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Tuesday 15 May 2018
Former Social Security Administration Employee and Husband Sentenced to Prison for Committing Public Benefit FraudRead the Press Release
Montgomery, Alabama – On Friday, May 11, 2018, a former employee of the Social Security Administration (SSA) and her husband were sentenced to prison for defrauding the federal government, announced United States Attorney Louis V. Franklin, Sr.
The two defendants were former SSA employee Nakia Palmer, 35, and her husband, Nathaniel Palmer, 30. Both Nakia Palmer and Nathaniel Palmer presently reside in Gadsden, Alabama, but resided in Montgomery, Alabama during the period they committed their crimes. Nakia Palmer was sentenced to 24 months in prison, and Nathaniel Palmer received a 6 month prison sentence, to be followed by 6 months of home detention. There is no parole in the federal system.
The sentences follow Nakia Palmer’s and Nathaniel Palmer’s February 15, 2018 convictions after a four-day trial. At that trial, the jury found Nakia Palmer guilty of mail fraud, theft of government property, Social Security benefit fraud, and food stamp fraud. The jury convicted Nathaniel Palmer of mail fraud, theft of government property, and witness tampering. Each defendant was found guilty of all counts in which he or she was charged.
The trial evidence showed that the Palmers lied about their incomes and living arrangements for the purposes of fraudulently obtaining Social Security benefits on behalf of Nakia Palmer’s minor son. Specifically, Nakia Palmer falsely informed Social Security employees in Dothan, Alabama that she was an actress living in California and had left her minor son in her husband’s exclusive custody, so that Social Security would not consider her income in determining whether her son was eligible for benefits. All the while, Nakia Palmer worked for Social Security in the Montgomery office. Evidence also showed that the Palmers did not use the fraudulently obtained benefits to support her child. Rather, the couple spent the money on the financing of a new vehicle. According to the evidence, Nakia Palmer made similar false claims for the purpose of obtaining food stamps. In total, the Palmers received approximately $25,000 in benefits to which they were not entitled.
As for the witness tampering, the government proved that, after becoming aware that he was under investigation, Nathaniel Palmer asked his next-door neighbor to lie to investigators regarding the family’s living arrangements.
This case was investigated by the Social Security Administration – Office of Inspector General, as well as the United States Department of Health and Human Services – Office of Inspector General. The United States Department of Agriculture – Office of Inspector General assisted in the investigation, along with the Alabama Department of Human Resources. Assistant United States Attorneys Jonathan S. Ross and Joshua Wendell prosecuted the case.
Former San Antonio Attorney Todd Prins Sentenced to Federal Prison for $2.4 Million Wire Fraud SchemeRead the Press Release
In San Antonio today, a federal judge sentenced former San Antonio lawyer Todd Prins to six years in federal prison for a $2.4 Million fraud scheme, announced United States Attorney John F. Bash and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, Senior United States District Judge David A. Ezra ordered that the 52-year-old Prins pay $2,975,264 restitution and be placed on supervised release for a period of three years after completing his prison term. Judge Ezra allowed Prins to remain on bond pending Bureau of Prisons facility designation. On June 28, 2017, Prins pleaded guilty to one count of wire fraud. By pleading guilty, Prins admitted that from August 16, 2013, to December 22, 2016, he defrauded multiple victims of their money by means of false and fraudulent pretenses, representations and promises.
“Ordinary Texans often put their trust in lawyers to help them navigate complex legal disputes. When a lawyer abuses that trust for personal gain, it undermines the integrity of our legal system. The misconduct in this case was simply outrageous, and the six-year sentence was amply deserved,” stated United States Attorney Bash.
According to court records, Prins led clients to believe that a lawsuit Prins filed on their behalf was successful, resulting in a judgment in their favor. To convince his clients, Prins fraudulently created forged court rulings, opinions and orders, purportedly issued by various state and federal courts bearing the signatures of the respective judges. Those courts included Bexar County District Court, the Texas Fourth Court of Appeals, the Texas Supreme Court, United States District Court for the Western District of Texas, and the United States Courts of Appeals for the Fifth and Seventh Circuits.
Furthermore, Prins caused an entity which had purchased real estate in a foreclosure sale conducted by Prins’ law firm to wire transfer approximately $2,400,000 to Prins’ law firm’s trust account. Rather than maintaining those funds in his trust account for proper distribution, Prins caused approximately $2,000,000 of that money to be wire transferred to another bank account he controlled. During October and November 2016, Prins misappropriated and converted to his own use approximately $800,000 of the $2,400,000. Prins, having improperly transferred the $2,000,000 from his trust account to his other account, falsely told a principal of his client-seller that the purchaser’s $2,400,000 was still in his trust account. To support that false claim, Prins fraudulently created and sent by e-mails and text messages what appeared to be screen shots of the trust account showing the balance in the trust account to be in excess of $3,000,000. In fact, the true balance of the trust account was less than $1,000, having been $2,041.17 prior to the receipt of the $2,400,000.
The FBI conducted this investigation. Assistant United States Attorney William R. Harris prosecuted this case on behalf of the Government.
Former Navy Senior Chief Sentenced for $2.3 Million FraudRead the Press Release
NORFOLK, Va. – A former U.S. Navy senior chief was sentenced today to two years in prison for his involvement in a procurement fraud scheme that resulted in a $2.3 million loss to the U.S. Navy.
According to court documents, Clayton Pressley III, 42, of Chesapeake, conspired with two others to form a sham government contracting firm in May 2014. The company, known in court documents as “Firm G,” was ostensibly formed to provide “inert training aids” to local Navy units. However, Firm G had neither the capability nor intention to provide the Navy with any supplies at all. Instead, the conspirators manipulated the government procurement process to contract with themselves, and signed fraudulent documentation with the Navy indicating that Firm G had delivered product when it had not. The conspirators used legitimate vendors as intermediaries through which they would fraudulently subcontract business from the Navy to Firm G. The Navy would pay Firm G, through these intermediaries, and ultimately the conspirators would simply distribute the proceeds amongst themselves.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Robert E. Craig, Jr., Special Agent in Charge of the Defense Criminal Investigative Service (DCIS) Mid-Atlantic Field Office, Cliff Everton, Special Agent in Charge of the Naval Criminal Investigative Service (NCIS) Norfolk Field Office, Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, and Kelly R. Jackson, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after sentencing by U.S. District Judge Henry C. Morgan, Jr. Special Assistant U.S. Attorney David A. Layne and Assistant U.S. Attorney Steve Haynie prosecuted 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. 2:17-cr-152.
Former Middlesex Borough Fire Inspector Admits Conspiring to Commit Strongarm ExtortionRead the Press Release
NEWARK, N.J. – A former fire inspector for Middlesex Borough and other New Jersey municipalities today admitted conspiring with another person to commit a strongarm extortion, U.S. Attorney Craig Carpenito announced today.
Billy A. Donnerstag, 49, of Hackettstown, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to an indictment returned against him charging him with conspiring to commit extortion using threats of force, violence, and fear.
According to the documents filed in this case and statements made in court:
From December 2016 through June 2017, Donnerstag conspired with Joseph P. Martinelli of Kenvil, New Jersey, to extort the owner and operator of a real estate development and construction company – referred to in the indictment as “Individual 1” – using threats of physical harm if Individual 1 did not pay Donnerstag and Martinelli thousands of dollars. In a series of telephone and in-person conversations with Individual 1, Donnerstag and Martinelli told Individual 1 that, in addition to being a fire inspector for Middlesex Borough, Donnerstag also collected debts. Donnerstag and Martinelli wanted Individual 1 to pay Martinelli, stating that Individual 1 had not paid Martinelli enough money for the sale of a property a decade earlier. During the course of the conspiracy, both Donnerstag and Martinelli made a series of threatening statements to Individual 1 that the consequences of failing to pay Donnerstag and Martinelli would involve physical harm to Individual 1.
Donnerstag told Individual 1:
• “if you were in front of me right now, you’d be on the floor. Okay? Cause I don’t talk—I don’t get talked to like that. You don’t know who I am.”
• “You need to iron this out with Joe. Again, if, if I have to come meet you now—again, it, it, it, it’d become, it’s gonna be a problem.”
• “What I do, is I make sure that people don’t take advantage of other people. Do you understand that? Now I also do other things, but this is one of the things that I do. Now, again if you’re not figuring wh, what my business is by now, you’re either, and again I, I say this with as much respect as I can, either an idiot, or you’re just lying because you don’t want to, to, to understand that I come from somewhere that most people don’t wanna see.”Ultimately, over two separate meetings (both of which were lawfully recorded), Donnerstag and Martinelli obtained $15,000 in cash from Individual 1. The cash had been provided by the FBI.
The count of conspiracy to commit extortion carries a maximum potential penalty of up to 20 years in prison and a fine of up to $250,000 or twice the gross gain or loss. Martinelli previously pleaded guilty before Judge Arleo on March 2, 2018, to conspiring with Donnerstag to commit extortion. Sentencing for Donnerstag is scheduled for Sept. 25, 2018. Martinelli’s sentencing is scheduled for June 12, 2018.
U.S. Attorney Carpenito credited special agents with the FBI, under the direction of Special Agent in Charge Gregory W. Ehrie in Newark, New Jersey, with the investigation leading to the guilty pleas of Donnerstag and Martinelli.
The government is represented by Assistant U.S. Attorney Lee M. Cortes Jr., Deputy Chief of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: Zahid N. Quraishi Esq., Morristown, New Jersey
Former IRS Employee Pleads Guilty to Unauthorized Possession of Official Federal Agency Identification CardRead the Press Release
NEWARK, N.J. – A former IRS attorney today admitted possessing a federal agency identification card without authorization and using it during multiple traffic stops, U.S. Attorney Craig Carpenito announced.
Deon Owensby, 42, of Trenton, New Jersey, pleaded guilty before U.S. Magistrate Judge Leda Dunn Wettre in Newark federal court to an information charging him with knowingly possessing an official identification card of a federal agency without authorization.
According to documents filed in this case and statements made in court:
Owensby obtained an official IRS identification card known as an IRS Pocket Commission during his employment as an attorney with the IRS. The IRS Pocket Commission, which IRS employees use to identify themselves to the public when performing official duties, was to be returned to the IRS upon the end of his employment in April 2015.
However, from August 2015 to April 2017, Owensby continued to possess the IRS Pocket Commission and displayed it during multiple law enforcement stops of his vehicle in Essex and Middlesex Counties.
The count of possessing an official identification card of a federal agency without authorization is punishable by a maximum potential penalty of six months in prison and a $5,000 fine. Owensby’s sentencing is scheduled for Aug. 28, 2018.
U.S. Attorney Carpenito credited special agents of the U.S. Treasury Inspector General for Tax Administration, under the direction of Special Agent in Charge Rodney A. Davis, with the investigation. He also thanked the N.J. State Police, under the direction of Superintendent Col. Patrick J. Callahan, and the Millburn Police Department, under the direction of Chief Brian Gilfedder, for their assistance.The government is represented by Assistant U.S. Attorney Jihee G. Suh of the U.S. Attorney Office’s Special Prosecutions Division in Newark
Defense counsel: Patrick McMahon Esq., Assistant Federal Public Defender, Newark
Former City of Detroit Employee Pleads Guilty to Embezzling $265,000 from the CityRead the Press Release
A former City of Detroit employee, Masharn Franklin, 53, of Detroit, pleaded guilty today to embezzling $265,000 from the city, announced United States Attorney Matthew Schneider.
Franklin was employed by the City of Detroit in its audit and payroll department in 2016 and 2017. During that time, Franklin was responsible for overseeing the execution of garnishment orders for the salaries of Detroit city employees. While so employed, Franklin concocted a scheme to embezzle hundreds of thousands of dollars from the city by causing money to be “garnished” from city funds in the names of Franklin’s relatives. Once the city had issued checks in the names of Franklin’s relatives in the amounts dictated by Franklin, Franklin then deposited the checks into bank accounts held jointly by her and her relatives. As a result of her embezzlement scheme, Franklin stole approximately $265,573 from the City of Detroit. The FBI has already seized $58,000 in criminal proceeds from Franklin’s bank accounts.
Schneider was joined in the announcement by Timothy Slater, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation.
“Defendant Franklin abused her position of trust as an employee in order to steal hundreds of thousands of dollars from the City of Detroit. Today’s conviction demonstrates that the federal authorities will continue to assist the City of Detroit to ensure that such behavior will not be tolerated as the city continues its comeback,” U.S. Attorney Schneider said.
“Masharn Franklin attempted to weaken the successful efforts of Detroit city officials committed to rebuilding faith in the city government by stealing from the residents,” said Timothy R. Slater, Special Agent in Charge of the Detroit FBI. “The FBI will not tolerate those behaviors and remains committed, along with all our Detroit law enforcement partners, to work collectively, bringing those responsible for such acts to justice.”
The embezzlement count for theft from a program receiving federal funds carries a maximum sentence of 10 years imprisonment and a fine of $250,000. Franklin will also be required to pay back all of the $265,573 that she stole from the city.
Franklin is scheduled to be sentenced by United States District Judge Arthur J. Tarnow on August 15, 2018 at 11:00 a.m.
The investigation of this case was conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney David A. Gardey.
Florida Resident Pleads Guilty to Stealing Government Funds and Obstructing the IRSRead the Press Release
WASHINGTON – A resident of Lee County, Florida pleaded guilty today to stealing government funds and corruptly endeavoring to obstruct the internal revenue laws, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney Maria Chapa Lopez of the Middle District of Florida.
According to documents filed with the court, Attila Kalmar filed 2007 through 2009 trust returns with the Internal Revenue Service (IRS) in the name of First AK-Open Sec Trust, a nominee entity, seeking more than $480,000 in fraudulent refunds. Kalmar deposited a refund check he received as a result of these filings into a bank account, and then used the proceeds to purchase real property, acquire thousands of dollars in gold coins, and wire money overseas. Kalmar also attempted to impede the internal revenue laws by transferring funds between nominee bank accounts and falsely representing to the IRS that an IRS revenue officer was the trustee for First AK-Open Sec Trust.
Sentencing has not been scheduled. Kalmar faces a statutory maximum sentence of three years in prison for corruptly endeavoring to impede the internal revenue laws and a statutory maximum sentence of 10 years in prison for theft of government funds. He also faces a term of supervised release, restitution, forfeiture, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Chapa Lopez commended special agents of IRS–Criminal Investigation, who conducted the investigation, and Trial Attorneys William M. Montague, Grace E. Albinson, and Melanie A. Smith of the Tax Division, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Florida Man Who Assaulted Airline Flight Crew and Passengers Sentenced to Two Years in PrisonRead the Press Release
A Tampa, Florida, man who assaulted crew and passengers on a Delta Airlines flight bound for China was sentenced today in U.S. District Court in Seattle to two years in prison for four federal felonies in connection with the July 16, 2017 incident, announced U.S. Attorney Annette L. Hayes. JOSEPH DANIEL HUDEK IV, 24, pleaded guilty in February 2018. HUDEK claimed he suffered a psychotic episode with hallucinations after consuming marijuana edibles. In imposing the prison sentence U.S. District Judge John C. Coughenour said he could not ignore the violence to the flight attendants and passengers and the fear HUDEK caused to all of the people on the flight.
