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29 March 2018
Queens Man Arrested for Stealing More than $150,000 in Government Benefits Paid to His Deceased MotherRead the Press Release
Earlier today, in federal court in Brooklyn, Mark Hodge was arrested on a complaint charging him with theft of government property. Hodge allegedly stole more than $150,000 from the Social Security Administration, the Office of Personnel Management and the Department of Veterans Affairs between March 1999 and July 2017. Hodge is scheduled to make his initial appearance this afternoon before United States Magistrate Judge Vera M. Scanlon.
Richard P. Donoghue, United States Attorney for the Eastern District of New York, and John Grasso, Special Agent-in-Charge, Social Security Administration, Office of the Inspector General (SSA-OIG), announced the charge.
“Month after month for nearly two decades, the defendant allegedly stole government funds intended for his mother, who had died in 1999,” stated United States Attorney Donoghue. “This Office will hold responsible and prosecute those fraudsters who cash government checks meant for our nation’s retirees, veterans, or the disabled.”
“Today’s arrest should serve as a warning to those who choose to selfishly defraud the Social Security Trust Fund,” stated SSA-OIG Special Agent-in-Charge Grasso. “The Social Security Office of the Inspector General vigorously pursues these cases, and we will continue to work jointly with other law enforcement partners to identify and prosecute fraud perpetrators in the future. I strongly encourage the public to report suspected instances of Social Security fraud to the OIG’s Fraud Hotline at 1-800-269-0271 or https://oig.ssa.gov/report.”
According to the complaint, the three federal agencies had been paying benefits to the defendant’s mother, who had been residing with the defendant until her death in 1999. Unaware of her death, the agencies continued making payments for her benefit. Instead of reporting the overpayments, the defendant transferred the funds from a joint bank account in his mother’s name to his own personal checking account. The defendant continued the fraud in November 2016, when he falsely represented to the Social Security Administration that his mother was alive but unable to be interviewed because she had been hospitalized.
The charges in the complaint are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted, the defendant faces a statutory maximum of 10 years’ imprisonment for theft of government property.
The government’s case is being handled by the Office’s General Crimes Section. Special Assistant United States Attorney Virginia Nguyen is in charge of the prosecution.
The Defendant:
MARK HODGE
Age: 60
Residence: Queens, New YorkE.D.N.Y. Docket No. 18-MJ-257
Prosecutors & Crisis Services of North Alabama Recognize Champions for Crime VictimsRead the Press Release
April 10 Ceremony Commemorates 2018 National Crime Victims’ Rights Week
HUNTSVILLE — The U.S. Attorney’s Office, Northern District of Alabama, Madison County District Attorney’s Office and Crisis Services of North Alabama will commemorate National Crime Victims’ Rights Week with a ceremony Tuesday, April 10, recognizing individuals who have shown a commitment to helping crime victims.
The agencies will present the 2018 National Crime Victims’ Rights Recognition Ceremony from 8:30 a.m. to 10 a.m. at the Jackson Center, 6001 Moquin Drive NW, Huntsville. Alexis Barton, an outspoken advocate for sexual assault survivors, will be the ceremony’s featured speaker. Barton is an active member of the Junior League of Birmingham and serves on the board of One Place Metro Alabama Family Justice Center, which provides coordinated services to victims of domestic violence and sexual assault with a multi-disciplinary team of professionals working together under one roof.
The Crime Victims’ Rights Recognition Ceremony in Huntsville will honor individuals from the areas of victim advocacy, law enforcement and prosecution who have contributed outstanding services to victims.
National Crime Victims’ Rights Week this year is April 8-14. The U.S. Department of Justice Office for Victims of Crime leads communities throughout the country in their annual observances of the week by promoting victims’ rights and honoring crime victims and those who advocate on their behalf. This year’s theme – Expand the Circle: Reach All Victims – highlights how a community’s investment in crime victims expands the opportunity for victims to disclose their victimization, connect with services, and receive the support they need. The theme also acknowledges the many barriers facing victims of crime, especially LGBTQ victims, older adults, speakers with limited English proficiency, those with disabilities, American Indians and Alaska Natives, and others from historically marginalized communities.
This event is free and open to the public.
To register to attend the Huntsville ceremony, visit https://usaoalntraining.org/NationalCrimeVictimsCeremony.
For additional ideas on how to support victims of crime, visit OVC’s website at www.ovc.gov.
*Graphics of this year’s logo are available on the OVC website.
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Prominent Southwest Washington Fishing Guide Convicted of Disability Fraud SchemeRead the Press Release
A prominent Southwest Washington fishing guide, who was convicted last year of killing two protected wild salmon, was convicted today in U.S. District Court in Tacoma of a disability fraud scheme, announced U.S. Attorney Annette L. Hayes. BILLY JIM SWANN, 53, was convicted following a three-day trial before U.S. District Judge Robert J. Bryan. Judge Bryan found SWANN guilty of perjury, wire fraud, and Social Security fraud for his 8-year scheme to obtain disability benefits to which he was not entitled. Judge Bryan set sentencing for June 22, 2018.
According to records filed in the case and testimony at trial, SWANN applied for Social Security disability benefits in 2006, claiming that he had been disabled and unable to work since 2003. When Social Security denied the claim, SWANN appealed and swore before an administrative law judge that his only work activity was as a volunteer for a few weeks in the summer at an Alaska fishing camp. When SWANN’s claims for disability benefits were again denied, SWANN filed an appeal in U.S. District Court, again with numerous false claims about his alleged disabilities. SWANN claimed his disability interfered with his ability to walk, climb stairs and use his hands, and that he needed a cane to walk. SWANN claimed that the accident that caused his disability in 2003, also caused him cognitive problems, limiting his ability to carry on a conversation.
Contrary to SWANN’s claims, between 2006 and 2014, he had a busy and successful business known as Swanny’s Guided Fishing. SWANN offered guided fishing trips in Washington, Oregon, Idaho and Alaska. SWANN was featured on the cover of Northwest Sportsman Magazine, was sponsored by numerous outdoor equipment brands, and was a regular guest on fishing shows carried on the radio. In 2012, the year he told an administrative law judge that he had not worked at all, SWANN took in $92,503 for his fishing guide business.
SWANN’s applications for benefits were repeatedly denied by Social Security. Had SWANN been successful in his scheme, he and his family would have collected more than $200,000 in benefits.
Perjury and Social Security fraud are punishable by up to five years in prison. Wire fraud is punishable by up to 20 years in prison. Those are the maximum penalties, and the actual sentence imposed will be determined by Judge Bryan based on a number of sentencing factors.
The fraud scheme was uncovered during a 2016 investigation of SWANN’s illegal conduct on the Cowlitz River. On October 1, 2014, SWANN led a promotional fishing trip on the Cowlitz River. The trip was being broadcast over the internet. SWANN encouraged his clients to catch two native Coho salmon. Native Coho on the Cowlitz are protected by the Endangered Species Act and Washington law, and may not be removed from the water. After the clients landed the fish, SWANN clubbed both of them and then cut off the adipose fins on each fish to make it appear they were hatchery fish and therefore legal to catch and keep. However, evidence of the catching and clubbing of the wild and protected fish was caught on the web broadcast, and the illegal conduct was reported to the Washington State Department of Fish and Wildlife. SWANN entered a guilty plea to violating the Endangered Species Act. In March 2017, SWANN was fined $7,500 for the federal misdemeanor conviction.
The case was investigated by the Social Security Administration Office of Inspector General (SSA-OIG) and NOAA Fisheries Office of Law Enforcement.
The case is being prosecuted by Assistant United States Attorney Seth Wilkinson and Special Assistant United States Attorney Benjamin Diggs. Mr. Diggs is an attorney with the Social Security Administration specially designated to prosecute fraud cases in federal court.
Prison Time and Stiff Penalties Await Tax Fraudsters, Prosecutors WarnRead the Press Release
CHARLOTTE, NC - With the deadline for filing income tax returns rapidly approaching, R. Andrew Murray, U.S. Attorney for the Western District of North Carolina, and Matthew D. Line, Acting Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division, Charlotte Field Office (IRS-CI), jointly announce recent tax fraud prosecutions and sentencings, and deliver a powerful warning to those who are thinking about breaking the law by committing tax crimes.
“As April 15th nears, tax cheats are put on notice: our office works diligently to investigate and prosecute those who try to evade their federal tax obligations,” said U.S. Attorney Murray. “Taxes help pay for important services our communities rely on. Tax cheats steal from the government and increase the burden on honest taxpayers who file their taxes on time and pay the share they owe. Our experienced tax prosecutors and IRS criminal investigators work hand-in-hand to uncover tax fraud and hold tax criminals accountable for their actions.”
“As the 2018 tax filing season comes to an end, special agents of the IRS-Criminal Investigation will continue to work diligently to pursue those individuals and corporations who make deliberate decisions to not comply with the tax laws. America’s tax system relies heavily on voluntary self-assessments of what tax is owed and when individuals or corporations falsify those self-assessments, the citizens of Western North Carolina, can rest assured our agents in the Charlotte Field Office, along with the U.S. Attorney’s Office, will prosecute them. Prosecution of these cases supports the overall IRS compliance goals and enhances voluntary compliance,” said Acting Special Agent in Charge Matthew D. Line.
Tax Preparer Indicted for Tax Fraud
Aminta A. Smith, 31, of Charlotte, made her initial appearance today on federal charges of aiding and assisting in the preparation of false tax returns and filing a false tax return. The indictment alleges that, between 2012 and 2015, Smith prepared and submitted to the IRS more than 1,300 tax returns, many of which included false information, such as false income and false education expenses, which qualified filing individuals for inflated tax refunds. The indictment further alleges that the Charlotte-area tax return preparer kept a portion of the tax refund as her fee. For tax years 2011 to 2015, Smith also filed U.S. Individual Income Tax Returns that did not include much of the income she received for preparing tax returns, which resulted in Smith receiving large tax refunds. Smith faces a maximum penalty of three years in prison for each charge of aiding and abetting in the preparation of false tax returns and three years in prison for filing a false tax return. (3:18-cr-107).
Other Tax Prosecutions
In the last year, the U.S. Attorney’s Office, with the assistance of IRS-CI, has investigated and prosecuted numerous individuals for criminal tax violations. Tax enforcement prosecutions include:
Todd Barry Greenburg (5:17-cr-53). On March 6, 2018, Greenburg, 46, a resident of Mooresville, N.C. and co-owner of a Charlotte-area car dealership, pleaded guilty to one count of tax evasion. As part of his guilty plea, Greenburg admitted that, for tax years 2010 through 2015, he attempted to evade a large part of the income tax he owed by: concealing and attempting to conceal from the IRS the nature and extent of his assets and their location; placing funds and properties in the names of others; and making false statements to IRS agents. He faces a maximum sentence of five years in prison and a $250,000 fine. Greenburg’s sentencing date has not been set.
Peter Gjuraj (5:17-cr-31). On September 5, 2017, Gjuraj, 50, of Mooresville, was sentenced to eight months in prison. Gjuraj operated the Blue Parrot, a restaurant in Lake Norman, and concealed significant personal earnings from the IRS. For tax years 2012 through 2014, the Blue Parrot earned additional gross receipts totaling approximately $2,793,873 that Gjuraj failed to report on his individual income tax returns filed with the IRS. As a result of the unreported gross receipts, Gjuraj had additional taxable income substantially in excess of that reported on his tax years 2012 through 2014. The additional federal tax due on this unreported income was a total of $319,974.92.
Matthew Moretz (5:17-cr-3). On August 8, 2017, Moretz, 32, of Taylorsville, N.C., and owner of a recycling business, was sentenced to six months in prison. Court records show that Moretz concealed significant personal earnings from the business from the IRS. As a result of unreported income of $529,622.44, Moretz had additional tax due and owing of approximately $115,409 from 2010 to 2013.
Priscilla Lydia Turner (1:16-cr-133). On August 17, 2017, Turner, 36, of Greenville, South Carolina, was sentenced to 24 months in prison and was ordered to pay $204,773 in restitution for her role in a stolen identity refund fraud scheme. Turner misused her access to a computer system to obtain personal identifying information (PII) of inmates detained at the Greenville County Detention Center. Turner passed the stolen PII of inmates to her co-conspirators, who used that information to file fraudulent tax returns and to obtain fraudulent tax refunds. Turner’s co-conspirators were previously sentenced in connection to the tax fraud scheme. Carmichael Hill was sentenced to 75 months in prison; Reginald Knowles was sentenced to 70 months in prison; and Senita Dill was sentenced to 324 months in prison.
Quandella Walker (3:17-cr-343). On December 14, 2017, Walker, 29, of Charlotte, was indicted for aiding and assisting in the filing of false tax returns for others as well as filing false tax returns in her own name. Through her tax preparation business, Quandella Tax Services, Walker prepared tax returns for clients that contained false income information, to enable her clients to fraudulently qualify for inflated tax refunds. Walker is also charged filing false tax returns for her own name.
