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Thursday 6 July 2017
Pittsburgh Man Admits Robbing 2 Western Pennsylvania PharmaciesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to commit robbery of a pharmacy, robbery of a pharmacy, brandishment of a firearm in relation to a crime of violence, and possession with the intent to distribute Schedule II controlled substances, Acting United States Attorney Soo C. Song announced today.
Stephan Edward Corrick, 66, pleaded guilty to six counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that on March 11, 2016, Palmer's Pharmacy located in Russellton, (Allegheny County) Pennsylvania, was robbed by two individuals armed with firearms and wearing masks. The suspects stole approximately 10,000 dosage units of prescription drugs, including Oxycodone and Fentanyl, with an estimated street value of approximately $235,000. As a result of their comprehensive and extensive investigation, the Drug Enforcement Administration (DEA) and West Deer Police Department developed a general description of at least one suspect.
On April 28, 2016, Keystone Pharmacy located in New Alexandria Boro, (Westmoreland County) Pennsylvania, was robbed by two individuals wearing masks. One suspect had a gun and the other had pepper spray. The assailants placed employees on the ground and handcuffed them. Investigators determined that between 15,000 - 20,000 dosage units were stolen. Noting the similarities between both robberies, DEA then coordinated its investigation with that of the Pennsylvania State Police to identify and arrest the individuals in question. Agents determined that Corrick purchased the Kylo Ren Stars Wars mask, used in the Palmer’s Pharmacy robbery from a local Target Store. After locating and interviewing Corrick, agents secured a full confession. Immediately thereafter, the other suspect, Dana Shipley, was identified and arrested carrying a backpack containing a large amount of pills, money from the New Alexandria robbery and both masks used in the New Alexandria robbery. Shipley also had a .32 caliber firearm used in the commission of the crime concealed in his pocket. Corrick has an extensive criminal history and had recently been released from prison after serving time for armed robbery.
Judge Ambrose scheduled sentencing for, October 26, 2017. The law provides for a maximum total sentence of twenty years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, Judge Ambrose ordered that the defendant remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania State Police and the West Deer Township Police Department conducted the investigation leading to the prosecution of Corrick.
Ohio Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Aaron Travis Daniels, 20, aka Harun Muhammad, aka Abu Yusef, of Columbus, Ohio, pleaded guilty to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, in violation of Title 18, U.S. Code, Section 2339B.
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, and agencies participating in the Southern Ohio Joint Terrorism Task Force (JTTF) made the announcement. The plea was entered before Chief U.S. District Judge Edmund A. Sargus Jr.
“Daniels admitted that he attempted to travel abroad to provide material support to ISIS,” said Acting Assistant Attorney General Boente. “Identifying, thwarting and holding accountable individuals who attempt to provide material support to foreign terrorist organizations is a top priority of the Department of Justice.”
“This case demonstrates how terrorist activities abroad can reach into our local communities,” U.S. Attorney Glassman said. “Our office and agencies in the JTTF will continue to cooperate as we work to protect our national security.”
JTTF agents arrested Daniels on Nov. 7, 2106, as he attempted to leave Columbus with the intent to join ISIS in Libya. A federal grand jury indicted him on Nov. 10, 2016. Daniels has been in custody since his arrest.
Daniels faces a maximum sentence of 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The Columbus JTTF is made up of officers and agents from the FBI, U.S. Marshals Service, Columbus Division of Police, Franklin County Sheriff’s Office, Ohio State Highway Patrol, The Ohio State University Police Department, the Ohio Investigative Unit, U.S. Immigrations and Customs Enforcement, the John Glenn International Airport Police Department, Westerville Police Department and Columbus Division of Fire.
This case is being prosecuted by Assistant U.S. Attorneys Jessica W. Knight and Jessica Kim, and Special Assistant U.S. Attorney Joseph Gibson of the Southern District of Ohio, and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.
Ohio Insurance Salesman Sentenced to Prison for Failure to File Income Tax Returns and Failure to Pay TaxesRead the Press Release
An insurance salesman and former resident of Parma, Ohio was sentenced to 37 months in prison today following his conviction in December 2016 for failing to file income tax returns and failing to pay taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney David A. Sierleja for the Northern District of Ohio.
According to documents and information provided to the court, John Christopher Raschella, 57, of Estero, Florida, failed to pay more than $1 million in income taxes, interest and penalties that he owed to the Internal Revenue Service (IRS) for 1995, 1996, and 1998 through 2012. During those years, Raschella sold insurance, and earned additional income working for other insurance salesmen.
Between 1989 and 2012, Raschella failed to timely file income tax returns with the IRS. For several years, Raschella filed delinquent returns, reporting that he owed taxes, but failed to make the required payments. For other years, the IRS assessed Raschella’s taxes and sent him letters notifying him of the amount he owed, but Raschella still did not pay.
Raschella used a series of nominee entities to prevent the IRS from collecting his unpaid taxes. For example, formed two companies, Resource One, Corporation and Legacy Foundation International and deposited his insurance commissions into bank accounts that he opened in their names. He assigned his insurance commissions to Resource One and as a result, the company reported to the IRS that the income had been paid to the company instead of to individually. The insurance company revoked the assignment after learning that had concealed from a county government agency the fact that Resource One was his company. Raschella also caused a phony levy release to be sent to the insurance company that purported to be issued by the IRS. In response, the insurance company substantially reduced the amount of ’s insurance commissions that it paid over to the IRS in response to the levy.
In addition to the term of imprisonment, Raschella was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $573,157.13.
“For more than two decades, John Raschella tried to thwart the IRS’s ability to assess and collect the taxes he owed,” said Acting Deputy Assistant Attorney General Goldberg. “Everyone has a legal obligation to pay their fair share and today’s sentence makes clear that those who willfully violate this duty face significant consequences including prosecution and jail.”
“Failing to file or pay taxes due are abuses of the federal tax system that affect us all,” said Chief Don Fort of IRS Criminal Investigation (CI). “Today’s sentencing reaffirms that if you participate in these types of abusive tax schemes, you may go to jail. The American tax system is designed to provide vital government services to our people. It is not a pick-and-choose yearly decision as to whether you will obey the law and pay your owed taxes. IRS-CI and the Department of Justice will remain vigilant in ferreting out such schemes that cheat both the federal government and honest taxpayers.”
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Sierleja thanked special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Jeffrey A. McLellan of the Tax Division, who prosecuted the case. They also thanked Assistant U.S. Attorney Robert J. Patton of the Northern District of Ohio, who provided substantial assistance in this prosecution.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Nurse Imposter Pleads Guilty to Health Care FraudRead the Press Release
VICTORIA, Texas – A 42-year-old former resident of Goliad has admitted to posing as a nurse, announced acting U.S. Attorney Abe Martinez. Leticia Gallarzo pleaded guilty to five counts of making false statements relating to health care today in federal court.
Gallarzo has no medical training, but obtained employment as a registered nurse at two hospitals and three nursing homes in five different Texas cities over a seven-month period. As each employer discovered the deception, Garza would leave the facility and immediately begin seeking work at a medical facility in another city.
