine Dealer Convicted for Drug Conspiracy and Firearms ViolationsRead the Press Release
Following a two-day trial in U.S. District Court, a jury convicted a Tulsa man of methamphetamine distribution and firearms violations, announced U.S. Attorney Trent Shores.
The jury found Veng Xiong, 32, guilty on Tuesday of conspiring to possess with intent to distribute and to distributing 500 grams or more of methamphetamine, possession of a rifle and a short-barreled shotgun in furtherance of a drug trafficking crime, and being a felon in possession of firearms.
“The jury has spoken, and Veng Xiong is guilty as charged. Veng, a felon with a history of drug dealing, was convicted of crimes associated with trafficking methamphetamine and firearms. I hope this federal conviction will get the message through to him that Oklahoma is not open for his business,” said U.S. Attorney Shores. “Sadly, meth continues to afflict far too many of our neighborhoods in Northern Oklahoma, due in no small part to dealers like Xiong. This just result is a direct reflection of excellent work of a multi-agency investigative team and two top-notch federal prosecutors, Ryan Roberts and Chris Nassar.”
During a methamphetamine trafficking investigation, Osage County Sheriff’s Deputies covertly set up a drug deal with an individual who agreed to sell thirty-three pounds of methamphetamine for $500,000.
The United States presented evidence that showed the individual entered into a conspiracy with Veng Xiong, who had been referred to him by associates as a known drug dealer. Upon their initial meeting, Xiong showed the co-conspirator a large amount of methamphetamine and four firearms. Xiong then provided the co-conspirator with two of the firearms to carry during the drug deal.
On April 9, 2018, the parties met at a predesignated location in rural Osage County in order to exchange the methamphetamine for cash. Xiong, along with three co-conspirators, arrived in two separate vehicles. At that time, the Osage County and Osage Nation Joint Tactical Response Team conducted a takedown and arrested the four suspects, including Xiong. Upon search of the vehicles, deputies found multiple firearms, including a Glock .40 caliber semi-automatic pistol, a Taurus .38 caliber special revolver, a Winchester 12 gauge shotgun with a sawed-off barrel, and a WASR-10, which is an AK-47 style 7.62x39mm semi-automatic rifle. Both the rifle and the shotgun were found in Xiong’s vehicle. Deputies discovered the handguns and more than five pounds of methamphetamine in the other car.
Xiong was also convicted on two previous occasions in Tulsa County District Court for trafficking in illegal drugs as well as convictions for possessing a firearm while in commission of a felony and for driving under the influence of alcohol.
The Osage County Sheriff’s Office; Osage Nation Tribal Police; FBI; Pawhuska Police Department; Bureau of Alcohol, Tobacco, Firearms and Explosives; and Oklahoma Bureau of Narcotics investigated the case. Assistant U.S. Attorneys Christopher J. Nassar and Ryan M. Roberts prosecuted the case.
Mentor podiatrist sentenced to nearly three years in prison for fraudulently billing Medicare and Medicaid nearly $1.2 millionRead the Press Release
A podiatrist with offices in Mentor was sentenced to nearly three years in prison for fraudulently billing Medicare and Medicaid nearly $1.2 million.
Robert J. Rosenstein, 65, of Highland Heights, was sentenced to 33 months in prison and ordered to pay approximately $453,615 in restitution. He previously pleaded guilty to one count of health care fraud.
According to court documents:
Rosenstein was the president and sole shareholder of Affiliated Podiatrists, Inc., located at 7230 Mentor Avenue, Suite 311, in Mentor, which was formed in 1984.
Rosenstein was convicted of conspiracy to commit bank fraud in 2013. He was suspended from the Medicare program and not allowed to bill Medicare for three years as a result of the conviction.
In 2014, Rosenstein closed Affiliated Podiatrists and caused articles of incorporation to be filed with the Ohio Secretary of State for Community Foot and Ankle of Mentor (CFAM), located at the same address. Rosenstein controlled daily operation of CFAM and was the de facto owner of the practice. A month later, Rosenstein caused CFAM to file an enrollment application with Medicare. The application was signed by someone else, not Rosenstein, and did not list Rosenstein as having ownership or a controlling interest in the company.
In 2016, he was barred from participation in the Medicaid program.
Rosenstein knowingly and willingly defrauded Medicare and Medicaid between July 14, 2014 and May 9, 2018. He did this by performing medical services at CFAM for Medicare and Medicaid recipients and billing under another provider’s name even though he knew he was excluded from participation in the programs.
Medicare was fraudulently billed approximately $968,938 as a result of Rosenstein’s claims while Medicaid was fraudulently billed approximately $219,330.
This case was prosecuted by Assistant U.S. Attorney Megan R. Miller following an investigation by the Federal Bureau of Investigation, Health and Human Services – Office of Inspector General and the Ohio Attorney General’s Medicare Fraud Control Unit.
Medical business owner sentenced to more than 10 years in federal prison for medicare fraudRead the Press Release
AUGUSTA, GA: The owner of a Thomson, Ga., medical equipment company was sentenced to more than 10 years in federal prison Tuesday, July 30, for a wide-ranging Medicare fraud scheme.
Detra Wiley Pate, owner and CEO of Southern Respiratory LLC, of Thomson, Ga., was sentenced by U.S. District Court Chief Judge J. Randall Hall to 121 months in federal prison for multiple counts of health care fraud, conspiracy to commit health care fraud and aggravated identity theft, said Bobby L. Christine, U.S. Attorney for the Southern District of Georgia. She also was ordered to pay $950,000 in restitution, and must serve three years of supervised release after completion of her sentence. There is no parole in the federal system.
“Detra Wiley Pate had every opportunity to operate a successful, legitimate business serving the needs of the elderly and vulnerable in her community,” said U.S. Attorney Christine. “Instead, she got greedy and charged Medicare for expensive equipment patients neither needed nor received, using prescriptions doctors had not written. As an ironic result, she’ll grow old in prison while reflecting on her fraud.”
According to the information presented in court documents and testimony, from 2014-2016 Pate submitted thousands of false claims, fabricated patient files, and falsified prescriptions from doctors for items such as heavy-duty wheelchairs while providing much cheaper standard wheelchairs to patients – and pocketing the substantial difference in cost. Pate used the money she stole from Medicare through this fraud to pay for such things as jewelry, including a 1.5 carat diamond and a Rolex watch.
“The FBI and our federal law enforcement partners are determined to prosecute anyone who chooses to profit personally at the expense of those who count on federal healthcare programs for their deserved benefit and the taxpayers of this country,” said Chris Hacker, Special Agent in Charge of FBI Atlanta. “This sentencing is an example of that determination and our commitment to protect our citizens and uphold the Constitution.”
“Fraud schemes such as these divert taxpayer funds from vital federal healthcare programs to fraudsters – such as Detra Wiley Pate – who seek personal gain,” said Special Agent in Charge Derrick L. Jackson of the Office of Inspector General for the U.S. Department of Health and Human Services. “Our agents, working closely with our law enforcement partners, will continue to clamp down on such scams.”