Federal penalties for each count of conviction of tax crimes range from a maximum of one year in prison and a $100,000 fine for failure to file a tax return, false withholding exemptions, and delivering or disclosing false tax documents, to a maximum of 10 years in prison and a $250,000 fine for conspiracy to defraud with respect to false refund claims. Other penalties include a mandatory term of two years in prison and a $250,000 fine for aggravated identity theft charges, three years in prison and a $250,000 fine for obstructing or impeding an investigation and filing or preparing a false tax return, and a maximum of five years in prison and a $250,000 fine for tax evasion, failure to pay taxes, conspiracy to commit a tax offense or conspiracy to defraud.
The U.S. Attorney’s Office and the IRS remind tax payers to exercise caution during tax season to protect themselves against a wide range of tax schemes ranging from identity theft to return preparer fraud. Illegal scams can lead to significant penalties and interest and possible criminal prosecution. IRS Criminal Investigation works closely with the Department of Justice to shutdown scams and to prosecute the criminals behind them. The IRS has issued its annual “Dirty Dozen” which lists common tax scams that taxpayers may encounter, particularly during filing season. Taxpayers are urged look out for, and to avoid, the following common schemes:
- Phishing
- Phone Scams
- Identity Theft
- Return Preparer Fraud
- Fake Charities
- Inflated Refund Claims
- Excessive Claims for Business Credits
- Falsely Padding Deductions on Returns
- Falsifying Income To Claim Credits
- Abusive Tax Shelters
- Frivolous Tax Arguments
- Abusive Tax Shelters
- Offshore Tax Avoidance
Education is the best way to avoid these common schemes. To learn more about the Dirty Dozen scams and for help with recognizing and avoiding abusive tax schemes, the IRS offers educational material at www.irs.gov. Suspected tax fraud can be reported to the IRS using Form 3949-A found on the IRS.gov website.
Pierre Man Charged for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Ron Parsons announced that a Pierre, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
William Rivers, age 61, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 29, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
Rivers was convicted of Sexual Abuse in June 1992. As a result of this conviction, he is required to register as a sex offender. It is alleged that between December 11, 2017, and December 30, 2017, Rivers, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Rivers is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Rivers was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 12, 2018.
Philadelphia-Area Businessman Sentenced to 18 Months in Prison for Bribing Former Philadelphia District Attorney, Tax FraudRead the Press Release
PHILADELPHIA – A Feasterville, Pennsylvania, man was sentenced today to 18 months in prison for bribing former Philadelphia District Attorney Rufus Seth Williams and evading taxes, U.S. Attorney Craig Carpenito announced.
Mohammad N. Ali, 41, previously pleaded guilty before U.S. District Judge Paul S. Diamond to an information charging him with one count of using facilities in interstate and foreign commerce to promote bribery in violation of Pennsylvania law and one count of making and subscribing to a false federal tax return. Judge Diamond imposed the sentence today in Philadelphia federal court.
According to documents filed in this case and statements made in court:
From July 2010 through May 2015, Ali provided a stream of bribes to Williams – which Williams concealed from timely public disclosure – in exchange for Williams performing and agreeing to perform official acts for Ali and to violate Williams’ legal duties as specific opportunities arose.
For example, Ali provided Williams with a $7,000 check, an all-inclusive vacation to Punta Cana, Dominican Republic, worth $6,381, a custom sofa worth $3,212, $2,679 in dinners at high-end Philadelphia restaurants, approximately $2,000 in cash, a $842 Burberry watch, a Louis Vuitton tie worth $205, an iPad worth approximately $300, and a Burberry purse for Williams’ girlfriend.
In exchange, Williams agreed to help Ali with security screenings when Ali returned from foreign travel. For example, on March 15, 2013, Ali met with Williams and a police official and Williams asked the police official to help Ali avoid secondary screening at the airport. That same day, Ali gave Williams a $7,000 check. Williams also repeatedly offered to write an official letter, under his authority as the District Attorney, on Ali’s behalf to pressure and advise another public official to assist Ali with the border encounters.
Ali also sought Williams’ assistance with criminal charges brought by the Philadelphia District Attorney’s Office against Ali’s associate, an individual identified in the information as “Person #1.”
In addition, Ali used his business earnings to pay for over $490,000 in personal expenses, including $112,635 toward the purchase of a dental practice, $15,000 toward the purchase of a Porsche, purchases at clothing stores, meals at high-end restaurants, and domestic and international travel – including $6,300 for airfare and lodging for Williams and Williams’s girlfriend to stay at the Punta Cana resort. Ali fraudulently deducted these personal expenses on corporate income tax returns and did not report this income on his personal tax returns. In all, Ali caused a total tax loss of $163,498.
In addition to the prison term, Judge Diamond sentenced Ali to three years of supervised release, fined him $100,000 and ordered him to pay restitution of $63,498. Ali was immediately remanded to the custody of the Federal Bureau of Prisons to serve his sentence.
Ali testified in June 2017 at Williams’ trial. On the ninth day of that trial, Williams entered a guilty plea to a charge of bribery and admitted that he committed all of the bribery and fraud offenses alleged in a 29-count indictment against him. Williams resigned as District Attorney at that time. He was sentenced to 60 months in prison on Oct. 24, 2017.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Special Agent in Charge Michael Harpster in Philadelphia; special agents of IRS-Criminal Investigation, Philadelphia Office, under the direction of Acting Special Agent in Charge Edward Wirth, and special agents of Homeland Security Investigations (HSI) Philadelphia, under the direction of Special Agent in Charge Marlon V. Miller, with the investigation.
The U.S. Attorney in the Eastern District of Pennsylvania recused his office from the investigation involving the Philadelphia District Attorney’s Office, and the matter was assigned to the U.S. Attorney’s Office for the District of New Jersey. Two prosecutors from the Eastern District of Pennsylvania office were assigned to the case, subject to the supervision of prosecutors in the New Jersey office.
The government is represented by Eric W. Moran, Chief of the Criminal Division for the southern vicinages in the District of New Jersey, and Chief of Appeals Robert A. Zauzmer and Assistant U.S. Attorney Vineet Gauri of the U.S. Attorney’s Office in Philadelphia.
Defense counsel: Mark E. Cedrone Esq., Philadelphia
Philadelphia Duo Charged with Sex Trafficking of a MinorRead the Press Release
Shyniquah Lightner, 26, and Malik Hudson, 21, both of Philadelphia, were charged today by Indictment[1] with sex trafficking of a minor, announced United States Attorney Louis D. Lappen.
The indictment alleges that between July 2017 and September 2017, defendant Shyniquah Lightner was the operator of a prostitution venture in Philadelphia, Pennsylvania, and defendant Malik Hudson assisted Lightner in the operation. As part of the venture, Lightner recruited young females to work as prostitutes in her business, and she created Internet advertisements in which she marketed various females as available for purchase for purposes of prostitution. These advertisements featured pictures of the females, either scantily clad or partially nude, a description of each female, and a phone number to call to arrange a meeting. Defendants Lightner and Hudson used force, threats of force, fraud, and coercion to cause the females who worked for them to engage in commercial sex acts. Two of the females Lightner recruited and advertised were under 18 years of age. Lightner and Hudson are charged with sex trafficking of Minor 1. Additionally, Lightner is charged in a second count with sex trafficking of Minor 2.
If convicted, Lightner faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison, a minimum of 5 years up to lifetime-supervised release, a $500,000 fine, and a $200 special assessment.
If convicted, Hudson faces a mandatory minimum sentence of 15 years in prison with a maximum possible sentence of life in prison, a minimum of 5 years up to lifetime-supervised release, a $250,000 fine, and a $100 special assessment.
"We are privileged to have collaborated with our Human Trafficking Task Force partners in the investigation and attendant arrests," said Philadelphia Police Comissioner Ricard Ross. "Our collective efforts resulted in the arrests of two dangerous predators, and furthered our overarching mission to keep our children safe from exploitation."
"The task force brings together the expertise, training, experience, and law enforcement authorities of the partnered agencies to help identify human traffickers, and prosecute them while also protecting and aiding survivors. “HSI Philadelphia is pleased that the newly formed multiagency Anti-Trafficking Coalition worked jointly on this investigation, and we look forward to expanding our partnerships with private and public entities to combat human trafficking,” said Marlon V. Miller, special agent in charge of HSI Philadelphia.
The case was investigated by the Homeland Security Investigations (HSI), the Philadelphia Police Department Special Victim’s Unit (SVU) and the Philadelphia District Attorney’s Office, and is being prosecuted by Assistant United States Attorney Jessica Natali. This case is part of the Philadelphia Anti-Human Trafficking Task Force. Members of the joint task force include the HSI Philadelphia, the Philadelphia Police Department’s SVU, the Philadelphia District Attorney’s Office Family Violence & Sexual Assault Unit, the Federal Bureau of Investigation, the Salvation Army and the United States Attorney’s Office for the Eastern District of Pennsylvania.
[1] An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parmelee Man Charged with Aggravated Sexual AbuseRead the Press Release
United States Attorney Ron Parsons announced that a Parmelee, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Minor.
Mason Neck, age 28, was indicted on February 14, 2018. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 29, 2018, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, any term years, not less than 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between June 30, 2016, and August 9, 2016, Neck knowingly attempted to engage in a sexual act with a minor victim.
The charge is merely an accusation and Neck is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Neck was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for June 26, 2018.
Owners of Pasco County Marketing Firm Indicted for Paying Healthcare Kickbacks and Money LaunderingRead the Press Release
Tampa, Florida – An indictment has been unsealed charging Frank V. Monte (38, Valrico) and Kimberley S. Anderson (50, New Port Richey) with one count of conspiracy, five counts of paying healthcare kickbacks, one count of conspiracy to commit money laundering, and three counts of illegal monetary transactions. Monte is also charged with two counts of making false statements. If convicted, each faces a maximum penalty of 5 years in federal prison for the conspiracy count, up to 5 years’ imprisonment for each count of paying a kickback, and up to 10 years in federal prison for each money laundering and monetary transaction charge. Monte faces up to 5 years’ imprisonment on each false statement charge. The indictment also notifies Monte and Anderson that the United States intends to forfeit cash, vehicles, and real estate, all of which are alleged to be traceable to proceeds of the offenses.
According to the indictment, in May 2014, Monte and Anderson, acting on behalf of their marketing company Centurion Compounding, Inc., entered into a marketing agreement with the owners of a Pinellas County-based pharmacy called Lifecare. Centurion employed sales representatives to market compounded medications, specifically creams for pain and scars, among others, to beneficiaries of healthcare plans, especially TRICARE. These creams typically ranged in price from $900 to $21,000 for a one-month supply. Between May and November 2014, Monte and Anderson directed the patients that Centurion sales representatives had recruited and the physicians in their network to send all of their compounded cream prescriptions to Centurion, which then transmitted them to Lifecare to fill.
During this same period, the owners of Lifecare, Carlos Mazariegos and Benjamin Nundy, entered into an agreement with the principals of Centurion to pay illegal kickbacks to Dr. Anthony Baldizzi, a Centurion in-network physician. Lifecare and Centurion agreed to pay Dr. Baldizzi 10 percent of each paid claim resulting from a prescription for compounded cream written for his patients and filled at Lifecare. These prescriptions were often billed to TRICARE.
Lifecare received approximately $5.3 million from TRICARE for claims made for prescriptions for compounded medications prescribed by Dr. Baldizzi as a result of this illegal kickback scheme. In December 2014, Mazariegos wrote a check for $71,900, funded with the proceeds from the scheme, to pay for a luxury car for Dr. Baldizzi in partial satisfaction of kickbacks owed to him by Lifecare and Centurion.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
Dr. Baldizzi previously pleaded guilty to conspiracy to commit healthcare fraud and receiving healthcare kickbacks. Mazariegos and Nundy previoulsy pleaded guilty to conspiracy to commit health care fraud. They are currently awaiting sentencing.
This case was investigated by the Federal Bureau of Investigation, U.S. Health and Human Services - Office of Inspector General, the Defense Criminal Investigative Service, the U.S. Air Force Office of Special Investigations, and the Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Mandy Riedel.
Orthopaedic and anesthesia providers to pay $3.2 million to settle false claim act allegationsRead the Press Release
ATLANTA - The U.S. Attorney’s Office for the Northern District of Georgia has announced that Georgia Bone & Joint (GBJ), Southern Bone & Joint a/k/a Summit Orthopaedic Surgery Center (Summit Surgery Center), Southern Crescent Anesthesiology, PC (SCA), Sentry Anesthesia Management, LLC (Sentry), and David LaGuardia (LaGuardia) agreed to pay $3.2 million to settle allegations that LaGuardia, Sentry, and SCA provided a free medical director to Summit Surgery Center in order to induce it to choose to perform more procedures at the surgery center rather than in the GBJ office; and that GBJ and LaGuardia caused the submission of false claims to Medicare for prescription drugs purchased outside of the United States and not approved by the U.S. Food and Drug Administration (FDA).