At today’s hearing, Gallarzo admitted she had knowingly lied about being a registered nurse on five occasions in order to secure employment for which she was not qualified.
Senior U.S. District Judge John D. Rainey accepted the plea and set sentencing for Oct. 3, 2017. At that time, Gallarzo faces up to five years in federal prison and a possible $250,000 maximum fine. She will remain in custody pending that hearing.
The FBI and the Texas Attorney General’s Office - Medicaid Fraud Control Unit conducted the investigation with the assistance of police departments in Goliad and Victoria. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
North Olmsted man charged with selling misbranded drugsRead the Press Release
A North Olmsted man was charged in federal court with selling misbranded drugs, Acting U.S. Attorney David A. Sierleja said.
Khaled Farouk Elgayar, 50, received drugs that purported to treat erectile dysfunction and enhance sexual performance in men, including “African Superman,” “Hard Ten Days,” “Herb Viagra,” “libigrow,” “S.W.A.G” and “Triple PowerZEN,” according to the criminal information.
These products contained an undeclared drug ingredient, sildenafil, which is the active ingredient in FDA-approved prescription drugs used to treat erectile dysfunction. The labels of the products Elgayar sold failed to include the name and quantity of the drug ingredient, according to the information.
Undeclared drugs such as sildenafil may have serious potential side effects or may be harmful to consumers with certain pathological conditions. Additionally, undeclared drugs may interact dangerously with other prescription or non-prescription drugs the unwitting consumer might be taking. The labels for the products the defendant provided failed to adequately warn consumers of these contingencies, according to the information.
Elgayar received misbranded drugs and delivered or proffered delivery of those misbranded drugs between January and October 2016, according to the information.
“Disguising prescription drugs as harmless over-the-counter products can lead to serious consequences for unsuspecting buyers with dangerous underlying health conditions. It could also lead to dangerous interactions when combined with other drugs they may be taking,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office. “Our office will continue to pursue and bring to justice those who would endanger the public’s health in order to make a quick profit.”
If convicted, the court will determine defendant’s sentence after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorneys Megan R. Miller and Michael L. Collyer following an investigation by the Food and Drug Administration.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Newtown Man Charged with Receipt and Posession of Child PornographyRead the Press Release
John Hammond, of Norristown, PA, was charged today by Indictment with receipt and possession of child pornography, announced Acting United States Attorney Louis D. Lappen.
The Indictment alleges that from on or about April 11, 2016 through on or about April 18, 2016, Hammond received child pornography over the Internet. The Indictment further alleges that on April 19, 2016, Hammond possessed a computer, disc, and external drives that contained child pornography.
If convicted. Hammond faces a possible sentence of 40 years’ incarceration with a mandatory 5-year term of imprisonment, up to a lifetime of supervised release, a $500,000 dollar fine, restitution, forfeiture, and a $10,000 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Department of Homeland Security and Montgomery County Detectives. It is being prosecuted by Assistant United States Attorney Sean P. McDonnell.
New Year’s Gunshot that Killed Child Fired by Man Illegally in U.S.Read the Press Release
HUNTSVILLE – The man whose celebratory New Year’s 2017 gunfire killed a five-year-old child in Athens, Ala., pleaded guilty today in federal court to illegally possessing the gun because he was in the United States illegally. Acting U.S. Attorney Robert O. Posey, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido and ICE Homeland Security Investigations Acting Assistant Special Agent in Charge James Hernandez announced the plea.
FIDEL RODRIGUEZ-CANCHOLA, 34, of Mexico, pled guilty before U.S. District Court Judge Abdul K. Kallon to one count of possessing a firearm by an illegal alien. His sentencing is scheduled Oct. 12.
According to Rodriguez-Canchola’s plea, he celebrated New Year’s in the early morning hours of Jan. 1 by firing a Harrington & Richardson 900 .22-caliber revolver into the air outside his Athens residence. One of the rounds he fired struck a fire-year-old who died shortly after.
When Limestone County Sheriff’s deputies found Rodriguez-Canchola a few hours later, he admitted to firing the weapon but “insisted that he had not seen the child until she fell,” according to his plea agreement.
Rodriguez-Canchola was a native and citizen of Mexico, unlawfully present in the United States at the time of the shooting, according to his plea.
The maximum penalty for possessing a firearm by a prohibited person is 10 years in prison and a $250,000 fine.
ATF, Immigration and Customs Enforcement HSI and the Limestone County Sheriff’s Office investigated the case, which Assistant U.S. Attorney Melissa K. Atwood is prosecuting.
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New Hampshire Man Sentenced to Prison for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Kevin Gobin, 56, of Lempster, New Hampshire, was sentenced on July 6, 2017, in United States District Court in Rutland, Vermont, to serve 40 months in federal prison after his guilty plea to one count of possession of child pornography. U.S. District Judge Geoffrey W. Crawford also ordered Gobin to serve a 10-year period of supervised release and to pay a $100 special assessment.
According to court records and proceedings, in April 2014, the Federal Bureau of Investigation executed a warrant to search Gobin’s residence for evidence of child pornography. During the search, numerous computers and other digital media were seized. During a forensic examination of his seized media, the FBI found thousands of images and videos of child pornography. The FBI also found evidence that Gobin belonged to a website that catered to people who wished to trade in child pornography, and that Gobin directly traded child pornography with other offenders over the Internet.
Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the FBI in the investigation and prosecution of Gobin. The prosecution of Gobin was handled by Assistant U.S. Attorney Barbara A. Masterson. Gobin was represented by Jason Sawyer.
Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New Derry Woman Admits Guilt in Fraud Scheme Targeting Victoria’s SecretRead the Press Release
PITTSBURGH – A resident of New Derry, Pennsylvania, pleaded guilty in federal court to charges of mail fraud, Acting United States Attorney Soo C. Song announced today.
Charlene D. Moff waived indictment and pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from September 2013 to March 2016, Moff fraudulently ordered merchandise from Victoria’s Secret using her or her husband’s online account. After the items were delivered, she would call customer service and falsely represent one of the following: that she did not receive the shipment of merchandise, the shipment was missing certain items, or some of the merchandise was incorrect or damaged. She would then receive a credit to her account or a re-shipment of merchandise. The amount of loss to Victoria’s Secret exceeded $30,000.
Judge Bissoon scheduled sentencing for October 26, 2017 at 10 a.m. 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 is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Moff.
Navajo Man from Arizona Pleads Guilty to Assaulting Federally Commissioned Tribal Officer in New MexicoRead the Press Release
ALBUQUERQUE – Michael Nakai, 33, an enrolled member of the Navajo Nation who resides in Red Rock, Ariz., pled guilty today in federal court in Albuquerque, N.M., to assaulting a federal officer.
Nakai was charged by criminal complaint in Oct. 2016, with assaulting a tribal police officer of the Navajo Nation Division of Public Safety who was commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. According to the complaint, Nakai assaulted the officer by kicking the officer in the face following a traffic stop. Nakai subsequently was indicted on Nov. 15, 2016, and was charged with assaulting a federal officer on Oct. 9, 2016, in San Juan County, N.M.