The case was investigated by the FBI and by the U.S. Department of Health and Human Services Office of Inspector General.
Assistant U.S. Attorneys Patricia Rhodes and Thomas Clarkson led the prosecution for the United States with assistance from Litigation Technologist Dean Athanasopoulos.
Massachusetts Man Sentenced to More than Seven Years for Possession with Intent to Distribute Heroin, Fentanyl and CocaineRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Yarlin Garcia, 26, of Lowell, Massachusetts, was sentenced yesterday in U.S. District Court by Judge D. Brock Hornby to 87 months in prison and four years of supervised release for possession with the intent to distribute heroin, fentanyl and cocaine. Garcia pleaded guilty on October 25, 2018.
According to court records, on June 20, 2018, Garcia was arrested outside of a residence in Sanford, Maine and found to be in possession of about 650 grams of a heroin/fentanyl mixture and 560 grams of cocaine that he brought to Maine.
The case was investigated by the U.S. Drug Enforcement Administration; the Maine Drug Enforcement Agency; the Sagadahoc, York, and Cumberland County Sheriff’s Offices; and the Biddeford Police Department and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Massachusetts Man Sentenced to 14 Years for Conspiring to Distribute and Possessing with Intent to Distribute HeroinRead the Press Release
Bangor, Maine: United States Attorney Halsey B. Frank announced that Myron Crosby, Jr., a/k/a “Templer,” 56, of Springfield, Massachusetts, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 14 years in prison and five years of supervised release for conspiring to distribute and possessing with the intent to distribute a kilogram or more of heroin. Crosby was convicted on August 2, 2018, following a four-day jury trial.
The evidence at trial established that between August 2015 and January 2016, Crosby conspired to distribute more than a kilogram of heroin. He was the Massachusetts source of 60,000 to 80,000 bags of heroin acquired in Hartford, Connecticut and Springfield, Massachusetts that were brought to Maine and distributed by co-conspirators in the Newport, Maine area.
The case was investigated by the U.S. Drug Enforcement Administration, with assistance provided by the Maine and Massachusetts State Police and the Somerset County Sheriff’s Office, and prosecuted as part of the Department of Justice’s Strategy to Combat the Opioid Epidemic.
Manchester Man Pleads Guilty to Conspiracy to Distribute FentanylRead the Press Release
CONCORD - Abelino Morales-Padilla, 38, of Manchester, pleaded guilty in federal court to conspiracy to distribute fentanyl, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in October 2018, Morales-Padilla conspired with other persons to distribute more than 400 grams fentanyl. On October 16, 2018, a confidential informant informed police that Abelino Morales-Padilla would be coming from Massachusetts to New Hampshire with a large quantity of fentanyl. Police officers identified the car and stopped Morales-Padilla for traffic violations in Londonderry. Law enforcement officers later located approximately 424 grams of fentanyl inside the vehicle.
Morales-Padilla is scheduled to be sentenced on November 12, 2019.
“Those who choose to bring fentanyl or other deadly drugs into New Hampshire will be prosecuted aggressively,” said U.S. Attorney Murray. “Interstate drug traffickers endanger the health and safety of our citizens. In order to deal with this threat, we work closely with our law enforcement partners each day to identify and prosecute those who transport drugs into our state.”
“Fentanyl has destroyed communities across the country, leaving despair and anguish in its wake. Morales-Padilla looked to make a quick profit by choosing to push fentanyl onto our New Hampshire streets,” said Jason J. Molina, Acting Special Agent in Charge for U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI), Boston. “Every dealer we help remove from the streets is a victory in the battle against the opioid and fentanyl plague that has devastated so many lives in the region.”
This matter was investigated by the Department of Homeland Security Investigations, and the New Hampshire State Police. The case is being prosecuted by Assistant U.S. Attorney John Davis.
###
Madison Man Sentenced to 12 Years for Cocaine ConspiracyRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Joseph Harper, 42, Madison, Wisconsin, was sentenced yesterday by U.S. District Judge William M. Conley to 12 years in federal prison for conspiring to distribute 500 grams or more of cocaine. Harper pleaded guilty to this charge on April 19, 2019.
The investigation revealed that Gregory Smith was mailing packages containing cocaine from Houston, to Harper in Madison. Postal records from November 2017 to November 2018 showed 32 packages mailed from Smith, to addresses in Wisconsin or Iowa associated with Harper, and 48 packages were mailed from the Madison area by Harper or his associates to addresses associated with the Smith in Houston. Based on witness statements and multiple cocaine seizures in the case, agents learned that each of the packages coming from Smith contained between a half kilogram and one kilogram of cocaine.
In addition, federal agents executed search warrants on five of the packages sent to Smith from Harper or his associates, and identified over $85,000 in cash. Based on communications between Harper and Smith, along with other investigative information, agents learned that each of the 48 packages Harper mailed to Smith contained money to pay for cocaine.
In imposing the sentence, Judge Conley stated that Harper designed, implemented, and led a large-scale interstate conspiracy involving at least 16 kilograms of cocaine. Judge Conley noted that Harper actively recruited other people to join the conspiracy, many of whom ended up charged along with him in the case. Judge Conley also noted that Harper had six prior felony drug trafficking convictions, with two of those convictions involving cocaine.
Twelve individuals have been charged for participating in this cocaine distribution scheme. In addition to Smith and Harper, eight other defendants have pleaded guilty. On July 10, 2019, Judge Conley sentenced Smith to 11 years in prison for his role in the conspiracy. The other individuals who have pleaded guilty are awaiting sentencing.
The charge against Harper is the result of a joint investigation by the Drug Enforcement Administration, U.S. Postal Inspection Service, Federal Bureau of Investigation, Wisconsin Department of Justice Division of Criminal Investigation, and the Dane County Sheriff’s Office. The investigation was conducted and funded by the Organized Crime Drug Enforcement Task Force (OCDETF), a multi-agency task force that coordinates long-term narcotics trafficking investigations. The prosecution of the case is being handled by Assistant U.S. Attorney Aaron Wegner.
Local Man Guilty of Firearms Charge in Furtherance of Drug TraffickingRead the Press Release
CORPUS CHRISTI, Texas - A federal jury returned a guilty verdict against a 42-year-old Corpus Christi man for possessing a firearm in furtherance of a drug trafficking crime, announced U.S. Attorney Ryan K. Patrick.
Charles Callis Jr. pleaded guilty to possession with intent to distribute cocaine this morning. Following a day of testimony, the jury deliberated for less than 30 minutes before also convicting him of the firearms charge.
On Dec. 6, 2018, multiple federal law enforcement agencies executed an arrest warrant for Callis on unrelated charges. At that time, they also searched his residence and business - Done Right Air Conditioning - on the 3700 block of Saturn Road.
During trial, the jury heard that during the searches, agents opened a locked room and discovered it had been set up for drug trafficking. The room contained an open counter along the wall where agents found a piece of Tupperware containing cocaine, a digital scale, cutting agents, a metal press, money counting machine and a loaded Taurus 9mm handgun.