“Kickbacks should never play a role in medical decision-making,” said U.S. Attorney Byung J. “BJay” Pak. “It is critical to our health care system that patients seeking health care know that their providers’ recommendations are based on what is in the patient’s best interests and not influenced by illegal kickbacks or arrangements.”
“Decisions on where and how patients’ medical procedures are performed should never be made based on thinly veiled bribes, as was alleged in this matter,” said Derrick L. Jackson, Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. “Such alleged schemes will be aggressively investigated and prosecuted.”
“Abuses of the healthcare system destroy the basic trust between providers and patients, between taxpayers and government,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI and its federal partners make it a priority to make sure funds are not hijacked by those willing to misuse taxpayer dollars, thereby violating individuals who count on our healthcare programs for their medical needs.”
“This settlement sends a clear message to all healthcare providers that fraudulent activities intended to defraud federal benefit programs are a federal crime that carries serious consequences and will not be tolerated,” said U.S. Postal Service, Office of Inspector General Special Agent in Charge Imari Niles. “The USPS-OIG, along with our law enforcement partners, will continue to aggressively investigate those who engage in fraudulent activities intended to defraud federal benefit programs and the Postal Service.”
This civil settlement resolves a lawsuit filed in the U.S. District Court for the Northern District of Georgia by Sharon Kopko, former Practice Administrator for SBJ, under the qui tam, or whistleblower provisions of the False Claims Act. United States ex rel. Sharon Kopko v. Georgia Bone and Joint, et al., Civil Action No. 3: l 3-CV-067-TCB. Under the False Claims Act, private citizens may bring suit for false claims on behalf of the United States and share in any recovery obtained by the government; Ms. Kopko will receive a share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, the FBI and the U.S. Postal Service Office of Inspector General.
The civil settlement was reached by Assistant U.S. Attorneys Darcy Feuerzeig Coty and Neeli Ben-David.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Onondaga Woman Pleads Guilty to Methamphetamine-Related ChargeRead the Press Release
SYRACUSE, NEW YORK – Lindsay Creiman, age 37, of Clay, New York, pled guilty today to possessing pseudoephedrine, knowing it would be used in the manufacture of methamphetamine, announced United States Attorney Grant C. Jaquith, U.S. Drug Enforcement Administration (DEA) Special Agent in Charge James J. Hunt of the New York Division, and New York State Police Superintendent George P. Beach II.
As part of her guilty plea, Creiman admitted that on approximately 42 occasions between October 2015 and April 2017, she purchased pseudoephedrine pills from different drug stores in and around Onondaga County, New York, with an aggregate weight of approximately 91 grams. On approximately nine other occasions, Creiman attempted to purchase pseudoephedrine but was prevented from doing so, with the purchase being “blocked” by the pharmacy computers because she had exceeded store purchase limits. Creiman further admitted that she purchased the approximately 91 grams of pseudoephedrine knowing it was intended to be used in the manufacture of methamphetamine, and, in fact, gave the pills to others for that purpose, often receiving finished product methamphetamine, which she consumed.
Sentencing is scheduled for July 31, 2018, in Syracuse. The charge to which Creiman pled guilty carries a maximum term of imprisonment of 20 years, to be followed by a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by the U.S. Drug Enforcement Administration, the New York State Police (NYSP), the New York State Intelligence Center (NYSIC), and, and was prosecuted by Assistant U.S. Attorney Carl Eurenius.
Ohio Man Sentenced to Probation with Home Detention for Interfering with a Flight CrewRead the Press Release
PITTSBURGH, Pa – An Ohio man has been sentenced in federal court to three years probation with four months home detention on his conviction of interfering with the duties of a flight crew, United States Attorney Scott W. Brady announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Dwight D. Allen, age 56, of University Heights, Ohio.
According to the information presented to the court, on December 17, 2016, a Delta flight out of Pittsburgh, Pennsylvania, was heading to Columbus, Ohio, when the defendant, Dwight D. Allen, interfered with the performance of duties of a flight crew member or flight attendant of the aircraft, and lessened the ability of the member or attendant to perform those duties, by intimidating the flight attendant or flight crew member. Allen disregarded instructions to remain in his seat, and had to be physically restrained by attendants and passengers as the plane was returned to the gate due to the defendant’s aggressive behavior.
Assistant United States Attorney Paul E. Hull prosecuted this case on behalf of the government.
The United States Attorney commended the Federal Bureau of Investigation and Allegheny County Police Department for the investigation leading to a successful prosecution.
Newark Man Charged with Armed CarjackingsRead the Press Release
NEWARK, N.J. – A Newark man was charged today with committing two armed carjackings in Newark and North Bergen, New Jersey, U.S. Attorney Craig Carpenito announced.
Nifees Ingram, 32, was charged in two complaints with the carjackings and with using a firearm in furtherance of a crime of violence. He made his initial appearance this afternoon before U.S. Magistrate Judge James B. Clark III in Newark federal court.
According to documents filed in this case and statements made in court:
On March 4, 2018, Ingram contacted the owners of a 2005 Ford Mustang who had advertised the car for sale on Facebook. Ingram lured the sellers to a location in Newark, ostensibly to purchase the car. When the victims arrived at the location to sell the car, Ingram got into the driver’s seat and began to drive away with one of the victims still in the car. After he drove some distance away, Ingram showed the victim a handgun, and ordered the victim to get out of the car. Ingram then drove away in the car, which was later recovered in Newark.
On March 12, 2018, Ingram went to a residence in North Bergen, New Jersey, under the pretense of being a potential buyer for a 2007 Audi Q7 that the victim had posted for sale on Facebook. Ingram lured the victim from the home and asked the victim if he could take the vehicle for a test drive. Once in the car with the victim, Ingram displayed a handgun and refused to let the victim leave the car. Ingram then drove the victim from North Bergen to Newark and forced the victim to leave behind his cell phone and get out of the car. Ingram then fled with the car, which was later recovered in Newark.
The carjacking charges each carry a maximum of 15 years in prison, and the firearms charge carries a statutory mandatory minimum of 5 years in prison, consecutive to any other sentence imposed, and a statutory maximum term of life in prison.
The charge and allegations in the complaint are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
U.S. Attorney Carpenito credited special agents of the FBI, under the direction of Acting Special Agent in Charge Bradley W. Cohen; the Hudson County Prosecutor’s Office, under the direction of Prosecutor Esther Suarez; the North Bergen Police Department, under the direction of Chief William Dowd, and the Newark Department of Public Safety, under the direction of Anthony Ambrose, with the investigation leading to the charge.
The government is represented by Assistant U.S. Attorney Desiree Grace Latzer of the U.S. Attorney’s Office Violent Crimes Unit in Newark.
Defense counsel: Leticia Olivera Esq., Assistant Federal Public Defender, Newark
New Orleans Woman Pleads Guilty in Methamphetamine Trafficking ConspiracyRead the Press Release
U.S. Attorney Duane A. Evans announced that ANNA THOMPSON, age 31, of New Orleans, pled guilty today to participating in a methamphetamine distribution conspiracy throughout the New Orleans area. Specifically, THOMPSON pled guilty to conspiring to distribute and possess with intent to distribute 500 grams or more of a mixture of methamphetamine. THOMPSON faces a mandatory minimum sentence of 10 years in prison and a maximum life sentence, a fine of up to $10,000,000 and at least five years of supervised release.
U.S. District Judge Ivan L.R. Lemelle set sentencing for THOMPSON on June 27, 2018 at 2:00 p.m.
According to court documents, during the timeframe of this conspiracy, codefendant Steven LYONS was a major methamphetamine distributor in the New Orleans area. LYONS obtained methamphetamine by U.S. Mail and other means from several sources, including codefendants Carlos Mario CANTU-COX and Christopher CANTU-COX in Texas (who also supplied THOMPSON); Eric WILLIS in Texas; Trung PHAM in California; and Garret TEMPLETON in Louisiana. Codefendants Tommy WELLS, Clark McALPIN, Dwayne CLAUSE, and Dawn CONRAVEY acted as sellers or brokers of methamphetamine for LYONS in the New Orleans area.
U.S. Attorney Evans praised the work of the United States Postal Inspection Service, Louisiana State Police, Amtrak Police, and St. Bernard Parish Sheriff’s Office in investigating this matter. Assistant United States Attorney Brandon Long is in charge of the prosecution.
Mustang Woman Sentenced to More Than Three Years in Prison for Fraud and Tax CrimesRead the Press Release
OKLAHOMA CITY – VANESSA L. POLLARD, of Mustang, Oklahoma, has been sentenced to 37 months in prison for wire fraud and signing a false federal income tax return in connection with a $1.3 million embezzlement, announced Robert J. Troester, Acting United States Attorney for the Western District of Oklahoma.
On August 8, 2017, Pollard was charged by information with one count of wire fraud and one count of signing a false federal income tax return. According to the charges, Pollard worked for an insurance agency in Yukon, Oklahoma, as a bookkeeper from April 1999 until early August 2016. As part of her job, she reviewed monthly bank statements, made entries in an internal accounting system, and reconciled those records with a business checking account at Yukon National Bank. She was accused of writing unauthorized checks and making unauthorized interstate wire transfers from the business checking account to pay her personal credit card accounts. The information also alleged that she altered bank statements to conceal these payments from the agency’s management.
On August 30, 2017, Pollard pleaded guilty to transmitting $3,178 through interstate wires in January 2014 with the intent to defraud her employer, the insurance agency. She also pleaded guilty to signing a false tax return. In particular, she admitted that on May 13, 2013, she signed a personal federal tax return for the 2012 calendar year that she knew was false because it reported only $50,736 in total income when she knew her 2012 income was substantially higher.
Today U.S. District Judge Vicki Miles-LaGrange sentenced Pollard to 37 months in prison, to be followed by three years of supervised release. As part of the sentence, she must pay restitution of $1,239,822.95 to her former employer, $25,000 to Travelers Casualty Insurance, and $127,287 to the Internal Revenue Service. In a plea agreement, she agreed to forfeit property purchased with funds traceable to her embezzlement, including her house in Mustang, two trucks, a sports car, three motorcycles, a boat, two jet skis, and a retirement account.
This case is the result of an investigation by the Internal Revenue Service–Criminal Investigations and the United States Secret Service. The case was prosecuted by Assistant U.S. Attorney Mark R. Stoneman.
Reference is made to the information and other public filings for further information.
Multi-Convicted Felon Sentenced for Possession of A FirearmRead the Press Release
Charles E. Peeler, United States Attorney for the Middle District of Georgia, announces that on March 29, 2018, Senior United States District Court Judge W. Louis Sands sentenced Justin Norris, age 30, of Albany, GA, to 115 months imprisonment for the offense of possession of a firearm by convicted felon. Mr. Norris previously plead guilty to this charge and admitted the following facts were true:
On September 28, 2016, agents with the Lee County Sheriff’s Office used a previously reliable confidential informant (CI) to conduct a transaction with Mr. Norris. Mr. Norris had informed the CI that he had a Taurus Judge handgun for sale. Agents arranged for the CI to make a series of audio-recorded phone calls to Mr. Norris to arrange the details of the transaction. Mr. Norris agreed to sell the CI a gram of methamphetamine, the firearm and 100 rounds of ammunition for $410. During these conversations, Mr. Norris advised the CI that “Bubba” had stolen the ammunition and that he had bought it from Bubba for 1 gram of meth.
During the last recorded call before the two met at a gas station, Mr. Norris advised that he had just thrown the meth out the window after seeing a police officer in the vicinity. The two met at a gas station on Philema Road in Lee County, Georgia. The CI was equipped with an audio/video recording device which captured the meeting. During the meeting, the CI provided Mr. Norris the money and Mr. Norris provided to the CI the gun and ammo. The CI left the area and returned to meet with agents, who obtained the gun and ammo from him. A GCIC check of the gun’s serial number revealed it had been reported stolen in Dougherty County on 9/25/2016.
Prior to this latest offense, Mr. Norris was convicted and sentenced in these previous felony cases:
- Worth County Superior Court Case Number 2014 CR128—Theft by Taking (Motor Vehicle) –May 28, 2015;
- Worth County Superior Court Case Number 2014CR17—Burglary and Theft By Taking (Motor Vehicle)—January 15, 2014; and
- Dougherty County Superior Court Case number 2011R169—Burglary—June 28, 2012.
- Worth County Superior Court Case Number 09CR06—Possession of Marijuana with Intent to Distribute on January 14, 2009-- sentenced pursuant to the Georgia First Offender’s Act.
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 case was investigated by the ATF, Columbus Division and the Lee County Sheriff’s Office. 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.
