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14 November 2017
Pennsylvania Man Sentenced to Prison for Identity Theft and Conspiring to File Fraudulent Tax Refund ClaimsRead the Press Release
PHILADELPHIA – A Philadelphia, Pennsylvania, man was sentenced to 22 months in prison today for identity theft and conspiring to file fraudulent tax refund claims, announced Interim U.S. Attorney Louis D. Lappen for the Eastern District of Pennsylvania and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to documents and information provided to the court, Steeve Zamor, 28, conspired with others to use stolen IDs to file tax returns with the Internal Revenue Service (IRS) fraudulently seeking tax refunds. Zamor also recruited other individuals to join the scheme. Although he did not have a tax preparation business, Zamor opened up a bank account in the name of “Steeve Zamor Tax Services” to facilitate the crime. Zamor and his co-conspirators directed the IRS to deposit some of the fraudulently obtained refunds into this bank account. Zamor withdrew money from the account to provide to other co-conspirators, and he kept a substantial portion of the illegal proceeds for his own use. He admitted to causing a tax loss of $366,135.53.
In addition to the term of prison imposed, U.S. District Judge John R. Padova of the Eastern District of Pennsylvania ordered Zamor to serve three years of supervised release and to pay $366,135.53 in restitution to the IRS.
Interim U.S. Attorney Lappen and Acting Deputy Assistant Attorney General Goldberg and thanked special agents of IRS Criminal Investigation and the FBI, who conducted the investigation, and Assistant U.S. Attorney David Ignall and Trial Attorney Eric B. Powers of the Tax Division, who prosecuted the case.
Oklahoma City Woman Pleads Guilty to Methamphetamine DistributionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that Sisney Ann Large, age 43, of Oklahoma City, Oklahoma, pled guilty to Distribution of Methamphetamine, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(A), punishable by not less than 10 years imprisonment, and up to a $10,000,000.00 fine or both.
The Indictment alleged that on or about August 30, 2016, within the Eastern District of Oklahoma, the defendant, SISNEY ANN LARGE, did knowingly and intentionally distribute 50 grams or more of methamphetamine (Actual), a Schedule II controlled substance.
The charges arose from a joint investigation entitled “Golden Pony” coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Bureau of Indian Affairs and the Drug Enforcement Administration.
The Honorable Kimberly E. West, U.S. Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the plea and ordered the completion of a presentence investigation report.
Assistant United States Attorney Timothy Hammer represented the United States.
Ohio woman sentenced for trafficking heroinRead the Press Release
WHEELING, WEST VIRGINIA – Michelle Green, of East Liverpool, Ohio, was sentenced today to 46 months incarceration for heroin distribution, United States Attorney William J. Powell announced.
Green, age 48, pled guilty to one count of “Distribution of Heroin within 1,000 Feet of a Protected Location” in August 2017. Green admitted to distributing heroin near Allison Elementary School in Hancock County. The crime occurred in March 2017.
Assistant U.S. Attorney Stephen L. Vogrin prosecuted the case on behalf of the government. The Hancock/Brooke/Weirton Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.Ninth Police Officer Indicted in Expanding Federal Corruption InvestigationRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – Former Baltimore City Police Officer and current Philadelphia Police Officer Eric Troy Snell, age 33, of Philadelphia, Pennsylvania was arrested today for Conspiracy to Distribute and Possess with Intent to Distribute Heroin and Cocaine. The charges relate to the illegal activities of former members of the Baltimore Police Department’s Gun Trace Task Force (GTTF).
The indictment 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 court documents, Officer Snell attended the Baltimore City Police Department training academy and was a Baltimore police officer until March 2008. While he was in the academy, Snell met co-conspirator Detective Jemell Rayam. Snell became an officer in the Philadelphia Police Department in September of 2014 and at the time of the indictment, Snell was assigned to the 35th District in the Philadelphia Police Department.
According to the indictment, between October 2016 and June 2017, while Snell was with the Philadelphia Police Department and Rayam was with the Baltimore Police Department, Snell and Rayam discussed and planned with each other the sale of illegal narcotics, including cocaine and heroin that had been obtained or seized by members of the Gun Trace Task Force in Baltimore.
The indictment alleges that or about October 3, 2016, Sergeant Wayne Jenkins, Rayam and detectives in the GTTF, engaged in a high-speed police chase where the driver of the vehicle threw over 9 ounces of cocaine out of the window of his vehicle before crashing his vehicle near Mondawmin Mall in Baltimore, Maryland. Near the scene of the crash, the officers retrieved the cocaine and Jenkins told Rayam to sell most of the cocaine and give Jenkins proceeds of the sale, which Rayam agreed to do. On or about October 18, 2016, after learning from Rayam that he had cocaine, Snell asked Rayam to provide him with the stolen cocaine instead of submitting it as evidence to the Baltimore Police Department. Rayam agreed to do so.
Two days later, Rayam traveled to Philadelphia, and met with Snell at his residence. Rayam provided the cocaine to Snell and who arrangements to meet with his brother, who was going to sell the drugs. According to the indictment, Snell, his brother, and Rayam met and Snell provided his brother with the cocaine. The three men discussed the price at which the cocaine would be sold and the amount of money that Snell and Rayam would receive from the sales.
In addition to the cocaine, court documents allege that Snell also agreed to sell 80 grams of heroin that Rayam had received from Jenkins.
According to the indictment, Snell deposited thousands of dollars in cash in Rayam’s bank account from the sales of illegal drugs, including counter deposits on October 28, 2016 and November 9, 2016. Snell also paid Rayam cash from the sales of illegal drugs when he met him on November 11, 2016.
Following Rayam’s arrest, on June 26, 2017, Snell spoke with Rayam on the recorded jail phone system where Rayam was detained. Snell assured Rayam that his brother had not said anything about their illegal drug trafficking and instructed Rayam to “say less” on the recorded jail phones so that their illegal drug trafficking operation would not be detected by law enforcement. Snell told Rayam to “stand tall” and said he would “keep an eye” on Rayam’s kids, which Rayam perceived as a threat to harm Rayam’s children if Rayam told authorities about Snell’s illegal drug trafficking.
Snell was arrested this morning at his residence in Philadelphia and had his initial appearance today in federal district court in Baltimore. Snell will remain detained until his detention hearing on November 17, 2017 at 2:15 p.m.
Rayam has pleaded guilty to racketeering conspiracy and admitted to multiple robberies, drug trafficking, and overtime fraud. Jenkins has pleaded not guilty and is scheduled for trial beginning January 16, 2018. Snell faces a maximum sentence of 20 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 FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Derek E. Hines and Leo J. Wise, who are prosecuting these Organized Crime Drug Enforcement Task Force cases.
Nigerian Citizen Sentenced to Federal Prison for His Role in Nationwide Identity Theft and IRS Tax Fraud SchemeRead the Press Release
MEDFORD, Ore. – On Wednesday, November 8, 2017, United States District Court Judge Ann Aiken sentenced Michael Oluwasegun Kazeem, 24, a Nigerian citizen and recent resident of Georgia, to 7 years in federal prison for his role in committing conspiracy to commit mail fraud, aggravated identity theft and mail fraud. The sentence included the two-year mandatory minimum for possessing or using a victim’s identity to commit fraud. The Judge also ordered him to pay $4,298,860 in restitution. Kazeem will be subject to deportation upon completion of his prison sentence for committing these aggravated felonies.
According to court documents, in May 2013, a Medford victim notified the IRS that false federal and Oregon state tax returns were filed electronically using her and her husband’s names. The returns included personally identifiable information (PII) including their social security numbers and dates of birth. The federal refund was deposited into an account via a prepaid debit card in a suburb of Chicago while the state refund was directed to a bank account in Texas.
An IRS investigation led to search warrants of residences in Illinois, Maryland and Georgia and numerous email and instant messenger accounts used by the defendant and other co-conspirators to further their fraudulent scheme. At a Chicago residence, agents seized approximately 150 prepaid debit cards and $50,000 in money orders. Agents learned that the Chicago co-conspirator was connected to an identity-theft scheme being run out of Lagos, Nigeria since at least 2011. In Maryland and Georgia, the IRS seized more than 50 electronic devices, 40 money orders in amounts exceeding $29,000, $14,000 in cash and numerous Greendot prepaid debt cards containing over $12,000 in fraudulent tax refunds.
The IRS criminal investigation eventually determined that the overall scheme resulted in the co-conspirators possessing stolen personal identifying information (PII) of more than 259,000 victims. In carrying out their scheme, the co-conspirators used the stolen PII to acquire over 19,500 electronic filing PINs from the IRS in the taxpayers’ names to be used to bypass IRS authentication procedures. They also obtained and used pre-paid debit cards with the victims’ stolen identities to receive direct electronic tax refund deposits. They eventually filed over 10,000 fraudulent federal tax returns attempting to obtain over $91 million dollars in refunds with actual losses amounting to over $11 million dollars. Refunds were withdrawn from the debit cards and at least 2,000 wire transfers totaling over $2.1 million were sent to Nigeria.
In 2014, the co-conspirators also gained access to the IRS “Get Transcript” system where they obtained sensitive taxpayer information and used it to file additional fraudulent returns. They obtained over 1,600 personal taxpayer transcripts from the IRS. In 2015, because of these and other security breaches, the IRS discontinued the “Get Transcript” program nationwide.
Michael Kazeem joined the conspiracy in 2013 to help his brother, Emmanuel Kazeem, 34, of Bowie, Maryland and Nigeria with the fraudulent tax scheme. Agents identified Emmanuel Kazeem as leader and organizer of the group who received, organized and distributed stolen identities. Michael Kazeem used the stolen PII from his brother to obtain electronic filing PINs from the IRS in the taxpayers’ names and acquired numerous disposable email accounts used to file fraudulent tax returns and obtain taxpayer transcripts from the IRS. He also “washed” the stolen identities through credit bureaus to ensure they would skirt IRS authentication procedures and he secured employer names with EINs for use on fraudulent W-2s used by his brother in the tax filings. He also helped his brother locate others in various states to help assist in removing fraudulent tax refunds from the prepaid debit cards and wiring them to Nigeria. Agents found over 16,500 stolen identities in his email/IM accounts including 13,203 victims originating from an Oregon company database and over 4,500 E-File PINs. Agents directly linked him to 1,479 fraudulently filed tax returns and 1,202 IRS taxpayer transcripts. He participated in the scheme both before and after entering the United States in August 2014 on a student VISA.
Last August, a federal jury in Medford convicted Emmanuel Kazeem of 19 counts of mail and wire fraud, aggravated identity theft and conspiracy to commit mail and wire fraud. Based on evidence presented at the trial, Emmanuel Kazeem purchased over 91,000 of the stolen taxpayer identities from a Vietnamese hacker. These stolen identities originated from the Oregon Company database and most of them belonged to victims living in Oregon and Washington. His sentencing is currently set for March 22, 2018. The sentencings for two other co-conspirators, Lateef Animawun and Oluwamuyiwa Olawoye, are scheduled for November 15, 2017 and April 19, 2018, respectively. Two other co-defendants, Oluwaseunara Osanyinbi and Oluwatobi Dehinbo, were previously sentenced on May 18, 2017.
