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Tuesday 4 December 2018
Marion County man sentenced to 14 years for methamphetamine distribution and a firearms violationRead the Press Release
CLARKSBURG, WEST VIRGINIA – William A. Six, of Fairmont, West Virginia, was sentenced Monday to 168 months incarceration for selling crystal methamphetamine and having a firearm near a school, United States Attorney Bill Powell announced.
Six, age 27, pled guilty to one count of “Distribution of Methamphetamine” and one count of “Possession of a Firearm in a School Zone” in October 2018. Six admitted to selling crystal methamphetamine, also known as “Ice,” in Marion County in September 2017. Six also admitted to having a 12-gauge shotgun, and a semi-automatic rifle on the grounds of Washington Irving Middle School in Harrison County in September 2017.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Attorney General’s Office has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General’s Office announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives, the Three Rivers Drug Task Force, and the Fairmont Police Department investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Manhattan U.S. Attorney Announces Settlement of Civil Fraud Claims Against Law Firm Rosicki, Rosicki & Associates, P.C., and Two Affiliates for Inflating Foreclosure- And Eviction-Related ExpensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Laura Wertheimer, Inspector General for the Federal Housing Finance Agency Office of Inspector General (“FHFA-OIG”), and Michael J. Missal, Inspector General for the U.S. Department of Veterans Affairs (“VA”) Office of Inspector General (“VA-OIG”), announced today the settlement of a civil fraud lawsuit against New York law firm Rosicki, Rosicki & Associates, P.C. (“ROSICKI”) and its wholly owned affiliates, Enterprise Process Service, Inc. (“ENTERPRISE”) and Paramount Land, Inc. (“PARAMOUNT”). The settlement resolves the United States’ claims, asserted under the False Claims Act, alleging that ROSICKI used its affiliates, ENTERPRISE and PARAMOUNT, to systematically generate false and inflated bills for foreclosure-related and eviction-related expenses, and caused those expenses to be submitted to and paid for by the Federal National Mortgage Association, known colloquially as Fannie Mae. The settlement also resolves claims arising from identical misconduct in connection with eviction-related expenses that were submitted to and paid for by the VA. As part of the settlement approved by U.S. District Judge Jed S. Rakoff, ROSICKI, ENTERPRISE, and PARAMOUNT admitted and accepted responsibility for their conduct and must pay $4.6 million to the United States. The settlement also requires ROSICKI to implement a compliance program with regular reporting over the next five years, and to publicly disclose the nature of its affiliation with ENTERPRISE and PARAMOUNT on its website.
Manhattan U.S. Attorney Geoffrey S. Berman said: “Lawyers are not above the law. For years, the Rosicki firm submitted bills to Fannie Mae and the VA that contained inflated and unnecessary charges. This Office will continue to hold accountable those who seek to achieve profits by fraudulent conduct.”
FHFA-OIG Inspector General Wertheimer said: “FHFA is committed to holding accountable those who waste, steal, or abuse the resources of FHFA or any of the entities it regulates. We work with U.S. Attorneys’ Offices across the country to protect the interests of the American taxpayers in the housing government-sponsored enterprises and are proud to have partnered with the U.S. Attorney’s Office for the Southern District of New York on this matter.”
VA-OIG Inspector General Michael J. Missal said: “This civil settlement should send a clear message to individuals and businesses that VA-OIG and its law enforcement partners will vigorously investigate and expose false claims that fraudulently impact programs designed to benefit our veterans and their families.”
ROSICKI is a New York law firm whose main practice area is mortgage foreclosures. The two founding ROSICKI partners also own a number of affiliated entities, including ENTERPRISE, a service-of-process company, and PARAMOUNT, a title search company. Fannie Mae approved ROSICKI to perform legal work in connection with foreclosures on residential properties for which Fannie Mae owned the mortgage loans. Fannie Mae’s Servicing Guide required, among other things, that all foreclosure costs and expenses be “actual, reasonable, and necessary,” and that foreclosure law firms “must make every effort to reduce foreclosure-related costs and expenses in a manner that is consistent with all applicable laws.” ROSICKI understood those requirements and represented at various times that the firm was complying with them.
In fact, as ROSICKI, ENTERPRISE, and PARAMOUNT have admitted, from 2009 through 2018, on certain invoices for service of process (i.e., delivery or attempted delivery of legal papers) in connection with foreclosures or evictions, ENTERPRISE added additional charges to the costs charged by independent contractors and otherwise took actions that increased costs and expenses. Similarly, on certain invoices for foreclosure searches and title continuations, PARAMOUNT added additional charges to the costs charged by independent contractors and otherwise took actions that increased costs and expenses. ROSICKI submitted those costs and expenses for payment, with the understanding that Fannie Mae would reimburse for them.
The settlement also resolves identical conduct by ROSICKI, ENTERPRISE, and PARAMOUNT pertaining to expenses attendant to evictions that ultimately were paid by the VA.
This case arose from a lawsuit filed by a whistleblower under the False Claims Act. In March of this year, the United States intervened in the case and took over prosecution of some of the claims that the whistleblower asserted. In a separate settlement agreement, ROSICKI, ENTERPRISE, and PARAMOUNT agreed to pay the United States an additional $1,518,000 to resolve separate False Claims Act claims pursued by the whistleblower, resulting in a total recovery to the United States of $6,118,000.
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Mr. Berman thanked the FHFA-OIG and VA-OIG for their efforts and ongoing support and assistance with the case.
The case is being handled by the Office’s Civil Division. Assistant U.S. Attorneys Cristy Irvin Phillips, Andrew E. Krause, and Joseph N. Cordaro are in charge of the case.
Man Sentenced for Stealing Construction EquipmentRead the Press Release
MADISON, WIS. – Scott C. Blader, United States Attorney for the Western District of Wisconsin, announced that Gene Sauer, 49, Cambria, Wisconsin, was sentenced on November 29 by U.S. District Judge William M. Conley to 42 months in federal prison for interstate trafficking of stolen property. Sauer pleaded guilty to the offense on September 18, 2018.
Sauer was taken into custody by U.S. Marshals to begin serving his sentence immediately following the sentencing. The final amount of restitution owed to victims will be determined at a hearing on February 15, 2018.
Over a two-year period, Sauer stole eight skid steer loaders from construction sites in Wisconsin, and transported them to an implement dealer in Illinois, where they were later resold. Sauer took the skid steer loaders to Illinois so they would be more difficult for law enforcement to find. Sauer has four previous felony theft-related convictions.
Sauer’s co-defendant in three of the thefts, Daniel Grupe, 26, pleaded guilty to interstate trafficking of stolen property on September 19, 2018. His sentencing is scheduled for December 13, 2018.
The charges against Gene Sauer and Daniel Grupe were the result of an investigation conducted by the Federal Bureau of Investigation, DeForest and Sun Prairie Police Departments, Columbia and Green Lake County Sheriffs’ Offices, and the Illinois State Police. The prosecution of the case has been handled by Assistant U.S. Attorney Meredith P. Duchemin.
Los Angeles-Area Clothing Outlets Owner Gets One-Year Prison Sentence for Failing to Report Nearly $4 Million in Income to IRSRead the Press Release
LOS ANGELES – A Downey man who operates second-hand clothing stores in Los Angeles County has been sentenced to one year and one day in federal prison for not reporting nearly $4 million in corporate income to the Internal Revenue Service.
Jose Martin Andrade Flores, 53, the owner and operator of American Superior Used Clothing, Inc., also was ordered by United States District Judge Christina A. Snyder on Monday to pay a $10,000 fine.
Flores pleaded guilty in September to one count of subscribing to a false corporation income tax return that he filed for American Superior for 2013. In that year, American Superior had income of approximately $3,440,769, but Flores instead reported only $2,505,183, omitting income of $935,586.
According to court documents, part of American Superior’s business model was to recycle used clothing, then resell it at retail stores located on Melrose Avenue, Hollywood, Echo Park and Pasadena. The company also engaged in bulk wholesale transactions with international buyers and sold merchandise at Rose Bowl swap meets and on East Los Angeles sidewalk locations.
From 2012 through 2016, Flores concealed from his corporate tax preparer cash sales and deposits into foreign bank accounts that were made on behalf of American Superior. As a result, the tax returns he filed for American Superior for those five years failed to report a total of $3,966,473 in income to the IRS.
In early 2017, Flores put American Superior up for sale, advertising the company’s sale on BizBuySell, a website where companies are bought and sold, according to the government’s sentencing memorandum. The advertisement listed a selling price of $3.5 million and estimated revenue of $4 million – twice the revenue the company reported to the IRS in its tax returns.
Prospective buyers then met in person with Flores on three occasions, and engaged in multiple telephone calls with him. During a May 2017 meeting with the prospective buyers, Flores said American Superior generated $800,000 to $1 million in cash each year, but reported only enough money on its tax returns to give the appearance it was breaking even. Flores also told them that he made between $300,000 and $400,000 each year from American Superior.
According to court documents, Flores also told the prospective buyers, “There is no better business than this business. When you report, you can always break even. It’s a recycling business. They won’t touch you.”
Two months later, the IRS executed a search warrant and seized the company’s true cash receipts that Flores had described and shown to the prospective buyers. The agents also seized cash and text messages sent to Flores from employees reporting the daily sales at one of his retail stores.
As part of this case, Flores agreed to pay all back taxes, interest and penalties associated with his willful failure to accurately report American Superior’s income. Flores has paid the IRS $1,189,331, which includes $439,632 in penalties.
This matter was investigated by IRS Criminal Investigation.
This case is being prosecuted by Assistant United States Attorney Ranee Katzenstein, Chief of the Major Frauds Section.
LivaNova agrees to pay $1.87 Million to resolve False Claims Act allegations arising from improper kickback paymentsRead the Press Release
ATLANTA – LivaNova USA, Inc. (“LivaNova”), formerly known as Cyberonics, Inc., has agreed to pay the United States and the State of Georgia $1.87 million to resolve allegations that it violated the False Claims Act and the Georgia False Medicaid Claims Act by knowingly paying kickbacks to Georgia physicians with the intent to cause referrals for implantation of LivaNova’s medical devices.
“Healthcare providers must make recommendations about their patients’ health without respect to their own financial interests and medical device manufacturers cannot be permitted to influence that process with thinly-disguised kickback payments,” said U.S. Attorney Byung J. “BJay” Pak. “This settlement demonstrates our commitment to ensuring that the healthcare provided to our citizens, and the medical guidance given by Georgia physicians, is free from improper monetary influence.”
“The success of Georgia’s Medicaid program depends on the integrity of medical professionals in making decisions regarding patient care,” said Attorney General Chris Carr. “When companies provide incentives to physicians that emphasize interests beyond the patient, the entire system is corrupted. I am proud of our Medicaid Fraud Division’s work on this case, and we will continue to work alongside our federal partners to root out this activity.”
The government’s investigation concerned LivaNova’s policy and practice of paying speaking fees to Georgia physicians for supposed speaking and marketing events at which the attendees were primarily the physicians and their own staff. The physicians who received these fees were amongst the highest referral sources for surgical implantation of LivaNova’s device for treatment of refractory epilepsy. The government alleges that these payments violated the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b), which prohibits the knowing and willful payment of “remuneration” to induce or reward the generation of business involving any item or service payable by Medicare and Medicaid. Such violations are actionable under the False Claims Act and the Georgia False Medicaid Claims Act.
The settlement resolves allegations filed by Ashley Case, a former employee of LivaNova, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it did in this case. The lawsuit was filed in the Northern District of Georgia and is captioned United States of America and State of Georgia ex rel. Ashley Case v. LivaNova, P.L.C., Civil Action No: 1:16-cv-0807-MHC (N.D. Ga.). Ms. Case will receive a share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This matter was investigated by the U.S. Attorney’s Office for the Northern District of Georgia and the Georgia Medicaid Fraud Control Unit.
Assistant U.S. Attorney Gabriel Mendel handled this matter for the U.S. Attorney’s Office.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Leader of Boston-Based Drug Trafficking Organization Sentenced to 16 Years in PrisonRead the Press Release
BOSTON – The leader of a Boston-based heroin and fentanyl trafficking organization was sentenced yesterday in federal court in Boston.
Jose Antonio Lugo-Guerrero, a/k/a Fernando Rivera-Rodriguez, 40, a Dominican national formerly residing in Mattapan, was sentenced by U.S. District Court Judge Indira Talwani to 16 years in prison and five years of supervised release. Lugo-Guerrero will be subject to deportation proceedings upon completion of his sentence. In August 2018, Lugo-Guerrero pleaded guilty to one count of conspiracy to distribute and possess with intent to distribute more than one kilogram of heroin, more than 400 grams of fentanyl, and more than five kilograms of cocaine, and one count of possession of a firearm in furtherance of a drug trafficking crime. In February 2017, Lugo-Guerrero was arrested and charged along with 22 co-defendants.
From mid-2016 through February 2017, federal law enforcement investigated two drug trafficking organizations operating in Taunton and Boston; the former led by Fernando Hernandez, and the latter led by Lugo-Guerrero. Hernandez’s organization obtained drugs from a network of suppliers that included Lugo-Guerrero.
Lugo-Guerrero sold kilograms of heroin, fentanyl, and cocaine to customers in Boston, New Bedford, Fall River, and surrounding areas. The evidence, including federal wiretaps in late 2016 and early 2017, further showed that he obtained some of the drugs he sold by robbing other drug dealers. On Nov. 3, 2016, Lugo-Guerrero and five co-defendants traveled to New Bedford planning to rob a drug dealer who had stolen half a kilogram of heroin from Lugo-Guerrero. At Lugo-Guerrero’s direction, one of the co-defendants transported a firearm and provided it to another co-defendant just before the attempted robbery. Based on intercepted communications, law enforcement agents were aware of the planned robbery and stopped and questioned the defendants before it occurred. As a result, Lugo-Guerrero aborted his plan that night and returned to Boston.
In February 2018, Hernandez was sentenced to 15½ years in prison after pleading guilty in November 2017. The court found that Hernandez was responsible for distributing more than a kilogram of heroin over a two-month period in the summer of 2016.
United States Attorney Andrew E. Lelling; Brian D. Boyle, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Bristol Country District Attorney Thomas M. Quinn; Bristol County Sheriff Thomas M. Hodgson; Attleboro Police Chief Kyle P. Heagney; Boston Police Commissioner William Gross; Bridgewater Police Chief Christopher Delmonte; Fairhaven Police Chief Michael Myers; Fall River Police Chief Albert F. Dupere; New Bedford Police Chief Joseph C. Cordeiro; and Taunton Police Chief Edward James Walsh made the announcement. Assistant U.S. Attorney Ted Heinrich of Lelling’s Narcotics and Money Laundering Unit prosecuted the case.
