Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Saturday 17 March 2018
Winner Man Sentenced for Attempted Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that a Winner, South Dakota, man convicted of Attempted Receipt of Child Pornography was sentenced on March 9, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Duane Hosek, age 62, was sentenced to 5 years of imprisonment, followed by 5 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Hosek was one of ten men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2016 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls or boys obtained through the Internet. The conviction stemmed from Hosek communicating with someone he believed to be a minor for the purpose of engaging in sexual acts, and requesting that the minor send pornographic images to Hosek.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Hosek was immediately remanded to the custody of the U.S. Marshals Service.
Syrian National Convicted for Conspiring to Kill American Soldiers in IraqRead the Press Release
Today, Ahmed Alahmedalabdaloklah, a Syrian national who had been living in Iraq, was convicted by a jury, following a six-week trial, of conspiring and supporting the 1920s Revolutionary Brigades, an insurgent group that planted road-side bombs to attack and kill American soldiers in Iraq. A jury convicted Alahmedalabdaloklah on Conspiracy to Use a Weapon of Mass Destruction, Conspiring to Maliciously Damage or Destroy United States Property by Means of an Explosive, Aiding and Abetting Other Persons to Possess a Destructive Device in Furtherance of a Crime of Violence, and Conspiracy to Possess a Destructive Device in Furtherance of a Crime of Violence. Sentencing is set for June 5, 2018 before District Judge Roslyn O. Silver.
Assistant Attorney General for National Security John C. Demers, Elizabeth A. Strange, First Assistant United States Attorney for the District of Arizona, and Michael Deleon, Special Agent in Charge, Federal Bureau of Investigation, Phoenix Field Office, made the announcement.
“Alahmedalabdaloklah conspired with a violent Iraqi insurgent group to kill American soldiers in Iraq,” said First Assistant Strange. “Today’s verdict underscores our commitment to use every available resource to bring justice to American soldiers who were killed or injured by such terrorist acts. I commend the FBI and the prosecution team for their tremendous efforts in securing this conviction.”
"The FBI's highest priority is preventing acts; both in the United States and abroad," said Phoenix FBI Special Agent in Charge Michael DeLeon. "We want to thank the Department of Justice and the Arizona U.S. Attorney's Office, the FBI's Joint Terrorism Task Force, agents, analysts, and both local and foreign partners for working together to bring Ahmed Alahmedalabdaloklah to justice. This is a prime example of the FBI's commitment to pursuing justice even in the most complex and difficult cases. The FBI also wants to voice our sympathy and condolences to the victims, their families and friends. The FBI will continue our mission of preventing terrorist acts and pursuing those who plan to do us harm. "
Between 2006 and 2011, United States soldiers were deployed to Iraq to support the fledgling Iraqi government and to provide security to the Iraqi people. Multiple insurgent groups, including the 1920 Revolution Brigades (“1920s”), opposed the Iraqi government and committed violent acts in an effort to destabilize Iraq and expel American forces from the country. American soldiers faced daily attacks from snipers, small team ambushes, and deadly improvised explosive devices (“IEDs”) planted along major military supply routes.
Alahmedalabdaloklah supported the 1920s by designing, making, and supplying parts for remote-controlled IED initiator switches for roadside bombs. In August 2006, during a search and seizure weapons clearing mission, American soldiers located an apartment in Baghdad that had been converted into an IED switch-making factory. Soldiers seized numerous items used to detonate IEDs, including receivers, transmitters, cell phones, key fobs, modified hands-free headsets, and ready-to-use IED switches. Over a thousand finger and palm prints belonging to Alahmedalabdaloklah were discovered on the items found there, including instructions for making IEDs.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by Trial Attorney Joseph Kaster from the National Security Division of the U.S. Department of Justice, and Assistant U.S. Attorneys David Pimsner, Melissa Karlen, and Bill Solomon, from the U.S. Attorney’s Office, District of Arizona.
St. Francis Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a St. Francis, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on March 8, 2018, by U.S. District Judge Roberto A. Lange.
Israel Left Hand Bull, age 34, was sentenced to 12 months and 1 day in prison, followed by 5 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Left Hand Bull was indicted on October 17, 2017. He pled guilty on December 29, 2017.
Left Hand Bull was convicted of Abusive Sexual Contact in January 2012. As a result of this conviction, he is required to register as a sex offender. In April 2017, Left Hand Bull was released from custody and began a term of supervised release. He initially registered and resided at a residence in St. Francis. In September 2017, it was discovered that he had been living at a different residence in West St. Francis for approximately a month and had not updated his registration.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Left Hand Bull was immediately turned over to the custody of the U.S. Marshals Service.
Sioux Falls Man Sentenced to 97 Months for Distribution and Receipt of Child PornographyRead the Press Release
United States Attorney Ron Parsons announced that U.S. District Judge Karen E. Schreier sentenced a Sioux Falls, South Dakota, man convicted of distribution and receipt of child pornography on March 15, 2018.
Eric VanEmmerik, age 46, was sentenced to 97 months custody, followed by 5 years of supervised release, ordered to pay $100 to the Federal Crime Victims Fund, and forfeit his computer.
VanEmmerik was indicted for distribution and receipt of child pornography by a federal grand jury on December 6, 2016. He pled guilty on December 11, 2017.
On September 11, 2016, a detective with the Minnehaha County Sheriff's Office discovered that VanEmmerik distributed child pornography on the internet. When members of the Internet Crimes Against Children Task Force searched his home, they found his computer with thousands of photos of child pornography. VanEmmerick immediately confessed that he had been viewing and downloading child pornography for years.
This case was investigated by the Minnehaha County Sheriff's Office and Homeland Security Investigations. The case was prosecuted by Assistant U.S. Attorney Jeff Clapper.
VanEmmerik was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Woman Sentenced for Felony Child Abuse and NeglectRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, woman convicted of Felony Child Abuse and Neglect was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Darcel Featherman, age 34, was sentenced on March 8, 2018, to 3 years of probation, ordered to pay a $100 special assessment to the Federal Crime Victims Fund, and $4,293 in restitution to the Social Security Administration.
Featherman was indicted for the charge by a federal grand jury on May 23, 2017. The charge related to Featherman giving temporary custody of her children to her mother and sister, knowing that they were unable to care for the children.
On November 11, 2016, law enforcement found the two young children starving, and they were transported to Rapid City Regional and hospitalized for starvation. The attending physician stated the children were extremely emaciated. The physician advised law enforcement that this was the worst case of child abuse he had ever seen in his experience as a physician, and if the children had not been found, they would have passed from chronic starvation.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the FBI. Assistant U.S. Attorneys Megan Poppen and Sarah Collins prosecuted the case.
Rapid City Man Sentenced for Money Laundering and Bank FraudRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Money Laundering and Bank Fraud was sentenced on March 9, 2018, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Steven Knigge, age 71, was sentenced to 24 months of imprisonment, followed by 3 years of supervised release, and was ordered to pay a $200 special assessment to the Federal Crime Victims Fund and $31,793.60 in restitution.
Knigge was charged on March 22, 2016. The charges related to Knigge, an auditor and former fraud investigator for the South Dakota Department of Revenue, participating in a scheme in which e-mails were sent to various banks across the United States containing false and fraudulent information. The writer claimed to be an account holder, and instructed bank employees to wire large amounts of money to a separate bank account in South Dakota belonging to Knigge. In each case, the account holder’s e-mail address had either been hacked or mimicked using an e-mail address that closely resembled the bank customer’s actual e-mail address. A total of five banks were targeted, two of which transferred the money to Knigge’s account. When the money arrived, Knigge took a large portion of the money and sent it overseas using MoneyGram and Western Union.
This case was investigated by Internal Revenue Service – Criminal Investigation and the FBI. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Rapid City Man Sentenced for Illegally Possessing a FirearmRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Possession of a Firearm by a Prohibited Person was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Nathanial Geiger, age 33, was sentenced on March 8, 2018, to 7 years of imprisonment, followed by 3 years of supervised release, and was ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Geiger was charged on March 21, 2017. The charge related to Geiger, a previously convicted felon, illegally being in possession of a Remington, model Sportsman 58, 12-gauge shotgun in Rapid City on February 22, 2017.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Rapid City Police Department. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Rapid City Man Sentenced for Escape from CustodyRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man convicted of Escape from Custody was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Daryl Plumman, age 25, was sentenced on March 7, 2018, to 4 months in custody and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Plumman was indicted for the charge by a federal grand jury on August 22, 2017. The charge related to escaping from the custody of the Bureau of Prisons at the Community Education Centers, previously known as Community Alternatives of the Black Hills, where he was in custody on August 17, 2017.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman prosecuted the case.
Plumman was immediately turned over to the custody of the U.S. Marshals Service.
Rapid City Man Charged with Illegally Possessing FirearmsRead the Press Release
United States Attorney Ron Parsons announced that a Rapid City, South Dakota, man was charged in federal district court with two counts of Possession of a Firearm by a Prohibited Person.
Joseph Marr, age 24, was charged on February 21, 2018. He appeared before U.S. Magistrate Judge Daneta Wollmann on March 7, 2018, and pleaded not guilty to the charges. The maximum penalty upon conviction is 15 years of imprisonment and/or a $250,000 fine, 3 years of supervised release, and a $100 assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
The charges relate to Marr illegally possessing two pistols between April and June 2017 at Rapid City. The charges are merely an accusation and Marr is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, and the Pennington County Sheriff’s Office. Assistant U.S. Attorney Ben Patterson is prosecuting the case.
Marr was detained pending trial. A trial date has not been set.
Pine Ridge Woman Sentenced for Felony Child Abuse and NeglectRead the Press Release
United States Attorney Ron Parsons announced that a Pine Ridge, South Dakota, woman convicted of Felony Child Abuse and Neglect was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Darshan Featherman, age 31, was sentenced on March 7, 2018, to 10 years in custody, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund
Featherman was indicted for the charge by a federal grand jury on December 6, 2016. The charge related to Featherman and others intentionally starving two young children, one of whom had been placed in Featherman’s custody.
On November 11, 2016, the two young children were transported to Rapid City Regional and hospitalized. The attending physician stated the children were extremely emaciated. The physician advised law enforcement that this was the worst case of child abuse he had ever seen in his experience as a physician, and if the children had not been found, they would have died from chronic starvation.
This case was investigated by the Oglala Sioux Tribe Department of Public Safety and the FBI. Assistant U.S. Attorneys Megan Poppen and Sarah Collins prosecuted the case.
Featherman was immediately turned over to the custody of the U.S. Marshals Service.
Lower Brule Woman Sentenced for Methamphetamine Charges and Assault on a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, woman charged with Conspiracy to Distribute and Possession with the Intent to Distribute Methamphetamine and Assaulting, Resisting, and Impeding a Federal Officer was sentenced on March 8, 2018, by U.S. District Judge Roberto A. Lange.
