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Monday 14 May 2018
South Texas Doctor Charged with $240 Million Health Care Fraud and International Money Laundering SchemeRead the Press Release
A physician based in the McAllen, Texas 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 of the Southern District of Texas, 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, Texas, 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 tomorrow, May 15, at 2 p.m. CDT before U.S. Magistrate Judge Peter E. Ormsby in the McAllen Division of the Southern District of Texas.
“Jorge Zamora-Quezada allegedly orchestrated a massive fraud scheme that jeopardized the health and wellbeing of innocent children, elderly, and disabled victims,” said Acting Assistant Attorney General 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 U.S. Attorney 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 HHS-OIG Special Agent in Charge 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 FBI Special Agent in Charge 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 that 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 that 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.
An indictment is merely an allegation and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
The case is being investigated by the HHS-OIG’s McAllen Field Office, the 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, McAllen Police Department, Pharr Police Department 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 over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Sacaton Man Sentenced to over 22 Years for MurderRead the Press Release
PHOENIX – On May 14, 2017, Robert Wayne Long, 24, of Sacaton, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Douglas L. Rayes to over 22 years in prison. Long had previously pleaded guilty to second degree murder. At the time of the offense, Long was on Federal Supervised Release for assault resulting in serious bodily injury.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-487-PHX-DLR
RELEASE NUMBER: 2018-064_Long
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Repeat Investment Fraudster Sentenced to 8 Years in Prison for Wire Fraud, Securities Fraud and Aggravated Identity TheftRead the Press Release
A 48-year old Renton man who falsely presented himself as a legitimate investment advisor was sentenced today in U.S. District Court in Seattle to eight years in prison for eight federal felonies, announced U.S. Attorney Annette L. Hayes. RICHARD THOMAS ZIESKE was previously convicted of federal fraud charges for defrauding members of his church and others out of over $1.2 million by posing as an investment advisor. Last February ZIESKE was convicted of a similar scheme to defraud victims he met through a Renton martial arts studio. At sentencing, U.S. District Judge James L. Robart said ZIESKE has no respect for the law. “We’re talking about someone who is a serial predator in the financial markets,” the judge said. Turning to ZIESKE he added, “You take people you know and who try to help you, and then you use them in your scheme.”
ZIESKE was convicted of five counts of wire fraud, one count of securities fraud and two counts of aggravated identity theft. According to records filed in the case and testimony at trial, in 2013, ZIESKE overheard a member of his Renton martial arts studio talking about his 401k account. The victim had been forced to retire and limit his martial arts due to a degenerative neck condition. ZIESKE convinced the victim to allow him to manage more than $95,000 in retirement funds, promising big returns. Instead, ZIESKE used the money to purchase a limited edition Harley Davidson motorcycle, pay for liposuction surgery, and finance a luxury SUV. ZIESKE attempted to recruit other ‘investors,’ and convinced the founder of the martial arts studio to invest $50,000 with him.
In 2005, ZIESKE pleaded guilty to mail fraud, securities fraud and wire fraud for a scheme in which he solicited nearly $2 million from members of his church and others, fraudulently promising big returns on investments. ZIESKE was sentenced to 41 months in prison and ordered to pay more than $1.3 million in restitution. The Washington Department of Financial Institutions also entered a cease and desist order against him. The prior conduct caused a brokerage firm to close ZIESKE’s trading account during the more recent scheme after its check revealed ZIESKE’s previous conviction. ZIESKE then opened another brokerage account using the identity of another member of the martial arts studio.
Prosecutors asked that ZIESKE be ordered to pay $84,915 to his victims. Judge Robart will set the restitution amount at a later date. He ordered ZIESKE to be subject to federal supervision for three years following his prison term.
The case was investigated by the FBI. The case was prosecuted by Assistant United States Attorneys Seth Wilkinson and Michael Dion.
Recognition of Law Enforcement Service and Sacrifice During National Police WeekRead the Press Release
May 14, 2018 – United States Attorney General Sessions, together with Joseph H. Harrington, United States Attorney for the Eastern District of Washington, 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.
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.
“One officer death is too many,” U.S. 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.”
United States Attorney Harrington said “National Police Week is an opportunity to reinforce our strong commitment to law enforcement both here in the State of Washington and across the country. Every day our law enforcement officers carry out their sworn duties, risk is a constant companion. It is a privilege to honor these men and women who patrol our streets, guard our communities, and keep us safe from harm.”
Spokane will be hosting two events to honor law enforcement officers in the State of Washington who were killed or died in the line of duty next week:
- 5th Annual Candlelight Ceremony, Monday, May 14th at 7:30 p.m. at the Memorial, 1100 W. Mallon; and
- 31st Annual Law Enforcement Officers Memorial Ceremony, Tuesday May 15th at 11:30 a.m. at 1100 W. Mallon.
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.
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. So that people across the country could experience this unique and powerful ceremony, the vigil was livestreamed. 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.
Randolph County Resident Charged with Firearm OffenseRead the Press Release
On May 8, 2018, Aaron L. Butler, of Steeleville, Illinois, was charged by indictment with Unlawful Possession of a Firearm by a Convicted Felon, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today. The indictment alleges that the offense occurred on March 13, 2018, in Perry County. On May 9, 2018, Butler made his initial appearance in federal court. At a May 14, 2018, detention hearing, he was ordered held without bond pending a trial by jury, which is currently scheduled for July 9, 2018.
Under the law, a defendant is presumed to be innocent of a charge until proved guilty beyond a reasonable doubt to the satisfaction of a jury.
If convicted of the firearm violation, Butler faces a term of imprisonment of up to 10 years.
The ongoing investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Perry County Sheriff’s Office.
Psychiatrist Admits Signing Phony Medical Records to Deceive State InspectorsRead the Press Release
CAMDEN, N.J. – The psychiatrist of a nonprofit mental health services provider for Camden’s poorest residents today admitted signing fraudulent treatment plans meant to mislead New Jersey Medicaid inspectors, U.S. Attorney Craig Carpenito announced.
Lyda Monte, 78, of Bellmawr, New Jersey, pleaded guilty before U.S. District Judge Noel L. Hillman in Camden federal court to an information charging her with making false statements to a health care benefit program.
According to documents filed in this case and statements made in court:
Monte was a psychiatrist at Nueva Vida Behavioral Health Center of New Jersey, a nonprofit provider of mental health services to the Camden Hispanic community. Most of Nueva Vida’s patients were Medicaid beneficiaries and the center was periodically inspected and audited by New Jersey Medicaid authorities.Between January 2010 and August 2016, Cesar Tavera, the Executive Director of Nueva Vida, directed Nueva Vida therapists to prepare false treatment plans, including plans reflecting treatment that was not actually performed on patients, in order to mislead New Jersey Medicaid inspectors. Tavera then directed Monte to sign these fabricated treatment plans. Monte admitted today that she signed the treatment plans knowing that they were fraudulent and that they were intended to mislead New Jersey Medicaid inspectors.
Monte faces a maximum penalty of five years in prison and a $250,000 fine, or twice the gain or loss caused by the offense. Sentencing is scheduled for Aug. 28, 2018.
Cesar Tavera previously pleaded guilty to defrauding New Jersey Medicaid out of $2.5 million and embezzling more than $1.5 million from Nueva Vida. He was sentenced to 70 months in prison. Maria Tavera, a Nueva Vida administrator, pleaded guilty to embezzling from Nueva Vida and was sentenced to six months of home detention and three years of probation. Andres Ayala, a Nueva Vida therapist, previously pleaded guilty to conspiracy to commit health care fraud and awaits sentencing.
U.S. Attorney Carpenito credited agents of the FBI’s South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster in Philadelphia, and special agents from the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation. He also thanked the Medicaid Fraud Division of the New Jersey Office of the State Comptroller.The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Camden.
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Defense counsel: Rocco C. Cipparone Jr. Esq., Haddon Heights, New Jersey
Project Safe Neighborhood ProsecutionsRead the Press Release
HUNTINGTON, W.Va. – Consistent with United States Attorney Mike Stuart’s priority on the prosecution of felon in possession cases as part of our strategy to reduce violent crime throughout the Southern District of West Virginia, the following hearings took place before United StatesDistrict Judge Robert C. Chambers today. Assistant United States Attorney Stephanie Taylor is handling the prosecutions.
“We are aggressively prosecuting felons in possession and turning a number of cases around in short order,” said United States Attorney Mike Stuart. “The message is clear for felons, if you possess a firearm, you will go to prison.”
These cases are 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.
GEORGIA MAN SENTENCED TO MORE THAN 9 YEARS IN PRISON FOR FIREARM CHARGE
A Georgia man was sentenced to 110 months – more than 9 years -- in federal prison for possessing a firearm, announced United States Attorney Mike Stuart. John Weathers, 32, previously pled guilty to being a felon in possession of a firearm. Stuart commended the investigation conducted by DEA and the West Virginia State Police.
On December 5, 2017, officers with the DEA and West Virginia State Police Violent Crime and Drug Task Force conducted a controlled buy of methamphetamine from Weathers. After determining Weathers was staying in Room 222 at the Econo Lodge in Huntington, officers obtained a search warrant. During the search, officers located a STAR Firestar 9mm pistol in a bag on the floor of the room. Weathers was prohibited from possessing any firearms under federal law because of a 2012 federal drug conviction in the Southern District of West Virginia.
MASON COUNTY FELON PLEAS GUILTY TO FEDERAL GUN CRIME
A Mason County, West Virginia felon who possessed a firearm in March 2017, pled guilty today to being a felon in possession of a firearm, announced United States Attorney Mike Stuart. James S. Potter, II, 38, admitted that on March 29, 2017, he possessed a firearm while being on home confinement in Mason County. Potter was prohibited from possessing any firearm under federal law because of multiple felony convictions. Stuart praised the efforts of the Alcohol, Tobacco, Firearms and Explosives (ATF) and the Mason County Sheriff’s Department.
Potter faces up to 10 years in prison when he is sentenced on August 6, 2018.
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Parking Lot Operator Agrees to Plead Guilty in Scheme to Pay Bribes and Defraud the Department of Veteran’s Affairs out of $13+ MillionRead the Press Release
LOS ANGELES – The owner of a business that operated parking lots has agreed to plead guilty in a 15-year bribery scheme that allowed him to defraud the U.S. Department of Veteran’s Affairs out of more than $13 million that should have been paid in relation to the operation of parking facilities on the VA’s Los Angeles medical campuses.
In a plea agreement filed today in United States District Court, David Richard Scott, 58, the owner of Westside Services LLC (WSS), agreed to plead guilty to conspiracy and wire fraud.
Scott, who has been in custody since his arrest in November, is expected to appear in court on Thursday to formally enter his guilty pleas.
The scheme, which resulted in the payment of nearly $300,000 in bribes to VA contracting officer Ralph Tillman, cost the VA more than $13 million it should have received under a contract with WSS to operate parking lots on the campuses of the VA Greater Los Angeles Healthcare System (VA GLAHS). The vast majority of the activity authorized under the contract took place at the West Los Angeles VA Medical Center near Westwood and included parking for UCLA baseball games, the Wadsworth and Brentwood theaters, and the PGA golf tournament at the Riviera Country Club.
For approximately 18 years, Scott had a contract to operate parking lots at VA GLAHS that required him to pay 60 percent of the gross revenues from the parking lots. Scott was required to submit annual reports detailing revenue generated by parking fees, as well as improvements and services his company provided that could be used to offset payments due to the VA.
Scott maintained at least two sets of financial books, according to the plea agreement filed today. The numbers reported to the VA contained false revenue and expense statements, while a second set of books maintained by Scott’s bookkeeper/tax preparer contained the actual revenues and expenditures, except for unreported cash.
Scott “intentionally failed to satisfy obligations and services placed upon him by the contract, and intentionally underreported revenue and inflated expenses so that it would appear that the VA owed WSS significant payment,” according to the plea agreement. Scott’s “goal was to pay the VA as little as possible.”
As part of the scheme to defraud the VA, Scott began bribing Tillman in 2003 and continued to bribe him on a regular basis until Tillman abruptly retired in 2014 after he was confronted by federal agents. Scott continued making “hush money” payments to Tillman after his retirement to continue the scheme and attempt to avoid termination of his parking contract. Scott used cash collected at the parking lots – cash revenue he rarely reported to the VA – to pay Tillman at least $286,000 in bribes.