This case results from a joint investigation by IRS-Criminal Investigation, the U.S. Department of Health and Human Services, Office of Inspector General and the FBI. Investigative support was provided by the Treasury Inspector General for Tax Administration; the U.S. Postal Inspection Service; the U.S. Department of State; and, the U.S. Department of Homeland Security, Homeland Security Investigations and Enforcement and Removal Operations. Byron Chatfield and Gavin Bruce, Assistant United States Attorneys, are prosecuting the case for the District of Oregon.
New York Probation Officer Charged for Role in Conspiracy to Smuggle Heroin from NigeriaRead the Press Release
NEWARK, N.J. – A Brooklyn, New York, man was arrested this morning for allegedly collecting drug distribution proceeds and laundering money on behalf of a heroin distribution conspiracy operating out of Nigeria, Acting U.S. Attorney William E. Fitzpatrick announced.
Anderson Ajimavo, 62, is charged by complaint with one count of conspiracy to distribute and possess with intent to distribute one kilogram or more of heroin and one count of conspiracy to commit money laundering. He is scheduled to appear this afternoon before U.S. Magistrate Leda Dunn Wettre in Newark federal court.
According to the complaint:
The FBI and Homeland Security Investigations (HSI) have been investigating a drug trafficking organization operating in Nigeria, New York, New Jersey, and elsewhere. During that investigation, law enforcement learned that the drug trafficking organization employed individuals to ingest heroin pellets and fly to the United States to deliver the drugs to other members of the organization.
Ajimavo was allegedly employed by the drug trafficking organization to collect, transmit, and launder the narcotics proceeds. A confidential source (CS-1) who received the heroin from the couriers after they arrived in the United States was instructed by the leader of the drug trafficking organization to pay for the heroin through Ajimavo.
On a least four occasions from November 2016 through March 2017, CS-1 met with Ajimavo and paid him a total of over $75,000 in narcotics proceeds, which Ajimavo was to transmit to the drug trafficking organization in Nigeria.
The heroin distribution conspiracy charge carries a mandatory minimum penalty of 10 years in prison, a maximum of life imprisonment, and a $10 million fine. The money laundering conspiracy charge carries a maximum potential penalty of 20 years in prison and a $500,000 fine, or twice the gross gain or loss from the offense.
The charges and allegations against Ajimavo are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), Newark Field Office, under the direction of Acting Special Agent in Charge Michael McCarthy; and U.S. Customs and Border Protection (CBP), under the direction of Acting Director of Field Operations Leon Hayward, New York Field Office, with the investigation.
The government is represented by Assistant U.S. Attorney Meredith Williams of the U.S. Attorney’s Office OCDETF/Narcotics Unit in Newark.
This case is being conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF). The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
NW Alabama Compounding Pharmacy Sales Representative Pleads Guilty in Prescription Fraud ConspiracyRead the Press Release
BIRMINGHAM – A sales representative for a Haleyville, Ala.,-based compounding pharmacy pleaded guilty today in federal court to participating in a conspiracy to generate prescriptions, including for a $29,000 wound cream, and defraud health care insurers and prescription drug administrators out of tens of millions of dollars in 2015.
U.S. Attorney Jay E. Town, FBI Special Agent in Charge Johnnie Sharp, U.S. Postal Inspector in Charge Adrian Gonzalez, U.S. Department of Health and Human Services, Office of Inspector General, Special Agent in Charge Derrick L. Jackson, Defense Criminal Investigative Service Special Agent in Charge John F. Khin, and Internal Revenue Service, Criminal Investigation, Acting Special Agent in Charge James E. Dorsey announced the charges.
PETER EODICE II, 34, of Webster, NY, pleaded guilty before U.S. District Court Judge L. Scott Coogler to conspiracy to commit health care fraud, wire fraud and mail fraud, various counts of health care fraud for submitting fraudulent prescription reimbursement claims to Blue Cross Blue Shield of Alabama, and one count of aggravated identity theft for forging a prescription. Eodice worked for Northside Pharmacy, an Alabama company doing business as Global Compounding Pharmacy. Global’s compounding and shipping facility was in Haleyville. The pharmacy did its prescription processing, billing and customer service at its “call center” in Clearwater, Fla.
Eodice is the fourth Global sales representative charged in the conspiracy. As part of his plea, Eodice agreed to forfeit $266,513 to the government as proceeds of illegal activity. His sentencing date has not been set.
“This defendant was one of several representatives with Global Compounding Pharmacy whose greed led him to scheme to line his pockets at the expense of average citizens simply seeking quality health care,” Town said. “This type of fraud not only puts patients at risk with unnecessary prescriptions and treatments but unconscionably drives up the costs of health care for all of us.”
According to the charges and Eodice’s plea agreement, Global hired sales representatives who were located in various states and were responsible for generating prescriptions from physicians and other prescribers. To bill insurance providers, including Blue Cross Blue Shield of Alabama, for the prescriptions, Global contracted to enter the pharmacy networks of their third-party administrators, known as “pharmacy benefit managers” or “PBMs.” These PBMs included Prime Therapeutics and Express Scripts Incorporated.
The court documents describe a conspiracy at Global that centered on generating and billing PBMs for fraudulent, often high-reimbursement prescriptions. To generate prescriptions, Global hired sales representatives who were married or related to doctors and other prescribers. Global also encouraged sales representatives to volunteer at doctors’ offices where they would review patient files and push Global’s products to patients. Global executives frequently instructed employees to obtain high-reimbursing prescriptions that Global would fill and bill for reimbursement. One of the drugs that Eodice got for himself and his family members was a wound cream that cost over $29,000. Eodice also forged multiple prescriptions.
When billing, Global engaged in various fraudulent practices, including automatically refilling and billing for prescriptions regardless of patient need, and routinely waiving co-pays to encourage patients to accept unnecessary medications and refills. Global paid sales representatives a base salary, plus a monthly commission for prescriptions they obtained, according to court documents.
The charges against Eodice follow charges brought by the U.S. Attorney’s Office earlier this year against three other Global sales representatives, Robin Gary Lowry, 49, of Columbus, Miss., Bridget McCune, 42, of Destin, Fla., and Kelley Norris-Hartley, 41, of Tuscaloosa. All three were charged with conspiracy to defraud insurance plans and PBMs, along with various health care fraud counts for submitting fraudulent claims for payment to BCBS of Alabama. McCune also was charged with conspiring to solicit and receive kickbacks in return for referring prescriptions under Medicare and TRICARE, a U.S. Department of Defense health care program, and with money laundering for spending proceeds of the crimes. All three defendants pleaded guilty. Their sentencings are scheduled for early 2018.
FBI, U.S. Postal Inspection Service, U.S. Department of Health and Human Services Office of Inspector General, and U.S. Defense Criminal Investigative Service investigated the cases, which Assistant U.S. Attorneys Chinelo Dike-Minor and Nicole Grosnoff are prosecuting.
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Modesto Real Estate Attorney Convicted of Fraud in a Short Sale SchemeRead the Press Release
FRESNO, Calif. — Robert Farrace, 53, of Modesto, was convicted today of three counts of wire fraud in connection with a fraudulent short-sale scheme, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Farrace, an attorney specializing in real estate law and the current President of the Stanislaus County Bar Association, owned two properties in Modesto with substantial mortgage loans. By early 2010, Farrace was in default and received foreclosure notices for the two properties. In order to keep the properties and avoid foreclosure, Farrace formed an entity called “Dignitas LLC” to purchase the properties. Farrace controlled Dignitas, but listed a friend’s name on the paperwork as a nominal manager because he knew the bank would not sell the property to a related party. Farrace then submitted short sale offers to the bank that serviced the loans on both properties listing Dignitas and the nominee manager as the purchaser. Farrace misrepresented his relationship to Dignitas to induce the bank to approve the short sale. Because the servicing bank did not know of the true relationship, it went forward and completed one of the short sales. The short sale on the second party was stopped after law enforcement informed the bank of Farrace’s scheme.
This case is the product of an investigation by the Federal Housing Finance Agency–Office of Inspector General, the Federal Bureau of Investigation, and the Stanislaus County District Attorney’s Office. Assistant U.S. Attorneys Michael G. Tierney and Shelley D. Weger are prosecuting the case.
Farrace is scheduled to be sentenced on February 12, 2018, by U.S. District Judge Lawrence J. O’Neill. Farrace faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Mexican Citizens Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Severino Luna Vera, age 43, and his son Joel Oswaldo Luna Pedroza, age 21, both citizens of Mexico, were each sentenced today to time served (47 days in jail) for illegal re-entry into the United States.
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas E. Feeley, Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Luna Vera admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on January 19, 2016. Luna Vera was also removed to Mexico on November 10, 2013.
As part of his guilty plea, Luna Pedroza admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed to Mexico on July 30, 2016.
On September 27, 2017, ICE Officers arrested Luna Vera and Luna Pedroza in Poestenkill, New York.
Following their respective sentencings, both men were remanded to the custody of the Department of Homeland Security, for removal.
This case was investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Mexican Citizen Charged with Illegally Re-entering United StatesRead the Press Release
PITTSBURGH - A citizen of Mexico has been indicted by a federal grand jury in Pittsburgh on a charge of reentry of removed alien, Acting States Attorney Soo C. Song announced today.
The one-count indictment named Mauro Cantera-Camacho, 43, as the sole defendant.
According to the indictment, the defendant, who was previously removed from the United States on December 14, 1999, was found in Butler, Pennsylvania on May 7, 2017, without having applied for or received permission to reenter the United States from the Secretary of the Department of Homeland Security.
The law provides for a maximum total sentence of two years in prison, one year supervised release, and a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Mary McKeen Houghton is prosecuting this case on behalf of the government.
The Department of Homeland Security 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.
Mercer County Man Admits Cocaine Distribution ConspiracyRead the Press Release
TRENTON, N.J. – A Trenton man today admitted his role in a conspiracy to distribute over a kilogram of cocaine and crack cocaine in the Trenton area, Acting U.S. Attorney William E. Fitzpatrick announced.
Bobby Williams, 37, pleaded guilty before U.S. District Judge Michael A. Shipp in Trenton federal court to Count One of a superseding indictment charging him with conspiracy to distribute and possess with intent to distribute 500 grams or more of cocaine and to manufacture, distribute, and possess with intent to distribute 28 grams or more of cocaine base.
According to the documents filed in this case and statements made in court:
From September 2013 through his arrest on Jan. 13, 2016, Williams conspired with co-defendants Khalfini Richardson, William Enmond and Capitol T. Wellons to distribute cocaine and manufacture and distribute crack cocaine primarily from two adjacent residences in Trenton.
At his plea hearing, Williams admitted conspiring to distribute a total of 1.72 kilograms of cocaine and 82.9 grams of crack cocaine.
The count to which Williams pleaded guilty carries a mandatory minimum sentence of five years in prison, a maximum potential penalty of 40 years in prison and a $5 million fine. Sentencing is scheduled for March 6, 2018.