In addition, they also discovered a large safe. Inside, there was a box of small Ziploc baggies, approximately $49,000 and a cellular phone. Authorities later confirmed the substance in the bags was cocaine with a total weight of 508 grams.
The defense attempted to convince the jury Callis had lawfully purchased the handgun and it was unrelated to the cocaine. The jury did not believe his claims and convicted him.
Senior U.S. District Judge John Rainey presided over the trial and set sentencing for Oct. 16, 2019. At that time, Callis faces a minimum of five and up to 40 years in federal prison for the cocaine conviction and up to life for the firearms charge which must be served consecutively to any other prison term imposed. The charges also carry a potential $5 million maximum fine.
Callis has been and will remain in custody pending that hearing.
Immigration and Customs Enforcement’s Homeland Security Investigations and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation with the assistance of the Drug Enforcement Administration. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Little Eagle Woman Indicted for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Little Eagle, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute Methamphetamine.
Lucenda Layetta Bobtail Bear, age 38, was indicted on July 16, 2019. She appeared before U.S. Magistrate Judge William D. Gerdes on July 29, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 40 years in federal prison and/or a $5,000,000 fine, a lifetime of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning at a time unknown, but no later than March 1, 2018, and continuing to June 17, 2018, Bobtail Bear knowingly and intentionally combined, conspired, confederated, and agreed with persons to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more of methamphetamine.
The charge is merely an accusation and Bobtail Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Cameron J. Cook is prosecuting the case.
Bobtail Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lisbon man sentenced to more than 15 years in prison for having child pornography and soliciting people to rape and sexually assault childrenRead the Press Release
A Lisbon man was sentenced to more than 15 years in prison for having child pornography and soliciting people to rape and sexually assault children.
David Grunden, 34, previously pleaded guilty to one count of receipt of child pornography and one count of advertising child pornography.
Grunden solicited adults to be recorded having sex with children. Grunden posted at least 13 solicitations on adult bulletin boards between January and June 2018, including messages such as: “I love beating the life out of children. Gives me such a sexual rush. Even better when their parents are watching in horror,” according to court documents.
Grunden also received numerous images of minors engaged in sexually explicit conduct between 2014 and 2017. A search warrant was executed at Grunden’s residence on October 26, 2018. Investigators located more than 7,500 images of child pornography during the search, including images of children under the age of five years old being raped, according to court documents.
“Young children were raped to in order to produce the images this defendant downloaded and consumed,” U.S. Attorney Justin Herdman said. “Real children had their lives destroyed, and this defendant was actively soliciting people to subject more children to torture. The community is safer with this man behind bars.”
“Possessing, producing and sharing child pornography is despicable,” said FBI Special Agent in Charge Eric B. Smith. “To add in the desire to sexually torture children goes beyond comprehension. For his heinous acts, David Grunden will now spend a significant amount of time behind bars where he will no longer be a threat to kids."
This case is being prosecuted by Assistant U.S. Attorney Brian Deckert following an investigation by the FBI, the Mahoning Valley Violent Crimes Task Force and the Ohio Bureau of Criminal Investigation.
Lakeland Man Sentenced to More Than 41 Years on Child Pornography ChargesRead the Press Release
Tampa, Florida – U.S. District Judge Charlene Honeywell today sentenced Edwin Santiago (43, Lakeland) to 41 years and 8 months in federal prison for attempted production and possession of child pornography.
Santiago had pleaded guilty on April 22, 2019.
According to court documents, Santiago attempted to produce at least two sex abuse videos of an 8-year-old child. Santiago also distributed videos to individuals on the internet with whom he was discussing an interest in child exploitation. During online chats, Santiago expressed a desire to watch others sexually abuse the child and asked for volunteers to give the child sex lessons. Santiago also discussed and negotiated prices for the child’s virginity.
Santiago used internet-based platforms to distribute sex abuse material that included young children, toddlers, and sadomasochistic conduct. He also possessed over 100 images and over 100 videos of child pornography on his phone.
“The vile crimes committed by this child predator are beyond comprehension,” said Homeland Security Investigations Tampa Assistant Special Agent in Charge Micah McCombs. “We hope today’s sentencing is another step in the recovery for his victim.”
This case was investigated by the Department of Homeland Security, Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Frank Murray.
This 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.
Kickapoo Woman Pleads Guilty to Felony Murder of Grandson in Casino Parking LotRead the Press Release
OKLAHOMA CITY – ALANNA JEAN ORR, 50, of Oklahoma City, has pleaded guilty to felony murder in the second degree by child neglect in Indian Country, announced U.S. Attorney Timothy J. Downing.
According to an affidavit in support of a search warrant signed in Oklahoma County District Court on July 17, 2018, Orr was caring for her five-year-old grandson on June 21, 2018, when she went to the Kickapoo Casino in Harrah. The affidavit explained that, according to surveillance video, Orr arrived at the casino at 1:23 p.m. and left at 7:28 p.m. It was alleged that during this time, her grandson remained in the car. The high temperature in Harrah that day was allegedly ninety degrees.
Approximately fifteen minutes after she left the casino, according to the affidavit, Orr called 911 and reported her grandson had choked and was not breathing. The affidavit stated Harrah police officers met Orr at the Harrah Police Department and attempted to resuscitate the child but found that rigor mortis had already begun.
On April 17, 2019, a federal grand jury returned an indictment that charged Orr with second degree felony murder by child neglect in Indian Country. In particular, it alleged Orr, who is a member of the Kickapoo Tribe, caused the death of a child by willfully failing to provide adequate shelter and supervision while she was responsible for the child’s health, safety, and welfare. This crime is subject to federal jurisdiction because the defendant and victim are Indians and the offense took place on tribal trust land.
Today Orr pleaded guilty to the indictment. During a hearing before U.S. District Judge Scott L. Palk, she admitted she caused her grandson’s death by leaving him unattended on a hot summer afternoon in the back seat of her car with no air conditioning.
Orr faces a maximum potential penalty of life in prison and a fine of $250,000. She could also face up to five years of supervised release after any prison sentence.
This case is a result of an investigation by the Harrah Police Department, the Kickapoo Tribal Police Department, the Oklahoma District 23 Drug Task Force, the District Attorney’s Offices for Cleveland, Lincoln, and Pottawatomie Counties, and the FBI Oklahoma City Division. Assistant U.S. Attorneys Mark R. Stoneman and Mary E. Walters are prosecuting the case, with assistance from Cleveland County Assistant District Attorney Pattye High.
Reference is made to public filings for more information.
Kanawha County Woman Pleads Guilty to Meth DistributionRead the Press Release
CHARLESTON, W.Va. – Stephanie Barnett, 36, of Kanawha County, entered a guilty plea in court today to possession with intent to distribute methamphetamine, announced United States Attorney Mike Stuart. The investigation was conducted by the Drug Enforcement Administration.
“Barnett brought over six pounds of meth from Cleveland back to Charleston for distribution – SIX POUNDS,” said United States Attorney Mike Stuart. “When we shut down significant drug pipelines like this from out-of-state we protect our children and reduce the availability of these dangerous drugs in our communities.”