During today’s proceedings, Nakai pled guilty to the indictment. In entering the guilty plea, Nakai admitted that on Oct. 9, 2016, he assaulted a federal officer by kicking and striking the officer in the head while the officer was arresting him for driving under the influence of alcohol.
At sentencing, Nakai faces a maximum penalty of 20 years in federal prison. Nakai remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
Mission Female Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, female convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on June 26, 2017, by U.S. District Judge Roberto A. Lange.
Yolanda Prue, age 32, was sentenced to a 12 month split sentence, with 3 months in custody and 6 months of home confinement and treatment, 3 years of supervised release, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Prue was indicted by a federal grand jury on December 14, 2016. She pled guilty on April 11, 2017.
The conviction stemmed from an incident on May 3, 2016, when a Rosebud Sioux Tribe officer initiated a traffic stop of the vehicle, but the vehicle did not come to a stop. It pulled over two different times but began driving again.
Once the vehicle finally stopped, a search of the vehicle was performed and a digital scale and several syringes were found. Prue admitted the scale was hers, and admitted to using the scale for meth. She also admitted she had meth in several baggies on her person. Prue admitted she packaged the baggies as ¼ gram each and was selling them.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Prue was immediately turned over to the custody of the U.S. Marshals Service.
Mexican National Sentenced for Immigration OffenseRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CARLOS AGATON-VASQUEZ, age 25, a native of Mexico, was sentenced today after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.
U.S. District Court Judge Eldon E. Fallon sentenced AGATON-VAZQUEZ to time served (7 months), followed by one year of supervised release, and a $100 special assessment fee. AGATON-VASQUEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on January 3, 2017, AGATON-VASQUEZ was found in the United States after having been previously deported from the United States on April 4, 2013.
Acting U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant U.S. Attorney Jon Maestri was in charge of the prosecution.
Mexican Citizens Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Two Mexican citizens arrested together in Saratoga Springs, New York, were sentenced today for illegally re-entering the United States.
Juan Martinez-Garcia, age 27, of Mexico, was sentenced to time served (38 days in jail). Jorge Reyes-Merino, age 27, of Mexico, was also sentenced to time served (38 days in jail).
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Martinez-Garcia admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed from the United States to Mexico on July 26, 2010. As part of his guilty plea, Reyes-Merino admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed from the United States to Mexico on November 9, 2011.
On May 30, 2017, ICE Officers arrested Martinez-Garcia and Reyes-Merino in Saratoga Springs.
Following their respective sentencings, Martinez-Garcia and Reyes-Merino were each placed into the custody of the Department of Homeland Security, for removal proceedings.
These cases were investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Logan man pleads guilty to possession of stolen mailRead the Press Release
CHARLESTON, W.Va. – A Logan County man pleaded guilty today to possessing stolen mail, announced United States Attorney Carol Casto. Keith Lee Caudill, 25, of Mallory, faces up to five years in federal prison and a $250,000 fine when he is sentenced on October 5, 2017. Caudill has also has agreed to pay restitution as part of his plea agreement.
Caudill was a Highway Contract Route Driver with the United States Postal Service who distributed and collected mail along a rural postal route between Logan and Holden. Caudill admitted that on November 7, 2016, he was found in possession of 31 pieces of stolen mail that he had illegally opened and otherwise removed from the mail. The opened mail was recovered from a cooler in the front of his vehicle. Caudill admitted to agents of the United States Postal Inspection Service that he had stolen approximately 100 pieces of mail from along his route. He typically stole greeting cards, believing the cards were more likely to contain cash or gift cards. Caudill would keep the cash, attempt to redeem the gift cards, and destroy the greeting cards.
The United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge Thomas E. Johnston is presided over the case.
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Las Vegas Man Sentenced to 12 Years in Prison for Murdering Drug Supplier During 2013 Drug DealRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 144 months in prison in connection to a man’s death during a drug deal at a North Las Vegas apartment in November 2013, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
John Thomas, 25, pleaded guilty on March 1, 2016, to one count of conspiracy to possess a controlled substance with intent to distribute and one count of use of a firearm during and in relation to a drug trafficking crime resulting in death. United States District Judge James C. Mahan also sentenced him to five years of supervised release.
According to admissions in his plea agreement, on Nov. 30, 2013, Thomas and co-defendant Louis Matthews arrived at a North Las Vegas apartment to purchase 20 pounds of marijuana from the victim, Luciano Madrigal-Herrera. Also present at the apartment were Julio Nunez and Angel Juarez. Madrigal-Herrera showed some of the marijuana to Matthews for inspection, and then went back outside to retrieve the rest. Matthews also left the apartment, stating he was going to get his friend, Thomas, as well as money to purchase the marijuana. The three men returned to the apartment, and then Thomas and Matthews each produced handguns in an attempt to rob Madrigal-Herrera of the marijuana. They repeatedly shot him causing his death. Thomas and Matthews took the marijuana and attempted to flee with it.
Three co-defendants were also charged in the scheme. Louis Matthews, 35, was sentenced on March 20, 2017, to life in prison for drug and firearm crimes that resulted in the death. Julio Nunez, 28, of Las Vegas, pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute and one count of discharging a firearm during and in relation to a drug trafficking crime and was sentenced to 42 months in prison and five years of supervised release. Angel Juarez, 29, of North Las Vegas, pleaded guilty to misprision of a felony and was sentenced to time served with one year of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department. The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra M. Michael.
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Kansas Man Sentenced to 50 Years in Prison for Production of Child PornographyRead the Press Release
Ryan James Day, 32, of Ellis, Kansas, and formerly of Clarksville, Tenn., was sentenced on Monday, by United States District Court Judge Aleta Trauger, to 50 years in prison for production of child pornography, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
The investigation began in June 2015 when Day communicated with an undercover law enforcement officer who was posing online as someone interested in child pornography. During their online conversation, Day told the undercover detective that he was sexually active with a minor and sent pornographic photos of the victim to the detective. Day also told the detective that he wanted to have sex with a minor whom he believed to be the detective’s young child and that he was attempting to persuade yet another minor female to have sex with him.
The FBI and local authorities determined the location of the device from which the images were being sent and responded to Day’s home in Kansas within hours of his transmission of child pornography. An examination of Day’s phone and personal computer revealed hundreds of pornographic images of children, including the images of the victim that were sent to the detective.
Day was indicted on four counts of production of child pornography in December 2015 and pleaded guilty to all counts on February 22, 2017. According to the charging document and other court filings, Day began sexually abusing the victim in 2009, when he lived in Clarksville and the victim was approximately 5 years old. Over a period of several years, Day sexually abused the victim on numerous occasions and photographed the abuse. After moving to Kansas, Day distributed the images online in an effort to obtain images of other minors being sexually abused.
This case was investigated by the Federal Bureau of Investigation, the District of Columbia Metropolitan Police Department and the Ellis County, Kansas Sheriff’s Office and is being prosecuted by Assistant U.S. Attorneys Henry C. Leventis and Rascoe Dean.
KC Man Sentenced for Threatening Federal JudgesRead 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 for mailing death threats to three federal judges.