“Assaulting flight attendants and passengers, and threatening the safety of everyone on a commercial airliner will not be tolerated,” said U.S. Attorney Annette L. Hayes. “We take very seriously our responsibility to hold accountable those who victimize the flying public and airline employees. I commend the FBI for their work to ensure the victims in this case were heard and the evidence of this crime was made available for all concerned.”
According to records in the case, HUDEK was seated in first class on the Delta flight. The aircraft had 210 passengers on board and 11 crew members. The plane had just passed over Vancouver Island and was over the Pacific Ocean when HUDEK came out of the first class bathroom and in an agitated state attempted to raise the lever of the exit door of the aircraft. Two flight attendants attempted to stop HUDEK, he threw one to the floor and punched the other. When a passenger attempted to assist the flight attendants, HUDEK hit him over the head with a wine bottle. Ultimately, multiple passengers were required to restrain HUDEK, and one lowered the exit handle of the door as the aircraft returned to Seattle.
Speaking to the court, passenger Lon Arnold described how he suffered permanent injury to his vision when HUDEK punched him in the eye. HUDEK also hit Arnold over the head with a wine bottle causing a concussion. Arnold said “the violence was incredible… I was afraid he was going to kill the flight attendant.”
In addition to the two year prison sentence, Judge Coughenour ordered HUDEK to pay $67,841 in restitution to the victims and imposed three years of supervised release to follow prison. During supervised release HUDEK is not allowed to fly on a commercial aircraft.
HUDEK remains out of custody on bond. The Bureau of Prisons will determine his prison placement and will order him to report to a federal prison in the next four to six weeks.
The case was investigated by the FBI. The case is being prosecuted by Assistant United States Attorney Stephen Hobbs.
Florida Man Pleads Guilty to Drug Charges as a Result of “Operation Denial”Read the Press Release
FARGO - U. S. Attorney Christopher C. Myers announced that on May 14, 2018, Anthony Santos Gomes, a/k/a Ant, originally from Rhode Island, entered a plea of guilty before U. S. District Chief Judge Brian S. Miller, Eastern District of Arkansas, to Count One of a Superseding Indictment returned on January 18, 2018, which charged Conspiracy to Possess with Intent to Distribute and Distribute Controlled Substances and Controlled Substance Analogues Resulting in Serious Bodily Injury and Death. The Defendant also entered a plea of guilty to Money Laundering Conspiracy. In addition to pleading guilty, Gomes agreed to forfeit the following property as a part of the plea agreement: a residence located in Davie, Florida; $162,836.00 in cash; 2007 Maserati Quattroporte; 2017 Polaris Sportsman XP ATV; and assorted Jewelry valued at $64,725.00.
This case came to the attention of law enforcement as part of "Operation Denial," an Organized Crime and Drug Enforcement Task Force (OCDETF) investigation into the international trafficking of fentanyl and other lethal drugs, and was significantly aided by the national and international coordination led by the multi-agency Special Operations Division (S.O.D.) near Washington D.C. as part of "Operation Deadly Merchant." The investigation started in North Dakota on Jan. 3, 2015, with the overdose death in Grand Forks of 18-year-old Bailey Henke.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; U.S. Drug Enforcement Administration; U.S. Postal Inspection Service; Grand Forks Narcotics Task Force; Royal Canadian Mounted Police; Portland, Oregon, Police Bureau – Drugs and Vice Division; Portland HIDTA Interdiction Task Force; Oregon State Police and the Grand Forks Police Department. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking organizations and those primarily responsible for the nation’s illegal drug supply.
U.S. Attorney Christopher C. Myers, Assistant U.S. Attorney Scott Kerin for the District of Oregon and Trial Attorney Adrienne Rose of the Criminal Division’s Narcotic & Dangerous Drug Section are prosecuting the cases.
Sentencing of Mr. Gomes has been set for August 6, 2018.
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Florence Man Sentenced to 42 Months on Federal Firearm ChargeRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated that Jackie Tyrell Kennedy, age 25, of Florence, was sentenced today in federal court after pleading guilty in January to being a felon in possession of a firearm and ammunition, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2). Chief United States District Judge Terry L. Wooten of Columbia sentenced Kennedy to 42 months imprisonment, which will be followed by 3 years of supervised release.
Evidence presented in court established on October 13, 2017, agents of the Federal Bureau of Investigation agents, along with officers and deputies from the Columbia Police Department, the Richland County Sheriff’s Department and the Lexington County Sheriff’s Department executed a sting operation as part of “Operation Cross County,” targeting human sex trafficking. While investigating sex trafficking at a Columbia motel, agents encountered Kennedy, who fled on foot and dropped a Cobra .380 caliber handgun along the way. Agents were able to locate the firearm and determine Kennedy’s true identity after he provided a false name. Agents also recovered additional ammunition belonging to Kennedy inside the motel room. The female inside the motel room described Kennedy as sort of like her pimp.
Kennedy is prohibited under federal law from possessing firearms and ammunition based upon his August 2017 Virginia conviction for possession of ecstasy. Kennedy was on state probation for that offense at the time of this incident.
The case was investigated by the FBI, the Columbia Police Department, the Richland County Sheriff’s Department, and the Lexington County Sheriff’s Department and was prosecuted as part of Project CeaseFire, a joint federal, state and local initiative focused upon aggressively prosecuting firearm cases in an effort to reduce violent crime and make our neighborhoods safer. Project CeaseFire is South Carolina’s implementation of Project Safe Neighborhoods (PSN), a crime reduction strategy originally launched in 2001. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority and reinstituted PSN nationwide. Assistant United States Attorney Stacey D. Haynes of the Columbia office handled the case.
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Federal Inmate Headed Back to PrisonRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, was sentenced in federal court to 24 months of incarceration followed by three years of federal supervision by the United States Probation Office on his conviction for escaping from a halfway house, United States Attorney Scott W. Brady announced today.
United States District Judge Joy Flowers Conti imposed the sentence on Anthony Lee, age 38, formerly of the Hill District section of Pittsburgh and the borough of McKees Rocks, Pennsylvania.
According to information presented to the court, the defendant was serving the end of his 10- year federal sentence for drug dealing and illegal gun possession in a halfway house when he walked away on October 23, 2016. He was later located and arrested by members of the United States Marshal Service Fugitive Task Force on November 22, 2016.
The Court noted that Lee walked away after becoming involved in an altercation with his girlfriend and a new girlfriend that left the former girlfriend bleeding from injuries to her face. The government noted that the defendant has amassed a total of 46 arrests between his first arrest at the age of 11 and his current sentencing at age 38. Those incidents resulted in 27 different criminal convictions. The government noted that Lee has spent the entire time between his first arrest and the current sentencing either: pending trial; on supervision; incarcerated; or as a fugitive - with the sole exception of three months in 2004. Lee had walked away from numerous different facilities in the past, according to evidence presented to the court.
The Court learned that Lee had been seriously injured as a result of two separate incidents where he was shot in 2001 and 2002. Although Lee claimed that the injuries from these incidents left him physically unable to work, his criminal record includes a subsequent 2004 incident where Lee and his co-defendants kicked in the door to an apartment and pointed guns at the female occupant and her children. After realizing that they had forcibly entered the wrong apartment, the defendants went to the second floor, forced entry to that apartment and pointed guns at those residents as well. One resident jumped from the second floor in an effort to escape, apparently breaking his ankle. As police arrived, Lee and his co-defendants were attempting to flee across the rooftops, but were apprehended.
Prior to imposing sentence, Judge Conti stated that Lee committed a "serious offense," that he has "never had any legitimate employment" and that he had a "bad criminal history" which warranted the current sentence.
Assistant United States Attorney Ross E. Lenhardt prosecuted this case on behalf of the government.
United States Attorney Brady commended the United States Marshal Service for the investigation leading to the successful prosecution of Lee.
Fargo Man Sentenced to Twelve Months in Federal Prison for Threatening a United States SenatorRead the Press Release
FARGO - First Assistant U.S. Attorney Keith Reisenauer announced that on May 14, 2018, US District Chief Judge Brian S. Miller, Eastern District of Arkansas, sentenced Kevin Lee Olson, age 57, Fargo, ND to 12 months and one day in a federal prison, to be followed by two years supervised release for Threatening Interstate Communications by knowingly transmitting an e-mail, for the purpose of issuing a threat to injure another person, and with knowledge that the communication would be viewed by another person as a threat. Immediately after the sentencing hearing, Olson was remanded to federal prison and further ordered to pay $100 in special assessments to the Crime Victims’ Fund.
On December 22, 2016, Olson sent an e-mail to United States Senator Heidi Heitkamp, Washington, District of Columbia, which stated: "It’s (sic) seems the only consideration one gets these days is when one becomes a criminal. I guess I should find you, you bitch, and shoot you in your red head!"
This case was investigated by US Border Patrol; US Capitol Police; Federal Bureau of Investigation; and Fargo Police Department.
Assistant United States Attorney Nicholas Chase and AUSA Janice Morley prosecuted the case.
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Dubois Man Pleads Guilty to Possession of Child PornographyRead the Press Release
JOHNSTOWN, Pa. - A resident of Dubois, Pa., pleaded guilty in federal court to a charge of possession of child pornography, United States Attorney Scott W. Brady announced today.
Glenn Bailey, 60, pleaded guilty to the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, on July 25, 2013, Bailey knowingly possessed videos and images as computer graphic files containing images of child pornography, including images which depict prepubescent minors and minors who have not attained twelve years of age, which had been shipped and transported in interstate or foreign commerce by means of a computer.
Judge Gibson scheduled sentencing for Oct. 1, 2018, at 10 a.m. The law provides for a maximum sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
The U.S. Immigration and Customs Enforcement/Homeland Security Investigations conducted the investigation that led to the prosecution of Bailey.
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.justice.gov/psc.
District Man Sentenced to Seven Years in Prison for Charges Related to 2015 Murder in Southeast WashingtonRead the Press Release
WASHINGTON – Maricco Knight, 25, of Washington, D.C., was sentenced today to seven years in prison for acting as an accessory after the fact and obstructing justice for his role in assisting a man who was wanted for murder, U.S. Attorney Jessie K. Liu announced.
Knight was found guilty by a jury of the charges in March 2018, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Judith Bartnoff. Following his prison term, he will be placed on five years of supervised release.
A co-defendant in the trial, Dominique Williams, 24, also of Washington, D.C., was found guilty of second-degree murder while armed, assault with a dangerous weapon, and related firearms offenses. He was sentenced on May 11, 2018, to 24 years in prison.
According to the government’s evidence, on Sept. 19, 2015, shortly after 1 a.m., Williams, Knight and another man pulled over a Honda Accord in the 3200 block of 28th Street SE. Williams was in the rear passenger seat, Knight was in the front passenger seat, and the third man was driving. A short distance away from the Accord, gathered in an alley, were three men and an 11-year-old boy. Williams had earlier disputes with persons who resided or sometimes gathered in the block, but none of those persons was among the group in the alley.
After the Accord pulled over, Williams leaned out of the car and fired eight shots from a 9-millimeter handgun at the group. One person was hit – Marcellus Green, 39. He was shot once and was declared dead about an hour later. The three people in the Accord drove off.
Officers with the Metropolitan Police Department (MPD) were on the scene within a few minutes. Witnesses gave the police a description of the Accord and its license plate number. At about 1:40 a.m., an officer in a marked MPD cruiser spotted the Accord, still occupied by the three men, in a different neighborhood. Before the officer could even activate his emergency equipment, the Accord began to drive off at a high rate of speed. After a 20-minute chase, during which the 9-millimeter handgun was tossed out, the Accord crashed and all three occupants fled on foot. Within two minutes, the driver and Knight were stopped.
Williams, however, got away. An arrest warrant was issued for him three months later and he was ultimately apprehended on July 20, 2016, at the residence of Knight’s girlfriend. During the search for Williams, according to the government’s evidence, Knight assisted in helping Williams hide out despite the fact that he was told repeatedly by law enforcement that Williams was wanted for the murder.
In announcing the sentence, U.S. Attorney Liu and Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Forensic Operation/Program Specialist Benjamin Kagan-Guthrie; Litigation Technology Specialist Leif Hickling; Paralegal Specialist Alesha Matthews; Investigative Analyst Zachary McMenamin; former Supervisory Victim/Witness Services Coordinator David Foster; Victim/Witness Security Specialist Lesley Slade; Victim/Witness Advocate Marcia Rinker, and Interns Korey Johnson and Shani Brown.
Finally, they commended the work of Assistant U.S. Attorney Michael Liebman, who investigated and prosecuted the case, and Assistant U.S. Attorney Ahmed Baset, who prosecuted the case.
Defendant Sentenced for Firearm Possession in Road Rage IncidentRead the Press Release
Greensboro, N.C. – United States Attorney Matthew G.T. Martin of the Middle District of North Carolina announced that Billy Ray Dickerson, Jr. was sentenced to 92 months confinement on May 15, 2018, by the Honorable Judge Thomas D. Schroeder for felon in possession of a firearm.
According to court documents, Dickerson, age 46, of Butner, North Carolina, was driving a plumbing van in Durham on April 4, 2017, when he aggressively tailgated another vehicle. The other driver pulled over to let Dickerson pass. Instead, Dickerson pulled beside the man, threatened to “send him to his maker,” and called him a racial slur several times before pulling out a handgun and firing it as the other driver sped off.
Dickerson then wrecked into another vehicle and was seen throwing items in the back of the van. A Davis Industries .380 caliber pistol, model P-380 was located in the back of the van. Dickerson was arrested that day on several related state charges. Before a search warrant could be executed to retrieve evidence of gunshot residue from his hands, Dickerson urinated on the floor and rubbed his hands in the urine, in an unsuccessful attempt to thwart the test for gunshot residue.
Dickerson has prior federal convictions for drug and counterfeiting offenses. In 1997, the defendant was convicted of Felony Conspiracy to Possess with Intent to Distribute Cocaine and Marijuana and Felony Structuring Transactions in the Eastern District of North Carolina and sentenced to 10 years imprisonment. In 2012, Dickerson pled guilty to Felony Passing, Uttering, and Publishing Counterfeit Obligations and was sentenced to 10 months imprisonment.