Michigan Home Health Agency Assistant Director of Nursing Sentenced to Three Years in Prison for Role in $1.6 Million Health Care Fraud SchemeRead the Press Release
The assistant director of nursing of a Michigan home health agency was sentenced to 36 months in prison today for his role in a scheme involving approximately $1.6 million in fraudulent Medicare claims for home health services that were procured through the payment of kickbacks, and that were medically unnecessary and not provided.
Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Matthew J. Schneider of the Eastern District of Michigan, Special Agent in Charge Timothy R. Slater of the FBI’s Detroit Field Office and Special Agent in Charge Lamont Pugh III of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Chicago Regional Office made the announcement.
Juan Yrorita, 63, of Sterling Heights, Michigan, was sentenced by U.S. District Judge Gershwin A. Drain of the Eastern District of Michigan. Judge Drain also ordered Yrorita to pay $1,524,951.88 in restitution, jointly and severally with his co-conspirators, and to forfeit $49,823.41. After four days of trial, Yrorita pleaded guilty on Nov. 29, 2017 to one count of conspiracy to commit health care fraud and wire fraud.
As part of his guilty plea, Yrorita admitted that his co-conspirators at Anointed Care Services (Anointed), a Detroit-area home health agency, paid kickbacks to recruit Medicare beneficiaries. Yrorita further admitted that as Anointed’s assistant director of nursing, he falsified medical records to support Anointed’s fraudulent claims to Medicare for services that were medically unnecessary and never provided.
According to the evidence at trial, Anointed submitted approximately $1.6 million in false and fraudulent claims to Medicare.
Yrorita was charged along with Editha Manzano, 70, of Troy, Michigan; Liberty Jaramillo, 67, also of Troy; Roberto Quizon, M.D., 71, of Bloomfield Hills, Michigan; and Victoria Gallardo-Navarra, M.D., 74, also of Bloomfield Hills, in an indictment returned on Sept. 1, 2016. Jaramillo and Quizon pleaded guilty and are pending sentencing. Gallardo-Navarra was acquitted, and Manzano was convicted after trial and is pending sentencing.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Eastern District of Michigan. Fraud Section Trial Attorneys Jacob Foster and Rebecca Szucs prosecuted the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Mexican Citizen Admits Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Amilcar Hernandez-Zunun, age 27, and a citizen of Mexico, pled guilty today to illegally re-entering the United States.
The announcement was made by United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
Hernandez-Zunun was removed from the United States to Mexico on November 7, 2012. On February 21, 2018, an ICE Officer arrested him in Cohoes, New York. Hernandez-Zunun admitted that he returned to the United States without permission following the 2012 removal.
Hernandez-Zunun faces up to 2 years in prison when he is sentenced by Senior United States District Judge Lawrence E. Kahn on July 25 2018. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines, and other factors.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Medina County man indicted for armed robbery of bank in GraftonRead the Press Release
A Medina County man was indicted for the armed robbery of a bank in Grafton.
Matthew J. Kroffke, 37, brandished a firearm when he robbed the Chemical Bank located at 351 North Main Street on Feb. 23, according to the indictment.
This case was investigated by the FBI and is being prosecuted by Assistant U.S. Attorney Scott Zarzycki.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Maryland State Senator Pleads Guilty to Wire FraudRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland –Maryland State Senator Nathaniel Thomas Oaks, age 71, of Baltimore, Maryland, pleaded guilty today to one count of wire fraud and one count of honest services wire fraud.
The guilty plea was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
According to the plea agreement, Oaks was a Maryland State Delegate representing District 41 (Baltimore City) from 1994 until being appointed to the Maryland Senate in February 2017, representing the same District.
According to the statement of facts in support of the plea agreement, on September 21, 2015, a cooperating individual introduced Oaks to an FBI confidential human source, “Mike Henley,” who portrayed himself as an out-of-town businessperson interested in obtaining contracts in the City of Baltimore. The meeting took place at a restaurant in Pikesville, Maryland, and was consensually recorded by Henley. During the meeting, Oaks offered to assist Henley with business development in Maryland.
During the months following the September 21, 2015 meeting between Henley and Oaks, Henley consensually recorded numerous telephone and in-person conversations with Oaks during which they discussed possible development and business-related opportunities that may be available to Henley in Maryland. One such opportunity was a United States Department of Housing and Urban Development (HUD) project (the Project) that Henley told Oaks that he was interested in developing in the City. Oaks told Henley that he wanted to help with the HUD project.
According to the plea agreement, between the months of April 2016 and July 2016, Oaks issued two letters on his official House of Delegates letterhead which contained materially false and fraudulent representations to a person whom he believed to be a HUD official in order to assist Henley in obtaining federal grant funds from HUD. Henley paid Oaks $10,300 for his assistance.
According to the statement of facts in support of the plea agreement, on September 22, 2016, Henley paid Oaks $5,000 in exchange for Oaks’ agreement to file a bond bill request with the Maryland Department of Legislative Services (DLS) seeking $250,000 in state funds for the Project. Oaks filed the bill request with DLS later that day. On November 21, 2016, Oaks forwarded an email to Henley that had been sent to him by DLS. The email attached the draft of the bill to establish a $250,000 bond to be used for the Project.
All the money paid to Oaks by Henley was supplied by the FBI and the meetings were recorded using audio/video recording equipment.
On or about January 9, 2017, Oaks confessed to two FBI agents that he has accepted the first two payments from Henley in exchange for issuing two letters to HUD on his official House of Delegates letterhead and that he knew the letters contained materially false statements in an effort to assist Henley with his housing project. Oaks further confessed to the agents that he had accepted the third payment from Henley in exchange for filing a request for DLS to draft the Bond Bill Legislation.
Oaks agreed to cooperate with the FBI in an investigation of Person #1 for possible violations of federal criminal laws. As part of that cooperation, and at the direction of the FBI, Oaks covertly recorded his telephone conversations and in-person meetings with Person #1 beginning on January 9, 2017 and continuing until March 30, 2017.
According to the plea agreement, on or about March 17, 2017, without recording or disclosing the existence of the conversation to the FBI, Oaks approached Person #1 at a bar in Annapolis and told him “what we talked about, just say no.” On March 30, 2017, Oaks again approached Person #1 in the hallway of a State government building in Annapolis and said “I’m going to ask you for something, just say no.” These statements were intended to dissuade Person #1 from engaging in the activity that was the subject of the criminal investigation and which activity Oaks and Person #1 had discussed in a recorded conversation earlier that day.
As a result of Oaks’ deliberate and intentional conduct in tipping off Person #1, the covert investigation of Person #1 and possibly other politicians was no longer viable.
Oaks faces a maximum sentence of 20 years in prison for the wire fraud count and 20 years in prison for the honest services wire fraud count. Oaks is scheduled to be sentenced July 17, 2018 at 11 a.m. in U.S. District Court in Baltimore.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Kathleen O. Gavin and Leo J. Wise, who are prosecuting the case.
Man Who Concealed Service in Military Unit Involved in Srebrenica Massacre Sentenced for Immigration FraudRead the Press Release
Charlotte, N.C. – A Bosnian Serb residing in North Carolina was sentenced to 18 months in prison today for his criminal conviction of obtaining a Permanent Resident Card (I-551), commonly referred to as a “green card,” by making materially false claims and statements on his initial application for refugee status, which served as the basis for obtaining Lawful Permanent Resident status.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney R. Andrew Murray for the Western District of North Carolina and Deputy Director Thomas D. Homan of U.S. Immigration and Customs Enforcement (ICE) made the announcement.
Milan Trisic, 55, who was residing in Charlotte, North Carolina, was sentenced by Judge Max O. Cogburn Jr. of the Western District of North Carolina. Trisic previously pleaded guilty on Dec.18, 2017, to possession of unlawfully obtained documents. Pursuant to an Order issued by Judge Coburn, upon completion of his term of imprisonment, Trisic will be transferred to ICE custody for removal to Bosnia and Herzegovina.
“Those who wish to live in the United States ought to respect our laws, support our national security, and pursue residency legally and honestly. Anything less is inexcusable,” said Attorney General Sessions. “The Department of Justice will not hesitate to take action against criminals who seek to come here on the basis of fraud and take advantage of our generous immigration system. I want to thank our Homeland Security Investigations (HSI) special agents and DOJ attorneys for all of their hard work pursuing justice in this case.”
“Using lies and deceit, Trisic exploited our legal immigration system to enter our country and later to become a permanent resident,” said U.S. Attorney Murray. “The sentence imposed by the Court is just punishment for Trisic’s blatant disregard for our nation’s immigration laws. My office is committed to protecting the integrity of our legal immigration process and prosecuting those who commit immigration fraud.”
“The men and women of ICE will continue to pursue those who violate the integrity of our immigration system to hide from the human rights violations they have committed,” said ICE Deputy Director Homan. “ICE Homeland Security Investigations in Charlotte, supported by ICE’s Human Rights Violators and War Crimes Center, worked for many years to pursue this case and uncover the facts about the human rights violations this individual committed. We thank our many partners at the Department of Justice for their tireless work in prosecuting this case. With this case and many others like it, the United States has demonstrated that we will not serve as a safe haven for those who commit egregious acts that violate basic human rights.”
According to the admissions made in connection with his plea, Trisic, an ethnic Serb with Bosnian citizenship, is a lawful permanent resident of the United States living in North Carolina. On Nov. 3, 2016, Trisic possessed a green card that was unlawfully obtained. In response to questions on his legal permanent resident application, Trisic knowingly concealed his military service in the Bratunac Brigade, a unit in the Army of the Serb Republic; concealed his criminal activity in Bosnia and Herzegovina; and lied about his whereabouts during the war in Bosnia and Herzegovina in the early and mid-1990s.
As part of his plea of guilty, Trisic admitted that he served in the Army of the Serb Republic as a member of the Bratunac Brigade during various tours of duty between April 1992 and January 1996, at a time when Bosnia and Herzegovina was in the midst of a civil war. Due to its proximity to Serbia, forces both aligned with and from Serbia began a violent ethnic expulsion campaign in 1992 against the non-Serbian population in and around Bratunac. Trisic admitted that he engaged in various unlawful activities while serving with the Bratunac Brigade, such as the unlawful beating, detention and transportation of Muslim prisoners. Additionally, Trisic admitted that the Bratunac Brigade, operating primarily in eastern Bosnia and Herzegovina, was one of the military units responsible for the July 1995 Srebrenica massacre that resulted in the deaths of between 7,000 and 8,000 Bosnian Muslim men.
Trisic also admitted that he knowingly lied about his whereabouts during the war in Bosnia and Herzegovina. In order to obtain refugee status, Trisic falsely claimed that he resided in Serbia during the war, when in fact he actually resided in Bratunac, Bosnia and Herzegovina, where he served as part of the Bratunac Brigade. Trisic later used his illegally obtained status as a refugee to unlawfully obtain permanent resident status in the United States.
This case is the result of an investigation conducted by ICE’s HSI and supported by the Human Rights Violators and War Crimes Center. Trial Attorneys Frank G. Rangoussis and Ann Marie E. Ursini of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Kenneth Smith of the Western District of North Carolina are prosecuting the case.
Man Sentenced to Federal Prison for Second Federal Felony for Unlawfully Possessing a Gun or AmmunitionRead the Press Release
A convicted felon who unlawfully possessed ammunition was sentenced today to more than two years in federal prison.
Donald Joseph Boyce, age 59, from Guttenberg, Iowa, received the prison term after a September 5, 2017, guilty plea to possession of ammunition by a felon. At the guilty plea, Boyce admitted that on March 28, 2017, he possessed .303 caliber ammunition. Boyce had previously been convicted of a state felony drug manufacturing offense in 2002 and the federal felony offense of being an unlawful drug user in possession of a firearm in 2003. Officers from the Clayton County Sheriff’s Office found the ammunition in Boyce’s car during a traffic stop. They also located an Enfield .303 caliber rifle in the backseat. Boyce asked the officers to throw the gun in the river because he was felon and would be facing significant jail time. Boyce had methamphetamine in his pocket and was under the influence of a controlled substance at the time of his traffic stop.
Boyce was sentenced in Cedar Rapids by United States District Court Judge Linda R. Reade. Boyce was sentenced to 30 months’ imprisonment. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Boyce 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 Emily K. Nydle and investigated by the Clayton County Sheriff’s Department and the Bureau of Alcohol, Tobacco, and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-cr-1019.
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Man Previously Convicted of Domestic Abuse Sentenced to Federal Prison for Unlawfully Possessing GunRead the Press Release
A Linn County man who unlawfully possessed a rifle as a domestic violence misdemeanant was sentenced March 28, 2018, to more than two years in federal prison.