Samantha Dolezal, age 25, was sentenced to 54 months in custody, followed by 3 years of supervised release, and a fine of $1,000 on the Conspiracy to Distribute Methamphetamine felony, and 18 months custody on the Assaulting a Federal Officer felony, to run concurrent with the 54 month sentence. Dolezal was also ordered to pay a special assessment to the Federal Crime Victims fund in the amount of $200.
The methamphetamine conviction is a result of Dolezal receiving distributable quantitates of methamphetamine and distributing it in South Dakota beginning in January of 2015. It was reasonably foreseeable to Dolzeal that between 200-350 grams of methamphetamine was distributed during the course of the conspiracy. This methamphetamine was distributed by Dolzeal on the Crow Creek and Lower Brule Indian reservations.
Dolezal’s resisting and assaulting a federal officer conviction comes from an incident on August 21, 2016, when a BIA officer attempted to pull over a stolen vehicle that was being driven by Dolezal. She did not stop and a high speed chase ensued with speeds in excess of 100 mph. Dolezal stopped the vehicle where a foot pursuit began. Dolezal ran into a stranger's home and refused to answer the door, but the officer was able to open the door slightly by putting his arm through the door to deploy his OC spray. While the officer’s arm was in the door opening, Dolezal slammed the door on the officer’s arm causing pain. After another foot pursuit began, the officer caught up with Dolezal and was able to arrest her.
The investigation was conducted by the Federal Bureau of Investigation, and the Northern Plains Safe Trails Drug Enforcement Task Force. Assistant U.S. Attorneys SaraBeth Donovan and Meghan Dilges prosecuted the cases.
Dolezal was immediately turned over to the custody of the U.S. Marshals Service.
Lower Brule Man Sentenced for Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man convicted of Sexual Abuse was sentenced on March 7, 2018, by U.S. District Judge Roberto A. Lange.
James St. Cloud, age 37, was sentenced to 156 months in custody, followed by 8 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100. St Cloud was further sentenced to an additional 24 months in custody, consecutive to the 156-month sentence, for violating the terms of his supervised release. This results in a 15-year sentence for St. Cloud.
St. Cloud was indicted by a federal grand jury on December 14, 2016. He pled guilty on December 6, 2017.
The conviction stems from an incident on September 16, 2016, when the 16-year-old victim and her friend were walking along a road in Lower Brule. They were approached by a Jeep being driven by St. Cloud, who is related to the victim. St. Cloud, along with his girlfriend, offered the girls a ride and they accepted.
Once inside the Jeep, the girls were offered alcohol to drink. They began to drink and drive around Lower Brule. While in Lower Brule, they stopped at a house and picked up St. Cloud’s 19-month-old son. They drove to another house so that St. Cloud’s girlfriend could use the bathroom, and while she was inside, St. Cloud left with the victim, her friend, and his 19-month-old son in the Jeep.
St. Cloud drove down near the river. The victim’s friend was passed out in the back seat. The victim passed out in the driver’s seat and when she awoke, St. Cloud was having sex with her. She tried to kick and honk the horn, but she was too drunk to move. St. Cloud admitted to having sexual intercourse with the victim while she was incapable of consenting to the sexual intercourse.
St. Cloud was convicted in 1999 of Aggravated Sexual abuse in violation of 18 USC 2241(a). At the time he committed the instant offense, St. Cloud was on supervised release.
This case was investigated by the FBI. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
St. Cloud was immediately turned over to the custody of the U.S. Marshals Service.
Lower Brule Man Charged with Sexual Abuse and AssaultsRead the Press Release
United States Attorney Ron Parsons announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse, Assault of a Spouse by Strangulation, and Domestic Assault by an Habitual Offender.
Cody Crazy Bull, age 27, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 7, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $750,000 fine, up to life of supervised release, and up to $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between October 14, 2017, and October 17, 2017, Crazy Bull knowingly caused and attempted to cause his dating partner to engage in a sexual act, by the use of force. He is also alleged to have unlawfully assaulted the same victim by strangling and suffocating her.
Crazy Bull is alleged to have unlawfully committed the above domestic assaults upon his partner when he had a final conviction, on at least two separate occasions, for offenses that would have been, if subject to federal jurisdiction, an assault against a spouse and intimate partner.
The charges are merely accusations and Crazy Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Troy R. Morley is prosecuting the case.
Crazy Bull was remanded to the custody of the U.S. Marshals Service pending trial. A jury trial has been scheduled for May 1, 2018.
Kyle Man Sentenced for Assaulting a WomanRead the Press Release
United States Attorney Ron Parsons announced that a Kyle, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced by Chief Judge Jeffrey L. Viken, U.S. District Court.
Jeremy Lee Old Horse, age 32, was sentenced on March 6, 2018, to 27 months of imprisonment, followed by 3 years of supervised release, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Old Horse was charged on January 24, 2017. The conviction stems from Old Horse stabbing a woman in the arm during an argument at Wounded Knee in July 2016. The assault caused a laceration, which required several stiches,
This case was investigated by the Bureau of Indian Affairs Office of Justice Services and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Benjamin Patterson prosecuted the case.
Eagle Butte Man Charged with AssaultRead the Press Release
United States Attorney Ron Parsons announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Assault With a Dangerous Weapon, Assault Resulting in Serious Bodily Injury, and Assault Resulting in Substantial Bodily Injury to an Intimate Partner.
Benjamin Morrison, age 37, was indicted on March 13, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 15, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about February 25, 2018, Morrison did unlawfully assault an individual with a dangerous weapon, that is, shod feet with the intent to do bodily harm, and said assault did result in serious bodily injury to an intimate partner.
The charges are merely an accusation and Morrison is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Morrison was released on bond, subject to conditions, pending trial. A trial date has not been set.
Friday 16 March 2018
Woman Sentenced for $1.3 Million Investment FraudsRead the Press Release
ALEXANDRIA, Va. – An Alexandria woman was sentenced today to 30 months in prison for a fraud scheme that victimized members of a church congregation and other investors.
According to court documents, Grenetta Wells, 48, served as the Chief Operating Officer of Micro-Enterprise Management Group (MEMG), a Virginia company that alleged to help poor people in developing countries by providing small, short-term loans to start or expand existing businesses by working with a network of established micro-finance institutions. Wells worked with Terry Wayne Millender, the former senior pastor of Victorious Life Church in Alexandria and Chief Executive Officer of MEMG, and his wife Brenda Millender, who was a founding member of MEMG to solicit investors. Wells and the Millenders lured investors by emphasizing MEMG’s Christian mission and use of funds to help the poor, promising guaranteed rates of return, assuring investors that the loans’ principal was safe and backed by the assets of MEMG. Instead, the money was used to conduct risky trading on the foreign exchange currency market and day trading by Wells using a company she owned called Golden Strategies, Inc. Wells was also responsible for creating website and promotional material for MEMG, as well as helping victims fill out paperwork to set up self-directed individual retirement accounts (IRAs) so that they could use retirement savings to fund their MEMG investments. In addition to her prison sentence, Wells was ordered to pay $1.3 million in restitution to victims of the fraud scheme.
Wells pleaded guilty on Jan. 13, 2017, to conspiracy to commit wire fraud. Terry and Brenda Millender were convicted by a federal jury on Dec. 19, 2017, and are currently awaiting sentencing.
Tracy Doherty-McCormick, Acting U.S. Attorney for the Eastern District of Virginia, and Kimberly Lappin, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Robert B. Wemyss, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga. Assistant U.S. Attorneys Katherine L. Wong, Jamar K. Walker, and Kimberly R. Pedersen prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-239.
United States Reaches Settlement with Maryland Healthcare Providers to Settle False Claims Act Allegations Relating to in Office TestingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – The United States Attorney’s Office announced today that it has in recent weeks reached settlements with four health care providers to settle claims that they submitted false claims to the United States for services not rendered.
St. Agnes Healthcare, Inc., which owns and operates St Agnes hospital in Baltimore, has agreed to pay $69,906.90. Horizon Vascular Specialists, a medical practice with offices in Frederick, Germantown, Olney and Rockville, has agreed to pay $518,479.50. Riverside Medical Associates, a medical practice located in Riverdale, Maryland, has agreed to pay $176,511.17. Maryland Specialty Group, a medical practice in Glenn Dale, Maryland, has agreed to pay $87,393.89. Itsuro Uchino, M.D., a physician in Hagerstown, has agreed to pay $91,476.02.
The settlement agreements were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Maureen Dixon, Special Agent in Charge of the Office of Inspector General for the Department of Health and Human Services.
In their practices, each of these providers had occasion to administer tests to patients to assess the venous sufficiency in the lower extremities. As part of this process, they performed a venous Doppler duplex examination. The purpose of this examination was to determine if there were blood flow issues including deep vein thromboses in the patient’s legs. They billed Medicare under CPT 93970 for this work.
Billing records showed that each billed for an additional test using CPT 93965. CPT 93965 references an older, different technology, one that has generally been replaced by the CPT 93970 technology. Upon inquiry by the U.S. Attorney’s Office and the HHS Office of Inspector General, each agreed that the billing of CPT 93965 was incorrect.
The claims resolved by this settlement are allegations only, and there has been no determination of liability. Maryland Specialty Group, St Agnes Healthcare, Riverside Medical Associates, Dr. Uchino, and Horizon Vascular Specialists have denied the allegations.
Acting U.S. Attorney Stephen M. Schenning thanked Assistant United States Attorney Allen Loucks and Investigator Steven Capobianco who handled these cases.
U.S. Gold Refinery Pleads Guilty to Charge of Failure to Maintain Adequate Anti-Money Laundering ProgramRead the Press Release
U.S. Gold refinery Elemetal LLC, based in Dallas, Texas, doing business as “Elemetal” and “NTR Metals,” pled guilty today to a single-count information charging Elemetal with failure to maintain an adequate anti-money laundering program, in violation of the Bank Secrecy Act, as part of a plea agreement with the United States Attorney’s Office for the Southern District of Florida.
Randy A. Hummel, Executive Assistant United States Attorney, U.S. Attorney’s Office for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Carlos L. Mitchem, Regional Director, Drug Enforcement Administration (DEA-Peru), Southern Cone Region, Adolphus P. Wright, Special Agent in Charge, Drug Enforcement Administration (DEA-Miami), Miami Field Office, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Miami Field Office, made the announcement.
On March 12, 2018, Elemetal was charged in a sealed, single-count information for failure to maintain an adequate anti-money laundering program under the Bank Secrecy Act (“BSA”). The case is U.S. v. Elemetal LLC, Case No. 18-20173-CR-MORENO. On March 16, 2018, U.S. District Judge Federico A. Moreno unsealed the information and accepted Elemetal’s guilty plea.
According to the stipulated facts filed with the court, from August 2012 through November 2016, Elemetal purchased and refined billions of dollars of gold from countries around the world, including from Central America, South America, the Caribbean and Europe. The international gold trade was a common method for laundering illegally mined gold, narcotics and other criminal proceeds. Criminals frequently trade illegal gold through illicit shell companies using false or incomplete documents. The gold is often smuggled through third-party countries and then sold to refineries in the United States, in an effort to hide the true source of the gold from foreign and United States law enforcement.