On February 6, 2019, Barnett’s vehicle was pulled over in Cross Lanes, West Virginia, by a Kanawha County Sheriff’s deputy. Barnett initially lied to the deputy about her name and age, and the deputy also smelled burnt marijuana inside the car. The deputy retrieved his K-9 partner, who also indicated that there were narcotics inside the car. Inside the console of the car, officers found a small baggie of methamphetamine. When the officers opened the trunk, they found a large, plastic bag that contained three large bricks of methamphetamine. Each brick weighed approximately two pounds. The methamphetamine was sent to the DEA Mid-Atlantic Lab where it tested as being over 93% pure methamphetamine. Barnett had traveled to Cleveland, Ohio, where she received over six pounds of methamphetamine. She had intended to deliver the methamphetamine to local dealers in Charleston.
Barnett faces a mandatory minimum of 10 years in prison and a maximum of life in prison. Assistant United States Attorney L. Alexander Hamner handled the prosecution. Senior United States District Judge John T. Copenhaver, Jr. will impose sentencing on October 30, 2019.
Follow us on Twitter: SDWVNews
###
Justice Department Settles Immigration-Related Discrimination Claim Against Arizona Baked Goods SupplierRead the Press Release
The Department of Justice today announced that it reached a settlement agreement with United General Bakery Inc., or Upper Crust Bakery (UCB), a baked goods supplier located in Phoenix, Arizona. The settlement resolves the Department of Justice’s investigation into whether the company discriminated against authorized workers based on their citizenship status in violation of the Immigration and Nationality Act (INA) when verifying their authorization to work.
“Employers must not request additional, unnecessary work authorization documents from employees based on their citizenship status,” said Assistant Attorney General Eric Dreiband of the Civil Rights Division. “We look forward to working with Upper Crust Bakery to ensure its compliance in the future.”
The investigation concluded that UCB discriminated against non-U.S. citizen workers by requiring them to present unnecessary and specific immigration documents to prove their work authorization at both initial hire and reverification, even when the workers had other valid, legally acceptable documents proving that they were authorized to work in the United States. The antidiscrimination provision of the INA prohibits employers from making unnecessary requests for documentation to prove work authorization based on a worker’s citizenship status or national origin.
Under the settlement, UCB will pay $45,000 in civil penalties to the United States, train its human resources personnel on the requirements of the INA’s antidiscrimination provision, and be subject to compliance monitoring by the Department of Justice over a two-year period.
The Civil Rights Division’s Immigrant and Employee Rights Section (IER) is responsible for enforcing the anti-discrimination provision of the INA. Among other things, the statute prohibits discrimination against work-authorized individuals based on citizenship status and national origin in hiring, firing, or recruitment or referral for a fee; unfair documentary practices; retaliation; and intimidation.
Employers can find information on how to avoid unlawful discrimination based on citizenship status or national origin here. Workers can find information about their rights under the antidiscrimination provision of the INA here. For more information about protections against employment discrimination under the INA, call IER’s worker hotline at 1-800-255-7688 (1-800-237-2515, TTY for hearing impaired); call IER’s employer hotline at 1-800-255-8155 (1-800-237-2515, TTY for hearing impaired); sign up for a free webinar; email [email protected]; or visit IER’s English and Spanish websites. Subscribe to GovDelivery to receive updates from IER.
Applicants or employees who believe they were subjected to discrimination based on their citizenship, immigration status, or national origin in hiring, firing, or recruitment or referral for a fee; discrimination in the employment eligibility verification process (Form I-9 and E-Verify) based on their citizenship, immigration status, or national origin; or retaliation can file a charge or contact IER’s worker hotline for assistance.
Justice Department Resolves Claims that California Loan Modification Service Providers Discriminated Against Hispanic Homeowners Based on Their National OriginRead the Press Release
The Department of Justice today announced a series of settlements to resolve allegations that several California-based mortgage loan modification service providers engaged in national origin discrimination in violation of the federal Fair Housing Act when they targeted Hispanic homeowners for predatory mortgage loan modification services and interfered with those individuals’ ability to keep their homes.
The Settlement Agreements resolve a lawsuit that the Department filed in the U.S. District Court for the Northern District of California. Among other relief, the agreements establish a restitution fund of more than $148,000 to reimburse the discrimination victims for fees collected by defendants as part of the predatory scheme. The lawsuit arose from complaints filed with the U.S. Department of Housing and Urban Development (HUD) by two of the defendants’ former clients, Eberardo Perez and Roberto Hernandez, who intervened in the lawsuit along with their attorney, Housing & Economic Rights Advocates (HERA), and members of Hernandez’s family.
“The defendants in this case violated federal law and harmed working families when they exploited Hispanic homeowners and targeted them with predatory mortgage services,” said Assistant Attorney General Eric Dreiband of the Department of Justice’s Civil Rights Division. “These settlements reflect the Department’s unwavering commitment to stop such schemes and to ensure that all homeowners can access mortgage services free from discrimination.”
“Hispanic families struggling to stay in the homes they worked hard to purchase need real help, not phony loan services that make a bad situation worse,” said Anna María Farías, HUD Assistant Secretary for Fair Housing and Equal Opportunity. “HUD will continue working with the Justice Department to take action when individuals and companies take advantage of homeowners because of where they come from or because they speak Spanish or other languages.”
The Department of Justice alleged in its Amended Complaint that in 2009 and 2010 three companies based in Modesto, California – The Home Loan Auditors LLC (THLA), Century Law Center LLC (CLC), and SOE Assistance Center Inc. (SOE) – along with the principals of these entities and a law firm, convinced as many as 400 Hispanic homeowners to pay approximately $5,000 for unnecessary loan audits. The defendants told homeowners that audits were essential for loan modifications, but in fact the audits had no impact on the loan modification process and provided no financial benefit. The Department of Justice also alleged that the defendants, as part of their advertised loan modification service, encouraged their clients to stop making mortgage payments and instructed them to cease contact with their lenders. This advice resulted in many homeowners defaulting on their mortgage payments and ultimately losing their homes.
The three companies named in the lawsuit – THLA, CLC, and SOE – ceased operations several years ago. As of today, the Justice Department resolved its lawsuit against individuals who owned and operated those companies: Raul Luna, Omar Alcaraz, Hortencia Leon, Oralia Gutierrez, Elena Ramirez, and Araceli Castro. It also resolved its lawsuit against David Spieker, an attorney who worked for the companies on aspects of their scheme. As part of their settlements, the defendants agreed to refrain from engaging in discriminatory conduct. Collectively, the defendants also agreed to contribute more than $148,000 into a restitution fund that will be used to reimburse former clients for fees paid to THLA, CLC, or SOE, with five defendants agreeing to an additional $405,699 in suspended judgments, which would be collected only if they have misrepresented their current financial situations.
In addition to the restitution fund established in connection with the United States’ claims, HERA, Perez, and Hernandez have reached separate settlement agreements with defendants, which include additional compensation totaling $91,650.