“This bribery and fraud scheme directly harmed our nation’s veterans by depriving them of revenues that could have been used to provide important services and medical care to the brave men and women who served in our armed forces,” said United States Attorney Nicola T. Hanna. “The bribery payments to a public official are disturbing because they compromised our trust in government, allowed the scheme to operate for years and led to this defendant pocketing millions of dollars that should have gone to the Department of Veteran’s Affairs.”
Over the course of the scheme, Scott underreported at least $4.6 million in revenues and failed to report an unknown amount of cash collected at the parking lots, according to the plea agreement. Additionally, Scott avoided making payments to the VA by marking up expenses associated with the parking lots – in some cases, up to 600 percent – and claiming to have spent $11.6 million to improve and maintain the facilities. For example, Scott told the VA he spent nearly $5.97 million on repairs and maintenance, while his bookkeeper’s records showed he spent only $1.4 million for paving, fencing and other services associated with the parking lots.
“Between 2003 and 2016, defendant Scott utilized WSS business bank accounts to pay for approximately $740,000 in travel, $413,000 in meals and entertainment, defendant Scott’s salary of $3.1 million, and countless personal expenses and owner’s draws totaling at least $13.9 million,” according to the plea agreement. While Scott installed signs at one parking lot claiming that “proceeds go toward helping veterans in need,” Scott admitted in the plea agreement that the money generated at this lot funded his lavish lifestyle and the bribe payments.
As a result of the long-running scheme to defraud the VA, Scott amassed considerable wealth, including three condominiums in Santa Monica, with a cumulative estimated value of $7 million; numerous high-end collectible cars, including several classic Corvettes and three Ferrari automobiles; a Cigarette “Top Gun” racing boat; and bank and brokerage accounts contained more than $1 million. When he was arrested, authorities seized more than $213,000 from Scott’s residence – cash that had been skimmed from the VA parking lots.
As part of his plea agreement, Scott and his wife have agreed to forfeit all of these assets. Scott has agreed to pay approximately $12,619,693 in restitution, a figure that takes into account some money already repaid to the VA.
The plea agreement calls for Scott to serve a sentence of 70 months in federal prison. The final decision on the appropriate sentence will rest with United States District Judge R. Gary Klausner. If Judge Klausner decides to impose another sentence, either party has the option of withdrawing from the plea agreement.
Tillman, who cooperated in the federal investigation, pleaded guilty in February to charges of making false statements to VA criminal investigators and subscribing to a false tax return. Tillman is scheduled to be sentenced by Judge Klausner on August 27.
“Veterans Affairs employees who engage in collusive relationships with contractors will be aggressively pursued by the Office of Inspector General and prosecuted to the full extent of the law,” said Special Agent in Charge A.E. Pleasant, U.S. Department of Veterans Affairs, Office of Inspector General, Criminal Investigations Division, Western Field Office.
The cases against Scott and Tillman are the result of an investigation by the United States Department of Veterans Affairs, Office of Inspector General; the Federal Bureau of Investigation; and IRS Criminal Investigation.
The prosecution of these cases is being handled by Assistant United States Attorney Ruth C. Pinkel of the Public Corruption and Civil Rights Section.
Owner of Queens Medical Employment Agency Indicted for Visa Fraud ConspiracyRead the Press Release
A federal grand jury in Brooklyn has returned an indictment against Rena Beduya Avendula, the owner and managing executive of Professional Placement & Recruitment, Inc. (PPRI), charging her with a visa fraud scheme that brought Filipino citizens into the United States for financial profit. Avendula is charged with five counts of visa fraud and with conspiring to defraud the United States, commit visa fraud and illegally bring aliens into the United States. Avendula was arrested Friday, arraigned before United States Magistrate Judge Ramon E. Reyes, Jr., and released on a $75,000 bond.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William B. Gannon, Special Agent-in-Charge, United States Department of State, Diplomatic Security Service (DSS), Boston Field Office, announced the charges.
“As alleged in the indictment, Avendula engineered a fraud scheme for personal profit by creating fake job positions to deceive a government program that allows a limited number of foreign nationals to enter the United States temporarily to fill highly specialized positions,” stated United States Attorney Donoghue. “We will continue to protect the integrity of our immigration process by ensuring that only qualified people receive these visas.”
“The Diplomatic Security Service is firmly committed to working with the U.S. Attorney’s Office and our other law enforcement partners to investigate allegations of crime related to passport and visa fraud and to bring those who commit these crimes to justice,” stated DSS Special Agent-in-Charge Gannon. Mr. Gannon also praised the efforts of the DSS New York Field Office, which provided outstanding investigative assistance during this case.
As alleged in the indictment, Avendula engaged in a scheme from October 2009 to February 2015 to bring Filipino citizens into the United States illegally by fraudulently claiming to the United States Citizenship and Immigration Services (USCIS) that the foreign nationals would be employed in “specialty occupations,” thereby qualifying for H-1B visas. The H-1B nonimmigrant visa classification allows foreign nationals to enter the United States temporarily for the specific purpose of working for the employer in a “specialty occupation.” A “specialty occupation” requires certain specialized knowledge and a bachelor’s or higher level degree for entry into the occupation within the United States labor market. General registered nurses (RNs) typically do not qualify as beneficiaries for H-1B visas. A sponsoring U.S. employer must submit a USCIS Form I-129 Petition for a Nonimmigrant Worker, along with supporting documentation, attesting that the visa beneficiary will be employed in a specialty occupation and paid at least the local prevailing wage paid to similarly qualified U.S. citizens and legal permanent residents working in the area. A limited number of H-1B visas are issued each year.
As alleged in the indictment, Avendula used PPRI, based in Woodside, New York, to further her visa fraud scheme. PPRI specialized in providing nursing care to elderly patients. Avendula, in an effort to secure some of the limited number of H-1B visas that are available each year, falsely stated that foreign nurses would be working in specialized nursing at prevailing wage rates. In fact, they were going to work as licensed practical nurses or RNs at significantly lower rates of pay, mostly at nursing homes and rehabilitation centers. The defendant sponsored dozens of fraudulent applications and profited from the filing fees she collected from the nurses and from the health care facilities that paid PPRI.
The charges announced today are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a statutory maximum of 10 years’ imprisonment for the visa fraud charges, and 10 years’ imprisonment for each foreign national she induced to reside in the United States in connection with the visa fraud conspiracy.
The government’s case is being handled by the Office’s General Crimes Section. Assistant United States Attorney Elizabeth Losey Macchiaverna is in charge of the prosecution.
The Defendant:
RENA BEDUYA AVENDULA
Age: 50
Woodside, New YorkE.D.N.Y. Docket No. 18-CR-246 (DLI)
Oklahoma City Man Sentenced to 10 Years in Prison for Attempting to Entice a 14-Year-OldRead the Press Release
OKLAHOMA CITY – HARRY DEAN WHEELER, JR., 68, of Oklahoma City, was sentenced today for attempting to entice a minor to have sex, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to an affidavit in support of a criminal complaint, an undercover agent with the Oklahoma Bureau of Narcotics and Dangerous Drugs posted an advertisement on Craigslist on September 19, 2017, in which he claimed to be a boy looking for a "daddy" who would be "willing to teach me about sex." The affidavit explained that through the Craigslist email reply function, Wheeler used explicit sexual language to indicate he wanted to meet the boy for a sexual encounter. He also included three nude photos of himself. According to the affidavit, the undercover agent responded: "Wow, your [sic] hot and sound really cool. Just to get it out of the way, I’m 14, but I’m very mature for my age, that’s why I don’t mind older guys." The affidavit stated Wheeler then replied by email: "We must keep it a secret as what we will be doing is not legal." Wheeler allegedly arranged to meet the person he thought was a 14-year-old boy in the parking lot of a business at 5501 North May Avenue in Oklahoma City, with the intention of driving him to his own residence. When Wheeler arrived at the parking lot and identified himself to the undercover agent as "daddy," federal agents arrested him.
The U.S. Attorney’s Office filed a criminal complaint against Wheeler on September 21, 2017. On November 8, 2017, a federal grand jury indicted him on one count of using a facility and means of interstate commerce to attempt to persuade, induce, and entice an individual he believed to be under the age of 18 to engage in sexual activity. On December 7, 2017, Wheeler pleaded guilty to that offense before U.S. District Judge Timothy D. DeGiusti.
At sentencing today, Judge DeGiusti sentenced Wheeler to ten years in prison. Upon release from prison, he will serve five years on supervised release. He will also be required to pay a $5,000 special assessment pursuant to the Justice for Victims of Trafficking Act.
This case is the result of an investigation by Homeland Security Investigations, part of the U.S. Department of Homeland Security, and the Oklahoma Bureau of Narcotics and Dangerous Drugs. Assistant U.S. Attorney Brandon Hale prosecuted the case.
Reference is made to court filings for further information.
Niagara Falls Man Sentenced on Gun ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y.—U.S. Attorney James P. Kennedy, Jr. announced today that Jerry Brown, 63, of Buffalo, NY, who was convicted of possession of a firearm in furtherance of drug trafficking and possession of a firearm with a defaced serial number, was sentenced to 101 months in prison by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Laura A. Higgins, who handled the case, stated that on January 12, 2012, law enforcement officers observed the defendant and co-defendant, Guy Lightfoot, conduct a suspicious transaction outside of 1953 Falls Street in Niagara Falls, NY. Brown, who was in his vehicle when officers approached, attempted to flee which led to a car chase. When officers located the defendant’s vehicle, it was vacant. A search of the vehicle uncovered four rounds of 9mm ammunition and a quantity of cocaine and heroin. Officers then searched the surrounding area and located a 9mm, semi-automatic handgun, bearing a defaced serial number, on a roof top in close proximity to the vehicle. The defendant was located and arrested. The serial number on the firearm was restored using magnetic particle and chemical techniques. Investigation determined it was stolen from a private residence in Niagara Falls.
Guy Lightfoot was previously convicted and sentenced.
Today’s sentencing is the result of an investigation by the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in Charge Kevin Kelly.
Nebraska Man Sentenced to Prison for Producing Child PornographyRead the Press Release
A Nebraska man was sentenced today to 15 years in prison, to be followed by five years of supervised release, for producing child pornography in 2015, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly of the District of Nebraska.
Nicholas Alford, 26, of Bellevue, Nebraska, pleaded guilty on Feb. 15, 2018 to one count of production of child pornography before Chief U.S. District Court Judge Laurie Smith Camp of the District of Nebraska, who sentenced him earlier today and remanded him to the custody of the U.S. Marshals Service.
According to admissions made in connection with his guilty plea, in July 2015, Alford provided a 13-year-old minor with the username for a Kik Messenger account user who Alford claimed would pay the minor money in exchange for sexually explicit images. Alford was actually the user of the Kik Messenger account, and, in that capacity, he persuaded the minor to send dozens of sexually explicit images to his Kik Messenger account. A search warrant executed on Alford’s Bellevue residence resulted in the discovery of dozens of images and videos depicting the minor engaged in sexually explicit conduct.
The FBI Cyber Crimes Task Force is investigating this case. Trial Attorneys William M. Grady and Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nebraska Man Sentenced to Prison for Producing Child PornographyRead the Press Release
A Nebraska man was sentenced today to 15 years in prison, to be followed by five years of supervised release, for producing child pornography in 2015, announced Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division and U.S. Attorney Joseph P. Kelly of the District of Nebraska.
Nicholas Alford, 26, of Bellevue, Nebraska, pleaded guilty on Feb. 15 to one count of production of child pornography before Chief U.S. District Court Judge Laurie Smith Camp of the District of Nebraska, who sentenced him earlier today and remanded him to the custody of the U.S. Marshals Service.
According to admissions made in connection with his guilty plea, in July 2015, Alford provided a 13-year-old minor with the username for a Kik Messenger account user who Alford claimed would pay the minor money in exchange for sexually explicit images. Alford was actually the user of the Kik Messenger account, and, in that capacity, he persuaded the minor to send dozens of sexually explicit images to his Kik Messenger account. A search warrant executed on Alford’s Bellevue residence resulted in the discovery of dozens of images and videos depicting the minor engaged in sexually explicit conduct.
The FBI Cyber Crimes Task Force is investigating this case. Trial Attorneys William M. Grady and Jessica Urban of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Michael P. Norris of the District of Nebraska are prosecuting the case.
This investigation is a part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Nampa Man Sentenced for Distribution of MethamphetamineRead the Press Release
BOISE - Robert Carlos Morales, 41, of Nampa, Idaho, was sentenced last week for distribution of methamphetamine, U.S. Attorney Bart M. Davis announced. Senior U.S. District Judge Edward J. Lodge sentenced Morales to140 months in prison. The Court also ordered that upon completion of his sentence, Morales serve four years of supervised release.