Bruce DeWayne Jensen, 40, of Kansas City, was sentenced by U.S. District Judge Brian C. Wimes to seven years in federal prison without parole.
On March 20, 2017, Jensen pleaded guilty to three counts of mailing threatening communications. Jensen admitted that on Nov. 19, 2014, and again on Aug. 17, 2016, he mailed threats to three U.S. District Court judges in the Western District of Missouri. Jensen, who mailed the letters while he was incarcerated in the federal prison in Terre Haute, Ind., has several prior convictions for similar criminal conduct. Jensen threatened in his letters to kill the judges and their families.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the FBI.
Justice Department Resolves Allegations of Housing Discrimination Involving North Attleboro Apartment ComplexRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with J & R Associates, the owner and operator of the Royal Park Apartments, a 224-unit multi-family housing complex in North Attleboro, Massachusetts. The settlement resolves allegations that J & R Associates discriminated against tenants of South Asian descent in violation of the Fair Housing Act, which prohibits housing discrimination on the basis of race and national origin.
Based on its investigation, the Department determined that J & R Associates discriminated against persons of South Asian descent in the renting of units at Royal Park Apartments by steering them to certain buildings in the eight-building complex over a period of at least five years, from at least 2009 through 2014. J & R Associates cooperated fully with the Department’s investigation, which revealed that the discriminatory conduct had ceased by about 2015. Under the terms of the agreement, J & R Associates will establish a settlement fund in the amount of $70,000 to compensate victims of the discriminatory practices. J & R Associates also has agreed to train any new employees and to abide by the Fair Housing Act going forward.
In a related matter resolved in 2015, J & R Associates agreed to make changes to its rental practices to resolve allegations that it had been steering families with children to certain buildings and units in violation of the Fair Housing Act. In compliance with the court-approved settlement in that case, United States v. J & R Associates, Civil Action No. 15-11748 (D. Mass.), which remains in effect today, J & R Associates has reformed its practices and trained its employees in order to provide housing opportunities to prospective tenants equally and without regard to their race or national origin, or to whether they have children.
“Housing discrimination on the basis of race and national origin is not acceptable and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler, of the Justice Department’s Civil Rights Division. “We appreciate J & R Associates’ cooperation with our investigation and agreement to remedy past discriminatory practices.”
“Ensuring fair housing decreases inequality and increases educational and economic opportunities,” said William D. Weinreb, Acting United States Attorney for the District of Massachusetts. “This office will continue to enforce civil rights and fight discrimination in Massachusetts.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Justice Department Reaches Settlement with Michigan Credit Union for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Justice Department announced today that COPOCO Community Credit Union, based in Bay City, Michigan, has agreed to a settlement to resolve allegations that it illegally repossessed four servicemembers’ vehicles. The department’s lawsuit, filed July 26, 2016, alleged that COPOCO violated the Servicemembers Civil Relief Act (SCRA) by repossessing cars owned by protected servicemembers without first obtaining the required court orders. Under the agreement, COPOCO must change its policies and compensate four servicemembers whose cars COPOCO unlawfully repossessed.
The department launched an investigation after it received a complaint in October 2015 from Alyssa Carriveau, the wife of U.S. Army Private First Class Christian Carriveau, alleging that COPOCO had repossessed their car, along with their two-year-old daughter’s car seat, out of their driveway in Lacey, Washington, near Joint Base Lewis-McChord. Alyssa Carriveau initially believed that the car had been stolen, but she subsequently learned that it had been repossessed. Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle. The department’s subsequent investigation corroborated the Carriveaus’ complaint and revealed that COPOCO had no policies related to compliance with the SCRA. After filing the lawsuit, the United States learned of three additional repossessions COPOCO conducted that violated the SCRA.
“This sends a message to financial institutions, large and small, that they must live up to their obligations to our servicemembers,” said Acting Assistant Attorney General Thomas Wheeler. “They cannot use ignorance of the law as an excuse and must instead actively ensure that they comply with the law. The Justice Department is committed to vigorously protecting the rights of the men and women who bravely serve our country.”
“The U.S. Attorney’s Office in the Eastern District of Michigan is committed to safeguarding the financial and legal rights of our servicemembers and their families,” said Acting United States Attorney Daniel L. Lemisch. “Of the many sacrifices made by our military members while they are in service to our country, losing their cars to repossession should never be one of them.”
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It 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, COPOCO prevented servicemembers from obtaining a court’s review of whether their repossessions should be delayed or adjusted to account for their military service.
The agreement requires COPOCO to provide $10,000 in compensation to each of the affected servicemembers, plus any lost equity in the vehicle with interest. The Carriveaus, who had their car returned to them the day after the repossession at the department’s request, will receive $7,500. COPOCO also must repair the credit of all affected servicemembers, pay a $5,000 civil penalty to the United States and determine, in the future, whether any vehicle it is planning to repossess is owned by an active duty servicemember. If so, COPOCO will not repossess the vehicle without first obtaining a court order or valid waiver of SCRA rights. The agreement also contains provisions ensuring that all eligible servicemembers will receive the benefit of the SCRA’s six percent interest rate cap on their auto loans.
The department’s enforcement of the SCRA and other fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the division has provided over $450 million in monetary relief to over 117,000 servicemembers through its enforcement of the SCRA. The SCRA provides protections for active duty servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. 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.
Jury Finds Milwaukee Woman Guilty of False Tax ReturnsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 30, 2017, a jury found Trulunda Stenson (age: 35) of Milwaukee, Wisconsin, guilty following a trial before United States District Judge Pamela Pepper in federal court in Milwaukee, Wisconsin. The jury convicted Stenson on each of the following 34 counts charged in the indictment: (1) ten counts of filing false tax refund claims, in violation of Title 18, United States Code, Section 287; (2) eleven counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and (3) eleven counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
As proven at trial, beginning in January 2011, Stenson pursued a scheme to file false income tax returns that claimed refund payments from the Internal Revenue Service (IRS). Stenson and others gathered individuals’ social security numbers and other personal information. Stenson then prepared federal income tax returns that fraudulently claimed wages and federal tax-withholding amounts from several employers, even though in many cases, those employers had not actually paid wages or withheld taxes for the individuals. Stenson submitted the returns electronically to the IRS, signing the returns for individuals, many of whom she had never met. Stenson filed over 80 fraudulent tax returns seeking more than $300,000 in tax refund payments. In addition, the jury also found Stenson guilty of filing fraudulent 2011 and 2012 income tax returns in her own name.
As a result of these convictions, Stenson faces a mandatory minimum penalty of two years in prison, with the maximum potential penalty of twenty years in prison, a maximum fine of $250,000, and three years of supervised release. A sentencing date has not been set.
This case resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant United States Attorneys Matthew Jacobs and Matthew Krueger.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Jefferson County man convicted of firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Charles Town, West Virginia man was convicted today of a firearms charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Terry Edwards, age 37, pled guilty to one count of “Unlawful Possession of a Firearm.” Edwards, having previously convicted of a felony in U.S. District Court for the Northern District of West Virginia, admitted to possessing two pistols and a rifle in March 2017 in Jefferson County.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charles Town Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Inmate at USP Lee Sentenced for Assaulting Corrections OfficerRead the Press Release
Abingdon, VIRGINIA – A federal inmate at United States Penitentiary at Lee County faces additional federal prison time after being sentenced this afternoon for resisting and assaulting a corrections officer, Acting United States Attorney Rick A. Mountcastle announced.