Recognizing the high risk of gold-based money laundering, federal law requires precious metals dealers to establish anti-money laundering programs, under the BSA. Elemetal was subject to the BSA and aware of its obligations, but willfully failed to develop, implement, and maintain a reasonably designed anti-money laundering program as required. More specifically, according to the stipulated facts filed with the court, Elemetal:
- Accepted gold from persons and entities without requesting or obtaining adequate, or in some instances any, identification and information regarding those persons or the source of their gold, including from: third-parties in foreign countries directly providing gold to the defendant on consignment to the defendant’s approved customers; third-parties in foreign countries who the defendant knew to be supplying gold to the defendant’s approved domestic customers; and third-parties in foreign countries who appeared as the manufacturer or shipper of the gold on U.S. customs declarations;
- Accepted gold from foreign gold suppliers who represented themselves to be “gold collectors,” a vague business that involves nothing more specific than someone who buys gold from others without requesting or obtaining adequate, or in some instances any, information as to the source and origin of gold;
- Accepted gold from countries and customers where the defendant’s country-by-country and customer-by-customer sales volume records indicated that gold was likely being smuggled across borders in response to law-enforcement crackdowns and that customers were using rotating front companies, without requesting or obtaining adequate, or in some instances any, follow-up information as to the source and origin of gold;
- Accepted gold from specific customers and suppliers where open-source and publicly available information indicated that those specific customers and suppliers were supplying criminally derived gold, without requesting or obtaining adequate, or in some instances any, follow-up information as to the source and origin of gold;
- Failed to request or obtain adequate, or in some instances any, follow-up information as to the source and origin of gold where open-source and publicly available information indicated that the defendant or the defendant’s agents were purchasing criminally derived gold; and,
- Failed to request, obtain, preserve adequately, or in some instances any information regarding the content of communications between gold suppliers and the defendant’s agents occurring on encrypted, peer-to-peer chat services, such as WhatsApp or Skype.
Pursuant to the terms of the Plea & Forfeiture Agreement filed with the court, Elemetal has agreed to recommend that it forfeit $15,000,000 to the United States, develop and maintain an effective compliance and ethics program, and be subject to a 5-year term of probation, during which time it will be prohibited from purchasing precious metals from outside the United States and required to comply with all further investigations. U.S. District Judge Federico A. Moreno will determine Elemetal’s sentence at a later hearing.
Former NTR Metals Miami employees, Samer H. Barrage, Renato J. Rodriguez, and Juan P. Granda previously pled guilty to conspiracy to commit money laundering in related case, U.S. v. Barrage, et al., Case No. 17- 20215-CR-SCOLA. On January 19, 2018, U.S. District Judge Robert N. Scola sentenced Barrage and Granda to 80 and 72 months’ imprisonment respectively, and on January 31, 2018, Judge Scola sentenced Rodriguez to 90 months’ imprisonment.
These cases are the result of the ongoing efforts by the Organized Crime Drug Enforcement Task Force (“OCDETF”) Operation Arch Stanton, a partnership between federal, state and local law enforcement agencies. The OCDETF mission is to identify, investigate, and prosecute high level members of drug trafficking enterprises, bringing together the combined expertise and unique abilities of federal, state and local law enforcement.
Mr. Hummel commended the investigative efforts of ICE-HSI, FBI, DEA-Peru, DEA-Miami, and IRS-CI. Mr. Hummel also thanked the Department of Justice’s Money Laundering and Asset Recovery Section, the Department of the Treasury Financial Crimes Enforcement Network, and the U.S. Customs and Border Protection for their assistance in this matter. This case is being prosecuted by Assistant U.S. Attorney Francisco R. Maderal.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
- Accepted gold from persons and entities without requesting or obtaining adequate, or in some instances any, identification and information regarding those persons or the source of their gold, including from: third-parties in foreign countries directly providing gold to the defendant on consignment to the defendant’s approved customers; third-parties in foreign countries who the defendant knew to be supplying gold to the defendant’s approved domestic customers; and third-parties in foreign countries who appeared as the manufacturer or shipper of the gold on U.S. customs declarations;
U.S. Attorney’s Office Hosts Roundtable Discussion on Sexual Harassment in HousingRead the Press Release
BOSTON – The U.S. Attorney’s Office hosted a roundtable discussion today on sexual harassment in housing, which brought together local legal services organizations, fair housing organizations, and domestic violence advocates.
The Department of Justice, through the U.S. Attorney’s Offices and the Civil Rights Division, enforces the Fair Housing Act, which prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. Sexual harassment is a form of sex discrimination prohibited by the Act. Sexual harassment by landlords, property managers, maintenance workers, and others with power over housing often affects the most vulnerable populations – single parents, individuals who have financial difficulties, and people who have suffered sexual violence in their past.
“There are landlords and property managers who abuse their positions to extort sexual favors from, or even sexually assault, vulnerable tenants, and that is unacceptable,” said U.S. Attorney Lelling said. “This conduct is an egregious violation of a person’s right to fair housing, and my Office’s Civil Rights Unit is dedicated to aggressively investigating such allegations and vigorously enforcing the law.”
In October 2017, the Justice Department’s Civil Rights Division announced the Sexual Harassment Initiative, an effort to combat sexual harassment in housing. The Justice Department’s initiative seeks to identify barriers to reporting sexual harassment in housing, increase awareness of its enforcement efforts – both among survivors and those they may report to – and collaborate with federal, state, and local partners to increase reporting and help survivors quickly and easily connect with federal resources.
The U.S. Attorney’s Office is collaborating with the Justice Department’s Civil Rights Division to raise awareness of the options that are available to help individuals experiencing sexual harassment. Community organizations, such as legal services offices, fair housing organizations, domestic violence advocates, shelters, and transitional housing providers, can identify the misconduct and recommend that individuals report sexual harassment to the Justice Department.
The Justice Department brings cases each year involving allegations that defendants have exposed themselves sexually to current or prospective tenants, requested sexual favors in exchange for reduced rents or making necessary repairs, made unrelenting and unwanted sexual advances to tenants, and evicted tenants who resisted their sexual overtures.
In 2017, the Justice Department recovered more than $1 million in damages for harassment victims. Many instances of sexual harassment in housing continue to go unreported. The Justice Department’s investigations frequently uncover sexual harassment that has been ongoing for years or decades and identify numerous victims who never reported the conduct to federal authorities.
The Justice Department encourages anyone who has experienced sexual harassment in housing, or knows someone who has, to contact the U.S. Attorney’s Office’s Civil Rights Unit by calling (617) 275-8756 or emailing [email protected]; or the Justice Department’s Civil Rights Division by calling (844) 380-6178 or emailing [email protected].
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
Two indicted for illegally reentering the U.S.Read the Press Release
Two men were indicted for illegally reentering the United States.
Ignacio Alvarez-Perez, 25, a citizen of Guatemala, was found in Stark County after having been previously deported, according to the indictment.
Raul Fernando Dominguez, 27, a citizen of Mexico, was found in Salem, Ohio after having been previously deported, according to the indictment.
Assistant United States Attorney Kathryn G. Andrachik is prosecuting the cases following investigations by the Bureau of Immigration and Customs Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Two Romanian Nationals Sentenced for Racketeering Conspiracy and ATM SkimmingRead the Press Release
BOSTON – Two Romanian nationals were sentenced today in federal court in Boston in connection with an ATM skimming scheme operating throughout Massachusetts and other states including Connecticut, New York and South Carolina.
Denisa Bonculescu, 27, was sentenced by U.S. District Court Judge William G. Young to 21 months in prison and ordered to pay restitution of $43,082 and forfeiture of $10,773. In a separate hearing, Anamaria Margel, 24, was sentenced by Judge Young to 16 months in prison and ordered to pay restitution of $27,582 and forfeiture of $4,597. Bonculescu and Margel will face deportation proceedings upon completion of their sentences. In December 2017, Bonculescu and Margel pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, conspiracy to use counterfeit access devices and money laundering conspiracy.
In May 2017, Bonculescu and Margel were indicted in connection with the ATM skimming scheme along with 12 others.
The defendants, except for one, were members of the Hornea Crew, led by Constantin Denis Hornea and Ludemis Hornea, and engaged in ATM skimming – obtaining debit card numbers and PINs from unsuspecting bank customers, creating counterfeit cards, and making unauthorized withdrawals from the victims’ bank accounts.
Over a period of 18 months, the Crew installed skimming devices and made unauthorized withdrawals in seven states, including Massachusetts. In particular, members of the Crew installed skimming devices in the following locations: Amherst, Bellingham, Billerica, Braintree, Chicopee, Quincy, Southwick, Waltham, Weymouth, and Whately, Mass.; Enfield, Conn.; Columbia, Greenville, Greenwood, Mauldin, and Saluda, S.C.; Savannah, Ga.; and Yadkinville, N.C. The Crew made unauthorized withdrawals at ATMs in approximately 29 Massachusetts towns; seven Connecticut towns; six New York towns; Salem, N.H.; and Sumter, S.C.
Members of the Hornea Crew transferred money throughout the United States and to Romania and the People’s Republic of China. Some of those transfers were for the purchase of skimming devices and related components from abroad.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police, made the announcement today. Assistance with the investigation was also provided by the Internal Revenue Service’s Criminal Investigations in Boston; U.S. Secret Service; U.S. Postal Service; Massachusetts Department of Correction; U.S. Customs and Border Protection; the Amherst, Billerica, Braintree, Boston, Quincy, Southwick, Waltham, Whately, and Westwood Police Departments; Connecticut State Police; Greenwich Police Department; the New York City Police Department; Houston Police Department; South Carolina Law Enforcement Division; Richland County (South Carolina) Sheriff’s Department; Florence and Saluda (South Carolina) Police Departments; and the Solicitor’s Offices of Greenville and Saluda Counties. Assistant U.S. Attorney Timothy E. Moran of Lelling’s Organized Crime and Gang Unit is prosecuting the case.
Tribunal de Jurados Federal Condenan Mujer de El Paso en Caso de SecuestraciónRead the Press Release
El Abogado de los Estados Unidos John F. Bash junto con Emmerson Buie, Jr., Agente Especial en Cargo de la Oficina de Investigaciones Federales (FBI por sus siglas en inglés) anunciaron en El Paso que el tribunal de jurados federal condenaron Norma Juarez Taha (Taha), 36 años, de cargos federales en conexión con la secuestración de una mujer de El Paso de 20 años en febrero.