Las Vegas Pharmacist Sentenced to Prison for Health Care Fraud ConspiracyRead the Press Release
LAS VEGAS, Nev. – A Las Vegas pharmacist was sentenced Monday by U.S. District Judge Richard F. Boulware II, to 14 months in prison and three years of supervised release for conspiring with others to commit health care fraud, announced U.S. Attorney Dayle Elieson for the District of Nevada. As part of his sentence, he was ordered to pay $3,749,121 in restitution.
Nelson M. Mukuna, 41, previously pleaded guilty to conspiracy to commit health care fraud and structuring transactions to evade reporting requirements. He was the owner and operator of Atlas Specialty Pharmacy which concentrated in specialty drugs.
The conspiracy was in place between July 2016 to December 2017. It started when Mukuna became friends with Robert Harvey, who in turn introduced him to co-conspirator Alejandro Incera, an Advanced Practice Registered Nurse. In November 2016, Mukuna and Incera conspired and agreed that Mukuna would provide Incera with Xeomin, a form of Botox injection, in exchange for Incera’s patient referrals to Atlas Pharmacy for their prescriptions. As their business relationship developed, Incera referred more patients to Atlas. By January 2017, Mukuna started paying Incera $100 cash for each patient referral. Soon after, Mukuna approached other providers and offered cash for their patient referrals. In November 2016, Incera introduced Mukuna to co-conspirator Leslie Kalyn who started engaging in the same kickback referral scheme. In January 2017, Mukuna agreed to pay his co-conspirators $200 per patient referral. The approximate kickback payments totaled $175,000.
In an effort to conceal the kickback scheme, Mukuna structured cash withdrawals from his business bank account in order to avoid a Currency Transaction Report from being generated. Domestic financial institutions, like banks, are required to file transaction reports for cash transactions exceeding $10,000 in a single day.
As a result of this prosecution, Atlas Pharmacy has closed and Mukuna has surrendered his pharmacy and DEA licenses.
The case was investigated by the FBI, the Office of Inspector General of the U.S. Department of Health and Human Services, and the Nevada Attorney General’s Office Medicaid Fraud Control Unit. Assistant U.S. Attorney Kilby Macfadden prosecuted the case.
The Opioid Fraud and Abuse Detection Unit is a program that utilizes data to help combat the devastating opioid crisis. The District of Nevada was selected as one of 12 districts nationally to participate in the pilot program. The District of Nevada has assigned an experienced prosecutor that focuses solely on investigating and prosecuting health care fraud related to medical professionals who prescribe opioids, that unlawfully divert of dispense prescription opioids for illegitimate purposes.
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Jury Convicts St. Joseph Man of Illegal FirearmRead the Press Release
KANSAS CITY, Mo. – A St. Joseph, Mo., man was convicted by a federal trial jury today of illegally possessing a firearm following an 11-hour standoff with law enforcement officers.
Terrance T. Brown, 41, of St. Joseph, was found guilty of being a felon in possession of a firearm.
Evidence introduced during the trial indicated that Brown was in possession of a loaded Ruger 9mm pistol on Sept. 13, 2017. Brown was arrested following a 11-hour standoff at a St. Joseph residence on that date. Officers with the St. Joseph Police Department and the Buchanan County Sheriff’s Department established a perimeter around the residence. After several minutes, three individuals (including a juvenile) came out of the residence, but Brown – armed with the handgun – remained inside. Officers with the Special Response Team used portable cameras to locate Brown in the attic of the residence. Eventually, Brown surrendered to officers and was arrested as he left the residence. The loaded Ruger 9mm pistol with an extended magazine was found during a search of the attic. Officers also found ammunition and an empty box for a Smith & Wesson .40-caliber firearm, which contained some ammunition.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Brown has a prior federal conviction in the District of Kansas for being a felon in possession of a firearm. Brown has two prior felony convictions for robbery in Wyandotte County, Kan., as well as prior felony convictions for aggravated assault, criminal possession of a firearm, and attempted possession of a controlled substance. Brown was under supervision by Missouri Probation and Parole for felony drug possession in Jackson County, Mo., at the time of the offense.
Following the presentation of evidence, the jury in the U.S. District Court in Kansas City, Mo., deliberated for and an hour and a half before returning the guilty verdict to U.S. District Judge Stephen R. Bough, ending a trial that began Monday, Dec. 3, 2018.Under federal statutes, Brown is subject to a sentence of up to 10 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorneys Emily A. Morgan and Adam Caine. It was investigated by Bureau of Alcohol, Tobacco, Firearms and Explosives, the St. Joseph, Mo., Police Department and the Buchanan County, Mo., Sheriff’s Department.
Project Safe Neighborhoods
The U.S. Attorney’s Office is partnering with federal, state, and local law enforcement to specifically identify criminals responsible for significant violent crime in the Western District of Missouri. A centerpiece of this effort is Project Safe Neighborhoods, a program that brings together all levels of law enforcement to reduce violent crime and make neighborhoods safer for everyone.Jury Convicts Honduran Drug Trafficker of Cocaine ConspiracyRead the Press Release
A federal jury in the Eastern District of Virginia convicted a Honduran man yesterday of leading a drug trafficking organization that helped smuggle thousands of kilograms of cocaine into the United States over the last decade.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney G. Zachary Terwilliger for the Eastern District of Virginia, Acting Special Agent in Charge Scott W. Hoernke for the Drug Enforcement Administration’s (DEA) Washington Field Division, Assistant Director in Charge Nancy McNamara of the FBI’s Washington Field Office, Special Agent in Charge Patrick J. Lechleitner of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement.
Arnulfo Fagot-Maximo, 57, was convicted of conspiracy to distribute cocaine knowing that the cocaine was to be unlawfully imported into the United States following a five-day trial before U.S. District Judge Liam O’Grady. Fagot-Maximo had been extradited to the United States following his indictment in the Eastern District of Virginia. According to court records and evidence presented at trial, Arnulfo Fagot-Maximo was the leader of a drug trafficking organization based in the La Mosquitia region of the Departamento Gracias a Dios, Honduras. His organization was a critical link between Colombian cocaine suppliers and other major Honduran traffickers. For over a decade, Fagot-Maximo received cocaine from Colombia along the Mosquitia coast by “go fast” boats, small aircraft, and submersible vessels in quantities ranging from a few hundred to several thousand kilograms per delivery. Most of this cocaine was transferred to the Montes Bobadilla organization in Francia, Honduras, where it was received by other traffickers. Eventually the cocaine was transported by land through Honduras and Guatemala, and it was then delivered to Mexican cartels for importation into the United States. Fagot-Maximo received tens of millions of dollars in U.S. currency for the sale and delivery of this cocaine.
He faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison when sentenced on March 29, 2019. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the DEA as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Harpoon through DEA’s HIDTA Task Force in Annandale Virginia. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. 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.
Assistance in the investigation and prosecution was provided by the U.S. Attorney’s Offices for the Southern District of New York, the Middle District of Florida, and the Southern District of Florida, as well as assistance from the U.S. Coast Guard, and the Honduran National Police. Trial Attorney Anthony T. Aminoff of the Criminal Division’s Narcotic and Dangerous Drug Section and Assistant U.S. Attorneys James L. Trump and Thomas W. Traxler of the Eastern District of Virginia are prosecuting the case. The Criminal Division’s Office of International Affairs assisted with the extradition in this matter.
Jury Convicts Honduran Drug Trafficker of Cocaine ConspiracyRead the Press Release
ALEXANDRIA, Va. – A federal jury convicted a Honduran man late yesterday of leading a drug trafficking organization that smuggled at least thousands of kilos of cocaine into the United States over the last decade.
According to court records and evidence presented at trial, Arnulfo Fagot-Maximo, 57, was the leader of a drug trafficking organization based in the La Mosquitia region of the Departamento Gracias a Dios, Honduras. His organization was a critical link between Colombian cocaine suppliers and other major Honduran traffickers. For over a decade, the Fagot-Maximo received cocaine along the Mosquitia coast from Colombia by “go fast” boats, small aircraft, and submersible vessels in quantities ranging from a few hundred to several thousand kilograms per delivery. Most of this cocaine was transferred to the Montes Bobadilla organization in Francia, Honduras, where it was received by other traffickers. Eventually the cocaine was transported by land through Honduras and Guatemala, and then it was delivered to the Mexican cartels for importation into the United States. Fagot-Maximo received tens of millions of dollars in U.S. currency for the sale and delivery of this cocaine.
Arnulfo Fagot-Maximo was convicted of conspiracy to distribute cocaine knowing that the cocaine was to be unlawfully imported into the United States. He faces a mandatory minimum sentence of 10 years and a maximum sentence of life in prison when sentenced on March 29, 2018. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
The case was investigated by the DEA as part of the Organized Crime Drug Enforcement Task Forces (OCDETF), Operation Harpoon through DEA’s HIDTA Task Force in Annandale Virginia. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, Brian A. Benczkowski, Assistant Attorney General for the Criminal Division of the Department of Justice, Scott W. Hoernke, Acting Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., and Colonel Gary T. Settle, Superintendent of Virginia State Police, made the announcement after U.S. District Judge Liam O’Grady accepted the verdict.
Assistance in the investigation and prosecution was provided by the U.S. Attorney’s Offices for the Southern District of New York, the Middle District of Florida, and the Southern District of Florida. Assistance was also provided by the U.S. Coast Guard and the Honduran National Police. Assistant U.S. Attorneys James L. Trump, Thomas W. Traxler and DOJ Trial Attorney Anthony Aminoff are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-290.
Joint Statement of the U.S. Attorney’s Office and the Denver Field Office of the Drug Enforcement Administration regarding the City and County of Denver’s Proposal to Create Supervised Locations to Inject Heroin and Other Illegal DrugsRead the Press Release
DENVER -- The Denver City Council recently passed an ordinance that proposes establishing supervised use sites, where drug users would be allowed to lawfully inject heroin and other illegal drugs in a facility operated by a governmental organization or a nonprofit. This proposal still has a number of steps to go before it becomes a reality. In the meantime, there are a few things Coloradans should know.
Foremost, the operation of such sites is illegal under federal law. 21 U.S.C. Sec. 856 prohibits the maintaining of any premises for the purpose of using any controlled substance. Potential penalties include forfeiture of the property, criminal fines, civil monetary penalties up to $250,000, and imprisonment up to 20 years in jail for anyone that knowingly opens, leases, rents, maintains, or anyone that manages or controls and knowingly and intentionally makes available such premises for use (whether compensated or otherwise). Other federal laws likely apply as well.
Second, there is no evidence that such sites actually reduce the number of drug-related deaths or make it more likely that users will seek help for their addiction or mental health issues. Indeed, a recent review of one facility in Vancouver found that the overdose death rate in the immediate vicinity of the facility was actually the highest in the city. This may be due in part to the fact that while these facilities are touted as being “safe” because of the availability of opioid antagonists (e.g., Naloxone or Narcan), these facilities are not actually limited to opioid users. Those injecting methamphetamine, cocaine, or other drugs for which there is no counteragent are also welcome to use the facility. The Denver facility likewise would welcome users of any drug, not just opioids.
Third, these facilities actually increase public safety risks. Just like so-called crack houses, these facilities will attract drug dealers, sexual predators, and other criminals, ultimately destroying the surrounding community. More importantly, the government-sanctioned operation of these facilities serves only to normalize serious drug usage – teaching adults and children alike that so-called “safe” drug usage is somehow appropriate or can actually be done “safely.” The type of drug use contemplated here is always life-threatening behavior.
Finally, we note that nothing in this statement should be read as casting aspersions on the laudable motives of those seeking to improve our communities and free Coloradans from the scourge of drug addiction. The U.S. Attorney’s Office and the Denver Field Office of the Drug Enforcement Administration support all methods of legal intervention to address the opioid and methamphetamine crisis in Colorado, and in fact work hard to facilitate them every day.
But these efforts must comply with federal law. Efforts that do not comply with federal law risk action by the U.S. Attorney’s Office using any and all federal remedies available.
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Jefferson County man sentenced for heroin and firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – Tyler Logan Kranenberg, of Ranson, West Virginia, was sentenced Monday to 61 months incarceration for heroin distribution and a firearms charge, United States Attorney Bill Powell announced.
Kranenberg, age 30, pled guilty to one count of “Possession of a Firearm During and in Relation to a Drug Crime” and one count of “Distribution of Heroin” in August 2018. Kranenberg admitted to possessing a .25 caliber pistol while distributing heroin in July 2017 in Jefferson County.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. The Attorney General’s Office has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, the Attorney General’s Office announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Assistant U.S. Attorney Lara K. Omps-Botteicher prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man sentenced for drug chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Guillermo Jose Rodriguez, of Charles Town, West Virginia, was sentenced Monday to two years probation for a drug charge, United States Attorney Bill Powell announced.
Rodriguez, age 26, pled guilty to one count of “Aiding and Abetting Possession with Intent to Distribute Cocaine Hydrochloride” in August 2018. Rodriguez admitted to possessing and distributing cocaine in Jefferson County in January 2018.
Assistant U.S. Attorney Lara Omps-Botteicher prosecuted the case on behalf of the government. The Drug Enforcement Administration, the U.S. Postal Inspection Service, and the Jefferson County Sheriff’s Office investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson County man sentenced for bank robberyRead the Press Release
MARTINSBURG, WEST VIRGINIA –A Charles Town, West Virginia man was sentenced Monday to 70 months incarceration for robbing a Charles Town bank, United States Attorney Bill Powell announced.
Ryan Stepanian, age 26, pled guilty to one count of “Bank Robbery” in August 2018. Stepanian admitted to taking $14,890 from the City National Bank of Charles Town, West Virginia, on January 22, 2018.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Federal Bureau of Investigation, the Ranson Police Department, and the Charles Town Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Jefferson City Man Pleads Guilty to Meth ConspiracyRead the Press Release
KANSAS CITY, Mo. – A Jefferson City, Mo., man pleaded guilty in federal court today to his role in a conspiracy to distribute methamphetamine that was mailed to him by a co-conspirator in California.
Javier Rashad Rosser, 32, pleaded guilty before U.S. Magistrate Judge Willie J. Epps, Jr., to one count of conspiracy to distribute methamphetamine from April 4, 2016, to April 4, 2017.
Co-defendant Shadeed Seifullah Muhammad, 42, of Compton, Calif., mailed a package that contained nearly two pounds of methamphetamine from California to an address in Columbia, Mo., on April 4, 2016. This package was tracked online by a computer IP address that traced to Rosser’s residence. Co-defendant Robert Istill McNair, 32, of Jefferson City, picked up the package from a co-conspirator at the Columbia residence. McNair traveled to Jefferson City with the package with the intent to deliver it to Rosser. He had instructions leave the package of methamphetamine in a car at his workplace in Jefferson City, but Rosser never picked it up. On the same day, Rosser deposited $5,500 into the bank account of Muhammad’s girlfriend.