According to evidence presented in court, on March 14, 2017, Morales and co-defendant Anna Marie Delagarza distributed 53 grams of pure methamphetamine to an individual in Nampa, Idaho. On July 25, 2017, officers arrested Morales and discovered an additional 51 grams of methamphetamine in his vehicle. At the time these events occurred, Morales had absconded from felony supervised release on a previous federal drug trafficking case.
On January 24, 2018, Anna Marie Delagarza pleaded guilty to conspiracy to distribute methamphetamine. On April 17, 2018, Judge Lodge sentenced Delagarza to 72 months in prison.
This case was investigated by the Drug Enforcement Administration, Ada County Sheriff’s Office, the U.S. Marshals Service, and the Nampa Police Department.
This case was prosecuted by the Special Assistant U.S. Attorney hired by the Ada County Prosecuting Attorney’s Office, with funds provided by the Oregon-Idaho High Intensity Drug Trafficking Area (HIDTA). The HIDTA program is a national drug-prohibition enforcement program run by the United States Office of National Drug Control Policy. The Oregon-Idaho HIDTA is a collaboration of local law enforcement drug task forces and prosecuting agencies dedicated to addressing regional drug trafficking organizations. Idaho uses HIDTA funds to investigate and prosecute drug trafficking organizations that operate in and around Ada, Canyon, and Bannock counties.
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Médico del Sur de Texas Acusado de $240 Millones en Fraude al Sistema de Salud y Una Estratagema Internacional de Lavado de DineroRead the Press Release
WASHINGTON – A un médico radicado en el área de McAllen, Texas se le hizo una acusación formal, la cual se hizo pública el día de hoy, por su participación en un fraude de $240 millones al sistema de salud y una estratagema internacional de lavado de dinero.
El Fiscal General Adjunto John P. Cronan de la División Criminal del Departamento de Justicia, el Fiscal de los Estados Unidos Ryan J. Patrick del Distrito del Sur de Texas, el Agente Especial a Cargo C.J. Porter del Departamento de Salud y Servicios Humanos de los Estados Unidos de la Oficina del Inspector General (HHS-OIG) de la Región de Dallas y el Agente Especial a Cargo Christopher Combs de la Oficina Regional del FBI en San Antonio, emitieron el comunicado.
Jorge Zamora-Quezada, de 61 años, de Mission, Texas, fue acusado de siete cargos en el Distrito del Sur de Texas. Se le acusó de un cargo de asociación ilícita para cometer fraude al sistema de salud, cinco cargos de fraude al sistema de salud y un cargo de asociación ilícita para llevar a cabo el lavado de dinero.
“Jorge Zamora-Quezada presuntamente organizó una estratagema de fraude masivo que puso en peligro la salud y el bienestar de niños inocentes, personas de tercera edad y víctimas con discapacidad,” dijo el Fiscal General Adjunto Cronan. “Las alegaciones de que Zamora-Quezada violó su juramento de no hacer daño, al administrar quimioterapia innecesaria y otros medicamentos tóxicos, a pacientes con enfermedades graves — incluyendo a algunas de las víctimas más vulnerables que se pueda imaginar — son difíciles de entender. La División Criminal está comprometida a combatir el fraude al sistema de salud y de proteger a las víctimas de estratagemas censurables, como la que se alega en este caso.”
“Tomamos alegaciones de esta naturaleza muy en serio,” dijo el Fiscal estadounidense Patrick. “El enjuiciamiento contra el fraude al servicio de salud es una mayor prioridad para el Distrito del Sur de Texas, especialmente cuando sospechamos que pacientes vulnerables han sido presuntamente explotados, diagnosticados erróneamente o que quizá se les ha recetado medicamento que posiblemente sea dañino, como una manera de cometer este fraude.”
“La acusación formal del día de hoy es el primer paso en hacer al Dr. Zamora-Quezada responsable de su presunta conducta atroz y delictiva,” dijo HHS-OIG Agente Especial a Cargo Porter. “Sus pacientes confiaban en él y creían en su integridad; a cambio, presuntamente participó en una estratagema de diagnósticos y tratamientos falsos, y recetó medicamentos innecesarios y dañinos, a fin de obtener una ganancia financiera personal y sin tomar en cuenta el bienestar del paciente. HHS-OIG siempre perseguirá a delincuentes que se hagan pasar por médicos legítimos, los erradicará y les dará el castigo más severo posible, especialmente cuando el daño al paciente está de por medio.”
“El FBI está comprometido a trabajar con nuestros socios de los grupos operativos para combatir el fraude al sistema de salud,” dijo el Agente Especial a Cargo Combs. “Es un delito muy serio que va en aumento y que ha impactado cada ciudad y pueblo de la nación. Esta investigación destaca una inquietud aun mayor que es representante del fraude al sistema de salud, más allá de las pérdidas financieras significativas, es el daño físico y emocional que sufren los pacientes y sus familias. Por esta razón nosotros en el FBI, junto con nuestros socios de los grupos operativos, estamos comprometidos a ofrecerle justicia a las víctimas de los presuntos delitos del Dr. Zamora-Quezada.”
Como expone la acusación formal, desde el año 2000 hasta el día de la presentación de la acusación formal, Zamora-Quezada y sus cómplices diagnosticaron erróneamente a pacientes vulnerables – incluyendo a menores de edad, personas de tercera edad y personas con discapacidad, en el Valle del Río Grande, San Antonio, y en otros lugares – con varias enfermedades degenerativas, incluyendo la artritis reumatoide. Junto a sus cómplices, les administró quimioterapia y otros medicamentos tóxicos a pacientes basados en ese diagnóstico falso. Además de darles diagnósticos falsos a los pacientes, Zamora-Quezada y sus cómplices presuntamente llevaron a cabo una serie de procedimientos médicos fraudulentos, repetitivos y excesivos con los pacientes, a fin de aumentar los ingresos y financiar el estilo de vida lujosa y extravagante de Zamora-Quezada.
La acusación formal alega que Zamora-Quezada y sus cómplices volaban el avión privado de Zamora-Quezada de un millón de dólares o manejaban su Maserati, ambos grabados con sus iniciales, “ZQ”, entre sus oficinas en el Valle del Río Grande y San Antonio a fin de llevar a cabo el fraude. Él, junto a sus cómplices transfirieron el dinero recaudado de su asociación ilícita para comprar aviones privados, vehículos de lujo, ropa de tiendas de calidad superior como Louis Vuitton y propiedades exclusivas en varias partes de los Estados Unidos y México. Él, junto a sus cómplices presuntamente obstruyeron investigaciones al crear expedientes médicos falsos y ficticios, y le ocultaron miles de expedientes médicos a Medicare almacenándolos en establos inseguros y destartalados, ubicados en el Valle del Río Grande.
La acusación formal también alega que Zamora-Quezada y sus cómplices lavaron las ganancias de su estratagema, malgastando, transformando y ocultando la fuente y el lugar de sus ganancias al invertirlas en propiedades comerciales y residenciales en los Estados Unidos y México. Entre las propiedades, él junto a sus cómplices adquirieron dos penthouses en Puerto Vallarta, México; un condominio en Aspen, Colorado; un condominio en Punta Mita, México; y numerosas casas y propiedades comerciales ubicadas en diferentes partes de Texas. Después creó la falsa apariencia de riquezas e ingresos legítimos alquilándole a individuos y a entidades varias propiedades comerciales y residenciales que él había adquirido. Zamora-Quezada y sus cómplices presuntamente lavaron las ganancias en una casa de cambio, enviándolas a varias cuentas que mantenían en instituciones financieras en México.
La acusación formal solicita el decomiso del avión privado, el Maserati y las diferentes propiedades residenciales y comerciales de Zamora-Quezada en los Estados Unidos y México.
Una acusación formal es simplemente una alegación y todo acusado es inocente hasta que se compruebe su culpabilidad más allá de una duda razonable en un tribunal de justicia.
La Oficina Regional de McAllen de HHS-OIG, el Grupo Operativo contra el Fraude al Sistema de Salud de la Oficina Satélite de McAllen en el Valle del Río Grande de la División de San Antonio y el Grupo Operativo de McAllen contra Delitos Financieros están llevando a cabo la investigación de este caso. Estos grupos operativos están compuestos de investigadores del Departamento de Seguros de Texas, del Departamento de Policía de McAllen, del Departamento de Policía de Pharr y de la Comisión de Salud y Servicios Humanos de Texas.
El Abogado Procesalista Kevin Lowell de la Sección de Fraude de la División Criminal y el Fiscal Adjunto de los Estados Unidos Andrew Swartz del Distrito del Sur de Texas, están llevando este caso a juicio.
El FBI está buscando identificar posibles víctimas de Zamora-Quezada y sus cómplices. Si usted fue paciente de Zamora-Quezada entre enero 2000 y mayo 2018 y cree que pudo haber sido afectado por sus presuntos delitos y el de sus cómplices, por favor llame al FBI a su línea directa, 1-833-432-4873, Opción 8 o 9, o si tiene acceso a un correo electrónico, envié su correo al grupo operativo a [email protected]. Por ley el FBI tiene que identificar a las víctimas de los delitos federales que investiga y tiene que proporcionarles a dichas víctimas información, servicios de asistencia y recursos.
La Sección de Fraude lidera el Equipo de Prevención de Fraude al Medicare, el cual forma parte de una iniciativa conjunta entre el Departamento de Justicia y HHS, quienes enfocan sus esfuerzos para prevenir e impedir el fraude e implementan las leyes actuales en contra del fraude en todo el país. El Equipo de Prevención de Fraude al Medicare opera en nueve localidades en toda la nación. Desde su comienzo en marzo del 2007, el Equipo de Prevención de Fraude al Medicare ha presentado cargos a más de 3,500 acusados quienes han colectivamente defraudado al programa de Medicare por más de $12.5 mil millones.
Monroe County Man Sentenced for Discharge of Firearm During A Drug Trafficking CrimeRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on May 11, 2018, United States District Court Judge Malachy E. Mannion sentenced Pablo Martinez, age 28, of East Stroudsburg, Pennsylvania, to 150 months’ imprisonment for a shooting that occurred in East Stroudsburg on January 12, 2016.
According to United States Attorney David J. Freed, Martinez pled guilty to the discharge of a firearm during and in relation to a drug trafficking crime and a crime of violence. Martinez admitted that he was part of a conspiracy to rob a fellow drug dealer, lured to a meeting under the guise of a marijuana deal. Martinez and co-conspirators waited in a pickup truck until the victim entered the front passenger seat, then sped off. During the ensuing altercation, Martinez shot the victim twice, and the victim was thrown from the truck at speed, suffering severe injuries. Martinez was a member of the Brick City Brims, a violent street gang involved in drug trafficking and other criminal activity in the East Stroudsburg area.
Two codefendants, Deshaun Lipscomb and Orrett Campbell, have pled guilty to felony charges and are awaiting sentencing.
The case was investigated by the Federal Bureau of Investigation, the Pennsylvania State Police, and the Stroud Area Regional Police Department. Assistant U.S. Attorney Sean A. Camoni is prosecuting the case.
This case is part of Project Safe Neighborhoods (PSN), a program bringing together all levels of law enforcement and the communities they serve to reduce violent crime and make our neighborhoods safer for everyone. 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.
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Mexican National Sentenced to 127 Months for Drug Trafficking and Unlawful Re-Entry into United StatesRead the Press Release
LEXINGTON, Ky. – On Friday, a Mexican National, Hector Salas-Pina, 40, was sentenced to 127 months in federal prison. United States District Judge Danny C. Reeves sentenced Salas-Pina for conspiracy and possession with the intent to distribute cocaine and unlawful re-entry into the United States, after a previous deportation for an aggravated felony.
Salas-Pina was tried and convicted of the drug charges, in February of this year. The evidence at trial established that Salas-Pina obtained six kilograms of cocaine, from other individuals who had concealed it in the axles of a trailer. Salas-Pina drove a vehicle and the trailer to Lexington, to be delivered to a cocaine dealer for sale in Lexington. On May 17, 2017, members of the Lexington Police Department, in conjunction with the FBI and KSP, made a stop of the vehicle and trailer and subsequently located the cocaine. The street value of the cocaine is approximately $600,000. Following the trial, Salas-Pina entered a guilty plea to re-entry charge.
Under federal law, Salas- Pina must serve 85 percent of his prison sentence; and upon release, he will be deported from the United States.