El tribunal de jurados federal condenaron Taha de un cargo de secuestración y un cargo de posesión de una arma de fuego durante crimen de violencia. Evidencia presentada durante la tribuna reveló que la Demandada, conocida a la víctima como Hermana Norma, fue a la casa de la víctima aproximadamente a las 3:30 de la mañana y la engañó fuera de la casa por medio de que su familia estaba en riesgo y las autoridades inmigratorias atentaban de deportarlos. Taha llevó la víctima a una residencia lejana en el este de El Paso pertenecida a la madre de la Taha. Llegando a la residencia la víctima vió que Taha estaba en posesión de una arma de fuego. Seguido, Taha situó la víctima en la camioneta de su madre y la inyectó con una mezcla de drogas. La madre de Taha cruzó la frontera y llevó la víctima a una residencia en Juarez. La madre de Taha la dejó en la residencia y nunca regresó. Dos personas llegaron a la residencia el 13 de febrero, 2017 a las 10:30 de la noche y transportaron la víctima a la Puerte de Entrada Paso del Norte. La víctima fue transportada a un hospital en El Paso, donde recibió asistencia médica.
Fue revelado durante de la investigación por los agentes de la FBI que Taha estaba de acuerdo de secuestrar la víctima porque su moda de vida era una vergüenza para la familia. Durante la busca de la camioneta y la residencia, los autoridades encontraron la arma de fuego y la medicina usada por Taha para inyectar la víctima durante la secuestración.
Taha puede recibir la pena de cadena perpetua por el cargo de secuestración y un mínimo de cinco años en prisión federal por el cargo de arma de fuego durante un crimen de violencia. Taha está bajo custodia federal. Su audiencia para recibir su condena está citada frente el Juez Frank Montalvo de El Paso el 22 de mayo, 2018.
El FBI investigaron éste caso. Patricia Acosta y Shane Wagman son las abogadas fiscales de parte del gobierno.
Three Dominican Nationals Charged with Drug TraffickingRead the Press Release
BOSTON – Three Dominican nationals were arrested and charged yesterday in federal court in Boston in connection with drug trafficking activities that resulted in seizures of approximately two kilograms of suspected fentanyl.
Wareng Jhonny Villar-Ortiz, 39, Saul Martinez Escarfuller, 31, and Julio Cesar Baez, 49, were charged with conspiring to distribute and possess with the intent to distribute controlled substances, and possession with intent to distribute and distribution of controlled substances.
According to court documents, a federal wiretap on phones used by Villar-Ortiz and Martinez Escarfuller revealed that Martinez Escarfuller was supplying drugs to Villar-Ortiz, who then distributed the drugs to various individuals.
During intercepted communications, agents learned that Villar-Ortiz was not satisfied with the quality of certain drugs provided to him by Martinez Escarfuller and wanted to return the drugs to him. On Feb. 14, 2018, Martinez Escarfuller went to Villar-Ortiz’s residence to retrieve the drugs. Agents followed Martinez Escarfuller after he left Villar-Ortiz’s residence, and, a short while later, agents observed Baez exit Martinez Escarfuller’s vehicle and enter into a second vehicle. During a subsequent frisk of Baez, a law enforcement officer observed inside Baez’s coat a large plastic bag, which contained an off-white substance that field-tested positive for the presence of fentanyl. Agents arrested both Baez and Martinez Escarfuller on state charges and seized five cell telephones and $6,000 from Martinez Escarfuller.
Court documents further indicate that on Feb. 15, 2018, agents executed a search of Villar-Ortiz’s residence and seized a kilogram of suspected heroin/fentanyl, a quantity of cocaine, $10,400 in U.S. currency, and other drug-related paraphernalia.
According to court documents, Villar-Ortiz and Baez entered the United States illegally.
The charge of conspiracy provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. The charge of possession with intent to distribute and distribution of controlled substances provides for a sentence of no greater than 20 years in prison, a minimum of three years and up to a lifetime of supervised release, and a fine of up to $1 million. Villar-Ortiz and Baez will be subject to deportation upon completion of their sentences. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; Suffolk County District Attorney Daniel F. Conley; and Boston Police Commissioner William B. Evans made the announcement today. The Ipswich, Arlington, Somerville, and Medford Police Departments assisted with the investigation. Assistant U.S. Attorneys James E. Arnold and David J. D’Addio of Lelling’s Narcotics and Money Laundering Unit are prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Syrian National Convicted for Conspiring to Kill American Soldiers in IraqRead the Press Release
PHOENIX – Today, Ahmed Alahmedalabdaloklah, a Syrian national who had been living in Iraq, was convicted by a jury, following a six-week trial, of conspiring and supporting the 1920s Revolutionary Brigades, an insurgent group that planted road-side bombs to attack and kill American soldiers in Iraq. A jury convicted Alahmedalabdaloklah on Conspiracy to Use a Weapon of Mass Destruction, Conspiring to Maliciously Damage or Destroy United States Property by Means of an Explosive, Aiding and Abetting Other Persons to Possess a Destructive Device in Furtherance of a Crime of Violence, and Conspiracy to Possess a Destructive Device in Furtherance of a Crime of Violence. Sentencing is set for June 5, 2018 before District Judge Roslyn O. Silver.
The verdict was announced by Elizabeth A. Strange, First Assistant United States Attorney for the District of Arizona and Michael Deleon, Special Agent in Charge, Federal Bureau of Investigation, Phoenix Field Office
“Alahmedalabdaloklah conspired with a violent Iraqi insurgent group to kill American soldiers in Iraq,” said First Assistant Strange. “Today’s verdict underscores our commitment to use every available resource to bring justice to American soldiers who were killed or injured by such terrorist acts. I commend the FBI and the prosecution team for their tremendous efforts in securing this conviction.”
"The FBI's highest priority is preventing acts; both in the United States and abroad," said Phoenix FBI Special Agent in Charge Michael DeLeon. "We want to thank the Department of Justice and the Arizona U.S. Attorney's Office, the FBI's Joint Terrorism Task Force, agents, analysts, and both local and foreign partners for working together to bring Ahmed Alahmedalabdaloklah to justice. This is a prime example of the FBI's commitment to pursuing justice even in the most complex and difficult cases. The FBI also wants to voice our sympathy and condolences to the victims, their families and friends. The FBI will continue our mission of preventing terrorist acts and pursuing those who plan to do us harm. "
Between 2006 and 2011, United States soldiers were deployed to Iraq to support the fledgling Iraqi government and to provide security to the Iraqi people. Multiple insurgent groups, including the 1920 Revolution Brigades (“1920s”), opposed the Iraqi government and committed violent acts in an effort to destabilize Iraq and expel American forces from the country. American soldiers faced daily attacks from snipers, small team ambushes, and deadly improvised explosive devices (“IEDs”) planted along major military supply routes.
Alahmedalabdaloklah supported the 1920s by designing, making, and supplying parts for remote-controlled IED initiator switches for roadside bombs. In August 2006, during a search and seizure weapons clearing mission, American soldiers located an apartment in Baghdad that had been converted into an IED switch-making factory. Soldiers seized numerous items used to detonate IEDs, including receivers, transmitters, cell phones, key fobs, modified hands-free headsets, and ready-to-use IED switches. Over a thousand finger and palm prints belonging to Alahmedalabdaloklah were discovered on the items found there, including instructions for making IEDs.
The investigation in this case was conducted by the Federal Bureau of Investigation. The prosecution was handled by David Pimsner, Melissa Karlen, and Bill Solomon, Assistant U.S. Attorneys from the U.S. Attorney’s Office, District of Arizona, and Joseph Kaster, Trial Attorney from the National Security Division of the U.S. Department of Justice.
CASE NUMBER: CR-12-01263-PHX-ROS
RELEASE NUMBER: 2018-027_ Alahmedalabdaloklah
# # #
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.
Superseding Indictment Returned Against Two Westbank Men for Violating the Controlled Substances ActRead the Press Release
DAVID TRAN, age 39, and DAVID TRAN, age 31, (same name but no relation), both residents of Bridge City, Louisiana, were charged in a four-count superseding indictment by a Federal Grand Jury for 1) conspiracy to manufacture, distribute, and possession with the intent to distribute 1,000 or more marijuana plants, 400 grams or more of fentanyl, 500 grams or more of methamphetamine, and 100 grams or more of heroin (Count One); possession with the intent to distribute 400 grams or more of fentanyl (Count Two); possession with the intent to distribute 500 grams or more of methamphetamine (Count Three); and manufacture of 100 plants or more of marijuana (Count Four), announced U. S. Attorney Duane A. Evans.
According to court documents, on November 7, 2017, Drug Enforcement Administration (DEA) agents, with assistance from Jefferson Parish Sheriff’s Office, Plaquemines Parish Sheriff’s Office, and the New Orleans Police Department, executed a search warrant for a warehouse in Bridge City, Louisiana. They found a large-scale, indoor marijuana grow operation with more than 500 marijuana plants. Significant work and expense had been put into remodeling the warehouse, including thousands of dollars in lights, cooling systems, and ventilation. In addition to the marijuana grown, agents found a safe that contained a kilogram of fentanyl, 1.3 kilograms of methamphetamine, and thousands of MDMA pills. The execution of the warrant followed an extended investigation by the DEA that included multiple Title III wire intercepts.
If convicted, TRAN and TRAN each face a mandatory minimum term of imprisonment of 10 years up to life, a fine of $10,000,000, and at least five (5) years of supervised release following any term of imprisonment.
U. S. Attorney Evans reiterated that the superseding indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The case was investigated by the Drug Enforcement Administration and the New Orleans Police Department, with assistance from the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case is being prosecuted by Assistant U. S. Attorney David Haller.
St. Louis Man Sentenced on Sex Trafficking Related ChargesRead the Press Release
St. Louis, MO – Sean McChord O’Donnell was sentenced to 60 months in prison and 3 years supervised release for charges of racketeering, involving the use of interstate facilities to promote prostitution occurring between November 2016 and January 2017.
According to court documents, in November 2016, O’Donnell travelled to the First Western Inn, 4828 North Broadway, Saint Louis, Missouri. He did so to meet with a 21-year-old heroin-addicted prostitute and paid her to engage in commercial sex acts. He also drove her on prostitution calls, provided security for her, rented hotel rooms for her and lent her money. The defendant also posted online advertisements on her behalf on escort/prostitution websites. During the course of a late November visit, O’Donnell observed 15-year-old Jane Doe in the hotel lobby. Jane Doe had just recently left her pimp. Jane Doe was a missing juvenile and St. Louis County Police had been looking for her since September 2016. O’Donnell handed Jane Doe his card and told her to call him. O’Donnell subsequently engaged in commercial sex acts with Jane Doe.
Between late November and January 2017, Jane Doe moved between several hotels in St. Louis City and St. Louis County, Missouri. O’Donnell rented most of the rooms for Jane Doe since she had no identification. O’Donnell began to post and pay for Jane Doe’s advertisements on Backpage.com. The defendant took pictures of a scantily clad Jane Doe, which were included in postings. He posted the advertisements with her pictures using his email address. O’Donnell continued to engage in commercial sex acts with Jane Doe and took explicit photos of Jane Doe and used his phone to send images to others.
Officers had been searching for Jane Doe since September 2016, and on or about January 23, 2017, observed her image on Backpage.com. Police attempted to arrange a prostitution visit with Jane Doe and determined that she was at the Econolodge at 4576 Woodson Road, in a room rented by O’Donnell. On January 24, 2017, officers were able to locate and retrieve Jane Doe from a motel room.