Enmond entered a guilty plea and was sentenced on July 20, 2017 to 60 months in prison. Richardson and Wellons have also pleaded guilty and await sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents of the Drug Enforcement Administration, under the direction of Special Agent in Charge Valerie A. Nickerson in Newark, with the investigation leading to today’s guilty plea.The government is represented by Assistant U.S. Attorneys Molly Lorber and Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: John S. Furlong Esq.Marshall County man sentenced for cocaine distributionRead the Press Release
WHEELING, WEST VIRGINIA – Justin L. Nash, of Moundsville, West Virginia was sentenced today to 18 months incarceration for cocaine distribution, United States Attorney William J. Powell announced.
Nash, age 33, pled guilty to one count of “Distribution of Cocaine Base” in August 2017. Nash admitted to distributing cocaine in Marshall County on February 7, 2017.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Marshall County Drug & Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr., presided.
Many resident sentenced to more than 9 years in prison for illegally possessing, selling a shotgunRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a man from Many was sentenced last week to 110 months in prison for possessing a shotgun that he also sold.
Frank Manning Jr., 37, of Many, La., was sentenced Thursday by U.S. District Judge Elizabeth E. Foote on one count of possession of a firearm by a convicted felon. He was also sentenced to three years of supervised release. According to the August 1, 2017 guilty plea, Manning sold a Crescent Arms 20 gauge shotgun on May 25, 2016 for cash at a Many residence. Manning has prior felony convictions for drugs and domestic abuse battery in Desoto and Sabine parishes.
This investigation and prosecution is part of Project Safe Neighborhoods, which is a Department of Justice initiative to promote firearm safety and to reduce firearm crimes by preventing the possession and use of firearms by dangerous and persistent felons and others not authorized to possess a firearm.
The ATF and the Sabine Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney James G. Cowles Jr. prosecuted the case.
Manchester Man Sentenced to Eight Years for Firearms and Narcotics OffensesRead the Press Release
CONCORD, N.H. - Daniel Rogers, 31, of Manchester, New Hampshire was sentenced in federal court to eight years in prison for firearms and narcotics offenses, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, shortly after midnight on October 3, 2016, Manchester Police conducted a traffic stop on a vehicle driven by Rogers at the intersection of Granite Street and Commercial Street in downtown Manchester, New Hampshire. Police determined that there were outstanding warrants for both Rogers and his passenger. Both of them were arrested. Police subsequently obtained a warrant to search the vehicle, which resulted in the seizure of four firearms, including two rifles that were previously reported stolen, and a variety of controlled substances, including approximately 37 grams of fentanyl, 25 grams of crack cocaine, and 21 grams of powder cocaine. As a previously convicted felon, Rogers was prohibited from possessing firearms.
Rogers pleaded guilty on July 27, 2017, to possession of a controlled substance with intent to distribute, possession of a firearm by a prohibited person, and possession of a firearm in furtherance of drug trafficking. He will serve three years of supervised release following his release from federal prison.
“Drugs and guns are a deadly combination,” said Acting U.S. Attorney Farley. “Under the Project Safe Neighborhoods program, the U.S. Attorney’s Office is working with our law enforcement partners to identify and prosecute those whose conduct jeopardizes the safety of our community. The actions of the law enforcement officers here removed deadly drugs from the street and disarmed a convicted felon. We will continue to work each day to protect the citizens of our state from the dangers of drug trafficking and gun violence.”
“ATF’s mission is to combat violent crime and this investigation resulted in meeting that standard,” said Mickey Leadingham Special Agent in Charge, ATF Boston Field Division. “Today’s sentencing is another example of the importance of law enforcement partnerships and their effectiveness in protecting the citizens in our communities.”
This matter was investigated by the Manchester Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). The case is part of ATF’s Project Safe Neighborhoods initiative, which is a federally-funded program intended to reduce gun violence through law enforcement training, public education, and aggressive law enforcement efforts to investigate and prosecute gun-related crimes. The case is being prosecuted by Assistant U.S. Attorney Shane Bullitt Kelbley.
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Manchester Man Pleads Guilty to Distributing FentanylRead the Press Release
CONCORD, N.H. - Alex “Lex” Hernandez, 27, previously of Manchester, New Hampshire and Lowell, Massachusetts, pleaded guilty in federal court to three counts of distributing fentanyl, Acting United States Attorney John J. Farley announced today.
According to court documents and statements made in court, on three separate occasions in April, May and June 2016, Hernandez sold several “fingers” of fentanyl to a cooperating individual working with law enforcement. In total, Hernandez distributed approximately 110 grams of fentanyl across the three deals.
Hernandez still faces pending charges in Middlesex County, Massachusetts, for a cocaine-related offense.
Hernandez is scheduled to be sentenced on March 13, 2018.
“Fentanyl is associated with the vast majority of the drug overdose deaths in New Hampshire,” said Acting U.S. Attorney Farley. “While we recognized that those who suffer from addiction should get access to treatment, we will continue to work closely with our law enforcement partners to target and prosecute those who are selling this deadly drug. Stopping the distribution of fentanyl is necessary to protect our communities.”
“This case is another example of an individual willing to distribute deadly drugs into our neighborhoods,” said Harold H. Shaw, Special Agent in Charge of the FBI Boston Division. “With New Hampshire being at the epicenter of the opioid epidemic killing thousands, it is only by working together that we can make a difference. The FBI’s Safe Streets Gang Task Force will continue to do everything it can to bring to justice those that put these highly addictive drugs on our streets and into the hands of abusers.”
This matter was investigated by the Federal Bureau of Investigation’s Safe Streets Gang Task Force, which consists of FBI Special Agents and members of the Manchester Police Department, the Hudson Police Department, the New Hampshire State Police, the Nashua Police Department, and the New Hampshire Department of Corrections Probation and Parole. Investigators also received assistance of the Massachusetts State Police, the Lowell, Massachusetts Police Department, and the Middlesex County District Attorney’s Office. The case is being prosecuted by Assistant U.S. Attorney Charles L. Rombeau.
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Leesville resident sentenced to 40 months in prison for counterfeiting $100 billsRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Leesville man was sentenced last week to 40 months in prison for taking part in counterfeiting $100 bills in order to purchase prepaid cards.
Deldrick Shykil Fowler, 25, of Leesville, La., previously of DeQuincy, La., was sentenced Thursday by U.S. District Judge Dee D. Drell on one count of counterfeiting obligations to the United States. He was also sentenced to three years of supervised release. According to the August 10, 2017 guilty plea, Fowler helped another unnamed conspirator on December 27, 2016 use a genuine $100 bill to make 58 counterfeit copies. The conspirator then passed $1,500 worth of counterfeit bills at a DeRidder, La., department store in exchange for three prepaid debit cards. The conspirator discarded the unused counterfeit bills in a trashcan at a park. The counterfeit bills were later found and provided to law enforcement officers. The officers located Fowler the next day and discovered him with two of the three prepaid cards. He had already spent the third card.
The U.S. Secret Service, Vernon Parish Sheriff’s Office and the DeRidder Police Department conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Lawrence Woman Charged with Making False Statements on Naturalization ApplicationRead the Press Release
BOSTON – Francisca De La Cruz, a/k/a Francisca De La Cruz De Ramos, 50, was arrested today and charged in federal court in Boston with making false statements on her naturalization application.
According to the indictment unsealed today, when De La Cruz submitted an Application for Naturalization on Nov. 25, 2013, she omitted the fact that she had been arrested and criminally charged in 2006, and that when she was arrested, she identified herself to police as “Mercedes Abrue,” which was a false name.
The charge provides for a sentence of no greater than five years in prison, three years of supervised released, and a fine of up to $250,000. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb and Michael S. Shea, Acting Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Christine Wichers of Weinreb’s Major Crimes Unit is prosecuting the case.
The details contained in the indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Labor Union Organizer Sentenced to Prison for Participating in Fraud SchemesRead the Press Release
OAKLAND—Daniel Rush was sentenced yesterday afternoon to 37 months in prison for breaching his fiduciary duties to the United Food and Commercial Workers Union (UFCW) and participating in a money laundering scheme, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation (FBI) Special Agent in Charge John F. Bennett. The sentence was handed down by the Honorable Haywood S. Gilliam, Jr., U.S. District Judge, following Rush’s guilty pleas on June 22, 2017.
Rush pleaded guilty to one count of receiving an illegal payment as a union employee, in violation of 29 U.S.C. § 186(b)(1); one count of honest services wire fraud, in violation of 18 U.S.C. §§ 1343, 1346; and one count of conspiracy to commit structuring and money laundering, in violation of 18 U.S.C. § 371.
According to his plea agreement, between 2010 and 2015, Rush engaged in a series of schemes to enrich himself in violation of federal law and his fiduciary duties:
- In 2010, he conspired with attorney Marc L. TerBeek and others to structure approximately $420,000 in illegal drug proceeds into the banking system. Although the money was a loan from someone in the cannabis industry, Rush deliberately mischaracterized monthly interest payments as consulting fees.
- While serving as the Organizing Coordinator for the unofficial cannabis division at UFCW, Rush gave an employer a corrupted neutrality agreement in exchange for personal loan forgiveness. He also accepted kickbacks from TerBeek in exchange for referring cannabis businesses he encountered in his union role to TerBeek’s law practice.
- Rush abused his position as Executive Treasurer and Board Member at the Instituto de la Raza Laboral (Instituto) in similar fashion by demanding and accepting remuneration from TerBeek in exchange for establishing TerBeek as an approved legal provider for workers’ compensation cases at the Insituto.
- Finally, Rush engaged in corrupt conduct as a Commissioner on the Berkeley Medical Cannabis Commission when he attempted to extort a business that had applied for a dispensary permit. Using TerBeek as an intermediary, Rush communicated that if the applicant did not offer him a salaried job, with benefits, he would take adverse action against its application.
In sentencing Rush, Judge Gilliam commented that “the case reflects large-scale, long-lasting corruption on the defendant’s part.”
In addition to the prison term, the Court also sentenced the Rush to a three-year term of supervised release and ordered him to pay a fine of $7500. Rush’s coconspirator, attorney Marc L. TerBeek pleaded guilty on February 16, 2017, to one count of making an illegal payment to a union employee, in violation of 29 U.S.C. § 186(a) and one count of willfully violating an anti-structuring regulation, in violation of 12 U.S.C. § 1956. Judge Gilliam scheduled TerBeek’s sentencing hearing for November 27, 2017.
The prosecution is the result of an investigation by the FBI and the Internal Revenue Service-Criminal Investigation Division.
KC Man Sentenced to 20 Years for Child PornographyRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today on charges related to sending and receiving child pornography over the Internet.
Kevin Patrick Carson, 35, of Kansas City, was sentenced by U.S. District Judge Roseann Ketchmark to 20 years in federal prison without parole. The court also sentenced Carson to serve the rest of his life on supervised release following incarceration.
On Jan. 5, 2017, Carson pleaded guilty to all four counts of a federal indictment that charges him with two counts of attempting to distribute child pornography over the Internet, one count of receiving child pornography over the Internet and one count of possessing child pornography.
According to court documents, law enforcement officers utilized a peer-to-peer file-sharing network to download movie files and images of child pornography, some of which was particularly graphic, from Carson’s computer on two separate occasions between Feb. 28 and April 3, 2013. Investigators executed a search warrant at Carson’s residence and seized various electronic media.