Robert M. Duncan, Jr., United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, FBI; Kristoffer Cortez, Acting Assistant Field Office Director , Department of Homeland Security, U.S. Immigration and Customs Enforcement; Richard Sanders, Commissioner of the Kentucky State Police: and Chief Lawrence Weathers, Lexington Police Department, jointly made the announcement.
The investigation was conducted by the FBI, ICE, KSP, and the Lexington Police Department. The United States was represented by Assistant United States Attorney Roger W. West.
Mexican National Pleads Guilty to Distributing MethamphetamineRead the Press Release
SACRAMENTO, Calif. — Today, just as trial was set to begin, Martin Gasca-Rojas, 49, of Mexico, pleaded guilty to three counts of distributing methamphetamine, U.S. Attorney McGregor W. Scott announced.
According to court documents, between October 2016 and May 2017, Gasca-Rojas distributed nearly 4 pounds of methamphetamine on three occasions. In October 2016, Gasca‑Rojas sold 1 pound of methamphetamine for $3,300. In November 2016, he arranged a sale of 2 pounds of methamphetamine for $6,500, and had two other individuals deliver the methamphetamine. Finally, in May 2017, he sold 1 pound of methamphetamine for $3,600.
This case is the product of an investigation by the Drug Enforcement Administration and the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). Assistant U.S. Attorneys Audrey B. Hemesath and Owen Roth are prosecuting the case.
Gasca-Rojas is scheduled to be sentenced by U.S. District Judge John A. Mendez on August 21, 2018. Gasca-Rojas faces a maximum statutory penalty of life in prison and a $10 million fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Memorial Hermann Health System to Pay Nearly $2 Million to Resolve Improper Billing AllegationsRead the Press Release
HOUSTON – One of Houston’s largest health care providers has agreed to pay the United States $1,929,071.38 to resolve allegations that it improperly billed government healthcare programs, announced U.S. Attorney Ryan K. Patrick. The allegations include inappropriately billing for inpatient services provided to Medicare beneficiaries who were admitted for scheduled surgical procedures, but should have been treated in a less expensive outpatient or observation setting.
“Charging the government for higher cost inpatient services when patients only require lower cost outpatient services is a waste of taxpayer money and a violation of trust with the patient and with the government,” said Patrick. “This settlement should deter similar conduct in the future and help make health care more affordable.”
The government alleged that from Jan. 1, 2009, through Dec. 31, 2014, three Memorial Hermann Health System (MHHS) hospitals - the Texas Medical Center, Southwest and Memorial City - submitted claims to Medicare for scheduled surgical procedures in which the patient’s hospital stay lasted two days or less as inpatient services. The claims should have been submitted as outpatient services. This allegedly caused these three hospitals to receive more in reimbursements from the Medicare program than they were entitled to collect. These payments were mistakenly made and caused MHHS to be unjustly enriched, entitling the United States to compensation.
This settlement is a representation of the coordinated efforts of the U.S. Attorney’s Office, Department of Health and Human Services (DHHS) - Office of Inspector General and DHHS - Office of Audit Services to combat healthcare fraud and abuse.
The claims resolved by this agreement are allegations only, and there has been no determination of liability.
Assistant U.S. Attorney Andrew A. Bobb handled the matter on behalf of the Southern District of Texas.
Martinsburg man admits to illegal ammunition chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – Gary Owen Jones, of Martinsburg, West Virginia, has admitted to an illegal possession of ammunition charge, United States Attorney Bill Powell announced.
Jones, age 46, pled guilty to one count of “Unlawful Possession of Ammunition.” Jones, who was previously convicted of a felony in the Circuit Court of Berkeley County, possessed more than 1,100 rounds of ammunition in February of 2018 in Berkeley County.
Jones faces up to 10 years incarceration and a fine of up to $250,000. 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 Lara Omps-Botteicher is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Local Man Gets More Than Eight Years for Illegally Possessing FirearmRead the Press Release
CORPUS CHRISTI, Texas - A 27-year-old Corpus Christi man has been ordered to federal prison following his conviction of being a felon in possession of a firearm, announced U.S. Attorney Ryan K. Patrick. Cody Anthony Hernandez pleaded guilty Feb. 20, 2018.
Today, Senior U.S. District Judge John D. Rainey sentenced Hernandez to 102 months imprisonment to be followed by three years of supervised release.
In July 2017, authorities were conducting surveillance when they observed Hernandez, who had outstanding municipal warrants, arrive at the location. When officers approached Hernandez, they could see the grip of a handgun inside a backpack that was located in his vehicle. Hernandez was arrested for the warrants and officers recovered a .40 caliber Glock handgun loaded with a 30 round magazine. Hernandez had previously been convicted of a felony and is prohibited by federal law from possessing firearms and ammunition.
In custody since his arrest on the federal indictment, Hernandez will remain in custody pending transfer to a U.S. Bureau of Prisons facility to be designated in the near future.
The Corpus Christi Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and Immigration and Customs Enforcement’s Homeland Security Investigations conducted the investigation. Assistant U.S. Attorney Lance Watt is prosecuting the case.
Lancaster Man Pleads Guilty to Tax EvasionRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Ronald Wieczorek, 57, of Lancaster, NY, pleaded guilty before U.S Magistrate Judge H. Kenneth Schroeder to tax evasion. The charge carries a maximum penalty of five years in prison and a fine of $250,000.
Assistant U.S. Attorney Russell T. Ippolito, who is handling the case, stated that between January 1, 2000, and April 15, 2013, the defendant attempted to evade paying individual federal income taxes for the calendar years 2000 through 2009.
During the above time-period, the defendant took a number of steps to hide his income and assets from the IRS in order to prevent the IRS from collecting on taxes that he owed. For example, on May 27, 2009, Wieczorek dissolved his own business and created two new businesses, RMS Blacktop and RMS Hauling, in the name of another individual, in order to conceal his assets.
The defendant also used business receipts and money from these business accounts to pay personal expenses, including the payment of personal credit card expenses. In order to do so, Wieczorek forged the name of a person with signatory authority on the business account checks.
The defendant made numerous other attempts to conceal his assets from the IRS including, on three occasions, filing false statements with the IRS indicating that he could not afford to pay the taxes he owed. The tax loss to the IRS totaled $962,488.98.
Today’s plea is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett.
Sentencing will be scheduled at a later date.
Kalamazoo-Area Man Sentenced to 25 Years in Federal Prison for Producing Child PornographyRead the Press Release
GRAND RAPIDS, MICHIGAN – Brandon Jacob Cochran, 26, formerly from Portage, Michigan, was sentenced to 25 years in federal prison for producing child pornography, U.S. Attorney Andrew Birge announced today. In addition to the prison term, U.S. District Judge Janet T. Neff imposed a 10-year term of supervised release that will commence once Cochran is released from imprisonment. Cochran will also be required to register as a sexual offender.
Cochran pled guilty on February 5, 2018. He admitted that he had molested and digitally penetrated a three-year-old child, and he had used his cellphone to photograph the abuse. In its sentencing memorandum, the U.S. Attorney’s Office argued in favor of a lengthy sentence, emphasizing that the victim in this case was only three years old and particularly vulnerable to Cochran’s predation. Moreover, Cochran had a history of sexually abusive conduct, and he had amassed a sizable collection of child pornography in addition to the images he created. The government argued that a lengthy sentence was needed both to protect the public and “to reflect the gravity and seriousness of the defendant’s crimes, to promote respect for the law, and to justly punish the defendant.”
This case is part of Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. The U.S. Attorney's Office, county prosecutor's offices, the Internet Crimes Against Children task force (ICAC), federal, state, and local law enforcement are working closely together to locate, apprehend, and prosecute individuals who exploit children. The partners in Project Safe Childhood work to educate local communities about the dangers of online child exploitation, and to teach children how to protect themselves. For more information about Project Safe Childhood, please visit the following web site: www.projectsafechildhood.gov. Individuals with information or concerns about possible child exploitation should contact local law enforcement officials.
The Detroit and Cleveland Divisions of the Federal Bureau of Investigation (FBI), Portage Police Department, and Michigan State Police investigated the case. Assistant U.S. Attorney Sean M. Lewis prosecuted the case.
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Jamaican Woman Guilty of Lottery Scam Targeting Elderly VictimsRead the Press Release
ALEXANDRIA, Va. – A Jamaican citizen pleaded guilty today to orchestrating a lottery fraud that scammed elderly victims out of approximately $385,000.
According to court documents, Tessicar Karelle Jumpp, 34, conspired with several of her family members and associates to scam elderly victims out of their savings. From her home in Jamaica, Jumpp contacted victims in the United States and used an alias to pretend to be a representative of Publishers Clearing House. Jumpp falsely informed her victims that they had won a lottery prize of millions of dollars, but that in order to collect their winnings, they would need to pay taxes and advance fees. Jumpp then instructed her victims to send funds through wire transfers and in packages of cash mailed to her co-conspirators in the United States. Those co-conspirators would keep a portion of the funds and then send the remainder to Jumpp and others in Jamaica. Jumpp’s victims included an 85-year-old woman from Great Falls who was scammed out of over $335,000, and an 85-year-old Massachusetts man who was defrauded out of almost $50,000.
Earlier this year, the Department of Justice and its law enforcement partners coordinated the largest sweep of elder fraud cases in history. The cases involved more than 250 defendants from around the globe who victimized more than a 1 million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across more than 50 federal districts.
Jumpp was extradited to the United States from Jamaica and pleaded guilty to conspiracy to launder monetary instruments. She faces a maximum penalty of 20 years in prison when sentenced on August 10. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, Nancy McNamara, Assistant Director in Charge of the FBI’s Washington Field Office, Joseph Cronin, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, and Brian A. Michael, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Newark Field Office, made the announcement after Senior U.S. District Judge T.S. Ellis, III accepted the plea. Assistant U.S. Attorney Samantha Bateman is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-416.
Jackson Man Pleads Guilty to Illegally Possessing a Firearm under Project EJECTRead the Press Release
Jackson, Miss. – Marcus Reese, 38, of Jackson, pled guilty Thursday before United States District Judge Daniel P. Jordan III, to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Dana Nichols of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF).
On September 8, 2017, law enforcement attempted to execute a search warrant at Marcus Reese’s apartment on O’Bannon Street in Jackson, Mississippi—a place suspected of illegal drug activity. As officers approached the apartment, Reese fled on foot through his apartment and ran out the back door. Officers ultimately stopped Reese and arrested him. They found a loaded Taurus .357 revolver in Reese’s pants pocket.
Reese has a previous conviction in Hinds County, Mississippi, for the felony offense of conspiracy to commit murder.
Reese will be sentenced in Jackson by Judge Daniel P. Jordan III on August 21, 2018, and faces a maximum penalty of 10 years in prison, followed by up to 3 years of supervised release, and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with ATF agents and Project EJECT task force members in the investigation of this case.
Inmate Sentenced to Nine Years for Razor AttackRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on May 10, 2018, United States District Court Judge Matthew W. Brann sentenced Robert Stoddard, of Washington D.C., to nine years in prison for assault with a dangerous weapon and possession of contraband while an inmate at United States Penitentiary, Allenwood. A federal jury in Williamsport found Stoddard, age 47, guilty of both charges after a two-day trial in January.
According to United States Attorney David J. Freed, Stoddard attacked another inmate with a weapon fashioned from a razor blade. The victim required over fifty stitches for his wounds and was permanently scarred on a substantial portion of his face. Jurors viewed a security camera video of the attack from two angles and heard testimony from correctional officers, a prison psychologist, and the victim himself. Stoddard testified in his own defense, and was later found to have obstructed justice, in part, because he gave testimony that was untruthful.
By law, the 108-month sentence will run consecutive to Stoddard’s current sentence, which won’t be fully served until March of 2021.
The investigation was conducted by the Federal Bureau of Investigation and officers at USP Allenwood. The case was prosecuted by Assistant United States Attorneys Sean A. Camoni and Alisan VanFleet.
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Illegal Alien Admits Unlawfully Returning to the United States and Failing to Register as A Sex OffenderRead the Press Release
CAMDEN, N.J. – An El Salvadorian man previously convicted for sexually assaulting a child today admitted to failing to register as a sex offender after unlawfully returning to the United States and traveling to New Jersey, U.S. Attorney Craig Carpenito announced.
Samuel De Jesus Corvera-Mata, 42, pleaded guilty before Senior U.S. District Judge Jerome B. Simandle in Camden federal court to a two-count information charging him with illegal re-entry subsequent to conviction for an aggravated felony and failing to register as required by the Sex Offender Registration and Notification Act (SORNA).