O’Donnell, 53, of St. Louis, MO, pled guilty in December to one felony count of Racketeering Using Interstate Facilities to Promote, Manage, Establish and Carry on the Unlawful Activity of Prostitution. He appeared today for sentencing before United States District Judge Audrey G. Fleissig.
This case was investigated by the St. Louis County Police Department, Bridgeton Police Department, St. Charles County Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Howard Marcus is handling the case.
Springfield Man Sentenced for Illegal Firearms PossessionRead the Press Release
BOSTON – A Springfield man was sentenced yesterday in federal court in Springfield for illegally possessing firearms.
Eric Lopez, 36, was sentenced by U.S. District Court Judge Mark G. Mastroianni to 114 months in prison and three years of supervised release. In June 2016, Lopez pleaded guilty to three counts of being a felon in possession of firearms and ammunition. In November 2015, Lopez and his co-defendant, Francisco Figueroa, were arrested and charged.
Lopez was arrested as part of an investigation into firearms and narcotics trafficking by members of the Springfield and Holyoke chapters of the Latin Kings. In total, 11 members and leaders were arrested as part of the investigation.
Lopez is prohibited from possessing firearms and ammunition due to a prior criminal conviction. On two occasions in November 2014 and one occasion in January 2015, Lopez possessed a Zastava, model SKS (M59/66A1), 7.62mm rifle; a CZ, model CZ527M Carbine, 7.62mm rifle; approximately 140 rounds of .45 caliber ammunition; approximately 65 rounds of 7.62mm ammunition; a Marlin, model 1894CB, .45 caliber rifle; a Sturm Ruger, .22 caliber handgun; approximately eight rounds of .22 caliber ammunition; an Arsenal, model SLR-105R, 5.45mm rifle; and approximately 23 rounds of 5.4mm ammunition.
Figueroa pleaded guilty in June 2016. He is scheduled to be sentenced on March 20, 2018.
United States Attorney Andrew E. Lelling and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office prosecuted the case.
Springfield Man Charged with Firearms OffensesRead the Press Release
BOSTON – A Springfield man was charged yesterday in federal court in Springfield with being a felon in possession of firearms and ammunition.
Hector Navarro, 29, was charged by indictment with two counts of being a felon in possession of a firearm and ammunition. Navarro is scheduled to have an initial appearance before U.S. District Court Magistrate Judge Katherine A. Robertson on Monday, March 19, 2018.
According to the indictment, in September 2016, Navarro possessed a Mossberg, model 500, 12 gauge shotgun, and in October 2016, he possessed a Stoeger, model Cougar 8000, 9mm pistol; an Irwindale Arms Inc., model Automag III, .30 caliber pistol; a Coast to Coast, model CC660, 12 gauge shotgun; approximately 12 rounds of 9mm ammunition; approximately one round of .380 ammunition; and approximately three rounds of .30 caliber ammunition.
Due to a prior conviction of a crime punishable by imprisonment for more than one year, the defendant is prohibited from possessing firearms.
The charge provides for a sentence of no greater than 10 years in prison, at least one year of supervised release, and a fine of $250,000. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco and Firearms, Boston Field Division; Colonel Kerry A. Gilpin, Superintendent of the Massachusetts State Police; and Springfield Police Commissioner John Barbieri made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Lelling’s Springfield Branch Office is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Southern Illinois Residents Sentenced for Methamphetamine OffenseRead the Press Release
On March 13, 2018, two southern Illinois residents were sentenced to federal prison for their roles in a methamphetamine offense, United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Jeremy J. Humphries, 33, of Red Bud, and Mandy L. Hagen, 30, of Lenzburg, had previously pled guilty to a one-count second superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine. The indictment alleged that the offense occurred between 2015 and April 2017, in Perry, Randolph, Monroe, and St. Clair Counties. Humphries was sentenced to 235 months of incarceration, to be followed by four years of supervised release, and was fined $200.00. Hagen was sentenced to 84 months of incarceration, to be followed by four years of supervised release, and was fined $200.00.
Evidence at the plea and sentencing hearings established that Humphries and Hagen were involved with each other and numerous other persons in the distribution of ice. Ice is methamphetamine, which has a purity level of at least 80%. At sentencing, the district court found that Humphries was responsible for the distribution of over 1.3 kilograms of ice. Humphries received an enhanced sentence based on his possession of a stolen SKS rifle during his drug involvement. The district court determined that Hagen was responsible for the distribution of 372 grams of ice. Evidence also established that Hagen had allowed methamphetamine to be manufactured at her apartment.
Co-defendants Jeremy Copple and Paige Gleghorn have previously received prison sentences of 168 months and 140 months, respectively, for their role in the methamphetamine
conspiracy. Five additional co-defendants have pled guilty and are awaiting sentencing.
The ongoing investigation is being conducted by the Randolph County Sheriff’s Office, Jackson County Sheriff’s Office, Perry County Sheriff’s Office, Monroe County Sheriff’s Office, St. Clair County Sheriff’s Office Drug Tactical Unit, Metropolitan Enforcement Group of Southern Illinois, Chester Police Department, Coulterville Police Department, Belleville Police Department, Lenzburg Police Department, Perry County (Missouri) Sheriff’s Office, and Drug Enforcement Administration. The Randolph County States Attorney’s Office and the Monroe County States Attorney’s Office also assisted in the investigation.
Somerset County Man Indicted for Role in $1 Million Medicare Fraud that Deceived Seniors into Unnecessary DNA TestsRead the Press Release
Defendant Used Purported Non-Profit to Convince Seniors to Submit to Unnecessary Testing; Paid Healthcare Providers to Falsely Claim Tests Were Necessary
NEWARK, N.J. –A Somerset County, New Jersey, man was indicted by a federal grand jury today for using the purported non-profit The Good Samaritans of America to defraud the Medicare Program of more than $1 million by convincing hundreds of senior citizens to submit to unnecessary genetic testing, U.S. Attorney Craig Carpenito announced.
Seth Rehfuss, 43, of Somerset, New Jersey, is charged by indictment with conspiracy to commit health care fraud and conspiracy to wrongfully access individually identifiable health information and to pay illegal remunerations to health care professionals.
According to documents filed in the case and statements made in court:
From July 2014 through December 2015, Rehfuss, conspirator Sheila Kahl of Point Pleasant, New Jersey, and others allegedly used The Good Samaritans of America and offers of “free ice cream” to gain access to low-income senior housing complexes. Rehfuss and other members of the scheme claimed that The Good Samaritans of America was a “trusted non-profit” that assisted senior citizens in navigating federal benefit programs. In reality, The Good Samaritans of America was a front to present information about genetic testing.
In order to convince senior citizens to submit to genetic testing, Rehfuss used fear-based tactics during the presentations, including suggesting the senior citizens would be vulnerable to heart attacks, stroke, cancer and suicide if they did not have the genetic testing. In addition, Rehfuss claimed that the genetic testing allowed for “personalized medicine.”
As part of the scheme, Seth Rehfuss and others frequently took DNA swabs in the community rooms where the presentations took place or made arrangements to visit the senior citizen’s apartment on another day to take the DNA swab. Regardless of the timing or location of the swabbing, the DNA swab was collected without the involvement of any healthcare provider and without any determination by a healthcare provider that such testing was medically necessary or appropriate.
To get the tests authorized, Rehfuss used advertisements on Craigslist to recruit healthcare providers for the scheme. After entering into contractual relationships with The Good Samaritans of America, the healthcare providers received requisition forms that often included a patient’s personal information, Medicare information, medication lists and diagnosis codes.
The healthcare providers were paid thousands of dollars per month by Rehfuss and Kahl to sign their names to requisition forms authorizing testing for patients they never examined and were in no way involved in the patients’ care or treatment. Rehfuss and Kahl used fraudulent email accounts to access the individually identifiable health information of the senior citizens, specifically the results of the DNA analysis.
Rehfuss, Kahl and others caused the Medicare program to pay more than $1 million to two clinical laboratories. Rehfuss obtained more than $100,000 and distributed commissions to Kahl of tens of thousands of dollars.
Rehfuss and others were actively working towards expanding the scheme outside of New Jersey into other states, including: Georgia, Delaware, Virginia, Maryland, Pennsylvania, South Carolina, Michigan, Mississippi, Florida, Tennessee and Arizona.
The healthcare fraud conspiracy charge carries a maximum potential penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. The conspiracy charge carries a maximum penalty of five years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sheila Kahl previously pleaded guilty and is awaiting sentencing.
U.S. Attorney Carpenito credited special agents of the U.S. Department of Health and Human Services – Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, along with special agents of the U.S. Attorney’s Office for the District of New Jersey, with the investigation leading to today’s indictment.
The charges and allegations in the indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
The government is represented by Danielle Alfonzo Walsman, Chief of the U.S. Attorney’s Office’s Public Protection Unit in Newark.
Shreveport felon pleads guilty to possession of a firearm, methamphetamine distributionRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced that a Shreveport man previously convicted of a felony pleaded guilty Tuesday to possessing methamphetamine and a pistol in his car.
William Charles Riggs, 44, of Shreveport, pleaded guilty before U.S. Magistrate Judge Mark L. Hornsby to one count of felon in possession of a firearm and one count of possession with intent to distribute methamphetamine. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Louisiana State Police attempted to conduct a traffic stop on Riggs’ vehicle on April 28, 2017 in Bossier Parish. The trooper observed the car straddling the center line, and when the traffic stop was initiated, the car sped off at a high rate of speed. The car eventually crashed, and Riggs escaped on foot. He was later apprehended. Troopers searched the vehicle and found 27.21 grams of methamphetamine and a loaded model 22; .40 caliber Glock pistol.
Riggs faces five to 40 years in prison for the drug count and not less than five years in prison for the firearms count. He also faces five years of supervised release and a $5 million fine. The court set a sentencing date of June 14, 2018.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safe for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The ATF, DEA, Louisiana State Police and Bossier City Police Department conducted the investigation. Assistant U.S. Attorney J. Aaron Crawford is prosecuting the case.
Serial Armed Robber Pleads Guilty to Six RobberiesRead the Press Release
BOISE – Camron D. Brown, 21, of Mountain Home, Idaho, pleaded guilty on Tuesday to six counts of interference with commerce by robbery (Hobbs Act) and one count of brandishing a firearm during and in relation to a crime of violence, U.S. Attorney Bart M. Davis announced. A Boise federal grand jury indicted Brown on May 9, 2017.
At the hearing, Brown admitted to robbing six businesses at gun point: Jackson’s Food Store and Elements Massage on February 20, 2017; Human Bean Coffee stand on February 21, 2017; Game Stop on February 25, 2017; Continental Loans on March 8, 2017; and Motel 6 on March 13, 2017. During each robbery Brown brandished a firearm and demanded money.
U.S. Attorney Bart M. Davis stated: “Thanks to the cooperative efforts of our local and federal law enforcement partners, Mr. Brown’s extensive violent crime spree that targeted hard working members of our community will result in an appropriately lengthy prison sentence. There will be no tolerance of those who show a total and repeated disregard for law and order in the District of Idaho. Given that there is no parole in the federal system, it is important for law enforcement to consider federal prosecution in these types of cases.”