At sentencing, the Court heard evidence of two other uncharged incidents in December of 2016 and February of 2017 involving Dickerson. In both incidents, Dickerson brandished a handgun, made threats, and discharged a handgun. In addition to the 92 months imprisonment, Dickerson was ordered to serve three years of supervised release at the conclusion of his prison sentence.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Durham County Sheriff’s Office. Special Assistant United States Attorney Kennedy Gates prosecuted the case.
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Defendant Pleads Guilty in Fraud and Money Laundering CaseRead the Press Release
SAN JUAN, Puerto Rico– Defendant Oscar Rodríguez-Torres pleaded guilty before United States Magistrate Judge Camille Vélez-Rivé to six counts including conspiracy, theft of government property, mail fraud, wire fraud, and conspiracy to launder money, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico.
In June of 2017, Oscar Rodríguez-Torres, along with six other individuals were charged for their participation in a conspiracy to steal federal funds involving fraudulently obtained contracts from the P.R. Department of Education (PR DOE) and the P.R. Public Housing Authority (PR PHA) through the P.R. Department of Sports and Recreation (PR DRD).
Defendants Edgardo Vázquez-Morales and Miguel Sosa-Suárez have already pleaded guilty. Change of plea hearings have been scheduled for Cecilia Amador-López, and Juan Carlos Ortiz-Nieves, on May 24, 2018 and June 12, 2018 respectively. Ramón Orta-Rodríguez and Irving Riquel Torres-Rodríguez, are awaiting trial.
As a part of the guilty plea, defendant Oscar Rodríguez-Torres admitted to a statement of facts which included the following:
- Rosso Group, Inc. (“Rosso”) was a domestic for-profit corporation organized under the laws of Puerto Rico on or about February 8, 2013. Oscar Rodríguez-Torres was the Incorporator, President, Secretary, Treasurer, and sole owner of Rosso. Between October 2013 and October 2016, pursuant to the contracts reached between PR DRD and Rosso, payments totaling approximately $8,767,446.52 were made by the P.R. Treasury Department (Hacienda), on behalf of PR DRD, to Rosso.
- Oscar Rodríguez-Torres met in Puerto Rico after the November 2012 election with members of the conspiracy to discuss how Ramon Orta-Rodríguez could obtain the position of Secretary of PR DRD and to devise a scheme to enrich themselves utilizing prospective covenants between PR DRD and the PR DOE. Upon being named Secretary of PR DRD, Ramon Orta-Rodríguez agreed with members of the conspiracy to submit multiple work plans for federal funding on behalf of the PR DRD to the PR DOE.
- Ramón Orta-Rodríguez, Oscar Rodríguez-Torres, Miguel Sosa-Suarez, Irving Riquel Torres-Rodríguez and Cecilia Amador López agreed that if a proposal was approved by PR DOE, Irving Riquel Torres-Rodríguez and Cecilia Amador-López would administer the project, Oscar Rodríguez-Torres would finance the project, and Miguel Sosa Suarez would address the budget and accounting.
- Oscar Rodríguez-Torres, Miguel Sosa-Suarez, and Irving Riquel Torres-Rodríguez agreed to split the profits from the projects. Oscar Rodríguez-Torres made payments, totaling approximately $1,317,942.88 from Rosso’s bank accounts to himself utilizing funds obtained from PR DRD.
- Oscar Rodríguez-Torres made payments, totaling approximately $1,175,228.08 from Rosso’s bank accounts to Miguel Sosa Suarez utilizing funds obtained from PR DRD. Oscar Rodríguez-Torres made a payment totaling approximately $60,000 from Rosso’s bank account XXXXX6498, using a check payable to cash, to a bank account controlled by Miguel Sosa-Suarez at BPPR (Account XXXXX1989). Oscar Rodríguez-Torres made payments, totaling approximately $762,642.50 from Rosso’s bank accounts to Irving Riquel Torres-Rodríguez utilizing funds obtained from PR DRD. Oscar Rodríguez-Torres made payments, totaling approximately $554,246.89 from Rosso’s bank accounts to AESC utilizing funds obtained from PR DRD. Oscar Rodríguez-Torres made a payment totaling approximately $300,000 from Rosso’s bank account XXXXX6498, to Global Sports Initiative (“Global”).
- The covenants between the PR DOE and the PR DRD signed by Ramón Orta-Rodríguez contained a clause that prohibited the PR DRD from completely subcontracting the activities subject to the covenant. In violation of the covenants, Ramón Orta-Rodríguez signed contracts on behalf of PR DRD with Rosso to provide all of the services required by the covenants with the PR DOE. No competitive bidding process was used for the contracts awarded by PR DRD to Rosso.
- Ramon Orta-Rodríguez, as Secretary of PR DRD, subcontracted the services to Rosso at a lower price than PR DRD had contracted to be paid by PR DOE. Ramón Orta-Rodriguez intended to obtain net proceeds for PR DRD from the covenants with PR DOE by subcontracting all of the services to Rosso at a lower cost.
- Ramón Orta-Rodríguez, as Secretary of the PR DRD, solicited and obtained federal funding from US HUD via PRPHA to pay for one television program related to activities in public housing programs in Puerto Rico. Ramón Orta-Rodríguez contracted with Rosso for the television production services of one television program related to activities in public housing programs. The contracts awarded by Ramón Orta-Rodríguez to Rosso were not subject to competitive bidding.
- Individual A provided services for two distinct and separate television programs and billed Rosso for the totality of the services. The two television programs were 1) VEA and 2) DRD.TV. Individual A increased the invoice amount from approximately sixteen thousand seven hundred fifty dollars $16,750 to approximately thirty nine thousand four hundred seventy dollars $39,470 per episode for both television programs. Individual A sent invoices to personnel of Rosso based on a cost of approximately $39,470 per episode for both television programs. Rosso personnel would send the inflated invoice to PR DRD so that a payment would be processed to Individual A.
- In or about 2016, Oscar Rodríguez-Torres directed Individual A to make payments back to Rosso in the amount of the difference between the inflated invoice and actual cost to Individual A to produce the two television programs. By increasing the invoices submitted by Individual A to Rosso, members of the conspiracy caused the fraudulent submission of invoices for payment with federal funds. Oscar Rodríguez-Torres caused payments totaling approximately $417,623.32 to be made by Individual A to Rosso.
- Members of the conspiracy took steps to create fake bids and documents containing false information in an attempt to conceal the manner in which Ramon Orta Rodriguez awarded contracts to Rosso. Edgardo Vazquez Morales solicited and received payments from Oscar Rodríguez-Torres for the purported solicitation of fake bids from other companies as a part of the scheme to conceal the manner in which Ramon Orta-Rodríguez awarded contracts to Rosso.
“Public corruption continues to erode the trust between government officials and our citizens. These defendants robbed Puerto Rican taxpayers of more than $3.5 million,” said U.S. Attorney Rosa Emilia Rodríguez-Vélez. “These offenses are reprehensible, more so in light of Puerto Rico’s fiscal crisis. I commend the commitment of the agents, financial analysts, and prosecutors whose tireless work made these convictions possible.”
The case was investigated by the United States Department of Education Office of Inspector General in conjunction with the FBI’s San Juan Division and the United States Department of House and Urban Development Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Seth Erbe.
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Cumberland County Man Sentenced to Five Years’ Imprisonment for Possession of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Gary Stinson Smith, age 61, of Mechanicsburg, Pennsylvania, was sentenced on May 14, 2018, to 60 months’ imprisonment, a $50,000 fine and 10 years supervised release by United States District Court Judge John E. Jones, III, for possession of child pornography.
According to United States Attorney David J. Freed, Smith pled guilty in November 2016, and admitted to possessing images depicting child pornography. After obtaining a search warrant, law enforcement officers searched the defendant’s computer in November 2015 and located over 1,000 images and 16 videos containing both child pornography and erotica.
Judge Jones noted that this is not a victimless crime and ordered Smith to report to the Bureau of Prisons on May 18, 2018.
This case was investigated by the United States Postal Inspection Service and the Pennsylvania Office of the Attorney General. Assistant United States Attorney Daryl Bloom prosecuted the case.
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."
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Convicted Felon Sentenced to Seven and a Half Years in Prison for Stealing Firearms from Cargo TrainRead the Press Release
CHICAGO — A federal judge today sentenced a convicted felon to seven and a half years in prison in connection with the theft of more than a hundred firearms from a cargo train on the South Side of Chicago.
On April 12, 2015, ALEXANDER PEEBLES and seven other men burglarized the cargo train while it was parked in a railyard in Chicago’s Avalon Park neighborhood. The cargo train was en route from a Ruger factory in New Hampshire to Spokane, Wash. The thieves broke locks on a train car and spent over four hours unloading approximately 104 firearms, which they transported to a stash house in the city’s Englewood neighborhood.
To date, law enforcement has recovered 33 of the stolen firearms at various locations, including 17 at crime scenes in Chicago and the surrounding area.
All eleven defendants charged in the case have now been sentenced. The other defendants are: FREDERICK LEWIS (sentenced to 15 years in prison); TERRY WALKER (12 and a half years in prison); ANDREW SHELTON (ten years in prison); PATRICK EDWARDS (eleven years in prison); NATHAN DRIGGERS (eight years in prison); DANDRE MOODY (seven years and nine months in prison); WARREN GATES (five years and three months in prison); ELGIN LIPSCOMB (five years in prison); MARCEL TURNER (four years in prison); and LORI SHELTON (three years of probation).
Peebles, 47, of Chicago, pleaded guilty in 2016 to one count of illegal possession of a firearm by a felon, and one count of possession of a stolen firearm. U.S. District Judge John J. Tharp Jr. imposed the 90-month sentence in federal court in Chicago.
The sentencing was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Celinez Nunez, Special Agent-in-Charge of the Chicago Field Division of the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives. The Chicago Police Department and the Norfolk Southern Railroad Police Department provided valuable assistance.
The government is represented by Assistant U.S. Attorney Christopher V. Parente.
Colorado Attorney Involved in Stock "Pump and Dump" Scheme Sentenced to 3 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIANE DALMY, 63, of Denver, Colorado, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for her role in a securities fraud scheme.
According to court documents and statements made in court, DALMY, an attorney, performed securities-related legal work on behalf of several public companies, including Mammoth Energy Group, Inc., a company that later became known as Strategic Asset Leasing Inc.; and Fox Petroleum, Inc. (the “Subject Companies”). Between approximately January 2009 and July 2016, DALMY conspired with others, including William Lieberman, of Boca Raton, Florida, and Christian Meissenn, of Suffield, Connecticut, to defraud investors through a stock “pump and dump” scheme. During the course of the conspiracy, DALMY acted largely at Lieberman’s direction.
As part of the scheme, Lieberman, Meissenn and others induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies, which were essentially shell companies with virtually no legitimate business activities, were controlled by Lieberman and others. After the hype led to artificially-inflated share prices for the company’s stock, Lieberman, Meissenn and others sold their own large positions in the stock at a profit. They then ended the promotion and allowed the share price to plummet, leaving investors holding worthless and unsalable stock. As a result, victim investors lost millions of dollars.
DALMY participated in the conspiracy by writing, and permitting Lieberman to write in her name, fraudulent opinion letters that were used to unrestrict the co-conspirators’ stock so that the stock could be freely traded on the open market (without having to register the stock with the Securities and Exchange Commission). The opinion letters were materially false in various respects, including as to whether the issuing company was a shell company, whether the shareholder was an affiliate of the issuer, whether the transactions described in the letters actually had occurred, and whether DALMY had performed the due diligence that she described in the letters. DALMY also ghost-wrote similarly fraudulent opinion letters for the Subject Companies in another Colorado attorney’s name and permitted Lieberman to do so. These included “adequacy” letters that were posted on a website maintained by an electronic securities marketplace. In general, an “adequacy” letter, which is intended to be relied upon by investors in making investment decisions, accompanies a public filing by an issuer and states that, after appropriate investigation, it is the authoring attorney’s opinion that adequate current information about the issuer is publicly available for investors to review.
At times, DALMY provided the co-conspirators with capital by advancing money from her Lawyer Trust Account (“IOLTA”). These funds belonged to other clients of DALMY’s law practice who did not know that their funds had been advanced to the co-conspirators by DALMY.
Finally, between February 2015 and July 2016, DALMY laundered a portion of the proceeds of the scheme on behalf of the co-conspirators. DALMY helped Lieberman to incorporate and open bank accounts for a private company, Queen Asia Pacific Ltd. (“Queen Asia”), which was controlled by Lieberman. These bank accounts were used to receive proceeds of the scheme from a brokerage account in Queen Asia’s name. DALMY periodically received money in Queen Asia’s bank accounts, transferred those funds to her IOLTA, and then transferred the funds again to Lieberman, Meissenn, and their network of stock promoters. In total, DALMY laundered approximately $825,000 on behalf of the co-conspirators through Queen Asia’s bank accounts and her IOLTA.
DALMY’s total gain from her participation in this conspiracy, and related legal work for the Subject Companies, was approximately $30,000.
Judge Meyer ordered DALMY to pay $2 million in restitution.
On February 6, 2018, DALMY pleaded guilty to one count of conspiracy.
Lieberman, Meissenn and four other individuals also pleaded guilty to various offenses stemming from this scheme.
On January 20, 2017, Corey Brinson, a Hartford-based attorney, was sentenced to 36 months of imprisonment and, on September 27, 2017, Damian Delgado, also known as “Michael Neumann,” of Orlando, Florida, was sentenced to 84 months of imprisonment. On May 7, 2018, Brian Ferraioli, of Sayville, N.Y., and Thomas Heaphy, Jr., of East Moriches, N.Y., were each sentenced to 72 months of imprisonment for their roles in this scheme and an unrelated investment fraud scheme. Meissenn and Lieberman await sentencing.
DALMY, who is released on a $100,000 bond, was ordered to report to prison on June 14, 2018.
This investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Colorado Attorney Involved in Stock "Pump and Dump" Scheme Sentenced to 3 Years in Federal PrisonRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DIANE DALMY, 63, of Denver, Colorado, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 36 months of imprisonment, followed by three years of supervised release, for her role in a securities fraud scheme.
According to court documents and statements made in court, DALMY, an attorney, performed securities-related legal work on behalf of several public companies, including Mammoth Energy Group, Inc., a company that later became known as Strategic Asset Leasing Inc.; and Fox Petroleum, Inc. (the “Subject Companies”). Between approximately January 2009 and July 2016, DALMY conspired with others, including William Lieberman, of Boca Raton, Florida, and Christian Meissenn, of Suffield, Connecticut, to defraud investors through a stock “pump and dump” scheme. During the course of the conspiracy, DALMY acted largely at Lieberman’s direction.