Muhammad mailed another package, which contained approximately one pound, nine ounces of methamphetamine, from California to an address at Lincoln University in Jefferson City on March 30, 2017. A student at Lincoln University later told investigators that Rosser had asked her to pick up the package and deliver it to him. On April 4, 2017, U.S. Postal Inspection agents set up a controlled delivery and surveillance at the Lincoln University mailroom. When an individual arrived to pick up the package from the mailroom, he was arrested.
Muhammad also admitted that he had mailed a package that contained two pounds of methamphetamine to an address in Jefferson City nearly a year earlier. The package was seized by the U.S. Post Office on March 11, 2016. According to computer IP addresses, the package was being tracked online by Muhammad and Rosser.
Both Muhammad and McNair have pleaded guilty to their roles in the drug-trafficking conspiracy and await sentencing.
Under federal statutes, Rosser is subject to a mandatory minimum sentence of ten years in federal prison without parole, up to a sentence of life in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Drug Enforcement Administration, the FBI and the U.S. Postal Inspection Service.
Jackson Man Sentenced to 15 Years in Prison for Methamphetamine ConspiracyRead the Press Release
Jackson, Miss. – Keith Mullen, 46, of Jackson, was sentenced today by U.S. District Judge William H. Barbour, Jr. to 180 months in federal prison, followed by 5 years of supervised release, for conspiring to possess with the intent to distribute 50 grams or more of actual methamphetamine, announced U.S. Attorney Mike Hurst and DEA Assistant Special Agent in Charge Derryle Smith. Mullen was also ordered to pay a $1,500.00 fine.
From November 2015 to February 2016, and while in federal prison, Mullen assisted co-conspirators in arranging the purchase and delivery of 30 kilograms of methamphetamine from a source of supply in Mexico. The drugs were intended for distribution in central Mississippi. The case is the result of an extensive investigation, dubbed ARock Bottom,@ which began as an operation targeting illegal narcotics distribution in central Mississippi that involved the distribution of cocaine, crack and methamphetamine.
The case was investigated by the Drug Enforcement Administration, the Mississippi Bureau of Narcotics, and the Bureau of Alcohol Tobacco Firearms and Explosives, with assistance from the Hinds County Sheriff’s Office, Ridgeland Police Department, Jackson Police Department, U.S. Marshals Service, Federal Bureau of Investigation, Mississippi Highway Patrol, Madison County Sheriff’s Office, Brandon Police Department, Rankin County Sheriff’s Office, Mississippi Department of Corrections, Pearl Police Department, Flowood Police Department, Customs and Border Patrol, and the DEA Houston Field Division. It was prosecuted by Assistant United States Attorney Chris Wansley.
Illegal Alien Convicted of Hindering His Removal from the United StatesRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Euphrem Kios Dohou, age 50, a native and citizen of Benin, West Africa, was convicted on November 29, 2018, after a two-day bench trial before United States District Court Judge Robert D. Mariani, of hindering his removal from the United States.
According to United States Attorney David J. Freed, the evidence showed that Dohou entered the United States in 1992 on a B-2 Visitor Visa that permitted him to visit in the United States for a period of six months but Dohou failed to return to his home country of Benin as required by law. In August 2006, Dohou was charged and convicted in the Eastern District of New York of a federal drug trafficking crime for which he was sentenced to a term of ten years’ imprisonment. He was subsequently encountered by Immigration Officials while serving his sentence at a Bureau of Prisons facility in Minnesota. On September 22, 2015, an Immigration Judge sitting in York, Pennsylvania issued a final order of removal against Dohou.
On September 29, 2015, September 30, 2015, October 9, 2015, October 16, 2015, October 29, 2015, and November 5, 2015, Dohou refused to complete the required travel document application to facilitate his deportation to Benin. Immigration Officials were subsequently able to secure the necessary travel document in Dohou’s name via the Republic of Benin Embassy. Flight arrangements for deportation from the United States were scheduled for Dohou but on January 15, 2016 and again on February 9, 2015, Dohou physically and verbally resisted efforts of Immigration Officials to transport him from the York County Prison to the Washington Dulles International Airport. Dohou was subsequently indicted by a federal grand jury in March of 2016.
The case was investigated by U.S. Immigration and Customs Enforcement and Removal Operations (ERO). Assistant United States Attorney Michelle Olshefski prosecuted the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines. In this case, Dohou faces up to ten years’ imprisonment and a $250,000 fine. Dohou remains in custody with a tentative sentencing date of February 4, 2019.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Identity Thief Pleads Guilty to Operating $1.4 Million Ponzi SchemeRead the Press Release
ALEXANDRIA, Va. – An Alexandria man pleaded guilty today to running a Ponzi scheme that defrauded over 20 victims of more than $1.4 million.
According to court documents, Brian Thomas Sapp, 38, ran a company called Novus Properties, which purported to have relationships with banks and mortgage lenders who wished to sell distressed lender-owned properties. These were supposedly single-family residences in Virginia, Maryland and the District of Columbia. Sapp raised capital from investors to loan him money to be used in the purchase of the homes, which he claimed he would resell 90 days later at a substantial profit. Sapp promised rates of return as high as 25 percent, and falsely claimed to have a guaranteed buyer for all his properties, usually a real Alexandria-based construction company.
To execute the scheme, Sapp stole the identity of the president of the construction company. Sapp, using a cloud-based platform called DocuSign, executed false contracts between Novus and the construction company, using the same IP address within minutes of each other to affix both his own digital signature as seller for Novus and the digital signature of the victim construction company president as buyer. Sapp would send the purchase contracts to victims, along with falsified HUD-1 Settlement Statement summaries, as evidence that he had purchased the properties and already contracted to re-sell them. Altogether, Sapp executed hundreds of false real estate transactions to induce victims to part with money. In truth, Sapp did not close on deals and used victim money to buy a Mercedes, take golf vacations, and to make lulling payments to investors. Sapp targeted close friends and their family who trusted him.
Sapp pleaded guilty to wire fraud and to aggravated identity theft and faces a mandatory minimum penalty of two years in prison for the identity theft charge, and a maximum of 20 years for the wire fraud charge, when sentenced on March 15, 2019. 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.
G. Zachary Terwilliger, U.S. Attorney for the Eastern District of Virginia, and Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after U.S. District Judge Anthony J. Trenga accepted the plea. Assistant U.S. Attorney Russell L. Carlberg 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 is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:18-cr-446.
Houston Man Convicted of Federal Drug Trafficking and Money Laundering ChargesRead the Press Release
BEAUMONT, Texas – A 40-year-old Houston man has been convicted of drug trafficking and money laundering violations in the Eastern District of Texas, announced U.S. Attorney Joseph D. Brown today.
John D. Leontaritis, owner and operator of Vanderhall Exotics of Houston, and former owner operator of Global Motorcars of Houston, car dealerships that specialize in exotic, luxury automobiles, was found guilty by a jury today following a six-day trial before U.S. District Judge Marcia A. Crone.
According to information presented in court, Leontaritis was indicted by a federal grand jury on Apr. 4, 2018, and charged with conspiracy to possess with intent to distribute and distribution of methamphetamine, as well as, conspiracy to commit money laundering, which were committed from 2013 to 2017 in both the Houston and Beaumont areas. As a result of this investigation, seven other members of the conspiracy have already pleaded guilty and been sentenced.
This case is the result of an extensive joint investigation by the Organized Crime Drug Enforcement Task Force (OCDETF). 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the U.S. Probation Office.
This case was investigated by the U.S. Drug Enforcement Administration, the Houston Police Department and the Internal Revenue Service-CI and prosecuted by Assistant U.S. Attorneys Michelle S. Englade and Michael Anderson.
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Hartford Man Sentenced to 8 Years in Federal Prison for Drug and Gun OffensesRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DAQUAN PATTERSON-GREENE, 22, of Hartford, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 96 months of imprisonment, followed by four years of supervised release, for drug and firearm offenses.
According to court documents and statements made in court, on September 7, 2017, Patterson-Greene led Hartford Police officers on a foot chase in Hartford’s North End. During the chase, Patterson-Greene discarded a loaded Glock 22 .40 caliber semi-automatic pistol, a firearm magazine containing 15 rounds of .40 caliber ammunition, and an orange backpack.
Officers apprehended Patterson-Greene on Vineland Terrace and recovered the discarded pistol, ammunition and backpack. A search of Patterson-Greene’s person revealed $252 in cash and small amount of marijuana. A search of the backpack revealed approximately 13 ounces of marijuana, 13 zip lock bags containing marijuana, a knotted plastic bag containing several pieces of a substance that field-tested positive for the presence of MDMA (ecstasy), a digital scale, and a box of sandwich bags.
Subsequent analysis of the suspected MDMA identified it as N-Ethylpentylone, which is a controlled analogue of MDMA.
Patterson-Greene’s criminal history includes felony convictions for first-degree assault and possession of a pistol without a permit. In addition, he was on state probation at the time of his arrest.
Patterson-Greene has been detained since his arrest on September 7, 2017. On September 11, 2018, he pleaded guilty to one count of possession of marijuana with the intent to distribute, and one count of possession of a firearm in furtherance of a drug trafficking crime.
Judge Thompson ordered Patterson-Greene to perform 100 hours of community service during his term of supervised release.
This matter was investigated by the Hartford Police Department and the FBI’s Northern Connecticut Violent Crimes Gang Task Force. The case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson and Special Assistant U.S. Attorney John F. Fahey of the Hartford State’s Attorney’s Office.
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 neighborhoods safer for everyone.
Hartford Man Pleads Guilty to Federal Gun ChargeRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that NOEL PEREZ, 22, of Hartford, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of possession of a firearm by a convicted felon.
According to court documents and statements made in court, on May 29, 2018, Hartford Police stopped a vehicle Perez was driving on Wadsworth Street. A search of the vehicle revealed a loaded Sig Sauer P2022 .40 caliber handgun, which had a laser sight attached to its barrel.
Perez’s criminal history includes felony convictions in state court for assault, burglary and larceny offenses.
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.
Perez has been detained since his arrest.
Judge Meyer scheduled sentencing for February 27, 2019, at which time Perez faces a maximum term of imprisonment of 10 years.
This investigation has been conducted by the Hartford Police Department and the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force. The case is being prosecuted by Assistant U.S. Attorney Anastasia E. King.
This prosecution 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 neighborhoods safer for everyone.
Fraudsters Sentenced to Federal Prison and Ordered to Pay Restitution of More Than $491,000 after a Jury Convicted Them of Federal Charges Related to Foreclosure Prevention Fraud SchemeRead the Press Release
Greenbelt, Maryland – On December 3, 2018, U.S. District Judge Roger W. Titus sentenced Michelle Sylethia Jordan, a/k/a Michelle Harris and Michelle Welsh, age 49; and her husband, Michael Paul Anthony Welsh, a/k/a Michael A. Welsh and Michael Paul S. Welsh, age 45, both of Laurel, Maryland, to 57 months and 46 months in federal prison, respectively, each followed by three years of supervise release, on conspiracy and wire fraud charges in connection with a foreclosure prevention fraud scheme. Judge Titus sentenced co-conspirator, Carrol Antonio Jackson, a/k/a Jack Jackson, age 48, of Hinesville, Georgia, to time served, followed by nine months of home detention as part of three years of supervised release. Finally, Judge Titus ordered that each defendant pay restitution of $491,036.87. A federal jury convicted the three co-conspirators on June 20, 2018. After the verdict was announced, Judge Titus ordered that Jordan and Welsh be detained pending sentencing and they were immediately taken into custody.
The sentence was announced by United States Attorney for the District of Maryland Robert K. Hur; Acting Deputy Inspector General for Investigations Richard Parker of the Federal Housing Finance Agency Office of Inspector General (FHFA-OIG); Special Agent in Charge Bertrand Nelson of the U.S. Department of Housing and Urban Development Office of Inspector General (HUD-OIG); Postal Inspector in Charge Peter Rendina of the U.S. Postal Inspection Service - Washington Division; Chief Henry P. Stawinski of the Prince George’s County Police Department; Chief J. Thomas Manger of the Montgomery County Police Department; Sheriff Steve Sikes of the Liberty County, Georgia, Sheriff’s Office; and Vernon M. Keenan, Director of the Georgia Bureau of Investigation.
According to the evidence presented at their eight-day trial, Jordan was chief executive officer and director of MJ Loan Auditor Group, LLC (MJLAG), a limited liability company registered and doing business in Maryland. Welsh was president and chief executive officer of MJLAG. Jackson was the owner and manager of CJ Maxx Group LLC, a limited liability company doing business in Maryland, Virginia, and Georgia.
Trial evidence proved that from August 2012 until February 2017, Jordan and Welsh falsely told victim homeowners that, for a fee, MJLAG could help these homeowners modify their mortgage loans and prevent foreclosure of their homes. Jordan and Welsh falsely represented that MJLAG could help the homeowners get “free and clear” title to their homes, with no debt or liens against the property, and that MJLAG could obtain money from the homeowners’ lenders, typically by suing the lenders. Jordan and Welsh told homeowners that they needed to purchase one or more “audits” of the homeowners’ mortgage loans in order to uncover fraud and alleged illegal acts committed by the lenders, and that these “audits” could be used as evidence in lawsuits against the lenders and in negotiating for a loan modification.
Witnesses testified that as part of the scheme, Jordan and Welsh had homeowners sign a “contract fee agreement” setting out what fees would be charged for the “audit.” The contract fee agreement contained the seal of the National Association of Mortgage Underwriters (NAMU), even though the defendants and their companies had no current affiliation with NAMU. Jordan advised clients to submit baseless complaints about their lender to state and federal agencies, file frivolous lawsuits in local courts, and to stop paying their mortgages. Jordan further advised MJLAG clients whose homes already were in foreclosure proceedings to file for bankruptcy in order to delay the foreclosure proceedings and as part of the process to prevent foreclosure of the clients’ homes. Jordan assisted MJLAG clients in filing for bankruptcy, by preparing bankruptcy petitions and related documents and court filings.
The evidence proved that Jordan and Welsh paid Jackson to prepare fraudulent documents purporting to be “Forensic Audit Reports” and “Real Estate Securitization Audits” relating to loans for properties owned by MJLAG clients. The victim homeowners paid money to MJLAG with the expectation of receiving assistance with modifying their mortgage loans and preventing foreclosure of their homes.
United States Attorney Robert K. Hur commended the FHFA-OIG, HUD-OIG, U.S. Postal Inspection Service, Prince George’s County and Montgomery County Police Departments, Liberty County Sheriff’s Office SWAT Team, and the Georgia Bureau of Investigation for their work in the investigation, and recognized the Maryland Department of Labor, Licensing, and Regulations for its assistance. Mr. Hur thanked Assistant U.S. Attorneys Kristi N. O’Malley and Nicolas A. Mitchell, and Special Assistant United States Attorney Elizabeth Boison, who prosecuted the case.
