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Monday 26 February 2018
Federal Jury Convicts Dallas Man of Bankruptcy FraudRead the Press Release
DALLAS - On Wednesday, Gary Beach, 66, of Dallas, Texas, was convicted of four bankruptcy related felony counts following a seven-day trial before U.S. District Judge David Godbey. The announcement was made by Tanya K. Pierce, Acting United States Attorney for the Northern District of Texas.
According to evidence presented at trial, Beach obtained a $857,500 home and tried to hide $15,000 in monthly payments before he filed for bankruptcy protection from an $812,000 debt created by a lawsuit that Beach brought and lost.
Specifically, following an $812,000 loss in a civil trial in Harris County, Texas, Beach used a trust fund created by his father to hide payments that he was receiving for continuing to work in the oil and gas industry. Beach signed an agreement with Black Horse Resources (owned by his brother-in law in Utah) to perform consulting work in the development of an oil field. This participation agreement obligated Black Horse to pay a $15,000 monthly management fee for the services. However, the agreement purported to have Beach performing the services on behalf of his father’s Beach 2010 Trust. As the sole trustees and beneficiaries of the trust, Beach and his son had complete control over the money and it was channeled to pay Beach’s living expenses of nearly $10,000 a month. Three months later, Beach formed Beach Petroleum, LLC, with himself as sole manager. That same day, Beach had the trust transfer its interest in the participation agreement to Beach Petroleum, so that all future $15,000 monthly consulting fee payments could be made to Beach Petroleum. As sole manager of Beach Petroleum, Beach had direct control over the $15,000 payments.
Before Beach filed for bankruptcy, Black Horse paid $120,000 in consulting fees to either Beach directly or to Beach indirectly through payments to Beach Petroleum. The payments continued and reached $210,000 before Beach’s last deposition. Beach did not disclose any of this money until he was confronted with documentary proof of their existence under cross-examination during a bankruptcy deposition. Even then, the payments continued and approached half a million dollars.
Three days before Beach filed for bankruptcy protection, he also used the trust to purchase a residence in Highland Park, Texas for $857,500. Additional monies were then spent on improvements to the house until it was worth almost $1 million dollars.
The United States Trustee’s Office referred Beach’s false statements to the United States Attorney’s Office. After an investigation and trial, Beach was convicted of three separate counts of the felony offense of Making False Statements Under Penalty of Perjury for certain bankruptcy documents that he filed omitting the $15,000 payments. Beach was also convicted of Making a False Oath for giving intentionally false testimony about the payments from Black Horse Resources during one of his bankruptcy depositions.
For each count of conviction, Beach faces a maximum penalty of 5 years in federal prison and a $250,000 fine. Beach will remain on bond pending sentencing, which is set for June 4, 2018.
This case was investigated by the United States Postal Inspection Service and was prosecuted by Assistant United States Attorneys, David Jarvis and Walt Junker.
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Federal Judge Sentences Drug Dealer to More Than 11 Years in PrisonRead the Press Release
CHARLOTTE, N.C. Jonathan Cortez, 24, of Charlotte, was sentenced today to 135 months in prison and five years of supervised release on drug charges, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina.
Greg Wiest, Acting Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Chief Kerr Putney of the Charlotte Mecklenburg Police Department join U.S. Attorney Murray in making today’s announcement.
According to filed court documents and court records, on February 13, 2017, an undercover officer contacted Cortez to arrange the purchase of 15 kilograms of cocaine. The undercover officer made arrangements to meet with Cortez and another individual at a residence in Mint Hill, N.C., to purchase seven kilograms of cocaine at first, and another eight kilograms at a later time. On the same day, court records show that law enforcement observed Cortez heading toward the meeting location. When law enforcement attempted to stop Cortez’s vehicle, Cortez sped away, eventually crashing the vehicle. Cortez then fled in a second vehicle, but he was taken into custody by law enforcement a short while later.
After Cortez was apprehended, law enforcement executed a search warrant at his residence and seized over seven kilograms of cocaine and two handguns. Cortez has prior felony convictions and he is prohibited from possessing a firearm.
In May 2017, Cortez pleaded guilty to one count of conspiracy to distribute and to possess with intent to distribute cocaine. He is currently in federal custody and will be transferred to the custody of the federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Murray thanked HSI and CMPD for investigating the case.
Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
Erie Man Sentenced to 5 Years in Prison in Tax Refund Fraud CaseRead the Press Release
ERIE, Pa. - A former resident of Erie, Pennsylvania, has been sentenced in federal court to 60 months in jail and ordered to pay $62,653.00 in restitution on his conviction of conspiracy to defraud the government with respect to claims and aggravated identify theft, United States Attorney Scott W. Brady announced today. The 60 month sentence is consecutive to Johnson’s 120 month sentence he received on October 8, 2013 for a federal firearm conviction.
United States District Judge David S. Cercone imposed the sentence on James Lamont Johnson, 52.
According to information presented to the court, Johnson engaged in a conspiracy to defraud the United States by submitting false claims for income tax refunds using individuals’ identification information which was unlawfully obtained. Johnson stole the identities of 56 individuals who were clients of the Community of Caring, a non-profit social service agency in Erie, where he had access to the clients’ personal identification information. Johnson utilized TurboTax and filed approximately 71 tax returns, seeking refunds from the IRS of more than $100,000.00. Johnson and his co-conspirator inputted the stolen identity information and used wage information from W-2 forms taken from actual employees of local businesses to perpetrate the fraudulent tax refund scheme. The scheme to defraud successfully obtained more than $60,000.00 in tax refunds. The refunds came in the form of prepaid debit cards and U.S. Treasury checks, which were mailed to addresses where Johnson could access the mail and retrieve the refunds.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the Internal Revenue Service, Criminal Investigation for the investigation leading to the successful prosecution of Johnson.
Employee of United States Department of Agriculture Office in Houston County Arrested After Being Charged with Crop Insurance FraudRead the Press Release
Montgomery, Ala. – Today, Anna Marie Knowles, 36, of Headland, Alabama, was arrested on charges of wire fraud, theft of government property, and using a false document in a matter under the jurisdiction of the federal government, announced United States Attorney Louis V. Franklin, Sr., from the Middle District of Alabama. Knowles was employed in the United States Department of Agriculture’s (USDA) Farm Service Agency office located in Dothan, Alabama.
The charges stem from allegations that Knowles was carrying out a crop insurance fraud scheme. According to the indictment, in 2016, Knowles obtained crop insurance through a federal program, the Noninsured Crop Disaster Assistance Program (NAP). NAP is a USDA program that provides financial assistance to producers of non-insurable crops when low yields, loss of inventory, or prevented planning occur due to a natural disaster. Knowles insured a crop of summer squash that she was planning to grow on land in Houston County, Alabama. Thereafter, Knowles filed a claim through the federal crop insurance program. In that claim, she falsely reported that a drought had caused her to lose the majority of her squash crop. She also submitted forged receipts to establish that she had spent money to purchase squash seed and fertilizer. After filing the claim, Knowles fraudulently obtained $116,500.00 through NAP. The indictment also states that, in her job at the USDA office, Knowles was responsible for administering federal crop insurance programs in Houston County.
If convicted of the most serious charge, Knowles faces a maximum sentence of 20 years’ in federal prison. She also faces substantial monetary penalties and restitution.
An indictment merely alleges that crimes have been committed. The defendant is presumed innocent until proven guilty beyond a reasonable doubt.
This case was investigated by the United States Department of Agriculture’s Office of Inspector General. Assistant United States Attorney Jonathan S. Ross is prosecuting the case.
El Salvadoran National Sentenced to Prison for Illegally Reentering the U.S. after DeportationRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that JUAN CARLOS ACOSTA, also known as “Juan Carlos Acosta Santos,” 32, a citizen of El Salvador last residing in Manchester, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to six months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, on September 27, 2006, ACOSTA was convicted in Manchester Superior Court of assault in the first degree and sentenced to one year of imprisonment, time served, and a one-day conditional discharge. On December 11, 2006, he was removed to El Salvador.
In February 2015, ACOSTA was arrested in East Hartford on charges of breach of peace in the second degree and interfering. On April 17, 2015, he was removed to El Salvador without a resolution on the state charges.
In December 2015, ACOSTA was found in the U.S. near Rio Grande Valley, Texas. On December 23, 2015, he was removed to El Salvador.
On February 12, 2017, the Connecticut State Police arrested ACOSTA for assault in the second degree with a weapon, and related misdemeanor offenses.
ACOSTA has been detained since arrest. On November 30, 2017, he pleaded guilty to one count of illegal reentry of a removed alien.
The state charges against ACOSTA are pending in Rockville Superior Court.
This matter was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Hal Chen.
El Paso, Texas Man Pleads Guilty to Federal Heroin and Methamphetamine Trafficking Charges in New MexicoRead the Press Release
ALBUQUERQUE – Jesus Gerardo Prieto, Jr., 38, of El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to heroin and methamphetamine trafficking charges.
Prieto was arrested in Oct. 2017, on a criminal complaint charging him with heroin and methamphetamine trafficking offenses on Oct. 17, 2017, in Dona Ana County, N.M. U.S. Border Patrol agents arrested Prieto at the checkpoint in Las Cruces after seizing approximately 432 grams of methamphetamine and 117 grams of heroin that were concealed inside Prieto’s vehicle.
Prieto subsequently was charged in a five-count indictment on Jan. 17, 2018, with distributing methamphetamine on Aug. 29, 2017, in Dona Ana County; distributing methamphetamine and heroin on Oct. 6, 2017, in Luna County, N.M.; and possession of methamphetamine and heroin with intent to distribute on Oct. 19, 2017, in Dona Ana County.
During today’s proceedings, Prieto pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Prieto faces a mandatory minimum penalty of ten years and a maximum of life in federal prison. Prieto remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the U.S. Border Patrol and the Border Enforcement Security Taskforce of Homeland Security Investigations. The case is being prosecuted by Assistant U.S. Attorney Brock E. Taylor of the U.S. Attorney’s Las Cruces Branch Office pursuant to 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.
Dutch Citizen Convicted of Conspiracy to Commit Wire Fraud and Wire FraudRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that on Friday, February 23, 2018, a federal court in Benton found Pieter Roor, 66, of the Netherlands, guilty of conspiracy to commit wire fraud and two counts of wire fraud.
Evidence presented at trial proved beyond a reasonable doubt that Roor was guilty of founding and operating on-line investment programs. At trial, Roor admitted receiving five million dollars from investors. Roor faces a maximum of twenty years in prison. Sentencing is scheduled for May 31, 2018, before U.S. District Judge J. Phil Gilbert. A preliminary order forfeiting Roor’s assets was entered on February 23, 2018.
The investigation into these crimes was conducted by the United States Postal Inspection Service with assistance from the Netherland’s FIOD investigative office.
Delaware County Man and Schoharie County Woman Arrested on Child Sexual Exploitation ChargesRead the Press Release
ALBANY, NEW YORK – Joshua Carey, age 37, of Stamford, New York, and Ariel Machia, age 27, of Middleburgh, New York, were arrested on February 22 and charged with sexual exploitation of a 1-year-old, whom they used to produce child pornography.
The announcement was made by United States Attorney Grant C. Jaquith and Vadim D. Thomas, Special Agent in Charge of the Albany Field Office of the Federal Bureau of Investigation (FBI).
Carey and Machia appeared on February 23 before United States Magistrate Judge Christian F. Hummel, and were detained pending further proceedings.
The charges in the complaint are merely accusations. The defendants are presumed innocent unless and until proven guilty.
If convicted, Carey faces at least 25 years and up to 50 years in prison, post-imprisonment supervised release of at least 5 years and up to life, and a maximum $250,000 fine. Machia faces at least 15 years and up to 30 years in prison, post-imprisonment release of at least 5 years and up to life, and a maximum $250,000 fine. Sentences are imposed by a judge based on the particular statute the defendant is charged with violating, the United States Sentencing Guidelines, and other factors.