A forensic examiner found 99 videos of child pornography and 593 images of child pornography. Most of the images depicted child bondage and bestiality, according to court documents. One video depicted a baby being raped by an adult male.
Carson admitted that he engaged as many as six underage females (ages 14 to 17 years old) via social networking sites and enticed them to send sexually explicit photographs to him over the Internet. Carson employed a number of tools to get the images. With at least two of the underage females, he referred to them as his “fiancée.”
This case is being prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI and the Kansas City, Mo., Police Department.Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Obtains $5.4 Million in Additional Relief to Compensate Servicemembers for Unlawful Repossessions by Wells Fargo Dealer ServicesRead the Press Release
The Justice Department announced today that it has obtained an additional $5.4 million for servicemembers whose vehicles were unlawfully repossessed by Wells Fargo Bank, N.A. in violation of the Servicemembers Civil Relief Act (SCRA). The bank, which does business under the name Wells Fargo Dealer Services, has agreed to pay this money to approximately 450 servicemembers under a 2016 settlement that resolved the department’s SCRA lawsuit against the company. This additional amount brings the total compensation under the settlement to more than $10.1 million and the total number of servicemembers eligible for relief to more than 860.
On Sept. 29, 2016, the department filed a complaint in United States v. Wells Fargo Bank N.A., d/b/a Wells Fargo Dealer Services in the Central District of California, alleging that Wells Fargo repossessed 413 vehicles of SCRA-protected servicemembers without court orders between Jan. 1, 2008 and July 1, 2015. On the same day, the department agreed to a settlement that required Wells Fargo to pay $10,000 to each of the affected servicemembers, plus any lost equity in the vehicle with interest. Wells Fargo was also required to pay a $60,000 civil penalty to the United States and repair the credit of all affected servicemembers. At the time of the settlement, the department announced that 413 servicemembers were eligible to receive compensation. The prior press release can be found here.
Since entering into the settlement with the department in September 2016, Wells Fargo has identified additional violations affecting approximately 450 servicemembers that occurred during the period covered by the settlement. Wells Fargo has begun to provide over $5,400,000 in compensation to these additional servicemembers under the agreement. Together with the compensation previously announced by the department in September 2016, a total of more than 860 servicemembers and their co-borrowers are eligible to receive $10,183,950.
“Just a few days ago, we observed Veterans Day to honor those who have served our country so bravely,” said Acting Assistant Attorney General John M. Gore. “The Justice Department will continue to honor their service throughout the year by vigorously enforcing servicemembers’ rights under federal law. The men and women of our armed forces should be able to devote their full attention to their military duties, without having to worry about their cars being repossessed back home. We are pleased that our settlement agreement has ensured that hundreds of additional servicemembers will be compensated for the damages they suffered as a result of illegal auto repossessions.”
“The SCRA provides important protections and is intended to prevent unnecessary financial hardship for the brave women and men who serve in our armed forces,” said Acting United States Attorney Sandra R. Brown. “Losing an automobile through an unlawful repossession while serving our country is a problem servicemembers should not have to confront. We are pleased that Wells Fargo is taking action to compensate these additional servicemembers as required under the settlement with the Justice Department. My Office is committed to protecting the rights of servicemembers on all fronts.”
The SCRA requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, Wells Fargo prevented servicemembers from obtaining a court’s review of whether their repossessions should be delayed or adjusted to account for their military service.
For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov. Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.
Johnstown Woman Plead Guilty to Distributing HeroinRead the Press Release
JOHNSTOWN, Pa. – A resident of Johnstown, Pa., pleaded guilty in federal court in Johnstown to a charge of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
Ava Blackwell, 24, of Johnstown, Pa. pleaded guilty to one count of the indictment before United States District Judge Kim R. Gibson.
In connection with the guilty plea, from Aug. 25, 2016, through Sept. 14, 2016, Blackwell conspired with a co-defendant to distribute and possess with the intent to distribute less than 100 grams of heroin.
Judge Gibson scheduled sentencing for February 20, 2018, at 1:30 p.m. The law provides for a maximum total sentence of 20 years in prison, a fine of $1,000,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Stephanie L. Haines is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation, and the Cambria County Drug Task Force, conducted the investigation that led to the prosecution of Blackwell.
Justice Department Obtains $5.4 Million in Additional Relief to Compensate Servicemembers for Unlawful Repossessions by Wells Fargo Dealer ServicesRead the Press Release
WASHINGTON – The Justice Department announced today that it has obtained an additional $5.4 million for servicemembers whose vehicles were unlawfully repossessed by Wells Fargo Bank, N.A. in violation of the Servicemembers Civil Relief Act (SCRA). The bank, which does business under the name Wells Fargo Dealer Services, has agreed to pay this money to approximately 450 servicemembers under a 2016 settlement that resolved the department’s SCRA lawsuit against the company. This additional amount brings the total compensation under the settlement to more than $10.1 million and the total number of servicemembers eligible for relief to more than 860.
On Sept. 29, 2016, the department filed a complaint in United States v. Wells Fargo Bank N.A., d/b/a Wells Fargo Dealer Services in United States District Court in Los Angeles, alleging that Wells Fargo repossessed 413 vehicles of SCRA-protected servicemembers without court orders between Jan. 1, 2008 and July 1, 2015. On the same day, the department agreed to a settlement that required Wells Fargo to pay $10,000 to each of the affected servicemembers, plus any lost equity in the vehicle with interest. Wells Fargo was also required to pay a $60,000 civil penalty to the United States and repair the credit of all affected servicemembers. At the time of the settlement, the department announced that 413 servicemembers were eligible to receive compensation.
Since entering into the settlement with the department in September 2016, Wells Fargo has identified additional violations affecting approximately 450 servicemembers that occurred during the period covered by the settlement. Wells Fargo has begun to provide over $5.4 million in compensation to these additional servicemembers under the agreement. Together with the compensation previously announced by the department in September 2016, a total of more than 860 servicemembers and their co-borrowers are eligible to receive $10,183,950.
“Just a few days ago, we observed Veterans Day to honor those who have served our country so bravely,” said Acting Assistant Attorney General John M. Gore. “The Justice Department will continue to honor their service throughout the year by vigorously enforcing servicemembers’ rights under federal law. The men and women of our armed forces should be able to devote their full attention to their military duties, without having to worry about their cars being repossessed back home. We are pleased that our settlement agreement has ensured that hundreds of additional servicemembers will be compensated for the damages they suffered as a result of illegal auto repossessions.”
“The SCRA provides important protections and is intended to prevent unnecessary financial hardship for the brave women and men who serve in our armed forces,” said Acting United States Attorney Sandra R. Brown. “Losing an automobile through an unlawful repossession while serving our country is a problem servicemembers should not have to confront. We are pleased that Wells Fargo is taking action to compensate these additional servicemembers as required under the settlement with the Justice Department. My Office is committed to protecting the rights of servicemembers on all fronts.”
The SCRA requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, Wells Fargo prevented servicemembers from obtaining a court’s review of whether their repossessions should be delayed or adjusted to account for their military service.
For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov. Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office.
Irish National Sentenced to 18 Months in Prison for Trafficking of Endangered Rhinoceros Horn Libation CupRead the Press Release
Michael Hegarty, an Irish national, was sentenced in federal court in Miami, Florida, today to 18 months in prison to be followed by three years of supervised release for fraudulently facilitating the transportation and concealment of a libation cup carved from the horn of an endangered rhinoceros, announced Jeffrey H. Wood, Acting Assistant Attorney General for the Environment and Natural Resources Division of the Department of Justice, and Benjamin G. Greenberg, Acting U.S. Attorney for the Southern District of Florida. U.S. District Court Judge Donald M. Middlebrooks issued the sentence.
In May 2014, a federal grand jury sitting in Miami, Florida, returned an indictment charging Michael Hegarty and a co-defendant with conspiring to traffic a libation cup made from an endangered rhinoceros. In addition to conspiracy, the indictment included charges for smuggling the cup from the United States to the United Kingdom and for obstructing justice by attempting to influence a witness. According to the indictment, and a Joint Factual Statement by the parties, Hegarty, along with co-defendant Richard Sheridan and a Florida resident, purchased the libation cup from an auction house in North Carolina. The group then transported the cup to Florida and falsified documentation to smuggle the cup from the United States.
“Today’s sentencing is the result of the strong partnership between the U.S. Fish and Wildlife Service and the Justice Department to investigate and prosecute those who engage in illegal trade in protected wildlife,” said Acting Assistant Attorney General Wood. “There is a frequent connection between wildlife smuggling and organized criminal activity. We remain committed to combatting this illegality.”
“We are committed to combatting international wildlife trafficking,” said Acting U.S. Attorney Benjamin G. Greenberg. “Our experienced prosecutors and law enforcement agents will continue to investigate, prosecute and bring to justice any violators who exploit and destroy protected wildlife for profit.”
“Today’s sentencing sends a message to those who profit from the slaughter and illicit trade of wildlife, you will be caught and prosecuted no matter where you hide,” said Ed Grace, Acting Chief of Law Enforcement for the U.S. Fish and Wildlife Service. “I commend our special agents who connected this defendant to the Rathkeale Rovers, a transnational organized crime syndicate responsible for trafficking endangered rhinoceros products worldwide. Thank you to our international counterparts and to the U.S. Department of Justice for arresting, extraditing, and prosecuting this individual.”
Rhinoceros are an herbivore species of prehistoric origin and one of the largest remaining mega-fauna on earth. They have no known predators other than humans. All species of rhinoceros are protected under United States and international law. Since 1976, trade in rhinoceros horn has been regulated under the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES), a treaty signed by over 170 countries around the world to protect fish, wildlife and plants that are or may become imperiled due to the demands of international markets.
Hegarty was arrested on Jan. 19, 2017, in Belgium pursuant to an international Red Notice submitted by the United States. Red Notices are requests, coordinated through Interpol, that ask member countries to provisionally arrest fugitives within their borders so that extradition proceedings can begin. In July 2017, Belgium extradited Hegarty to the United States for his role in trafficking a libation cup made from the horn of an endangered rhinoceros. Hegarty’s arrest and subsequent extradition were part of “Operation Crash,” a nationwide crackdown on criminal trafficking in rhinoceros horns.
Federal courts determine a sentencing range for every convicted defendant. This range is found by applying factors that are common for particular crimes, as set out in the United States Sentencing Guidelines. Although guidelines are advisory, many courts do sentence within the range. Hegarty’s eighteen month sentence was the high end of the sentencing range for his crime.Operation Crash was conducted by the Department of the Interior’s Fish and Wildlife Service (FWS), in coordination with other federal and local law enforcement agencies including U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. A “crash” is the term for a herd of rhinoceros. Operation Crash was an effort to detect, deter and prosecute those engaged in the illegal killing of rhinoceros and the unlawful trafficking of rhinoceros horns.