Darren Wall, 24, was sentenced this afternoon to imprisonment for a term of 60 months. He also was ordered to pay 24,714.32 in restitution. Wall previously pled guilty to one count of forcibly assaulting and resisting an officer and employee of the United States while that officer was engaged in the performance of official duties and during the commission of such offense did inflict bodily injury.
On May 9, 2016, Wall, while an inmate at USP Lee, resisted and assaulted a corrections officer while the officer performed his official duties. That assault caused bodily injury to the officer. Wall was also found in possession of a shank, an improvised knifelike weapon at the time of the incident.
The investigation of the case was conducted by the Bristol, Virginia, office of the Federal Bureau of Investigation. Assistant United States Attorney AUSA Randy Ramseyer is prosecuting the case for the United States.
Indictment: California Man Had More Than 60 Pounds of FentanylRead the Press Release
TOPEKA, KAN. – A California man appeared in federal court today on charges he possessed more than 60 pounds of the powerful synthetic opioid fentanyl, U.S. Attorney Tom Beall said.
Carlos Fernando Fernandez-Gonzalez, 28, Yucaipa, Calif., is charged with one count of possession with intent to distribute fentanyl. The crime is alleged to have occurred May 25, 2017, when the Kansas Highway Patrol stopped him in Russell County, Kan.
If convicted he faces a penalty of not less than 10 years in federal prison and fine up to $10 million. The Drug Enforcement Administration and Kansas Highway Patrol investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Find more information about fentanyl on the DEA’s website at https://www.dea.gov/druginfo/fentanyl.shtml .
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indicted Baltimore City Police Officers Charged with Additional RobberiesRead the Press Release
July 6, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury returned a superseding indictment charging three previously indicted Baltimore City Police Officers with additional robberies. The superseding indictment charges the defendants with racketeering conspiracy, racketeering, robbery, extortion, and possession of a firearm in furtherance of a crime of violence. The superseding indictment was unsealed today and charges the following defendants:
Sergeant Wayne Earl Jenkins, age 37, of Middle River, Maryland;
Detective Daniel Thomas Hersl, age 48, of Joppa, Maryland; and
Detective Marcus Roosevelt Taylor, age 30, of Glen Burnie, Maryland.
A federal grand jury also returned a separate indictment charging two additional defendants, who are not police officers but were posing as police officers, with robbing two Baltimore City residents and with brandishing a firearm during a crime of violence. The indictment alleges that the two named defendants committed the robbery with a Baltimore City police officer. The second indictment was unsealed today and charges the following defendants:
Thomas Robert Finnegan, age 38, of Easton, Pennsylvania; and
David Kendall Rahim, age 41, of Baltimore, Maryland.
Defendants Jenkins, Hersl, and Taylor had previously been ordered detained pending trial. Defendants Finnegan and Rahim will have their initial appearances in court today.
The superseding indictment and indictment were 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.
SUPERSEDING INDICTMENT
The 6-count superseding indictment alleges that Jenkins, Hersl and Taylor engaged in 13 robberies, extortion and time and attendance fraud. According to the superseding indictment, beginning in 2011, the defendants stole money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits.
For example, as charged in the superseding indictment, in spring 2015, Jenkins stole at least 20 pounds of high-quality marijuana and at least $20,000 from two individuals who were conducting a drug sale at Belvedere Towers in Baltimore City. Jenkins falsely told the buyer and seller that he was a Drug Enforcement Agency (DEA) agent, to conceal his identity, and that he was seizing the money and drugs and would make a decision about whether to charge them later. Jenkins then drove Taylor and a co-defendant to a wooded area off Northern Parkway and gave them $5,000 each from the stolen money. After the incident, Jenkins went to a strip club in Baltimore County where he robbed a stripper.
Similarly, as charged in the superseding indictment, in summer 2016 Hersl stole money from the car of an arrestee. Hersl drove one of his co-defendants to the parking lot of a local high school, which was near the incident, and gave him a portion of the stolen money. While Hersl and the co-defendant were splitting the stolen money, Jenkins broke into the arrestee’s storage unit and stole 2 kilograms of cocaine.
The superseding indictment alleges that in June 2016 Jenkins believed that a co-defendant owed him money, so Jenkins gave the co-defendant drugs and a firearm that had been seized in a law enforcement operation, and told him to sell them. The co-defendant, along with another co-defendant, sold the firearm to a drug dealer.
The superseding indictment also alleges that the defendants committed systemic time and attendance fraud, including claiming overtime when they were at home and on vacation.
According to the superseding indictment, between spring 2011 and October 2016, the defendants allegedly conducted 13 separate robberies, taking over $280,000 in US currency, more than 2 kilograms of cocaine, other narcotics, a 9mm handgun, a $4,000 wristwatch, and other property.
The superseding indictment alleges that the defendants obstructed law enforcement by alerting each other about potential investigations of their criminal conduct, and turning off their body cameras to avoid recording encounters with civilians.
ROBBERY INDICTMENT
Thomas Robert Finnegan and David Kendall Rahim were indicted on charges of conspiracy, robbery, and possession of a firearm during a crime of violence.
On June 27, 2014, police officers with the BPD’s Gun Trace Task Force, executed a search warrant on a store in the Brooklyn neighborhood of Baltimore City. During the search, one of the police officers asked whether there was any large amounts of money in the store. The storeowner indicated that she had $20,000 in cash in her pocketbook that she was intending to use to pay off a tax liability. At this point, members of GTTF did not make arrests, nor seize anything from the property. Later that day, a member of the GTTF informed Finnegan and Rahim about the money and they agreed to set up a robbery at the home of the store owner. Using a law enforcement database, the GTTF detective located the home address of the victims. The defendants surveilled the house, agreed to impersonate the police when conducting the home invasion, and were given tactical gear by the Detective. The GTTF detective remained outside in the vehicle so that he could intercept any police officers who responded to the home invasion by telling them he was a BPD officer. Finnegan and Rahim entered the residence and robbed the victims at gunpoint of the $20,000.
REARRAIGNMENTS
The following four Baltimore City Police, who were previously indicted, have rearraignments scheduled for the following dates:
Detective Momodu Bondeva Kenton Gondo, age 34, of Owings Mills, Maryland - October 12, 2017;
Detective Evodio Calles Hendrix, age 32, of Randallstown, Maryland - July 21, 2017;
Detective Jemell Lamar Rayam, age 36, of Owings Mills, Maryland - November 9, 2017; and
Detective Maurice Kilpatrick Ward, age 36, of Middle River, Maryland - July 24, 2017.
Defendant Gondo’s rearraignment has been scheduled in the RICO case and a separate drug trafficking conspiracy with non-BPD defendants.
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 Leo J. Wise and Derek E. Hines, who are prosecuting these Organized Crime Drug Enforcement Task Force cases.