This case is being investigated by the FBI and its Child Exploitation Task Force, with the assistance of the Schoharie County Sheriff’s Office, the Delaware County Sheriff’s Office and the New York State Police, and is being prosecuted by Assistant U.S. Attorney Joseph A. Giovannetti.
This case is being prosecuted as part of Project Safe Childhood. Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Davenport Man Sentenced to 90 months in Prison for Methamphetamine TraffickingRead the Press Release
DAVENPORT, Iowa-- On February 23, 2018, United States Chief District Court Judge John A. Jarvey sentenced Chelsea Ross Meier, III, to 90 months in prison as the result of his plea of guilty to possession of methamphetamine with the intent to distribute. Meier, age 35, of Davenport, Iowa, was also ordered to serve four years of supervised release and pay $100 to the Crime Victim’s Fund.
On April 10, 2017, Meier was found in the parking lot of the Davenport-Rhythm City Casino in possession of 11.4 grams of ice methamphetamine. Meier later admitted that from November 2016 to April 2017, he purchased approximately one ounce of methamphetamine a week and distributed this methamphetamine to others.
This investigation was conducted by the Drug Enforcement Administration, Iowa Division of Narcotics Enforcement, Iowa Division of Criminal Investigation, and Scott County Sheriff’s Office. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Cocaine and Meth Trafficker Extradited from Mexico Sentenced to 15 Years in PrisonRead the Press Release
ERIE, Pa. - A former resident of Mexico has been sentenced in federal court to 180 months in jail on his conviction of violating federal drug laws, United States Attorney Scott W. Brady announced today.
United States District Judge David S. Cercone imposed the sentence on Ignacio Montes Leon, 37.
According to information presented to the court, from June 2013 through February 2015, Leon engaged in a conspiracy with 18 co-defendants to distribute and possess with intent to distribute between 50 and 150 kilograms of cocaine, and more than 100 grams of 99% pure methamphetamine. According to information provided to the court, Montes Leon was the local leader of a drug trafficking organization involved in importing cocaine and methamphetamine from Mexico into Texas, which was then transported to Erie, Pennsylvania and elsewhere in hidden compartments in vehicles. Montes Leon was responsible for coordinating the drug shipments with higher-level conspirators in Texas, was directly selling pure methamphetamine to individuals in Erie on multiple occasions, and was responsible for distributing multi-kilogram quantities of cocaine at a time to his co-conspirators. In December 2013, law enforcement officers seized four kilograms of cocaine in Erie, Pennsylvania connected to Montes Leon. According to information provided to the Court, on November 1, 2014, after Montes Leon traveled to Texas to coordinate another drug shipment, two of his drug couriers were transporting the cocaine when they were stopped by the Arkansas State Police while traveling east near milepost 253 on Interstate 40. Montes Leon arranged for those couriers to travel to the Houston, Texas area to pick up a load of cocaine destined for delivery to Erie and elsewhere. The Court was further advised that a search warrant was executed on the vehicle and that individually wrapped packages of cocaine were located in a hidden compartment in the vehicle. The packages were discovered to contain more than five kilograms of cocaine. Montes Leon then fled into Mexico. Law enforcement officers located Montes Leon in Mexico, and he was arrested and extradited back into the United States to face prosecution in Erie.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
United States Attorney Brady commended the U.S. Immigration and Customs Enforcement/Homeland Security Investigations; the Drug Enforcement Administration; the Pennsylvania State Police; U.S. Border Patrol; the Internal Revenue Service, Criminal Investigation; the Pennsylvania Office of Attorney General Organized Crime Section; the U.S. Postal Inspection Service; the U.S. Marshals Service; the Bureau of Alcohol Tobacco Firearms and Explosives; and the Arkansas State Police for the investigation leading to the successful prosecution of Leon.
Citizen of Ecuador Sentenced to Prison for Reentering U.S. after Being DeportedRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that RODOLFO BOLIVAR TEPAN, 38, a citizen of Ecuador last residing in Danbury, was sentenced today by U.S. District Judge Michael P. Shea in Hartford to 19 months of imprisonment for illegally reentering the U.S. after being deported.
According to court documents and statements made in court, in February 2016, TEPAN was sentenced in Danbury Superior Court to 10 years of incarceration, execution suspended, and five years of probation, for risk of injury to a minor. In October 2016, he was deported from the U.S. to Ecuador.
TEPAN illegally reentered the U.S. and, on May 12, 2017, was arrested by Danbury Police for failure to register as a sex offender. He was convicted of the offense and, on July 28, was sentenced in state court to 18 months of incarceration.
TEPAN has been detained since his arrest. On November 29, 2017, he pleaded guilty to one count of reentry of a removed alien.
Judge Shea ordered TEPAN’s federal sentence to be served concurrently with his state sentence.
This investigation was conducted by the U.S. Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations. The case was prosecuted by Assistant U.S. Attorney Deborah R. Slater.
Charlotte Man Is Sentenced to 12.5 Years in Prison for Transporting Child PornographyRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney R. Andrew Murray announced today that Charles Gary Humphrey, 42, of Charlotte, was sentenced to 151 months in prison for transporting child pornography. Chief U.S. District Judge Frank D. Whitney also ordered Humphrey to serve a lifetime of supervised release and to register as a sex offender after he is released from prison.
John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division joins U.S. Attorney Murray in making today’s announcement.
According filed court documents and today’s sentencing hearing, on October 9, 2015, law enforcement became aware that an individual, later identified as Humphrey, was using a peer-to-peer network to view and trade child pornography online. On January 25, 2016, Humphrey transported 55 files that contained a mix of child pornography and child erotica to an undercover FBI agent. Law enforcement executed a search warrant at Humphrey’s residence, seizing his computer. A forensic examination of the computer revealed that it contained more than 5,000 image images and videos of children engaging in sexually explicit conduct. Court records show that some of the images and videos contained identified victims of 25 different series of child pornography.
The FBI’s Crimes Against Children Squad investigated the case. Assistant U.S. Attorney Cortney Randall of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Charlotte Man Is Sentenced to 10 Years in Prison for Second Child Pornography ConvictionRead the Press Release
CHARLOTTE, N.C. – Clarence Robert Brown, Jr., 61, of Charlotte, was sentenced today to 10 years in prison for possessing videos depicting child pornography, announced R. Andrew Murray, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Max. O. Cogburn, Jr. also ordered Brown to serve 20 years of supervised release.
Brown pleaded guilty on September 25, 2017, to possessing child pornography on his computer. At the time, Brown was on supervised release for a 2005 federal conviction of possession and transportation of child pornography, for which he had served five years in prison. According to the terms of his supervised release for the prior conviction, Brown was prohibited from owning a computer, an internet hub, or any device that could access the internet, without obtaining approval from the U.S. Probation Office. On August 15, 2016, a probation officer discovered the computer and thumb drives at Brown’s home while conducting a routine visit.
According to court records, Brown admitted to purchasing the items so he could access the internet, even though he knew he could not “have the internet.” A forensic analysis of Brown’s computer revealed that it contained child pornography.
“This is Brown’s second federal conviction for possessing sexually explicit material depicting minors,” said U.S. Attorney Murray. “The online exploitation of children is a serious crime and the 10-year prison term imposed by the Court reflects that. The lengthy sentence also ensures that Brown can no longer harm and victimize innocent children.”
In making today’s announcement, U.S. Attorney Murray thanks the FBI and the U.S. Probation Office in the Western District of North Carolina for investigating the case.
Assistant U.S. Attorney Kimlani Ford of the U.S. Attorney’s Office in Charlotte prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse, launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Champaign Felon to Serve 35 Years in Federal Prison for Possessing Guns Related to Trafficking Crack CocaineRead the Press Release
URBANA, Ill. – Samuel J. Yarber, 45, of the 2000 block of Moreland Blvd., Champaign, Ill., has been ordered to serve 35 years in federal prison. On Feb. 23, 2018, Yarber was sentenced to 10 years for trafficking crack cocaine to be followed by the mandatory minimum 25 years for possession of firearms in furtherance of drug trafficking. Yarber was also ordered to remain on supervised release for eight years following his release from prison. Yarber has remained in the custody of the U.S. Marshals Service since his arrest on Dec. 14, 2016.
On Sept. 20, 2017, Yarber pled guilty to possession of crack cocaine with intent to distribute and to being a felon in possession of a firearm. Following a two-day trial in October 2017, the jury convicted Yarber of possession of firearms in furtherance of drug trafficking.
According to court documents, government evidence demonstrates that soon after Yarber was released from federal prison after serving a sentence for prior federal drug charges, Yarber spent several months distributing more than a kilogram of crack cocaine. On Dec. 14, 2016, Yarber was arrested and found in possession of crack cocaine, over an ounce of heroin, and other illegal drugs. In furtherance of this conduct, Yarber acquired and possessed three semi-automatic firearms, including a stolen pistol and a Tec-9 with an extended magazine. In addition, Yarber received firearms as payment for crack cocaine.
The charges were investigated by the Champaign Street Crimes Task Force, including the Champaign Police Department, Urbana Police Department. University of Illinois Police Department, and the Champaign County Sheriff’s Office. The case was prosecuted by Supervisory Assistant U.S. Attorney Eugene L. Miller.
California Man Sentenced to 20 Years in Prison for Sex TraffickingRead the Press Release
TUCSON, Ariz. – Last week, Derek Lamont Terry, 29, of Colton, Calif., was sentenced by U.S. District Judge Cindy K. Jorgenson to 240 months’ imprisonment. Terry previously pleaded guilty to sex trafficking of children and to two counts of transportation of minors with intent to engage in prostitution.
The investigation revealed that Terry was managing, coordinating, and receiving the proceeds from a sex trafficking operation. Between January and April 2016, Terry trafficked a minor female between Arizona and California. Advertisements for escort services for the victim were posted online in California and Arizona. The victim was rescued in April 2016 as a result of an undercover operation.
Shortly after, Terry recruited a second victim, another minor, bringing her from California through Arizona to Texas and back to Arizona. The investigation revealed advertisements for escort services for the victim posted in California, Arizona, and Texas. The victim was rescued on June 8, 2016, when she was discovered with Terry during a routine traffic stop by the Arizona Department of Public Safety near Benson, Ariz.
“I see you as a predator of these young teenaged girls,” commented Judge Jorgenson, as she pronounced the sentence.
Upon release from prison, Terry will be on lifetime supervised release. He will have to register as a sex offender.
The investigation in this case was a joint effort by the Federal Bureau of Investigation, the Arizona Department of Public Safety, and the Tempe Police Department, with the cooperation of Arizona State University. The prosecution was handled by Arturo Aguilar and Karen Rolley, Assistant U.S. Attorneys, District of Arizona, Tucson, and Margaret Perlmeter, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: 16-CR-1350-TUC-CJK-1; 16-CR-1375-PHX-CJK-1
RELEASE NUMBER: 2018-014_Terry
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
California Man Admits Cross-Country Conspiracy to Distribute over 141 Kilograms of Heroin and CocaineRead the Press Release
TRENTON, N.J. – A National City, California, man today pleaded guilty to his role in a conspiracy to transport 141 kilograms of narcotics from California to New Jersey, U.S. Attorney Craig Carpenito announced.
Hector Lucas-Ramos, 42, pleaded guilty before U.S. District Judge Brian R. Martinotti in Trenton federal court to an information charging him with conspiracy to possess with intent to distribute more than one kilogram of heroin and five kilograms of cocaine.
According to the documents filed in this case and statements made in court:
On Aug. 27, 2017, Lucas-Ramos was arrested in Essex County while he and Abraham Castro, 33, of San Diego, California, were driving a tractor trailer. After the tractor trailer was seen committing several traffic violations, law enforcement officers conducted a motor vehicle stop. During a subsequent search of the tractor trailer, law enforcement officers recovered five large duffle bags containing a total of 56 kilograms of heroin and 85 kilograms of cocaine.