Nathan Lee Lyon, age 33, from Cedar Rapids, Iowa, received the prison term after a November 9, 2017, guilty plea to possession of a firearm by a prohibited person. At the guilty plea, Lyon admitted that on May 10, 2017, he unlawfully possessed a rifle. Lyon had previously been convicted of assault causing bodily injury, a misdemeanor crime of domestic violence. Information at sentencing established that Lyon was driving a stolen a truck on May 10 when police officers stopped him. Lyon had placed the stolen firearm in the back of the truck. The firearm had been stolen from another person other than the owner of the truck.
Lyon was sentenced in Cedar Rapids by United States District Court Chief Judge Leonard T. Strand. Lyon was sentenced to 30 months’ imprisonment. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
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.
Lyon is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Special Assistant United States Attorney Drew O. Inman and investigated by the Cedar Rapids Police Department, Linn County Sheriff’s Office, Scott County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-CR-75.
Follow us on Twitter @USAO_NDIA.
Louisville Skilled Nursing Facility to Pay $5,191,470. to Settle False Claims AllegationsRead the Press Release
LOUISVILLE, Ky. – New Oaklawn Investments, LLC, d/b/a Oaklawn Health and Rehabilitation Center and Elmcroft Senior Living, Inc., a Louisville based skilled nursing facility, agreed to pay $5,191,470 to resolve allegations that it violated the False Claims Act by submitting false claims for payment to the Medicare Program, announced United States Attorney Russell M. Coleman.
“Today’s settlement is the result of this office working in a coordinated effort with Medicare’s Unified Program Integrity Contractor, AdvanceMed, to ensure that taxpayer dollars are not misspent – especially when providing vital services to our senior community,” stated United States Attorney Russell Coleman. “The more than 5 million dollar settlement underscores our continued commitment to uncovering health care fraud.”
Oaklawn is a for-profit skilled nursing facility with 128 beds located in eastern Jefferson County, Kentucky, that was managed by Elmcroft.
The government contends that during the period from February 26, 2007 through February 26, 2010, Oaklawn improperly billed Medicare for patient rehabilitation services at the resource utilization (“RUG”) Code Series Rehabilitation Ultra High and Rehabilitation Very High, for certain services that were not reasonably or medically necessary.
Skilled nursing facilities use a clinical assessment tool known as the Resident Assessment Instrument to identify residents’ clinical condition, including strengths, weaknesses, preferences, functional status and expected use of services. Under Medicare Part A, skilled nursing facilities are required to classify residents into RUGs based on assessment data from the resident assessment. Therapy RUGs are divided into five levels of therapy (ultra high, very high, high, medium, or low), with Medicare generally paying the most for “ultra high” therapy.
The matter was handled by Assistant United States Attorney Benjamin S. Schecter with assistance from Medicare’s Unified Program Integrity Contractor, AdvanceMed.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
oaklawn_ettlement_agreement-_signed.pdfLaconia Man Pleads Guilty to Fentanyl TraffickingRead the Press Release
CONCORD - Robert Saint John, 31, of Laconia pleaded guilty in federal court to fentanyl trafficking charges, United States Attorney Scott W. Murray announced today.
According to court documents and statements made in court, on May 31, 2017, the defendant and two other men pooled their money for the purpose of buying drugs. They drove together from Belmont, New Hampshire, to Lawrence, Massachusetts. In Lawrence, the men met with their drug supplier, purchased a quantity of fentanyl, and began to drive back to New Hampshire. On the highway near Derry, New Hampshire, the New Hampshire State Police conducted a traffic stop and seized a package containing approximately 111 grams of fentanyl.
Saint John pleaded guilty to one count of possession of fentanyl with intent to distribute and one count of conspiracy to distribute, and possess with intent to distribute, fentanyl. He is scheduled to be sentenced on July 17, 2018.
“Stopping the deadly flow of fentanyl into New Hampshire is a high priority of the U.S. Attorney’s Office,” said U.S. Attorney Murray. “Fentanyl has caused many overdose deaths in New Hampshire. In order to protect our community, we will continue to work closely with all of our law enforcement partners to identify and prosecute those who are responsible for distributing opioids in the Granite State.”
“With today’s guilty plea, Mr. Saint John is accepting responsibility for peddling this deadly synthetic opioid, responsible for killing so many - at an alarming rate - across New Hampshire. However, there’s much more work to be done,” said Harold H. Shaw, Special Agent in Charge, FBI Boston Division.“ Mr. Saint John is only one of many, fueling the flow of illegal drugs into our neighborhoods. Together, with our law enforcement partners, the FBI will continue to do everything we possibly can to root out drug traffickers who seek to exploit vulnerable people suffering from addiction.”
This matter was investigated by the FBI, the New Hampshire State Police, and the Laconia Police Department. The case is being prosecuted by Assistant U.S. Attorney Shane B. Kelbley.
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KC-Area Man Sentenced for Four Bank RobberiesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo.-area man was sentenced in federal court today for robbing four banks in Independence, Mo., Liberty, Mo., and Kansas City, Mo., over a span of five months.
Tam Henry Holmes, 57, of the Kansas City metropolitan area, was sentenced by U.S. District Judge Gary A. Fenner to 10 years in federal prison without parole. The court also ordered Holmes to pay $25,005 in restitution.
On Oct. 23, 2017, Holmes pleaded guilty to four counts of bank robbery.
Holmes robbed Central Bank of Kansas City, 2301 Independence Ave., Kansas City, Mo., on Nov. 16, 2016. Holmes approached the teller counter and placed a note up against the bullet-proof glass and whispered “700.” The teller told investigators she could not read what was printed on the note, but Holmes continued to whisper “700” and she realized it was a robbery. The teller turned over $450 to Holmes, who then left the bank.
On April 1, 2017, Holmes robbed Bank of the West, 850 S. 291 Hwy., Liberty. When he entered the bank, Holmes held up a spiral notebook containing hand-written notations. The teller told investigators that she read the first couple of lines, which she recalled were, “this is a robbery, give me all your large bills.” The teller gathered money from her drawer and gave it to Holmes and he left the bank. The bank reported a loss of $8,300.
On April 3, 2017, Holmes robbed Greater Kansas City Public Safety Credit Union, 19341 E. US 40 Hwy., Independence. Holmes walked up to a teller counter and showed the teller two hand-written notes on two yellow Post-it notes. The notes said, “this is a robbery. Don’t pull any dye packs, bail or alarms. I know where you live.” The teller removed cash from her drawer and handed it to Holmes, and he left the bank. The credit union reported a loss of $12,205.
On April 15, 2017, Holmes robbed First Federal Bank of Kansas City, 3500 Noland Rd., Independence. Holmes held up a handwritten note that said, “give me all the money, hurry up, or I will hurt you.” The teller opened her drawer and handed Holmes $100 and $50 bills. She then stared at Holmes, who stated, “hurry up or I’ll do what the note says.” The teller then gave Holmes $20, $10 and $5 bills. Holmes took the money, put it in his pockets and walked out of the bank. The bank reported a loss of $4,050.
This case was prosecuted by Assistant U.S. Attorney Bradley K. Kavanaugh. It was investigated by the FBI.
KC Paramedic Indicted for Stealing Fentanyl, Morphine from AmbulancesRead the Press Release
KANSAS CITY, Mo. – A Kansas City, Mo., Fire Department paramedic has been indicted by a federal grand jury for stealing fentanyl and morphine from ambulances and replacing fentanyl with another substance.
Michael L. Fostich, 36, of Kansas City, Mo., was charged in a two-count indictment returned under seal by a federal grand jury in Kansas City, Mo., on Tuesday, March 27, 2018. That indictment was unsealed and made public today upon Fostich’s arrest and initial court appearance.
Fostich is charged with one count of obtaining a controlled substance by fraud (related to the theft of fentanyl and morphine) and one count of tampering with a consumer product (related to the replacement of fentanyl with another substance).
Fostich was employed at the Kansas City Fire Department (KCFD) as a paramedic from August 2014 to Dec. 11, 2016. Fostich had access to fentanyl and morphine, which were stored in sealed narcotics boxes and locked in safes on KCFD ambulances. Each sealed narcotics box contained two vials of fentanyl, each containing 100 micrograms of liquid fentanyl, two syringes of morphine, each containing 10 milligrams of liquid morphine, and two vials containing 5 milligrams of liquid midazolam. As a paramedic, Fostich was able to unlock the electronic safe and open the sealed narcotics boxes in order to administer controlled substances to patients, if necessary.
The federal indictment alleges that Fostich engaged in a scheme from Jan. 1, 2016, through Dec. 11, 2016, to fraudulently obtain fentanyl and morphine. As part of the scheme, Fostich allegedly prepared patient care records and state reporting forms that contained misrepresentations regarding his use of fentanyl and morphine.
According to the indictment, Fostich reported he was responsible for the use of 806 doses of fentanyl, which accounted for approximately 39 percent of all of the KCFD’s total reported use during that period of time. Fostich also reported he was responsible for the use of 636 doses of morphine, which accounted for approximately 63 percent of all of the KCFD’s total reported use of morphine during that period of time.
The federal indictment also alleges that Fostich tampered with a container of fentanyl on Dec. 11, 2016. Fostich removed fentanyl from the vials contained in a KCFD narcotics box and replaced them with another solution in the vials, the indictment says, with reckless disregard for the risk that another person would be placed in danger of death or bodily injury. Fostich allegedly placed the vials back in the narcotics box, attempted to reseal the narcotics box, and then placed the narcotics box back in a safe located on a KCFD ambulance.
The charges contained in this indictment are 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. Attorneys Jess E. Michaelsen and Jeffrey Q. McCarther. It was investigated by the Kansas City, Mo., Police Department, the FBI and the U.S. Food and Drug Administration – Office of Criminal Investigation.
Justice Department Reaches Agreement with the South Carolina Department of Corrections to Provide Effective Communication to Inmates with Hearing DisabilitiesRead the Press Release
The Justice Department today reached a settlement agreement with the South Carolina Department of Corrections (SCDC), to ensure that inmates with hearing disabilities are provided effective communication and the opportunity to participate equally in SCDC’s services, programs, and activities.
The settlement agreement resolves complaints under the Americans with Disabilities Act (ADA) in which inmates with hearing disabilities alleged that SCDC failed to provide them with sign language interpreters and other auxiliary aids and services, and excluded their participation in vocational and religious programs because they are deaf. SCDC cooperated with the Department throughout the investigation.
Among the terms of the agreement, inmates with hearing disabilities will not be excluded from participating in SCDC’s programs including vocational and religious services. The agreement also requires SCDC to provide services equal to those provided to inmates who are not deaf including auxiliary aides and services and qualified interpreters, in a timely manner, to ensure effective communication with the SCDC inmates with hearing disabilities. SCDC will also provide telecommunication services so that inmates with hearing disabilities may communicate with their families and attorneys the same as other inmates.
“SCDC cooperated fully with this investigation and has committed to ensuring effective communication and providing equal access to its programs and services for its inmates with hearing disabilities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We congratulate SCDC for recognizing its obligations and moving promptly to take this step.”
“Access to services and programming is not only a right under the ADA for the inmates who are deaf and hard of hearing, in this instance, these services will enable the inmates to improve their job skills and better ready themselves for a law-abiding life,” said U.S. Attorney Beth Drake. “That’s good corrections policy that benefits the whole state.”
This agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments.
For more information about the ADA, today’s agreement, individuals may access the ADA Web page at http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
Justice Department Reaches Agreement with the South Carolina Department of Corrections to Provide Effective Communication to Inmates with Hearing DisabilitiesRead the Press Release
NOTE: The settlement agreement can be found here.
WASHINGTON – The Justice Department today reached a settlement agreement with the South Carolina Department of Corrections (SCDC), to ensure that inmates with hearing disabilities are provided effective communication and the opportunity to participate equally in SCDC’s services, programs, and activities.
The settlement agreement resolves complaints under the Americans with Disabilities Act (ADA) in which inmates with hearing disabilities alleged that SCDC failed to provide them with sign language interpreters and other auxiliary aids and services, and excluded their participation in vocational and religious programs because they are deaf. SCDC cooperated with the Department throughout the investigation.
Among the terms of the agreement, inmates with hearing disabilities will not be excluded from participating in SCDC’s programs including vocational and religious services. The agreement also requires SCDC to provide services equal to those provided to inmates who are not deaf including auxiliary aides and services and qualified interpreters, in a timely manner, to ensure effective communication with the SCDC inmates with hearing disabilities. SCDC will also provide telecommunication services so that inmates with hearing disabilities may communicate with their families and attorneys the same as other inmates.
“SCDC cooperated fully with this investigation and has committed to ensuring effective communication and providing equal access to its programs and services for its inmates with hearing disabilities,” said Acting Assistant Attorney General John Gore of the Civil Rights Division. “We congratulate SCDC for recognizing its obligations and moving promptly to take this step.”
“Access to services and programming is not only a right under the ADA for the inmates who are deaf and hard of hearing, in this instance, these services will enable the inmates to improve their job skills and better ready themselves for a law-abiding life,” said U.S. Attorney Beth Drake. “That’s good corrections policy that benefits the whole state.”