As part of the scheme, Lieberman, Meissenn and others induced investors to purchase securities by making false and misleading representations in calls, emails and press releases concerning the securities and the issuing companies, thereby causing the price of those securities to become falsely inflated. The issuing companies, which were essentially shell companies with virtually no legitimate business activities, were controlled by Lieberman and others. After the hype led to artificially-inflated share prices for the company’s stock, Lieberman, Meissenn and others sold their own large positions in the stock at a profit. They then ended the promotion and allowed the share price to plummet, leaving investors holding worthless and unsalable stock. As a result, victim investors lost millions of dollars.
DALMY participated in the conspiracy by writing, and permitting Lieberman to write in her name, fraudulent opinion letters that were used to unrestrict the co-conspirators’ stock so that the stock could be freely traded on the open market (without having to register the stock with the Securities and Exchange Commission). The opinion letters were materially false in various respects, including as to whether the issuing company was a shell company, whether the shareholder was an affiliate of the issuer, whether the transactions described in the letters actually had occurred, and whether DALMY had performed the due diligence that she described in the letters. DALMY also ghost-wrote similarly fraudulent opinion letters for the Subject Companies in another Colorado attorney’s name and permitted Lieberman to do so. These included “adequacy” letters that were posted on a website maintained by an electronic securities marketplace. In general, an “adequacy” letter, which is intended to be relied upon by investors in making investment decisions, accompanies a public filing by an issuer and states that, after appropriate investigation, it is the authoring attorney’s opinion that adequate current information about the issuer is publicly available for investors to review.
At times, DALMY provided the co-conspirators with capital by advancing money from her Lawyer Trust Account (“IOLTA”). These funds belonged to other clients of DALMY’s law practice who did not know that their funds had been advanced to the co-conspirators by DALMY.
Finally, between February 2015 and July 2016, DALMY laundered a portion of the proceeds of the scheme on behalf of the co-conspirators. DALMY helped Lieberman to incorporate and open bank accounts for a private company, Queen Asia Pacific Ltd. (“Queen Asia”), which was controlled by Lieberman. These bank accounts were used to receive proceeds of the scheme from a brokerage account in Queen Asia’s name. DALMY periodically received money in Queen Asia’s bank accounts, transferred those funds to her IOLTA, and then transferred the funds again to Lieberman, Meissenn, and their network of stock promoters. In total, DALMY laundered approximately $825,000 on behalf of the co-conspirators through Queen Asia’s bank accounts and her IOLTA.
DALMY’s total gain from her participation in this conspiracy, and related legal work for the Subject Companies, was approximately $30,000.
Judge Meyer ordered DALMY to pay $2 million in restitution.
On February 6, 2018, DALMY pleaded guilty to one count of conspiracy.
Lieberman, Meissenn and four other individuals also pleaded guilty to various offenses stemming from this scheme.
On April 13, 2017, Corey Brinson, a Hartford-based attorney, was sentenced to 36 months of imprisonment and, on September 27, 2017, Damian Delgado, also known as “Michael Neumann,” of Orlando, Florida, was sentenced to 84 months of imprisonment. On May 7, 2018, Brian Ferraioli, of Sayville, N.Y., and Thomas Heaphy, Jr., of East Moriches, N.Y., were each sentenced to 72 months of imprisonment for their roles in this scheme and an unrelated investment fraud scheme. Meissenn and Lieberman await sentencing.
DALMY, who is released on a $100,000 bond, was ordered to report to prison on June 14, 2018.
This investigation is being conducted by the Federal Bureau of Investigation and Internal Revenue Service – Criminal Investigation Division, with assistance from the Connecticut Department of Banking and the Hartford and Stamford Police Departments. This case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Citizens with information that may be helpful to this ongoing investigation, or who believe they may have been victimized by this scheme, are encouraged to contact the FBI at (203) 777-6311.
Claimed Naturopathic Doctor Sentenced to 75 monthsRead the Press Release
BIRMINGHAM –A federal judge today sentenced a woman who falsely claimed to be a naturopathic doctor to 75 months for defrauding patients at a Hoover clinic in 2015, announced U.S. Attorney Jay E. Town and U.S. Postal Inspection Service Inspector in Charge Adrian Gonzalez.
U.S. District Judge Madeline Hughes Haikala sentenced ISABEL KESARI GERVAIS, 61, on one count of wire fraud affecting a financial institution, one count of aggravated identity theft and one count of making false statements. Gervais pleaded guilty to the charges in July 2017. She must forfeit $108,146 as proceeds of illegal activity.
“Through lies and deceit, this defendant took advantage of desperately ill people in Alabama and other states,” Town said. “The U.S. Postal Inspection Service did great work in uncovering this fraud and finding the evidence to make this case. Now, the fake doctor will spend deserved time in a real prison cell.”
“It is hard to comprehend the devastation and loss of hope victims feel after realizing that someone trusted to heal them was committing fraud against them," Gonzalez said. “Although this defendant operated her scheme for several years, when she decided to use the U.S. Postal Service to further her scam, she came to the attention of postal inspectors. We thank the U.S. Attorney’s Office for the dedication and support it gave postal inspectors in bringing this pitiless scammer to justice.”
Using the alias, Dr. Rose Starr, Gervais defrauded patients at the Euro Med Klinic by lying about her name, her credentials, her experience, her license to practice medicine, and the services she could provide.
As part of Gervais’ guilty plea, she acknowledged that over the last 15 years she operated multiple clinics in Alabama, Georgia, Arkansas and Kansas using her current name and various aliases that often employed different spellings of the name Debra Lynn Goodman. The clinics included Sagewood Medical Clinic in Montgomery and Springdale, Ark., the Chiron Clinic in Marietta, Ga., DRI Enterprises in Atlanta, Ascension Medical Health in various locations in Arkansas, and AMHC in Leawoood, Kan. At all the clinics, Gervais falsely represented herself as a licensed doctor with extensive experience and various degrees who used naturopathic medicine to cure people of various illnesses, including cancer.
The Alabama and Arkansas medical boards investigated her fraudulent activity; Arkansas state authorities prosecuted her; and she has faced civil monetary claims and actions in multiple states, but until today, she has never been sentenced to significant prison time. To avoid legal action and detection, Gervais had abandoned rental properties, changed locations, changed business names and adopted aliases.
Gervais opened the Euro Med Klinic in Hoover in 2015 as Dr. Starr, claiming she had years of experience and was licensed to practice medicine in Alabama and throughout the world. She promised patients, including cancer sufferers, at the Hoover clinic that she could provide various medical services, including DNA tests that she did not have the technology to conduct, according to court records. Gervais ran some tests on patients, prescribed various substances and, through her misrepresentations about licensure and qualifications, fraudulently induced patients to pay her thousands of dollars.
Gervais misappropriated the identity of one patient at the Hoover clinic in order to charge the patient’s credit card without consent. She also misappropriated the identity of another individual and used it fraudulently to set up a post office box, according to court records.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Erica Williamson Barnes prosecuted.
Citizen of Mexico Sentenced for Illegal Re-entryRead the Press Release
ALBANY, NEW YORK – Alfredo Maldonado-Garcia, age 18, and a citizen of Mexico, was sentenced today to time served (35 days in jail), for illegal re-entry into the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Maldonado-Garcia admitted that he was removed from the United States to Mexico on February 28, 2018. On April 10, 2018, ICE Officers arrested Maldonado-Garcia in Walton, Delaware County, New York.
Following his sentencing, Maldonado-Garcia was remanded to the custody of the Department of Homeland Security, for removal proceedings.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Bookkeeper Charged in Manhattan Federal Court with Embezzling over $3.4 Million from Literary Agency and Its ClientsRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced today that DARIN WEBB was arrested this morning on wire fraud charges stemming from his scheme to defraud a Manhattan-based literary agency (the “Agency”) and its clients of more than $3.4 million. WEBB provided bookkeeping services for the Agency and carried out his scheme by making unauthorized transfers from the Agency’s bank accounts, and then making changes to the Agency’s accounting system to evade detection. WEBB was arrested this morning in Manhattan, and will be presented today before United States Magistrate Judge Barbara C. Moses.
U.S. Attorney Geoffrey S. Berman said: “As alleged, Darin Webb, a bookkeeper for a firm in the book business, cooked the firm’s books to conceal a multimillion-dollar embezzlement. Now he is in custody and facing prosecution.”
FBI Assistant Director William F. Sweeney Jr. said: “As alleged, Darin Webb was responsible for the financial welfare of the agency whose accounts he oversaw, but instead of upholding his fiscal responsibilities, he spent his time swindling more than $3.4 million from his victims. Cooking the books rarely pays off in the long run, as the defendant has learned today.”
According to the Complaint unsealed today in Manhattan federal court[1]:
From in or about 2001 through in or about March 2018, DARIN WEBB, the defendant, was engaged as a bookkeeper for the Agency. From at least January 2011 through March 2018, WEBB used his position as the Agency’s bookkeeper to transfer more than $3.4 million of funds, belonging to the Agency and the Agency’s clients, from the Agency’s bank accounts to bank accounts that WEBB controlled. In order to evade detection of his criminal conduct and carry out his scheme, WEBB made changes to the Agency’s accounting records to disguise the nature of the transfers.
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WEBB, 47, of Manhattan, is charged with one count of wire fraud, which carries a maximum sentence of 20 years in prison and a maximum fine of $250,000, or twice the gross gain or loss from the offense. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant would be determined by the Court.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorney Christine I. Magdo is in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
Berkeley County woman indicted on firearms chargesRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Hedgesville, West Virginia woman is facing multiple firearms charges after being indicted by a federal grand jury today, United States Attorney Bill Powell announced.
Shauntae Cherie Placko, age 29, was indicted on two counts of “False Statement During Purchase of a Firearm” and one count of “False Statement or Representation Made to a Department or Agency of the United States.” Placko is accused of making false statements when purchasing a pistol and a rifle from two different firearms dealers. She is also accused of lying to an ATF agent. The crimes allegedly took place in October 2017 and February 2018 in Berkeley County.
Placko faces up to 10 years incarceration and a fine of up to $250,000 for each of the firearms counts, and faces up to five years incarceration and a fine of up to $250,000 for the false statement count. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
This case was brought as part of Project Safe Neighborhoods (PSN), 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. Attorney General Jeff Sessions 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, Attorney General Sessions 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 Omps-Botteicher is prosecuting the cases on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated.
An indictment is merely an accusation. A defendant is presumed innocent unless and until proven guilty.
Bay Area Methamphetamine Trafficker Sentenced to 20 Years in PrisonRead the Press Release
SACRAMENTO, Calif. — U.S. District Judge John A. Mendez sentenced Gordon Owen Miller, 60, of Clayton, to 20 years in prison for methamphetamine trafficking, U.S. Attorney McGregor W. Scott announced.
On February 7, 2018, after a five-day trial, a federal jury found Miller and his co‑defendant Donnie Joe Phillips, 65, of Concord, guilty of conspiracy to distribute methamphetamine. Miller was found guilty of two counts of distribution and two counts of possession with intent to distribute methamphetamine. Phillips was also found guilty of eight counts of distribution and two counts of possession with intent to distribute methamphetamine.
According to trial evidence, between June 2014 and February 2015, Phillips and Miller supplied methamphetamine to co-defendant Phyliss Mosher, 51, of Vallejo, who supplied it to an undercover agent. The drug deals took place in Solano and Yolo Counties. On January 25, 2018, Mosher was sentenced to 15 years in prison after she pleaded guilty to the methamphetamine trafficking conspiracy on May 9, 2017. Phillips is scheduled to be sentenced before Judge Mendez on June 19, 2018.
This case is the product of an investigation by the Drug Enforcement Administration, the El Dorado County Sheriff’s Office, the El Dorado County District Attorney’s Office, the California Highway Patrol, the Vallejo Police Department, and the California Department of Corrections and Rehabilitation. Assistant U.S. Attorneys Jason Hitt and Jill Thomas are prosecuting the case.
This case was part of an Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program was established in 1982 to conduct comprehensive, multilevel attacks on major drug trafficking and money laundering organizations. 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.
Attorney General and SDTX U.S. Attorney Recognize Law Enforcement Service and Sacrifice During National Police WeekRead the Press Release
HOUSTON - Attorney General Jeff Sessions and U.S. Attorney Ryan K. Patrick recognized the service and sacrifice of federal, state, local and tribal police officers on the occasion of National Police Week and Peace Officer Memorial Day and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
“This day and week is set aside to remember the men and women who gave their lives protecting our communities,” said Patrick. “Ninety-three sworn officers and agents died in the line of duty last year. We mourn those taken from us. As a U.S. Attorney’s Office, we sometimes have the duty to bring justice for the families of these fallen heroes and we rededicate ourselves to carrying forward their legacy.”
“One officer death is too many,” said Sessions. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
Sessions also posted a video message on Police Week.
In 2017, the FBI reports seven Texas sworn officers were feloniously killed in the line of duty and four more in line of duty accidents. The Southern District had three line of duty deaths last year.
Clint Greenwood
Harris County Constable Pct. 3
End of Watch - 4/3/17On April 3 at 7 a.m., Clint Greenwood - an assistant chief deputy with the Harris County Constable’s Office in Baytown - was killed in an unprovoked attack in a courthouse parking lot as he arrived for work. The 57-year-old was a veteran of law enforcement with nearly 29 years of experience. He was gathering items from his vehicle when he was shot twice, once in the side of his head and once in his front upper torso/chest, above his body armor. Greenwood was able to remain standing, pointing out the direction the subject fled and warning other officers of the continued danger. He was transported to the trauma center at a local hospital where he succumbed to the wound to the side of his head.
Greenwood served as the commander of the Internal Affairs unit. A subsequent investigation revealed the subject was angry about a complaint he had filed that was not resolved to his satisfaction. The subject planned, stalked and waited for Greenwood to arrive at work in order to ambush him with his 9 mm semiautomatic handgun. Video footage from the courthouse parking lot showed the subject had been at the parking lot the day before, casing it to see where the chief parked his vehicle. The 64-year-old subject had a criminal history including a drug law violation and a violent crime. He committed suicide the following day.
Steve Albert Perez
Houston Police Department
End of Watch - 8/27/17Sergeant Steve Perez drowned after his patrol car was caught in floodwaters in the aftermath of Hurricane Harvey. Perez left home at approximately 4:00 a.m. in an attempt to report to his duty station in the downtown area, but was unable to reach it due to impassable roads caused by extreme flooding. He spent more than two hours trying to find a route, but when he could not, he dispatched that he would follow department protocol and report to the nearest station in Kingwood.
As he attempted to reach Kingwood, his patrol car was washed away in high water in the area of Hardy Tollway and Beltway 8. His body was recovered by members of Houston Police Department dive team and citizens Aug. 29, 2017.