The investigation by was handled by the U.S. Fish & Wildlife Service, the U.S. Attorney’s Office for the Southern District of Florida and the Justice Department’s Environmental Crimes Section. Assistant U.S. Attorney Thomas Watts-FitzGerald and Trial Attorney Gary N. Donner of the Justice Department’s Environmental Crimes Section are in charge of the prosecution.Inmate Sentenced to Twenty Years’ Imprisonment in Connection with Racketeering Offenses Committed from Miami Federal PrisonRead the Press Release
James Sabatino, 41, was sentenced yesterday by United States District Judge Joan A. Lenard to 20 years’ imprisonment for organizing and leading a prison-based criminal enterprise that engaged in mail fraud, wire fraud, interstate transportation of stolen property, and the sale and receipt of stolen goods.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, Robert F. Lasky, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Robert Bourbon, Special Agent in Charge, United States Department of Justice, Office of the Inspector General (DOJ-OIG), Miami Field Office, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Miguel De La Rosa, Chief, Bal Harbour Police Department, made the announcement.
Sabatino previously pled guilty to conspiracy to violate the Racketeer Influenced and Corrupt Organizations (“RICO”) Act, in violation of Title 18, United States Code, Section 1962(d).
Between 2015 and 2017, Sabatino was incarcerated at the Federal Detention Center in Miami, Florida. While detained there, Sabatino obtained several cellular telephones, which he used to impersonate entertainment-industry employees and executives. Using the contraband cellular telephones, Sabatino contacted retail and jewelry store employees and brand representatives through telephone calls, e-mails, and text messages to request that the victims send handbags, wristwatches, apparel, jewelry, and other valuable items to various locations in South Florida and elsewhere. Sabatino claimed that the retail items would be featured in music videos and promotional materials that were being filmed and produced in Miami, Florida.
Sabatino also recruited multiple co-conspirators who operated at his direction in South Florida, New York, and Georgia. According to court records, Sabatino directed the victim companies to ship retail items and jewelry to these co-conspirators. The fraudulently obtained goods were valued at over $10 million. To date, investigators have recovered approximately $2,527,569 in stolen property and fraud proceeds, which were forfeited to the United States at the time of sentencing. In addition, as part of his sentence, Sabatino was ordered to pay over $10 million in restitution.
Sabatino’s co-defendants, Jorge Duquen, Valerie Kay Hunt, and Denise Siksha Lewis, previously pled guilty in Southern District of Florida case number 16-20519-CR-Lenard and were sentenced to various prison terms.
Mr. Greenberg commended the investigative efforts of the FBI, DOJ-OIG, BSO, and the Bal Harbour Police Department. Mr. Greenberg also thanked the Miami-Dade State Attorney’s Office for their assistance. This case is being prosecuted by Assistant United States Attorney Christopher B. Browne.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Holyoke Man Pleads Guilty to Distributing HeroinRead the Press Release
BOSTON - A Holyoke man pleaded guilty today in federal court in Springfield to distributing heroin.
Angel Baez, 28, pleaded guilty to one count of distribution and possession with intent to distribute heroin. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for March 1, 2018.
Baez was arrested and charged following a five-month federal law enforcement investigation into drug trafficking in Springfield and Holyoke. Baez possessed and distributed heroin on April 20 and April 26, 2016, in Holyoke.
According to court documents, Baez has three prior felony convictions in state court: a 2014 conviction for possession with intent to distribute heroin and cocaine; a June 2011 conviction for distributing heroin; and a July 2011 conviction for possession with intent to distribute heroin and cocaine.
The charge provides for a sentence of no greater than 30 years in prison, six years of supervised release and a fine of $1 million. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.Acting United States Attorney William D. Weinreb; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Springfield Police Commissioner John Barbieri; and Holyoke Police Chief James M. Neiswanger made the announcement today. Assistant U.S. Attorney Todd E. Newhouse of Weinreb’s Springfield Branch Office is prosecuting the case.
Hartford Man Pleads Guilty to Distributing Fentanyl and Heroin to Rocky Hill Overdose VictimRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, announced that EDWIN ESCRIBANO, also known as “Bebo,” 25, of Hartford, pleaded guilty today before U.S. District Judge Alvin W. Thompson in Hartford to one count of possession with intent to distribute, and distribution of fentanyl and heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on September 14, 2016, Rocky Hill Police and emergency medical personnel responded to a restaurant on a report of a male who had overdosed and was not breathing. The male, who was 29 years old, was pronounced deceased at the scene. Officers seized drug and non-drug evidence, including a cellophane tourniquet and syringe in the restaurant bathroom that ultimately tested positive for the presence of heroin and fentanyl. The investigation, which included analysis of the victim’s cellphone, revealed that ESCRIBANO had provided the drugs to the victim shortly before the victim’s death.
ESCRIBANO was arrested on federal criminal complaint on May 30, 2017.
Judge Thompson scheduled sentencing for February 9, 2018, at which time ESCRIBANO faces a maximum term of imprisonment of 20 years.
This matter has been investigated by the Drug Enforcement Administration and the Rocky Hill Police Department. This case is being prosecuted by Assistant U.S. Attorney John T. Pierpont, Jr.
Hartford Man Arrested on Narcotics Distribution Charges Stemming from Norwich Overdose DeathRead the Press Release
John H. Durham, United States Attorney for the District of Connecticut, today announced that FELIX LOPEZ, also known as “Pablo,” 23, of Hartford, was arrested yesterday on a criminal complaint charging him with narcotics distribution offenses.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
LOPEZ appeared today before U.S. Magistrate Judge Donna F. Martinez in Hartford and was ordered detained.
As alleged in court documents, on September 13, 2017, Norwich Police and emergency medical personnel responded to a report of an untimely death at a residence in Norwich. Responding officers were informed that the decedent, a 20-year-old woman, had an addiction to heroin. At the scene, officers seized drug and non-drug evidence, including the victim’s cell phone.
The State of Connecticut Office of the Chief Medical Examiner subsequently determined that the victim died from acute fentanyl and heroin intoxication.
It is alleged that LOPEZ supplied the heroin and fentanyl consumed by the victim shortly before she died.
At the time of his arrest, it is alleged that LOPEZ possessed a quantity of crack cocaine.
The complaint charges LOPEZ with possession with intent to distribute, and distribution of, controlled substances, and conspiracy to distribute controlled substances. Both offenses carry a maximum term of imprisonment of 20 years.
U.S. Attorney Durham stressed that a complaint is only a charge and is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Drug Enforcement Administration and Norwich, Hartford and Manchester Police Departments. This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Harrisburg Man Pleads Guilty to Making False Claims Against the United StatesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Geraldo Ramos, age 44, of Harrisburg, Pennsylvania, pleaded guilty on November 13, 2017, before United States Magistrate Judge Martin C. Carlson to a two count information charging him with conspiracy to submit false claims and submitting false claims against the United States regarding income tax refunds.
According to United States Attorney Bruce D. Brandler, between 2010 and 2014, Ramos acted as a tax return preparer and filed numerous false and fraudulent tax returns for family and friends claiming $58,659 in refunds they were not entitled to receive. As a result, the IRS paid the conspirators $52,711, which was shared with Ramos. The fraudulent tax returns included
misrepresenting Schedule C income, listing fictitious dependents and manipulating filing status.
The investigation was conducted by the Internal Revenue Service Criminal Investigation Division. Assistant United States Attorney Chelsea Schinnour prosecuted the case.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for both charges is 10 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Guatemalan Charged with Illegal Use of a Social Security NumberRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that YONI LOPEZ-ROJAS, age 25, a citizen Guatemala, was charged yesterday in a one-count Bill of Information for Illegal use of a Social Security Number in violation of Title 42, United States Code, Section 408(a)(7)(B).
LOPEZ-ROJAS faces a maximum term of imprisonment of not more than five years, a fine of $250,000 and a mandatory special assessment of $100. Additionally, LOPEZ-ROJAS is subject to a period of supervised release after imprisonment of up to three years
Acting U.S. Attorney 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.
Georgia Man Charged with Failing to Update Sex Offender RegistrationRead the Press Release
ERIE, Pa. - A former resident of Powder Springs, Georgia has been indicted by a federal grand jury in Erie on a charge of failure to register under SORNA, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Yecart Treson Brundidge, 24, as the sole defendant.
According to the indictment presented to the court, Brundidge knowingly failed to update his registration as required by the Sex Offender Registration and Notification Act.
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 offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Christian A. Trabold is prosecuting this case on behalf of the government.
The United States Marshal’s Service, the Erie Police Department and the Millcreek Township 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.
Four Laredo Men Sentenced for Trafficking NarcoticsRead the Press Release
LAREDO, Texas – Four Laredoans have been ordered to prison for their roles in a conspiracy to traffic drugs from Laredo to the Dallas area via the use of tractor trailers, announced Acting U.S. Attorney Abe Martinez. Javier Mota-Villanueva, 34, Armando Javier Picazo Jimenez, 43, Armando Eloy Gutierrez, 38, and Leopoldo Rodriguez III, 26, each had previously pleaded guilty for their respective roles.
Today, U.S. District Judge Diana Saldaña ordered Mota-Villanueva to serve a total of 120 months in federal prison to be immediately followed by five years of supervised release. The other three were sentenced last month. Picazo Jimenez and Gutierrez each received 120 months in prison, while Rodriguez was sentenced to a 24-month term of imprisonment.
Picazo Jimenez led a drug trafficking organization responsible for the transportation and distribution of multi-kilogram quantities of marijuana from Laredo to the Dallas area. Picazo Jimenez used his ties to the Nuevo Laredo source of supply to illegally import the bulk marijuana from Mexico into the US via Laredo. He recruited the co-conspirators to assist in storing and transporting the marijuana from Laredo to the Dallas area.
Gutierrez was in charge of finding warehouses for the organization to use and then soliciting shipping companies to transport trailers with marijuana and cover with loads of merchandise. Gutierrez also acted as a scout by following drivers transporting the drug loads through Border Patrol checkpoints. After passing the checkpoints, Gutierrez would drive to the Dallas area to assist in receiving and unloading the drugs.
Mota-Villanueva worked in the organization’s warehouses, where he wrapped the marijuana, moved pallets and loaded the drugs onto trailers.
Rodriguez was tasked with wrapping marijuana and assisting with loading of narcotics onto trailers at the organization’s warehouses.
The investigation revealed three warehouses in Laredo that the organization used at different periods from on or about September 2013 to on or about July 31, 2014. They were located on the 1800 block of Aduanales, the 200 block of Corpus Christi Street and the 1600 block of West Calton. During the investigation, law enforcement agents seized three loads of marijuana with a combined weight of more than 1600 kilograms originating from these warehouses.
The Drug Enforcement Administration conducted the investigation with the assistance of task force members from the Webb County District Attorney’s Office and the Laredo Police Department. Assistant U.S. Attorneys Mary Lou Castillo and Mike Eaton are prosecuting the case.
Fort Dodge Man to Federal Prison for Firearm ConvictionRead the Press Release
A man who illegal possessed firearms was sentenced November 9, 2017, to more than 8 years in federal prison.
Johnathan Edward Meier, 34, from Fort Dodge, Iowa received the prison term after a June 6, 2017, guilty plea to being a felon in possession of firearms.