The charge of interference with commerce by robbery is punishable by up to 20 years in prison, a maximum fine of $250,000, and a term of up to three years of supervised release. The charge of brandishing a firearm during and in relation to a crime of violence is punishable by up to life and at least seven years consecutive to any other sentence, a maximum fine of $250,000, and a term of at least five years of supervised release.
Sentencing is set for June 11, 2018, before the Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
This case was investigated by the Boise City Police Department, Nampa City Police Department, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. This was a collaborative effort as part of Project Safe neighborhoods, a joint effort among local, state and federal law enforcement authorities aimed at reducing gang and gun violence.
Sentencings for March 12, 2018Read the Press Release
SOSIMO GONZALES-DE LA CRUZ, 34, of Tepic, Nayarit, Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 12, 2018 for illegal re-entry of a previously deported alien into the United States. Gonzales De-La Cruz. was arrested in Shoshoni, Wyoming. He received time served plus up to ten days to allow time for deportation proceedings and ordered to pay $100.00 in special assessment to be remitted upon deportation. This case was investigated by the US Department of Homeland Security, Immigration and Customs Enforcement.
DOMINGO JUAREZ-FRANCISCO, 32, of Huehuetenango, Guatemala, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on March 12, 2018 for illegal re-entry of a previously deported alien into the United States. Juarez-Francisco was arrested in Shoshoni, Wyoming. He received time served plus up to ten days to allow time for deportation proceedings and ordered to pay $100.00 in special assessment to be remitted upon deportation. This case was investigated by the US Department of Homeland Security, Immigration and Customs Enforcement.
Seminal Fluid Found After Massage Parlor Robbery Leads to ConvictionRead the Press Release
HOUSTON – Two men have been convicted after being identified by DNA found in seminal fluid left after the armed robbery of a Houston area massage parlor, announced U.S. Attorney Ryan K. Patrick.
20-year old Houston resident Javian Chapman pleaded guilty today to two counts of aiding and abetting interference with commerce by robbery and one count of aiding and abetting the discharge of a firearm during and in relation to a crime of violence. Co-defendant Joseph Berzat, 21, also of Houston, entered his plea to the same charges March 9, 2018.
From approximately 11:00 p.m. Friday, Aug. 5, 2016, until approximately 1:30 a.m. Aug. 6, 2016, Chapman and Berzat entered Hana Spa located at 14015 Bammel North in Houston, demanding money and property at gunpoint. They ultimate left with cash, a Samsung Galaxy S5 cell phone and a 2014 Acura SUV. The suspects also broke open the ATM and removed cash from inside using a drill and other tools they had brought with them.
During the robbery, the suspects had physically assaulted some of the employees. Authorities later processed the scene for forensic evidence and uncovered DNA from seminal fluid found at the scene which positively identified Berzat and Chapman. Investigators also recovered a palm print from the ATM, which was determined to match Berzat. In addition, Spa employees also identified both men as the suspects that held pistols and demanded money during the robbery.
U.S. District Judge Melinda Harmon accepted the pleas and set sentencing for July 6, 2018. At that time, both men face up to 20 years for the robbery as well as another mandatory 10 years for the firearms charge which must be served consecutively to any other prison term imposed. The charges also carry a potential maximum fine of $250,000.
Chapman and Berzat have been and will remain in custody pending that hearing.
The FBI and Harris County Sheriff’s Office conducted the investigation. Assistant U.S. Attorneys Carrie Wirsing and Jill J. Stotts prosecuted the case which was brought as part of the Department of Justice’s Project Safe Neighborhoods (PSN), a nationwide program to reduce gun and gang crime in America and the Houston Law Enforcement Violent Crime Initiative which seeks to proactively fight violent crime across the Greater Houston area.
Savannah Drug Dealer Sentenced to 200 Months for Drug and Firearm OffensesRead the Press Release
SAVANNAH, GA: NATHANIEL THOMAS PUGH, III, 35, of Savannah, Georgia, was sentenced on March 15, 2018, to 200 months in federal prison by United States District Court Judge William T. Moore, Jr. Pugh was convicted on December 12, 2017, by a federal jury of possessing a firearm as a felon, possession of ethylone, commonly referred to as "Molly," with the intent to distribute, and possessing a firearm in furtherance of drug trafficking.
According to the evidence presented at trial, Pugh was involved in a shooting in the Oak Forest neighborhood of Savannah on November 4, 2015. After sustaining a gunshot wound, Pugh drove his bullet riddled car to the hospital. Savannah Chatham-Metro Police recovered a Glock firearm, loaded with a 30-round extended magazine in the glove compartment, which had Pugh’s DNA on it. Also in the car, officers recovered a treasure trove of drug paraphernalia, including almost an ounce of “Molly,” cocaine, pills, baggies and a scale. Text messages recovered from Pugh’s cell phone revealed that Pugh had engaged in several drug transactions prior to the shooting incident, and also revealed photographs of Pugh holding the firearm that was ultimately recovered from Pugh’s car.
Pugh’s criminal history dates back almost two decades and includes prior convictions for Driving Under the Influence, Possession of Marijuana with the Intent to Distribute, Possession of Controlled Substances, Terroristic Threats, Simple Battery and Willful Obstruction of Law Enforcement.
U.S. Attorney Bobby L. Christine said, “Gun-toting drug dealers like Nathaniel Pugh have no place in our community, except behind bars. Pugh’s lengthy sentence should stand out as a stark example of our office’s determination and commitment to aggressively prosecute and disarm those who plague our neighborhoods with drugs and violence.”
This case was brought as part of Project Ceasefire, a joint federal, state and local initiative to combat gun violence and ensure that repeat offenders are subject to stiffer federal sentences, all without the possibility of parole.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Savannah Chatham-Metro Police Department.
Assistant United States Attorneys Jennifer Kirkland and Carlton Bourne prosecuted the case on behalf of the United States. For any questions, please contact the United States Attorney’s Office at (912) 652-4422.
Quitman Drug Dealer Sentenced to More Than 15 Years in Federal PrisonRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on March 15, 2018, Senior United States District Court Judge Hugh Lawson sentenced Burt Denson, age 41, of Quitman, GA, to 185 months imprisonment for two counts of possession with intent to distribute cocaine. Mr. Denson pled guilty to the offense on October 30, 2017.
In January 2016, Brooks County Sheriff’s Office deputies received information that cocaine was being sold from Mr. Denson’s residence. The information was consistent with prior reports of drug activity at the residence. A search warrant was obtained and executed on January 17, 2016. Brooks County drug investigators seized several bags of cocaine and other items consistent with drug distribution including kilogram-sized packaging, a large number of zip-lock baggies and electronic scales containing cocaine residue. A second search warrant was executed at Mr. Denson’s residence on December 1, 2016. Again, the investigators seized cocaine, as well as other controlled substances, and similar items consistent with drug distribution.
“Most of the time when we speak of ‘repeat drug offenders’ we are talking about defendants with prior convictions, but in Mr. Denson’s case we are talking about someone dealing drugs so regularly that he got caught a second time before he could be prosecuted for the first time,” said United States Attorney Peeler. “Mr. Denson richly deserves the sentence imposed on him today, as incarceration is obviously the only thing that will stop him from selling illegal drugs.”
DEA Special Agent in Charge, Atlanta Field division, states that this sends a strong signal that DEA, along with our local Law Enforcement partners, continue to work in our communities to stop illegal drug operations.
This case was investigated by the Brooks County Sheriff’s Office and the Drug Enforcement Administration. Assistant United States Attorney Robert D. McCullers prosecuted the case on behalf of the government.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Pittsburgh Doctor Charged with Unlawfully Dispensing Vicodin and Defrauding the University of Pittsburgh Medical Center Health PlanRead the Press Release
PITTSBURGH, PA - A Pittsburgh radiologist has been indicted by a federal grand jury in Pittsburgh on charges of unlawfully dispensing controlled substances and health care fraud, Attorney General Jeff Sessions and United States Attorney Scott W. Brady announced today. This indictment is the second in Western Pennsylvania since Attorney General Sessions announced the formation of the Opioid Fraud and Abuse Detection Unit, a Department of Justice initiative that uses data to target and prosecute individuals that commit opioid-related health care fraud.
The 88-count indictment, returned on March 14, 2018 and unsealed today following his arrest, charge Omar A. Almusa, 45, of Pittsburgh, Pennsylvania.
According to indictment, Almusa conspired to create and submit unlawful prescriptions for Vicodin and then unlawfully dispensed those controlled substances to other persons without a legitimate medical purpose. Almusa is also charged with health care fraud for allegedly submitting fraudulent claims to UPMC Health Plan, for payments to cover the costs of the unlawfully prescribed Vicodin.
"One of the main causes of our nation’s drug crisis is the diversion of prescription painkillers," said Attorney General Sessions. "That’s why, last summer, I sent a dozen of our top federal prosecutors to focus solely on the problem of opioid-related health care fraud where the drug epidemic was at its worst--including Western Pennsylvania. Within three months, they were already issuing indictments. Now we take the next step of indicting a defendant who allegedly spent three years distributing massive quantities of Vicodin on an illegal and fraudulent basis with no medical justification whatsoever. By shutting off the flow of these potentially addictive pills to our streets, this case, and the dozens more we will prosecute across the country, can save lives."
"If you are abusing the great privilege you have to serve your neighbors in the medical profession or if you are exploiting the weakness and addiction of others, we are coming after you with the full weight and resources of the federal government," said U.S. Attorney Scott W. Brady. "We will take away your livelihood and then we will take away your liberty."
"One of the goals of the Health Care Fraud Task Force is to identify and target doctors who are illegally prescribing dangerous drugs and putting people at risk in our community," said FBI Special Agent in Charge Robert Johnson. "The FBI views this crime as a severe problem and today's arrest sends a clear message that we, along with our law enforcement and industry partners, are dedicated to stopping this type of activity."
Almusa faces a maximum sentence of 20 years in prison and a fine of $1 million for each of the 86 counts charging him with unlawfully dispensing Schedule II controlled substances, a maximum sentence of 10 years imprisonment and a fine of $1 million for the one count charging him with conspiracy to unlawfully dispense a Schedule II controlled substance, and a maximum sentence of 10 years imprisonment and a fine of $250,000 for the one count charging him with health care fraud. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Robert S. Cessar is prosecuting this case on behalf of the government.