Perez had served with the Houston Police Department for 34 years and was just days shy of his 61st birthday. He was a U.S Army veteran and is survived by his wife, two adult children and father-in-law.
Elias Martinez Jr.
METRO Police Department
End of Watch - 9/17/17Police Officer Elias "Sonny" Martinez succumbed to injuries sustained in a motorcycle crash while escorting permitted loads on Gulf Freeway in the area of FM 646 in League City.
He was passing the trucks in the escorted convoy when he laid his motorcycle down in an attempt to avoid a collision. He struck the rear of one of the trucks, causing him to suffer severe injuries. He was flown to Hermann Memorial Hospital where he remained until succumbing to his injuries a week later.
Officer Martinez had served with the Metropolitan Transit Authority Police Department for 25 years. He is survived by his wife and two children.
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released last week.
During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
The names of all 93 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.
For more information about other National Police Week events, please visit http://www.policeweek.org.
To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
Attorney General Sessions and U.S. Attorney Mike Stuart Recognize Law Enforcement Service and Sacrifice During National Police WeekRead the Press Release
FBI Releases 2017 Statistics on of Law Enforcement Officers Killed and Assaulted
CHARLESTON, W.Va. – Attorney General Sessions and Mike Stuart, United States Attorney for the Southern District of West Virginia recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.
“One officer death is too many,” Attorney General Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
“My greatest honor as United States Attorney is working with our federal, state and local law enforcement partners,” said United States Attorney Mike Stuart. “These brave men and women risk their lives every single day for our safety. We owe them our deepest gratitude, not just during National Police Week, but every week of the year.”
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents. Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts. For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
The names of all 93 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. A Southern District of West Virginia law enforcement officer was added this year: Lieutenant Aaron Lloyd Crook, Bluefield Police Department.
For more information about other National Police Week events, please visit www.policeweek.org.
To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
# # #
Attorney General Sessions and U.S. Attorney Mike Hurst Recognize Law Enforcement Service and Sacrifice During National Police WeekRead the Press Release
Jackson, Miss. – Attorney General Sessions and U.S. Attorney Mike Hurst recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week, and commented on the FBI's 2017 Law Enforcement Officers Killed and Assaulted report.
"One officer death is too many," Attorney General Sessions said. "While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks."
"This week, we honor the bravery, commitment and sacrifice of our men and women in law enforcement. They put their lives on the line every single day for our safety. Let’s use this week to recommit ourselves to do the same by honoring their service all year long and training up the next generation to honor them as well. Their service is steadied and made stronger through our unwavering support and gratitude. Blessed are the peacemakers!" said U.S. Attorney Hurst.
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.
For the full comprehensive data tables about these incidents and brief narratives describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report, released today.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
The names of all 93 fallen officers nationwide will be formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018. So that people across the country can experience this unique and powerful ceremony, the vigil will be livestreamed beginning at 8:00 p.m. EDT on May 13th. To register for this free online event, visit www.LawMemorial.org/webcast.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.
For more information about other National Police Week events, please visit www.policeweek.org.
To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
Attorney General Sessions and U.S. Attorney D. Michael Dunavant Recognize Law Enforcement Service and Sacrifice during National Police WeekRead the Press Release
Memphis, TN – Attorney General Sessions and U.S. Attorney D. Michael Dunavant for the Western District of Tennessee recognized the service and sacrifice of federal, state, local and tribal police officers during National PoliceWeek.
"One officer death is too many," Attorney General Sessions said. "While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump’s Executive Order to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priories will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks."
U.S. Attorney D. Michael Dunavant said: "Law enforcement officers are society’s problem solvers when no other solution is apparent or available. These brave men and women run toward danger as we all run away, in order to protect us. The U.S. Attorney’s Office is proud to serve alongside our federal, state, and local law enforcement partners in order to enforce the rule of law and promote public safety. We honor the memory of those officers who paid the ultimate sacrifice in the line of duty, and we thank them for their valor which gives us hope for a safer America."
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2017, there were 46 law enforcement officers killed in line-of-duty incidents because of felonious acts – this is a 30 percent decrease from 2016 when 66 law enforcement officers were killed in line-of-duty incidents because of felonious acts.
For the full comprehensive data tables about these incidents and brief narrative describing the fatal attacks and selected assaults resulting in injury, please see the 2017 edition of Law Enforcement Officers Killed and Assaulted report.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15 as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
For more information about other National Police Week events, please visit www.policeweek.org.
Armenian National Pleads Guilty to Gas Pump Skimming SchemeRead the Press Release
ALEXANDRIA, Va. – An Armenian national and resident of Glendale, California, pleaded guilty today to conspiracy to commit bank and wire fraud and aggravated identity theft in connection with his involvement in obtaining and using thousands of stolen credit and debit card numbers.
According to court documents, Armen Saplekchian, 37, conspired with at least six other individuals to steal at least 18,000 credit and debit cards numbers, as well as the personal identification numbers associated with many of the stolen card numbers, through the use of electronic devices known as “skimmers.” Specifically, conspirators attached skimmers to gas pump payment systems, collected the information captured when payment cards were swiped at the compromised gas pumps by unwitting customers, and encoded the stolen card numbers onto physical payment cards. Thereafter, conspirators used the physical cards encoded with stolen card information throughout northern Virginia, Washington, D.C., and Maryland, making thousands of dollars’ worth of fraudulent ATM withdrawals and U.S. Postal Service money order purchases.
On April 4, a federal grand jury returned a 13-count indictment charging Saplekchian, Timburek Khasanov, 37, and Mushegh Melkonyan, 28, with bank fraud, wire fraud, conspiracy to commit bank and wire fraud, and aggravated identity theft, as well as Anatoly Zinchenko, 47, with conspiracy to commit bank and wire fraud. In addition to Saplekchian, whose sentencing is scheduled for August 31, the following four individuals have pleaded guilty to offenses arising from their unlawful participation in the gas pump skimming scheme described above:
Name, Age
City, State
Convictions
Sentencing Date
Rudolf Mekhakian (aka Rudolph Mekhakain), 31
Santa Monica, CA
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
August 10
Radik Karapetyan, 25
North Hollywood, CA
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
July 20
Siranush Yengibaryan, 23
Van Nuys, CA
Conspiracy to Commit Bank and Wire Fraud; Aggravated Identity Theft
July 27
Anatoly Zinchenko, 47
Philadelphia, PA
Conspiracy to Commit Bank and Wire Fraud
August 3
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Patrick J. Lechleitner, Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, D.C., Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, Joseph W. Cronin, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Col. Edwin Roessler, Jr. Chief of Fairfax County Police Department made the announcement. Assistant U.S. Attorneys Alexander P. Berrang, Kellen S. Dwyer, and Special Assistant U.S. Attorney Troy A. Edwards 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 Nos. 1:18-cr-136, 1:18-cr-143, 1:18-cr-144, and 1:18-cr-149.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Akron man sentenced to life in prison for role in methamphetamine conspiracyRead the Press Release
An Akron man was sentenced to life in prison for his role in a conspiracy to distribute more than a kilogram of methamphetamine.
Damar Ruffin, 34, was convicted by a jury earlier this year.
Ruffin in flew from Cleveland to Reno, Nevada, where he rented a vehicle and drove to Sacramento, California. Ruffin and others packaged five bags containing a total of approximately 2,211 grams of methamphetamine in two plastic cylinders on Nov. 4, 2015. Ruffin then drove from California to Nevada, then flew back to Cleveland, according to court documents and trial testimony.
Ruffin was present on Nov. 13, 2015, at 665 W. Exchange Street in Akron, when the contents of the parcel with the methamphetamine was delivered to that location, according to court documents and trial testimony.
This case was investigated by the U.S. Postal Inspection Service, the Akron Police Department and the FBI. It was prosecuted by Assistant U.S. Attorneys Henry F. DeBaggis and Alex Abreu.
Attorney General Sessions and U.s. Attorney Brady Recognize Law Enforcement Service and Sacrifice During National Police WeekRead the Press Release
PITTSBURGH – Attorney General Jeff Sessions and U.S. Attorney for the Western District of Pennsylvania Scott W. Brady recognized the service and sacrifice of federal, state, local, and tribal police officers on the occasion of National Police Week.
"One officer death is too many," Attorney General Sessions said. "While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks."
"During Police Week, which is observed from Sunday, May 13 to Saturday, May 19, 2018, we recognize and celebrate the contributions of police officers, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe," stated U.S. Attorney Brady. "In particular, May 15th marks National Peace Officers Memorial Day, a time to honor the memories and service of brave, selfless heroes who risked their own lives for the safety of others. They died doing what all law enforcement officers do every day - protecting and serving."
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
The names of 360 law enforcement officers who have died in the line of duty—including 129 who died in 2017—were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018.
Three Western Pennsylvania officers were added this year: New Kensington Police Officer Brian Shaw, who was shot and killed on the evening November 17, 2017; Pennsylvania State Trooper Michael P. Stewart, who was killed in a crash in the early morning hours of July 14, 2017; and Westmoreland County Constable John Thomas Caslin, who was shot and killed in Youngstown, Ohio, on August 7, 1948.
The Candlelight Vigil is one of many commemorative events taking place in the nation’s capital during National Police Week 2018.
For more information about other National Police Week events, please visit www.policeweek.org.
18 Defendants Sentenced in Bank Card SchemeRead the Press Release
Tirrell Thomas, the Michigan leader of the scheme, sent to prison for 102 months
GRAND RAPIDS, MICHIGAN — Tirrell Perry Thomas, the Michigan leader of a scheme to defraud Bank of America, was sentenced to 102 months (8.5 years) in federal prison as part of an ongoing multi-state investigation that has resulted in felony convictions for 18 participants, U.S. Attorney Andrew Birge announced today. The Honorable Paul L. Maloney, U.S. District Judge, sentenced Thomas and the other defendants for their involvement in the bank card fraud scheme, which sought to obtain more than $780,000 from Bank of America and resulted in losses totaling $455,709. This is Thomas’s third federal felony conviction. He was convicted of federal drug trafficking offenses in 1999 and 2007.
The following defendants were sentenced for their respective roles in the fraud scheme, including accountholders who opened or used Bank of America accounts to accept fraudulent check deposits and then make fraudulent withdrawals at banks and casinos, mid-level recruiters who accompanied and
directed accountholders on trips to open bank accounts and withdraw funds, and the leaders and organizers of the scheme, who collected and divided the fraud proceeds:- Tirrell Perry Thomas (Kalamazoo): 102 months in prison
- Earl Lee Cobb IV (Chicago): 78 months in prison
- Nickolas Maurice Fry (Kalamazoo): 41 months in prison, plus an additional 13 months in prison for a related federal supervised release violation
- Jerome Datra Perry (South Haven): 15 months in prison
- Josiah Nathan Preston (Wyoming): 14 months in prison
- Kyle Dwayne Mosley (Kalamazoo): 14 months in prison
- James Langford (South Haven): 12 months and one day in prison
- Darmesha Lakeya Gunn (Parchment): 11 months in prison
- Dwayne Edward Perry (Grand Rapids): 8 months in prison
- Tiffany Danielle Sanders (Sturgis): 4 months in prison
- Elnora Snipes (South Haven): 3 months in prison
- Desiree Analiese Winfield (Kalamazoo): 2 months in prison
- Antoine Naivon Younger (Kalamazoo): 1 month in prison
- Brenda Marie Davis (Kalamazoo): 1 day in prison
- Sean Allen Haney (Grand Rapids): 3 years of probation
- Kelsey Alice Thompson (Grand Rapids): 2 years of probation
- Kevin Lavelle Hunter II (Kalamazoo): 2 years of probation
- Crystal Kaye Pugh (Norton Shores): 2 years of probation
In addition to the prison and probation sentences, each defendant sentenced to prison will serve a period of supervised release after their custodial sentence, and each defendant was ordered to pay restitution to Bank of America ranging from $8,027 to $455,709, depending on the amount of actual
loss for which they were held responsible.The sentencings follow a 28-count indictment that was returned by a grand jury in August 2017 alleging that 19 people participated in a conspiracy to defraud Bank of America in November and December 2015. The fraud was accomplished by using debit cards to withdraw funds from ATMs and
casinos in Michigan, which had been fraudulently deposited into the bank accounts in Illinois, by Chicago co-conspirator Earl Lee Cobb IV. Eighteen defendants pled guilty to at least one count in the indictment and one defendant, an accountholder, was allowed to enter a period of pretrial
diversion, a form of probation without entry of a guilty plea.This matter was investigated by the Detroit Division of the Federal Bureau of Investigation and the U.S. Postal Inspection Service in Chicago, with assistance from the Nottawaseppi Huron Band of Potawatomi Tribal Police Department. The case was prosecuted by Assistant U.S. Attorneys Kate Zell and Christopher O’Connor.
END
'Ordinary' Officers Perform an Extraordinary ServiceRead the Press Release
Officer Gary Michael, Jr., had been on duty at his dream job with the Clinton Police Department for less than a year when he conducted a routine traffic stop. Sergeant Carl Cosper, Jr., traveled a familiar stretch of highway when he responded to a routine domestic violence call.
Neither Officer Michael nor Sergeant Cosper returned home to their families after those routine calls; both were killed in the line of duty. Their deaths remind us that, for those sworn to protect and serve, nothing is routine. Every ordinary day could present a matter of life and death. Every ordinary officer makes a hero’s decision, on a daily basis, to do something quite extraordinary – to put their lives on the line for the sake of their community.
Officer Michael and Sergeant Cosper are two of the 129 law enforcement officers in the United States to fall in the line of duty in 2017. They made the ultimate sacrifice, and we owe them our undying gratitude.
There is no more important duty of government than to protect its citizens from harm. In the cause of public safety, law enforcement officers are our first line of defense. Speaking for myself as well as the Department of Justice, we will continue to “Back the Blue,” as Attorney General Jeff Sessions says, as we are all united in our efforts to reduce crime in America.
Aside from national security, my highest priority is to reduce violent crime and make our neighborhoods safer. As we reinvigorate our efforts to take guns out of the hands of criminals, curb drug trafficking, and eradicate gangs, we rely on our partners in law enforcement. Collaboration with state and local law enforcement is critical for the Department of Justice.
We not only need the support of our law enforcement partners to accomplish this goal, but we need the community’s support as well. Officer Michael and Sergeant Cosper are two good examples of the risks we ask our law enforcement officers to take every day. We can show our appreciation for their sacrifice, and the sacrifices of many other officers, by supporting their brothers and sisters in uniform who continue that good, essential work.
As a small gesture of our nation’s appreciation, flags will be flown at half-staff today in recognition of National Peace Officers Memorial Day as we honor law enforcement officers killed or disabled in the line of duty. This is part of National Police Week, an annual tribute to law enforcement service and sacrifice.