At the plea hearing, Meier admitted that on February 14, 2016, he possessed two firearms, namely a Harrington & Richardson .38 caliber pistol and a Hi-Point 9mm pistol. Meier also admitted that at the time he also possessed 30 grams of marijuana, and drug use and distribution paraphernalia. Meier was previously convicted of four separate state criminal offenses, punishable by more than one year, namely: (1) Burglary in the Third Degree and Trafficking in Stolen Weapons in the Iowa District Court for Pocahontas County on or about March 4, 2003; (2) Burglary in the Third Degree, on or about November 16, 2009, in the Iowa District Court for Emmet County; (3) Sale or Transport of a Controlled Substance, on or about June 6, 2013, in the Superior Court of California, Orange County; and (4) Possession of Marijuana, more than one pound, on or about September 22, 2014, in Nebraska District Court for York County.
Meier was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Meier was sentenced to 103 months’ imprisonment. A special assessment of $100. He must also serve a 3-year term of supervised release after the prison term. There is no parole in the federal system. Meier is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case is being prosecuted by Assistant United States Attorney Shawn S. Wehde and was investigated by the Fort Dodge Police Department and 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 16-3013. Follow us on Twitter @USAO_NDIA.
Fort Dodge Man Sentenced to Two Years in Prison for Violating Federal Supervised ReleaseRead the Press Release
A man who failed to comply with conditions of federal supervised release was sentenced November 14, 2017, to two years in federal prison.
Sterling Lee Clark, 27, from Fort Dodge, Iowa, was originally sentenced in federal district court for the Northern District of Iowa, on April 9, 2012, to 57 months’ in prison for possession of a firearm by a felon. Clark was released on three years’ of federal supervised release on June 10, 2016. At his revocation hearing, Clark admitted violations which included four separate deliveries of cocaine in August/September 2016, to which he pled guilty in Webster County, Iowa District Court and for which he was sentenced to 10 years’ in state prison in November 2016. Clark was released on state parole in October 2017, and transferred to federal custody for disposition of his federal supervised release violations.
On November 14, 2017, The Honorable Mark W. Bennett, federal district court judge, revoked Clark’s federal supervised release and sentenced Clark to 24 months’ imprisonment with an additional 12 months’ of supervised release to follow his term of imprisonment. Clark 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 Shawn S. Wehde and investigated by U.S. Probation Office, Fort Dodge Police Department, Webster County Sheriff’s Office and Iowa Division of Narcotics Enforcement.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 11-3034.
Follow us on Twitter @USAO_NDIA.
Former Whitman Police Sergeant Sentenced to Prison for Embezzling Funds from Disabled VeteransRead the Press Release
BOSTON – A former Whitman, Mass. police sergeant was sentenced today in connection with misappropriating funds from the accounts of disabled veterans while he was a fiduciary appointed by the U.S. Department of Veterans Affairs (VA) and for preparing false income tax returns for clients of his tax preparation business.
Glenn P. Pearson, 62, was sentenced by U.S. District Court Chief Judge Patti B. Saris to 48 months in prison and three years of supervised release. Chief Judge Saris also ordered Pearson to pay $252,992 in restitution to the VA, and $826,865 in restitution to the IRS. In May 2017, Pearson pleaded guilty to wire fraud, misappropriation by a federal fiduciary, preparation of fraudulent tax returns, and obstruction of the Internal Revenue Service (IRS).
From 2007 to 2012, Pearson was appointed as a VA fiduciary for eight disabled veterans. Pearson took advantage of that position by misappropriating and embezzling VA-issued benefit money out of the accounts of several veterans for whom he served as fiduciary. Pearson used the embezzled funds for, among other things, paying down the mortgage on his house.
Beginning in 2012, Pearson operated a tax preparation business called FTS Tax Services, through which he prepared personal income tax returns, and amended returns, for clients. From 2012 to 2016, Pearson prepared numerous returns that included false credits and fictitious deductions in an effort to get his clients larger refunds than they were entitled to receive. When Pearson’s clients were audited by the IRS, Pearson took steps to obstruct the IRS – including making false statements to the IRS and preparing false documents for his clients to submit to the IRS during the audits. Pearson also filed his own false income tax returns with the IRS that underreported his income.
Acting United States Attorney William D. Weinreb; Acting Deputy Assistant Attorney General of the Justice Department’s Tax Division Stuart M. Goldberg; Harold H. Shaw, Special Agent in Charge Federal Bureau of Investigation, Boston Field Division; Joel P. Garland, Special Agent in Charge of Internal Revenue Service’s Criminal Investigations in Boston; and Donna L. Neves, Special Agent in Charge of the Department of Veterans Affairs, Office of Inspector General, Northeast Field Office, made the announcement today. Assistant U.S. Attorney Vassili Thomadakis of Weinreb’s Criminal Divison and Karen E. Kelly, Assistant Chief at the Tax Division, prosecuted the case.
Former Treasurer of Local Labor Union Pleads Guilty to EmbezzlementRead the Press Release
NORFOLK, Va. – A Portsmouth woman pleaded guilty today to an embezzlement scheme that nearly wiped out an account used to assist sick or distressed members of a local labor union.
According to court documents, Tamika Bullock, 39, was appointed in September 2015 to serve as the Secretary-Treasurer of International Brotherhood of Boilermakers Local 684. The union maintains a “sick and distressed” account, which is funded entirely by voluntary contributions and is solely used to assist union members who are sick or otherwise out of work. Between January 2016 and October 2016, Bullock embezzled $24,600 from the union, with over $21,400 being stolen from the “sick and distressed” account. As Secretary-Treasurer, Bullock provided financial reports at the monthly meeting of the union membership and made false statements about the balance in the account in order to conceal her embezzlement, reporting balances up to $15,000 higher than the actual balance. She used the $24,600 she embezzled for her own personal benefit, including paying for a cruise.
Bullock pleaded guilty to embezzlement of funds from a labor organization and faces a maximum penalty of five years in prison when sentenced on Feb. 15, 2018. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and Mark Wheeler, District Director of the Washington District Office, U.S. Department of Labor, Office of Labor-Management Standards, made the announcement after U.S. Magistrate Judge Douglas E. Miller accepted the plea. Assistant U.S. Attorney Alan M. Salsbury is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-97.
Former President and CEO of Farmer's Exchange Bank Sentenced to PrisonRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on November 9, 2017, Judge J.P. Stadtmueller, sentenced former Neshkoro banker Geffrey Sawtelle, (age: 64), to two years in prison following his conviction on three counts of bank fraud, in violation of Title 18 United States Code section 1344; one count of false bank entry, in violation of Title 18 United States Code section 1005, and one count of false statement to federal bank examiners, in violation of Title 18 United States Code section 1001. The court also imposed a $20,000 fine, $500 in special assessments, and ordered Sawtelle to pay $338,000 in restitution. Following his prison sentence, Sawtelle will also serve two years of supervised release. Sawtelle pled guilty on July 19, 2017, to the five counts of conviction and acknowledged that the court would consider counts that were dismissed pursuant to the plea agreement as relevant conduct for sentencing purposes.
The former president and CEO of Farmer’s Exchange Bank, and a shareholder in the bank holding company, Sawtelle had been charged in a 45-count indictment, which alleged that over a ten-year period, he devised and executed a scheme to obtain bank funds for his personal use. Sawtelle used many of the funds to support his hobby of auto sports racing, and he created false bank entries and made false statements to federal bank examiners in order to hide his theft and misapplication of the bank funds. In addition, the indictment alleged that Sawtelle took unauthorized salary bonuses and created nominee loans for his own benefit, and that upon the sale of the bank in 2015, he attempted to defraud his holding company partners through a wire fraud scheme that resulted in multiple money laundering counts. Farmer’s Exchange Bank was sold to Hometown Bank in November 2015.
Sawtelle’s conduct was initially discovered during a routine bank examination by the Wisconsin Department of Financial Institutions, Division of Banking. He was removed from the bank in May 2014, after a more in depth investigation by regulators from the Federal Deposit Insurance Corporation.
In sentencing Sawtelle, Stadtmueller noted that the two-year prison sentence was fair, just, reasonable, and appropriate because the core facts of the defendant’s conduct were inconsistent with the level of trust that had been placed in him. Stadtmueller noted that it should also serve as a message to the community.
“Bank executives who intentionally falsify bank records to deceive regulators must be brought to justice for their actions,” said Mark Bialek, Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau. “Such actions impact the safety and soundness of financial institutions. I commend our agents and their federal law enforcement partners for their hard work and persistence, which ultimately led to this conviction.”
The criminal case was investigated by agents from the Office of Inspector General of the Federal Deposit Insurance Corporation, the Office of Inspector General of the Board of Governors of the Federal Reserve System and Consumer Financial Protection Bureau, and the Federal Bureau of Investigation. The case was prosecuted by Assistant United States Attorneys Carol L. Kraft and Rebecca Taibleson.
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For Additional Information Contact:
Public Information Officer Dean Puschnig, (414) 297-1700
Former Massachusetts Police Sergeant Sentenced to Prison for Embezzling Funds from Disabled Veterans and Running Fraudulent Tax Preparation BusinessRead the Press Release
A former Whitman, Massachusetts, police sergeant was sentenced to 48 months in prison today for preparing false income tax returns for clients of his tax preparation business, obstructing the internal revenue laws, and misappropriating funds from the accounts of disabled veterans while he was a fiduciary appointed by the U.S. Department of Veterans Affairs (VA), announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Department of Justice’s Tax Division and Acting U.S. Attorney William D. Weinreb for the District of Massachusetts.
According to documents filed with the Court, from 2007 to 2012, Glenn P. Pearson, 61, was appointed a VA fiduciary for eight disabled veterans of the U.S. armed forces. A veteran, who has been awarded VA benefits but is unable to manage his or her funds due to injury, disease, mental incompetence or infirmities of advanced age, can have a fiduciary appointed by the VA to receive funds on the veteran’s behalf and to manage those funds for the benefit of the veteran. Pearson used his position as a fiduciary to embezzle more than $250,000 in VA-issued benefit money from the accounts of several veterans.
Moreover, beginning in 2012, Pearson operated FTS Tax Services, a tax preparation business through which he prepared false tax returns for clients for a fee. From 2012 through 2015, Pearson prepared numerous tax returns that included false credits and fictitious deductions in an effort to obtain bigger refunds for his clients than they were entitled to receive. When Pearson’s clients were audited by the Internal Revenue Service (IRS), Pearson took steps to obstruct the IRS—including making false statements to the IRS and preparing false documents for his clients to submit to the IRS during the audits. Pearson also falsely underreported his own income on his personal federal income tax returns. Pearson admitted to causing a total tax loss of more than $1.5 million.
In addition to the term of prison imposed, Chief United States District Judge Patti B. Saris ordered Pearson to serve three years of supervised release and to pay restitution to the VA in the amount of $252,992 and restitution to the IRS in the amount of $826,865. Pearson pleaded guilty in May to wire fraud, misappropriation by a federal fiduciary, preparation of fraudulent tax returns and obstructing the internal revenue laws.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Weinreb thanked special agents of IRS Criminal Investigation, FBI and VA–OIG, who conducted the investigation, and Assistant U.S. Attorney Vassili Thomadakis and Assistant Chief Karen Kelly of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Federal Bureau of Prisons Correctional Officer Sentenced to 8 Months in Prison for Engaging in Sexual Conduct with an InmateRead the Press Release
Former Federal Bureau of Prisons Correctional Officer Damon Coleman was sentenced to prison today for engaging in sexual conduct with an inmate under his custodial authority while Coleman was working at the Federal Detention Center (“FDC”) in downtown Miami.