The investigation leading to the indictment in this case was conducted by the Western Pennsylvania Opioid Fraud and Abuse Detection Unit, which combines personnel and resources from the following agencies to combat the growing prescription opioid epidemic: Federal Bureau of Investigation, U.S. Health and Human Services – Office of Inspector General, Drug Enforcement Administration, Internal Revenue Service-Criminal Investigations, Pennsylvania Office of Attorney General - Medicaid Fraud Control Unit, Unites States Postal Inspection Service, U.S. Attorney’s Office – Criminal Division, Civil Division and Asset Forfeiture Unit, Department of Veterans Affairs-Office of Inspector General, Food and Drug Administration- Office of Inspector General and the Pennsylvania Bureau of Licensing.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pharmacy Chain Settles Improper Dispensing and Recordkeeping AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office reached a $200,000 civil settlement today with Hamid Mohaghegh, Fitchburg Family Pharmacy, Inc., Gardner Family Pharmacy, Inc., and Worcester Family Pharmacy, Inc., in connection with the improper dispensing of Schedule II controlled substances and flawed recordkeeping by eight retail pharmacy stores that were owned and operated by Mohaghegh in 2016.
“Controlled substances handled by pharmacies are subject to strict requirements because of their potential for harm and abuse,” stated United States Attorney Andrew E. Lelling. “For the sake of patient safety, and to ensure that medications are not stolen or sold on the street, we will continue to monitor pharmacies to ensure that they comply with all legal requirements related to the handling, dispensing, and recordkeeping of controlled substances.”
“Schedule II medications are extremely addictive. Pharmacies may not dispense them without a prescription signed by a doctor who has the authority to prescribe such substances,” said Special Agent in Charge Michael J. Ferguson of the Drug Enforcement Administration, New England Field Division. “DEA registrants are responsible for ensuring that complete and accurate records are being properly kept and accounted for in compliance with the Controlled Substances Act. When these responsibilities are not adhered to, it allows for the diversion of prescription pain medication, which contributes to the widespread abuse of opiates, is a gateway to heroin addiction, and is devastating our communities.”
Mr. Mohaghegh owns several retail pharmacies in Massachusetts. According to the settlement, pharmacists and staff at his stores failed to comply with recordkeeping and other requirements of the Controlled Substances Act on multiple occasions. The violations included filling Suboxone prescriptions by a provider who was not certified to prescribe the drug and not immediately reporting the theft or loss of controlled substances to DEA.
U.S. Attorney Lelling and DEA SAC Ferguson made the announcement today. The case was handled by Assistant U.S. Attorney Annapurna Balakrishna of Lelling’s Civil Division.
Owner of Old Saybrook Pizza Restaurant Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that ROBERT KEHAYIAS, 58, of Old Saybrook, was sentenced today by U.S. District Judge Janet Bond Arterton in New Haven to three months of imprisonment, followed by one year of supervised release, for filing false tax returns.
According to court documents and statements made in court, KEHAYIAS owns and operates Pizza Works (also known as Pizza Junction, LLC), a restaurant located in Old Saybrook. For the 2010 through 2014 tax years, KEHAYIAS deposited most of the cash receipts generated by the restaurant into his personal money market account, a portion of the cash receipts into other personal bank accounts, and only a minimal amount of cash into the business bank account. During this time, KEHAYIAS provided his tax return preparer with Quickbooks reports that significantly understated the gross receipts of the business each year. As a result, KEHAYIAS failed to report more $765,733 in taxable income on his federal income tax returns for the 2010 through 2014 tax years, and failed to pay approximately $343,000 in taxes.
On September 29, 2017, KEHAYIAS pleaded guilty to one count of filing a false tax return.
KEHAYIAS has paid all of his back taxes. He still owes approximately $361,000 interest and penalties. Judge Arterton ordered KEHAYIAS to make a $200,000 payment to the IRS within two weeks.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Orlando Woman Sentenced to Nearly Twenty Years for Tax Refund Fraud and Aggravated Identity TheftRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Jeanine Jeanty (45, Orlando) to 19 years and 8 months in federal prison for conspiracy to steal tax refunds, theft of tax refunds, and aggravated identity theft. As part of her sentence, the court also entered a money judgment in the amount of $1,774,376, representing the proceeds of the charged criminal conduct.
A jury found Jeanty guilty on December 15, 2017.
According to court documents, Jeanty was the organizer and leader of a sophisticated criminal enterprise that stole federal tax refunds by filing false tax returns using stolen identity information. The organization also purchased fraudulently obtained U.S. Treasury tax refund checks from others for a fraction of their face value. In less than two years, Jeanty and her co-conspirators stole more than $2.7 million in tax refunds from the Department of the Treasury.
This case was investigated by the Internal Revenue Service – Criminal Investigation and the U.S. Postal Inspection Service. It was prosecuted by Assistant United States Attorney Karen L. Gable.
Orlando Man Arrested for Filing Fraudulent Immigration Petitions Resulting in over 300 Temporary Workers Entering the United StatesRead the Press Release
Orlando, Florida – Marvin Mushia Smith (39, Orlando) has been arrest and charged by criminal complaint with visa fraud and encouraging or inducing an alien to come to, enter, or reside in the United States. If convicted, he faces a maximum penalty of 10 years in federal prison on each count.
According to court documents, in April 2017, members of Orlando’s Homeland Security Investigation’s (HSI) Document and Benefit Fraud Task Force (DBFTF) identified numerous requests for foreign, temporary, non-agricultural workers’ “H-2B” visas linked to Smith, a naturalized U.S. citizen originally from Jamaica. Further investigation revealed that from at least December 2014 through March 15, 2018, Smith filed fraudulent labor certification packages and 11 fraudulent immigration petitions with the Department of Labor (DOL) and/or U.S. Citizenship and Immigration Services (USCIS), which resulted in the admission of over 300 non-immigrants from Jamaica.
The H-2B non-agricultural temporary worker program allows U.S. employers to bring foreign nationals to the United States to fill temporary, non-agricultural jobs. To qualify for H-2B nonimmigrant classification, a petitioner must establish that there are not enough U.S. workers who are able, willing, qualified, and available to do the temporary work, and that employing H-2B workers will not adversely affect the wages and working conditions of similarly employed U.S. workers. A statutory “cap” limits the number of H-2B visas granted during a fiscal year. Currently, Congress has set the H-2B cap at 66,000 per fiscal year, with 33,000 for workers who begin employment in the first half of the fiscal year (October 1 - March 31) and 33,000 for workers who begin employment in the second half of the fiscal year (April 1 - September 30).
In his fraudulent submissions to DOL and USCIS, Smith claimed to have labor contracts with various hotels, construction companies, and landscaping businesses for temporary work in the United States. In reality, many of his H-2B petition packages used fake temporary employment contracts to support the need for his foreign workers. USCIS approved the petitions, in large part, because of the fraudulent contracts supplied by Smith. Further, law enforcement officers interviewed several of the workers who had been admitted as part of Smith’s fraudulent packages, who stated that they worked at different job sites and performed duties other than the ones indicated on the petitions.
A criminal complaint is merely a formal charge that a defendant has violated one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was the culmination of the combined investigative efforts of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the U.S. Department of State – Diplomatic Security Service, the DOL–Office of the Inspector General, U.S. Customs and Border Protection, and USCIS - Fraud Detection and National Security. These agencies comprise HSI’s Document and Benefit Fraud Task Force, which was created to combat visa fraud and other similar crimes. This case is being prosecuted by Special Assistant U.S. Attorneys Brandon M. Bayliss and Christina R. Downes, who are on assignment from the Office of the Principal Legal Advisor, ICE.
North Suburban Trader Facing Federal Criminal Charge for Allegedly Defrauding InvestorsRead the Press Release
CHICAGO — A north suburban trader has been charged with fraud for allegedly misappropriating at least $750,000 from investors.
RICHARD D. CARTER, 49, of Mundelein, was charged in a federal criminal complaint with one count of wire fraud. He was arrested Tuesday and made an initial court appearance that day before U.S. Magistrate Judge Maria Valdez. Judge Valdez ordered him released on a $50,000 unsecured bond. The next court date in U.S. District Court in Chicago has not yet been set.
Carter worked as a trader at Blue Guru Trading LLC, a Lincolnshire firm that claimed to specialize in trading futures contracts. According to the charges, Carter advised existing and potential clients that his firm’s proprietary trading model was profitable, and he furnished account statements and other documentation that purportedly showed significant returns on investments. In reality, Carter had falsified the documents to conceal the fact that he misappropriated much of the money, according to the complaint.
The complaint was announced by John R. Lausch, Jr., United States Attorney for the Northern District of Illinois; and Jeffrey S. Sallet, Special Agent-in-Charge of the Chicago office of the Federal Bureau of Investigation. The Commodity Futures Trading Commission, which earlier this year filed a civil enforcement lawsuit against Carter, provided assistance.
According to the complaint, the fraud scheme began in June 2016 and continued to January of this year. Carter allegedly told clients their investments would be traded through a clearinghouse called Straits Financial, and he sent some of them Straits Financial account statements showing that Carter’s firm held a balance of more than $6.1 million. Carter had actually created the statements himself, knowing that Blue Guru held only $9,000 in investor funds, the complaint states.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.
Wire fraud is punishable by up to 20 years in prison. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Matthew S. Ebert.
North Haven Man Admits Role in Large-Scale Fencing OperationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that PAUL WILLIAM MUZYKA, 48, of North Haven, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to charges related to his role in a large-scale fencing operation.
According to court documents and statements made in court, MUZYKA helped operate a licensed secondhand store, Ace Amusements, located at 42 Kimberly Avenue in New Haven. At Ace Amusements, MUZYKA and others knowingly purchased stolen property from “boosters,” who typically were shoplifters with opioid addictions. The boosters stole the goods from retail stores such as Home Depot, Walmart, Target and Kohl’s, and sold the goods at Ace Amusements for approximately one-third of their retail prices. MUZYKA and others then resold the stolen goods at Ace Amusements, and also online at websites such as eBay.
The loss attributed this scheme exceeds $5.9 million.
MUZYKA pleaded guilty to one count of conspiracy to commit the interstate transport of stolen property, an offense that carries a maximum term of imprisonment of five years, and one count of interstate transport of stolen property, an an offense that carries a maximum term of imprisonment of 10 years. A sentencing date is not scheduled.
MUZYKA is released on a $100,000 bond pending sentencing.
This matter is being investigated by Federal Bureau of Investigation, with assistance from the Connecticut State Police, U.S. Marshals Service, U.S. Postal Inspection Service, Internal Revenue Service – Criminal Investigation Division, Connecticut Department of Correction, Connecticut Chief State’s Attorney’s Office, and the New Haven, North Haven, Milford, West Haven, Wallingford, Hamden and Orange Police Departments.
This case is being prosecuted by Assistant U.S. Attorneys John T. Pierpont, Jr. and David T. Huang.
New Orleans Man Indicted for Theft of Social Security Disability FundsRead the Press Release
ELIJAH CHARLES SORINA (“SORINA”), age 29, of New Orleans, Louisiana, was indicted today by a federal grand jury for Theft of Government Funds, announced United States Attorney Duane A. Evans.
According to the indictment, SORINA continued to receive Social Security Administration (“SSA”) disability benefits after he claimed he was disabled and unable to work. Federal special agents determined SORINA began working for a local transportation company as a school bus driver in 2014 after he obtained a Commercial Driver’s license. SSA determined that from May 2014 until August 2016, SORINA received benefits of $19,897.00 to which he was not entitled because he concealed his employment from the SSA.