Each year, tens of thousands of law enforcement officers from around the world converge on Washington, D.C., to participate in a number of events to honor those who paid the ultimate sacrifice. Les Kerr, Law Enforcement Coordinator for the Western District of Missouri, will represent us by attending this year’s events.
National Police Week began last Sunday night with a candlelight vigil on the National Mall in Washington, D.C. The names of fallen officers, engraved on the walls of the National Law Enforcement Officers Memorial, were formally dedicated.
The names of Officer Michael and Sergeant Cosper – the two law enforcement officers from the Western District of Missouri who were killed in the line of duty in 2017 – have been engraved on the National Law Enforcement Officers Memorial. Additionally, the recently discovered name of an officer killed in the line of duty in 1917 has been added to the wall.
Even as we honor these fallen heroes, we also grieve the lives of three more law enforcement officers sacrificed since I was sworn in as United States Attorney in January. Next year, the name of another Clinton Police Department officer, Christopher Ryan Morton, along with Miller County Deputy Sheriff Casey Lee Shoemate will be engraved on the memorial wall. We also recently suffered the loss of FBI Special Agent Melissa S. Morrow, 48, who died from brain cancer as a result of being exposed to hazardous contaminants when she rushed to help survivors at the Pentagon during the terrorist attacks on Sept. 11, 2001, and participated in the investigation afterward.
May these public servants, each of whom made the ultimate sacrifice for the highest good, inspire us to honor their memory by continuing their legacy of serving and protecting our community.
Officer Gary Michael, Jr.
Officer Gary Michael, Jr., 37, of the Clinton Police Department, was shot and killed during a traffic stop on Aug. 6, 2017. Officer Michael stopped a vehicle for suspected registration violation. The driver exited the vehicle and opened fire with a rifle. Despite being mortally wounded, Officer Michael was able to return fire and wounded the subject. The man fled the scene in his vehicle, which crashed two blocks away, then he fled on foot but was apprehended two days later. Officer Michael was rushed to the hospital, where he later died.
Officer Michael was a U.S. Army veteran and had served with the Clinton Police Department for less than one year.
Master Sergeant Deputy Sheriff Carl Cosper, Jr.
Master Sergeant Deputy Sheriff Carl Cosper, Jr., 56, of the Barry County Sheriff’s Department was killed in a vehicle collision on April 7, 2017. Sergeant Cosper was responding to a domestic violence call in Seligman, Mo. As he traveled south on Missouri 37, approximately a half-mile south of Washburn, his patrol car struck another vehicle that turned in front of him. Sergeant Cosper was taken to a local hospital where he succumbed to his injuries.
Sergeant Cosper began his career in law enforcement in 1994 with the McDonald County Sheriff's Department. He went on to serve with the Barry County Sheriff's Department for 10 years. In addition to being a deputy, he was also a firearms instructor, training agent, and taught classes for people who wanted conceal-carry permits.
Deputy Sheriff Edward Culver
Deputy Edward Culver, 60, of the Platte County Sheriff’s Department, was shot and killed on June 23, 1917, while breaking up a fight at a saloon in Drydale. The subject was able to disarm another deputy and shot Deputy Culver in the chest. Despite being mortally wounded, Deputy Culver returned fire and killed the subject.
Deputy Culver had served with the Platte County Sheriff's Office for four years.
Monday 14 May 2018
Worcester Business Owner Sentenced to 14 Years in Prison for Fentanyl Distribution and Money LaunderingRead the Press Release
BOSTON – A Worcester business owner was sentenced today in federal court in Worcester for distributing fentanyl and using the proceeds of drug sales to purchase and renovate nine properties and two restaurants in Worcester County.
Kevin A. Perry, 44, of Worcester, was sentenced by U.S. District Court Judge Timothy S. Hillman to 14 years in prison and five years of supervised release. Perry was also ordered to forfeit nine properties, the business assets of two restaurants, over $510,000 in cash and precious metals seized to date, an illegal pill press, and two vehicles. The sentence also includes a money judgment of $1,180,943 against Perry should additional assets be located. In October 2017, Perry pleaded guilty to nine counts of money laundering, three counts of aggravated cash structuring, one count of making a false statement on a loan application, and one count of distribution of fentanyl.
Perry was previously convicted in federal court in Massachusetts of conspiracy to manufacture and distribute MDMA, commonly referred to as Ecstasy. Despite filing an affidavit claiming he possessed nothing of monetary value to satisfy the court’s forfeiture order, Perry boasted to an individual that he successfully concealed from the government “millions of dollars” in profits from drug sales. Following his release from prison in 2008, Perry returned to the manufacturing and distribution of controlled substances, including fentanyl, the deadly synthetic opioid linked to thousands of fatal drug overdoses. On Feb. 23, 2017, Perry distributed 2,000 pills containing fentanyl to an individual cooperating with law enforcement.
Additionally, from April 2012 to October 2016, Perry used over $1 million in proceeds from drug sales to purchase and renovate nine properties in Worcester County. Those purchases included two restaurants in the city of Worcester: The Usual Restaurant located at 166 Shrewsbury Street and The Blackstone Tap located at 81 Water Street. Perry also used the proceeds from his drug sales to purchase more than 230 money orders totaling over $150,000 from the United States Postal Service and Western Union to make structured cash payments on real estate loans and to finance his wedding in August 2015. The only employment that Perry reported during that time was as a fitness trainer. He also collected unemployment benefits from June 2015 through January 2016.
United States Attorney Andrew E. Lelling; Albert Angelucci, Acting Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Delany De Leon-Colon, Acting Inspector in Charge of the United States Postal Inspection Service; and Worcester Police Chief Steven M. Sargent made the announcement today. Assistant U.S. Attorney Greg A. Friedholm of Lelling’s Worcester Branch Office prosecuted the case.
White County Business Owner Sentenced to Three Years in Prison for $43 Million Investment SchemeRead the Press Release
Jeffery Lynn Gentry, 40, of White County, Tennessee, was sentenced today in U.S. District Court to 36 months in prison, followed by three years of supervised release, for wire fraud and money laundering, announced U.S. Attorney Don Cochran for the Middle District of Tennessee. U.S. District Court Judge Aleta A. Trauger also ordered Gentry to pay $10, 410,672.74 in restitution.
Gentry was charged on July 5, 2017, with operating a $43 million investment scheme in which he bilked investors out of more than $10 million. He pleaded guilty on August 10, 2017.
According to court documents, Gentry owned and operated Gentry Brothers Tractor Supply and Gentry Auto, both located in Sparta, Tennessee. Beginning in 2012 and continuing to mid-December of 2016, Gentry devised and executed a scheme to defraud and obtain money and property from investors, promising high rates of return on investments, purportedly used to purchase farm-related equipment to satisfy state contracts and producing significant profits.
Gentry falsely represented to investors, including customers, friends, acquaintances, and family members, many of whom lived in White County, Tennessee, that he was bidding on and winning contracts from various states, including Tennessee, to supply equipment, including tractors, lawn mowers, and other farm-related equipment through his tractor supply company.
Through this scheme, Gentry convinced more than 50 individuals to invest funds totaling approximately $43 million and caused financial loss to investors of more than $10 million.
Despite his assurances to investors of significant returns, Gentry admitted that he never intended to invest the funds as promised but instead, used the money to subsidize his lifestyle, amassing assets worth a substantial amount of money, including numerous tracts of real estate and vehicles.
In March 2016, Gentry also used investor funds to start up and support a new business venture, Gentry Auto, a used car lot, transferring more than $365,000 of investor funds from the Gentry Brothers Tractor Supply Company to the Gentry Auto business between March 24, 2016 and December 6, 2016.
During this investigation, the Asset Forfeiture Unit of the U.S. Attorney’s Office and the U.S. Marshals’ Service seized the assets of Gentry, including his businesses, vehicles, farm equipment and livestock, houses, tracts of land and approximately $300,000 cash. These assets were liquidated on August 26, 2017, by the U.S. Marshals’ Service at an auction in Sparta, Tennessee. This auction and other liquidation proceedings generated more than $1.3 million for victim restoration.
This case was investigated by the FBI, the IRS-Criminal Investigation and the U.S. Marshal’s Service. The case is being prosecuted by Assistant U.S. Attorney Kathryn Risinger and Assistant U.S. Attorney Debra Phillips handled the forfeiture of Gentry’s assets.
United States Reaches Settlement with Riverdale Internist to Resolve False Claims Act Allegations Relating to Medically Unnecessary ProceduresRead the Press Release
FOR IMMEDIATE RELEASE CONTACT ELIZABETH MORSE
www.justice.gov/usao/md (410) 209-4885
Baltimore, Maryland – Sureshkumar Muttath, M.D., an internist in Riverdale, Maryland, has agreed to pay the United States $1,526,038 to settle allegations that he submitted false claims to the United States for medically unnecessary autonomic nervous function tests and neurobehavioral status exams.
The settlement agreement was announced today by United States Attorney for the District of Maryland Robert K. Hur, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services, Maureen Dixon, and Maryland Attorney General, Brian Frosh.
In his practice, Dr. Muttath administered central autonomic nervous function tests and mini-mental exams. Autonomic nervous function disorders are relatively uncommon disorders and tests conducted to determine such disorders should be done only after a clinician suspects such a disorder. Furthermore, according to Local Coverage Determinations (“LCDs”) from Novitas, the Medicare administrative contractor for Maryland, such tests should be conducted only one time per beneficiary, with the necessary equipment and by clinicians with specialized training to administer and interpret these tests. The CPT codes that Dr. Muttath used for central autonomic nervous function tests were 95921, 95922, and 95924. Additionally, Dr. Muttath assessed patients using mini-mental status exams that he billed as a neurobehavioral status exams using CPT code 96116.
According to the settlement agreement, from January 1, 2011 to June 30, 2017, Dr. Muttath submitted claims to Medicare and Medicaid for medically unnecessary autonomic nervous function tests (CPT codes 95921-95924). The United States contends that these tests were not medically necessary and otherwise were excluded from coverage under both programs because Dr. Muttath did not have the necessary equipment to perform these tests; the patients who underwent the testing had not been diagnosed clinically with an autonomic function disorder before Dr. Muttath conducted the tests; Dr. Muttath did not have the specific training required to conduct autonomic function tests or interpret the results thereof; Dr. Muttath failed to follow Novitas’s Local Coverage Determinations (L34788 and L35395) regarding coverage indications, limitations, and medical necessity for autonomic function testing; and Dr. Muttath performed autonomic function tests merely to monitor patient symptoms or conduct patient screenings without signs or symptoms of autonomic dysfunction and not to make any clinical decisions or manage patient care.
With regard to the neurobehavioral status exam claims billed by Dr. Muttath using CPT code 96116, the United States alleges that Dr. Muttath misrepresented the services he actually performed (mini-mental status exams) as neurobehavioral status exams because he failed to spend the required amount of time either face-to-face with the patient or interpreting the tests and preparing the reports and because he did not conduct the required assessments of the patients’ thinking, reasoning, and judgment to submit claims under CPT code 96116.
Dr. Muttath denied the United States’ allegations.
Also as part of the settlement, Sureshkumar Muttath, M.D. has agreed to enter into an expansive, three-year Integrity Agreement that provides for procedures and reviews to be put in place to avoid and promptly detect conduct similar to that which gave rise to the settlement.
The civil settlement was reached by the United States Attorney’s Office for the District of Maryland. The Integrity Agreement was negotiated by the Office of the Counsel to the Inspector General of the Department of Health and Human Services.
This case arose from a recent initiative inside the United States Attorney’s Office. The United States Attorney’s Office has dedicated resources to enable it to review Medicare billing data. The review of that data has enabled the United States Attorney’s Office to identify areas of concern where it appears that billing irregularities may have taken place. Partnering with the affected agencies, the United States Attorney’s Office has developed the ability to investigate these billing irregularities to determine whether the matter should be pursued under the False Claims Act.
United States Attorney Robert K. Hur commended the HHS Office of Inspector General for its work in the investigation. Mr. Hur also thanked Assistant United States Attorneys Thomas Corcoran and Neil White who handled the case.
United States Reaches $125,000 Civil SettlementRead the Press Release
St. Louis, Missouri: The United States Attorney’s Office for the Eastern District of Missouri announced today that the United States, Foot Healers Holdings – St. Louis and its subsidiaries (Foot Healers) reached a civil settlement that will resolve the United States' claims against Foot Healers under the False Claims Act for knowingly submitting false claims to Medicare for podiatry services. According to the United States’ allegations, from March 1, 2010 through July 31, 2016, Foot Healers submitted false claims to Medicare by using improper modifiers that caused Medicare to pay for improper claims and by submitting claims for payment which falsely indicated a medically necessary toenail debridement was provided when the service actually provided was a routine nail trimming not covered by Medicare. As part of the civil settlement, Foot Healers will repay the United States $125,000.
Foot Healers has also entered into a three-year Integrity Agreement with the United States Department of Health and Human Services, Office of Inspector General (HHS-OIG). Pursuant to the terms of the Integrity Agreement, Foot Healers must comply with a number of obligations to ensure that it remains compliant with Federal health care program requirements.
This civil settlement is part of ongoing efforts by the Department of Justice and the United States Department of Health and Human Services to recover funds diverted from Medicare and is the result of the combined work of the U.S. Attorney's Office for the Eastern District of Missouri and HHS-OIG Office of Investigations.
United States Attorney Nick Hanna Marks National Police Week by Recognizing the Service and Sacrifice of Law Enforcement OfficersRead the Press Release
LOS ANGELES – To mark National Police Week, United States Attorney Nicola T. Hanna and Attorney General Jeff Sessions are honoring the service and sacrifice of federal, state and local police officers who put their lives on the line every day they put on their uniforms.
The United States Attorney’s Office for the Central District of California is actively engaged this month in a host of activities to support and honor our law enforcement partners, especially during Police Week.
In October 1962, Congress passed, and President Kennedy signed, a joint resolution declaring May 15 as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
During Police Week, which is being observed this year from May 13 through May 19, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe.
“The partnership we maintain with our local law enforcement partners is an integral component of our violent crime strategy,” said United States Attorney Hanna. “Whether working alongside them in an investigation or honoring their sacrifice, we are proud of their service to the residents of this district.”
Members of the United States Attorney’s Office participated in the annual Los Angeles Police Department Memorial Service last week to honor fallen officers killed in the line of duty. United States Attorney Hanna was an honored guest at this event.
Last week, United States Attorney Hanna attended the Federal Bureau of Investigation’s annual memorial honoring fallen FBI agents.