Lucas-Ramos admitted today that he and Castro drove the tractor trailer from California to deliver the narcotics to other conspirators in New Jersey.
The conspiracy charge to which Lucas-Ramos pleaded guilty carries a mandatory minimum penalty of 10 years in prison, a maximum potential penalty of life in prison, and a $10 million fine. His sentencing is scheduled for June 27, 2018. Castro pleaded guilty to his role in the conspiracy on Nov. 14, 2017, and awaits sentencing.The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office Organized Crime Drug Enforcement Task Force (OCDETF)/Narcotics Unit.
U.S. Attorney Carpenito credited the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation.
This case is being conducted under the auspices of the OCDETF. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Defense counsel: Paula Notari Esq. New York
Brown Sworn in as United States AttorneyRead the Press Release
SHERMAN, Texas – Joseph D. Brown has taken the oath of office to become the 35th United States Attorney for the Eastern District of Texas. Brown was nominated by President Donald Trump on Nov. 2, 2017 and confirmed by the U.S. Senate on Feb. 15, 2018. He took the oath of office today from U.S. District Judge Amos Mazzant.
“It is a tremendous honor and privilege to join the United States Attorney’s Office,” said U.S. Attorney Brown. “I appreciate the President’s confidence and I look forward to making a difference in East Texas. Prosecution and law enforcement are in my blood, and helping to keep our communities safe is important work that I really love.”
Brown, 47, of Sherman, Texas, is the top-ranking federal law enforcement official in the Eastern District of Texas, which is comprised of 43 counties stretching from the Oklahoma border to the Gulf of Mexico. The district includes six fully staffed offices in Beaumont, Plano, Tyler, Sherman, Texarkana, and Lufkin with 93 employees, including 46 prosecutors. Brown has been the District Attorney for Grayson County, Texas, for the last 17 years. He was previously an attorney with the Dallas law firm of Cowles & Thompson, P.C., and had a private practice in Sherman.
Brown received his undergraduate degree from the University of Texas at Austin, his law degree from the Southern Methodist University School of Law, and is a member of the State Bar of Texas. Brown and his wife, Megan, have been married for over 20 years and are the proud parents of two daughters in high school.
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Bridgeport Man Sentenced to 14 Years in Federal Prison for Sex Trafficking of a MinorRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that DARRYL MORRIS, also known as “King Sincere,” 33, of Bridgeport, was sentenced today by U.S. District Judge Jeffrey A. Meyer in New Haven to 168 months of imprisonment, followed by five years of supervised release, for sex trafficking of a minor.
According to court documents and statements made in court, in November 2014, MORRIS met a 15-year-old girl who was working in prostitution in New York. Shortly thereafter, MORRIS brought the minor victim to his home in Bridgeport and arranged to have advertisements of her prostitution services posted on Backpage.com. The minor victim then began to see prostitution customers at MORRIS’s residence and gave the money she received to MORRIS. MORRIS also drove the minor victim to other locations in Connecticut, New York, New Jersey, Massachusetts and Washington, D.C., where she saw prostitution customers.
The minor victim worked as a prostitute for MORRIS from November 2014 to April 2015, and from November 2015 to May 2016, seeing approximately 10 customers per day.
MORRIS engaged in sexual activity with the minor victim, and began beating her a few weeks after she arrived in Bridgeport.
On May 2, 2016, investigators found the minor victim at a hotel in East Hartford after she contacted her mother who then called police. MORRIS had recently beaten the minor victim, who had visible scars and signs of physical abuse. She also had a tattoo on the back of her neck with the name “King Sin” underneath a large bar code.
MORRIS has been detained since his arrest on August 16, 2016. On May 12, 2017, he pleaded guilty to one count of sex trafficking of a minor.
Judge Meyer ordered MORRIS to pay the minor victim restitution of $100,000, which is a conservative estimate of how much money the minor victim earned in prostitution when she was with MORRIS.
This matter was investigated by the Federal Bureau of Investigation, Bridgeport Police Department, East Hartford Police Department, Stratford Police Department and New York Police Department. The case was prosecuted by Assistant U.S. Attorneys Sarala V. Nagala and Stephen B. Reynolds.
Brattleboro Memorial Hospital Pays $1,655,000 to the United States and State of Vermont to Resolve Allegations of False Claims Act ViolationsRead the Press Release
The United States Attorney’s Office for the District of Vermont announced today that Brattleboro Memorial Hospital, Inc. (BMH) has paid $1,655,000 to the United States and the State of Vermont to resolve civil claims that BMH violated the federal False Claims Act, 31 U.S.C. § 3729, and the Vermont False Claims Act, 32 V.S.A. § 630, by knowingly presenting, or causing to be presented, false claims for payment to Medicare and Medicaid. The money will be divided between the federal Medicare, federal Medicaid, and Vermont Medicaid programs to which BMH submitted the alleged false claims.
BMH is a not-for-profit community hospital located in southeastern Vermont whose services include out-patient laboratory work. On February 5, 2016, relator Amy Beth Main filed a complaint against BMH under the qui tam provisions of the federal False Claims Act. The United States Attorney’s Office for the District of Vermont intervened in that action on February 22, 2018 after having investigated and resolved the matter. The government contends that from approximately January 2012 through September 2014 BMH knowingly submitted or caused to be submitted a number of outpatient laboratory claims lacking documentation necessary to support reimbursement by Medicare and Medicaid.
“Health care providers doing business in Vermont need to have systems in place to ensure that the claims they submit for taxpayer reimbursement are valid under the governing rules and regulations,” said United States Attorney Christina E. Nolan. “We will hold accountable those who knowingly or recklessly bill the government for health care services without proper documentation to support their claims.”
The settlement announced today resolves the foregoing allegations without the need for further litigation. Pursuant to the settlement agreement, the settlement and payment are neither an admission of liability by BMH, nor a concession by the United States or State of Vermont that their claims are not well founded.
This matter was investigated by the United States Attorney’s Office for the District of Vermont, with assistance from the Office of the Inspector General of the Department of Health and Human Services, and by the Medicaid Fraud and Residential Abuse Unit of the Vermont Attorney General’s Office. Assistant United States Attorney Owen C.J. Foster handled the matter on behalf of the United States. Vermont Assistant Attorney General Steven J. Monde of the Medicaid Fraud and Residential Abuse Unit represented the State of Vermont. Norman Watts represented relator Amy Beth Main. Kevin Henry and Anne Cramer of the law firm Primmer Piper Eggelston & Cramer, PC represented BMH.
Beaufort Brothers Sentenced in Federal Carjacking CaseRead the Press Release
Columbia, South Carolina---- United States Attorney Beth Drake stated today that brothers Lorenzo Vince Green, age 29, and Javontay Jamal Green, age 25, of Beaufort, South Carolina, were sentenced in federal court in Charleston, South Carolina, for carjacking. Lorenzo Vince Green was also convicted of brandishing a firearm during the commission of a crime of violence. United States District Judge Richard M. Gergel, of Charleston, sentenced Lorenzo Vince Green to 130 months’ imprisonment, to be followed by 5 years of supervised release. His prior record includes prior felony convictions for burglary and armed robbery. Javontay Jamal Green was sentenced to 97 months’ imprisonment to be followed by 3 years of supervised release.
Evidence presented at the change of plea hearing established that on February 27, 2016, the Green brothers approached a handicapped and wheelchair bound man as he was attempting to enter his vehicle after leaving a restaurant in Beaufort. Lorenzo Vince Green then pointed a firearm at the victim before the brothers took the victim’s car keys and fled with his vehicle. Officers located the vehicle a short time later and arrested the brothers as they were attempting to flee through a wooded area.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Beaufort County Sheriff's Office and the Fourteenth Circuit Solicitor’s Office. Assistant United States Attorney Nick Bianchi of the Charleston office prosecuted the case.
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Bank Robber Sentenced to over 15 Years in PrisonRead the Press Release
HONOLULU – WALLACE J. SILVA, JR., 64, was sentenced on February 15, 2018, to 188 months imprisonment by United States District Judge Leslie E. Kobayashi for committing four bank robberies in Honolulu in December 2016. Silva pled guilty to those charges on April 19, 2017, before Judge Kobayashi.
Kenji M. Price, United States Attorney for the District of Hawaii, said that according to the information produced before the court, Silva, during December 2016, went on a crime spree where he committed ten bank robberies in Honolulu. Although the indictment charged only four of those ten bank robberies, and Silva pled guilty to only those four, as part of the plea agreement he admitted to committing all ten bank robberies and agreed to make restitution for all ten robberies. Silva robbed First Hawaiian Bank, Bank of Hawaii, and American Savings Bank of a total of about $32,000. The court ordered Silva to pay restitution in the amounts of $1,990 to First Hawaiian Bank, $8,480 to Bank of Hawaii, and $20,281 to American Savings Bank.
According to information produced to the court, Silva had two previous bank robbery convictions in two entirely separate cases. In 1997, Silva received a prison sentence of 112 months for one bank robbery. In 2005, five days after Silva completed that prison sentence and while he was on supervised release for it, he began committing more bank robberies. He later pleaded guilty to committing four bank robberies, and, on September 6, 2007, he was sentenced to a term of imprisonment of 151 more months in prison. The bank robberies for which Silva received his most recent sentence began within four months after his release in August 2016. Silva admitted during the sentencing hearing that he viewed committing a bank robbery as "going to work."
The Federal Bureau of Investigation, Honolulu Police Department, and United States Marshals Service conducted the investigation that resulted in these convictions. Assistant U.S. Attorney Marshall Silverberg handled the prosecution.
Bancroft Man Sentenced for Bank Robbery and Firearms ChargesRead the Press Release
United States Attorney Joseph P. Kelly announced that Jeffrey S. Bonneau, age 38, of Bancroft, Nebraska, was sentenced today by the Honorable Laurie Smith Camp having previously pled guilty to bank robbery. Bonneau was sentenced to 30 months’ imprisonment, 3 years’ supervised release and 150 hours of community service after previously pleading guilty to robbing the First Bank of Bancroft.
On April 20, 2017, at approximately 5:35 p.m., Bonneau rode a stolen ATV to the First Bank of Bancroft and parked it on the sidewalk. He was wearing a dark motorcycle helmet, camouflage clothing and gloves. He entered the bank and demanded money from the teller, He was given $6,745.00 and then fled the bank on the ATV. He was tracked to a grove area near 2345 R Road. At one point he told officers he had a gun and fired a shot in the air. After he fired the shot, Bonneau fled again through the grove and was ultimately arrested after he crashed the ATV. He was taken to Pender Hospital and it was found he had methamphetamine in his system. All of the money was recovered. There was no evidence he used or had the gun during the bank robbery.
Bonneau also pled guilty to possession of a firearm by a user of a controlled substance. He received the same sentence as for the robbery and the sentences were ordered to run concurrently.
The case was investigated by the Federal Bureau of Investigation, Bancroft Police Department, Cuming County Sheriff’s Department and Nebraska State Patrol.
Albuquerque Felon Pleads Guilty to Unlawfully Possessing Firearm and AmmunitionRead the Press Release
ALBUQUERQUE – Jonah Jeter, 24, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws by being a felon in possession of a firearm and ammunition.
The Bureau of Alcohol, Tobacco, Firearms and Explosives arrested Jeter in Feb. 2017, on a two-count indictment charging him with being a felon in possession of firearms and ammunition on Nov. 17, 2015, in Bernalillo County, N.M. Jeter was prohibited from possessing firearms or ammunition because he previously had been convicted of second-degree murder.
During today’s proceedings, Jeter pled guilty to being a felon in possession of a firearm and ammunition. In entering the guilty plea, Jeter, a previously convicted felon, admitted that he was unlawfully in possession of a firearm, which he threw into the yard of an Albuquerque residence on Nov. 17, 2015.