Illegal Guatemalan Pleads Guilty to Possession of a FirearmRead the Press Release
Acting U.S. Attorney Duane A. Evans, announced that JULIO SANTIAGO JUAN-MATEO, age 28, a citizen of Guatemala, pled guilty to a one-count Indictment for possession of a firearm by an illegal alien.
According to the court documents, on April 1, 2017, JUAN-MATEO was stopped by U.S. Fish and Wildlife Services agents while in possession of a Hi-Point Model C9 firearm, 9 mm, bearing serial number P1903457 in Bayou Sauvage National Wildlife Refuge in Chalmette. U.S. Fish and Wildlife Services agents contacted the Department of Homeland Security as they suspected JUAN-MATEO was an illegal alien in possession of a firearm.
JUAN-MATEO faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Eldon Fallon set sentencing for October 5, 2017.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security and U.S. Fish and Wildlife Service in investigating this matter.
Hospice to pay $2.4 Million to resolve False Claims Act AllegationsRead the Press Release
ATLANTA – Compassionate Care Hospice Group, Inc., (“CCH Group”) has agreed to pay $2.4 million to resolve allegations that CCH Group and its subsidiary Compassionate Care Hospice of Atlanta, LLC, (“CCH Atlanta”) submitted or caused the submission of false claims to Medicare and Medicaid by engaging in improper financial relationships with contracted physicians. CCH Group is a Florida corporation with its principal place of business in Parsippany, New Jersey, and subsidiaries and affiliates in numerous states.
“Kickbacks should never play a role in medical decision-making,” said U.S. Attorney John Horn. “When healthcare providers are paid for referrals, the costs of health services inevitably rise and ultimately are borne by taxpayers.”
“The False Claims Act settlement in this case should be a deterrent to those who would so selfishly circumvent our federal healthcare programs to their benefit,” said FBI Special Agent in Charge David J. LeValley. “Rest assured the FBI is committed to diligently investigating those who would defraud our federally funded healthcare programs, depriving those who truly depend on them.”
“It is paramount to our health care system that those seeking health care advice know that providers and treatments recommended to them are not influenced by illegal remuneration or arrangements,” said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services, Office of Inspector General. “The OIG is committed to working with our law enforcement partners to combat this sort of activity.”
“Our office’s Medicaid Fraud Control Unit will continue to work with our federal partners to go after any action that compromises the integrity of our health care systems,” said Georgia Attorney General Chris Carr. “This type of scheme obscures the proper relationship among those providing health care services to Medicaid members, and it diminishes the quality of health care options available to our citizens. We won’t stand for it.”
The government alleges that, between April 3, 2007 and April 29, 2011, CCH Group and CCH Atlanta paid illegal remuneration to five physicians in order to induce the providers to refer patients to CCH Atlanta for hospice services and certify individuals as eligible for hospice services. The government also alleges that CCH Atlanta and CCH Group submitted or caused the submission of claims to Medicare and Medicaid for services provided to the individuals who had been referred by the physicians because of the kickbacks. The illegal remuneration took the form of (1) payments to a medical director in exchange for referrals and (2) sham contracts with associate medical directors in exchange for referrals.
The settlement resolves allegations filed by Cathy Morris and Josie King, former CCH Atlanta employees, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States & State of Georgia ex rel. Morris & King v. Compassionate Care Hospice Group of Atlanta, LLC, et al., No. 1:10-cv-3450 (N.D. Ga.). Ms. Morris and Ms. King will receive a share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Georgia State Attorney General’s Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant U.S. Attorneys Lena Amanti and Neeli Ben-David and Georgia State Assistant Attorney General Sara Vann.
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.
Hospice Company to Pay $2 Million to Resolve Alleged False Claims Related to Unnecessary Hospice CareRead the Press Release
NEWARK, N.J. – A hospice company in Bensalem, Pennsylvania, has agreed to pay to the United States $2 million to resolve allegations that it provided unnecessary hospice services, Acting U.S. Attorney William E. Fitzpatrick announced today.
Compassionate Care of Gwynedd Inc. is a hospice provider based in Bensalem and a subsidiary of Compassionate Care Hospice Group Inc., a Florida corporation with its principal place of business in Parsippany, New Jersey. The settlement announced today follows an investigation by the U.S. Attorney’s Office for the District of New Jersey and the Commercial Litigation Branch of the Justice Department’s Civil Division. The allegations arose from a whistle-blower suit filed under the False Claims Act.
The United States alleges that from Jan. 1, 2005, through Nov. 15, 2011, Compassionate Care of Gwynedd admitted patients who did not need hospice care and billed Medicare for these medically unnecessary services. The government alleges that the company admitted these patients by using a diagnosis of “debility” that was not medically justified.
The relators, or whistler-blowers, in the underlying qui tam will receive more than $350,000 as their statutory share of the recovery under the False Claims Act. The civil lawsuit was filed in the District of New Jersey and is captioned United States, et al., ex rel. Jane Doe and Mary Roe v. Compassionate Care Hospice, et al.
Acting U.S. Attorney Fitzpatrick credited special agents from the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Charles Graybow of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office for the District of New Jersey and Trial Attorney Justin Draycott of the Department of Justice’s Civil Division. The Office of Inspector General and the Office of the General Counsel for the Centers for Medicare and Medicaid Services of the Department of Health and Human Services also participated in the investigation and settlement.
The U.S. Attorney’s Office for the District of New Jersey reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.36 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
The claims settled by this agreement are allegations only; there have been no admissions of liability.
Counsel for relators: Britton D. Monts Esq., Austin, Texas; Timothy J. McInnis Esq., New York
Counsel for defendant: Sean C. Cenawood Esq., New York
Honduran National Sentenced for Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CRISTIAN CESRE-PAZ, age 32, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a) & (b)(1).
U.S. District Judge Eldon E. Fallon sentenced CESRE-PAZ to time served, followed by a term of supervised release term of one year, and a special assessment of $100. CESRE-PAZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, CESRE-PAZ reentered the United States after previous deportation on December 27, 2006.
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 was in charge of the prosecution.
Haverhill Man Sentenced for Drug and Firearm OffensesRead the Press Release
BOSTON – A Haverhill man, with prior criminal convictions in New York, was sentenced today in federal court in Boston for drug and firearm offenses.
Gamal Jones, 37, was sentenced by U.S. District Court Judge Leo T. Sorokin to 90 months in prison and three years of supervised release. On April 7, 2017, Jones pleaded guilty to one count of being a felon in possession of a firearm and ammunition and three counts of possession with intent to distribute cocaine.
Jones was arrested on Jan. 14, 2016, following an investigation into cocaine distribution in Haverhill. Jones was found in possession of over 80 grams of crack cocaine, a Taurus .45 caliber handgun and a box of .45 caliber ammunition. Jones was previously convicted in federal court in Brooklyn, N.Y., for being a felon in possession of a firearm and has prior convictions for criminal possession of a controlled substance, criminal possession of a loaded firearm, and assault in the third degree.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement today. Assistant U.S. Attorneys Nicholas Soivilien and John T. McNeil of Weinreb’s Criminal Division prosecuted the case.