Fighting illegal housing discrimination is a top priority of the Justice Department. The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they may have been victims of housing discrimination can call the Justice Department at 1-800-896-7743, email the Justice Department at [email protected] or contact HUD at 1-800-669-9777.
Jury Verdict: Lawrence Developer Violated Asbestos Disposal LawsRead the Press Release
TOPEKA, KAN. – A jury today found a Lawrence developer guilty on charges of disposing of asbestos in violation of the Clean Air Act.
Thomas S. Fritzel, 53, Lawrence, Kan., was convicted on the following counts:
- Failing to notify authorities before removing asbestos (count two).
- Failing to keep asbestos wet during demolition to prevent air contamination (count three).
- Failing to dispose of asbestos in leak-tight containers (count four).
During trial, the government presented evidence that Fritzel violated federal laws for handling asbestos during demolition and renovations at the Alvamar Country Club in Lawrence. The government presented evidence to show that Fritzel knew that the roof of the country club contained 75 percent chrysotile asbestos. The previous owners, who sold the club to Fritzel in January 2016, had decided not to replace the roof because of the cost of abating the asbestos.
On October 19, 2016, the Kansas Department of Health and Environment told Fritzel to get a licensed asbestos contractor to remove asbestos from the site and dispose of it properly. On Oct. 25, 2016, KDHE inspected the site and determined asbestos debris had been removed and hauled to Hamm Landfill in Perry, Kan., which is not approved for asbestos disposal.
Sentencing will be set for a later date. He faces a penalty of up to two years in federal prison and a fine up to $250,000 on count two and up to five years and a fine up to $250,000 on counts three and four. First Assistant U.S. Attorney Duston Slinkard commended the Environmental Protection Agency – Criminal Investigation Division and Assistant U.S. Attorney Richard Hathaway for their work on the case.
Iowa Woman Indicted on Meth Trafficking ChargesRead the Press Release
United States Attorney Ron Parsons announced that a Sioux City, Iowa, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Veronica Arciniega, age 42, was indicted on July 16, 2019. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 26, 2019, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 5 years, up to 40 years in prison and/or a $5,000,000 fine, at least 4 years supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between February 1, 2019, and July 16, 2019, Arciniega did knowingly and intentionally, combine, conspire, confederate, and agree with persons known and unknown, to knowingly and intentionally distribute and possess with intent to distribute 50 grams or more methamphetamine.
The charge is merely an accusation and Arciniega is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Arciniega was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Humboldt County Resident Sentenced to 36 Months in Prison for Being A Felon in Possession of an Assault RifleRead the Press Release
SAN FRANCISCO – Shayne Gregory Maupin was sentenced today to 36 months in prison for being a felon in possession of a firearm, announced United States Attorney David L. Anderson and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
Maupin, 27, of Humboldt County, Calif., pleaded guilty on May 14, 2019, to one count of being a felon in possession of a firearm, in violation of 18 U.S.C. § 922(g)(1). According to his plea agreement, on January 2, 2019, Maupin possessed a Romarm WASR-10 assault rifle, with a 30-round magazine, loaded with 7.62 x 39 mm ammunition, inserted into it. Maupin further admitted he possessed additional equipment including a 10-round magazine loaded with 7.62 x 39 mm ammunition, additional rounds of ammunition, and a camouflage body vest. Maupin admitted that at the time he possessed these items, he already had been convicted of a felony punishable by a term of imprisonment exceeding one year and therefore he was not eligible to possess a firearm.
On February 7, 2019, a federal grand jury indicted Maupin charging him with one count of being a felon in possession of a firearm and one count of being a felon in possession of ammunition, both in violation 18 U.S.C. § 922(g)(1). Pursuant to his plea agreement, Maupin pleaded guilty to the firearm charge. The ammunition charge was dismissed at sentencing.
The sentence was handed down by the Honorable Richard Seeborg, U.S. District Judge. Judge Seeborg also sentenced the defendant to a three-year period of supervised release. The defendant will begin serving the sentence immediately.
Assistant U.S. Attorney Lina Peng is prosecuting the case with the assistance of Margoth Turcios. The prosecution is the result of an investigation by the FBI with assistance from the Arcata Police Department.
Houston Man Sentenced in Methamphetamine-Trafficking ConspiracyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that JAMES HATCH, age 50, of Houston, Texas, was sentenced today after pleading guilty to one count of conspiring to traffic 500 grams of a mixture containing methamphetamine and one count of possessing a firearm in furtherance of drug trafficking. United States District Judge Susie Morgan sentenced HATCH to a term of imprisonment of 160 months, followed by five years of supervised release.
HATCH is one of eleven defendants charged in a 23-count federal indictment. Specifically, the indictment alleges that HATCH conspired to sell large quantities of methamphetamine with codefendants Stefen Daigle, Jeffrey Clines, Peter Giandalone, Paul Melancon, Julien Polk, James Hatch, Angel Renee Vidaure, Eulalio Torres-Cadenas, Delio Alfredo Lopez-Lopez, Lindsey Lopez, and Jacob Higginbotham. The indictment also alleges a number of individual acts of distributing and possessing with intent to distribute methamphetamine, as well as firearm offenses for codefendants HATCH, Vidaure, and Lopez-Lopez. Law enforcement developed evidence against this group of defendants using controlled purchases of methamphetamine, traffic stops and seizures, consensually recorded text messages and phone calls, search warrants, cooperator information, and self-incriminating statements.
U.S. Attorney Strasser praised the work of the United States Postal Inspection Service, Louisiana State Police, Jefferson Parish Sheriff’s Office, Texas Department of Public Safety, Texas Highway Patrol, Montgomery County (Texas) Sheriff’s Office, Immigration and Customs Enforcement, AMTRAK Police, and the Orleans Parish District Attorney’s Office. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
* * *
Grayson County Woman Sentenced for Health Care FraudRead the Press Release
Abingdon, VIRGINIA – Crystal Smith, a Troutdale, Va. woman who worked as a Consumer Directed Services Facilitator (CDSF) to assist elderly and disabled Virginia Medicaid recipients, was sentenced today to four months in prison and ordered to pay $113,877 in restitution. United States Attorney Thomas T. Cullen and Virginia Attorney General Mark R. Herring made the announcement today following Smith’s sentencing hearing in U.S. District Court in Abingdon.
“Medicaid providers, including those that provide home-based, education, and training services to disabled populations, are obligated to follow the letter of the law in billing for their work,” U.S. Attorney Cullen stated today. “We will continue to prosecute those who engage in fraudulent billing schemes and hold them accountable.”
“Anyone attempting to steal from Virginia’s Medicaid program needs to know we are watching, and we will hold you accountable,” said Attorney General Herring. “We cannot abide fraud that weakens this important program for those who truly need assistance.”
Smith, 51, pleaded in March 2019 to one count of health care fraud. According to court documents, Smith entered into a provider agreement with the Department of Medical Assistance Services (DMAS) and received payments from 2011 to 2018. The payments were for services provided to Medicaid recipients through Virginia Medicaid’s Commonwealth Coordinated Care Plus Waiver Program, formerly known as the Elderly or Disabled with Consumer Direction Waiver Program.