At sentencing, Jeter faces a maximum penalty of ten years in federal prison. Jeter remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and is being prosecuted by Assistant U.S. Attorneys David M. Walsh and Kimberly A. Brawley.
Aberdeen Man Sentenced to Five Years in Prison for Distribution of Child PornographyRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – United States District Judge Marvin J. Garbis sentenced Brian Kenneth McCort, age 41, of Aberdeen, Maryland today to five years in prison, followed by 25 years of supervised release, for distribution of child pornography. Judge Garbis ordered that, upon his release from prison, McCort must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Special Agent in Charge Robert E. Craig Jr. of the Defense Criminal Investigative Service – Mid Atlantic; and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, on three occasions between June and July 2015, using a peer-to-peer (“P2P”) file-sharing program connected to the internet, an investigator with the Maryland State Police (MSP) downloaded numerous files of child pornography from the McCort’s computer.
On September 2, 2015, a federal search warrant was executed at McCort’s residence and investigators seized McCort’s laptop that contained at least 26 images and 213 videos depicting minors engaging in sexually explicit conduct. Additional digital storage devices were recovered including a flash drive containing at least 152 images and 17 videos depicting minors engaging in sexually explicit conduct. Some of the victims were as young as 2 years old.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
Acting United States Attorney Stephen M. Schenning praised HSI Baltimore, DCIS, and the Maryland State Police for their work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Paul Budlow and Daniel Gardner who prosecuted the case.
Friday 23 February 2018
Williamsville Man Pleads Guilty to Child Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX #: (716) 551-3051BUFFALO, N.Y. - U.S. Attorney James P. Kennedy, Jr. announced today that Christopher Chase, 50, of Williamsville, NY, pleaded guilty to attempted receipt of child pornography, before U.S. District Judge Richard J. Arcara. The charge carries a minimum penalty of five years in prison, a maximum penalty of 20 years, and a $250,000 fine.
Assistant U.S. Attorney Jonathan P. Cantil, who is handling the case, stated that between March 10, 2017, and April 2, 2017, the defendant engaged in sexually explicit online conversations with an undercover law enforcement officer posing as a 15-year old girl.
Shortly after the conversation began, Chase asked the undercover officer “Well how old are you?” The undercover officer replied, “Well I’m almost 16.” After discovering the undercover officer was a minor, the defendant requested sexually explicit images and pictures. Chase then requested to meet the person he believed was a minor female to engage in sexual activity. On April 2, 2017, the defendant arrived at a retail store parking lot believing he was going to meet and have sexual intercourse with the minor. He was arrested. Chase brought with him condoms, sexual lubricant and a sexual toy.
The plea is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent-in-Charge Kevin Kelly.
Sentencing is scheduled for June 6, 2018 at 12:30 p.m. before Judge Arcara.
West Tennessee Man is Sentenced to 25 Years for Distributing Heroin Resulting in Fatal OverdoseRead the Press Release
Memphis, TN – A West Tennessee man has been sentenced to 300 months in federal prison for distributing heroin resulting in a fatal overdose. D. Michael Dunavant, United States Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on February 16, 2018 Marvin "Pookie" Foster, 51, was sentenced to 25 years for distributing heroin, which resulted in the death of Cody Tetleton. Tetleton had a substance abuse history, but, like other similar victims, had completed two rehabilitation programs, being released from treatment approximately two weeks prior to his death.
United States Attorney D. Michael Dunavant said: "Our state and our district are suffering from the heroin and opioid epidemic, causing increases in drug trafficking, violence, addiction, and overdose deaths that are tearing our communities apart. The U.S. Attorney’s Office has developed a district-specific strategy to prioritize cases involving heroin distribution causing overdose deaths, and this case demonstrates the significant penalty that we will use to hold offenders accountable."
According to phone records, on July 1, 2014, Tetleton contacted Marvin Foster for the purpose of purchasing heroin. Tetleton drove to Foster’s residence in Halls, Tennessee to make the purchase. Foster sold the victim heroin and some hydrocodone pills. The victim used the heroin while seated in his vehicle in Foster’s driveway. Witnesses gave statements that Foster called them regarding the victim having overdose symptoms while still at his house. Some of those witnesses advised Foster to call 911 and to get the victim medical treatment.
Instead, Foster drove Tetleton’s truck to a remote area and left the victim in his truck with no medical assistance. On July 2, 2014, a farmer found the victim in the back seat of his own truck. A medical examiner revealed the cause of death as heroin toxicity. Furthermore, the victim’s blood was analyzed by a forensic toxicology lab and the blood showed a lethal amount of heroin was present in the blood.
Kristie Ward Thompson was indicted on October 2, 2017, in Lauderdale County, Tennessee, for facilitation of second-degree murder arising from this same incident.
Eddie Tetleton, Cody’s father, prepared a statement from the family, which the AUSA read into the record on their behalf. The following is an excerpt from that statement: "If you watch the national news, read the local papers and certainly look at social media, you will see families across the country, whose stories (their testimonies) are hauntingly similar to ours. The question that haunts families across the country is, HOW COULD THIS HAPPEN. The sentencing today will not answer a question that we have awaken us every night. But I feel most families realize we will not know this answer in this life. Our son paid the ultimate price for the demons that crept into his life. Our family too was sentenced on the tragic day of his death to life, by losing a very special young man. We do feel that Marvin Foster should also be sentenced for the part he played in the death of our son. And just maybe if it is just one at a time, the Justice System can remove those that prey on our SONS and DAUGHTERS for MONEY!!! And maybe no other family will wake during the night searching for answers that are not there….because this man contributed to their BROKEN WORLD!"
On February 20, 2018, U.S. District Judge John T. Fowlkes Jr., sentenced Foster to serve 300 months imprisonment followed by 3 years supervised release.
This case was investigated by the 25th Judicial Drug Task Force and Drug Enforcement Administration.
Assistant U.S. Attorney Beth C. Boswell prosecuted this case on the government’s behalf.
West Palm Beach Return Preparer Convicted of Filing False Tax Returns with the IRSRead the Press Release
Manuel Antonio Severino, 44, of West Palm Beach, was found guilty by a jury of thirteen counts of aiding and assisting in the preparation of false tax returns, in violation of Title 26, United States Code, Section 7206(2), two counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and two counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A(a)(1).
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
According to the evidence presented at trial, Severino operated a purported tax preparation business from his home in West Palm Beach. He unjustly enriched himself and others by submitting false individual tax returns to the IRS on behalf of other individuals claiming false and fraudulent credits and deductions. Severino falsely reported that the taxpayers were entitled to receive a tax credit under the American Opportunity Credit, when the defendant knew that the taxpayers did not have qualified education expenses and were not entitled to receive this credit. Without his clients’ knowledge or consent, Severino diverted portions of his clients’ tax refunds to bank accounts that Severino controlled. Over the three years that Severino engaged in this fraudulent tax return business, he sought over $1.6 million in refunds from the IRS on behalf of himself and his clients, and diverted tens of thousands of dollars of IRS tax refunds into his own bank accounts.
Sentencing is scheduled for May 14, 2018, before Senior U.S. District Judge Paul C. Huck. Severino faces a maximum possible statutory sentence of three years in prison for each count of aiding in the preparation of false tax returns, 20 years in prison for each count of wire fraud, and a mandatory sentence of two years in prison for each count of aggravated identity theft.
Mr. Greenberg commended the investigative efforts of IRS-CI. This case is being prosecuted by Assistant U.S. Attorneys Daniel J. Marcet and Lisa Miller.
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.
United States Files False Claims Act Complaint Against Compounding Pharmacy, Private Equity Firm, and Two Pharmacy Executives Alleging Payment of KickbacksRead the Press Release
The United States has filed a complaint in intervention against Diabetic Care Rx LLC d/b/a Patient Care America (PCA), a compounding pharmacy located in Pompano Beach, Florida, alleging that the pharmacy paid illegal kickbacks to induce prescriptions for compounded drugs reimbursed by TRICARE, the Department of Justice announced today. The government has also brought claims against Patrick Smith and Matthew Smith, two pharmacy executives, and Riordan, Lewis & Haden Inc. (RLH), a private equity firm based in Los Angeles, California, which manages both the pharmacy and the private equity fund that owns the pharmacy, for their involvement in the alleged kickback scheme.
TRICARE is a federally-funded health care program for military personnel and their families. The government alleges that the Defendants paid kickbacks to marketing companies to target TRICARE beneficiaries for prescriptions for compounded pain creams, scar creams, and vitamins, without regard to the patients’ medical needs. According to the complaint, the compound formulas were manipulated by the Defendants and the marketers to ensure the highest possible reimbursement from TRICARE. The Defendants and marketers allegedly paid telemedicine doctors to prescribe the creams and vitamins without seeing the patients, and sometimes paid the patients themselves to accept the prescriptions. The scheme generated tens of millions of dollars in reimbursements from TRICARE in a matter of months, according to the complaint, which alleges that the Defendants and marketers split the profits from the scheme.
“The Department of Justice is determined to hold accountable health care providers that improperly use taxpayer funded health care programs to enrich themselves,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “Kickback schemes corrupt the health care system and damage the public trust.”
“Providers and marketers that engage in kickback schemes drive up the cost of health care because they focus on their own bottom line instead of what is in the best interest of patients,” said Executive Assistant Randy Hummel of the United States Attorney’s Office for the Southern District of Florida. “We will hold pharmacies, and those companies that manage them, responsible for using kickbacks to line their pockets at the expense of taxpayers and federal health care beneficiaries.”
“The Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the military health care program that provides critical medical care and services to Department of Defense beneficiaries,” said Special Agent in Charge John F. Khin, of the Southeast Field Office. “In partnership with DOJ and other law enforcement agencies, DCIS continues to aggressively investigate fraud and corruption to preserve and recover precious taxpayer dollars to best serve the needs of our warfighters, their family members, and military retirees.”
The lawsuit, United States ex rel. Medrano and Lopez v. Diabetic Care Rx, LLC dba Patient Care America, et al., No. 15-CV-62617 (S.D. Fla.), was originally filed in the U.S. District Court for the Southern District of Florida by Marisela Medrano and Ada Lopez, two former employees of PCA. The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue for false claims against of the United States and to receive a share of any recovery. The Act permits the United States to intervene in such lawsuits, as the United States has done in this case.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Florida, the Defense Criminal Investigative Service, the U.S. Food and Drug Administration’s Office of Criminal Investigations, and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.
The claims asserted against the defendants are allegations only; there has been no determination of liability.
United States Files False Claims Act Complaint Against Compounding Pharmacy, Private Equity Firm, and Two Pharmacy Executives Alleging Payment of KickbacksRead the Press Release
The United States has filed a complaint in intervention against Diabetic Care Rx LLC d/b/a Patient Care America (PCA), a compounding pharmacy located in Pompano Beach, Florida, alleging that the pharmacy paid illegal kickbacks to induce prescriptions for compounded drugs reimbursed by TRICARE, the Department of Justice announced today. The government has also brought claims against Patrick Smith and Matthew Smith, two pharmacy executives, and Riordan, Lewis & Haden Inc. (RLH), a private equity firm based in Los Angeles, California, which manages both the pharmacy and the private equity fund that owns the pharmacy, for their involvement in the alleged kickback scheme.
TRICARE is a federally-funded health care program for military personnel and their families. The government alleges that the Defendants paid kickbacks to marketing companies to target TRICARE beneficiaries for prescriptions for compounded pain creams, scar creams, and vitamins, without regard to the patients’ medical needs. According to the complaint, the compound formulas were manipulated by the Defendants and the marketers to ensure the highest possible reimbursement from TRICARE. The Defendants and marketers allegedly paid telemedicine doctors to prescribe the creams and vitamins without seeing the patients, and sometimes paid the patients themselves to accept the prescriptions. The scheme generated tens of millions of dollars in reimbursements from TRICARE in a matter of months, according to the complaint, which alleges that the Defendants and marketers split the profits from the scheme.