Grand Jury Indicts Westerville Man for Threatening CongressmanRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged E. Stanley Hoff, 68, of Westerville with one count of threatening to assault and murder a United States official, a crime punishable by up to ten years in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and the United States Capitol Police announced the indictment returned today.
The indictment alleges that Hoff threatened to assault and murder U.S Representative Steve Stivers and a member of Stivers’ family.
Hoff was charged by a criminal complaint on June 21, 2017 and arrested. An affidavit filed in support of the complaint alleges that Hoff left a threatening voice mail on Rep. Stivers’ Hilliard office phone. Hoff is being held without bond.
U.S. Attorney Glassman commended the investigation of this case by the U.S. Capitol Police and Assistant United States Attorneys Kevin Kelley and Brian Martinez, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Government Intervenes in Lawsuit Against Florida Compounding Pharmacy for Excessive Charges to TRICARERead the Press Release
Tampa– Acting U.S. Attorney W. Stephen Muldrow announces that the government has intervened in a lawsuit against a Florida compounding pharmacy owner, Renier Gobea (41, Tampa), and his company, RS Compounding LLC, located at 12617 Race Track Road (Tampa, FL), alleging that Gobea and RS Compounding billed TRICARE excessive prices for compounded prescriptions.
The lawsuit alleges that between January 1, 2012, and January 31, 2014, Gobea and RS Compounding charged TRICARE at least 2,000 percent more for drugs than it charged cash-paying customers, in violation of the False Claims Act. TRICARE, the health care program for uniformed service members and their families, prohibits pharmacies from charging TRICARE more than the general public. Unfortunately, Gobea and RS Compounding charged TRICARE vastly more than they charged cash-paying customers, in some cases over 10,000 percent more.
Gobea and RS Compounding’s actions are part of a larger trend of fraud against TRICARE involving compounded prescriptions. TRICARE’s costs for compounded drugs rose from $5 million in 2004 to $514 million in 2014 and $1.75 billion in fiscal year 2015. To date, the U.S. Attorney’s Office for the Middle District of Florida has diligently pursued fraud associated with compounding pharmacies, resulting in over $57 million in settlements.
This lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they discover evidence that defendants have submitted false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The case is captioned United States ex rel. McKenzie Stepe v. RS Compounding LLC, Renier Gobea, Case No. 8:13-cv-3150-T-33AEP (M.D. Fla.). The claims asserted by the government are allegations only, and there has been no determination of liability.
The government’s complaint in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by TRICARE, the U.S. Department of Health and Human Services-Office of Inspector General, and the U.S. Attorney’s Office for the Middle District of Florida. It is being handled by Assistant U.S. Attorneys Shea M. Gibbons and Christopher Tuite.
Georgia Man Pleads Guilty to Cyber Crime That Cost Sedgwick County $566,000+Read the Press Release
WICHITA, KAN. - A Georgia man pleaded guilty Thursday to federal charges he was part of an e-mail spoofing scheme that cost Sedgwick County more than $566,000, U.S. Attorney Tom Beall said.
George S. James, 49, Brookhaven, Ga., pleaded guilty to one count of wire fraud.
In his plea, James admitted that on Oct. 7, 2016, Sedgwick County sent approximately $566,088 to his bank account at a Wells Fargo bank in Georgia. James transferred part of the money he received from Sedgwick County to a bank account in Shanghai, China, and part of the money to an account at Deutsche Bank in Bremen, Germany. James also spent some of the money.
In his plea, James denied that the fraud scheme was his idea. He said that on Sept. 23, 2016, he was contacted by a person identified in court records as A.H., who asked to deposit some money into James’ account at Wells Fargo. James said he knew A.H. was engaged in fraud, but James denied knowing that Sedgwick County was the victim.
In his plea, James said it was A.H. – or someone working with A.H. – who sent an email to Sedgwick County on Sept. 23, 2016, purporting to be from Cornejo and Sons, LLC, and requesting the county send future payments to a new account number at Wells Fargo. On Oct. 7, 2016, the county sent $566,088 to James’ account at Wells Fargo. The county learned later that Cornejo did not request the change of account and did not receive the payment.
Sentencing is set for Sept. 21. He faces a penalty of up to 20 years in federal prison and a fine up to $250,000.
Beall commended the FBI, the Sedgwick County Sheriff’s Office, the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.
Franklin, N.C. Man Sentenced to Five Years for Setting Forest FiresRead the Press Release
ASHEVILLE, N.C. – Keith Eugene Mann, 50, of Franklin, N.C. was sentenced today by U.S. District Judge Martin Reidinger to five years in prison for destroying real property of the United States by means of fire, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Mann was also ordered to serve three years under court supervision.
“Mann set forest fires which damaged natural resources and potentially put many lives at risk, because he ‘wanted to see something burn.’ Thanks to the swift and thorough investigative efforts of our law enforcement partners, Mann was quickly apprehended and he will be punished for his selfish and irresponsible actions,” said U.S. Attorney Rose.
According to today’s sentencing hearing and court documents filed in the case, on October 27, 2016, a wildfire was reported on U.S. Forest Service (USFS) Road 388, commonly referred to as Board Tree Road, which is in Macon Co., and within the Nantahala National Forest. Court documents indicate that the fire had been set intentionally. According to court documents, five other fires had been set in close proximity to the fire on Board Tree Road but appeared to have gone out on their own. Over the course of the investigation of these small fires, law enforcement located several wooden stem matches which helped to establish that the fires were intentionally set.
According to court documents, on November 22, 2016, a wildfire was reported at the end of U.S. Forest Service Road 763, commonly referred to as Jones Creek Road, by an individual who identified himself as “Keith Mann.” USFS firefighters responded to the fire and took immediate suppression action. The following day, on November 23, 2016, law enforcement returned to the fire site, where they observed a small cardboard box located at the origin of the fire, with numerous burned wooden stemmed matches next to the box. Following up on the Macon County 911 call, investigators spoke with Keith Mann who admitted to setting the fires both on Board Tree Road and on Jones Creek Road.
Mann pleaded guilty to the federal arson charge in March 2017. Mann is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
In making today’s announcement, U.S. Attorney Rose thanked the U.S. Forest Service and the Macon County Sheriff’s Office for their investigation of this case.
Assistant United States Attorney Richard Edwards, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Former Teller at Maryland Check Cashing Business Indicted for Conspiring to Defraud the United States and Stealing Government FundsRead the Press Release
A grand jury in the District of Maryland returned an indictment, unsealed today, charging a former teller at a check cashing business in Maryland with theft of public money and conspiring to defraud the United States, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Stephen M. Schenning for the District of Maryland.
According to the indictment, from approximately 2011 through 2013, Krystal Proctor conspired with others to negotiate refund checks that were fraudulently obtained by co-conspirators who filed tax returns with the Internal Revenue Service (IRS) using stolen IDs. Proctor is alleged to have used her position as a teller at a check-cashing business to negotiate and facilitate the negotiation of the refund checks. The indictment charges that Proctor entered false information into the check cashing business’s database, including processing the checks under the names of existing customers rather than the names of the individuals listed on the checks. The indictment further alleges that Proctor recruited another teller to join the scheme, and orchestrated the negotiation of additional fraudulent tax refund checks through that teller. According to the indictment, between 2011 and 2013, Proctor and the teller she recruited, negotiated more than 100 tax refund checks totaling more than $500,000.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty.