SORNA requires all sex offenders to register and keep that registration current in each jurisdiction where the sex offender resides.According to documents filed in this case and statements made in court:
Corvera-Mata admitted that he illegally re-entered the United States after being deported to El Salvador following a 10-year prison sentence in California for committing multiple lewd and lascivious acts upon a seven-year-old child. As a result of his prior offenses, Corvera-Mata was required to register as a sex offender if he ever returned to the United States. Corvera-Mata later illegally re-entered the country and travelled to New Jersey, where he was located and arrested in October 2017.
Corvera-Mata faces a maximum potential penalty of 20 years in prison and a $250,000 fine for the illegal re-entry charge, and 10 years in prison and a $250,000 fine for the SORNA charge. Sentencing is scheduled for Sept. 7, 2018.
U.S. Attorney Carpenito credited officers of U.S. Immigration and Customs Enforcement’s (ICE) Enforcement and Removal Operations (ERO), under Newark Field Office Director John Tsoukaris, and the U.S. Marshals Service, under the direction of U.S. Marshal Juan Mattos in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Gabriel J. Vidoni of the U.S. Attorney’s Office’s Criminal Division in Camden.
Defense counsel: Maggie Moy Esq., Camden, New Jersey
Hattiesburg Man Sentenced to Two Years in Prison for Tax EvasionRead the Press Release
Hattiesburg, Miss. – Michael J. Super, 44, of Hattiesburg, was sentenced on Thursday by U.S. District Judge Keith Starrett for federal tax evasion, announced U.S. Attorney Mike Hurst and Thomas J. Holloman III, Acting Special Agent in Charge, IRS Criminal Investigation.
Super was sentenced to serve 24 months in federal prison, followed by a three-year term of supervised release. The Court also ordered Super to pay restitution in the amount of $165,075.92.
On February 18, 2018, Super pled guilty to tax evasion for failing to pay federal employee trust fund taxes due on behalf of the employees of his company, Eagle Eye Security Services of Hattiesburg. Super had entered into an agreement with the government to pay these taxes over a period of time, but failed to make any payments. The IRS issued levies against the company, but Super still failed to make any payments. To avoid the IRS levies, Super opened another security business to which he transferred all of the assets and clients of his previous company. When the IRS pursued the assets of the second company, Super again transferred all assets and clients to a third company. The IRS collected some of the employee trust fund taxes due, but Super evaded paying $165,075.92, which he will now be required to pay in restitution as a part of his sentence.
The case was investigated by IRS Criminal Investigation and prosecuted by Assistant United States Attorney Dave Fulcher.
Harrison County man admits to firearm chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Dent, of Bridgeport, West Virginia, has admitted to illegally possessing a firearm, United States Attorney Bill Powell announced.
Dent, age 32, pled guilty to one count of “Unlawful Possession of a Firearm.” Dent, who had previously been convicted of crimes in New Jersey, admitted to having a 9mm caliber pistol in May 2017 in Harrison County.
Dent faces up to 10 years incarceration and a fine of up to $250,000. 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 Zelda E. Wesley is prosecuting the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Bridgeport Police Department investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Founders of Cryptocurrency Company Indicted in Manhattan Federal Court with Scheme to Defraud InvestorsRead the Press Release
Robert Khuzami, Attorney for the United States, Acting Under Authority Conferred by 28 U.S.C. § 515, announced that a grand jury in the Southern District of New York has returned an Indictment charging SOHRAB SHARMA, a/k/a “Sam Sharma,” RAYMOND TRAPANI, a/k/a “Ray,” and ROBERT FARKAS, a/k/a “RJ,” a/k/a “Bob,” the three co-founders of a startup company called Centra Tech, Inc. (“Centra Tech”), that purported to offer cryptocurrency-related financial products, with conspiring to commit, and the commission of, securities and wire fraud in connection with a scheme to induce victims to invest millions of dollars’ worth of digital funds for the purchase of unregistered securities, in the form of digital currency tokens issued by Centra Tech, through material misrepresentations and omissions. SHARMA, TRAPANI, and FARKAS were all arrested last month based on criminal complaints filed by this Office charging them with the same crimes.
Following their arrests, this Office and the Federal Bureau of Investigation (“FBI”) seized 91,000 Ether units, consisting of digital funds raised from victims as part of the charged scheme. This seized digital currency is presently worth more than $60 million. The case has been assigned to United States District Judge Lorna G. Schofield.
Mr. Khuzami said: “As alleged, the defendants conspired to capitalize on investor interest in the burgeoning cryptocurrency market. They allegedly made false claims about their product and about relationships they had with credible financial institutions, even creating a fictitious Centra Tech CEO. Whether traditional or cutting-edge, investment vehicles can’t legally be peddled with falsehoods and lies.”
According to the allegations in the Indictment filed in this case, the criminal complaints previously unsealed in this case, and in other filings and statements at public court proceedings in the case:[1]
After SHARMA and TRAPANI worked together at a luxury car rental company in Florida called “Miami Exotics,” they and FARKAS co-founded a startup company called Centra Tech that claimed to offer cryptocurrency-related financial productions, including a purported debit card, the “Centra Card,” that supposedly allowed users to spend various types of cryptocurrency to make purchases at any establishment that accepts Visa or Mastercard payment cards. In approximately July 2017, SHARMA, TRAPANI, and FARKAS began soliciting investors to purchase unregistered securities, in the form of digital tokens issued by Centra Tech, through a so-called “initial coin offering” or “ICO.” As part of this effort, SHARMA, TRAPANI, and FARKAS, in oral and written offering materials that were disseminated via the internet, represented: (a) that Centra Tech had an experienced executive team with impressive credentials, including a purported CEO named “Michael Edwards” with more than 20 years of banking industry experience and a master’s degree in business administration from Harvard University; (b) that Centra Tech had formed partnerships with Bancorp, Visa, and Mastercard to issue Centra Cards licensed by Visa or Mastercard; and (c) that Centra Tech had money transmitter and other licenses in 38 states, among other claims. Based in part on these claims, victims provided millions of dollars’ worth of digital funds in investments for the purchase of Centra Tech tokens. In or about October 2017, at the end of Centra Tech’s ICO, those digital funds raised from victims were worth more than $25 million. Due to appreciation in the value of those digital funds raised from victims, those digital funds are presently worth more than $60 million.
The representations that SHARMA, TRAPANI, and FARKAS made to help secure these investments, however, were false. In fact, the purported CEO “Michael Edwards” and another supposed member of Centra Tech’s executive team are fictitious people who were fabricated to dupe investors; Centra Tech had no such partnerships with Bancorp, Visa, or Mastercard; and Centra Tech did not have such licenses in a number of those states.
SHARMA, TRAPANI, and FARKAS were well aware of the falsity of such claims. For example, with respect to Centra Tech’s purported partnerships with Bancorp, Visa, and Mastercard, SHARMA engaged in a cellphone text message conversation with TRAPANI on or about July 31, 2017, in which they discussed Centra Tech’s lack of actual partnerships with banks or credit card companies. During that exchange, SHARMA wrote: “Should write down a list of places to call tomorrow,” “For the conbranded [sic] card.” Later in the exchange, SHARMA wrote: “Gotta get it going on the banks today plz.” SHARMA also subsequently wrote: “We just need to get s [sic] banking license,” “Need our direct agreement with visa,” “Or MasterCard,” “That’s the move,” “Cut out the middle man,” “I wish we just knew someone.”
With respect to Centra Tech’s purported CEO “Michael Edwards,” SHARMA text-messaged TRAPANI on or about July 29, 2017, that they “Need to find someone who looks like Michael,” “Team photos,” “He’s real lol,” “Everyone real,” “Except Jessica,” “And Mike.” Similarly, SHARMA later wrote during that same exchange: “Gonna kill both Ceo and her,” “Gonna say they were married and got into an accident.”
Finally, with respect to Centra Tech’s purported money transmitter and other licenses in 38 states, SHARMA had a text message conversation with TRAPANI and FARKAS on or about August 30, 2017, about applying for state licenses that Centra Tech had previously represented it already held in 38 states. For example, SHARMA wrote in one message on or about August 30, 2017, to TRAPANI and FARKAS: “Gotta apply for all licenses,” “Should I even say this.”
On or about May 2, 2018, this Office and the FBI seized, pursuant to a judicially authorized seizure warrant, 91,000 Ether units, consisting of digital funds raised from victims who purchased digital tokens issued by Centra Tech during its ICO based on fraudulent misrepresentations and omissions. The seized funds are presently worth more than $60 million.
In a separate action, the United States Securities and Exchange Commission (the “SEC”) has filed civil charges against SHARMA, TRAPANI, and FARKAS.
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SHARMA, 27, TRAPANI, 27, and FARKAS, 31, are all residents of Florida. All three of them are charged in a four-count Indictment with one count of conspiracy to commit securities fraud, which carries a maximum potential sentence of five years in prison; one count of conspiracy to commit wire fraud, which carries a maximum potential sentence of 20 years in prison; one count of securities fraud, which carries a maximum potential sentence of 20 years in prison; and one count of wire fraud, which carries a maximum potential sentence of 20 years in prison. In addition to potential prison sentences, each of these charges also carries potential financial penalties. The maximum potential prison sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Mr. Khuzami praised the work of the FBI and thanked the SEC for its assistance. Mr. Khuzami also thanked the Department of Homeland Security, Homeland Security Investigations (“DHS-HIS”) and the District Attorney’s Office for New York County for their assistance in this case.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant United States Attorneys Samson Enzer and Negar Tekeei are in charge of the prosecution. Assistant United States Attorney Daniel Tracer is in charge of the forfeiture aspects of the case.
The allegations contained in the charging documents in this case are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Complaints and the Indictment, and the description of the Complaints and the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
Former U.S. Border Patrol Agent Sentenced to Seven and A Half Years in Prison for Bribery and Drug TraffickingRead the Press Release
TUCSON, Ariz. - Today, Alberto M. Michel, 41, of Casa Grande, Ariz., was sentenced by Senior U.S. District Judge David C. Bury. Michel had previously pleaded guilty to one count of conspiracy to traffic marijuana and one count of accepting a bribe as a public official. He received a sentence of 90 months in prison followed by 3 years of supervised release and a $24,000 forfeiture judgment.
In his plea agreement, Michel admitted that while employed as a United States Border Patrol Agent, with the Tucson Sector Border Patrol Intelligence Unit, he participated in a drug conspiracy by providing surveillance during drug smuggling efforts. Additionally, Michel provided assistance regarding law enforcement interdiction efforts. He also agreed to receive cash payments equal to $40 per pound of marijuana smuggled and received a total of $24,000 during the course of the conspiracy.
On Aug. 3, 2017 and Aug. 7, 2017, Michel received cash payments totaling $12,000 for agreeing, as a sworn public official, to violate his sworn duty to investigate and interdict narcotics smugglers.
Michel had been employed with United States Border Patrol since 2009. By 2016, he had been promoted to an enhanced role with the Tucson Sector Border Patrol Intelligence Unit, where he had a higher security clearance and had access to information regarding high-level law enforcement and national security operations and techniques.
Co-defendants Eunice M. Lopez and Marco Antonio L. Bustamante are scheduled for Change of Plea Hearings on May 15, 2018.
The investigation was conducted by members of the Southern Arizona Corruption Task Force that consists of the Federal Bureau of Investigation, Department of Homeland Security - Office of the Inspector General, Customs and Border Protection – Office of Professional Responsibility, Immigration and Customs Enforcement – Office of Professional Responsibility, and Tucson Police Department. Prosecution was handled by Sarah B. Houston and Gordon E. Davenport III, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: 4:17-CR-01733-DCB-JR
RELEASE NUMBER: 2018-063_ Michel_etal
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former Bookkeeper and Associate Sentenced to Prison for Embezzling More Than $1 Million from Fresno BusinessRead the Press Release
FRESNO, Calif. — U.S. District Judge Dale A. Drozd sentenced Brandi Marshall, 41, of Fresno to four years and three months in prison, and Daniel Barrios Jr., 37, of Fresno to two years and seven months in prison for conspiracy to commit wire fraud and bank fraud and conspiracy to launder money in connection with their embezzlement of money from a Fresno business, U.S. Attorney McGregor W. Scott announced.
According to court documents, Marshall was employed as the company’s bookkeeper between October 2014 and March 2016 and was responsible for, among other things, receiving and depositing checks from customers to pay their invoices. During that time, she and Barrios misappropriated more than 100 checks and fraudulently deposited them into Barrios’ personal bank account. Marshall and Barrios used money derived from the fraudulently deposited checks for personal purchases, including more than $35,000 to purchase and accessorize a 2016 Ford Mustang GT, and more than $25,000 to purchase a 2012 Dodge Challenger. Marshall created fictitious entries in the company’s computer accounting application to attempt to conceal the embezzlement. Together, Marshall and Barrios embezzled more than $1 million and were ordered by the court to pay restitution.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Christopher D. Baker prosecuted the case.