“The Department of Justice is determined to hold accountable health care providers that improperly use taxpayer funded health care programs to enrich themselves,” said Acting Assistant Attorney General for the Justice Department’s Civil Division Chad A. Readler. “Kickback schemes corrupt the health care system and damage the public trust.”
“Providers and marketers that engage in kickback schemes drive up the cost of health care because they focus on their own bottom line instead of what is in the best interest of patients,” said Executive Assistant Randy Hummel of the United States Attorney’s Office for the Southern District of Florida. “We will hold pharmacies, and those companies that manage them, responsible for using kickbacks to line their pockets at the expense of taxpayers and federal health care beneficiaries.”
“The Defense Criminal Investigative Service (DCIS) is committed to protecting the integrity of TRICARE, the military health care program that provides critical medical care and services to Department of Defense beneficiaries,” said Special Agent in Charge John F. Khin, of the Southeast Field Office. “In partnership with DOJ and other law enforcement agencies, DCIS continues to aggressively investigate fraud and corruption to preserve and recover precious taxpayer dollars to best serve the needs of our warfighters, their family members, and military retirees.”
The lawsuit, United States ex rel. Medrano and Lopez v. Diabetic Care Rx, LLC dba Patient Care America, et al., No. 15-CV-62617 (S.D. Fla.), was originally filed in the U.S. District Court for the Southern District of Florida by Marisela Medrano and Ada Lopez, two former employees of PCA. The lawsuit was filed under the qui tam or whistleblower provisions of the False Claims Act, which permit private parties to sue for false claims against of the United States and to receive a share of any recovery. The Act permits the United States to intervene in such lawsuits, as the United States has done in this case.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the Southern District of Florida, the Defense Criminal Investigative Service, the U.S. Food and Drug Administration’s Office of Criminal Investigations, and the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.
The claims asserted against the defendants are allegations only; there has been no determination of liability.
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.
United States Attorney Assumes OfficeRead the Press Release
Brandon J. Fremin has taken the oath of office and begun serving as the United States Attorney for the Middle District of Louisiana. Mr. Fremin was nominated to serve as United States Attorney by President Trump last Fall and confirmed by the United States Senate last week.
Mr. Fremin is a career prosecutor who has served the community for years. Prior to taking office, Mr. Fremin served as Director of the Criminal Division for the Office of the Louisiana Attorney General. Mr. Fremin previously served for more than 11 years as an Assistant District Attorney in the Office of the District Attorney for the 19th Judicial District of Louisiana. Mr. Fremin also previously served as an Assistant United States Attorney in Baton Rouge, where he prosecuted drug trafficking crimes, crimes of violence, and immigration matters. Mr. Fremin is a veteran of the United States Marine Corps, having enlisted in the Marines in 1994 and serving until 2002, when he was honorably discharged as a platoon sergeant. Mr. Fremin received his B.A., cum laude, from Southeastern Louisiana University, and his J.D. from the Paul M. Hebert Law Center at Louisiana State University.
United States Attorney Brandon J. Fremin stated, “The Middle District has an office of exceptionally talented people and I look forward to working with them and our federal, state, and local partners, and the community, in order to make Louisiana a better place to live and raise our families.”
Undocumented Guatemalan Sentenced for Paying Smugglers to Bring Unaccompanied Minor from Guatemala to the United StatesRead the Press Release
Jacksonville, Florida – U.S. District Judge Timothy J. Corrigan today sentenced Miguel Pacheco-Lopez (35), an undocumented alien from Guatemala, to more than seven months in federal prison for sending money to Guatemala to help pay smugglers to bring an unaccompanied minor to the United States. He pleaded guilty on November 21, 2017.
According to court documents, on June 29, 2017, a U.S. Border Patrol agent encountered an unaccompanied 16-year-old Guatemalan boy in the Rio Grande Valley in Texas. During an interview, the boy said that he had entered the country illegally and that he intended to live in Jacksonville with a brother-in-law named Miguel Pacheco-Lopez.
As part of an initiative to investigate those who smuggle unaccompanied children into the United States, agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations located Pacheco-Lopez in Jacksonville on July 6, 2017. Pacheco-Lopez admitted that he was illegally present in the United States and was then administratively arrested for violating U.S. immigration laws.
During later interviews, Pacheco-Lopez stated that he had wired 20,000 Quetzals (Guatemala currency) to help pay smugglers to bring the boy to the United States. He said that his father-in-law (the boy’s father) had borrowed an additional 25,000 Quetzals to pay the smugglers. The total smuggling fee of 45,000 Quetzals is equivalent to approximately $6,100.
“This criminal jeopardized his own family members by paying human smugglers,” said HSI Tampa Special Agent in Charge James C. Spero. “He endangered a child’s life with a dangerous and unlawful journey into the United States, and now he will be held accountable.”
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Arnold B. Corsmeier.
Two San Gabriel Valley Men Arrested in Scheme to Defraud U.S. by Avoiding Payment of Federal Excise Taxes on CigarettesRead the Press Release
LOS ANGELES – Two men have been arrested on charges of scheming to avoid the payment of federal excise taxes on duty-free cigarettes that should have been sent abroad, but instead were diverted to local retail outlets.
Yong “David” Lu, 54, of Arcadia, and Wenzhu Guo, also 54, of Monterey Park, were arrested Thursday morning by federal authorities.
Lu and Guo, both Chinese nationals, were named in a one-count indictment returned by a federal grand jury on Wednesday. The indictment charges both men with conspiring to defraud the United States, with Lu allegedly responsible for the diversion of duty-free cigarettes and Guo allegedly acting as his primary distributor of the untaxed cigarettes.
At their arraignments Thursday afternoon, Lu and Guo entered not guilty pleas, were ordered freed on bond, and were ordered to stand trial on April 10.
The arrests in this case are part of a wider investigation into cigarette diversion schemes designed to avoid the payment of excise taxes. In addition to the arrests, federal authorities on Thursday executed 10 search warrants on homes, storage lockers and vehicles in San Gabriel, Arcadia, Rosemead and Monterey Park. As a result of the searches, special agents with U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI); IRS Criminal Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); and the Alcohol & Tobacco Tax & Trade Bureau (TTB) seized more than 2 million contraband cigarettes and more than $45,000 in cash.
The case against Lu and Guo focuses on the diversion of untaxed cigarettes from tobacco export warehouses and foreign trade zones (FTZ), and the other two investigations that led to some of Thursday’s searches concern cigarettes being shipped through the mails from China.
Lu operated Great Pacific Coast Corporation, which provided supplies to cargo vessels docked in the Port of Los Angeles, including consumable goods, such as export-only cigarettes, for the personal use of the ship’s crew. Over the past two years, according to the indictment, Lu “made numerous purchases of export-only cigarettes” from two tobacco export warehouses that stored untaxed tobacco products pending their shipment outside the United States. When foreign cigarettes are imported into the United States and warehoused in a tobacco export warehouse or FTZ, the government does not impose excise taxes if they are to be exported or consumed outside the U.S.
Lu purchased the cigarettes from the warehouses under the pretense that they would be exported on ships docked in the port. However, the indictment alleges, the cigarettes were not delivered to cargo vessels, but were instead diverted into the local retail market.
After obtaining the cigarettes from the warehouses, Lu or his associates delivered some or all of the cigarettes to Guo, who in turn distributed the cigarettes, the indictment alleges.
Lu and Guo are not the first to be prosecuted for illegally diverting duty-free cigarettes into the Los Angeles retail market. Un Hag Baeg, a resident of Korea who at the time of the offense resided in Marina Del Rey, pleaded guilty in October to conspiring to defraud the Unites States out of more than $7 million in federal excise taxes by diverting tens of millions of export-only cigarettes to the local retail market. Baeg is scheduled to be sentenced on April 16.
The United States imposes a federal excise tax on all cigarettes meant for consumption within the United States of $50.33 per 1000 cigarettes sticks. TTB is responsible for administering and enforcing federal excise tax laws pertaining to tobacco products, and U.S. Customs and Border Protection Agency is responsible for the assessment and collection of duties, taxes and fees on merchandise imported into the United States.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty in court.
If they were to be convicted of the conspiracy count alleged in the indictment, Lu and Guo each would face a statutory maximum sentence of five years in federal prison.
The case against Lu and Guo is being investigated by HSI and IRS-CI, with assistance from ATF and TTB.
The case is being prosecuted by Assistant United States Attorneys James C. Hughes and Valerie Makarewicz of the Tax Division.
Two New Mexico Men Facing Federal Charges Arising from Social Media School Shooting ThreatsRead the Press Release
ALBUQUERQUE – The FBI has filed federal charges against two New Mexico men for using social media platforms to post school shootings threats, announced U.S. Attorney John C. Anderson and Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. The criminal charges arise from tips received by the FBI and its law enforcement partners since last week’s school shooting in Parkland, Fla.
“The Department of Justice will investigate and prosecute school shooting threats on social media platforms, which have recently spread like wildfire in the District of New Mexico in the wake of the Parkland shootings and other tragedies, causing fear and concern in our communities,” said U.S. Attorney Anderson. “When the lives of our children potentially are at stake, we will take action. These serious criminal charges should motivate everyone – adults and minors alike – to consider the consequences of posting threatening messages on social media platforms, and to report this unlawful behavior where it occurs.”
“The FBI has zero tolerance for anyone who threatens to do harm to others,” said FBI Special Agent in Charge Wade. “We hope these charges send a strong message that the FBI, working in conjunction with our state and local partners, will investigate these tips thoroughly so we can keep our communities safe.”
The FBI arrested Sebastian Jarvison, 25, of Brimhall, N.M., yesterday afternoon on a criminal complaint charging him with transmitting in interstate commerce communications containing threats to injure others in McKinley County, N.M., on Feb. 14, 2018. The complaint alleges that on Feb. 16, 2018, the FBI received a tip regarding school shooting and bomb threats allegedly posted by Jarvison on Facebook. Jarvison’s Facebook posts allegedly included threats to “go shoot a school,” “put a bomb on a plane,” and “put a bomb on a plane and shoot up a school.”
This morning, Jarvison made his initial appearance in federal court in Albuquerque, N.M. Jarvison remains in federal custody pending a preliminary hearing and a detention hearing, both of which are scheduled for Feb. 26, 2018.
A separate criminal complaint, filed on Feb. 22, 2018, charges John Russell Williams, 19, of Farmington, N.M., with a similar offense. The complaint alleges that Williams committed the offense in San Juan County, N.M., on Feb. 15, 2018, by replying to a school shooting threat on Facebook with a slang term that means “let’s do it.” According to the complaint, on Feb. 15, 2018, law enforcement authorities received a tip about a Facebook post allegedly made by a juvenile containing the following statement: “only 2 months into 2018 and already we got 29 school shootings. F**k it my turn.” Williams allegedly replied to the post with the term “Haha esketit” – which means “let’s do it” or “let’s get it” – and a laughing emoji.
Williams was arrested on a related state charge on Feb. 16, 2018, and is currently in state custody on that charge and other pending state charges. Williams will be transferred to federal custody to face the federal charge in the criminal complaint.
If convicted, Jarvison and Williams each face a statutory maximum penalty of five years of imprisonment and a $250,000 fine. Charges in criminal complaints are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt in a court of law.
These cases were investigated by the Gallup, Farmington and Albuquerque offices of the FBI with assistance from the San Juan County Sheriff’s Office, Farmington Police Department, and Bloomfield Police Department. Assistant U.S. Attorney Niki Tapia-Brito is prosecuting the cases.