Benjamin G. Greenberg, Acting United States Attorney for the Southern District of Florida, and Robert Bourbon, Special Agent in Charge, United States Department of Justice, Office of the Inspector General (DOJ-OIG), Miami Field Office, made the announcement.
Coleman previously pled guilty to sexual abuse of a ward, specifically, a Federal inmate in custody at the FDC-Miami, in violation of Title 18, United States Code, Section 2243(b). United States District Court Judge Robert N. Scola sentenced Coleman to 8 months’ imprisonment, followed by 5 years of supervised release, which will include 8 months of home detention in addition to the term of incarceration.
According to the court record and statements made in open court at the change of plea and sentencing hearings, in June 2016, Coleman engaged in sexual conduct with a female Federal prisoner held at the FDC while awaiting her sentencing. Coleman, and the inmate who was under his custodial authority, engaged in sexual intercourse, violating Section 2243(b), which prohibits any sexual-type conduct between prison officials and inmates.
Mr. Greenberg commended the investigative efforts of the Department of Justice’s Office of Inspector General. This case was prosecuted by Assistant United States Attorney Breezye Telfair and Senior Litigation Counsel Edward Stamm.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Cox Communications Vice President pleads guilty to conspiring to embezzle millions of dollarsRead the Press Release
ATLANTA – Janet West, a former Cox Communications vice president, has pleaded guilty to her part in an embezzlement scheme that cost the company millions of dollars.
“West defrauded a company that trusted her judgment as a vice president,” said U.S. Attorney Byung J. “BJay” Pak. “The temptation to steal via a credit card may be appealing. This defendant wishes she had thought twice about the potential outcome.”
“This case should be an example that no matter your position, you cannot profit illegally or take advantage of your status in the company you were entrusted to work for,” said David J. LeValley, Special Agent in Charge of FBI Atlanta. “The FBI is committed to making cases like this a strong deterrent to greed’s temptation.”
According to U.S. Attorney Pak, the charges and other information presented in court: West was Cox Communications’ Vice President in charge of Nationwide Field Marketing for the company’s plan to bring Gigabit speed connections to markets throughout the United States. Beginning in 2011, West began directing her assistant to make payments on the assistant’s corporate credit card to a third party company for supposed marketing services. In reality, a significant portion of these services never actually occurred and the majority of these funds were actually secretly being transferred back to the defendant. West repeatedly signed false conflict of interest certifications with Cox Communications that failed to disclose the payments she was making to herself.
West caused Cox to make payments totaling $2.4 million to this third party, most of which was then sent back to her. The defendant then used the embezzled funds for her own personal benefit, including making payments on two houses she owned in Arizona. Pursuant to the plea agreement in this case, West agreed to forfeit her interests in both of these houses.
Sentencing for Janet West, 47, of Paradise Valley, Arizona, is scheduled for March 12, 2018, at 10:30 a.m., before U.S. District Judge Amy Totenberg.
This case is being investigated by the Federal Bureau of Investigation.
Assistant U.S. Attorney Thomas J. Krepp and Kelly K. Connors are prosecuting the case.
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.
Former City of Vallejo Employee Sentenced for Accepting a BribeRead the Press Release
SACRAMENTO, Calif. — Donald Burton, 51, of Vallejo, was sentenced today to a year in prison and a $10,000 fine for his part in a bribery scheme involving city contracts, U.S. Attorney Phillip A. Talbert announced.
“When public officials take bribes, they put their greed ahead of the interests of the people they serve,” said Special Agent in Charge Sean Ragan of the FBI Sacramento Field Office. “Donald Burton abused his position as a landscape manager in the City of Vallejo by seeking kickbacks in exchange for steering contacts to a private company. The FBI is committed to investigating public corruption. With the help of private citizens who take a stand against corrupt behavior, the FBI will continue to protect the integrity of government at all levels.”
Burton pleaded guilty on August 1, 2017. According to court documents, Burton was previously employed in the Public Works Engineering Division of the City of Vallejo as the landscape manager. In that position, Burton regularly contracted with local landscape companies to provide services for Vallejo. The City of Vallejo received substantial federal funding, including over $500,000 in Community Development Block Grants from the U.S. Department of Housing and Urban Development.
In the Spring of 2017, Burton solicited a bribe from the owner of a company that provides maintenance services, requesting a 10 percent kickback in exchange for steering contracts to that company. The business owner complained to the Federal Bureau of Investigation and assisted in the investigation by meeting with Burton in an undercover capacity. During those meetings, Burton directed that additional days of work be added to contracted jobs so that Burton and the owner could divide up the profit. Burton stated that the excess amount in the contracts would generally add up to $5,000, and that Burton would take $2,000.
According to the plea agreement, the business owner provided the written contracts that inflated the number of days required to do a job from 10 days to 15, and Burton approved and signed the contracts. On June 7, 2017, the business owner met with Burton and gave him the $2,000 bribe payment. Burton was arrested after taking the payment.
This case was the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorney Jared C. Dolan prosecuted the case.
Former Bank Employee Sentenced to Federal Prison for Embezzling Nearly $300,000Read the Press Release
A woman who embezzled bank funds was sentenced November 14, 2017, to six months of incarceration.
Cindy Harris, 51, currently from Missoula, Montana, received the prison term after a June 22, 2017, guilty plea to one count of bank theft, embezzlement and misapplication of funds.
At the guilty plea, Harris admitted that from about 2002 and continuing through about July 2013, when she was an employee of the Emmet County State Bank, she willfully embezzled approximately $299,327.50, in cash and coin from the bank vault without the permission of the bank and with the intent to defraud the bank.
Harris was sentenced in Sioux City by United States District Court Chief Judge Leonard T. Strand. Harris was sentenced to three months in federal prison, to be followed by three months of electronically monitored home confinement. A special assessment of $100 was imposed, and she was ordered to make restitution in the amount of, $299,327. Harris must also serve a four-year term of supervised release after the prison term.
The case was investigated by the Federal Bureau of Investigation, and the Iowa Division of Criminal Investigation.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 17-3022. Follow us on Twitter @USAO_NDIA.
Former Atlantic County Prosecutor’s Office Detective Admits Mortgage Fraud ConspiracyRead the Press Release
CAMDEN, N.J. – An Atlantic County, New Jersey, woman today admitted her role in a more than $200,000 mortgage fraud conspiracy involving a property she purchased in Mays Landing, New Jersey, Acting U.S. Attorney William E. Fitzpatrick announced.
Betsy Borges, 38, of Mays Landing, pleaded guilty before Senior U.S. District Judge Jerome B. Simandle in Camden federal court to an information charging her with one count of conspiracy to commit bank fraud.
Borges was originally charged by complaint in May 2017 with Iraida Fuentes, 35, of Pleasantville, New Jersey.
According to documents filed in this case and statements made in court:
In December 2002, Borges purchased 4957 Cardigan Court in Mays Landing. Despite failing to make mortgage payments to Wachovia and its successor, Wells Fargo, Borges collected rental income from tenants living in the property and concealed that income from the banks. Borges also falsely represented to Wells Fargo, on multiple occasions, that she could not make the mortgage payments for the property.
Borges subsequently arranged with Wells Fargo for Fuentez to purchase the property through a short sale. Not only did Borges and Fuentez conceal their familial relationship from Wells Fargo, they also concealed the fact that Borges and another conspirator provided Fuentez the funds to purchase the property.
On Sept. 20, 2012, Fuentez purchased the property at a price well below its actual value. On Nov. 22, 2016, B&B Properties – a company owned in part by Borges – purchased the property from Fuentez for $25,000. On Feb. 3, 2017, Borges then individually purchased the property from B&B Properties for a dollar.
The bank fraud conspiracy charge carries a maximum potential penalty of five years in prison and a $250,000 fine. As part of her plea agreement, Borges must forfeit $206,450 in criminal proceeds from the scheme. Sentencing is scheduled for Feb. 23, 2018.
Fuentes previously pleaded guilty on Nov. 6, 2017 to making a false declaration in the grand jury in relation to this matter and awaits sentencing.
Acting U.S. Attorney Fitzpatrick credited agents of the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s guilty plea. He also thanked the Atlantic County Prosecutor’s Office, under the direction of Prosecutor Damon Tyner, and the Ocean County Prosecutor’s Office, under the direction of Prosecutor Joseph D. Coronato, for their assistance.
The government is represented by Assistant U.S. Attorney Jacqueline M. Carle of the U.S. Attorney’s Office Criminal Division in Camden.Defense counsel: Louis M. Barbone Esq., Atlantic City, New Jersey.
Florida Man Sentenced to over Three Years for Credit Card Fraud and Aggravated Identity TheftRead the Press Release
Portland, Maine: United States Attorney Halsey B. Frank announced that Yaisder Herrera Gargallo, 24, of Miami, Florida, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to 40 months in prison and three years of supervised release for conspiracy to commit access device fraud and aggravated identity theft. He pleaded guilty on June 19, 2017.
Court records show that between about November 2015 and June 2016, the defendant and others used stolen credit and debit card numbers to purchase merchandise. In June 2016, as part of the conspiracy, the defendant and others traveled to Maine. On June 14, 2016, the defendant purchased over $400 worth of merchandise at a Portland Walgreens using a stolen card number belonging to a victim from New Gloucester, Maine. The next day, after the defendant made another fraudulent purchase using a different card number at another Portland Walgreens, store personnel notified the police and provided a license plate number.
On June 18, 2016, a Cumberland County Sheriff’s Office deputy stopped the vehicle in which the defendant and three other men were traveling. The stop led to their arrest and the discovery of merchandise, numerous fraudulent credit cards and a laptop computer. The laptop computer was later found to contain credit card numbers and related data, including the stolen card number the defendant had used to make the fraudulent purchase on June 14, 2016.
The defendant’s three co-defendants—Jose Castillo Febles, Juan Carlos Febles and Meylisi Rueda—have pleaded guilty and await sentencing.
The case was investigated by the Cumberland County Sheriff’s Office, the Portland Police Department and the U.S. Secret Service.
Florida CPA Convicted by Federal Jury in Boston of Tax FraudRead the Press Release
BOSTON – A Florida man was convicted today by a federal jury in Boston of multiple counts of tax fraud and obstructing the Internal Revenue Service (IRS).
Greg Takesian, 53, of Miami, Fla., was convicted following a five-day jury trial of four counts of filing false tax returns and one count of attempting to obstruct and impede the IRS. U.S. District Court Judge William G. Young scheduled sentencing for Feb. 3, 2018.
Takesian, a certified public accountant (CPA), worked for Takesian & Company, a tax consulting firm owned by his father. Although Takesian ran the day-to-day business, he did not have an ownership stake in the company. Between 2008 and 2011, Takesian & Company received more than $2 million for tax and consulting services from At Home VNA, a home health company located in Waltham.