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Four Defendants Charged in Panama Papers Investigation for Their Roles in Panamanian-Based Global Law Firm’s Decades-Long Scheme to Defraud the United StatesRead the Press Release
Four individuals have been charged in an indictment unsealed today in the Southern District of New York with wire fraud, tax fraud, money laundering and other offenses in connection with their alleged roles in a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (“Mossack Fonseca”), a Panamanian-based global law firm, and related entities.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Geoffrey S. Berman for the Southern District of New York, Chief Don Fort of IRS Criminal Investigation (IRS-CI), and Special Agent in Charge Angel M. Melendez of U.S. Immigrations and Customs Enforcement’s Homeland Security Investigations (HSI) New York made the announcement today.
Ramses Owens, 50, a Panamanian citizen; Dirk Brauer, 54, a German citizen; Richard Gaffey, 74, a U.S. citizen, of Medfield, Massachusetts; and Harald Joachim Von Der Goltz, 81, a German citizen, have been charged in an 11-count indictment. Owens, Gaffey and Von Der Goltz are charged with one count of conspiracy to commit tax evasion, one count of wire fraud, and one count of money laundering conspiracy. Owens and Brauer have been charged with one count of conspiracy to defraud the United States and one count of conspiracy to commit wire fraud. Gaffey and Von Der Goltz are additionally charged with four counts of willful failure to file an FBAR. Von Der Goltz has been additionally charged with two counts of making false statements.
Three of the four defendants named in the indictment have been arrested. Brauer, who worked as an investment manager for Mossfon Asset Management, S.A. (“Mossfon Asset Management”), an asset management company closely affiliated with Mossack Fonseca, was arrested in Paris, France, on Nov. 15. Von Der Goltz, a former U.S. resident and taxpayer, was arrested in London, United Kingdom, on Dec. 3. Gaffey, a U.S.-based accountant, was arrested in Boston, Massachusetts earlier today. Owens, a Panamanian attorney who worked for Mossack Fonseca, remains at large.
“Law firms, asset managers, and accountants play key roles enabling entry into the global financial system,” said Assistant Attorney General Benczkowski. “The charges announced today demonstrate our commitment to prosecute professionals who facilitate financial crime across international borders and the tax cheats who utilize their services.”
"As alleged, these defendants went to extraordinary lengths to circumvent U.S. tax laws in order to maintain their wealth and the wealth of their clients,” said Manhattan U.S. Attorney Berman. “For decades, the defendants, employees and a client of global law firm Mossack Fonseca allegedly shuffled millions of dollars through offshore accounts and created shell companies to hide fortunes. In fact, as alleged, they had a playbook to repatriate un-taxed money into the U.S. banking system. Now, their international tax scheme is over, and these defendants face years in prison for their crimes.”
“The unsealing of this indictment sends a clear message that IRS-CI is actively engaged in international tax enforcement, and more investigations are on the way,” said IRS-CI Chief Don Fort. “IRS-CI specializes in unraveling these intricate offshore tax schemes and following the money around the globe wherever it may lead. Cases like this help maintain the public’s confidence in our tax system by letting them know that we investigate and prosecute those who evade their tax obligation.”
“Today we announce the indictment of four individuals who allegedly defrauded the U.S. government through a large scale, intercontinental money laundering and wire fraud scheme, associated with Mossack Fonseca and its affiliates,” said HSI Special Agent-in-Charge Angel M. Melendez. “HSI’s El Dorado Task Force, together with the IRS, built a case that uncovered an alleged complex trail of offshore shell corporations and bogus foundations used to disguise the beneficial ownership of huge amounts of money. These efforts reflect the commitment of U.S. law enforcement to follow that trail and apprehend these criminals regardless of where they are in the world.”
According to the indictment, from at least in or about 2000 through in or about 2017, Owens and Brauer conspired with others to help U.S. taxpayer clients of Mossack Fonseca conceal assets and investments, and the income generated by those assets and investments, from the IRS through fraudulent, deceitful, and dishonest means. To conceal their clients’ assets and income from the IRS, Owens and Brauer allegedly worked to establish and manage opaque offshore trusts and undeclared bank accounts on behalf of U.S. taxpayers who were clients of Mossack Fonseca. Owens and Brauer allegedly marketed, created, and serviced sham foundations and shell companies formed under the laws of countries such as Panama, Hong Kong, and the British Virgin Islands, to conceal from the IRS and others the ownership by U.S. taxpayers of accounts established at overseas banks, as well as the income generated in those accounts. As structured by Mossack Fonseca, the sham foundations typically “owned” the shell companies that nominally held the undeclared assets on behalf of the U.S. taxpayer clients of Mossack Fonseca. The names of Mossack Fonseca’s clients generally did not appear anywhere on the incorporation paperwork for the sham foundations or related shell companies, although the clients in fact beneficially owned, and had complete access to, the assets of those sham entities and accounts.
In furtherance of the scheme, and in exchange for additional fees, Owens and Brauer allegedly provided support to clients who had purchased the sham foundations and related shell companies by providing corporate meeting minutes, resolutions, mail forwarding, and signature services. Moreover, Owens and Brauer are alleged to have purposefully established the bank accounts in locations with strict bank secrecy laws, which impeded the ability of the United States to obtain bank records for the accounts. Owens and Brauer also allegedly instructed U.S. taxpayer clients of Mossack Fonseca about how to repatriate funds to the United States from their offshore bank accounts in a manner designed to keep the undeclared bank accounts concealed. Among other things, Owens and Brauer instructed clients to use debit cards and fictitious sales to repatriate their funds covertly, the indictment alleges.
Von Der Goltz was allegedly one of Mossack Fonseca’s U.S. taxpayer clients. At all relevant times, Von Der Goltz was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts. U.S. citizens, resident aliens, and permanent legal residents with a foreign financial interest in or signatory authority over a foreign financial account worth more than $10,000 are required to file a Report of Foreign Bank and Financial Accounts, commonly known as an FBAR, disclosing the account. Von Der Goltz is alleged to have evaded his tax reporting obligations by setting up a series of shell companies and bank accounts, and hiding his beneficial ownership of the shell companies and bank accounts from the IRS. These shell companies and bank accounts allegedly made investments totaling tens of millions of dollars. According to the indictment, Von Der Goltz was assisted in this scheme by Owens and by Gaffey, a partner at a U.S.-based accounting firm. In furtherance of Von Der Goltz’s fraudulent scheme, Von Der Goltz, Gaffey, and Owens are alleged to have falsely claimed that Von Der Goltz’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and — unlike Von Der Goltz — was not a U.S. taxpayer.
As alleged in the indictment, Gaffey, in addition to assisting Von Der Goltz evade U.S. income taxes and reporting requirements, also worked closely with Owens to help another U.S. taxpayer client (“Client-1”) of Mossack Fonseca defraud the IRS. Client-1 allegedly maintained a series of offshore bank accounts, which Mossack Fonseca helped Client-1 conceal from the IRS for years. The indictment further alleges that, upon the advice of Owens and Gaffey, Client-1 covertly repatriated approximately $3 million of Client-1’s offshore money to the United States by falsely stating on Client-1’s federal tax return that the money represented proceeds from the sale of a company. After Client-1 repatriated approximately $3 million in this manner, approximately $1 million still remained in Client-1’s offshore account, the existence of which remained hidden from the IRS.
The charges in the indictment are merely allegations, and the defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The investigation was conducted by IRS-CI and HSI with significant assistance by the Justice Department’s Tax Division and the FBI. The Justice Department’s Office of International Affairs and law enforcement partners in France and the United Kingdom secured the arrests of the defendants located overseas.
This case is being prosecuted by Trial Attorneys Michael Parker and Parker Tobin of the Criminal Division’s Money Laundering and Asset Recovery Section of the Justice Department and Assistant U.S. Attorneys Sarah E. Paul, Nathan Rehn, Kristy Greenberg and Andrew Adams of the Manhattan U.S. Attorney’s Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit, with substantial support from previous co-counsel, Assistant U.S. Attorney Ann Marie Blaylock of the Western District of Kentucky.
Four Defendants Charged in Panama Papers InvestigationRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, Brian A. Benczkowski, Assistant Attorney General of the Criminal Division of the U.S. Department of Justice, Don Fort, Chief, Internal Revenue Service-Criminal Investigation (“IRS-CI”), and Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), announced today the unsealing of an indictment charging RAMSES OWENS, DIRK BRAUER, RICHARD GAFFEY, and HARALD JOACHIM VON DER GOLTZ, with wire fraud, tax fraud, money laundering, and other offenses in connection with their roles in a decades-long criminal scheme perpetrated by Mossack Fonseca & Co. (“Mossack Fonseca”), a Panamanian-based global law firm, and related entities.
Three of the four defendants named in the indictment have been arrested. BRAUER, who worked as an investment manager for Mossfon Asset Management, S.A., an asset management company closely affiliated with Mossack Fonseca, was arrested in Paris, France, on November 15, 2018. VON DER GOLTZ, a former U.S. resident and taxpayer, was arrested in London, United Kingdom, on December 3, 2018. GAFFEY, a U.S.-based accountant, was arrested in Medfield, Massachusetts, this morning. OWENS, a Panamanian attorney who worked for Mossack Fonseca, remains at large.
Manhattan U.S. Attorney Geoffrey S. Berman said: “As alleged, these defendants went to extraordinary lengths to circumvent U.S. tax laws in order to maintain their wealth and the wealth of their clients. For decades, the defendants, employees and a client of global law firm Mossack Fonseca, allegedly shuffled millions of dollars through off-shore accounts and created shell companies to hide fortunes. In fact, as alleged, they had a playbook to repatriate un-taxed money into the U.S. banking system. Now, their international tax scheme is over, and these defendants face years in prison for their crimes.”
AAG Brian A. Benczkowski said: “Law firms, asset managers, and accountants play key roles enabling entry into the global financial system. The charges announced today demonstrate our commitment to prosecute professionals who facilitate financial crimes across international borders and the tax cheats who utilize their services.”
IRS-CI Chief Don Fort said: “The unsealing of this indictment sends a clear message that IRS-CI is actively engaged in international tax enforcement, and more investigations are on the way. IRS-CI specializes in unraveling these intricate offshore tax schemes and following the money around the globe wherever it may lead. Cases like this help maintain the public’s confidence in our tax system by letting them know that we investigate and prosecute those who evade their tax obligation.”
HSI Special Agent-in-Charge Angel M. Melendez said: “Today we announce the indictment of four individuals who allegedly defrauded the U.S. government through a large scale, intercontinental money laundering and wire fraud scheme, associated with Mossack Fonseca and its affiliates. HSI’s El Dorado Task Force, together with the IRS, built a case that uncovered an alleged complex trail of offshore shell corporations and bogus foundations used to disguise the beneficial ownership of huge amounts of money. These efforts reflect the commitment of U.S. law enforcement to follow that trail and apprehend these criminal regardless where they are in the world.”
According to the Indictment, which was unsealed today in Manhattan federal court[1]:
From 2000 through 2017, OWENS and BRAUER conspired with others to help U.S. taxpayer clients of Mossack Fonseca conceal assets and investments, and the income generated by those assets and investments, from the IRS through fraudulent, deceitful, and dishonest means. To conceal their clients’ assets and income from the IRS, OWENS and BRAUER worked to establish and manage opaque offshore trusts and undeclared bank accounts on behalf of U.S. taxpayers who were clients of Mossack Fonseca. OWENS and BRAUER marketed, created, and serviced sham foundations and shell companies formed under the laws of countries such as Panama, Hong Kong, and the British Virgin Islands, to conceal from the IRS and others the ownership by U.S. taxpayers of accounts established at overseas banks, as well as the income generated in those accounts. As structured by Mossack Fonseca, the sham foundations typically “owned” the shell companies that nominally held the undeclared assets on behalf of the U.S. taxpayer clients of Mossack Fonseca. The names of Mossack Fonseca’s clients generally did not appear anywhere on the incorporation paperwork for the sham foundations or related shell companies, although the clients in fact beneficially owned, and had complete access to, the assets of those sham entities and accounts.
In furtherance of the scheme, and in exchange for additional fees, OWENS and BRAUER provided support to clients who had purchased the sham foundations and related shell companies by providing corporate meeting minutes, resolutions, mail forwarding, and signature services. Moreover, OWENS and BRAUER purposefully established the bank accounts in locations with strict bank secrecy laws, which impeded the ability of the United States to obtain bank records for the accounts. OWENS and BRAUER also instructed U.S. taxpayer clients of Mossack Fonseca about how to repatriate funds to the United States from their offshore bank accounts in a manner designed to keep the undeclared bank accounts concealed. Among other things, OWENS and BRAUER instructed clients to use debit cards and fictitious sales to repatriate their funds covertly.
VON DER GOLTZ was one of Mossack Fonseca’s U.S. taxpayer clients. At all relevant times, VON DER GOLTZ was a U.S. resident and was subject to U.S. tax laws, which required him to report and pay income tax on worldwide income, including income and capital gains generated in domestic and foreign bank accounts. VON DER GOLTZ evaded his tax reporting obligations by setting up a series of shell companies and bank accounts, and hiding his beneficial ownership of the shell companies and bank accounts from the IRS. These shell companies and bank accounts made investments totaling tens of millions of dollars. VON DER GOLTZ was assisted in this scheme by OWENS and by GAFFEY, a partner at a U.S.-based accounting firm. In furtherance of VON DER GOLTZ’s fraudulent scheme, VON DER GOLTZ, GAFFEY, and OWENS falsely claimed that VON DER GOLTZ’s elderly mother was the sole beneficial owner of the shell companies and bank accounts at issue because, at all relevant times, she was a Guatemalan citizen and resident, and – unlike VON DER GOLTZ – was not a U.S. taxpayer.
GAFFEY, in addition to assisting VON DER GOLTZ evade U.S. income taxes and reporting requirements, also worked closely with OWENS to help another U.S. taxpayer client (“Client-1”) of Mossack Fonseca defraud the IRS. Client-1 maintained a series of offshore bank accounts, which Mossack Fonseca helped Client-1 conceal from the IRS for years. The indictment further alleges that upon the advice of OWENS and GAFFEY, Client-1 covertly repatriated approximately $3 million of Client-1’s offshore money to the United States by falsely stating on Client-1’s federal tax return that the money represented proceeds from the sale of a company. After Client-1 repatriated approximately $3 million in this manner, approximately $1 million still remained in Client-1’s offshore account, the existence of which remained hidden from the IRS.