Jarvison Complaint Williams ComplaintTwo New Jersey Men Charged with Robbing Killingworth Bank, Attempting to Rob Branford BankRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that a federal grand jury in New Haven returned an indictment today charging LAVON YOUNG, 38, and DAVID C. EARL, 25, both of Union City, New Jersey, with bank robbery offenses.
According to the indictment, on January 27, 2018, YOUNG and EARL first attempted to rob a Key Bank branch in Branford, and then robbed a TD Bank branch on Route 81 in Killingworth of approximately $9,754.
YOUNG and EARL were arrested in East Haven on January 27 and were subsequently charged with multiple state offenses. They have been detained since their arrests.
The indictment charges YOUNG and EARL with one count of attempted bank robbery and one count of bank robbery. Each charge carries a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Connecticut State Police, Branford Police Department and East Haven Police Department. The case is being prosecuted by Assistant U.S. Attorneys Henry Kopel and Douglas Morabito.
Twenty Charged in Southern District of Florida as Part of Largest Elder Fraud Sweep in Department of Justice HistoryRead the Press Release
Attorney General Jeff Sessions and U.S. Attorney Benjamin G. Greenberg for the Southern District of Florida announced the largest ever coordinated sweep of elder fraud cases in the Department of Justice’s history involving more than 250 charged defendants around the globe who victimized more than a million Americans, most of whom were elderly. The cases include criminal, civil, and forfeiture actions across 50 federal districts. Of the defendants, 200 were charged criminally. In each case, offenders engaged in financial schemes that targeted or largely affected seniors. In total, the charged elder fraud schemes caused losses of more than half a billion dollars. In the Southern District of Florida a total of 20 defendants were charged with offenses relating to their participation in various fraud schemes involving over $103 million.
Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service (USPIS), Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Brian Swain, Special Agent in Charge, U.S. Secret Service (USSS), and Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, join in the announcement.
The actions charged a variety of fraud schemes, ranging from mass mailing, telemarketing and investment frauds to individual incidences of identity theft and theft by guardians. A number of cases involved transnational criminal organizations that defrauded hundreds of thousands of elderly victims, while others involved a single relative or fiduciary who took advantage of an individual victim. The schemes charged in these cases caused losses to more than a million victims.
“The Justice Department and its partners are taking unprecedented, coordinated action to protect elderly Americans from financial threats, both foreign and domestic,” said Attorney General Sessions. “Today’s actions send a clear message: we will hold perpetrators of elder fraud schemes accountable wherever they are. When criminals steal the hard-earned life savings of older Americans, we will respond with all the tools at the Department’s disposal – criminal prosecutions to punish offenders, civil injunctions to shut the schemes down, and asset forfeiture to take back ill-gotten gains. Today is only the beginning. I have directed Department prosecutors to coordinate with both domestic law enforcement partners and foreign counterparts to stop these criminals from exploiting our seniors.”
“We cannot allow our elderly and vulnerable citizens to continue to be the target of fraud schemes. For that reason, the U.S Attorney’s Office and its law enforcement partners – criminal and civil – have joined forces to combat Florida-based fraud schemes victimizing the elderly in our community and throughout our nation,” stated U.S. Attorney Benjamin G. Greenberg. “We will bring to justice those who target the elderly and defraud them out of their life savings.”
“The U.S. Postal Inspection Service will continue to work tirelessly with our partners both in the U.S. and abroad, to ensure that the Postal Service is not used to perpetuate predatory schemes that target the elderly,” said Antonio J. Gomez, Inspector in Charge, U.S. Postal Inspection Service, Miami Division. “Today’s operation is a great example of how law enforcement from all over the world is working together to that end.”
“We will not allow criminals to target some of the most vulnerable members of our community and take away what they have worked a life time for,” said Mark Selby, Special Agent in Charge of HSI in Miami. “HSI is committed to working with local, state, federal and international law enforcement partners to bring these individuals to justice.”
“The U.S. Secret Service remains committed to investigating cyber based criminal schemes,” said Special Agent in Charge Brian Swain, U.S. Secret Service Miami Field Office.
“Unfortunately, elderly citizens are sometimes vulnerable to financial exploitation by unscrupulous fraudsters bent on making ill-gotten gains,” said Robert F. Lasky, Special Agent in Charge, FBI Miami. “In this case, the alleged swindlers used a variety of scams to collect and then launder over $94 million. The FBI and our partners are continuously adapting our investigative techniques to bring to justice offenders who take advantage of the elderly.”
The following cases from the Southern District of Florida were charged between February 2017 and February 22, 2018:
LOTTERY FRAUD
1. United States v. Claude Shaw, Case No 17-60056-CR-Dimitrouleas
On February 21, 2017, Claude Shaw, 50, of Miramar, was charged with two counts of mail fraud and 10 counts of wire fraud in connection with a fraudulent lottery scheme tied to Jamaica. Shaw pled guilty to one count of mail fraud and on June 2, 2017, was sentenced to 36 months imprisonment, to be followed by three years supervised release. Shaw was also ordered to pay $128,440 in restitution.
According to court documents, between September 2013 and August 2015, Shaw participated in a scheme where victims throughout the United States received telephone calls that falsely informed such victims they had won over $1 million in a lottery, which required such victims to pay money in advance in order to secure their prize. The victims were instructed on how, and to whom, to send their money, which included an instruction to send their money to Shaw. Victims sent over $100,000 to Shaw, who then forwarded a portion of the money to Jamaica. Victims never received any lottery winnings.
Mr. Greenberg commended the investigative efforts of the USPIS. The case was prosecuted by Trial Attorney Arturo DeCastro with the Consumer Protection Branch of the Department of Justice Civil Division.
2. United States v. Marvin Damian Coote, Case No. 17-14041-CR-Marra
On May 30, 2017, Marvin Damian Coote, 36, of Fort Pierce, was indicted on conspiracy to commit mail and wire fraud and wire fraud among other charges. Coote pled guilty and was sentenced on December 1, 2017, to 41 months imprisonment, to be followed by three years supervised release. Coote was ordered to pay $225,995.68 in restitution.
According to court documents, between March 2011 and May 1, 2017, Coote participated in a mail and wire fraud conspiracy in St. Lucie County in which, like the Shaw matter described above, co-conspirators telephoned victims to notify them that they had won a lottery that required such victims to send payment in advance in order to secure their prize. Victims paid fees of several hundred to several thousand dollars in order to collect their purported lottery winnings. The conspirators kept the victims’ money without paying any lottery and sweepstakes winnings. Victims targeted in this scheme were elderly individuals, typically over the age of 70. The financial transactions that were part of the scheme included the use of United States Postal Service, MoneyGram, Western Union and Green Dot cards.
Mr. Greenberg commended the investigative efforts of USPIS, ICE-HSI and the St. Lucie County Sheriff’s Office. This case was prosecuted by Assistant United States Attorneys Marton Gyires and Stephen Carlton.
3. United States v. Christian Villalobos Hernandez, Case No. 18-20052-CR-Martinez
Christian Eduardo Villalobos Hernandez, 35, of San Jose, Costa Rica, was indicted on January 25, 2018, for conspiracy to commit mail fraud, mail fraud, conspiracy to commit money laundering, international money laundering and money laundering. According to the Indictment, starting in or around February 2015 through in or around August 2017, several Costa Rican and Venezuelan citizens, including Hernandez, Andres Pacheco Fonseca (“Fonseca”) and other known co-conspirators, devised and implemented a scheme to unlawfully enrich themselves by contacting victims by telephone, letter or fax and falsely informing them that they had won millions of dollars in a lottery or sweepstake.
As alleged, the conspirators persuaded victims through false and fraudulent representations that in order to collect their winnings they had to send by mail and wire transfer large amounts of cash and money orders to addresses in Miami, Costa Rica, and elsewhere, and to have those same funds deposited in corporate and personal bank accounts the conspirators controlled here in the United States. Within days, the victims’ funds were sent by wire transfer from the corporate and personal accounts located in the United States to corporate and personal bank accounts in Costa Rica that were controlled by Hernandez, Fonseca, their co-conspirators, and their family and friends. In total, approximately $9 million was sent by wire transfer from their accounts in the United States to corporate and personal bank accounts they controlled in Costa Rica.
Mr. Greenberg commends the investigative efforts of USPIS. This case is being prosecuted by Assistant United States Attorney Maurice Johnson.
GRANDPARENT SCAM
4. United States v. Tiffany Strobl, Case No. 17-60128-CR-Dimitrouleas
Tiffany Strobl, 38, of Ohio, was charged for bank fraud, wire fraud, use of an unauthorized access device and identity theft in connection with a scheme to defraud an elderly victim. According to court documents, Strobl used a stolen identity to open a bank account at TD Bank and then deposited $5,000 into that account. Those funds came from an 81 year-old woman living in Iowa who Strobl contacted in February 2017. Strobl informed the victim that her grandson was in jail and requested the victim to wire $5,000 to a TD Bank account so that her grandson could post bond. The victim complied and later learned that her grandson had never been arrested and had not called her for money.
Strobl pled guilty in October 2017, and was sentenced to 24 months imprisonment, to be followed by one year supervised release and ordered to pay $9,548.25 in restitution.
Mr. Greenberg commended the investigative efforts of the USSS. This case was prosecuted by Assistant United States Attorney Anita White.
ADVERTISING SCAM
5. United States v. Tiffany Strobl, Case No. 17-60066-CR-Dimitrouleas
In March 2017, Tiffany Strobl, 38, of Ohio, was charged with possession of false identification documents and bank fraud. In mid-February 2017, a victim saw an advertisement for a mobile home on Craigslist that was purportedly being sold by an individual out of Salt Lake City, Utah. The victim communicated with the seller via email and text message and was to pay $6,800 for the mobile home through a website called Ebay Motors. The victim initiated a wire transfer for the purchase of the mobile home through a link on Ebay Motors that was linked to a BB&T Bank account number. Strobl had opened the BB&T account using false and fraudulent identification documents. Strobl attempted to withdraw the funds deposited into the account by the victim who, when contacted by the bank, instructed the bank to stop the transaction because he had subsequently seen on Craigslist the same mobile home for sale in Kansas. A search of Strobl’s book bag incident to arrest, revealed six driver licenses, each bearing the same photograph of Strobl, but with different names, dates of birth, and license numbers.
After a guilty plea, Strobl was sentenced in June 2017, to five months imprisonment, to be followed by three years supervised release.
Mr. Greenberg commended the investigative efforts of USSS. The case was prosecuted by Assistant United States Attorney Anita White.
MONEY LAUNDERING OF SCAM PROCEEDS
6. United States v. Roda Taher, et al, Case No. 17-60223-CR-Ungaro
United States v. Luis Pujols, Case No. 17-20702-CR-MartinezOne indictment charged Roda Taher, 38, of Beirut, Lebanon, Geanis Gonzalez, 31, of Peyton Colorado, Alfredo Tovar, 36, of Miami Gardens, Quiana Velasco, 35, of Miami, Jose Daniel Estrella, 38, of Hallandale, Pedro Reyes, 38, of Hialeah, Robinson Castillo, 32, of Pembroke Pines and Jamie Vices Castillo, 41, of Pembroke Pines, with conspiracy to commit money laundering, conspiracy to commit bank fraud, money laundering, and conducting transactions in criminally derived property. Hanan Jaafar, 26, of Beirut Lebanon, is also charged with conspiracy to commit money laundering and conspiracy to commit bank fraud.
According to the Indictment, from 2008 to the present, Taher managed and supervised a criminal organization engaged in money laundering and transactions in criminally derived property that received approximately $94 million in fraudulent proceeds. The organization utilized bank accounts opened in the names of shell corporations to receive the proceed of various fraudulent schemes, including romance frauds, email hacking schemes, inheritance and lottery scams that victimized individuals, including elderly individuals, as well as corporations. Taher would recruit individuals to act as “money mules,” establishing the shell corporations in the money mules’ names. The defendants would then have the money mules open bank accounts throughout South Florida in the names of their shell corporations, instructing the mules to falsely represent to the banks that the shell corporations were legitimate businesses engaged in the import, export, or sale of various goods. Once the bank accounts received money wired from a fraud victim, the defendant would instruct the money mules to wire money to other accounts overseas.