Florida Man Sentenced on Mail Fraud and Tax Evasion ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Michael Kornaker, 47, of North Tonawanda, NY, who was convicted of mail fraud and tax evasion, was sentenced to 28 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $602,052.19.
Assistant U.S. Attorney Trini E. Ross, who handled the case, stated that between June 2014 and April 9, 2016, the defendant devised a scheme to defraud insurance companies which were holding unclaimed funds. The funds were advertised on a website belonging to the California State Controller’s Office.
Specifically, Kornaker sent documentation of entitlement to unclaimed funds to the victim companies using false and fraudulent identities, including the name “Vinnie Sciarrino,” and entities, including “Insurance Marketing Resources.” Any funds received from victim companies were deposited into bank accounts maintained by the defendant.
In addition, between June 11, 2015, and November 9, 2015, Kornaker made a claim for unclaimed property held by Jackson National Life Insurance Company using the names Vinnie Sciarrino and Insurance Marketing Resources.
As part of the scheme to defraud, the defendant identified at least 113 companies and submitted fraudulent documentation to change the entity’s mailing address to addresses under his control in the Western District of New York. As a result, the defendant was paid approximately $450,000 in funds to which he was not entitled and owes the IRS $155,859 for tax years 2014 and 2015, as a result of his failure to claim the income he earned from the fraud.
Today’s sentencing is the result of an investigation by the United States Postal Service Inspection Service, Boston Division, under the direction of Acting Inspector-in- Charge Delany E. De Leon-Colon; the Internal Revenue Service, Criminal Investigation Division, under the direction of Special Agent-in-Charge James D. Robnett; and the New York State Department of Financial Services, Criminal Investigations Unit, under the direction of Superintendent Maria T. Vullo.
Final Four Ordered to Prison in 10-Defendant Cocaine ConspiracyRead the Press Release
HOUSTON - The remaining defendants charged in a Dickinson area cocaine conspiracy have all been ordered to federal prison, announced U.S. Attorney Ryan K. Patrick. The 10 were charged in a multi-state drug trafficking conspiracy that had been moving cocaine since 2014.
Arturo Cruz, 35, of Dickinson, pleaded guilty to conspiracy to possess with the intent to distribute more than five kilograms or more of cocaine, while Patrick Frederick, 49, of Galveston, Dionisio Gonzalez, 56, of Bacliff, and Carlos Cantu, 36, of Dickinson, previously pleaded guilty to conspiracy to possess with intent to distribute more than 500 grams of cocaine.
Today, U.S. District Judge Vanessa Gilmore sentenced Cruz, who was responsible for distributing more than 50 kilograms of cocaine, to 130 months in federal prison. Frederick received a 120-month-term of imprisonment, while Gonzales and Cantu received respective terms of 77 and 87 months. The court found Cruz to be a leader within the conspiracy so his prison term included upward adjustments or increases in his calculated sentencing guideline range.
Cruz also forfeited his interests in real estate located in Dickinson valued in excess of $150,000.
The other six charged and convicted in the case included Arturo Cruz’s bother, Amado Cruz, 27, of Dickinson, along with Guadalupe Ochoa, 30, of Houston, Matt Olguin, 28, Reid Wilder 33, and Sidney Hobbs, 47, all of Dickinson. The previously received sentences ranging from 72-121 months in federal prison.
All were part of a multi-state drug trafficking organization that had existed since 2013. The drug trafficking organization, based out of the Dickenson area, had cocaine couriered in from Houston where it was then either sent out of state or redistributed to the surrounding areas.
The FBI led the nearly three-year Organized Crime Drug Enforcement Task Force investigation with the assistance of the Drug Enforcement Administration, Texas Department of Public Safety, Galveston County Sheriff’s Office and the Dickinson Police Department. Assistant U.S. Attorney John Jocher prosecuted the case.
Federal Jury Finds Man Who Planned Attack on Jacksonville Mosque Guilty of Illegal Possession of Unregistered Firearm SilencerRead the Press Release
Jacksonville, Florida – A federal jury has found Bernandino G. Bolatete (69, Jacksonville) guilty of possessing an unregistered firearm silencer. He faces a maximum penalty of 10 years in federal prison. His sentencing hearing has been set for July 25, 2018. Bolatete was indicted on December 7, 2017.
According to evidence presented at trial, Bolatete came to the attention of law enforcement when a confidential source reported to the Jacksonville Sheriff’s Office (JSO) that Bolatete had a plan to conduct a mass shooting at a local mosque if he learned, as he expected to, that his remaining kidney failed and he would have to undergo dialysis. In response, JSO launched an investigation that included introducing Bolatete to an undercover detective (UC), with whom Bolatete shared his plan to attack the mosque. The investigation revealed that Bolatete had a collection of firearms and was nearly always armed. Bolatete also suggested to the UC that he had visited the mosque in the past. He also shared which of his firearms he would use for the attack and repeatedly bragged about having shot someone with a silencer-equipped firearm. Bolatete advised the UC on the best ways to put a hit on an adversary.
When the UC told Bolatete that he had a source with access to silencers, Bolatete asked to buy one and insisted that it not be registered with the government (registration is required by federal law). Bolatete also sent a text message to the UC suggesting that he could use the silencer to take out the UC’s adversary.
Bolatete was arrested on December 1, 2017, after the UC sold him an unregistered silencer for $100. After his arrest, Bolatete admitted that he had possessed the unregistered silencer but claimed that he had purchased it for hunting. When FBI agents searched his home and car, they found a significant collection of firearms and ammunition, including the specific firearms that Bolatete had told the UC that he would use to conduct the mass shooting at the mosque.
This case was investigated by the Jacksonville Sheriff’s Office, the FBI, the Florida Department of Law Enforcement, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It is being prosecuted by Assistant United States Attorneys Laura Cofer Taylor and Michael J. Coolican.
Federal Judge Hands Down Life Prison Sentences to Three United Blood Nation Gang MembersRead the Press Release
CHARLOTTE, N.C. - Three members of the United Bloods Nation gang (UBN or Bloods) were sentenced today on charges of conspiracy to participate in racketeering activity (RICO) and murder, stemming from the 2014 double-murder of Douglas and Deborah London and the 2013 murder of Kwamne Clyburn, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max O. Cogburn, Jr. presided over the sentencing hearings.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.
Judge Cogburn sentenced Randall Hankins, II, 24, of Charlotte, to three consecutive life sentences, following his 2017 jury conviction of RICO conspiracy; murder in aid of racketeering; and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence, for his role in the murder of Douglas and Deborah London.
Nana Yaw Adoma, 23, of Charlotte, was sentenced to two consecutive life sentences and 25 years in prison after the jury convicted him of RICO conspiracy; murder in aid of racketeering and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death for Clyburn’s murder; assault with a dangerous weapon in aid of racketeering; and use or carry of a firearm in relation to a crime of violence and possession of firearm in furtherance of a crime of violence for his role in the armed robbery of the Londons’ business.
Judge Cogburn ordered Akheem McDonald, 24, of Charlotte, to serve two consecutive life sentences following his jury conviction of RICO conspiracy, murder in aid of racketeering, and use or carry of a firearm during and in relation to a crime of violence and possession of a firearm in furtherance of a crime of violence resulting in death for Clyburn’s murder.
Judge Cogburn previously sentenced nine others for their involvement in the murders: Jamell Lamon Cureton, Malcolm Jarrel Hartley and Rahkeem Lee McDonald were each sentenced to life in prison; David Lee Fudge was sentenced to 26 years; Ibn Rashaan Kornegay was sentenced to 23 years; Nehemijel Maurice Houston was sentenced to 20 years; and Brianna Johnson, Daquan Lamar Everrett, and Centrilla Shardon Leach were each sentenced to 13 years in prison.
According to court documents, on May 25, 2014, Adoma, Cureton, and Fudge robbed The Mattress Warehouse, a store owned by Douglas and Deborah London. The three were later charged in connection with that robbery. According to court records, Cureton and other Bloods gang members discussed that Douglas London was the only eye witness that could identify Cureton, and that he needed to be eliminated. Over the next months, the gang members exchanged correspondence and conducted numerous in-person and telephonic gang meetings, during which they discussed and planned the murder of Douglas London.
On or about October 23, 2014, Johnson drove Hartley to South Carolina, where Hartley shot and killed the couple at their home. The pair then returned to Charlotte, first stopping at Rahkeem McDonald’s house to dispose of the gun. Afterwards, Hartley and Johnson returned to Hartley’s apartment, where they met with other gang members to celebrate the couple’s murders. As a result of carrying out the gang leadership orders, Hartley was “ranked up” or “promoted” to a 2-Star General. Shortly after the murders, Cureton ordered the gang to remain silent about the Londons’ murders. Kornegay also conducted a telephone gang meeting with other UBN gang members, during which he directed them to lay low to avoid contact with law enforcement.
Over the course of the investigation into the mattress store robbery and the Londons’ murders, law enforcement determined that Cureton, Adoma, and Ahkeem McDonald were responsible for the August 2013 murder of Kwamne Clyburn, who was killed for “false claiming,” (falsely claiming to be a Bloods member), and because Clyburn failed a “DNA check,” meaning the gang members could not verify Clyburn’s claim to be a Blood.
In making today’s announcement, U.S. Attorney Murray thanked the FBI for leading the investigation, and commended CMPD and the York County Sheriff’s Office for their invaluable assistance throughout the investigation and prosecution of the case. Assistant U.S. Attorney Don Gast handled the prosecution.
Federal Inmate and Correctional Officer Sentenced for BriberyRead the Press Release
OKLAHOMA CITY – JOSE TOMAS CASTILLO-GARZA, 40, and CHARLES DANIEL LYNN, 34, of El Reno, Oklahoma, have been sentenced to federal prison for a bribery scheme, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
According to an indictment filed on August 16, 2017, Castillo-Garza was an inmate at Great Plains Correctional Facility in Hinton, Oklahoma, during the latter half of 2016, when Lynn served as a correctional officer. Operated by GEO Group, Great Plains is a low-security institution that contracts with the Bureau of Prisons to house approximately 1,800 federal inmates. Federal regulations prohibit certain contraband items in correctional institutions, including cell phones and electronic music players.
The indictment charged Castillo-Garza with conspiracy to commit honest-services wire fraud and offering a bribe. Lynn was charged with conspiracy and accepting a bribe. The indictment also charged ARMANDO TABARES, 30, of Mission, Texas, with conspiracy and bribery.
According to the indictment, Lynn agreed to receive contraband items from Tabares, to smuggle these items into Great Plains, and to deliver them to Castillo-Garza, who is Tabares’s brother-in-law. The contraband items included cell phones, electronic music players, and other items. The indictment also alleged Lynn escorted Castillo-Garza to various parts of Great Plains to distribute the contraband to other inmates. In exchange for Lynn’s services, Tabares and others were alleged to have paid Lynn through interstate wire transfers via Walmart Money Gram. The alleged conspiracy deprived the government of Lynn’s honest services as a prison employee.
Both Castillo-Garza and Lynn pleaded guilty to conspiracy in November 2017. Lynn also pleaded guilty to accepting a bribe.
On April 24, 2018, United States District Judge David L. Russell sentenced Castillo-Garza to two years in prison, to be served consecutively to the 50-month sentence he is currently serving. Today Judge Russell sentenced Lynn to 15 months in prison, followed by two years of supervised release.
The charges against Tabares have been transferred to the Southern District of Texas for final disposition.
This case is the result of an investigation by the FBI and the Department of Justice’s Office of Inspector General. Assistant U.S. Attorney K. McKenzie Anderson prosecuted the case.
Reference is made to court records for further information.
Ellington Psychiatrist and Mental Health Clinic Pay over $800,000 to Settle False Claims Act AllegationsRead the Press Release
United States Attorney John H. Durham and Connecticut Attorney General George Jepsen today announced that DR. ERUM SHAHAB and WAIRE, LLC, doing business as ELLINGTON BEHAVIORAL HEALTH (“EBH”), have entered into a civil settlement agreement with the federal and state governments in which they will pay $805,071 to resolve allegations that they violated the federal and state False Claims Acts.