The office hosted a two-day VALOR Survive & Thrive training for nearly 100 law enforcement officers from across the region last week. The training, which was sponsored by the Bureau of Justice Assistance, was co-hosted by the Glendora Police Department and the Western States Information Network.
United States Attorney Hanna and members of the office participated earlier this month in tactical entry, shoot/no-shoot scenario training that was organized by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Marshals Service. The training enabled office personnel to become more aware of the types of scenarios law enforcement officers and agents face every day, especially when they are serving warrants. The training allowed an opportunity for senior leadership to further understand and enhance the training needs of law enforcement within our district.
United States Attorney Hanna highlighted his office’s violent crime strategy and opportunities for increased collaboration with local law enforcement Thursday at the International Latino Gang Investigators Conference, which took place last week in Ontario.
Thursday night, Mr. Hanna attended and provided welcome remarks at the California Narcotics Officers Association annual awards dinner that honors law enforcement officers working narcotics cases.
The United States Attorney and members of his staff attended the Los Angeles Police Department Recruit Graduation Friday, and will attend the Los Angeles County Sheriff’s Department Fallen Deputy memorial to honor deputies killed in the line of duty this week.
“One officer death is too many,” Attorney General Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Additionally, in 2017 there were 46 law enforcement officers killed in line-of-duty incidents because of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officers were killed in line-of-duty incidents as a result of felonious acts.
To access the FBI's 2017 Law Enforcement Officers Killed and Assaulted report, please visit www.fbi.gov.
For more information about other National Police Week events, please visit www.policeweek.org.
United States Attorney Mike Stuart and FBI Officials Present over $1 Million in Forfeited Proceeds to the West Virginia State PoliceRead the Press Release
CHARLESTON, W.VA. – United States Attorney Mike Stuart announced today the West Virginia State Police received $1,087,285.15 as a result of a civil forfeiture action relating to violations of the Bank Secrecy Act by First National Bank of Williamson. The Bank Secrecy Act requires financial institutions to maintain programs that detect and report suspicious activity that may signify money laundering. Under this law, banks must prepare and file Cash Transaction Reports for all cash transactions over $10,000. The Bank Secrecy Act also makes structuring a federal crime that involves the breaking down of cash banking transactions in amounts of $10,000 or less to avoid triggering a bank’s reporting requirement. First National Bank agreed to forfeit $1,360,000 to the United States, which represents the sum of transactions uncovered.
Stuart commended the efforts of the Federal Deposit Insurance Corporation Office of the Inspector General, the Federal Bureau of Investigation, and the West Virginia State Police Bureau of Criminal Investigation.
“The scheme set up by White and others to deceive federal authorities should never have been permitted by the bank,” said United States Attorney Mike Stuart. “In every instance where we identify a federal institution intentionally aiding and abetting illegal activities, we will use every tool possible, including forfeiture, to ensure the institution pays a very heavy price. I am happy that over $1 million forfeited by the bank in this case can now be used by WV State Police to further its missions and good work for the citizens of our great state.”
Between April 2006 and November 2008, Arthur White, Jr., and other individuals, structured $1.36 million in cash withdrawals in increments of exactly $10,000 from First National Bank of Williamson in order to avoid triggering the mandatory reports. In March 2013, Arthur White pleaded guilty in the United States District Court for the Southern District of West Virginia to tax evasion and structuring. White admitted that he cashed checks made payable to his companies that held accounts at First National Bank of Williamson. According to the complaint, First National Bank permitted White to pay cash for cashiers’ checks made payable to himself, without first depositing the money into any account.
As part of the scheme, White and other individuals would receive exactly $10,000 in cash each time they cashed a check. They would then purchase a new cashier’s check without depositing any of the money, repeating the process until the entire check had been converted to cash. The cash obtained through this structuring was used to pay wages for some of White’s employees. White, and others at his direction, intentionally conducted these transactions to avoid triggering the bank’s reporting requirements and to evade taxes.
As set forth in the complaint, despite First National Bank's knowledge of these transactions, it permitted this structuring and failed to report these transactions as required by law.
"The dismantlement is a result of the investigation and successful prosecution which enables and triggers asset forfeiture," said FBI Pittsburgh Assistant Special Agent in Charge Nick Boshears. "The funding provides for things like new vehicles, bulletproof vests, opioid overdose reversal kits and better training for our law enforcement partners."
“We are pleased to join our law enforcement partners in recognizing the successful results of this case,” said Federal Deposit Insurance Corporation’s Deputy Assistant Inspector General for Investigations, Francis L. Mace. “Today’s sharing of forfeiture proceeds will provide the members of the West Virginia State Police with funds that can be used to further their important mission of serving the citizens of West Virginia.”
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U.S. Attorney Kennedy Recognizes Law Enforcement Service and Sacrifice During National Police WeekRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051FBI Releases 2017 Statistics on of Law Enforcement Officers Killed and Assaulted
BUFFALO, NY – U.S. Attorney James P. Kennedy, Jr. is joining with Attorney General Jeff Sessions to recognize the service and sacrifice of federal, state, local, and tribal police officers during National Police Week, May 13-19, 2018.According to statistics collected by the FBI, 93 law enforcement officers were killed in line-of-duty incidents in 2017 – a 21 percent decrease from 2016 when 118 law enforcement officers were killed in line-of-duty incidents.
Among the 93 killed was Buffalo Police Officer Craig Lehner who drowned during a training exercise in the Niagara River. Lehner’s body was recovered on October 17, 2017. Officer Lehner’s name and the names of all 93 fallen officers nationwide were formally dedicated on the National Law Enforcement Officers Memorial in Washington, DC, during the 30th Annual Candlelight Vigil on the evening of May 13, 2018.
“While it takes many important attributes to be a successful police officer – courage, toughness, intelligence – the one attribute shared by the very best in the law enforcement profession is a sense of selfless love,” said U.S. Attorney Kennedy. “Love for their fellow man. Love for their community. Love for the rule of law. Love for their country.”
“One officer death is too many,” Attorney General Sessions said. “While we are inexpressibly grateful to have had a decrease in the number of officers killed in the line-of-duty last year, the number is still far too high. At the Department of Justice, we honor the memories of the fallen and we pray for their families. We are also following President Trump's Executive Orders to back the women and men in blue, to enhance law enforcement safety, and to reduce violent crime in America. Those priorities will help keep every American safe, including those who risk their lives for us. As always, we have their backs and they have our thanks.”
During Police Week, our nation celebrates the contributions of police officers from around the country, recognizing their hard work, dedication, loyalty and commitment in keeping our communities safe. A number of commemorative events are taking place across the country and locally. U.S. Attorney Kennedy took part the Law Enforcement Memorial Service in Buffalo this morning at St. Joseph Cathedral. Tomorrow, May 15, he will take part in the New York State Police Troop “A” Memorial Service in Batavia, NY.
U.S. Attorney Kennedy further stated, “I offer condolences to the families of our fallen heroes and a humble thanks to all of the men and women of federal, state and local law enforcement – living and deceased. Though they cover their hearts with badges, through those badges shine some of the finest hearts known to humanity. Today we honor those in law enforcement who give their hearts, and their lives, for their fellow man.”
Of the 93 officers killed in 2017, 46 were killed in line-of-duty incidents as a result of felonious acts – this is a 30 percent decrease from 2016, when 66 law enforcement officer were killed in line-of-duty incidents as a result of felonious acts.
For more information on the 2017 Law Enforcement Officers Killed and Assaulted report, go to https://ucr.fbi.gov/leoka/2017.
In October 1962, Congress passed and President Kennedy signed a joint resolution declaring May 15th as National Peace Officers Memorial Day to honor law enforcement officers killed or disabled in the line of duty. The resolution also created National Police Week as an annual tribute to law enforcement service and sacrifice.
For more information about other National Police Week events, please visit www.policeweek.org.
Two Local Inmates Indicted for Threatening Anthrax UseRead the Press Release
PENSACOLA, FLORIDA – Craig T. Pope, 29, and Justin B. Lane, 34, were arraigned on May 3 and today, respectively, in the U.S. District Court in Pensacola after a federal grand jury returned two separate indictments charging each of them with mailing threatening communications and threatened use of a weapon of mass destruction. The indictments were announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
According to Pope’s indictment, in April and May 2017, Pope mailed a letter to a judge threatening a bomb and an anthrax outbreak in the courthouse. According to Lane’s indictment, in August 2017, Lane mailed a letter to the Polk County State Attorney’s Office threatening to use anthrax.
Pope’s trial is scheduled for June 4 at 9:00 a.m., and Lane’s trial is scheduled for July 9 at 8:00 a.m.
If convicted of mailing threatening communications, Pope and Lane face a maximum of five years in prison. If convicted of threatened use of a weapon of mass destruction, the defendants face a maximum of life in prison.
These cases resulted from investigations by the Federal Bureau of Investigation, the Florida Department of Law Enforcement, the Hillsborough County Sheriff’s Office, and the Tampa Police Department. Assistant United States Attorney David L. Goldberg is prosecuting the cases.
An indictment is merely an allegation that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
Two Brooklyn Men Convicted of Kidnapping and Torture of VictimRead the Press Release
Earlier today, following six days of trial, a federal jury in Brooklyn returned guilty verdicts against Michael Crumble and Ramell Markus on charges of kidnapping conspiracy, kidnapping and committing physical violence in furtherance of an extortion. The charges are contained in an indictment arising from an abduction, assault and extortion committed by the defendants on December 18, 2017. When sentenced by United States District Judge Allyne R. Ross, the defendants face a maximum of life imprisonment.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), and James P. O’Neill, Commissioner, New York City Police Department (NYPD), announced the verdict.
“As the jury found, Crumble and Markus abducted the victim and took him to a location in Brooklyn that became a torture chamber, where he was beaten and burned with a hot iron in an attempt to extract drugs, money and information to settle a drug dispute,” stated United States Attorney Donoghue. “The defendants will now be held responsible for their ruthless conduct. I commend our partners in the New York City Safe Streets Task Force, which is comprised of agents of the FBI and detectives from the NYPD, for their outstanding investigative work.”
The evidence presented at trial established that Crumble, Markus, and a co-conspirator kidnapped the victim outside his home in Queens, forcing him into a vehicle. Markus pistol-whipped the victim, seeking a package of narcotics believed to be in his home. The defendants and the co-conspirator drove the victim to a residence in Brooklyn, and demanded that he give them narcotics, money, and the address of a location that the perpetrators believed contained additional money, as well as jewelry. To force the victim to comply, Markus broke a glass on his face, and the co-conspirator repeatedly burned both of the victim’s arms with a hot clothing iron. After the victim’s fiancée provided the defendants with money and drugs, the defendants and the co-conspirator transported the victim to a hotel in Brooklyn where he was held captive while the defendants waited for another individual to provide the address they were seeking. The defendants held the victim captive for more than eight hours.
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. Attorney General Jeff Sessions reinvigorated PSN in 2017 as part of the Department’s renewed focus on targeting violent criminals, directing all U.S. Attorney’s Offices to work in partnership with federal, state, local and tribal law enforcement and the local community to develop effective, locally based strategies to reduce violent crime.
The government’s case is being handled by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Keith D. Edelman and Lindsay K. Gerdes are in charge of the prosecution.
The Defendants:
MICHAEL CRUMBLE
Age: 34
Residence: Brooklyn, New York,RAMELL MARKUS (also known as “Rah,” “Dollah” and “Smooth”)
Age: 35
Residence: Brooklyn, New YorkE.D.N.Y. Docket No. 18-CR-32 (ARR)
Toledo pastor Kenneth Butler pleads guilty to sex trafficking of minorsRead the Press Release
A Toledo pastor is likely to spend 17 ½ years in prison after pleading guilty to sex trafficking of minors.
Kenneth Butler, 38, pleaded guilty Monday to one count of conspiracy to sex traffic children, two counts of sex trafficking of children and one count of obstruction of a sex trafficking investigation.
Butler is scheduled to be sentenced in September. Under the terms of his plea agreement, both sides will ask for a sentence of 210 months in prison.
“This defendant has admitted to crimes that include preying on a foster child who was previously the victim of sexual abuse, and he committed these crimes in a house of worship,” U.S. Attorney Justin E. Herdman said. “Butler may hold himself out to the community as a pastor, but in the eyes of the law he is a criminal who pays money to sexually assault children.”
FBI Special Agent in Charge Stephen D. Anthony said: “The FBI is pleased that Kenneth Butler has acknowledged the criminal behavior he inflicted on a vulnerable minor. The FBI will continue efforts to identify and prosecute those that coerce and exploit our youth through sex trafficking.”
Two other pastors – Anthony Haynes and Cordell Jenkins – have been indicted for their roles in the sex trafficking conspiracy and are awaiting trial. Laura Lloyd Jenkins has been indicted for obstructing the investigation and is also awaiting trial.
According to Butler’s plea agreement:
Butler did knowingly recruit, entice, harbor, transport, provide, obtain, maintain, patronize, or solicit, by any means, Juvenile #1 and #2, knowing that such juveniles had not attained the age of 18 years and would be caused to engage in a commercial sex act. This took place between 2015 and March 2017.
Butler was a pastor of a church in Detroit from 2007 through 2012. Shortly after his church closed in 2013, Butler started attending church at the Greater Life Christian Center in Toledo. Anthony Haynes was the lead pastor of the church. Haynes and Butler quickly became friends and started spending time together at the church and elsewhere.
In 2014, Haynes told Butler Juvenile #1 moved into his home. Haynes informed Butler that Juvenile #1 was sexually abused when she was younger by her family members, and at least one of the family members was convicted of a crime for the conduct.
In late 2015, Haynes picked up Butler with Juvenile #1 already in the car. The three of them went to the Greater Life Christian Center to Haynes’s office. Juvenile #1 began to undress. Haynes looked at Butler and stated, “You owe me” and laughed.
Haynes and Butler performed oral sex on Juvenile #1 and then took turns having unprotected vaginal intercourse. While Butler was penetrating Juvenile #1, Juvenile #1 was performing oral sex on Haynes. Butler knew Juvenile #1 was under the age of 18 years. The next day, Haynes and Butler discussed the encounter and how it was fun.
In 2016, Haynes closed Greater Life Christian Center and opened a new church named University Bible Fellowship in Toledo. Shortly after this church opened, Haynes called Bulter and told him to meet Juvenile #1 and him at University Bible Fellowship. When Butler arrived, it was apparent they were going to have another threesome.
However, Haynes instructed Butler to give Juvenile #1 a ride to her job interview first. He drove Juvenile #1 to the interview and brought her back to the church. Once back at the church, Juvenile #1 performed oral sex on Haynes and Butler, and they took turns having unprotected vaginal intercourse with her.