A second indictment charged Luis Angel de Jesus Alfonseca Pujols, 24, of Sunrise, Gary Alberto Camillo, 26, of Pembroke Pines, Jean-Phillipe Etienne, 25, of Pembroke Pines, Randy Eliessel Santos, 29, of Hollywood, and Cosme Daniel Enrique Vasquez, 36, of Miramar, with conspiracy to commit bank fraud and wire fraud, international money laundering, money laundering and bank fraud. Karina Marie Ocasio, 24, of Weston, is also charged with conspiracy to commit money laundering, conspiracy to commit bank fraud and wire fraud, money laundering, and bank fraud.
Alberto Camillo, Jean-Phillipe Etienne and Randy Eliessel Santos have pled guilty.
Mr. Greenberg commends the investigative efforts of the FBI, USSS and ICE-HSI. This case is being prosecuted by Assistant United States Attorneys Jared Strauss, Michael Walleisa and Dwayne Williams.
A criminal complaint, information or indictment is a charging instrument containing allegations. All defendants are presumed innocent, unless and until proven guilty in a court of law.
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.
Tifton Drug Dealer Held Accountable for Heroin Overdose DeathRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on February 22, 2018, United States District Court Judge Leslie J. Abrams sentenced Bobby Earl Grantham, Jr., age 49, of Tifton, GA, to 150 months imprisonment for the offense of conspiracy to possess with intent to distribute controlled substances. Mr. Grantham had pled guilty to the offense on March 1, 2107. The drug distribution conspiracy to which Mr. Grantham pled guilty lasted from October 2014 to August, 2015, and involved a total of twenty-one participants, all of whom have been convicted.
On two occasions in the summer of 2015, a confidential source purchased heroin at the residence of Jimmy Barrentine. On one occasion, Mr. Grantham sold the heroin. On the other, Mr. Barrentine sold the heroin. On July 16, 2015, Tift County 911 received a dispatch to the residence of Jimmy Barrentine in Tifton, Georgia. Upon arrival, agents found Sonya Tolar dead inside Bobby Grantham’s bedroom at Jimmy Barrentine’s house. Toxicology results from Ms. Tolar’s autopsy noted the presence of 6-monoacety1-morphine, a metabolite of heroin. The medical examiner lists the cause of death as heroin toxicity. Agents located Ms. Tolar’s cell phone while processing the scene after her death. This revealed that a few hours before the 911 call, Mr. Grantham texted a photo of the heroin to Ms. Tolar to entice her to visit him. Shortly after receiving this text message, Ms. Tolar traveled to meet Mr. Grantham at Mr. Barrentine’s residence, where she died.
Mr. Grantham’s sentence was also enhanced based on his engaging in obstruction. At his sentencing, the Court heard evidence that after Mr. Grantham discovered that Ms. Tolar had overdosed, he waited over 30 minutes before calling for emergency assistance. He and others spent the interim time period removing evidence from the residence so that it would not be discovered by the authorities.
“Opioid distribution has been declared a national epidemic,” said United States Attorney Peeler. “Federal law carries stiff penalties for those who distribute drugs where death or serious bodily injury occurs. I hope that this sentence makes it clear that we do not tolerate the harm that this behavior causes in this district and that we are committed to doing all within our power to address and combat this epidemic. Mr. Grantham’s obstructive actions cannot be condoned. Ms. Tolar’s life might have been saved if he had valued her life more than his freedom. This lengthy sentence is richly deserved.”
This case was investigated by the Drug Enforcement Administration Macon Division, GBI Sylvester, Ben Hill County Sheriff’s Office, Tift County Sheriff’s Office, and Mid South Narcotics Task Force. Assistant United States Attorney Leah E. McEwen prosecuted the case for the United States.
Questions concerning this case should be directed to Pamela Lightsey, Public Information Officer, United States Attorney’s Office, at (478) 621-2603.
Three Aliens Indicted on Illegal Reentry ChargesRead the Press Release
RALEIGH – Robert J. Higdon, Jr., United States Attorney for the Eastern District of North Carolina, announces that a federal grand jury in Raleigh has returned indictments charging MIGUEL MORALES-MARTINEZ, age 44, of Mexico, ULFRANO PEREZ-ESTEBAN, age 36, of Mexico, and JOSE OMAR LLERENA-VIZARRETA, age 35, of Peru, with Illegal Reentry of a Deported Alien.
If convicted of Illegal Reentry of a Deported Alien, PEREZ-ESTEBAN, previously deported three times and found in Wake County, and LLERENA-VIZARRETA, previously deported and found in Cumberland County, would face maximum penalties of two years’ imprisonment, a $250,000 fine, and a term of supervised release following any term of imprisonment.
MORALES-MARTINEZ, found in Pitt County, is alleged to have been previously deported subsequent to a felony conviction. Therefore, if convicted, he faces a maximum imprisonment term of 10 years, a $250,000 fine, and a term of supervised release following any term of imprisonment.
The charges and allegations contained in the indictments are merely accusations. The defendants are presumed innocent unless and until proven guilty in a court of law.
The cases are being investigated by ICE’s Enforcement and Removal Operations and Homeland Security Investigations.
Stock Promoter Sentenced to 27 Months in Prison for His Role in International Pump and Dump SchemeRead the Press Release
Earlier today, in federal court in Brooklyn, stock promoter Songkram Roy Sahachaisere was sentenced by United States District Judge Eric N. Vitaliano to 27 months’ imprisonment for participating in a multi-million dollar international market manipulation scheme. Sahachaisere was convicted in November 2015, following more than five weeks of trial, of conspiring to commit securities fraud, conspiring to commit wire fraud, two counts of wire fraud and one count of securities fraud.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI), announced the sentence.
According to court documents and trial testimony, Sahachaisere participated in an international “pump and dump” operation, which fraudulently pumped up the share price of worthless penny stocks, and then dumped billions of shares on unsuspecting victim investors across the globe. They “pumped up” the share prices of the companies’ stock by engaging in fraudulent and illegal sales campaigns, which included distributing false press releases, announcing non-existent business ventures and fake mergers, posting false information on Internet message boards and bribing stock promoters. These schemes fraudulently inflated the value of the shares by approximately $100 million. Sahachaisere’s role in the scheme was to arrange promoters to “pump” the stocks to potential victims. Sahachaisere also conspired with other members of the conspiracy to artificially affect the trading price and volume of stocks so that they appeared legitimate to investors. In addition, the conspiracy used brokerage houses to manipulate transfers of shares, effectuating matched and wash trades in their targeted securities. Six co-defendants of Sahachaisere were previously convicted and sentenced. Two co-defendants are awaiting sentencing.
“Songkram Roy Sahachaisere, a licensed broker, defrauded investors across the globe through an international pump and dump scheme,” stated United States Attorney Donoghue. “His sentence should serve as a warning to those who would consider manipulating the securities markets for their own personal gain.” Mr. Donoghue extended his grateful appreciation to the FBI, which led the government’s investigation, and thanked the Internal Revenue Service, Criminal Investigation, New York; Homeland Security Investigations, Department of Homeland Security, Buffalo; Treasury Inspector General for Tax Administration; and the Royal Canadian Mounted Police and law enforcement authorities in England, Thailand and China for their assistance in this case.
“Sahachaisere promoted a scheme to overstate the value of stocks and sell them to unwitting investors worldwide,” stated FBI Assistant Director-in-Charge Sweeney. “This elaborate plan had but one simple intention, which was to profit from the misfortune of others. Today’s sentencing holds him accountable for his crimes.”
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys Tyler Smith and Mark Bini are in charge of the prosecution, with assistance provided by Assistant United States Attorney Karin Orenstein of the Office’s Civil Division, which is responsible for the forfeiture of assets.
The Defendant:
SONGKRAM ROY SAHACHAISERE
Age: 48
Newport Beach, California
Defendants Previously Sentenced:
SANDY WINNICK
Bangkok, ThailandGREGORY CURRY
Bangkok, Thailand
GREGORY ELLIS
Ontario, CanadaCORT POYNER
Boca Raton, FloridaWILLIAM SEALS
Fallbrook, CaliforniaKOLT CURRY
Ontario, CanadaDefendants Awaiting Sentencing:
GREGORY KERSHNER
Tucson, ArizonaJOSEPH MANFREDONIA
Tom’s River, New JerseyE.D.N.Y. Docket No. 13-CR-452 (ENV)
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 February 21, 2018, by U.S. District Judge Roberto A. Lange.
Louis Andrew Rabbitt, Jr., age 37, was sentenced to 21 months in custody, followed by 5 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Rabbitt was indicted by a federal grand jury on September 12, 2017. He pled guilty on September 26, 2017.
Rabbitt was convicted of Sexual Abuse of a Minor in August 2001. As a result of this conviction, he is required to register as a sex offender. Between the dates of July 24, 2017, and July 31, 2017, Rabbitt did not register.
This case was investigated by the U.S. Marshals Service. Assistant U.S. Attorney Daniel C. Nelson prosecuted the case. Rabbitt was immediately turned over to the custody of the U.S. Marshals Service.
Spring Creek Man Sentenced for Assaulting a Federal OfficerRead the Press Release
United States Attorney Ron Parsons announced that a Spring Creek, South Dakota, man convicted of Assaulting, Resisting, and Impeding a Federal Officer was sentenced on February 21, 2018, by U.S. District Judge Roberto A. Lange.
Lane Felix Knife, age 20, was sentenced to 6 months in custody, followed by 2 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Knife was indicted by a federal grand jury on October 17, 2017. He pled guilty on December 11, 2017.
The conviction stemmed from an incident on August 31, 2017. On that date, Knife resisted arrest and spit on the arm and shoulder of one of the corrections officers who was assisting in removing Knife from a patrol vehicle.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Daniel C. Nelson prosecuted the case. Knife was immediately turned over to the custody of the U.S. Marshals Service.
Sex Offender Sentenced to Prison for Failing to RegisterRead the Press Release
A convicted sex offender who lived in Cedar Rapids, Iowa, for 11 months without registering was sentenced February 22, 2018, to 8 months in federal prison.
Raymond Hockenberger, age 44, most recently from Cedar Rapids, Iowa, received the prison term after a September 20, 2017, guilty plea to one count of failing to register as a sex offender.
Information from the sentencing hearing showed that Hockenberger was required to register as a sex offender because he was previously convicted of attempted rape. While still on probation for that conviction, Hockenberger provided a fake name to police and was convicted of identity theft. Hockenberger moved to Cedar Rapids in January 2016. He did not register as a sex offender until November 2016 and registered only after he was likely alerted to the fact that law enforcement was looking for him in Cedar Rapids.
Hockenberger was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Hockenberger was sentenced to 8 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a 5-year term of supervised release after the prison term. There is no parole in the federal system. Hockenberger is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Anthony Morfitt and investigated by the United States Marshal’s Service. Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-57.
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Seven Suspects Arrested in West Tennessee on Federal Drug Trafficking ChargesRead the Press Release
Jackson, TN – Seven suspects from West Tennessee have been indicted for conspiracy to distribute 50 grams or more of actual methamphetamine or ICE. U.S. Attorney D. Michael Dunavant for the Western District of Tennessee announced the indictment today.
A task force made up of special agents with the Federal Bureau of Investigation, the Dyersburg Police Department and members of the FBI Jackson Safe Streets Task Force arrested seven people in an early morning raid on February 22, 2018, on federal drug trafficking charges.
Yesterday morning’s arrests are the result of a year-long investigation in which law enforcement officials have seized a large amount of ICE. One seizure alone was approximately ½ kilo of actual methamphetamine, which was 95% pure.