SHAHAB, a psychiatrist, is the owner of EBH, a psychiatric medical practice located in Ellington, Connecticut. As part of SHAHAB and EBH’s treatment of patients with substance use disorders, SHAHAB and EBH regularly conducted urine drug screening tests on urine samples collected from patients treated at the practice. Urine drug screening tests use a single sample of a patient’s urine to test for multiple classes of drugs. Although the test screens a patient’s urine for multiple classes of drugs, Medicare considers it a single test that should be billed only once per patient encounter.
The government alleges that SHAHAB and EBH submitted claims to Medicare for multiple units of urine drug screening tests when they knew or should have known that only one unit of service could be billed per patient encounter. By coding their claims using multiple units instead of a single unit, SHAHAB and EBH received hundreds of thousands of dollars from the Medicare program that they were not entitled to receive.
In addition, the government alleges that SHAHAB and EBH submitted claims to the Medicaid program for urine drug screening tests when the urine samples were either never actually tested at all or were tested weeks or months after the samples were collected from the Medicaid beneficiaries.
To resolve the governments’ allegations under the federal and state False Claims Acts, SHAHAB and EBH have agreed to pay $805,071, which covers claims submitted to the Medicare program from January 1, 2011 to September 30, 2013, and claims submitted to the Medicaid program from January 1, 2014 to June 30, 2014.
A complaint against SHAHAB and EBH was filed in the U.S. District Court in Connecticut under the qui tam, or whistleblower, provisions of the both the federal and state False Claims Acts. The relator (whistleblower), Dr. David Simon, a former employee at EBH, will receive a share of the proceeds of the settlement in the amount of $99,113.
The whistleblower provisions of both the federal and state False Claims Acts provide that the whistleblower is entitled to receive a percentage of the proceeds of any judgment or settlement recovered by the government.
“Physicians and their medical practices must carefully code their claims, honestly bill for services, and ensure that taxpayers’ health care dollars are properly spent,” said U.S. Attorney Durham. “The U.S. Attorney’s Office and our federal and state investigative partners will hold to account all health care providers who submit false claims to federal health care programs.”
This matter was investigated by the U.S. Department of Health and Human Services, Office of Inspector General; the Federal Bureau of Investigation; the U.S. Postal Service, Office of Inspector General, and the Defense Criminal Investigative Service. The case is being prosecuted by Assistant U.S. Attorney Richard M. Molot, and by Assistant Attorney General Gregory O’Connell of the Connecticut Office of the Attorney General.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS or the Health Care Fraud Task Force at (203) 777-6311.
District Man Pleads Guilty to Charges in Carjacking of Nun in Northeast WashingtonRead the Press Release
WASHINGTON – Brandon Brown, 20, of Washington, D.C, pled guilty today to charges stemming from the recent carjacking of a nun who he accosted at gunpoint in a parking lot in Northeast Washington, U.S. Attorney Jessie K. Liu announced.
Brown pled guilty in the Superior Court of the District of Columbia to charges of carjacking and carrying a pistol without a license. The plea, which is subject to the Court’s approval, calls for an agreed-upon sentence in the range of seven and 10 years in prison, to be followed by three years of supervised release. The Honorable Marisa Demeo scheduled sentencing for July 13, 2018.
According to a proffer of facts submitted at the plea hearing, on April 9, 2018, at approximately 6:45 p.m., the victim, who was wearing full clerical garb, was walking to a parking lot in the 1300 block of Quincy Street NE to retrieve something from a minivan. As she neared the parking lot, she observed Brown, who had a bandana covering his face.
The victim continued into the parking lot and opened the passenger side door of a white Dodge caravan belonging to the convent. She turned on the minivan and retrieved a compact disc from the stereo. She then began to walk away from the vehicle as Brown approached her. When he was within a few feet of her, Brown demanded the car keys. The victim did not say anything, but continued to hold onto the keys. At this point, Brown brandished a firearm and pressed it to her left temple and once again demanded the keys. The victim held out the key and Brown took it from her. She then told him: “May God bless you.”
Brown got into the Caravan and drove off. The victim walked into a nearby building, told others what happened, and one individual called 911. Officers with the Metropolitan Police Department (MPD) quickly spotted the Caravan at 21st Street and Maryland Avenue NE. They attempted to stop Brown at 26th Street, but he got out of the minivan and fled.
He was eventually apprehended, and officers recovered a loaded, small gray semi-automatic handgun in the front right pocket of his sweatpants. They also recovered a red bandana. Brown was arrested and has been in custody ever since.
In announcing the plea, U.S. Attorney Liu commended the work of those who investigated the case from the Metropolitan Police Department. She also acknowledged the efforts of those who worked on the matter from the U.S. Attorney’s Office, including Assistant U.S. Attorney Jennifer Kerkhoff and Victim/Witness Advocate James Brennan. Finally, she expressed appreciation for the work of Assistant U.S. Attorney Ellen D’Angelo, who investigated and prosecuted the case.
Detroit Man Sentenced for Federal Drug OffenseRead the Press Release
HUNTINGTON, W.Va. – A Detroit man caught with oxycodone he was going to sell in Huntington in September 2017 was sentenced to 57 months in federal prison today, announced United States Attorney Mike Stuart. Curtis Holcomb, 39, previously pleaded guilty to possession with the intent to distribute oxycodone. Stuart commended the investigative efforts of the Drug Enforcement Administration and the West Virginia State Police Violent Crime and Drug Task Force.
“We will not tolerate those involved in the illicit sale of prescription drugs,” said United States Attorney Mike Stuart. “As I often say, addicts aren’t our enemy in the fight against the opiate epidemic, but dealers and traffickers are, and we will lock them up.”
On September 15, 2017, agents with the DEA and the West Virginia State Police Violent Crime and Drug Task Force used a confidential informant to arrange a purchase of 500 oxycodone pills from Holcomb. On his way to meet the informant, a trooper with the West Virginia State Police conducted a traffic stop on Holcomb’s vehicle on Artisan Avenue in Huntington. Troopers searched Holcomb and recovered 454 oxycodone pills that Holcomb had concealed in his sock. Holcomb admitted that he intended to sell the pills.
Assistant United States Attorneys Joseph F. Adams handled the prosecution. The sentence was imposed by United States District Judge Robert C. Chambers.
This drug prosecution was part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Dallas Man Sentenced for Two Metro PCS Store RobberiesRead the Press Release
DALLAS, Texas — Sidney White, 21, of Dallas, Texas was sentenced Wednesday, May 2, 2018, by U.S. District Judge Ed Kinkeade to serve a total of 102 months in federal prison and ordered to pay restitution, following his guilty plea in December 2017 to two robberies of a Metro PCS store in Dallas, announced U.S. Attorney Erin Nealy Cox of the Northern District of Texas.
White pleaded guilty to one count of interference with commerce by robbery and one count of using, carrying, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence. White has been in custody since his arrest in June 2017 for a string of robberies including the ones below and others that are being handled by the Dallas County District Attorney’s Office.
According to plea documents filed in the case, on August 10, 2016, White went to a Metro PCS store located at 3106 East Illinois Avenue, Dallas, Texas and purchased a cell phone. In connection with the purchase of the cell phone, White filled out an information sheet and listed his name and address. Two hours later, White returned to the store wearing the same clothing and told an employee that something was wrong with his phone. White then pulled out a pistol, racked the slide, and demanded money. Two employees emptied the cash registers and gave White approximately $1,600.00.
On August 19, 2016, White returned to the same Metro PCS store that he had robbed on August 10th and again, pointed a gun at the employees and demanded that they give him money. One employee gave White $112.00 from her cash register and another employee gave White $64.00 from his cash register.
The Federal Bureau of Investigation investigated the case and Assistant U.S. Attorney Shane Read is in charge of the prosecution.
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Courthouse Worker Charged with Illegally Selling Firearms to a FelonRead the Press Release
SPRINGFIELD, Mo. – A Jefferson City, Mo., man who supervises workers at the federal courthouse in Jefferson City has been charged in federal court with illegally selling 11 firearms to a convicted felon.
Victor Nahum Vargas, 40, of Jefferson City, was charged in a complaint filed in the U.S. District Court in Springfield, Mo., on Saturday, May 12, 2108, with selling firearms to a felon. Vargas, who is employed as the custodial supervisor at the Christopher S. Bond Courthouse in Jefferson City, remains in federal custody pending a detention hearing.
According to an affidavit filed in support of the federal criminal complaint, a confidential source who is a convicted felon contacted Vargas on April 24, 2018, by phone. During several recorded communications between the confidential source and Vargas that occurred between April 24, 2018, and April 25, 2018, Vargas allegedly agreed to sell the confidential source 10 firearms for $7,500. According to the affidavit, Vargas knew that the confidential source is a convicted felon who is therefore prohibited by law from purchasing or possessing any firearms or ammunition.
On April 30, 2018, the confidential source contacted Vargas. During the recorded conversation, the affidavit says, Vargas agreed to sell the confidential source an additional rifle for $800. Vargas allegedly agreed to sell the confidential source 11 firearms for $8,100.
Law enforcement officers conducted surveillance on a firearms dealer in Jefferson City on May 9, 2018. According to the affidavit, they observed Vargas carry two boxes of firearms from the store, put them in his car and take them to his residence.
Vargas met with the confidential source on Friday, May 11, 2018, the affidavit says. Vargas allegedly sold 11 firearms to the confidential source for $8,100. Immediately after the transaction, Vargas was placed under arrest. The 11 firearms purchased by the confidential source were turned over to the officers, who also found an additional handgun and ammunition when they searched Vargas’s vehicle.
The charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Lawrence E. Miller. It was investigated by the Chicago, Ill., Police Department, the Jefferson City, Mo., Police Department Community Action Team and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Coolidge Man Sentenced to 5 Years for Possession of a Firearm in Furtherance of Drug TraffickingRead the Press Release
PHOENIX – On May 14, 2017, Bernard Joseph Lee Marrietta, 25, of Coolidge, Ariz., a member of the Gila River Indian Community, was sentenced by U.S. District Judge John J. Tuchi to 60 months in prison. Marrietta had previously pleaded guilty to possession of a firearm in furtherance of a drug trafficking crime. At the time of the offense, Marrietta possessed a DPMS, model A-15, 5.56/.223 rifle, and methamphetamine.
The investigation in this case was conducted by the Gila River Police Department. The prosecution was handled by Raynette Logan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-17-1675-PHX-JJT
RELEASE NUMBER: 2018-062_Marrietta
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Clayton Real Estate Developer SentencedRead the Press Release
St. Louis, MO – Michael Litz, 63, of Ladue, was sentenced today to 36 months in federal prison after pleading guilty to his role in a bank fraud scheme involving unlawful insider loans at Excel Bank. The sentence was handed down by United States District Judge Audrey G. Fleissig who also ordered Litz to pay restitution in the amount of $5,048,003.67.
Litz was charged in April, 2016 with Shaun Hayes on bank fraud and related charges involving a series of insider loans and straw party loans at Excel Bank. Hayes pled guilty in January and is scheduled to be sentenced on May 23. Excel Bank failed in October, 2102 and Simmons Bank succeeded it. In imposing the sentence, Judge Fleissig noted the seriousness of the offense and the fact that Hayes and Litz’s actions likely jeopardized the soundness of Excel Bank.
Hayes was the controlling shareholder in Excel Bank which had main offices in Sedalia, Missouri and a loan production office in Clayton. Litz was a principal in Bellington Realty and Eighteen Investments which managed over 1,000 residential and commercial rental properties in the area and bought and sold hundreds of residential properties each year. Litz’s business offices were also in Clayton. In 2009, Eighteen Investments was delinquent on over $100,000,000.00 in loans at banks throughout the area. Litz and Hayes were also partners in a number of real estate development projects. One of those was McKnight Man I which involved the development of the property at the intersection of Manchester and McKnight Roads in Rock Hill. Litz and Hayes were guarantors on a McKnight Man loan at Centrue Bank in the amount of $900,000.00. That loan was delinquent in July, 2009. At the same time Eighteen Investments was delinquent on $3,600,000.00 in loans at Centrue Bank.
At his guilty plea earlier this year, Litz admitted that he recruited a close friend to sign on to a $3,300,000.00 loan at Excel Bank to assist Litz in his business. The friend was assured that he would not be held liable on the note and that the loan would be taken care of. According to court papers, that individual was simply acting as a friend to help Litz. The loan proceeds were used to pay off Litz’s and Hayes’s McKnight Man debt at Centrue Bank as well as the Eighteen Investments debt at that bank. Since Hayes was a principal at Excel Bank, the use of the loan funds to pay off the Hayes-Litz liability at Centrue Bank constituted unlawful self-dealing. Litz admitted that he participated in that transaction and directly benefitted from it.