This agreement was reached under Title II of the ADA, which prohibits discrimination against individuals with disabilities by state and local governments.
For more information about the ADA, today’s agreement, individuals may access the ADA Web page at http://www.ada.gov or call the toll-free ADA Information Line at (800) 514-0301 or (800) 514-0383 (TTY).
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Inmate Imprisoned for Robberies is Charged with 2015 Robbery of North Fayette Township Jared Jewelry StoreRead the Press Release
PITTSBURGH, Pa. – An inmate who is now serving a prison sentence at FCI McKean has been indicted by a federal grand jury in Pittsburgh, Pennsylvania, on charges of robbing a Pittsburgh-area Jared Jewelry store in 2015, United States Attorney Scott W. Brady announced today.
The one-count indictment, returned on March 28, named Lonnie James Moton, age 27, formerly of Detroit, Michigan.
According to the indictment, on October 23, 2015, Moton robbed Jared-The Galleria of Jewelry located at The Pointe in North Fayette Township. Moton is currently serving a sentence at FCI McKean for two other robberies he committed in 2015.
The law provides for a maximum total sentence of 20 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shaun E. Sweeney is prosecuting this case on behalf of the government.
The Federal Bureau of Investigation and the North Fayette Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Inland Empire Man Arrested and Charged in Federal Court for Setting a Fire in Joshua Tree National ParkRead the Press Release
RIVERSIDE – A Twentynine Palms man appeared in federal court yesterday afternoon on a federal charge alleging that he illegally started the Oasis of Mara/Joshua Tree Fire, which damaged historic trees and other National Park resources in a 2.5-acre area behind the Oasis Visitor Center in Joshua Tree National Park on Monday night, March 26, 2018.
According to the criminal complaint filed Wednesday afternoon, National Park Service Law Enforcement Rangers arrested George William Graham, 26, of Twentynine Palms, at the scene of the fire. Graham was observed watching the blaze and admitted to law enforcement officers that he started the fire, which consumed a number of historic trees and other National Park Service lands and natural resources.
According to court records, Graham was known both to the San Bernardino Sheriff’s Department and the National Park Service as a California arson parolee, with prior law-enforcement contacts with both California and federal authorities.
Federal prosecutors filed a criminal complaint against Graham, which charges him with unlawfully setting timber afire, a felony offense punishable by up to five years of imprisonment and a fine of up to $250,000. Graham is detained in federal custody pending his next court appearance on April 11, 2018.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation is being conducted by the National Park Service, with assistance from the United States Bureau of Land Management, the San Bernardino Sheriff’s Department, and the San Bernardino County Fire Department.
The case is being prosecuted by Assistant United States Attorney Adam P. Schleifer of the General Crimes section.
Humboldt County Resident Indicted for Alleged Bank Robberies and Hobbs Act RobberyRead the Press Release
SAN FRANCISCO – A federal grand jury indicted Harwood Francis McCovey for his alleged role in four bank robberies and the armed robbery of a Shell Gas Station in Humboldt County, announced Acting United States Attorney Alex. G. Tse and Federal Bureau of Investigation Special Agent in Charge John F. Bennett.
According to the indictment, in the summer of 2016, McCovey, 33, of Hoopa, Calif., committed four bank robberies and a robbery of a Shell Gas Station. McCovey is alleged to have used a dangerous weapon in the commission of each robbery. The alleged robberies occurred on the following dates and locations:
- July 20, 2016 – Bank in Eureka, CA
- July 27, 2016 – Credit union in Eureka, CA
- July 31, 2016 – Shell Gas Station in McKinleyville, CA
- August 4, 2016 – Credit union in Eureka, CA
- August 12, 2016 – Bank in Fortuna, CA
In sum, McCovey was charged with four counts of armed bank robbery, in violation of 18 U.S.C. § 2113(a) and (d), and one count of robbery affecting interstate commerce (Hobbs Act robbery), in violation of 18 U.S.C. § 1951(a).
An indictment merely alleges that crimes have been committed, and the defendant is presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendant faces a maximum statutory penalty of 25 years in prison for each bank robbery and 20 years in prison for the Hobbs Act robbery charge. Additional fines, forfeitures, restitution, and special assessments also may be imposed. However, any sentence after conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
The defendant currently is in state custody and will be transferred to federal custody to appear on these charges. A hearing for defendant’s arraignment has not yet been scheduled.
Assistant U.S. Attorney Randy Leonard is prosecuting the case with the assistance of Marina Ponomarchuk. The prosecution is the result of investigations by the Eureka Police Department, the Fortuna Police Department, and the Humboldt County Sheriff’s Office with support from the Federal Bureau of Investigation’s Eureka Resident Agency.
Houston Physician and Pain Management Clinic Owner Convicted of Running “Pill Mill” That Provided Unlawful Prescriptions for Millions of Doses of Opioids and Other Controlled SubstancesRead the Press Release
A federal jury found a Houston physician and the owner of a pain management clinic guilty today for their roles in running a “pill mill” that provided tens of thousands of unlawful prescriptions for millions of doses of opioids and other controlled substances.
Attorney General Jeff Sessions, Acting Assistant Attorney General John P. Cronan of the Justice Department’s Criminal Division, U.S. Attorney Ryan K. Patrick of the Southern District of Texas and Special Agent in Charge Will R. Glaspy of the Drug Enforcement Administration’s (DEA) Houston Division made the announcement.
After a nine-day trial, Gazelle Craig, D.O., 41, and Shane Faithful, 48, both of Houston, Texas, were convicted of one count of conspiracy to unlawfully distribute controlled substances and three counts of unlawfully distributing and dispensing controlled substances. A sentencing date has not yet been scheduled before U.S. District Judge David Hittner of the Southern District of Texas, who presided over the trial. Both defendants were remanded into the custody of the U.S. Marshal’s Service.
“Our great country is currently in the midst of the deadliest drug crisis in our history,” said Attorney General Sessions. “Sadly, even some trusted medical professionals like doctors, nurses and pharmacists have chosen to violate their oaths and exploit this crisis for cash. The consequences have been devastating. In this case, tens of thousands of pills flooded our streets because of the defendants’ actions. We will never know for certain the scale of the damage done. We do know that justice has been served, and so I want to thank everyone who helped secure this conviction, including the DEA and Department of Justice Trial Attorneys Scott Armstrong and Devon Helfmeyer. This conviction will not only help stop the diversion of prescription drugs, it will send a message to every would-be fraudster in America.”
According to evidence presented at trial, from March 2015 through July 2017, Craig, a licensed doctor, and Faithful, the clinic owner, ran Gulfton Community Health Center (Gulfton), which operated as an illegal pill mill. The evidence showed that Craig unlawfully wrote approximately 18,252 prescriptions for over 2.1 million dosage units of hydrocodone, a Schedule II controlled substance, and approximately 15,649 prescriptions for over 1.3 million dosage units of carisporodal, a Schedule IV controlled substance. The combination of hydrocodone and carisoprodol is a dangerous drug cocktail with no known medical benefit, the evidence showed.
The trial evidence showed that Craig issued unlawful prescriptions for controlled substances to as many as 60 patients a day. “Crew leaders” ferried numerous patients to Gulfton so that Craig could provide them with unlawful prescriptions for controlled substances. Faithful and Craig charged approximately $300 for each prescription and required payment in cash. The evidence also revealed that the defendants divided each day’s cash proceeds, often in excess of $15,000, from the sale of the unlawful prescriptions.
Faithful and Craig made great efforts to prevent law enforcement from investigating Gulfton, the evidence showed. For example, they banned the use of any electronic devices in the clinic and prevented anyone from bringing bags into Gulfton. Approximately four armed security guards also patrolled Gulfton daily to control the crowds of people, who ranged from addicts to “crew leaders.”
This case was investigated by the DEA. Trial Attorneys Scott Armstrong and Devon Helfmeyer of the Criminal Division’s Fraud Section are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force, which is part of a joint initiative between the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. The Medicare Fraud Strike Force operates in nine locations nationwide. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 3,500 defendants who collectively have falsely billed the Medicare program for over $12.5 billion.
Honduran Man Sentenced for Illegal Use of a Social Security NumberRead the Press Release
NEW ORLEANS, – NAHUM VERDE-ORTIZ, age 39, a citizen of Honduras was sentenced today after previously pleading guilty to a one-count indictment for illegal use of a social security number, in violation of Title 42, United States Code, Section 408(a)(7)(B).
U.S. District Judge Eldon E. Fallon sentenced VERDE-ORTIZ to time served.
According to the indictment, on August 20, 2014, VERDE-ORTIZ used a social security number that did not belong to him to register for a safety training course that his employer required him to take before he could begin working for the company as a construction worker.
U.S. Attorney Duane A. Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis is in charge of the prosecution.
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Hartford Man Sentenced to 57 Months in Federal Prison for Distributing HeroinRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that DRESHAWN NEWTON, also known as “Dre,” 28, of Hartford, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 57 months of imprisonment, followed by three years of supervised release, for distributing heroin.
According to court documents and statements made in court, NEWTON’s associate, Joel Gonzalez, also known as “Tuti,” was the focus of an investigation into the distribution of heroin and other controlled substances in and around Hartford by members and associates of Los Solidos and the Latin Kings. In November and December 2015, the FBI’s Northern Connecticut Violent Crime Gang Task Force and Hartford Police made a total of six controlled purchases of heroin from Gonzalez at 71 Warrenton Avenue and 30-32 Putnam Street in Hartford. NEWTON participated in one of the controlled purchases on December 4, 2015. On that date, NEWTON gave 1,000 bags of heroin to an undercover officer in exchange for $2,250.
NEWTON has been detained since his arrest on December 17, 2015. On September 6, 2017, he pleaded guilty to one count of conspiracy to possess with intent to distribute, and to distribute, heroin.
Gonzalez pleaded guilty to a related charge and, on January 31, 2018, was sentenced to 77 months of imprisonment.
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction.
This case was prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
Hartford Gang Member Sentenced to More Than 3 Years in Federal Prison for Distributing CrackRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that TAYRENCE WILLIS, a.k.a. “T” and “T-Franklin,” 26, of Hartford, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 37 months of imprisonment, followed by four years of supervised release, for his role in a narcotics trafficking ring.
According to court documents and statements made in court, this matter stems from a joint law enforcement investigation headed by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department’s Vice and Narcotics Division targeting gang violence and narcotics trafficking in Hartford’s Parkville neighborhood, and related overdoses. The investigation specifically targeted criminal activity being committed by members and associates of the Orange Street Killas (OSK), which operated principally in the area of Orange, Cherry and Arbor Streets. The investigation followed a series of reports of shots fired in the area, and a homicide that was committed on Cherry Street in October 2015. The prosecution was built on court-authorized wiretaps, controlled purchases of narcotics and physical and video surveillance, all of which revealed that OSK members, including WILLIS, acquired heroin and crack cocaine and then sold the narcotics on the streets of Hartford.
On October 8, 2016, investigators intercepted OSK members calls discussing firearms and planning a potentially violent act. Investigators immediately notified Hartford Police that violence might be imminent in the Orange and Cherry Street area, but before police could respond, at approximately 10:12 p.m., a man was chased and shot multiple times in front of 7-9 Cherry Street. The victim was located in the backyard of 51 Orange Street. He was suffering from three gunshot wounds to his legs, was transported to the hospital and survived the shooting. Minutes after the shooting, WILLIS referenced the shooting during a wiretapped call. Subsequent analysis of surveillance video revealed WILLIS was on Cherry Street at the time and was a witness to the shooting.
WILLIS has been detained since his arrest on February 10, 2017. On November 21, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack”).
WILLIS’s criminal history includes convictions related to selling drug, unlawful firearm possession, and leading police on an extended and dangerous vehicle pursuit during which a firearm was thrown from the vehicle he was driving. WILLIS also has been a victim of two separate shootings.
Sixteen individuals were charged as a result of the investigation.
This matter is being investigated by the Federal Bureau of Investigation’s Northern Connecticut Violent Crimes Task Force and the Hartford Police Department. The Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics Division and Shooting Task Force have provided valuable assistance to the investigation.
The case is being prosecuted by Assistant U.S. Attorney Brian P. Leaming.
Hancock County man admits to child pornography chargeRead the Press Release
WHEELING, WEST VIRGINIA – Michael Dziatkowicz, of Weirton, West Virginia, admitted today to possessing child pornography, United States Attorney Bill Powell announced.
Dziatkowicz, age 36, pled guilty to one count of “Possession of Child Pornography.” Dziatkowicz admitted to having child pornography in February 2015 in Hancock County, West Virginia.