A federal grand jury in Jackson, TN returned the eighteen-count indictment on February 20, 2018, but it remained under seal until yesterday’s arrest. The indictment contained counts against each defendant alleging violations under the Controlled Substances Act. Some defendants also have firearms charges. The charges stem from the defendants’ participation in a conspiracy to distribute and to possess with the intent to distribute ICE.
The suspects arrested during the operation were:
Christopher Faulcon a/k/a "Wheezy," 32, Dyersburg, TN
Tommy Taylor, a/k/a "Chubbs,"35, Friendship, TN
Damien Nixon, 39, Gates, TN
David McNeely, 41, Finley, TN
Patricia Wilson, a/k/a "PJ," 30, Dyersburg, TN
Elisha Kirk, 29, Dyersburg, TN
William Hardy, 54, Dyersburg, TN
This case was investigated by the Federal Bureau of Investigation and the Dyersburg Police Department.
Assistant U.S. Attorney Beth C. Boswell is prosecuting this case on the government’s behalf.
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Sacramento Man Pleads Guilty in Tax Refund Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — Arsen Muhtarov, 39, of Sacramento, pleaded guilty to today to conspiracy to defraud the United States by filing fraudulent tax returns, U.S. Attorney McGregor W. Scott announced.
According to court documents, Aleksandr Kuzmenko, 34, of Loomis, was a tax preparer at VK Tax Services in Citrus Heights. Muhtarov conspired with Aleksandr Kuzmenko, Petr Kuzmenko, 39, of West Sacramento, and Valeriy Nikitchuk, 45, of Kent, Washington, to defraud the United States. Between February 2009 and November 2009, using stolen identification information and fictitious addresses, they filed approximately 90 fraudulent tax returns with the IRS that claimed the First Time Home Buyer Credits (FTHBC) on behalf of filers who were not entitled to the credit. The resulting fraudulent refunds were electronically deposited into bank accounts that the defendants controlled. The proceeds were then withdrawn and spent. The fraudulent claims totaled approximately $695,724, of which the IRS paid approximately $573,000.
Petr Kuzmenko was sentenced to six and a half years in prison and ordered to pay $573,332 in restitution to the IRS. Aleksandr Kuzmenko was sentenced to over two years in prison, and Valeriy Nikitchuk was sentenced to 10 months in prison.
Muhtarov is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on June 1, 2018. Muhtarov faces a maximum statutory penalty of 10 years and prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case is the product of an investigation by the IRS Criminal Investigation. Assistant U.S. Attorney Michele Beckwith is prosecuting the case.
Rosebud Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Ron Parsons announced that a Rosebud, South Dakota, woman convicted of Conspiracy to Distribute a Controlled Substance was sentenced on February 21, 2018, by U.S. District Judge Roberto A. Lange.
Annie Rose Gasman, age 33, was sentenced to 27 months in custody, followed by 4 years of supervised release, a fine of $1,000, and a mandatory special assessment to the Federal Crime Victims Fund in the amount of $100.
Gassman was indicted by a federal grand jury on June 14, 2017. She pled guilty on December 1, 2017.
Between August 1, 2015, and June 14, 2017, Gassman knowingly and intentionally conspired with others to distribute methamphetamine in the District of South Dakota.
Gassman received distributable quantities of methamphetamine and distributed some of the methamphetamine in South Dakota. The individuals who provided methamphetamine knew that she intended to engage in further distribution. Gassman admitted that it was reasonably foreseeable to her that more than 500 grams of methamphetamine would be distributed during the course of the conspiracy.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney SaraBeth Donovan prosecuted the case.
Gassman was immediately turned over to the custody of the U.S. Marshals Service.
Republic Sex Offender Indicted for Sexual Exploitation of a MinorRead the Press Release
SPRINGFIELD, Mo. – Timothy A. Garrison, United States Attorney for the Western District of Missouri, announced today that a registered sex offender in Republic, Mo., has been indicted by a federal grand jury for the sexual exploitation of a minor.
Christopher Paul Chmela, 52, of Republic, was charged in a three-count indictment returned under seal by a federal grand jury in Springfield, Mo., on Wednesday, Feb. 21, 2018. The indictment was unsealed and made public today upon Chmela’s arrest last night and initial court appearance this morning.
Chmela, a registered sex offender, has prior convictions for the attempted use of a child in a sexual performance.
The federal indictment alleges that Chmela used a minor to produce child pornography from Aug. 8 to Oct. 25, 2017, in Greene County, Mo. The indictment also charges Chmela with using a cell phone to entice the child victim to engage in illegal sexual activity.
Chmela is also charged with receiving and distributing child pornography from May 26 to Nov. 16, 2017.
Garrison cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the Republic, Mo., Police Department and the Southwest Missouri Cyber Crimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Port St. Lucie Dermatologist Sentence on Obstruction and Fraud ChargesRead the Press Release
Physician Gary L. Marder, D.O., 61, of Palm Beach County, and owner and operator of the Allergy, Dermatology & Skin Cancer Centers in Port St. Lucie and Okeechobee, was sentenced yesterday in relation to his guilty plea to the crimes of obstruction of a health care investigation and health care fraud.
Benjamin G. Greenberg, United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Region, John F. Khin, Special Agent in Charge, Defense Criminal Investigative Service (DCIS), Southeast Field Office, Martin J. Dickman, Inspector General, U.S. Railroad Retirement Board, Office of Inspector General (RRB-OIG), and Scott Rezendes, Special Agent in Charge, United States Office of Personnel Management, Office of Inspector General (OPM-OIG), made the announcement.
U.S. District Judge Robin L. Rosenberg sentenced Marder to 36 months imprisonment, to be followed by one year of supervised release. Judge Rosenberg also ordered Marder to pay $200,000 fine and a special assessment of $200, each to be paid immediately. Marder is required to surrender to the place designated for his incarceration on April 23, 2018, by noon. Marder was also required to permanently surrender his license to practice as an osteopathic physician, and is not allowed to own, operate, manage or consult in a medical practice in anyway during the term of his sentence.
Marder pled guilty and admitted to committing the crimes of obstructing the investigation of federal healthcare fraud by delivering falsified and altered patient files that had been subpoenaed by a federal grand jury and delivered to an FBI Special Agent, and to having submitted approximately $350,000 in false claims for the services of a medical physicist to healthcare benefits programs including Medicare, Tricare, Railroad Retirement Board, OPM health insurance programs and other insurers.
The investigation originally arose from a Qui Tam lawsuit filed by whistleblower Theodore A. Schiff, M.D. alleging that Marder knowingly submitted fraudulent claims to federal healthcare programs for payment to which Marder was not entitled. On February 7, 2017, the government and Marder entered into a settlement of the civil suit resulting in Marder agreeing to an $18 million judgment in favor of the United States that was subsequently satisfied by the payment of approximately $6 million to the United States by Marder. Marder paid $5.2 million and transferred a piece of real property to the United States to settle this civil suit. The United States agreed that this payment would also satisfy any restitution due and owing in the criminal case.
Mr. Greenberg commended the investigative efforts of the FBI, HHS-OIG, DCIS, RRB-OIG and OPM-OIG. This case was prosecuted by Assistant U.S. Attorney Ellen L. Cohen.
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.
Pleasants County woman ordered to pay money from the theft of social security benefitsRead the Press Release
CLARKSBURG, WEST VIRGINIA - Anne Louise Hall, of St. Marys, West Virginia, was ordered to pay more than $54,000 to the Social Security Administration, United States Attorney Bill Powell announced.
Hall, age 57, pled guilty to one count of “Theft of Government Money” in October 2017. Hall admitted to collecting social security benefits under false pretenses. The crime occurred from October 2006 to March 2017.
Hall was sentenced to five years probation for the theft. Hall was also ordered to pay $54,678.90 in restitution.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Social Security Administration Office of Inspector General investigated.
Senior U.S. District Judge Irene M. Keeley presided.
Pittsburgh Man Passed Counterfeit $100 Bills at Western Pennsylvania Target StoresRead the Press Release
PITTSBURGH – A resident of Pittsburgh pleaded guilty in federal court to charges of passing and uttering counterfeit money, United States Attorney Scott W. Brady announced today.
Peter A. Maiolo, Jr., 42, of Pittsburgh, PA pleaded guilty to three counts before United States District Judge Cathy Bissoon
In connection with the guilty plea, the court was advised that on or about July 6, 2015, July 10, 2015, August 2, 2015, August 18, 2015, August 22, 2015, August 25, 2015, August 30, 2015, and September 7, 2015, Maiolo passed counterfeit $100 Federal Reserve Notes at Target in the Western District of Pennsylvania.
Judge Bissoon scheduled sentencing for June 6, 2018 at 10 a.m. The law provides for a maximum total sentence of 60 years in prison, a fine of $750,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Secret Service conducted the investigation that led to the prosecution of Maiolo.
Oxford Man Sentenced for Felon in Possession and Possession of a Firearm in Furtherance of a Drug Trafficking CrimeRead the Press Release
NEW BERN – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that yesterday afternoon in federal court, United States District Judge Louise W. Flanagan sentenced ROY LEE TERRY, 53, of Oxford to 101 months of imprisonment followed by 5 years of supervised release.
TERRY was named in a three-count Indictment filed on August 23, 2016. On November 16, 2016, TERRY subsequently pled guilty to one-count of Felon in Possession of a Firearm and one-count of Possession of a Firearm in Furtherance of a Drug-Trafficking Crime.
The investigation began when the Oxford Police Department (OPD) received information that TERRY was dealing in drugs. On August 26, 2015, the OPD received information from a confidential source (CS) indicating that TERRY was storing and selling cocaine base at his residence. With the assistance of the CS, authorities conducted four purchases of narcotics from TERRY.
On September 10, 2016, the OPD executed a search warrant at TERRY’S residence. A cooperating witness (CW) informed law enforcement that TERRY had been seen with a handgun and cocaine in his bedroom prior to OPD’s arrival. Present at the time, in addition to Terry was Terry’s mother, who was charged by the State of North Carolina, two females and juveniles. During the subsequent search of the residence, authorities located the following in TERRY’S bedroom: a stolen .380 semi-automatic handgun loaded with 8 rounds; approximately 9.34 grams of cocaine base; approximately 15.5 grams of off-white powder; a plastic bag with cocaine residue; $680 in U.S. currency, a digital scale, plastic baggies, and other related items. In a bedroom next to TERRY’S bedroom, a box containing 42 rounds of 9 mm ammunition was located. After waiving his rights, Terry confessed to knowingly possessing the firearm. Further investigation revealed that the firearm was stolen.
This case was brought as part of Project Safe Neighborhoods (PSN), a program that has been historically successful in bringing together all levels of law enforcement to reduce violent crime and make our neighborhoods safer for everyone. Attorney General Jeff Sessions has made turning the tide of rising violent crime in America a top priority. In October 2017, as part of a series of actions to address this crime trend, Attorney General Sessions announced the reinvigoration of PSN and directed all U.S. Attorney’s Offices to develop a district crime reduction strategy that incorporates the lessons learned since PSN launched in 2001.
The Oxford Police Department, the North Carolina State Crime Lab, and the Bureau of Alcohol Tobacco Firearms and Explosives (ATF) conducted the criminal investigation of this case. Assistant United States Attorney S. Katherine Burnette handled the prosecution of this case for the government.
Omaha Woman Sentenced for Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney Joseph P. Kelly announced that on February 23, 2018, Allie Johnson, 25, of Omaha, Nebraska, was sentenced to 10 years (120 months) in federal prison for conspiracy to distribute 500 grams or more of a mixture or substance containing methamphetamine between January of 2013 and August of 2016. Information obtained by law enforcement indicated that during that time-frame, Johnson was involved in the distribution of at least 5 kilograms (11 pounds) of methamphetamine in the Lincoln and Omaha areas.
Following the prison term, Johnson will serve five years on supervised release.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.