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A chart outlining the charges against each defendant is below. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencings of the defendants will be determined by the judge. The charges in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
COUNT
DEFENDANT
AGE & CITIZENSHIP
MAXIMUM SENTENCE
Count One: Conspiracy to Defraud the United States
18 U.S.C. § 371
RAMSES OWENS
DIRK BRAUER
50, Panamanian Citizen
54, German Citizen
Five years in prison
Count Two: Conspiracy to Commit Wire Fraud
18 U.S.C. § 1349
RAMSES OWENS
DIRK BRAUER
50, Panamanian Citizen
54, German Citizen
20 years in prison
Count Three: Conspiracy to Commit Tax Evasion
18 U.S.C. § 371
RAMSES OWENS
RICHARD GAFFEY
HARALD JOACHIM VON DER GOLTZ
50, Panamanian Citizen
74, U.S. Citizen
81, German Citizen
Five years in prison
Count Four: Wire Fraud
18 U.S.C. § 1343
RAMSES OWENS
RICHARD GAFFEY
HARALD JOACHIM VON DER GOLTZ
50, Panamanian Citizen
74, U.S. Citizen
81, German Citizen
20 years in prison
Count Five: Money Laundering Conspiracy
18 U.S.C. § 1956
RAMSES OWENS
RICHARD GAFFEY
HARALD JOACHIM VON DER GOLTZ
50, Panamanian Citizen
74, U.S. Citizen
81, German Citizen
20 years in prison
Counts Six-Nine: Willful Failure to File an FBAR
31 U.S.C. §§ 5314 & 5322(a)
RICHARD GAFFEY
HARALD JOACHIM VON DER GOLTZ
74, U.S. Citizen
81, German Citizen
10 years in prison for each count
Counts Ten-Eleven: False Statements
18 U.S.C. § 1001
HARALD JOACHIM VON DER GOLTZ
81, German Citizen
Five years in prison for each count
Mr. Berman praised the outstanding investigative work of IRS-CI and HSI, and thanked the Justice Department’s Tax Division and the Federal Bureau of Investigation for their significant assistance in the investigation. Mr. Berman also thanked the U.S. Justice Department’s Office of International Affairs and law enforcement partners in France and the United Kingdom for their assistance in securing the arrests of the defendants located overseas.
This case is being handled by the Office’s Complex Frauds and Cybercrime Unit and Money Laundering and Transnational Criminal Enterprises Unit, working in partnership with the Money Laundering and Asset Recovery Section of the Criminal Division. Assistant United States Attorneys Sarah E. Paul, Thane Rehn, Kristy Greenberg, and Andrew Adams, along with Trial Attorneys Michael Parker and Parker Tobin of the Money Laundering and Asset Recovery Section, are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Four Bemidji Residents Sentenced for Their Roles in Home Invasion on Red Lake ReservationRead the Press Release
United States Attorney Erica H. MacDonald today announced the sentencing of DEREK JON PADDY, 22, KEVIN ROBERTSON, 32, CHERAI MICHELLE CLARK, 26, and SHANISE FRANCES OSTLUND, 29, for their roles in a burglary on the Red Lake Reservation in the early morning hours of November 24, 2017.
PADDY was sentenced to 29 months imprisonment, ROBERTSON was sentenced to 51 months imprisonment, CLARK was sentenced to 21 months imprisonment, and OSTLUND was sentenced to 3 years probation. Judge Susan Richard Nelson sentenced the defendants on December 3, 2018, in U.S. District Court, in Duluth, Minnesota.
OSTLUND and ROBERTSON were found guilty of burglary in the second degree and of robbery, following a jury trial, before on Judge Susan Richard Nelson in U.S. District Court in Duluth, Minnesota, on September 12, 2018. PADDY and CLARK each pleaded guilty to one count of burglary in the second degree, on August 31, 2018 and September 10, 2018, respectively, before Judge Susan Richard Nelson.
United States Attorney MacDonald said, “Defendants Paddy and Robertson are repeat violent offenders, who chose to continue to commit crime. My office and our law enforcement partners are committed to ensuring all communities have the opportunity to be safe.”
As proven at trial, in the early morning hours of November 24, 2017, following a brawl at a local Walmart store, OSTLUND, ROBERTSON, PADDY and CLARK drove together to the victim’s residence with intentions to confront the victim and steal their property. When the defendants arrived, PADDY and CLARK kicked in the front door and entered the residence along with OSTLUND and ROBERTSON. The defendants expected to find the victim inside the residence; however, the victim escaped by jumping out of a window. The defendants stole various items from the residence before leaving the property.
This case is the result of an investigation conducted by the FBI Headwaters Safe Trails Task Force, the Red Lake Police Department and the Bemidji Police Department.
Assistant U.S. Attorney Deidre A. Aanstad and former Assistant U.S. Attorney Clifford B. Wardlaw tried the case.
Defendant Information:
Derek Jon Paddy, 22
Bemidji, Minn.
Convicted:
- Burglary in the second degree, 1 count
Sentenced:
- 29 months imprisonment
- 3 years supervised release
Kevin Robertson, 32
Bemidji, Minn.
Convicted:
- Burglary in the second degree, 1 count
- Robbery, 1 count
Sentenced:
- 51 months imprisonment
- 3 years supervised release
Cherai Michelle Clark, 26
Bemidji, Minn.
Convicted:
- Burglary in the second degree, 1 count
Sentenced:
- 21 months imprisonment
- 3 years supervised release
Shanise Frances Ostlund, 29
Bemidji, Minn.
Convicted:
- Burglary in the second degree, 1 count
- Robbery, 1 count
Sentenced:
- 3 years probation
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Fort Thompson Woman Charged with Conspiracy to Distribute a Controlled SubstanceRead the Press Release
United States Attorney Ron Parsons announced that a Fort Thompson, South Dakota, woman has been indicted by a federal grand jury for Conspiracy to Distribute a Controlled Substance.
Brooke Kristen Shields, age 32, was indicted on November 14, 2018. She appeared before U.S. Magistrate Judge Mark A. Moreno on November 29, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a minimum of 10 years in federal prison and/or a $20,000,000 fine, at least 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that beginning no later than January 1, 2017, and continuing through the date the Indictment was filed, Shields knowingly and intentionally distributed and possessed with the intent to distribute 500 grams or more of methamphetamine.
The charge is merely an accusation and Shields 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 Cook is prosecuting the case.
Shields was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Fort Lauderdale Broker Sentenced to More than Six Years in Prison for $16 Million Precious Metals and Securities Fraud SchemeRead the Press Release
Ariana Fajardo Orshan, U.S. Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office and Michael J. De Palma, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI) announced that Salvatore Colonna, 69, of Fort Lauderdale, was sentenced on November 30, 2018, to 78 months in prison for his role in a $16 million precious metals and securities fraud scheme and ordered to pay approximately $13 million in restitution.
According to court record, including the plea documents, from January 2010, through October 2013, the defendant worked as a broker for Liberty International Financial Services and related entities (together, “Liberty”) in Fort Lauderdale, Florida. During that period, Colonna agreed on a scheme with other co-conspirators to obtain money from investors by means of materially false and fraudulent pretenses, including (a) that investors’ money would be used to buy precious metals; (b) that investors would receive substantial dividends on Liberty investments; and (c) that the defendant would only take a five to fifteen percent commission on investments. In truth and in fact, as the defendant knew, Liberty was not using investor money to buy precious metals, Liberty investments would not pay substantial dividends, and Colonna knowingly took commissions on investors’ monies as high as forty percent.
According to the plea documents and statements at sentencing, from January 2010, through October 2013, investors sent over $16 million in funds to Liberty. Liberty returned only around $3 million to investors. A substantial percentage of the money was used to pay the founders of Liberty and Colonna received approximately $2.4 million in victims’ funds.
U.S. Attorney Fajardo Orshan commended the investigative efforts of the FBI and IRS-CI in this matter. The case was prosecuted by Assistant U.S. Attorney Michael N. Berger.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Former Washington University Official Admits to Embezzling from Medical SchoolRead the Press Release
St. Louis, MO – Barbara “Basia” Skudrzyk, a/k/a Barbara “Basia” Najarro, 38, of St. Louis, pleaded guilty to three counts of mail fraud.
Skudrzyk was employed as the Business Director for the Division of Medical Education at Washington University. According to the plea agreement, beginning in May 2010 and continuing through July 31, 2018, Skudrzyk defrauded Washington University in St. Louis, Missouri of in excess of approximately $300,000 through various means. On many occasions, Skudrzyk hired contractors and other service providers to perform personal services for her benefit, and at her personal residence. She would then create, submit and approve false invoices and false W-9 tax forms for these contractors and other service providers to make it appear as if they had performed work for the Division of Medical Education when they had not. Skudrzyk approved and processed payment to these contractors and other service providers from Washington University’s funds. These service providers included a moving company, a home cleaning service, a divorce law firm, residential painters and construction companies, a jewelry boutique, a babysitter, and various other vendors and contractors. Further, Skudrzyk purchased VISA gift cards at the Washington University bookstore, forging another Washington University employee’s signature on the receipts and charging the purchases to the Division of Medical Education. Skudrzyk then used the VISA gift cards for her own personal use, including for purchases at restaurants, a jewelry store, and a number of other retailers. Additionally, Skudrzyk falsified and changed invoices from two different travel companies for airline flights for herself and her family to such places as Krakow, Poland, Munich, Germany, Bangkok, Thailand, Toronto, Canada, West Palm Beach, Florida, New York City, and Dallas and San Antonio, Texas. Skudrzyk submitted, processed and approved these falsified invoices in order to get Washington University to pay for the personal trips.
Judge Sippel accepted Skudrzyk’s plea and deferred sentencing until March 8, 2019. The maximum penalty for mail fraud is 20 years in prison and a $250,000 fine. Restitution to the victim is also mandatory. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case is being investigated by the Postal Inspection Service and the Federal Bureau of Investigation with the assistance and cooperation of Washington University. Assistant U.S. Attorney Hal Goldsmith is handling the case for the U.S. Attorney’s Office.
Former Orleans Parish Sheriff’s Office Employee Pleads GuiltyRead the Press Release
NEW ORLEANS – U.S. Attorney Peter G. Strasser announced that CIBONEY PARKER, age 25, of New Orleans, pleaded guilty today before United States District Judge Nannette Jolivette Brown, to charges relating to an attempt to introduce controlled substances into the Orleans Justice Center.
According to court documents, Elton Williams, an inmate at the Orleans Justice Center jail, solicited the assistance of his relative, CIBONEY PARKER (a civilian employee of the Orleans Parish Sheriff’s Office), and two friends, Brittany Theophile and Rachelle Kelson, to smuggle drugs into the jail. Theophile and Kelson provided the drugs, including marijuana, heroin, and Tramadol, to PARKER during her work shift. The Orleans Parish Sheriff’s Office Intelligence Division became aware of the plan through audio and visual surveillance and detained PARKER before she could gain access to Williams. Williams, Theophile, and Kelson pleaded guilty and await sentencing.
PARKER faces a maximum term of imprisonment of five (5) years, a $250,000 fine and, upon release from imprisonment, will serve a three (3) year term of supervised release. Sentencing before Judge Brown is scheduled for March 7, 2019.
U.S. Attorney Peter Strasser praised the work of the FBI and the Orleans Parish Sheriff’s Office Investigative Service Bureau. Assistant United States Attorney Tracey Knight is in charge of this prosecution.
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Former Bank Manager Who Embezzled $879K from CD Accounts is SentencedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that STEPHEN CARBONELLA, 60, of Hamden, was sentenced today by U.S. District Judge Robert N. Chatigny in Hartford to 21 months of imprisonment, followed by three years of supervised release, for embezzling funds from Webster Bank Corporation, where he served as bank manager of the Orange branch office. Judge Chatigny also ordered Carbonella to serve the first six months of his supervised release in home confinement.
According to court documents and statements made in court, between approximately 2003 and 2017, Carbonella withdrew $879,016.48 from approximately 20 account holders’ certificate of deposit (CD) accounts at Webster Bank, without the knowledge or consent of the account holders, and used the embezzled funds for his own purposes. He also took steps to conceal his misconduct, including by forging signatures and falsifying documents.
Judge Chatigny ordered Carbonella to pay full restitution.
On September 12, 2018, Carbonella pleaded guilty to one count of embezzlement by a bank officer or employee.
Carbonella, who is released on a $200,000 bond, is required to report to prison on January 29, 2019.
This matter was investigated by the Federal Bureau of Investigation and was prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Florida Woman Sentenced to Two Years of Probation for Credit Card Fraud OffensesRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Zulairam Ramos, 31, of Orlando, Florida, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to two years of probation with 120 hours of community service for access device fraud and conspiracy to commit access device fraud. Ramos pleaded guilty on January 3.
Court records show that between October 2016 and March 2017, Ramos and three co-defendants used stolen credit and debit card numbers belonging to Maine residents to fraudulently purchase merchandise and gift cards at Maine stores.
Ramos’s co-defendants were sentenced on September 5. Alejandro Caal was sentenced to 10 months in prison, Adrian Teruel was sentenced to 12 months, and Olga Valido was sentenced to nine months. The defendants were also ordered to serve three years of supervised release upon their release from prison.
The case was investigated by the Falmouth, Augusta, Scarborough, South Portland and Winthrop Police Departments, the Cumberland County Sheriff’s Office, and the U.S. Secret Service.
Florida Home Health Services Company Owner and Co-Conspirator Plead Guilty for Roles in $8.6 Million Health Care Fraud SchemeRead the Press Release
Two Miami, Florida residents pleaded guilty today to health care fraud charges for their roles in an $8.6 million health care fraud scheme.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Miami Air and Marine Branch Director Martin G. Wade of the U.S. Customs and Border Protection (CBP) Air and Marine Operations made the announcement.
Alexander Ros Lazo, 54, an owner and operator of T.L.C. Health Services Inc., a home health agency, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Jose E. Martinez of the Southern District of Florida. Misleidy Ibarra, 46, also of Miami, a licensed massage therapist, pleaded guilty before Judge Martinez to one count of conspiracy to commit health care fraud. Sentencing has been scheduled for Feb. 5, 2019 before Judge Martinez.
As part of his guilty plea, Ros Lazo admitted that he paid kickbacks and bribes to his co-conspirators in exchange for home health services prescriptions and the referral of Medicare beneficiaries to T.L.C. Health Services, a company based in Miami. He further admitted that he and his co-defendant, Misleidy Ibarra, agreed with their co-conspirators to commit health care fraud by arranging for Ibarra to render therapy services on behalf of licensed therapists despite the fact that they knew she was not licensed to render the physical and occupational therapy services to the Medicare beneficiaries and billed Medicare for those services. As part of her guilty plea, Ibarra admitted to conspiring with Ros Lazo to commit health care fraud by rendering physical therapy services to Medicare beneficiaries when Ibarra was not licensed to provide these services. Ros Lazo admitted that as a result of the fraudulent claims, Medicare paid $8.6 million in benefits that it otherwise would not have. Ros Lazo was charged along with Ibarra in an indictment returned on June 21, 2018.
The case was investigated by the FBI, HHS-OIG and CBP Air and Marine Operations. Trial Attorney Alexander Kramer of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Yisel Valdes of the Southern District of Florida 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.