After this encounter, Haynes told Butler that Cordell Jenkins also was having sex with Juvenile #1. Butler knew Jenkins as another pastor in the Toledo area. Butler went to Jenkins’s church on a few occasions when Haynes was a guest preacher. Likewise, Jenkins was a guest preacher at Haynes’s church.
Approximately one month later, Butler picked up Juvenile #1 from school and drove to a secluded area, where Butler had unprotected vaginal intercourse with her in the car.
Butler rented a motel room in Toledo a few weeks later. Juvenile #1 stated that Haynes was supposed to meet them, but he never showed up. Butler had unprotected vaginal intercourse with Juvenile #1.
Butler went to Juvenile #1’s residence in early 2017. On the way, he called and spoke with Haynes. Juvenile #1 asked for $30 for her hair, in which Butler replied, “You better be nice and naked.”
Butler had unprotected vaginal intercourse with Juvenile #1 at her residence. After the sex, he gave her $30.
In March 2017, Haynes informed Butler that there was a federal investigation into their conduct. Butler deleted text messages on his cellular telephone regarding his conversations with Juvenile #1.
Butler also had sex with another minor, Juvenile #2, who attend church at Greater Life Christian Center. The two met at the church in 2016. Shortly after meeting, Butler started his own church in the Detroit area.
Butler routinely took Juvenile #2 with him to his church in Michigan. Juvenile #2 watched Bulter’s children during the church service. In 2017, while driving back from his Detroit church, Butler pulled off the road and had vaginal intercourse with Juvenile #2. Butler knew Juvenile #2 had not attained the age of 18 years. Butler routinely provided Juvenile #2 rides to various places in the Toledo area, and on at least one occasion, gave her $20.
On October 4, 2017, Juvenile #2 called Butler. During the call, Butler told Juvenile #2 to lie to federal authorities when asked about their sex, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Michael Freeman and Alissa Sterling following an investigation by the FBI’s Northwest Ohio Violent Crimes Against Children Task Force. The Task Force is comprised of members of the FBI, Toledo Police Department, Perrysburg Township Police Department, Lima Police Department, Oregon Police Department, Fulton County Sheriff’s Office, Ottawa County Sheriff’s Office, Ohio State Highway Patrol, the Bureau of Criminal Investigation and Lucas County Sheriff’s Office.
Three Romanian Nationals Sentenced for Racketeering Conspiracy and ATM SkimmingRead the Press Release
BOSTON – Three Romanian nationals were sentenced today in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New Hampshire, New York and South Carolina.
Constantin Denis Hornea, 23, his wife Maria Lazar, 19, and his brother Ludemis Hornea, 21, were sentenced by U.S. District Court Judge William G. Young. Judge Young sentenced Constantin Hornea to 65 months in prison, three years of supervised release and ordered him to pay $242,141 in restitution and a money judgment of $54,260; Lazar was sentenced to 27 months in prison, three years of supervised release and ordered to pay $95,902 in restitution and a money judgment of $28,170; and Ludemis Hornea was sentenced to 42 months in prison, which includes credit for 15 months served on a state sentence, three years of supervised release and ordered him to pay $57,422 in restitution and a money judgment of $11,124.
In December 2017, the Hornea brothers and Lazar pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly known as RICO conspiracy, conspiracy to use counterfeit access devices, money laundering conspiracy and aggravated identity theft. The Hornea brothers also pleaded guilty to possession of device making equipment. In May 2017, the Hornea brothers, Lazar and 11 co-conspirators were indicted in connection with the scheme. In March 2018, co-conspirators Denisa Bonculescu, Anamaria Margel and Ion Trifu were sentenced. Claudio Cosmin Florea and Nicusor Bonculescu are pending sentencing; Ion Bonculescu is in extradition proceedings in Germany; Ion Vaduva is in extradition proceedings in Hungary; and Florinel Vaduva and Florin Hornea are pending trial scheduled for Nov. 5, 2018. The whereabouts of Dragush Nelo Hornea and Nemanja Milosavljevic remain unknown.
The defendants, except for Trifu, were members of the Hornea Crew (“Crew”), led by Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards, and making unauthorized withdrawals from the victims’ bank accounts. Over a period of 18 months, the Crew installed skimming devices and made unauthorized withdrawals from ATMs in various town in seven states: Massachusetts, New Hampshire, Connecticut, New York, South Carolina, North Carolina and Georgia.
Members of the Hornea Crew and Trifu transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.
United States Attorney Andrew Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Customs and Border Protection; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; Connecticut State Police; the Amherst, Billerica, Braintree, Boston, Florence (S.C.); Greenwich (Conn.), Houston (Texas) New York City (N.Y.), Quincy, Saluda (S.C.), Southwick, Waltham, Whately, and Westwood Police Departments; South Carolina Law Enforcement Division; Richland County (S.C.) Sheriff’s Department; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
The details contained in the charging document are allegations. The remaining defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Temple Hills Man Sentenced to over Nine Years in Prison for Commercial RobberyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – On May 11, 2018, United States District Judge George J. Hazel sentenced Percy Raymond Jones, age 27, of Temple Hills, Maryland today to nine and a half years in prison, followed by three years of supervised release, for Interference with Interstate Commerce by Robbery and Using, Carrying, and Brandishing a Firearm During and in Relation to a Crime of Violence.
The sentence 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 his plea agreement, on December 6, 2016, Jones and his co-conspirator, Javonte Jaquan Moore, age 23, of Upper Marlboro, Maryland robbed a business in District Heights, Maryland.
During the course of the robbery, Moore grabbed Victim 1, placed a 9 mm semi-automatic handgun to her head and back, and demanded that she open the cash register. Meanwhile, Jones took Victim 2 to the rear of the store where Victim 3, another employee, was stocking merchandise. Both Victim 2 and Victim 3 were forced to lie on the ground while Jones began filling duffel bags with video games. Moore then entered the rear of the store and began assisting Jones. Both Moore and Jones then fled out of the front door of the store with approximately four Sony PlayStation 4 gaming systems, approximately 46 assorted video games, and cash.
Shastri Gill, age 24, of Washington D.C. drove the getaway car, after previously entering the business and informing Jones of who was present.
During the robbery, Jones and Moore unwittingly took two GPS tracking devices. The GPS tracking devices led officers to an apartment building located on Alpine Street in District Heights, Maryland, where they were arrested.
Moore previously was sentenced to 114 months in prison, followed by three years of supervised release. Gill was sentenced to 41 months in prison, followed by three years of supervised release.
United States Attorney Robert K. Hur praised 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. Attorney Ray D. McKenzie, who prosecuted the case.
Taylor County man admits to drug chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Alexander D. Barnett, of Flemington, West Virginia, has admitted to a drug distribution charge, United States Attorney Bill Powell announced.
Barnett, age 23, pled guilty to one count of “Aiding and Abetting the Distribution of Heroin.” Barnett admitted to selling heroin in March 2016 in Harrison County.
Barnett faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Traci M. Cook is prosecuting the case on behalf of the government. The Greater Harrison Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Tahlequah Man Sentenced to 18 Months, $266,000 Restitution for Concealment of Material FactRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that James Michael West, age 64, of Tahlequah, Oklahoma was sentenced to 18 months imprisonment, and 3 years supervised release for Concealment Of A Material Fact, in violation of Title 42, United States Code, Section 408(a)(4). The charge arose from an investigation by the Social Security Administration’s Office of Inspector General. West has been ordered to pay restitution in the amount of $266,982.00.
The Indictment alleged that from on or about July 14, 2005, and continuing through December 31, 2016, in the Eastern District of Oklahoma and elsewhere, defendant James Michael West, in a matter within the jurisdiction of Social Security Administration, having knowledge of the occurrence of an event affecting the right to receive or continue to receive Social Security Disability Income payments, concealed and failed to disclose such event with the intent to fraudulently secure payment when no payment was authorized. Specifically, defendant James Michael West intentionally concealed that James Michael West secured gainful employment in order to receive and continue to receive Disability Income payments made by the Social Security Administration to him. By such action, defendant James Michael West took approximately $266,982.00 in Social Security Disability Income payments to which he was not entitled.
“When someone unlawfully receives income from the Social Security Administration (“SSA”) it is a theft from all who are or will someday be lawfully entitled to receive income from the SSA. Investigations and prosecutions of those that fraudulently receive Social Security Income are vital to the continued stability of the entire program,” said United States Attorney Brian J. Kuester. “I commend the SSA-OIG for its thorough, professional investigation and the members of this office who prosecuted and assisted with the prosecution of this case.”
The Honorable Ronald A. White, U.S. District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. Assistant United States Attorney Rob Wallace represented the United States. The defendant will report to the designated federal facility at which the non-paroleable sentence will be served.
Steubenville, Ohio man sentenced to more than six years for firearm chargeRead the Press Release
WHEELING, WEST VIRGINIA – Thomas Bennett, of Steubenville, Ohio, was sentenced today to 76 months incarceration for unlawful possession of a firearm, United States Attorney Bill Powell announced.
Bennett, age 42, pled guilty to one count of “Unlawful Possession of a Firearm” in May of 2018. Bennett, having previously been convicted of drug possession in Commons Pleas Court in Jefferson County, Ohio in 2017, admitted to possessing a 9mm pistol in Ohio County on August 12, 2017.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wheeling Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
South Texas Doctor Charged with $240 Million Health Care fraud and International Money Laundering SchemeRead the Press Release
McALLEN, Texas – A physician based in the McAllen area was charged in an indictment unsealed today for his role in a $240 million health care fraud and international money laundering scheme.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan J. Patrick, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Dallas Region and Special Agent in Charge Christopher Combs of the FBI’s San Antonio Field Office made the announcement.
Jorge Zamora-Quezada, 61, of Mission, was charged in a seven-count indictment filed in the Southern District of Texas. He was charged with one count of conspiracy to commit health care fraud, five counts of health care fraud and one count of conspiracy to commit money laundering. Zamora-Quezada had his initial court appearance earlier today. His detention hearing is set for tomorrow, May 15, at 2 p.m. before U.S. Magistrate Judge Peter E. Ormsby.
“Jorge Zamora-Quezada allegedly orchestrated a massive fraud scheme that jeopardized the health and wellbeing of innocent children, elderly and disabled victims,” said Cronan. “The allegations that Zamora-Quezada violated his oath to do no harm by administering unnecessary chemotherapy and other toxic medications to patients with serious diseases — including some of the most vulnerable victims imaginable — are almost beyond comprehension. The Criminal Division is committed to combatting health care fraud and protecting victims of reprehensible schemes like the one alleged in this case.”
“We take allegations of this nature very seriously,” said Patrick. “The prosecution of health care fraud is a high priority for the Southern District of Texas, especially when we suspect vulnerable patients have been allegedly exploited, misdiagnosed or possibly given potentially harmful medications as a means of committing that fraud.”
“Today’s indictment is the first step in holding Dr. Zamora-Quezada accountable for his allegedly egregious criminal conduct,” said Porter. “His patients trusted him and presumed his integrity; in return he allegedly engaged in a scheme of false diagnoses and bogus courses of treatment and doled out prescriptions for unnecessary and harmful medications, all for his personal financial gain and with no regard for patient well-being. HHS-OIG will always pursue criminals masquerading as legitimate physicians, weed them out and seek the harshest possible punishment, particularly when patient harm is a factor.”
“The FBI is dedicated to working with our task force partners to address health care fraud, which is a growing and serious crime that impacts every city and small town in the nation,” said Combs. “This investigation highlights an even greater concern presented by health care fraud than the significant financial losses—the physical and emotional harm suffered by the patients and their families. It is why we at the FBI, together with our task force partners, are dedicated to seeking justice for the victims of Dr. Zamora-Quezada’s alleged crimes.”
As set forth in the indictment, from 2000 through the filing of the indictment, Zamora-Quezada and his co-conspirators falsely diagnosed vulnerable patients -- including the young, elderly and disabled, from the Rio Grande Valley, San Antonio and elsewhere -- with various degenerative diseases, including rheumatoid arthritis. He and his co-conspirators then administered chemotherapy and other toxic medications to the patients based on that false diagnosis. In addition to falsely diagnosing patients, Zamora-Quezada and his co-conspirators allegedly conducted a battery of fraudulent, repetitive and excessive medical procedures on patients in order to increase revenue and fund Zamora-Quezada’s lavish and opulent lifestyle.
The indictment alleges Zamora-Quezada and his co-conspirators flew in Zamora-Quezada’s million-dollar private jet or drove in his Maserati, which were both emblazoned with his initials “ZQ” between his offices in the Rio Grande Valley and San Antonio in order to perpetuate the fraud. He and his co-conspirators transferred the proceeds derived from the conspiracy to purchase private jets, luxury vehicles, clothing from high-end retailers such as Louis Vuitton and exclusive real estate located throughout the United States and Mexico. He and his co-conspirators allegedly obstructed investigations by causing the creation of false and fictitious patient records and concealed thousands of medical records from Medicare by stashing them in an unsecured and dilapidated barn located in the Rio Grande Valley.
The indictment also alleges Zamora-Quezada and his co-conspirators laundered the proceeds of their fraud scheme by dissipating, transforming and concealing the source and location of the fraud proceeds by investing such proceeds in commercial and residential real estate in the United States and Mexico. Among other properties, he and his co-conspirators acquired two penthouses in Puerto Vallarta, Mexico; a condominium in Aspen, Colorado; a condominium in Punta Mita, Mexico; and multiple homes and commercial properties located throughout Texas. He then created the false appearance of legitimate wealth and income by renting the various commercial and residential properties that he acquired to individuals and entities. Zamora-Quezada and his co-conspirators allegedly laundered the proceeds through a casa de cambio, or money exchange house, to various accounts maintained by financial institutions in Mexico.
The indictment seeks the forfeiture of Zamora-Quezada’s personal jet, Maserati and multiple residential and commercial properties in the United States and Mexico.
The case is being investigated by the HHS-OIG’s McAllen Field Office, FBI’s San Antonio Division-McAllen Resident Agency’s Rio Grande Valley Health Care Fraud Task Force and the McAllen Complex Financial Crimes Task Force. These task forces are comprised of investigators from Texas Department of Insurance, police departments in McAllen and Pharr and the Texas Health and Human Service Commission. Trial Attorney Kevin Lowell of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Andrew Swartz of the Southern District of Texas are prosecuting the case.
The FBI is seeking to identify potential victims of Zamora-Quezada and his co-conspirators. If you were a patient of Zamora-Quezada from January 2000 through May 2018 and believe you may have been affected by his or his co-conspirators alleged crimes, please contact the FBI via the FBI victim’s hotline, 1-833-432-4873, Option 8, or if you have access to email you may email the taskforce at [email protected]. The FBI is legally mandated to identify victims of federal crimes that it investigates and provide these victims with information, assistance services and resources.
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. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged more than 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.