However, a review of Smith’s case files and Medicaid Billing reels, show Smith billed DMAS for 1,732 reassessments, routine visits, and trainings that did not have the required supporting documentation or did not occur at all. Smith admitted to making copies of recipient’s signatures on DMAS forms, which she then re-used to create subsequent forms.
From August 2011 to March 2018, Smith fraudulently billed DMAS $121,435 and was paid $113,877.
The investigation of the case was conducted by the Virginia Attorney General’s Office Medicaid Fraud Control Unit. Special Assistant United States Attorney and Assistant Attorney General Janine M. Myatt is prosecuting the case for the United States.
Former Union Official Admits Receiving Unlawful Cash Payments from Chicago BusinessRead the Press Release
CHICAGO — A former high-ranking official in a labor union admitted in federal court today that he accepted $325,000 in unlawful cash payments from a Chicago business and failed to report the payments on his federal tax returns.
JOHN T. COLI SR., 59, of Chicago, pleaded guilty to one count of receiving a prohibited payment as a union officer, and one count of making a false income tax return. The charges are punishable by a combined maximum sentence of eight years in federal prison. U.S. District Chief Judge Rebecca R. Pallmeyer did not immediately schedule a sentencing date. A status hearing was set for Oct. 31, 2019, at 9:30 a.m.
The guilty plea 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; Irene Lindow, Special Agent-in-Charge of the U.S. Department of Labor’s Office of Inspector General in Chicago; and Tara Sullivan, Acting Special Agent-in-Charge of the Chicago office of the Internal Revenue Service Criminal Investigation Division. The government is represented by Assistant U.S. Attorneys Amarjeet S. Bhachu and Abigail Peluso.
Coli served from 2000 to 2017 as the Secretary-Treasurer of Teamsters Local Union 727. Coli admitted in a plea agreement that from 2014 to 2017, he received quarterly payments of $25,000 from a Chicago business that employed workers represented by Local 727. The money was paid to Coli in cash in order to conceal Coli’s receipt of the payments, the plea agreement states. Coli acknowledged in the plea agreement that had law enforcement not intervened, he expected to receive four more quarterly payments from the company and then retire from the union.
The tax count pertains to Coli’s knowing and willful failure to report the secret cash payments as income for the calendar years 2014 through 2016. This conduct resulted in a federal tax loss of approximately $105,000, and a State of Illinois tax loss of approximately $12,500. In addition, Coli acknowledged in the plea agreement that he received income and other benefits from representatives of businesses that dealt with Local 727 that were not properly disclosed to the U.S. Department of Labor. According to the plea agreement, the benefits included meals in Las Vegas and other cities, free box seat tickets to National Football League and Major League Baseball games, use of a yacht in the U.S. and Italy, and periodic cash payments.
Former Director of East St. Louis Library SentencedRead the Press Release
The former director of the East St. Louis public library has been sentenced for embezzling
thousands of dollars from the library for years. Marlon P. Bush, 48, of East St. Louis, Illinois,
was ordered to serve 12 months in prison, followed by six months of home detention and two years of
supervised release. From 2014 through 2016, while serving as the library’s director, Bush took
excess salary for himself, stole from the salary of another library employee, and charged numerous
personal purchases to the library’s credit cards. Bush pleaded guilty earlier this year to a
federal indictment charging him with wire fraud and embezzlement from the library, a unit of city
government that receives federal funds.Steven D. Weinhoeft, U.S. Attorney for the Southern District of Illinois, said: “Investigating and
prosecuting public corruption remains among the highest priorities for the Department of Justice.
Citizens need to be able to trust the people who work in all levels of government. Serious harm is
done when public employees abuse that trust and put their own interests above the people they
serve. For that reason, we will continue to vigorously prosecute all forms of public corruption in
this district.”As part of his sentence, Bush was ordered to pay $48,102.86 in restitution to the library.
The investigation was conducted by the Southern Illinois Public Corruption Task Force which
consists of agents with the FBI, IRS Criminal Investigation, and the Illinois State Police. The
prosecution was handled by Assistant U.S. Attorney Norman R. Smith. Citizens are encouraged to
report suspicions of public corruption to the Southern Illinois Public Corruption
Task Force Tip Line at (618) 589-7373.Felon Pleads Guilty to Firearm and Counterfeit Currency ChargesRead the Press Release
NORFOLK, Va. – A Portsmouth man pleaded guilty today to being a felon in possession of a firearm and uttering counterfeit money.
According to information before the court, Amaud Brown, aka “Moe Gunz”, 24, is a convicted felon and self-admitted member of the Gangster Disciples who obtained, or tried to obtain, at least seven firearms with the help of several straw-purchasers. Brown actually called one of the licensed gun stores he frequented to inquire about purchasing more guns while police officers were at that gun store investigating his previous straw-purchases.
Police executed a search warrant on Brown’s residence and recovered two loaded handguns, shotgun parts, dozens of rounds of ammunition, marijuana, cut and uncut counterfeit money printed on resume paper, and materials used to manufacture counterfeit money. Investigators later discovered that Brown had used fake $100 bills to rip off at least four victims, including a Navy serviceman, who had exchanged their electronic devices to him in return for what they believed was real cash.
Brown faces a maximum of 30 years in prison when sentenced on October 18. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
This case is part of Project Safe Neighborhoods (PSN), which is the centerpiece of the Department of Justice’s violent crime reduction efforts. PSN is an evidence-based program proven to be effective at reducing violent crime. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Ashan M. Benedict, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, Matthew S. Miller, Special Agent in Charge of the U.S. Secret Service’s Washington Field Office, and Angela Greene, Chief of Portsmouth Police, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney William B. Jackson is 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. 2:19-cr-85.
Ex-Miles City high school athletic trainer sentenced to 12 years for coercion in molestation of boysRead the Press Release
BILLINGS—Former Miles City high school athletic trainer James E. “Doc” Jensen, Jr., who admitted to sexually abusing numerous boys under the pretense of a program he claimed would improve their physical performance, was sentenced on Tuesday to 12 years in prison and to three years of supervised release, U.S. Attorney Kurt Alme said.
Jensen, 79, pleaded guilty in March to coercion and enticement. There was no plea agreement.
Chief U.S. District Judge Dana Christensen of Missoula presided.
Jensen, the prosecution said in court records, was an athletic trainer at the Custer County District High School in Miles City from the 1970s to about 1998. Jensen used the Internet to develop a so-called “Program” he employed to coerce minor male student-athletes into sexual activity saying it would increase their physical performance.
“For years, James Jensen manipulated and committed horrible abuse against many boys, causing emotional and physical harm that his victims still suffer today. Our sincere hope is that this prosecution of Jensen, holding him accountable for his abuse, will help close a chapter in the lives of his many victims and allow them, their families and friends along with the Miles City community to begin to heal,” U.S. Attorney Alme said. “We recognize that coming forward to report abuse is difficult, but if you or someone you know is being physically or sexually abused, please report it,” he said.