Dziatkowicz faces up to 10 years incarceration and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen L. Vogrin is prosecuting the case on behalf of the government. The Federal Bureau of Investigation and the Hancock County Sheriff’s Office investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
German Citizen Indicted for Major Fraud in Connection with A State Department GrantRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland – A federal grand jury has indicted Katrin Verclas, age 50, a native and citizen of Germany residing in Washington, D.C., on a charge related to a scheme to defraud the U.S. Department of State of $1.231 million. The indictment was returned on March 26, 2018, and was unsealed upon the arrest of Verclas.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Steve A. Linick, Inspector General for the U.S. Department of State.
According to the indictment, Verclas, as director of MobileActive Corp, obtained a grant from the U.S. Department of State intended to support and promote U.S. global internet freedom efforts. Verclas represented to the U.S. Department of State that MobileActive was a non-profit organization pursuant to 26 U.S.C. § 501(c)(3) with the legal authority to apply for a grant, and that MobileActive had the financial capability to ensure proper planning, management, and completion of the grant project.
MobileActive was not a 501(c)(3) non-profit organization, and thus, did not have the legal authority to apply for the grant. Verclas spent much of the money from the U.S. Department of State on personal expenses and expenses unrelated to the grant. Verclas caused the U.S. Department of State to transfer $1.222 million into her control.
Verclas faces a maximum sentence of 10 years in prison.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the U.S. Department of State, Office of Inspector General, for its work in the investigation. Mr. Schenning thanked Special Assistant U.S. Attorney Dominique Juliet Park and Assistant U.S. Attorney Bryan E. Foreman, who are prosecuting the case. Assistant U.S. Attorney Katharine A. Wagner with the U.S. Attorney’s Office, District of Massachusetts, provided substantial assistance.
Georgia Man Charged in Lottery ScamRead the Press Release
BOSTON – A Georgia man was indicted in federal district court in Boston yesterday in connection with his role in a bogus advance fee lottery scheme.
Peter Anthony Chin Jr., 34, of Atlanta, Ga., was indicted on one count of conspiracy to commit mail and wire fraud. On Feb. 22, 2018, Chin was arrested in Atlanta on a criminal complaint and appeared later that month in federal court Boston. He has been released on conditions since that time.
According to the indictment, from 2012 to 2017, Chin was part of a scheme that targeted elderly individuals throughout the United States, including Massachusetts. The victims were informed via phone, email and mail that they had won millions of dollars in a lottery, but that they had to pay the taxes on their purported winnings before the funds could be released. Chin’s co-conspirators directed the victims to mail or wire funds to Chin or to his associates. Chin kept a portion of the funds for himself and then distributed the rest as directed by his co-conspirators, including sending significant amounts to Jamaica.
As alleged in court documents, the following are two examples of the way in which the scheme operated. On Oct. 7, 2015, a Pennsylvania resident mailed a $34,900 cashier’s check for purported lottery taxes and fees to Chin at his then-address in Fairburn, Ga. Two days later, the cashier’s check was deposited into Chin’s checking account. In another example of the scheme, on March 1, 2013, a Masachusetts resident mailed a treasurer’s check for $93,633 to a co-conspirator in New York for purported lottery taxes and fees. Later that month, the co-conspirator wired $25,000 to a bank account held by Chin’s wife.
The charge of conspiracy to commit mail and wire fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gain or loss, whichever is greater. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Andrew E. Lelling; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Sandra S. Bower of Lelling’s Criminal Division is prosecuting the case.
Genovese Organized Crime Family Associate Convicted of Murder Conspiracy and Other Racketeering OffensesRead the Press Release
Geoffrey S. Berman, the United States Attorney for the Southern District of New York, announced the conviction in Manhattan federal court of SALVATORE DELLIGATTI, a/k/a “Fat Sal,” a/k/a “Jay,” for racketeering conspiracy, conspiracy to commit murder in aid of racketeering, attempted murder in aid of racketeering, murder-for-hire conspiracy, participation in an illegal gambling operation, and a firearms offense. The jury convicted DELLIGATTI yesterday on all six counts of the Indictment following a three-week trial before U.S. District Judge Katherine B. Forrest.
U.S. Attorney Geoffrey S. Berman said: “Salvatore Delligatti, in order to increase his standing in the Genovese Family, recruited a group of hitmen to murder an individual. But Delligatti’s hitmen were caught red-handed by the Nassau County Police Department and the Nassau County District Attorney’s Office before they could carry out their hit. Delligatti now stands convicted of this foiled murder plot and other crimes he committed with the Genovese Family. We thank our partners in Nassau County and at the FBI.”
According to the Indictment, other filings in Manhattan federal court, and evidence presented in court during the trial:
From at least in or about 2008 through in or about May 2016, DELLIGATTI was an associate of the Genovese Organized Crime Family of La Cosa Nostra. During this period, DELLIGATTI conspired with others to participate in and conduct the affairs of the Genovese Family through a pattern of racketeering activity that included a murder conspiracy, an extortion conspiracy, and the operation of an illegal sports betting business. For example, as part of DELLIGATTI’s participation in the Genovese Family, DELLIGATTI committed the following crimes:
From in or about May 2014 through in or about June 2014, DELLIGATTI conspired with Robert DeBello, a “made” soldier, and Ryan Ellis, an associate of the Genovese Family, to murder a neighborhood “tough guy” from the Whitestone section of Queens. DELLIGATTI sought and obtained permission from DeBello to murder the intended victim. However, instead of carrying out the murder himself, as DeBello had authorized him to do, DELLIGATTI hired a crew of hitmen from the Bronx to ambush and kill the intended victim at his residence. DELLIGATTI provided the hitmen with a loaded .38 revolver and a get-away vehicle, and offered to pay them several thousand dollars for the murder. As a result of wiretap surveillance of DELLIGATTI by the Nassau County Police Department and the Nassau County District Attorney’s Office, the crew of hitmen was apprehended in the get-away vehicle just a few blocks from the intended victim’s residence on June 8, 2014. In their vehicle, law enforcement recovered the loaded revolver, a spray bottle containing a bleach solution, and other materials.
From in or about April 2014 through in or about May 2014, DELLIGATTI and others in the Genovese Family, including DeBello and Ellis, participated in a conspiracy to use threats of violence and economic harm to extort the owners and promoter of a night club located on the rooftop of a hotel in Queens.
From at least in or about 2013 through in or about 2015, DELLIGATTI participated with others in the Genovese Family, including DeBello and Ellis, in a large-scale bookmaking and sports betting operation that took bets from bettors in Manhattan and Queens, among other locations, and made use of an offshore wireroom. During and in furtherance of this gambling operation, DELLIGATTI and Ellis brought envelopes filled with cash to DeBello, the “made” soldier with whom they were committing these crimes.
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DELLIGATTI, 40, was found guilty of conspiring to participate in the Genovese Family through a pattern of racketeering activity, conspiring to murder and attempting to murder Joseph Bonelli in aid of racketeering, conspiring to commit murder-for-hire, possessing a firearm in furtherance of those crimes of violence, and participation in an illegal gambling operation. DELLIGATTI faces a maximum potential sentence of life in prison. DELLIGATTI is scheduled to be sentenced by Judge Forrest on August 16, 2018.
DELLIGATTI’s co-defendants, Robert DeBello and Ryan Ellis, previously pled guilty before Judge Forrest to racketeering conspiracy offenses for their roles in the murder conspiracy, the extortion conspiracy, and the illegal gambling operation that are described above.
Mr. Berman praised the outstanding investigative work of the Nassau County Police Department and the Federal Bureau of Investigation. He also thanked the Nassau County District Attorney’s Office and the United States Department of State, Diplomatic Security Service, for their assistance with the prosecution.
The case is being prosecuted by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, Jordan Estes, and Jason Swergold are in charge of the prosecution.
Garfield Heights man indicted for using a firearm while dealing carfentanil and heroinRead the Press Release
A Garfield Heights man was indicted in federal court for using a firearm while dealing carfentanil and heroin, said U.S. Attorney Justin E. Herdman.
Delamar D. Williams, 36, was indicted on one count of possession with intent to distribute heroin and carfentanil, one count of using a firearm in relation to drug trafficking and one count of being a felon in possession of a firearm.
Williams had 55.2 grams of a mixture of carfentanil and heroin on Oct. 19, 2017, as well as a 9 mm SCCY CPX-2 pistol. Williams possessed the firearm in relation to his drug trafficking and was also forbidden from having it because of numerous prior convictions for drug trafficking, according to the indictment.
Prosecutors are seeking to forfeit the firearm as well as $81,587 in cash seized as part of the investigation.
This case was investigated by the Drug Enforcement Administration and the Southeast Area Law Enforcement Task Force, which is made up of officers from Bedford, Bedford Heights, Garfield Heights, Maple Heights, Solon, Oakwood and Walton Hills Police Departments. It is being prosecuted by Assistant U.S. Attorney Patrick Burke.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Frederick Man Arrested for Human SmugglingRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland –A federal grand jury indicted Martir Jandres a/k/a “Tono”, age 42, of Frederick, Maryland, on a charge of conspiracy to commit human smuggling related to a years long operation to smuggle illegal aliens into the United States through Texas and then transport them throughout the country. The indictment was returned on March 16, 2018, and unsealed today upon the arrest of Jandres and the execution of a search warrant at his residence.
The indictment was announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning, Special Agent in Charge Andre R. Watson of Immigration & Customs Enforcement (ICE) Homeland Security Investigations (HSI) and Sheriff Charles A. Jenkins of the Frederick County Sheriff’s Office.
According to the one-count indictment, between October 2016 and February 2017, Jandres allegedly conspired with numerous people in Central America, Mexico and the United States to facilitate illegal aliens entry to the United States without inspection by bypassing United States Border Patrol checkpoints. Once in the country, the aliens were placed in stash houses until transportation could be arranged with local “load drivers” to enable the aliens to leave the border area and travel to their interior destinations. On two occasions, undercover HSI agents posed as “load drivers” to transport aliens smuggled by Jandres.
Jandres faces a maximum sentence of 10 years in prison for the conspiracy.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended HSI for their work in the investigation along with the Frederick County Sheriff’s Office and the Internal Revenue Service. Mr. Schenning thanked Special Assistant U.S. Attorney Brian M. Fish and Assistant U.S. Attorney Judson T. Mihok, who are prosecuting the case.
Federal grand jury indicts Shreveport financial planner, Houston pastor for defrauding investors out of more than $1 millionRead the Press Release
SHREVEPORT, La. – United States Attorney Alexander C. Van Hook announced today that a federal grand jury returned a 13-count indictment charging a Shreveport financial planner and a pastor of a Houston church of bilking investors out more than $1 million.
Gregory Alan Smith, 55, of Shreveport, and Kirbyjon H. Caldwell, 64, of Houston, Texas, are charged with one count of conspiracy to commit wire fraud, six counts of wire fraud, one count of conspiracy to commit money laundering and three counts of money laundering. Additionally, Smith and Caldwell are charged in two separate counts of money laundering. According to the indictment, Smith used his influence and status as the operator and manager of Smith Financial Group LLC in Shreveport, and Caldwell used his influence and status as pastor at a prominent Houston church to lure investors to pay more than $1 million to invest in Historical Chinese bonds. These bonds were issued by the former Republic of China prior to losing power to the communist government in 1949. They are not recognized by China’s current government and have no investment value. Smith and Caldwell promised high rates of return, sometimes three to 15 times the value of the investments. Instead of investing the funds, the defendants used them to pay personal loans, credit card balances, mortgages, vehicle purchases and other personal expenses.
The defendants each face 20 years in prison for the conspiracy to commit wire fraud count and for the wire fraud counts. They also face 10 years in prison for the conspiracy to commit money laundering count and the money laundering counts. They also face a $1 million fine, restitution, forfeiture and five years of supervised release.
The FBI investigated the case. Assistant U.S. Attorney Seth D. Reeg is prosecuting the case.
An indictment is merely an accusation, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
Federal Jury Convicts Greensboro Man for Extensive Bank Lien Theft Scheme, Money Laundering, and Aggravated Identity TheftRead the Press Release
RALEIGH – The United States Attorney for the Eastern District of North Carolina, Robert J. Higdon, Jr., announced that today, XAVIER MILTON EARQUHART, 30, a Greensboro, NC resident, was convicted following a three-day jury trial before Senior United States District Judge W. Earl Britt. The jury found EARQUHART guilty of ten counts of Bank Fraud, two counts of Engaging in Monetary Transactions Involving Criminally Derived Property and one count of Aggravated Identity Theft and Aiding and Abetting. Following the jury trial, the jury further found that the defendant was obligated to forfeit more than $1.3 Million in fraudulent proceeds, more than $100,000 in recording studio equipment, and $300,000 in gold bullion and coins.
The evidence at trial showed that, in one bank fraud scheme, the defendant forged a deed on a property owned by an out of state landowner, and then channeled the property ownership through fictitious individuals and a holding company before personally taking title to the property. The defendant then attempted to secure $495,000 in home equity loans using the property as collateral, becoming successful on three such attempts.