Takesian spent more than $991,000, taken from Takesian & Company’s bank account, on personal expenses, including cash and check payments to his wife and his girlfriend. In total, Takesian gave his wife more than $500,000 from the company bank account and his girlfriend over $200,000 of company funds. He also spent the money on Caribbean cruises, expensive clothing and nightclubs. After learning of the federal investigation, Takesian also filed false corporate and personal amended returns in an effort to cover up the nearly $1 million of unreported income.
The charging statute provides a sentence of no greater than three years in prison, one year of supervised release, and a fine of $100,000 on each count. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William D. Weinreb; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Phillip Coyne, Special Agent in Charge of Health and Human Services, Office of Inspector General, Office of Investigations, made the announcement today. Assistant U.S. Attorneys Neil J. Gallagher and Rachel Y. Hemani of Weinreb’s Criminal Division are prosecuting the case.
Florence Woman Sentenced in Federal Court on Fraud ChargesRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Crystal Lynn Norris, age 27, of Florence, SC, was sentenced today in federal court in Florence, South Carolina, for Conspiracy to Manufacture and Pass Forged and Counterfeited Securities, a violation of Title 18, United States Code, § 371. United States District Judge Bryan Harwell, of Florence, sentenced Norris to 16 months imprisonment followed by 3 years of supervised release.
The evidence presented at the guilty plea hearing established that during the period from November through December of 2016, Norris was involved in a conspiracy to manufacture and pass forged and counterfeited securities (checks) of organizations. Norris and another person stole mail from mailboxes at various residences in Florence and Darlington Counties, looking for checks within the mail. Norris would then either alter or forge the stolen checks by substituting herself as the payee or would use genuine bank account and routing numbers from the stolen checks to make counterfeit checks. Norris then went to banks in Florence and Easley to present the forged and counterfeited checks for payment.
The case was investigated by agents of the U.S. Postal Inspection Service with the assistance of the Florence County Sheriff’s Office, the Florence Police Department, and the Easley Police Department. Assistant United States Attorney A. Bradley Parham of the Florence office prosecuted the case.
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Felon from Roswell Sentenced to Prison for Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Gilbert Dutchover, 58, of Roswell, N.M., was sentenced this morning in federal court in Las Cruces, N.M., to an 18-month term of imprisonment for violating the federal firearms laws. Dutchover will be on supervised release for two years after completing his prison sentence.
Dutchover was arrested on May 5, 2017, on an indictment charging him with being a felon in possession of a firearm and ammunition on Aug. 18, 2014, in Chaves County, N.M. According to the indictment, Dutchover previously was convicted of unlawful carrying of a firearm into a licensed liquor establishment, being a felon in possession of a firearm or destructive device, receiving stolen property, and cocaine trafficking.
On July 10, 2017, Dutchover pled guilty to the indictment and admitted that on Aug. 18, 2014, law enforcement officers found a pistol and ammunition in his garage while executing a search warrant at his residence. Dutchover further admitted that he was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Chaves County Sheriff’s Office and the Pecos Valley Drug Task Force. Assistant U.S. Attorneys Luis A. Martinez and Selesia L. Winston of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
The Pecos Valley Drug Task Force is comprised of officers from the Eddy County Sheriff’s Office, Carlsbad Police Department and Artesia Police Department and is part of the HIDTA Region VI Drug Task Force. The High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Federal Grand Jury IndictmentsRead the Press Release
Columbia, South Carolina----United States Attorney Beth Drake stated today that a Federal Grand Jury in Charleston, South Carolina, returned Indictment(s) against the following:
Former Town of Kiawah Officials Indicted for Wire Fraud. Tumiko Rucker, age 42, of Johns Island, S.C., and Harrison Kenneth Gunnells, age 59, of Mount Pleasant, S.C., were charged in a 1-count Indictment with Conspiracy to Commit Wire Fraud, a violation of Title 18, United States Code, Sections 1349 and 1344. The maximum penalty that Rucker and Gunnells could receive is 20 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the Federal Bureau of Investigation (FBI) and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
Georgia Man Indicted for Failure to Register as a Sex Offender and Possession of a Gun by a Convicted Felon. Mariel Watson, age 28, of Columbus, Georgia, was charged in a 2-count Indictment with Failure to Register as a Sex Offender and Possession of a Firearm by a Convicted Felon, a violation of Title 18, United States Code, Sections 2250 and 922. The maximum penalty that Watson could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the U.S. Marshals Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
Man Indicted for Immigration Offense. Luis Rivera-Perez, age 34, of Mexico, was charged with the Illegal Reentry of a Felon, a violation of Title 8, United States Code, Section 1326. The maximum penalty that Rivera-Perez could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the ICE - Homeland Security Investigations and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
Man Indicted for Immigration Offense. Cesar Antonio Zepahua-Rodriguez, age 33, of Mexico, was charged with the Illegal Reentry of a Felon, a violation of Title 8, United States Code, Section 1326. The maximum penalty that Zepahua-Rodriguez could receive is 10 years imprisonment and a maximum fine of $250,000. The case was investigated by agents of the ICE - Homeland Security Investigations and is assigned to Assistant United States Attorney Rhett DeHart of the Charleston office for prosecution.
The United States Attorney stated that all charges in indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.
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Erie Woman Charged with Providing a False Document to Obtain Government BenefitsRead the Press Release
ERIE, Pa. - A resident of Erie, Pennsylvania has been indicted by a federal grand jury in Erie on a charge of false writing or document to the government, Acting United States Attorney Soo C. Song announced today.
The one-count indictment named Lana Talisha Thillet, 36, of Erie, Pennsylvania, as the sole defendant.
According to the indictment presented to the court, on or about August 26, 2016, Thillet knowingly used a false document that contained a fraudulent statement to represent that a minor child receiving Social Security Income (SSI) and auxiliary insurance benefits was residing with the defendant and that all of the $8,976.00 in SSI and auxiliary insurance benefits were used for the care and support of the minor child. Ms. Thillet well knew that the minor child did not reside with her and the $8,796.00 was not used for the care and support of the minor child.
The law provides for a maximum total sentence of 5 years in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Marshall J. Piccinini is prosecuting this case on behalf of the government.
The Social Security Administration, Office of Inspector General, 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.
DuBois Man Charged with Possessing and Distributing Child PornographyRead the Press Release
JOHNSTOWN, Pa. – On November 8, 2017, a resident of DuBois, Pa. was indicted by a federal grand jury in Johnstown on charges of distribution and possession of child pornography, Acting United States Attorney Soo C. Song announced today.
The indictment named Darren J. Salgado, 32, of DuBois, Pa., as the sole defendant.
According to the indictment presented to the court, on October 17, 2016, Salgado knowingly distributed pictures and videos in individual computer graphic files depicting a minor engaging in sexually explicit conduct. The indictment further alleges that on June 28, 2017, Salgado possessed images of minors engaged in sexually explicit conduct, which were produced using prepubescent minors engaging in sexually explicit conduct. The computer graphic files were shipped or transported in interstate or foreign commerce.
The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000 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 John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Department of Homeland Security, Homeland Security Investigations, 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who sexually exploit children and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Doctor and Four Executives Plead Guilty in $30 Million Scheme to Defraud Medicare and MedicaidRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that five defendants have pleaded guilty in the past week to participating in a scheme to defraud Medicare and Medicaid through the operation of eight medical clinics and related health care providers in Brooklyn. The defendants pleading guilty are Dr. MUSTAK Y. VAID, medical supply company president MARINA BURMAN, clinic executives ASHER OLEG KATAEV, a/k/a “Oleg Kataev,” and ALLA TSIRLIN, and IVAN VOYCHAK, who helped run two of the fraudulent clinics and a related ambulette company. The defendants were charged with participating in a $30 million health care fraud scheme. As part of the scheme, the defendants or their co-conspirators paid cash kickbacks to elderly patients (the “Paid Patients”) insured by Medicare and/or Medicaid, and then billed Medicare and Medicaid for unnecessary medical services, tests, and supplies.
Acting U.S. Attorney Joon H. Kim said: “These five defendants bilked Medicare and Medicaid out of millions of dollars for unjustified medications, procedures, and supplies. Medicare and Medicaid were established to assist the elderly and economically disadvantaged, not to serve as cash cows for corrupt professionals.”
Five additional defendants remain under indictment in the case, which is scheduled to go to trial before United States District Judge Lorna G. Schofield on April 23, 2018. Those remaining defendants are presumed innocent unless and until proven guilty.
As alleged in the Indictment and in court papers and proceedings in the case: Aleksandr Burman, an individual with no medical license, established eight medical clinics in Brooklyn (the “Related Clinics”), which operated between 2007 and 2013. For each clinic, Aleksandr Burman hired a doctor, one of whom was VAID, as the nominal owner of the clinic, since New York State law requires that such clinics be owned by a medical professional. In fact, however, VAID was hired by Aleksandr Burman simply to pose as the owner of one of the clinics, and to sign medical charts falsely stating that he had examined a number of Paid Patients, and to provide prescriptions and referrals for medically unnecessary supplies.
In pleading guilty, the five defendants have admitted to various specific roles in operating several of the clinics and two related businesses.
VAID, 44, a physician, pled guilty before Magistrate Judge Henry B. Pitman on November 8, 2017 to charges of falsely holding himself out as the owner of one medical clinic, and falsely signing medical documents stating that he had provided medical services that he had not.
BURMAN, 54, is a resident of Manhattan whose former husband, Aleksandr Burman, previously pleaded guilty in a related indictment and was sentenced in May 2017 to 10 years in prison. BURMAN pled guilty before Judge Schofield on November 14, 2017 to charges that, as the registered president and owner of Universal Supply Depot, she fraudulently billed Medicaid more than $3 million for medical equipment, particularly including large amounts of adult diapers, that were in fact not dispensed. BURMAN was also charged with arranging for Paid Patients to exchange their diaper prescriptions for valuable merchandise, such as bed linens, tablecloths, dishes, kitchen appliances, and other housewares.
KATAEV, 49, and TSIRLIN, 47, who are siblings, pled guilty to charges of helping operate two of the fraudulent clinics, where they participated in bribing patients and causing fraudulent bills to be submitted to Medicare and Medicaid. KATAEV pled guilty before Magistrate Judge Barbara C. Moses on November 6, 2017. TSIRLIN pled guilty before Judge Pitman on November 9, 2017.
VOYCHAK, 37, pled guilty before Magistrate Judge Kevin Nathaniel Fox on November 13, 2017 to charges that he helped operate a medical ambulette company that fraudulently billed Medicaid for transportation services that were not medically necessary, and participated a scheme to pay kickbacks to patients at the fraudulent medical clinics.
Each of the defendants pled guilty to Counts One and Two of the indictment. Count One charges the defendants with conspiring to commit health care fraud, mail fraud, and wire fraud; while Count Two charges each defendant with health care fraud. Count One carries a maximum sentence of 20 years in prison, while Count Two carries a maximum penalty of 10 years in prison.
The statutory maximum sentence is prescribed by Congress and provided here for informational purposes only, as the appropriate sentences will be determined by the Judge.
Mr. Kim praised the investigative work of the New York FBI’s Health Care Fraud Task Force and the New York State Office of the Medicaid Inspector General (“OMIG”).
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis is in charge of the prosecution.