U. S. Attorney Evans reiterated that the indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
If convicted, SORINA faces a maximum penalty of ten (10) years imprisonment, followed by up to three (3) years of supervised release, and a $250,000.00 fine.
U.S. Attorney Evans praised the work of the Social Security Administration, Office of Inspector General and the Louisiana State Police. The prosecution of this case is being handled by Fraud Unit Chief, Assistant U. S. Attorney Brian M. Klebba.
New Haven Man Charged with Distribution of Child Pornography and Assault on A Federal OfficerRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Colin Germain, 20, of New Haven, Vermont has been indicted on charges for distribution of child pornography and assault on a federal officer. Germain was charged via criminal complaint and made his initial appearance in the United States District Court in Burlington on March 9, 2018. He was subsequently indicted by a federal grand jury. In a hearing before United States Magistrate Judge John M. Conroy on March 16, 2018, Germain was arraigned on the indictment and ordered released on conditions pending trial, which has not been scheduled.
According to Court documents, on August 2, 2017, Germain sent another individual an email containing video file depicting a female child engaging in sexually explicit conduct. Law enforcement identified the Internet Protocol (IP) address associated with the email account that sent the video, then traced the IP address to Germain’s New Haven address and obtained a warrant to search the location. Federal, state, and local officers executed the warrant on November 7, 2017. During their search of the residence, Germain became argumentative and kicked a Homeland Security Investigations Special Agent.
United States Attorney Christina Nolan emphasizes that the charges against Germain are merely accusations and that he is presumed innocent unless and until he is proven guilty. If convicted, Germain faces a sentence of five to twenty years in prison on the child pornography charge and up to eight years in prison on the assault charge. The actual sentence would be determined with reference to the federal sentencing guidelines.
United States Attorney Nolan commended the efforts of Homeland Security Investigations, the Vermont State Police, the Vermont Internet Crimes Against Children Task Force (ICAC), and the Bristol Police Department. She noted that this prosecution is part of the U.S. Department of Justice’s Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney’s Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
The prosecutor in this matter is Assistant U.S. Attorney Nicole Cate. Germain is represented by Federal Public Defender Elizabeth Quinn.
NYPD School Safety Agent Sentenced to Prison for Conspiracy to Distribute HeroinRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, James J. Hunt, the Special Agent in Charge of the New York Field Division of the Drug Enforcement Administration (“DEA”), George P. Beach II, the Superintendent of the New York State Police (“NYSP”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced that TINA BATISTA, a former school safety agent with the New York City Police Department (“NYPD”), was sentenced today to one year and one day in prison for conspiring to distribute and possess with intent to distribute more than one kilogram of heroin in Manhattan. BATISTA pled guilty to the Indictment on November 15, 2017. U.S. District Judge Alison J. Nathan imposed today’s sentence.
BATISTA’s co-defendants, Lazaro Mallet and Ruben Luciano De Los Santos have also pled guilty to participating in the conspiracy. On February 23, 2018, De Los Santos was sentenced to two years in prison by Judge Nathan. Mallet, who is facing a mandatory minimum sentence of 10 years in prison, is scheduled to be sentenced by Judge Nathan on April 27, 2018.
U.S. Attorney Geoffrey S. Berman said: “Tina Batista was an NYPD school safety agent entrusted with safeguarding our city’s schools and its students. But she violated that trust by committing a serious narcotics crime involving a large quantity of heroin and lying to law enforcement about her crimes. Thanks to the outstanding investigative work of the DEA and the NYPD, Batista will serve time in prison for her crimes.”
DEA Special Agent in Charge James J. Hunt said: “Honest men and women in law enforcement work hard to keep our community safe from all perils, drugs included. And through this investigation, the New York Drug Enforcement Task Force identified a member of law enforcement who put this city at risk by using her shield to facilitate drug trafficking.”
Superintendent George P. Beach II said, “Thanks to the hard work and partnership of law enforcement at the federal, state and local level, we have put three people behind bars who were supplying dangerous drugs to our communities. Today’s sentencing involved a school safety agent, who was trusted to keep our children safe, and was also conspiring to distribute heroin. We will continue to aggressively pursue criminals who profit from illegal drugs at the expense of the safety and security of our neighborhoods.”
According to the Complaint, the Indictment, other documents filed in this case:
On December 20, 2016, BATISTA, who was then a school safety agent with the NYPD, drove her boyfriend Mallet and De Los Santos from the Bronx to the vicinity of 115th Street and Fifth Avenue in Manhattan where Mallet had arranged to sell more than a kilogram of heroin to a confidential source working in an undercover capacity with federal law enforcement (the “CS”). The car that BATISTA drove had a visible NYPD parking permit with the NYPD logo indicating that the vehicle was associated with law enforcement. BATISTA had obtained the parking permit through her employment with the NYPD.
After the CS entered BATISTA’s vehicle and spoke with Mallet about the heroin in Spanish and in English, Mallet provided the CS with a Gucci shopping bag containing approximately 1.3 kilograms of heroin. BATISTA, Mallet, and De Los Santos then waited in the area for approximately one hour to receive payment for the heroin until they were arrested.
During an interview that was conducted after BATISTA’s arrest, BATISTA lied multiple times to federal agents, falsely stating, in substance and in part, that she was not aware of any drugs, that the Gucci bag only contained sandals, and that she did not speak Spanish.
BATISTA had also previously conducted unauthorized inquiries in NYPD databases at the request of Mallet using a supervisor’s security code.
After her arrest in this case, BATISTA’s employment with the NYPD was terminated.
* * *
In addition to the prison sentence, BATISTA, 37, of the Bronx, was sentenced to two years of supervised release.
Mr. Berman praised the outstanding investigative work of the New York Drug Enforcement Task Force, which comprises agents and officers of the DEA, the NYPD, and the NYSP.
This case is being handled by the Office’s Narcotics Unit. Assistant U.S. Attorney Sagar K. Ravi is in charge of the prosecution.
Mumbai, India, Man Sentenced to 33 Months in Prison for Shipping Misbranded Drugs to U.S. ConsumersRead the Press Release
PITTSBURGH - A resident of Mumbai, India, has been sentenced in federal court to a 33-month term of imprisonment on his conviction of mail fraud and money laundering, United States Attorney Scott W. Brady announced today.
Senior United States District Judge Donetta W. Ambrose imposed the sentence yesterday on Ramesh Buchirajam Akkela, a/k/a Ramesh Bhai, 44, of Mumbai, India.
According to information presented to the court, Ramesh Buchirajam Akkela shipped misbranded prescription drugs from India to reshippers in the United States for distribution – without prescription – to U.S. consumers. Ramesh Buchirajam Akkela was extradited from Panama to the United States to account for these crimes.
Assistant United States Attorney Shardul S. Desai prosecuted this case on behalf of the government.
United States Attorney Brady commended the Food and Drug Administration, Office of Criminal Investigations, Homeland Security Investigations, Postal Inspection Service, Pennsylvania State Police and the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Akkela.
Michigan man admits to heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – Danzavious Dolphus, of Harper Woods, Michigan, has admitted to a drug distribution charges, United States Attorney Bill Powell announced.
Dolphus, also known as “Dash,” age 24, pled guilty to one count of “Distribution of Heroin.” Dolphus admitted to selling heroin in June 2017 in Monongalia County.
Dolphus faces up to 20 years incarceration and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda E. Wesley is prosecuting the cases on behalf of the government. The Mon Metro Drug and Violent Crimes Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Irene M. Keeley presided.Mexican National Facing Federal Charge Based on Nine-Pound Heroin Seizure in New MexicoRead the Press Release
ALBUQUERQUE – Roberto Esmerardo Lopez-Gaxiola, 35, a Mexican national, made his initial appearance this morning in federal court in Las Cruces, N.M., on a heroin trafficking charge arising out of the seizure of more than nine pounds of heroin at a U.S. Border Patrol checkpoint in southern New Mexico on March 14, 2018. Lopez-Gaxiola remains in federal custody pending a preliminary hearing and a detention hearing, which have yet to be scheduled.
U.S. Border Patrol agents arrested Lopez-Gaxiola on March 14, 2018, after allegedly seizing approximately 4.2 kilograms (9.25 pounds) of heroin concealed in Lopez-Gaxiola’s vehicle. According to the criminal complaint, the agents allegedly found the heroin in Lopez-Gaxiola’s vehicle during an inspection at the U.S. Border Patrol checkpoint located on Interstate 25 near Truth or Consequences, N.M., in Sierra County, N.M.
If convicted of the charges in the criminal complaint, Lopez-Gaxiola faces a statutory mandatory minimum penalty of ten years and a maximum of life in federal prison. Charges in criminal complaints are merely accusations and criminal defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Las Cruces Office of the DEA and the U.S. Border Patrol. Special Assistant U.S. Attorney Joni Autrey of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Massachusetts Temp Agency Operator Pleads Guilty to Employment Tax FraudRead the Press Release
A Massachusetts temporary employment agency operator pleaded guilty today in Boston federal district court to willfully failing to collect and pay over employment taxes, announced Principal Deputy Assistant Attorney General Richard E. Zuckerman of the Justice Department’s Tax Division.
According to information presented in open court and filed documents, Huong Le, also known as Lynn Le, assisted Tien Chau in the operation of an employment agency that provided temporary labor to businesses in Massachusetts and New Hampshire. The agency operated under at least four different names between 2006 and 2011: Central Boston Staffing Services, Metro Boston Staffing Services, General Staffing Inc. and Kim’s Staffing Inc. Le and Chau used family members and other individuals as nominees to conceal their ownership of the business.
From April 2010 through September 2011, Le was required to collect and pay over to the IRS employment taxes relating to the agency’s workers. Le and others underreported to the agency’s payroll company the total number of employees and wages paid, which caused the payroll company to prepare and file false forms with the IRS on behalf of the employment agency.
As part of her scheme, Le attempted to hide the size of the employment agency’s workforce by paying employees cash under the table. Le also personally cashed over $6 million in checks payable to the employment agency at a check casher, caused others to cash over $4.9 million at the check casher, and caused others to incorporate the employment agency under nominee names and open bank accounts in those names. Chau previously pled guilty to conspiring to defraud the government, failing to pay over employment taxes and obstructing the internal revenue laws and is awaiting sentencing.
U.S. District Judge George A. O’Toole, Jr., scheduled sentencing for June 19. Le faces a statutory maximum sentence of five years in prison. She also faces a period of supervised release, restitution in the amount of $256,627, and monetary penalties.
Principal Deputy Assistant Attorney General Zuckerman thanked special agents of IRS Criminal Investigation, who conducted the investigation, and Tax Division Trial Attorneys Brittney Campbell and Shawn Noud, who are prosecuting the case. Principal Deputy Assistant Attorney General Zuckerman also thanked Deputy Chief of Investigations Anthony DiPaolo of the Insurance Fraud Bureau of Massachusetts for his agency’s assistance with the investigation.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.