Florida Home Health Services Company Owner and Co-Conspirator Plead Guilty for Roles in $8.6 Million Health Care Fraud SchemeRead the Press Release
Two Miami, Florida residents pleaded guilty today to health care fraud charges for their roles in an $8.6 million health care fraud scheme.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office, Special Agent in Charge Shimon R. Richmond of the Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office and Miami Air and Marine Branch Director Martin G. Wade of the U.S. Customs and Border Protection (CBP) Air and Marine Operations made the announcement.
Alexander Ros Lazo, 54, an owner and operator of T.L.C. Health Services Inc., a home health agency, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge Jose E. Martinez of the Southern District of Florida. Misleidy Ibarra, 46, also of Miami, a licensed massage therapist, pleaded guilty before Judge Martinez to one count of conspiracy to commit health care fraud. Sentencing has been scheduled for Feb. 5, 2019 before Judge Martinez.
As part of his guilty plea, Ros Lazo admitted that he paid kickbacks and bribes to his co-conspirators in exchange for home health services prescriptions and the referral of Medicare beneficiaries to T.L.C. Health Services, a company based in Miami. He further admitted that he and his co-defendant, Misleidy Ibarra, agreed with their co-conspirators to commit health care fraud by arranging for Ibarra to render therapy services on behalf of licensed therapists despite the fact that they knew she was not licensed to render the physical and occupational therapy services to the Medicare beneficiaries and billed Medicare for those services. As part of her guilty plea, Ibarra admitted to conspiring with Ros Lazo to commit health care fraud by rendering physical therapy services to Medicare beneficiaries when Ibarra was not licensed to provide these services. Ros Lazo admitted that as a result of the fraudulent claims, Medicare paid $8.6 million in benefits that it otherwise would not have. Ros Lazo was charged along with Ibarra in an indictment returned on June 21, 2018.
The case was investigated by the FBI, HHS-OIG and CBP Air and Marine Operations. Assistant U.S. Attorney Yisel Valdes of the Southern District of Florida and Trial Attorney Alexander Kramer 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.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Felon Convicted After Federal Trial of Committing Three Armed Robberies in Less Than One HourRead the Press Release
Greenbelt, Maryland – A federal jury convicted James Lorenzo Thomas, Jr., age 32, of Oxon Hill, Maryland, for three counts of armed commercial robbery, three counts of brandishing a firearm during a crime of violence, and one count of being a felon in possession of a firearm. The jury’s verdict was returned on December 3, 2018.
The conviction was announced by United States Attorney for the District of Maryland Robert K. Hur; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; and Chief Henry P. Stawinski III of the Prince George’s County Police Department.
According to evidence presented at his four-day trial, in less than one hour on April 6, 2017, Thomas and a co-defendant robbed businesses in Camp Springs, Clinton, and District Heights, Maryland. In each robbery the defendants brandished a firearm. In the first two robberies Thomas and his co-defendant stole cash from the business, and in one robbery also took a victim’s cell phone. At the location of their last robbery, a game store, Thomas and his co-defendant stole PS4s, virtual reality headsets, and an Xbox – one of which had a GPS tracker that led the police to the robbers less than 20 minutes after they left the store. The police found Thomas and his co-defendant in the getaway car, surrounded by game consoles and dividing up the cash from the robberies. The gun used in the robberies was also recovered.
During the trial, Thomas also attempted to intimidate a witness to prevent the witness from testifying at trial. As a result, the witness initially would not answer the prosecutor’s questions. After a short recess, the witness did testify. A Deputy U.S. Marshal, who heard the attempted intimidation, subsequently testified at the trial as to what the defendant said to the witness.
Thomas faces a maximum of 20 years in prison for each of the three counts of robbery. He also faces a maximum of life in prison and a minimum mandatory sentence of seven years in prison for the first count, and 25 years in prison for each of the two additional counts of brandishing a firearm in relation to a crime of violence, all consecutive to any other sentence imposed. Finally, Thomas faces a maximum of 10 years in prison for being a felon in possession of a firearm. U.S. District Judge Paula Xinis has scheduled sentencing for February 28, 2019, at 1:00 p.m.
Co-defendant Nathan Sergio Latimore, age 33, of Camp Springs, Maryland, previously pleaded guilty to five robberies, including the three he committed with Thomas. Judge Xinis has scheduled sentencing for Latimore on December 10, 2018, at 10:00 a.m.
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 U.S. 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 the local community to develop effective, locally based strategies to reduce violent crime.
United States Attorney Robert K. Hur commended the FBI Cross Border Task Force and the Prince George’s County Police Department for their work in the investigation. Mr. Hur thanked Assistant U.S. Attorneys Timothy F. Hagan, Jr. and Elizabeth G. Wright, who are prosecuting the case.
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Federal Inmate Pleads to Weapon ChargeRead the Press Release
BLUEFIELD, W.Va. – United States Attorney Mike Stuart announced today that a federal inmate pled guilty to a weapon charge. Colin Threadgill, 27, an inmate at the Federal Correctional Institution (FCI) at McDowell, pled guilty to possessing a handcrafted weapon known as a “shank” at the prison on August 10. A staff member at the prison observed Threadgill in possession of the weapon and recovered it from him. Threadgill faces up to five years in prison when he is sentenced on April 2, 2019.
“Another shank,” said United States Attorney Mike Stuart. “Another federal inmate must want to extend his stay at an FCI.”
The case was investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File is handling the prosecution. United States Magistrate Judge Omar Aboulhosn presided at the plea hearing.
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Fayetteville Man Sentenced to over 7 Years in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Duane (DAK) Kees, United States Attorney for the Western District of Arkansas, announced that Leander Shepard, age 60, of Fayetteville, Arkansas was sentenced today to 87 months in federal prison followed by four years of supervised release on one count of Possession with Intent to Distribute Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to court records, In early 2018, detectives with the 4th Judicial Drug Task Force (hereinafter “D.T.F.”) were contacted and advised of a person in California that was requesting an address in Fayetteville, Arkansas to ship a significant quantity of methamphetamine. On March 6, 2018, D.T.F. detectives located a known vacant residence in Fayetteville (hereinafter “the residence”). On March 8, 2018, the D.T.F. was informed that the California contact had sent a package containing drugs overnight via U.S. Mail to the residence with a projected delivery of 10:00am on March 9.
On March 9, 2018, D.T.F. detectives conducted surveillance of the residence. At approximately 10:00 am, a vehicle driven by Shepard arrived in front of the residence and parked nearby. At 10:40 am, a U.S. Mail postal carrier arrived in front of the residence and exited his vehicle with a package. Detectives observed Shepard approach the postal carrier in an attempt to retrieve the package. The postal carrier advised Shepard that he needed to place the package on the porch. Once on the porch, Shepard picked up the package and was confronted by D.T.F. detectives. The package was found to contain approximately one pound of methamphetamine and five pounds of marijuana.
The suspected methamphetamine was sent to the Arkansas State Crime Lab were it was tested and determined to contain actual methamphetamine.
A federal grand jury indicted Shepard in April 2018, and he pled guilty in August 2018.
This case was investigated by the 4th Judicial Drug Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
CONTACT: Charlie Robbins
PHONE: (479) 494-4086
TWITTER: @WDARnews
Eighteen “Bird Gang” Members and Associates Indicted for Drug Trafficking and Firearms Violations in Hillsborough CountyRead the Press Release
Tampa, Florida – United States Attorney Maria Chapa Lopez announces the culmination of a long-term investigation of a violent and drug trafficking organization known as the “Bird Gang,” operating primarily in Tampa. As a result, 18 individuals have been charged with various federal firearms and drug offenses. (Please see chart for details). The indictments also notify the defendants that the United States intends to forfeit firearms, cash, and a vehicle, as well as any other property derived from or used in these offenses.
“The charges brought today are another example of our resolve to reduce violent crime in our communities,” said U.S. Attorney Maria Chapa Lopez. “Today’s actions reflect the continuous hard work of our Project Safe Neighborhoods Tampa Bay Task Force partners.”
“The arrests today send a clear message that violent gangs will not be tolerated in our communities. The FBI, with our federal, state, and local law enforcement partners will continue to work together to rid our communities of drugs and violence,” said Eric W. Sporre Special Agent in Charge of the FBI Tampa Field Office.
“Our city is safer today as a result of these arrests and it will continue to be safer in the future as a result of the partnership between our law enforcement agencies,’’ said Tampa Police Chief Brian Dugan. “This year-long operation sends a clear message that we and our partners will not rest until violent gangs are brought to justice.”
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This investigation arose out of a partnership between the United States Attorney’s Office, the Federal Bureau of Investigation, the Tampa Police Department, the Florida Department of Law Enforcement, and the Drug Enforcement Administration. The cases will be prosecuted by the Assistant United States Attorneys Natalie Hirt Adams and Taylor G. Stout.
These cases were brought as part of Project Safe Neighborhoods (PSN), a program that has been successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. In the Middle District of Florida, U.S. Attorney Maria Chapa Lopez coordinates PSN efforts in cooperation with various federal, state, and local law enforcement officials.
This investigation is also the result of the Organized Crime Drug Enforcement Task Forces (OCDETF) program. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
OPERATION BLUE CAST SUMMARY CHART
Name
(Age, Residence)
Charges
Maximum Penalties
Allen Brown
(39, Wimauma)
a/k/a “Jerusalem,”
a/k/a “Shawn,”
a/k/a “Deshon”
- Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine, crack cocaine, heroin, fentanyl, and oxycodone;
- Possessing a firearm and ammunition as a convicted felon.
- Maximum term of 40 years in federal prison;
- Minimum mandatory term of 15 years, and up to life in federal prison.
Edwin Carlon
(24, Ruskin)
Conspiring to manufacture, distribute, and possess with the intent to distribute crack cocaine, cocaine, heroin, fentanyl, and oxycodone.
Maximum term of 20 years in federal prison.
Jetavious Gaynor
(48, Tampa)
a/k/a “Cool,”
a/k/a “Breeze”
Conspiring to manufacture, distribute, and possess with the intent to distribute crack cocaine and 500 grams or more of cocaine.
Minimum mandatory term of 5 years, and up to 40 years in federal prison.
David Jerome Green, Jr.
(36, Tampa)
a/k/a “Woodrow”
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 40 years in federal prison.
Malcolm Rontavis Griffin
(26, Tampa)
a/k/a “Chris”
- Distributing cocaine;
- Conspiring to distribute, and possess with the intent to distribute crack cocaine;
- Distributing crack cocaine.
Maximum term of 40 years in federal prison, per count.
Marvin Grooms
(33, Tampa)
- Conspiring to manufacture, distribute, and possess with the intent to distribute crack cocaine, cocaine, heroin, fentanyl, and oxycodone;
- Distributing heroin.
Maximum term of 40 years in prison, per count.
Cornelius Jones
(26, Tampa)
a/k/a “CJ”
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and 28 grams or more of crack cocaine.
Mandatory minimum term of 10 years, and up to life in federal prison.
Tyre Derel Jones
(25, Tampa)
a/k/a “Re-Dub,”
a/k/a “Fat Twin,”
a/k/a “Twerk”
- Conspiring to distribute, and possess with the intent to distribute crack cocaine;
- Distributing crack cocaine.
Maximum term of 40 years in prison, per count.
Lorenzo Knight
(32, Tampa)
a/k/a “Lo,”
a/k/a “Black”
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 40 years in federal prison.
Jerrod Lee
(38, Tampa)
a/k/a “Jig,”
a/k/a “Mexico”
- Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine, crack cocaine, heroin, fentanyl, and oxycodone;
- Distributing heroin;
- Distributing 10 grams or more of fentanyl (two counts).
- Maximum term of 40 years in federal prison.
- Maximum term of 40 years in federal prison;
- Minimum mandatory term of 10 years, and up to life in federal prison, per count.
Sheldon Lillie
(36, Tampa)
a/k/a “Skeet,”
a/k/a “Boogie”
Conspiring to manufacture, distribute, and possess with the intent to distribute 28 grams or more of crack cocaine and 500 grams or more of cocaine.
Mandatory minimum term of life in federal prison.
Ariscio Morgan
(43, Tampa)
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 40 years in federal prison.
Bernard Pendleton
(47, Tampa)
a/k/a “Nard”
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 40 years in federal prison.
Deandre Perry
(37, Tampa)
a/k/a “Dee”
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 40 years in federal prison.
Timmy Ramsey
(40, Brandon)
- Conspiring to manufacture, distribute, and possess with the intent to distribute crack cocaine, cocaine, heroin, fentanyl, and oxycodone;
- Possessing a firearm as a convicted felon.
- Maximum term of 40 years in federal prison;
- Maximum term of 10 years in federal prison.
Anthony Reed, Jr.
(40, Tampa)
a/k/a “Packy”
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 40 years in federal prison.
Wandra Reynolds
(56, Tampa)
Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine and crack cocaine.
Maximum term of 20 years in federal prison.
James Haskell Stephens, IV
(42, Wesley Chapel)
a/k/a “Jamie”
- Conspiring to manufacture, distribute, and possess with the intent to distribute cocaine, crack cocaine, heroin, fentanyl, and oxycodone;
- Possessing a firearm and ammunition as a convicted felon.
- Maximum term of 40 years in federal prison;
- Maximum term of 10 years in federal prison.
Des Moines Residents Sentenced for Felony Federal Food, Drug, and Cosmetic Act OffenseRead the Press Release
DES MOINES, IA – On Wednesday, November 28, 2018, United States District Court Judge Rebecca Goodgame Ebinger sentenced Des Moines residents, Scott William Twaddle, age 51, to 12 months and one day in prison, and Jana Marie Harmon Twaddle, age 52, to three years of probation with two months of home detention for Dispensing Prescription Drugs Without a Valid Prescription While Held for Sale, announced United States Attorney Marc Krickbaum. Scott Twaddle was ordered to serve one year of supervised release following his imprisonment and pay a $10,000 fine. Both defendants forfeited $200,000 in U.S. currency seized from their residence during the investigation and were ordered to pay $100 to the Crime Victims’ Fund.
According to the plea agreements entered on July 25, 2018, the Twaddles admitted that from about October 2014 to December 7, 2016, with the intent to defraud and mislead state and federal regulators, the Twaddles sold certain injectable Vitamin B12 prescription drugs to end users through websites, including www.medsupplystore.net. The Twaddles sold these prescription drugs, which were also “unapproved new drugs” without first obtaining prescriptions from the end user. Previously, in June 2014, the United States Food and Drug Administration (“FDA”) and the Iowa Board of Pharmacy conducted an on-site inspection of Medical Supply Liquidators LLC, a warehouse and distributor of prescription drugs including various assortments of injectable Vitamin B12, operated by the Twaddles in the Des Moines area. At that time, the Twaddles dispensed prescription drugs without any valid prescriptions to end users via www.medicalsupplyliquidators.com. In June 2014, the FDA inspection team specifically informed the Twaddles that their distribution of prescription drugs without first receiving proof of a prescription from the customer violated federal law.