According to court papers, Litz and Hayes set up other straw party loans at Excel Bank to cover millions of dollars in other delinquent loans of Eighteen Investments. The restitution amount ordered by the court consisted largely of losses incurred by Excel Bank on the straw party loans with most of the restitution being owed to Federal Deposit Insurance Corporation.
"There are ways to remedy troubled businesses without committing fraud," said Special Agent in Charge Richard Quinn of the FBI St. Louis Division. "Instead, Michael Litz chose greed and indirectly victimized taxpayers who bailed out his bad business decisions. Now he will be held accountable for his criminal behavior."
“Michael Litz was sentenced to three years in federal prison and ordered to pay more than $5 million in restitution for criminally defrauding TARP recipient Excel Bank, a bank that later failed and taxpayers lost $4 million in TARP funds,” said Special Inspector General Christy Goldsmith Romero of SIGTARP. “The fraud involved concealing the true purpose of loans from the bank’s board of directors and bank regulators. The judge said at the sentencing that the fraud likely jeopardized the soundness of a bank, one that taxpayers bailed out in TARP. I thank the Office of the U.S. Attorney for the Eastern District of Missouri for bringing justice in this case.”
Timothy Murphy, former Executive Vice President at Excel Bank, pled guilty earlier this year to defrauding Excel Bank and received a sentence of probation. Murphy cooperated with authorities in the investigation.
This case has been investigated by the Federal Bureau of Investigation, the Federal Finance Agency Office of Inspector General, the Federal Deposit Insurance Corporation Office of Inspector General and the Office of the Special Inspector General for the Troubled Asset Relief Program. Criminal Chief James E. Crowe, Jr. and Assistant United States Attorney Gilbert Sison are handling the case for the U.S. Attorney’s Office.
Castle Shannon Man Pleads Guilty to Distributing and Possessing Child PornographyRead the Press Release
PITTSBURGH, PA - A resident of Pittsburgh, PA, pleaded guilty in federal court to charges of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney Scott W. Brady announced today.
Adam D. Cadle, 36, of Pittsburgh, Pennsylvania, pleaded guilty to two counts before United States District Judge Nora Barry Fischer.
In connection with the guilty plea, the court was advised that Cadle had been using a group chat service, known as "Chatstep," to distribute and receive images and videos depicting the sexual exploitation of minors, some of whom were under the age of 12 years. On November 1, 2017, Cadle’s residence was searched by members of the Pittsburgh Crimes Against Children Task Force, during which numerous images of child pornography were identified on his laptop computer and a SanDisk thumb drive. Forensic analysis undertaken after the search revealed that Cadle was chatting with minors and sharing sexually exploitive material. It was established that on November 17, 2015, Cadle distributed 10 images of child pornography during one such chat session.
Judge Fischer scheduled sentencing for October 25, 2018. The law provides for a total sentence of 30 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant. Cadle remains on bond pending sentencing.
Assistant United States Attorney Carolyn J. Bloch is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation, the Allegheny County District Attorney’s Office, and the Pennsylvania Office of the Attorney General conducted the investigation that led to the prosecution of Cadle.
Canton Man Pleads Guilty to Illegally Possessing a Firearm under Project EJECTRead the Press Release
Jackson, Miss. – Toroski Wolfe, 32, of Canton, pled guilty Thursday before United States District Judge Daniel P. Jordan III, to being a felon in possession of a firearm, announced U.S. Attorney Mike Hurst and Special Agent in Charge Christopher Freeze of the Federal Bureau of Investigation (FBI).
In 2017, Wolfe, a convicted felon, bought a 38-Special revolver from a friend for $100. On December 11, 2017, Wolfe got into an altercation with another man and used the revolver to fire two warning shots into the ground. Jackson Police Department responded, and Wolfe admitted that he possessed and shot the gun.
Wolfe will be sentenced in Jackson by Judge Jordan on August 21, 2018, and faces a maximum penalty of 10 years in prison, followed by up to 3 years of supervised release, and a $250,000 fine.
This case is part of Project EJECT, an initiative by the U.S. Attorney’s Office for the Southern District of Mississippi under the U.S. Department of Justice’s Project Safe Neighborhoods (PSN). EJECT is a holistic, multi-disciplinary approach to fighting and reducing violent crime in Jackson through prosecution, prevention, re-entry and awareness. EJECT stands for "Empower Jackson Expel Crime Together." PSN is 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.
U.S. Attorney Hurst commended the work of the Jackson Police Department and their cooperation with FBI agents and Project EJECT task force members in the investigation of this case.
Canadian man arrested at park in Rocky River sentenced to more than 15 years in prison for sexual exploitation of a childRead the Press Release
A Canadian man arrested last summer at a park in Rocky River was sentenced to more than 15 years in prison for production of child pornography.
Joseph B. Haggerty, 50, was sentenced to 182 months in prison. He previously pleaded guilty to sexual exploitation of a child.
Homeland Security Investigations (HSI) agents in Texas received a tip last August that Haggerty had been soliciting nude images from a 13-year-old. Haggerty flew Cleveland from Toronto. HSI agents in Cleveland followed him upon his arrival in Ohio to Linden Park in Rocky River, where he met another minor female, according to court documents.
Haggerty had a reservation at the Days Inn on Lake Avenue in Lakewood. He was carrying a bag with clothing, 12 condoms, a stuffed animal and a package of baby pacifiers, according to court documents.
The minor he met in Rocky River told agents she met Haggerty on Kik in December 2016 and they subsequently communicated via Skype. She said the calls would last hours and Haggerty would direct her to strip naked and engage in sexually explicit conduct, according to court documents.
The girl told her relatives she was going on a camping trip for the weekend but actually planned to go the Lakewood hotel with Haggerty, according to court documents.
HSI agents contacted the Royal Canadian Mounted Police’s Internet Child Exploitation Unit, which executed search warrants at Haggerty’s home. They found nude images of the Ohio minor, contact information for the child in Texas, as well as evidence of other potential victims.
“This defendant preyed on young girls, emotionally and verbally abusing them and coercing them into sending nude images of themselves,” U.S. Attorney Justin Herdman said. “This case is a stark reminder to parents and guardians that they need to know who their children are communicating with online.”
“Through our partnerships with state, local, federal and international law enforcement agencies, HSI will continue to vigorously investigate child exploitation cases like this one to ensure that special agents continue to serve as a powerful barrier between predators and children," said Steve Francis, Special Agent in Charge of HSI’s Detroit Office, which includes Ohio.
This case was investigated by HSI’s Cleveland and Austin offices, with assistance from the Rocky River Police Department and the Royal Canadian Mounted Police. It is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan.
Canadian Man Pleads Guilty to Conspiracy and to Making A False Claim Against the United StatesRead the Press Release
A Canadian man pleaded guilty today in Rochester, New York to conspiring to defraud the United States and making a false claim against the United States, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division and U.S. Attorney James P. Kennedy Jr. for the Western District of New York.
According to documents filed with the court and evidence introduced at a related trial, Daveanan Sookdeo, 46, formerly of Ontario, Canada, along with other Canadian citizens, conspired to defraud the United States by filing fraudulent claims for income tax refunds with the Internal Revenue Service (IRS). Sookdeo promoted a scheme that involved the falsifying of IRS forms to claim that almost $10 million in income had been withheld by various Canadian financial institutions on the conspirators’ behalf. Based on those bogus withholdings, the conspirators sought refunds from the IRS.
Sookdeo profited from the scheme by charging his coconspirators an upfront fee for the false documents used in the scheme, as well as a percentage of any tax refunds obtained through the scheme. Sookdeo travelled to the United States to open bank accounts and deposited the refund checks and his coconspirators then wire transferred portions of the fraudulent proceeds to Canada.
Sookdeo is the fifth Canadian citizen to be convicted for his role in this scheme. In January 2016, Kevin Cyster of Burlington, Ontario, was sentenced to 135 months in prison after a jury convicted him of conspiring to defraud the United States and commit theft of government funds, making a false claim against the United States and transferring stolen money in foreign commerce. Renee Jarvis, Timothy Johnston, and Jose Compuesto, also of Canada, pleaded guilty to conspiring to defraud the United States and commit theft of government funds. U.S. District Judge Frank P. Geraci scheduled the sentencing for August 27, 2018.
Principal Deputy Assistant Attorney General Zuckerman and U.S. Attorney Kennedy thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Melissa S. Siskind and Thomas F. Koelbl and Assistant U.S. Attorney John Field of the Western District of New York, who prosecuted this case.
More information about the Tax Division’s enforcement efforts is available on the Division’s website.
Bureau of Prisons Lieutenant Convicted of Sexually Abusing Female Inmates at Metropolitan Detention Center in BrooklynRead the Press Release
Earlier today, a federal jury in Brooklyn returned a guilty verdict against Eugenio Perez, a federal correctional officer employed by the United States Bureau of Prisons, on charges of deprivation of civil rights, aggravated sexual abuse, sexual abuse, sexual abuse of a ward, attempted sexual abuse of a ward and abusive sexual contact. The 23-count indictment covered sexual abuse by Perez of five women who were inmates at the Metropolitan Detention Center (MDC) where the defendant was a lieutenant. The verdict followed a two-week trial before United States District Judge Kiyo A. Matsumoto. When sentenced, Perez faces a maximum sentence of up to life in prison.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, Ronald G. Gardella, Special Agent-in-Charge, United States Department of Justice, Office of the Inspector General, New York Field Office (OIG), and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the verdict.
“Perez was a calculating predator who brazenly abused the authority of his position and betrayed his oath as a correctional officer when he sexually abused women under his control and entrusted to his care,” stated United States Attorney Donoghue. “Today’s verdict sends a strong message that this Office, together with our law enforcement partners in the Department of Justice, will aggressively investigate corrupt officers like Perez who commit sex crimes in correctional institutions, using fear and intimidation to try to silence their victims. We hope that today’s verdict brings some measure of closure and justice to the victims of Perez’s crimes.”
“Today’s verdict is a testament to the courage of the victims who came forward to ensure that justice was served,” stated OIG Special Agent-in-Charge Gardella. “It sends a powerful message that no correctional officer is above the law. The OIG takes allegations of abuse and civil rights violations seriously and we will continue to vigorously investigate those who, like Perez, abuse their power.”
“Perez violated the civil rights of several women who reasonably believed he could adversely exercise disciplinary authority over them should they not obey his demands,” stated FBI Assistant Director-in-Charge Sweeney. “Sexual abuse—in any form or fashion—is an inexcusable crime, especially when it involves such disgraceful behavior committed by a federal employee.”
The evidence at trial established that over a three-year period between January 2013 and September 2016, Perez used his position as a lieutenant at the MDC to engage in sexual acts and contact with five female inmates under his supervisory and disciplinary authority. The victims, identified in the indictment as “Jane Doe #1” through “Jane Doe #5,” testified that Perez lured them into isolated situations by arranging for them to clean the lieutenants’ office area at night. Their testimony and other evidence at trial proved that Perez used physical force and intimidation to compel the victims to engage in various sexual acts with him, including oral sex, and used his authority over them to ensure that they did not report the abuse.
The government’s case is being handled by the Office’s Public Integrity Section. Assistant United States Attorneys Nadia I. Shihata and Taryn A. Merkl are in charge of the prosecution.
The Defendant:
EUGENIO PEREZ
Age: 47
Residence: Brooklyn, New YorkE.D.N.Y. Docket No. 17-CR-280 (KAM)
Buffalo Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Donald Egan, 51, of Buffalo, NY, pleaded guilty to possession of child pornography before U.S. District Judge Richard J. Arcara. The charge carries a minimum penalty of 10 years in prison, a maximum of 20 years and a $250,000 fine.
Assistant U.S. Attorney Jonathan Cantil, who is handling the case, stated that on July 19, 2017, a United States Probation Officer seized a cellular telephone from the defendant during a routine supervision visit at his Memorial Drive residence in Buffalo. At the time, Egan was a sex offender under supervision and possession of a phone was a violation of the defendant’s release from prison.
The officer turned the phone over to the FBI’s Child Exploitation Task Force which led to the discovery of 32 images of child pornography. Some of the images included pre-pubescent minors.
The plea is the result of an investigation by the United States Probation Department, under the direction of Chief Probation Officer Anthony SanGiacomo, and the Federal Bureau of Investigation, Buffalo Division, under the direction of Special Agent-in-Charge Gary Loeffert.
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Sentencing is scheduled for August 22, 2018, at 12:30 PM before Judge Arcara.