In a second scheme, the evidence showed that the defendant forged bank lien releases on 8 properties, in some instances, by stealing the identities of bank employees, and in other instances, using fictitious notaries. The defendant created Delaware holding companies to conceal his activities. The defendant then sold the properties off to unknowing third parties. At trial, the evidence showed that because of the defendant’s actions, some homeowners lost the funds that they had invested into the properties. Other victims were left uncertain as to the ability of their families to remain in the homes due to the cloud upon their title.
Lastly, the evidence at trial included evidence from law enforcement concerning the tracing of the defendant’s fraudulent gains. Law enforcement used a note and key found in the defendant’s Prius to uncover a hidden trove of $300,000 worth of gold, concealed in a storage unit in Spring, Texas. Law enforcement also seized various items of valuable recording studio equipment.
At sentencing tentatively set for July 2018, EARQUHART faces up to 30 years imprisonment.
The investigation of this case was conducted by the IRS Criminal Investigation, with the assistance of the Federal Deposit Insurance Corporation Office of the Inspector General, the Wake County Register of Deeds, Wake County Sheriff’s Office, United States Secret Service and the Bankruptcy Administrator for the Eastern District of North Carolina. Assistant United States Attorney William M. Gilmore represented the government in this case.
Federal Jury Convicts Former Montana Resident of Wire Fraud and Money LaunderingRead the Press Release
BUTTE – Following an eight-day trial with testimony from thirty-two government witnesses, Joseph Brent Loftis, 63, of Corona Del Mar, California, was convicted by a Montana jury of five counts of wire fraud and two counts of money laundering. Loftis faces a maximum of 20 years imprisonment for each count of wire fraud and ten years of imprisonment for each count of money laundering. He further faces a maximum $250,000 fine and up to three years of supervised release on each count. After trial, Loftis stipulated to a forfeiture order of $1,662,749.10. Chief U.S. District Judge Dana L. Christensen presided over the case.
Evidence presented at trial by Assistant United States Attorneys Chad Spraker and Adam Duerk showed that from 2009 through 2013 Loftis solicited approximately $3 million from investors based upon false representations that he owned leases on the Blackfeet Indian Reservation. Loftis also made misrepresentations regarding whether he had received a degree from the University of Oklahoma, amounts of oil being produced from wells, and whether he was using an independent accounting firm.
After receiving investor funds, Loftis typically provided investors with a few checks totaling about $1000 and then stopped payments altogether. Once investors complained, Loftis provided excuses regarding disputes about ownership or issues with drilling. In some instances, Loftis offered to return the investors’ money and entered a rescission agreement for the investment. Loftis, however, failed to return the investors’ money or issued a check cancelled through a stop payment. Loftis also falsely represented to investors that he owned oil and gas leases in Oklahoma and Texas though Loftis had defaulted on purchase agreements for the leases.
In 2011, Loftis took steps to complete a transaction known as reverse merger in which Prism would become a subsidiary of a publically traded company. Based upon Loftis’s representations that he needed capital to continue Prism’s operations until his company could receive equity in the public markets, Loftis obtained a $1.9 million bridge loan from investor funds. After Loftis received the loan proceeds, he failed to carry out the steps needed to complete the merger and kept the bridge loan proceeds while spending $190,000 of the funds on a luxury RV.
Also in 2011, Loftis relocated to Texas and began soliciting funds from investors in a newly formed company Great Northern Energy. Loftis continued to misrepresent his education and denied having a criminal record despite a 1995 felony conviction for bank fraud and false statements to a financial institution.
Sentencing is scheduled for July 20, 2018, at 9:00 a.m., in the Russell Smith Courthouse in Missoula, Montana. The case was investigated by the Federal Bureau of Investigation and Internal Revenue Service, Criminal Investigation.
Federal Jury Convicts Drug Dealer Who Sold Deadly Heroin and Will Receive Life in PrisonRead the Press Release
GRAND RAPIDS, MICHIGAN — U.S. Attorney Andrew Birge announced today that Steven Craig Whyte, 29, of Kalamazoo, was convicted by a federal jury yesterday of five crimes, including conspiring to distribute heroin, possession of a firearm in furtherance of drug trafficking, and distribution of heroin resulting in death. Because Whyte was previously convicted of a drug distribution offense, he faces a mandatory life term at sentencing.
The evidence at trial demonstrated that from late 2015 through October 2016, Whyte conspired with other individuals to sell heroin in Kalamazoo, and to obtain firearms to protect the drugs and money received from selling it. In February 2016, during the execution of a search warrant at one of the homes used by Whyte, officers found heroin, drug packaging materials, and a firearm. Images from Whyte’s phone indicated that he utilized multiple firearms in aid of his drug trafficking. On October 15, 2016, Whyte sold heroin, via an intermediary, to Adam Boomers, 29, a life-long Portage, Michigan resident, who used it and then died.
"The opioid crisis is ravaging communities around the country, and West Michigan is no different," Birge said. "We grieve Adam’s loss with his family and with his community. The serious sentence in this case will send a message that the federal government will pursue those who deal deadly drugs to the fullest extent permissible under law."
"The DEA targets individuals like Whyte, who distribute poison and cause death in our communities. This case is an example of DEA’s focus on the worst offenders in West Michigan and the nation," said Timothy J. Plancon, Special Agent in Charge, Detroit Field Division.
"This conviction was a direct result of law enforcement’s efforts to focus on heroin dealers in the local communities," said Captain Brad Misner, Kalamazoo Valley Enforcement Team. "The community is safer today because of the hard work by so many involved; from the initial onset of the case, to the arrest and search warrants, to the eventual prosecution by the federal government. Mr. Whyte will no longer be able to push his product on individuals who are struggling with addiction and have fallen victim to this senseless drug."
This case was investigated by the Drug Enforcement Administration, Kalamazoo Valley Enforcement Team, and Kalamazoo Department of Public Safety. It was prosecuted by Assistant U.S. Attorneys Justin M. Presant and Stephen P. Baker.
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Federal Grand Jury IndictmentsRead the Press Release
United States Attorney Beth Drake stated today that a Federal Grand Jury in Florence, South Carolina, returned an Indictment against the following:
Loris Man Indicted on Federal Gun Charges and Hobbs Act Armed Robbery. Fuquan Thompson, age 50, of Loris, South Carolina, was charged in a three-count indictment with Hobbs Act Armed Robbery, a violation of Title 18, United States Code, Section 1951(a), possession of a firearm by a prohibited person, a violation of Title 18, United States Code, Section 922(g)(1), and possession of a firearm in furtherance of a crime of violence, in violation of Title 18, United States Code, Section 924(c)(1)(A). The maximum penalty Thompson could face is imprisonment of 27 years and a fine of $250,000.00.
This case was investigated by the Horry County Sheriff’s Department, Horry County Police Department, and the Bureau of Alcohol, Tobacco, Explosives, and Firearms and is being prosecuted by Assistant United States Attorney Alfred W. Bethea, Jr., of the Florence office.
Horry County Man Indicted for Illegal Re-entry into the United States After Deportation. Cesar Omar Torres-Santiesteban of Horry County, South Carolina, was charged in a single-count indictment with illegal re-entry into the United States after deportation, a violation of Title 8, United States Code, Section 1326(a). The maximum penalty Torres-Santiesteban could receive is two years imprisonment and a fine of $250,000.00.
The case was investigated by ICE-Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Another Horry County Man Indicted for Illegal Re-entry into the United States After Deportation. Rafael Altamirano-Ruiz of Horry County, South Carolina, was charged in a single-count indictment with illegal re-entry into the United States after deportation, a violation of Title 8, United States Code, Section 1326(a). The maximum penalty Altamirano-Ruiz could receive is two years imprisonment and a fine of $250,000.00.
The case was investigated by ICE - Enforcement Removal Operations. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Florence Woman Indicted for Embezzling Money from Social Security Administration. Jacqueline Britt-Briggs of Florence, South Carolina, was charged in a single-count indictment with embezzling money from the Social Security Administration, a violation of Title 18, United States Code, Section 641. The maximum penalty Britt-Briggs could receive is ten years imprisonment and a fine of $250,000.00.
The case was investigated by the Office of Inspector General for the Social Security Administration. The case is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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East Stroudsburg Man Sentenced to 27 Months’ Imprisonment for Assaulting and Fleeing from Federal Park RangersRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that United States District Judge James Munley sentenced Damari Roulhac, age 26, of East Stroudsburg, Pennsylvania, to 27 months’ imprisonment and two years of supervised release, for one count assaulting a United States Park Ranger, and one count for fleeing from United States Park Rangers. Roulhac was convicted on September 26, 2017, following a two-day jury trial before United States District Court Judge James M. Munley.
According to United States Attorney David J. Freed, the evidence presented during the trial showed that on the evening of July 1, 2016, United States Park Rangers patrolling the Delaware Water Gap National Recreation Area encountered Roulhac and ordered him to stop his vehicle. Roulhac refused to obey the Rangers’ instructions and accelerated his vehicle towards one of the Rangers, causing him to jump out of the way. When the Ranger then attempted to detain Roulhac, he accelerated again, striking the Ranger with the vehicle while fleeing the scene of the incident.
Roulhac was able to evade apprehension on July 1, 2016. However, Rangers tracked him down days later, at the Pike County Courthouse, when Roulhac was sentenced for an unrelated DUI conviction.
The case was investigated by Rangers from the National Park Service. Assistant United States Attorneys Phillip Caraballo and Evan Gotlob prosecuted the case.
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Dow Chemical Company Settles False Claims Act Allegations for $479,000Read the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake announced today that the Dow Chemical Company has agreed to pay the United States $479,000 to settle allegations that Poly-Carb, Inc. – a former Dow subsidiary – violated the False Claims Act by submitting fraudulent materials certifications related to a federally-funded highway resurfacing project.
In 2012, Poly-Carb, Inc. (then a subsidiary of Dow) was awarded a subcontract on a federally-funded project to apply a skid-resistant adhesive to several highways throughout South Carolina. To ensure the materials conformed to contract specifications, the contract required Poly-Carb to collect samples, have them tested by an independent third party, and send certifications of the results to the South Carolina Department of Transportation (SCDOT). Between 2012 and 2013, Poly-Carb submitted certifications to SCDOT, claiming another company had performed this third-party testing. The settlement agreement resolves allegations made by the United States Department of Transportation (USDOT) and the United States Department of Justice that Poly-Carb falsified these certifications to make them appear to be from a third-party, in violation of the False Claims Act.
“This is another example of how rigorous enforcement of the False Claims Act helps protect the public’s interest and taxpayer dollars from waste, fraud, and abuse,” said U. S. Attorney Beth Drake. “It also reflects our ongoing commitment to protect our state and federal transportation agencies and the vital infrastructure programs they provide.”
The False Claims Act is the government’s primary civil remedy to redress false claims for government funds and property under government programs and contracts relating to such varied areas as health care, defense and national security, food safety and inspection, federally insured loans and mortgages, highway funds, small business contracts, agricultural subsidies, disaster assistance, and import tariffs.
“It is important to ensure that taxpayers get what they pay for so that the quality of products used in federally funded transportation projects is not compromised,” said Marlies T. Gonzalez, Regional Special Agent-in-Charge at the USDOT’s Office of Inspector General. “We will continue working with the USDOT, Federal Highway Administration, and our partners at the U.S. Department of Justice to promote the detection and prosecution of fraud schemes which erode public confidence in the integrity of our nation’s transportation system.”
This case was handled by Assistant United States Attorneys Brook Andrews and James Leventis. The case was investigated by Special Agent Sara Oliver of the USDOT Office of Inspector General.
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Dominican National Sentenced for Illegal ReentryRead the Press Release
BOSTON - A Dominican national pleaded guilty today and was sentenced in federal court in Boston for illegally reentering the United States after deportation.
Antonio Felipe-Vasquez, 40, pleaded guilty to one count of unlawful reentry of a deported alien. U.S. District Court Judge Leo T. Sorokin immediately sentenced Felipe-Vasquez to time served and three years of supervised release. Felipe-Vasquez will be subject to deportation proceedings.
In 2001, Felipe-Vasquez was encountered by immigration officials while serving a sentence at the Norfolk county House of Corrections. Upon completion of that sentence, Felipe-Vasquez was placed into removal proceedings, and on Nov. 20, 2001, he was deported to the Dominican Republic.
In September 2017, Felipe-Vasquez was arrested in Lynn and charged with heroin trafficking. Upon his arrest, his fingerprints were taken, which revealed his prior deportation. Felipe-Vasquez is scheduled for trial in the state matter in April 2018.
United States Attorney Andrew E. Lelling and Michael Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. Assistant U.S. Attorney Kenneth G. Shine of Lelling’s Major Crimes Unit prosecuted the case.