“Illegally dispensing prescription drugs can put consumers’ health at risk,” said Charles L. Grinstead, Acting Special Agent in Charge, FDA Office of Criminal Investigations’ Kansas City Field Office. “We will continue to pursue and bring to justice those who jeopardize U.S. consumers’ health and safety.”
“It is our sincere desire that this prosecution and the resulting sentences will serve as a deterrent to anyone who may be tempted to violate this very important health and safety statute,” said United States Attorney Marc Krickbaum.
This matter was investigated by the U.S. Food and Drug Administration Office of Criminal Investigations, and the case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Dermatology Associates of Central New York to Pay More than $811,000 for Submitting False Claims to Federal and State Health Care ProgramsRead the Press Release
ALBANY, NEW YORK – United States Attorney Grant C. Jaquith and New York State Attorney General Barbara D. Underwood announced today that Dermatology Associates of Central New York, PLLC (Dermatology Associates) will pay $811,196.88 to resolve allegations that it violated the federal and New York False Claims Acts by knowingly billing the federal and state governments for medical services at a higher rate than appropriate.
“The integrity and strength of our federal health care system depends on accurate and honest billing for services,” said United States Attorney Jaquith. “We will continue to use the False Claims Act to hold healthcare providers accountable when they submit inflated claims.”
Dermatology Associates is a medical practice based in Fayetteville, New York. The practice is owned and operated by a married couple, both of whom are medical doctors, and employs several non-physician practitioners (NPPs), such as physician assistants and nurse practitioners, who render care to Medicare, Medicaid, and TRICARE beneficiaries.
In certain circumstances, Medicare and TRICARE allow practices to bill for services furnished by an NPP “incident to” the services that are rendered by a physician. These services, even though not personally rendered by a physician, may be billed in a physician’s name if several requirements are met. One such requirement is that a physician directly supervise the NPP rendering the services, meaning that a physician is present in the office suite and immediately available to furnish assistance and direction throughout the procedure. Although Medicare and TRICARE will reimburse practices for certain procedures rendered by NPPs without a physician’s direct supervision, such services are reimbursed at a lesser rate than service rendered or directly supervised by a physician.
The New York State Medicaid Program (Medicaid) does not allow for incident-to billing. In order for an NPP to receive reimbursement for services provided to a Medicaid eligible client, an NPP is required to be enrolled as a Medicaid provider with the New York State Department of Health.
From March 2009 through February 2015, Dermatology Associates generally operated six days a week for several hours each day, but a physician was physically present in the office suite on a more limited basis. Dermatology Associates caused its billing company to submit thousands of claims for payment to Medicare, Medicaid, and TRICARE for services that were rendered by NPPs but improperly identified one of Dermatology Associates’ physician owners as the rendering or supervising provider on days when no physician was in the office. Dermatology Associates, which cooperated during the investigation, admitted that the practice caused its billing company to submit claims for services rendered by NPPs as though such services had been provided or supervised by a physician on more than 200 days that the physicians were traveling outside of New York State. Dermatology Associates further acknowledged that some of the NPPs who treated Medicaid clients during this period were not credentialed to do so in New York and, in such circumstances, the uncredentialed providers were billed in a physician’s name.
“The irresponsible behavior by Dermatology Associates compromised the integrity of the Medicare, Medicaid, and TRICARE programs, and wasted taxpayer dollars,” said Special Agent in Charge Scott J. Lampert of the U.S. Department of Health and Human Services, Office of Inspector General’s New York Region (HHS-OIG). “Along with our law enforcement partners, HHS-OIG will continue to ensure that providers that do business with federally funded health care programs do so in an honest fashion.”
“The civil settlement announced today is the direct result of a joint investigative effort,” stated Leigh-Alistair Barzey, Special Agent-in-Charge of the Defense Criminal Investigative Service (DCIS) Northeast Field Office. “DCIS will continue to work with the U.S. Attorney’s Office for the Northern District of New York, HHS-OIG, the New York State Attorney General’s Office and its other law enforcement partners, to ensure that TRICARE, the Defense Department’s healthcare system for military members, retirees and their dependents, is protected.”
This investigation was triggered by a whistleblower lawsuit filed under the qui tam provisions of the federal and New York False Claims Acts, which allow private persons, known as “relators,” to file civil actions on behalf of the government and share in any recovery. The relator in this case will receive $138,000 of the settlement proceeds. The case is docketed with the U.S. District Court for the Northern District of New York under number 5:15-cv-315.
The investigation and settlement were the result of a coordinated effort among the U.S. Attorney’s Office for the Northern District of New York, the New York State Attorney General’s Office, HHS-OIG, and DCIS. The United States was represented by Assistant U.S. Attorney Adam J. Katz and New York State was represented by Special Assistant Attorney General Paul R. Berry.
Del Rio Woman Sentenced to Federal Prison for Attempting to Smuggle Heroin and Methamphetamine into the United StatesRead the Press Release
In Del Rio today, U.S. District Judge Alia Moses sentenced 41–year–old Ana Dellanira Rodarte to 17 years in federal prison for attempting to smuggle over 1.3 kilograms of heroin and 7.5 kilograms of methamphetamine into the country, announced U.S. Attorney John F. Bash and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
In addition to the prison term, Judge Moses ordered that Rodarte pay a $2,000 fine and be placed on supervised release for a period of five years after completing her prison term.
On April 23, 2018, Rodarte pleaded guilty to one count of conspiracy to import heroin. By pleading guilty, Rodarte admitted that she arranged for the load of narcotics inside her own car to be driven across the U.S. border with Mexico.
On March 5, 2016, inspectors at the Del Rio Port of Entry discovered the methamphetamine inside the vehicle’s battery. They also located the heroin in two antifreeze containers inside the vehicle. The driver of Rodarte’s vehicle at the time, Jasmin Medina Ramos of Del Rio, pleaded guilty to conspiracy to import methamphetamine. Last year, Judge Moses sentenced her to 135 months in federal prison ordered her to pay a $1,500 fine. A third defendant charged in this case, Jose Carlos Trevino of Del Rio, was sentenced to 121 months in federal prison and fined $3,000 last year after pleading guilty to conspiracy to possess with intent to distribute methamphetamine.
HSI Del Rio conducted this investigation. Assistant U.S. Attorney Todd R. Keagle prosecuted this case on behalf of the Government.
Dalton Man Charged with Mail FraudRead the Press Release
United States Attorney Erica H. MacDonald today announced a criminal complaint charging JEROME ROBERT HENNESSEY, 56, with one count of mail fraud. HENNESSEY surrendered himself and made his initial appearance today before Magistrate Judge Katherine Menendez, in U.S. District Court in Minneapolis, Minnesota.
According to the criminal complaint and a law enforcement affidavit, from 2003 through at least September of 2018, HENNESSEY defrauded the Ashby Farmers’ Co-Operative Elevator Company (co-op) in Ashby, Minnesota, for his own expenses.
According to the affidavit, on September 12, 2018, the co-op contacted local law enforcement regarding concerns over payments that HENNESSEY made to himself or for his own personal expenses. HENNESSEY was serving as the co-ops’ general manager. The co-op discovered multiple checks written by HENNESSEY to himself for over $40,000 and including a check for $135,000.
According to the affidavit, among the payments in question included over $1 million in payments to HENNESSEY’s personal Cabela’s Visa Card and hundreds of thousands of dollars for various hunting trips, including international big game hunting safaris, and taxidermy services. For example, investigators found at least twelve checks totaling more than $400,000 for items such as “South Africa Mounts” and “Zimbabwe Double Kudu Pedestals” and for a “Zebra Pedestal.”
The criminal complaint and law enforcement affidavit allege that on January 27, 2017, HENNESSEY mailed a check via U.S. mail in the amount of $34,166.67 from the co-ops’ account for a partial payment toward the purchase of hunting property in Kanabec County.
According to the affidavit, after the co-op identified the suspicious payments, they requested HENNESSEY meet with them on the morning of September 10, 2018. HENNESSEY did not show up for the meeting and instead met a friend who ultimately drove HENNESSEY to Des Moines, Iowa. Two of HENNESSEY’s acquaintances who were interviewed by law enforcement indicated that HENNESSEY told them that he taken money from his employer and was in a lot of trouble.
This case is the result of an investigation conducted by the Internal Revenue Service-Criminal Investigation Division, the Grant County Sheriff’s Office, and the Minnesota Bureau of Criminal Apprehension.
Assistant U.S. Attorney John Kokkinen is prosecuting the case.
Defendant Information:
JEROME ROBERT HENNESSEY, 56
Dalton, Minnesota
Charged:
- Mail Fraud, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
The charges contained in the criminal complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty.
DEA Special Agent Arrested on Bribery and Drug Conspiracy ChargesRead the Press Release
LITTLE ROCK—Cody Hiland, United States Attorney for the Eastern District of Arkansas, announced today’s arrest of Nathan Koen, 42, of Conway, on federal bribery and drug conspiracy charges.
Koen, who had worked in the Drug Enforcement Administration’s Little Rock Field Office as a group supervisor since September 2016, was arrested on a federal complaint charging him with accepting bribes in connection with his duties, and for being part of a conspiracy to distribute controlled substances. Koen appeared before United States Magistrate Judge Beth Deere Tuesday afternoon and was detained following his initial appearance.
According to the federal complaint charging him, Koen accepted multiple cash payments from a known drug dealer from 2016 to 2018, in exchange for providing information which assisted the drug dealer’s criminal activities.
The bribery crime with which Koen is charged is punishable by up to 15 years’ imprisonment, while the drug distribution charge is punishable by up to life in prison. Assistant United States Attorneys Benecia Moore and Chris Givens are prosecuting the case, which is being investigated by the FBI.
A complaint contains only allegations. A defendant is presumed innocent unless and until proven guilty.
# # #
This news release, as well as additional information about the office of the United States Attorney for the Eastern District of Arkansas, is available on-line at
http://www.justice.gov/edar
Twitter: @EDARNEWSCourt Sentences Selma Man to 70 Months in Federal Prison for Being a Felon in Possession of a FirearmRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Chief Judge Kristi K. DuBose sentenced Anthony Rashad Brown on November 30, 2018 to serve a term of imprisonment of 70 months followed by 3 years of supervised release for the for the illegal possession of a firearm in violation of 18 USC § 922(g)(1). The defendant’s guilty plea was accepted by the Court on July 30, 2018.
Evidence elicited through testimony in Court revealed that on October 3, 2017, detectives with the Selma Police Department stopped the defendant for a traffic infraction. After smelling marijuana in the vehicle officers searched the vehicle and found a loaded .40-caliber, Ruger, P94 firearm from under the driver side seat. The firearm was determined to be stolen. Officers also found approximately 70 pills, that appeared to be Ecstasy but tested at the Alabama Department of Forensic Sciences as methamphetamine, and approximately 15 grams of marijuana, in the center console of the vehicle. The defendant was on federal probation for the felony offense of Possession with the Intent to Distribute Marijuana in the United States District Court for the Southern District of Alabama. The prior federal conviction occurred on May 20, 2014.The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF), and the Selma Police Department. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, Assistant United States Attorney George F. May and Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
Court Sentences Mobile County Man to 48 Months in Federal Prison for Weapons and Drug OffenseRead the Press Release
United States Attorney Richard W. Moore of the Southern District of Alabama announced that United States District Court Chief Judge Kristi K. DuBose sentenced John Robert Payne on November 30, 2018 to serve a term of imprisonment of 48 months followed by 3 years of supervised release for violating Title 21, United States Code, Section 841(a)(1), Possession with the Intent to Distribute a Controlled Substance, Methamphetamine, and violating Title 18, United States Code, Section 924 (c), Possession of a Firearm in Furtherance of a Drug Trafficking Crime. The defendant’s guilty plea was accepted by the Court on July 30, 2018.
Facts established through Court records revealed that on July 17, 2017, a reliable confidential informant (CI) working for the Mobile County Street Enforcement Narcotics Team (MCSENT) reported that Payne was offering to sell him methamphetamine. Officers set up a “buy/bust” undercover operation and detained the defendant when he showed up at the location designated as the buy location at a Burger King parking lot in Mobile County. After being detained at the location the defendant admitted he was a methamphetamine seller and that he had methamphetamine in his pocket to sell to the CI. The defendant was planning to sell the CI approximately 3 grams of methamphetamine (actual). The defendant also had a firearm in the center console of the vehicle that the defendant bought off the streets to protect his drug trade. Four days later in a completely separate investigation, a Federal Bureau of Investigation CI made an undercover buy of .5 grams of methamphetamine from Payne.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, the Federal Bureau of Investigation, the Mobile County Street Enforcement Narcotics Team (MCSENT) and the City of Saraland Police Department. The case was prosecuted by Organized Crime Drug Enforcement Task Force (OCDEFT) Lead Attorney, Assistant United States Attorney George F. May and Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.Colombian National Sentenced to 15 Years in Prison for Participating in Human Smuggling Event that Resulted in the Rape and Murder of Cuban NationalsRead the Press Release
A Colombian national was sentenced to 180 months in prison for his role in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.
Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Fredis Valencia Palacios, 30, a Colombian national extradited to the United States in April 2018 to face these charges, previously pleaded guilty to one count of conspiracy to encourage and induce aliens to come to the Unites States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person. Valencia Palacios was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida, who also ordered him to serve three years of supervised release following his prison sentence.
“When Valencia Palacios conspired to smuggle illegal aliens into the United States, he launched them on a deadly journey during which one was sexually assaulted and murdered, another also was brutally murdered, and a third was left for dead in the water,” said Assistant Attorney General Benczkowski. “Today’s sentence once again demonstrates the Department of Justice’s commitment to hold accountable those who violate U.S. immigration laws.”
“The 15-year federal prison sentence imposed today against Fredis Valencia Palacios is a reminder to all that the high seas do not protect criminals from prosecution in the United States,” said U.S. Attorney Fajardo Orshan. “When human smugglers knowingly plan to violate U.S. immigration laws and expose illegal aliens to grave danger during their arduous journey, the U.S. Attorney’s Office, with the assistance of our domestic and foreign law enforcement partners, stand ready to prosecute the offenders on American soil.”
“This case highlights the tragic perils involved with illegal alien smuggling,” said HSI Miami Special Agent in Charge Mark Selby. “While exploiting human cargo for pure greed, this was a horrific tragedy resulting in sexual assault and two deaths. HSI continues to aggressively target and dismantle transnational criminal organizations that profit from the suffering of individuals.”
According to the court record, including agreed-upon factual proffers, since 2014, Valencia Palacios, and his co-defendants, including Jhoan Stiven Carreazo Asprilla and Carlos Emilio Ibarguen Palacios, organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States. In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami.
On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by Valencia Palacios to a boat captained by his co-defendants to begin their journey to Panama. During the boat trip, the co-defendants pulled a knife and a gun on the victims. One of the co-defendants tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard the co-defendants sexually assault the female victim before cutting her throat and murdering her. The surviving victim also heard the co-defendants cut the other male victim’s throat, killing him. While that was happening, the survivor managed to free himself and escape by swimming away. The co-defendants left him for dead.