Victim interviews confirmed that Jensen engaged in this conduct until at least 1999 and after his association with Custer County District High School. In a September 2018 interview with law enforcement, Jensen admitted the basic tenants of “The Program,” saying he got information for its administration from the Internet and had applied it to numerous minor children.
One of Jensen’s relatives told law enforcement of seeing apparent computer print-outs of “The Program” among Jensen’s possessions. Another witness told investigators about seeing Jensen online and deceptively attempting to contact minor children, particularly boys, by creating a false identity. Internet searches on Jensen’s computer were consistent with sexual interest in children.
Assistant U.S. Attorneys Zeno Baucus, Bryan Dake and Tim Tatarka prosecuted the case, which was investigated in 2018 by the FBI and the Montana Department of Justice’s Division of Criminal Investigation.
XXX
Eleven Arraigned in Wide-Ranging Cape Cod Heroin ConspiracyRead the Press Release
BOSTON – Eleven Cape Cod and Rhode Island residents were arraigned yesterday in federal court in Boston on a multi-count indictment charging them with participating in a wide-ranging heroin trafficking conspiracy.
- Edwin Otero, 29, of Hyannis, was charged with conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin and discharging a firearm in connection with a drug trafficking crime;
- Justin Joseph, 32, of Pawtucket, R.I., was charged with conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin and discharging a firearm in connection with a drug trafficking crime;
- Krymeii Fray, 23, of Hyannis, was charged with conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin;
- Tony Johnson, 35, of Hyannis, was charged with conspiracy to distribute and possession with intent to distribute 100 grams or more of heroin;
- Anthony Basilici, 35, of Pawtucket, R.I., was charged with conspiracy to distribute and possession with intent to distribute heroin and discharging a firearm in connection with a drug trafficking crime;
- Vinicius Zangrande, 35, of Centerville, was charged with conspiracy to distribute and possession with intent to distribute heroin;
- Brooke Cotell, 25, of Hyannis, was charged with conspiracy to distribute and possession with intent to distribute heroin;
- Ronny Baams, 37, of South Yarmouth, was charged with conspiracy to distribute and possession with intent to distribute heroin;
- Eric Brando, 27, of Osterville, was charged with conspiracy to distribute and possession with intent to distribute heroin;
- Joshua Johnson, 31, of Mashpee, was charged with conspiracy to distribute and possession with intent to distribute heroin; and
- Kimberly Lopes, 49, of Hyannis, was charged with conspiracy to distribute and possession with intent to distribute heroin.
According to court documents, in 2018, federal, state and local law enforcement began an investigation focusing on Edwin Otero, the alleged leader of a Cape Cod-wide drug trafficking organization. It is alleged that Otero and his co-conspirators distributed large quantities of heroin throughout Cape Cod - including Hyannis, Mashpee, Centerville, and Osterville, and Pawtucket, R.I. Interceptions from Otero’s cellphones identified 10 other members of his drug trafficking organization, such as Joseph, who is alleged to be Otero’s top lieutenant; Lopes, Otero’s mother, who distributed heroin for Otero; and Basilici and Zangrande, other key members of the Otero drug cell. In addition, interceptions identified other drug traffickers supplied by Otero, including Fray, Cotell (who is still on federal supervised release from a 2017 heroin conviction), Baams, Tony Johnson, Joshua Johnson, and Brando.
On May 8, 2019, Otero, Joseph and Basilici were allegedly involved in a shooting at Fray’s residence related to a drug debt Fray allegedly owed Otero. After the shooting, agents intercepted Otero discussing the fact that he had shot at Fray. Otero, Joseph and Basilici were also allegedly speaking in code about finding and hiding guns used in the shooting.
Each of the 11 defendants were initially charged by criminal complaint on May 20, 2019. As a result of multiple searches, agents seized heroin, oxycodone, packaging materials, scales, a finger press, cash, and three firearms, including a 9 millimeter assault-type weapon, at Otero’s grandmother’s residence that fit an ammunition clip recovered from Fray’s home on the night of the May 8 shooting.
The charge of conspiracy to distribute 100 grams or more of heroin carries a mandatory minimum sentence of five years and up to 40 years in prison, a minimum of four years of supervised release and a fine of $5 million. Joseph and Tony Johnson face enhanced 10-year mandatory minimum sentences and the possibility of life in prison due to prior drug convictions for which they served more than one year in prison. The charge of conspiracy to distribute heroin carries a sentence of no greater than 20 years in prison, at least three years of supervised release and a fine of $1 million. Cotell and Brando face an enhanced maximum penalty of 30 years in prison and at least six years of supervised release due to prior drug convictions. The charge of discharging a firearm in connection with a drug trafficking crime carries a mandatory minimum sentence of 10 years and up to life in prison, to be served consecutive to any other sentence imposed on the drug trafficking counts, at least five years of supervised release and a fine of $250,000. 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; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, New England Field Division; and Barnstable Police Chief Paul MacDonald made the announcement. Assistant U.S. Attorneys Christopher Pohl and Lauren Graber of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
El Departamento de Justicia Resuelve una Denuncia de Discriminación Relacionada con la Inmigración contra un Proveedor de Productos de Panadería en ArizonaRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy que ha llegado a un acuerdo con United General Bakery Inc., o Upper Crust Bakery (UCB), un proveedor de productos de panadería ubicado en Phoenix, Arizona. El acuerdo resuelve la investigación del Departamento de Justicia, cuya meta era determinar si la empresa había discriminado a trabajadores autorizados con base en su estatus de ciudadanía, en contra de la ley de Inmigración y Nacionalidad («INA», por sus siglas en inglés), a la hora de verificar su autorización para trabajar.
«Los empleadores no deben pedir que sus empelados entreguen documentos adicionales e innecesarias de autorización para trabajar por motivos del estatus de ciudadanía de ellos», afirma Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles. «Esperamos colaborar con Upper Crust Bakery para garantizar su cumplimiento en el futuro».
La investigación concluyó que UCB había discriminado a trabajadores que no eran ciudadanos de los EE. UU. al requerir que presentasen documentos migratorios específicos e innecesarios para demostrar su autorización para trabajar, tanto para la contratación inicial como para la reverificación, incluso cuando aquellos trabajadores disponían de otros documentos válidos y legalmente aceptables que probaban que estaban autorizados para trabajar en los Estados Unidos. La disposición antidiscriminatoria de la INA prohíbe que los empleadores realicen solicitudes innecesarias de documentos basadas en el estatus de ciudadanía o la nacionalidad de origen de un trabajador para demostrar su autorización para trabajar.
Conforme al acuerdo, UCB pagará $45,000 en sanciones civiles a los Estados Unidos, capacitará a su personal de recursos humanos en cuanto a los requisitos de la disposición antidiscriminatoria de la INA y se someterá a la supervisión del cumplimiento por el Departamento de Justicia durante un período de dos años.