The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy. The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water. The co-defendants were subsequently located and arrested.
Carreazo Asprilla and Ibarguen Palacios are scheduled to be sentenced on Jan. 4, 2019 before U.S. District Judge Martinez.
This case was investigated by HSI Miami, with assistance from the HSI Bogota field office. The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida prosecuted the case.
Colombian National Sentenced to 15 Years in Prison for Participating in Human Smuggling Event that Resulted in the Rape and Murder of Cuban NationalsRead the Press Release
A Colombian national was sentenced to 180 months in prison for his role in a scheme to smuggle illegal aliens from Colombia into the United States, which resulted in the rape of one and the death of two Cuban nationals.
U.S. Attorney Ariana Fajardo Orshan of the Southern District of Florida, Assistant Attorney General Brian A. Benczkowski of the Justice Department’s Criminal Division, and Special Agent in Charge Mark Selby of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Miami Field Office made the announcement.
Fredis Valencia Palacios, 30, a Colombian national extradited to the United States in April 2018 to face these charges, previously pleaded guilty to one count of conspiracy to encourage and induce aliens to come to the Unites States resulting in death as well as three counts of encouraging and inducing aliens to come to the United States resulting in death and placing in jeopardy the lives of any person. Valencia Palacios was sentenced by U.S. District Judge Jose E. Martinez of the Southern District of Florida, who also ordered him to serve three years of supervised release following his prison sentence.
“The 15-year federal prison sentence imposed today against Fredis Valencia Palacios is a reminder to all that the high seas do not protect criminals from prosecution in the United States,” said U.S. Attorney Fajardo Orshan. “When human smugglers knowingly plan to violate U.S. immigration laws and expose illegal aliens to grave danger during their arduous journey, the U.S. Attorney’s Office, with the assistance of our domestic and foreign law enforcement partners, stand ready to prosecute the offenders on American soil.”
“When Valencia Palacios conspired to smuggle illegal aliens into the United States, he launched them on a deadly journey during which one was sexually assaulted and murdered, another also was brutally murdered, and a third was left for dead in the water,” said Assistant Attorney General Benczkowski. “Today’s sentence once again demonstrates the Department of Justice’s commitment to hold accountable those who violate U.S. immigration laws.”
“This case highlights the tragic perils involved with illegal alien smuggling,” said HSI Miami Special Agent in Charge Mark Selby. “While exploiting human cargo for pure greed, this was a horrific tragedy resulting in sexual assault and two deaths. HSI continues to aggressively target and dismantle transnational criminal organizations that profit from the suffering of individuals.”
According to the court record, including agreed-upon factual proffers, since 2014, Valencia Palacios, and his co-defendants, including Jhoan Stiven Carreazo Asprilla and Carlos Emilio Ibarguen Palacios, organized and arranged the unlawful smuggling of illegal aliens, transporting them across Colombia toward the Panamanian border, en route to the United States. In 2016, three Cuban nationals arranged with, and paid, the defendants to transport them from Colombia to Panama, as they traveled to the United States, intending to arrive in Miami.
On Sep. 7, 2016, during a portion of their journey, the three victims – two men and a woman – were delivered by Valencia Palacios to a boat captained by his co-defendants to begin their journey to Panama. During the boat trip, the co-defendants pulled a knife and a gun on the victims. One of the co-defendants tied the wrists of the two male passengers and then threw them overboard, anchoring them with rope to the inside of the boat. The surviving male victim reported that he heard the co-defendants sexually assault the female victim before cutting her throat and murdering her. The surviving victim also heard the co-defendants cut the other male victim’s throat, killing him. While that was happening, the survivor managed to free himself and escape by swimming away. The co-defendants left him for dead.
The next day, a local fisherman discovered the survivor, who was subsequently rescued by the Colombian Navy. The survivor directed the Colombian authorities to the place where the murders happened, and the Colombian authorities retrieved the bodies. Their throats and bellies had been cut open and they were tied up together and submerged in the water. The co-defendants were subsequently located and arrested.
Carreazo Asprilla and Ibarguen Palacios are scheduled to be sentenced on Jan. 4, 2019 before U.S. District Judge Martinez.
This case was investigated by HSI Miami, with assistance from the HSI Bogota field office. The Government of Colombia, including the Colombian Office of the Attorney General, provided significant assistance and support during the investigation. The Criminal Division’s Office of International Affairs provided significant support with the defendants’ extradition. The investigation was conducted under the Extraterritorial Criminal Travel Strike Force (ECT) program, a joint partnership between the Justice Department’s Criminal Division and HSI. The ECT program focuses on human smuggling networks that may present particular national security or public safety risks, or present grave humanitarian concerns. ECT has dedicated investigative, intelligence and prosecutorial resources. ECT coordinates and receives assistance from other U.S. government agencies and foreign law enforcement authorities.
Assistant U.S. Attorney Brian Dobbins of the Southern District of Florida and Trial Attorney Danielle Hickman of the Criminal Division’s Human Rights and Special Prosecutions Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or at http://pacer.flsd.uscourts.gov.
Cheyenne Psychologist and His Wife Sentenced to 37 Months in Prison for Health Care FraudRead the Press Release
John Robert Sink, Jr., 68, and Diane Marie Sink, 63, of Cheyenne, Wyoming, were sentenced on December 3, 2018, to serve 37 months in prison for making false statements as part of a scheme to fraudulently bill Wyoming Medicaid for mental health services, which were never provided, announced United States Attorney Mark A. Klaassen. The Sinks, who are married, were also ordered to pay over $6.2 million in restitution to the Wyoming Department of Health and the United States Department of Health and Human Services, and to forfeit over $750,000 in assets traceable to the fraud, including cash, retirement accounts, vehicles, and a residence.
The Sinks were indicted in March 2018 by a federal grand jury for health care fraud, making false statements, and money laundering. At all times relevant to the indictment, John and Diane Sink operated a psychological practice in Cheyenne. John Sink, who was a licensed Ph.D. psychologist, directed mental health services. Diane Sink submitted bills to Wyoming Medicaid and managed the business and its employees. The Sinks provided services to developmentally disabled Medicaid beneficiaries and billed Medicaid for those services.
Between February 2012 and December 2016, the Sinks submitted bills to Wyoming Medicaid for $6.2 million in alleged group therapy. These bills were false and fraudulent because the services provided did not qualify as group therapy as defined by Wyoming Medicaid. The Sinks also falsely billed Medicaid for beneficiaries who were not participating in any activities, and therefore did not receive any of the claimed mental health services. When Wyoming Medicaid audited the Sinks in May 2016, the Sinks did not have necessary documentation to support their billing, so they ordered an employee to create backdated treatment plans. The Sinks then submitted these phony treatment plans to Wyoming Medicaid to justify the Sinks’ false group therapy bills, and to cover up their fraudulent billing scheme.
The Sinks each pled guilty to one count of making false statements in relation to health care as part of a plea agreement with the United States government. The other counts in the indictment were dismissed.
"Healthcare fraud is a serious crime that increases costs and wastes healthcare dollars on medically worthless or unnecessary activities. Fraud involving a government healthcare program, like Wyoming Medicaid, is even more serious because it wastes taxpayer dollars and reduces the program’s ability to serve needy individuals and families. We are on the lookout for this type of criminal activity, and it will not be tolerated," said U.S. Attorney Mark Klaassen.
"John and Diane Sink took advantage of the government's Medicaid program by creating a deceptive health care billing schemes for personal gain, consequently passing the bill to the U.S. government and the State of Wyoming," said FBI Denver Special Agent in Charge Dean Phillips. "All taxpayers and those who need Medicaid health care assistance were victimized. Today's sentencing should send the message that exploitation of our health care assistance programs for personal gain will not be tolerated and that we will continue to hold accountable those individuals who engage in health care fraud."
"Wyoming Medicaid staff, together with our partners in the Attorney General’s office, work to be good stewards of public funds," said Teri Green, Senior Administrator and Wyoming State Medicaid Agent. "Outcomes such as with this case should serve as a reminder that we take our responsibilities to serve Wyoming’s citizens seriously."
"This prosecution represents a successful partnership between state and federal law enforcement agencies to combat fraud," said Travis Kirchhefer, Director, Wyoming Attorney General's Office, Medicaid Fraud Control Unit.
United States District Court Judge Nancy Freudenthal imposed the sentence. The Federal Bureau of Investigation and the Wyoming Medicaid Fraud Control Unit investigated this case. Assistant U.S. Attorney Eric Heimann and Special Assistant United States Attorney Travis Kirchhefer of the Wyoming Medicaid Fraud Control Unit prosecuted the case.
Suspected fraud against Medicaid or Medicare can be reported to the U.S. Department of Health and Human Services’ Office of Inspector General at 1-800-HHS-TIPS (1-800-447-8477) and the agency’s website https://oig.hhs.gov/fraud/report-fraud/. Wyoming residents can call the Wyoming Medicaid Fraud Control Unit toll free at 1-800-378-0345, or visit their website at http://ag.wyo.gov/medicaid-fraud-control-unit.
California Telescope Enthusiast Sentenced to Prison for Cyber AttackRead the Press Release
OKLAHOMA CITY – DAVID CHESLEY GOODYEAR, 44, of El Segundo, California, has been sentenced to 26 months in prison for directing distributed-denial-of-service (DDoS) cyber attacks against two websites owned by Oklahoma telescope retailer Astronomics in August 2016, announced Robert J. Troester of the U.S. Attorney’s Office.
In August 2017, a federal grand jury charged Goodyear with attacking the websites of Astronomics, a family-owned telescope retailer in Norman, Oklahoma. He instigated a DDoS cyber attack, in which the perpetrator floods the victim’s computer with useless information from botnets—large clusters of connected devices infected with malware and controlled remotely—and prevents access by legitimate users.
On February 15, 2018, after two days of trial, a jury returned a guilty verdict. The evidence showed that Astronomics operated the world’s largest free astronomy forum on the internet, called Cloudy Nights, and that Goodyear had been a registered user on the site under a variety of aliases. Each of Goodyear’s usernames and his primary IP address had been banned for violating the terms of service of Cloudy Nights, including sending threats to other users, administrators, and moderators.
The jury heard that Goodyear attempted to access Cloudy Nights as "JamesSober" on August 13, 2016, but his access to the online community was denied because his "JamesSober" account had been banned on August 9, 2016. Goodyear then posted messages on Cloudy Nights under a new alias, "HawaiiAPUser," including pornography and profanity directed at Astronomics and the volunteer administrators and moderators of Cloudy Nights. In the posts, he threatened that he would "talk with [his] contacts and just DOS this site as well as A55tronomics." Evidence further showed that DDoS attacks against Astronomics and Cloudy Nights began that night and continued intermittently until the end of August 2016, when law enforcement interviewed Goodyear, who admitted he was responsible for the attacks.
On December 3, 2018, Chief U.S. District Judge Joe Heaton sentenced Goodyear to 26 months in the federal Bureau of Prisons, followed by three years of supervised release. He was ordered to pay $27,352.51 in restitution to Astronomics, which represents lost profits and mitigation costs. The court also fined him $2,500.00. Judge Heaton explained the punishment by pointing out Goodyear’s clear intent to harm Astronomics and the importance of deterring sophisticated cybercrimes, which are difficult to trace and therefore particularly important to punish and thereby send the appropriate message to others.
This sentence is the result of an investigation by the FBI, with support from the United States Secret Service Electronic Crimes Task Force in Los Angeles, which includes personnel from the Los Angeles Police Department. The case was prosecuted by Assistant U.S. Attorneys K. McKenzie Anderson and William E. Farrior.
Reference is made to public filings for further information.
California Man Charged with Sexual Exploitation of a ChildRead the Press Release
David Vogelpohl, age 21, of Vista, California, has been charged with sexual exploitation of a child. The charge is contained in an Indictment unsealed on December 3, 2018, in United States District Court in Cedar Rapids.
The Indictment alleges that, between about August 2018 and October 2018, Vogelpohl persuaded, induced, and enticed a minor under 18 years old to engage in sexually explicit conduct for the purpose of producing visual depictions.
If convicted, Vogelpohl faces a mandatory minimum sentence of 15 years’ imprisonment and a possible maximum sentence of 30 years’ imprisonment, a $250,000 fine, and at least five years and up to life on supervised release following any imprisonment.
Vogelpohl appeared on December 3, 2018, in federal court in Cedar Rapids and was held without bond. Vogelpohl’s next appearance for trial is set for February 4, 2019.
As with any criminal case, a charge is merely an accusation and a defendant is presumed innocent until and unless proven guilty.
This case is being prosecuted by Assistant United States Attorney Mark Tremmel and is being investigated by the Iowa Division of Criminal Investigation, the Mason City Police Department, the North Platte, Nebraska, Police Department, and Homeland Security Investigations.
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.”
Court file information is available at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is CR 18-3053.
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Brooklyn Woman Sentenced for Identity Theft and Fraud Conspiracy ChargesRead the Press Release
CONCORD - Armelle Chester, 26, of Brooklyn, New York, was sentenced in federal court on Friday to serve to two years in federal prison for conspiracy to commit mail and wire fraud and aggravated identity theft, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, in January 2018, in Nashua, New Hampshire, Chester conspired with co-defendants Everton Ellis and Jeffrey Martin (both of whom have entered guilty pleas) to use stolen identities to defraud the Sprint Corporation. Members of the conspiracy contacted Sprint to establish new accounts in the stolen names, causing Sprint to ship thousands of dollars’ worth of iPads and iPhones on credit. The defendants then intercepting the goods in New Hampshire. As part of the scheme, the defendants obtained and possessed without authority the names and other personal identifiers of nearly 200 residents or former residents of New Hampshire.
Chester previously pleaded guilty on July 16, 2018. In addition to the prison sentenced, Chester was ordered to pay $123,939.09 in restitution.
“Identity theft is a crime that causes real financial damage to its victims,” said U.S. Attorney Murray. “I am grateful to the law enforcement officers whose hard work stopped this scheme and prevented further losses.”
“The United States Secret Service is committed to investigating financial crimes including the unauthorized use of personally identifiable information (PII) for financial gain,” said Timothy Benitez, Resident Agent in Charge of the U.S. Secret Service, Manchester Resident Office. “The success of this investigation is a result of the cooperation between federal and local law enforcement partners.”
“The U.S. Postal Inspection Service is committed to preserving the integrity of the U.S. Mail. We will continue to conduct investigations that seek prosecution of those who fraudulently use the U.S. Mail by working with our federal and local law enforcement partners.” U.S. Postal Inspection Service’s Inspector in Charge, Joseph W. Cronin of the Boston Division.
This matter was investigated by the U.S. Secret Service, the U.S. Postal Inspection Service, and the Nashua Police Department. The case is being prosecuted by Assistant U.S. Attorney John S. Davis.
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