La Sección de Derechos de Inmigrantes y Empleados («IER», por sus siglas en inglés), de la División de Derechos Civiles, es responsable de hacer cumplir la disposición antidiscriminatoria de la INA. Entre otras cosas, la ley prohíbe que se discrimine a individuos con autorización para trabajar por motivos de su estatus de ciudadanía y nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; las prácticas documentales injustas; las represalias o la intimidación.
Los empleadores pueden buscar más información aquí sobre cómo evitar la discriminación ilícita por motivos del estatus de ciudadanía o la nacionalidad de origen. Los trabajadores pueden buscar más información aquí sobre sus derechos en virtud de la disposición antidiscriminatoria de la INA. Para más información sobre protecciones al amparo de la INA contra la discriminación en el empleo, llame a la línea directa de la IER para trabajadores al 1-800-255-7688 (1-800-237-2515, TTY para personas con discapacidades auditivas); llame a la línea directa de la IER para empleadores al 1-800-255-8155 (1-800-237-2515, TTY para personas con discapacidades auditivas); inscríbase a un seminario en línea gratuito; mande un correo electrónico a [email protected] o visite las páginas web de la IER en inglés y español. Inscríbase a GovDelivery para recibir información actualizada de la IER.
Aquellos postulantes o empleados que creen haber sido sometidos a la discriminación por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen en los procesos de contratación, despido o reclutamiento o recomendación por comisión; la discriminación en el proceso de verificación de la elegibilidad para trabajar (Formulario I-9 e E-Verify) por motivos de su ciudadanía, estatus migratorio o nacionalidad de origen; o represalias pueden presentar una denuncia o llamar a la línea directa de la IER para trabajadores para pedir ayuda.
El Departamento de Justicia Resuelve Alegaciones que Declaran que Proveedores de Servicios de Modificación de Préstamos en California Discriminaron a Propietarios de Viviendas Hispanos con Base en Su Origen NacionalRead the Press Release
WASHINGTON, D.C. – El Departamento de Justicia anunció hoy una serie de acuerdos cuyo objetivo es resolver las alegaciones de que varios proveedores de servicios de modificación de préstamos hipotecarios con sede en California discriminaron a ciertos individuos con base en su origen nacional, en contra de la ley federal de Vivienda Justa, al tener como público objetivo para sus servicios depredadores de modificación de préstamos hipotecarios a propietarios de viviendas hispanos y al interferir en la posibilidad de estos individuos conservar sus viviendas.
El Acuerdo resuelve un pleito que el Departamento presentó ante el Tribunal de Distrito de los EE. UU. para el Distrito Norte de California. Entre otros tipos de compensación, los acuerdos establecen un fondo de restitución de más de 148.000 $ para reembolsar a las víctimas de discriminación por los honorarios cobrados por los demandados como parte del plan depredador. El Pleito es el resultado de las denuncias presentadas ante el Departamento de la Vivienda y Desarrollo Urbano de los EE. UU. (HUD) por dos ex clientes de los demandados, Eberardo Pérez y Roberto Hernández, quienes se intervinieron en el pleito junto con su abogado, Housing & Economic Rights Advocates (HERA) y algunos miembros de la familia de Hernández.
«Los demandados en este caso vulneraron la ley federal y perjudicaron a las familias trabajadoras al explotar a propietarios de viviendas hispanos y tenerlos como público objetivo para sus servicios hipotecarios depredadores», indicó Eric Dreiband, el Fiscal General Auxiliar de la División de Derechos Civiles del Departamento de Justicia. «Estos acuerdos reflejan el compromiso inquebrantable del Departamento a poner fin a tales esquemas y a asegurar que todo propietario pueda acceder a servicios hipotecarios libres de discriminación».
«Las familias hispanas que están luchando por permanecer en las viviendas que trabajaron duro por comprar necesitan una ayuda real y no unos servicios hipotecarios falsos que empeoran una situación que ya de por sí está mal», declaró Anna María Farías, la Secretaria Auxiliar del HUD para la Vivienda Justa y la Igualdad de Oportunidades. «HUD seguirá colaborando con el Departamento de Justicia para tomar medidas contra aquellas personas y empresas que se aprovechen de propietarios de viviendas debido a su lugar de origen o porque hablen español u otros idiomas».
En su Denuncia Enmendada, el Departamento de Justicia alegó que del 2009 al 2010 tres compañías con sede en Modesto, California —The Home Loan Auditors LLC (THLA), Century Law Center LLC (CLC) y SOE Assistance Center Inc. (SOE)— junto con los directores de estas entidades y un bufete de abogados, convencieron a hasta 400 propietarios de viviendas hispanos que pagaran aproximadamente 5.000 $ para auditorías de préstamo innecesarias. Los demandados les dijeron a los propietarios de viviendas que las auditorías eran necesarias para las modificaciones de préstamo, pero en realidad las auditorías no tuvieron ningún impacto sobre el proceso de modificación de préstamo y no ofrecieron ningún beneficio financiero. Asimismo, el Departamento de Justicia alegó que como parte del servicio de modificación de préstamo que anunciaron, los demandados animaron a sus clientes a dejar de realizar pagos hipotecarios y les indicaron que dejaran de comunicarse con sus prestamistas. Estos consejos llevaron a que muchos propietarios de viviendas no pagaran sus hipotecas y que finalmente perdieran sus viviendas.
Las tres compañías nombradas en el pleito —THLA, CLC y SOE— cesaron sus actividades hace varios años. Hasta la fecha, el Departamento de Justicia ha resuelto su pleito contra los individuos que eran dueños y operadores de dichas compañías: Raúl Luna, Omar Alcarez, Hortencia León, Oralia Gutierrez, Elena Ramírez y Araceli Castro. También ha resuelto su pleito contra David Spieker, un abogado que trabajó para las compañías en ciertos aspectos de su esquema. Como parte de los acuerdos, los demandados acordaron abstenerse de conductas discriminatorias. Colectivamente, los demandados también acordaron contribuir más de 148.000 $ a un fondo de restitución que se utilizará para reembolsar a ex clientes por los honorarios pagados a THLA, CLC o SOE, y cinco de los demandados acordaron contribuir otros 405.699 $ por concepto de fallos suspendidos, lo cual solamente se podría cobrar si han hecho representaciones falsas en cuanto a su situación financiera actual.
Además del fondo de restitución establecido en conexión con las alegaciones de los Estados Unidos, HERA, Peréz y Hernández han llegado a acuerdos por aparte con los demandados, los que incluyen una indemnización adicional de 91.650 $.
La lucha contra la discriminación ilícita en la vivienda es de máxima prioridad para el Departamento de Justicia. La ley de Vivienda Justa prohíbe la discriminación en la vivienda por motivos de raza, color de piel, religión, género, estatus familiar, origen nacional y discapacidad. Para más información sobre la División de Derechos Civiles y las leyes que hace cumplir, consulte www.justice.gov/crt-espanol. Aquellos individuos que creen haber sido víctimas de la discriminación en la vivienda pueden llamar al Departamento de Justicia al 1-800-896-7743, enviar un correo electrónico al Departamento de Justicia a [email protected] o comunicarse con HUD al 1-800-669-9777.