If convicted, Proctor faces a statutory maximum sentence of five years in prison for the conspiracy count and 10 years in prison for each count of theft of public money. She also faces a period of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Schenning commended special agents of the Treasury Department’s Office of the Inspector General and IRS Criminal Investigation, who conducted the investigation, and Assistant U.S. Attorney Michael Packard and Trial Attorneys Kimberly Ang, William Guappone and Tom Koelbl of the Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Former Teller at Maryland Check Cashing Business Indicted for Conspiring to Defraud the United States and Stealing Government FundsRead the Press Release
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Greenbelt, Maryland –A grand jury in the District of Maryland returned an indictment, unsealed today, charging a former teller at a check cashing business in Maryland with theft of public money and conspiring to defraud the United States. The indictment was announced by Acting U.S. Attorney for the District of Maryland Stephen M. Schenning and Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division.
According to the indictment, from approximately 2011 through 2013, Krystal Proctor conspired with others to negotiate refund checks that were fraudulently obtained by co-conspirators who filed tax returns with the Internal Revenue Service (IRS) using stolen IDs. Proctor is alleged to have used her position as a teller at a check-cashing business to negotiate and facilitate the negotiation of the refund checks. The indictment charges that Proctor entered false information into the check cashing business’s database, including processing the checks under the names of existing customers rather than the names of the individuals listed on the checks. The indictment further alleges that Proctor recruited another teller to join the scheme, and orchestrated the negotiation of additional fraudulent tax refund checks through that teller. According to the indictment, between 2011 and 2013, Proctor and the teller she recruited, negotiated more than 100 tax refund checks totaling more than $500,000.
An indictment is merely an accusation, and a defendant is presumed innocent unless proven guilty.
If convicted, Proctor faces a statutory maximum sentence of five years in prison for the conspiracy count and 10 years in prison for each count of theft of public money. She also faces a period of supervised release, restitution and monetary penalties.
Acting U.S. Attorney Schenning and Acting Deputy Assistant Attorney General Goldberg commended special agents of the Treasury Department’s Office of the Inspector General and IRS Criminal Investigation, who conducted the investigation. Schenning also thanked Assistant U.S. Attorney Michael Packard and Trial Attorneys Kimberly Ang, William Guappone and Tom Koelbl of the Tax Division, who are prosecuting the case.
Former Social Security Administration Employee Sentenced to 5 Years in Prison for Authorizing More Than $1.9 Million in Fraudulent BenefitsRead the Press Release
CHICAGO — A former benefits authorizer at the Social Security Administration in Chicago was sentenced today to five years in federal prison for authorizing more than $1.9 million in fraudulent benefits.
JAYSON CRUZ, 41, who worked at the SSA’s Great Lakes Program Service Center in Chicago, authorized the fraudulent payments from 2009 to 2013 to more than 150 recipients. In exchange, the recipients kicked back approximately half of the fraudulent payments to Cruz or to others whom Cruz had recruited into the scheme. As a result of his fraud scheme, Cruz caused the SSA to pay approximately $1,908,290 in fraudulent benefits.
Cruz used the proceeds of the fraud to, among other things, purchase his home in the South Chicago neighborhood of Chicago, shop at Gucci, Bloomingdale’s and Saks Fifth Avenue, and travel to the National Basketball Association’s All-Star Game and the Black Entertainment Television awards show.
Cruz pleaded guilty last year to one count of wire fraud. U.S. District Judge Virginia M. Kendall imposed the 60-month sentence in federal court in Chicago.
The sentence was announced by Joel R. Levin, Acting United States Attorney for the Northern District of Illinois, and Tracey Thanos, Special Agent-in-Charge of the Chicago Social Security Administration’s Office of Inspector General.
“Defendant abused a position of public trust,” Special Assistant U.S. Attorney Daniel W. Glad argued in the government’s sentencing memorandum. “The 165 million people who pay into the system expect that their hard-earned tax dollars are appropriately allocated.”
“This investigation was one of the most egregious employee cases we have ever investigated,” said Special Agent-in-Charge Thanos. “This type of dishonesty and deceit from government employees cannot be tolerated. I would like to thank the U.S. Attorney’s Office for their efforts in prosecuting this case.”
According to the charges, Cruz and his co-schemers recruited recipients of Old-Age, Survivors, and Disability Insurance Benefits to receive additional payments on top of what they were legitimately owed. Cruz authorized the fraudulent payments by entering false codes into the SSA’s electronic system. Cruz made sure that each of the fraudulent payments was for slightly less than $6,000 in order to avoid triggering the need for his supervisor’s approval.
Including Cruz, all five defendants charged in the federal investigation have been convicted.
Former Parma insurance salesman sentenced to more than three years in prison for tax fraudRead the Press Release
A former Parma insurance salesman was sentenced to more than three years in prison for failing to file income tax returns and failing to pay taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney David A. Sierleja for the Northern District of Ohio.
According to documents and information provided to the court, John Christopher Raschella, 57, now of Estero, Florida, failed to pay more than $1 million in income taxes, interest and penalties that he owed to the Internal Revenue Service (IRS) for 1995, 1996, and 1998 through 2012. During those years, Raschella sold insurance, and earned additional income working for other insurance salesmen.
Between 1989 and 2012, Raschella failed to timely file income tax returns with the IRS. For several years, Raschella filed delinquent returns, reporting that he owed taxes, but failed to make the required payments. For other years, the IRS assessed Raschella’s taxes and sent him letters notifying him of the amount he owed, but Raschella still did not pay.
Raschella used a series of nominee entities to prevent the IRS from collecting his unpaid taxes. For example, Raschella formed two companies, Resource One, Corporation and Legacy Foundation International and deposited his insurance commissions into bank accounts that he opened in their names. He assigned his insurance commissions to Resource One and as a result, the company reported to the IRS that the income had been paid to the company instead of to Raschella individually. The insurance company revoked the assignment after learning that Raschella had concealed from a county government agency the fact that Resource One was his company. Raschella also caused a phony levy release to be sent to the insurance company that purported to be issued by the IRS. In response, the insurance company substantially reduced the amount of Raschella’s insurance commissions that it paid over to the IRS in response to the levy.
In addition to the term of imprisonment, Raschella was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $573,157.13.
“For more than two decades, John Raschella tried to thwart the IRS’s ability to assess and collect the taxes he owed,” said Acting Deputy Assistant Attorney General Goldberg. “Everyone has a legal obligation to pay their fair share and today’s sentence makes clear that those who willfully violate this duty face significant consequences including prosecution and jail.”
“Failing to file or pay taxes due are abuses of the federal tax system that affect us all,” said Chief Don Fort of IRS Criminal Investigation (CI). “Today’s sentencing reaffirms that if you participate in these types of abusive tax schemes, you may go to jail. The American tax system is designed to provide vital government services to our people. It is not a pick-and-choose yearly decision as to whether you will obey the law and pay your owed taxes. IRS-CI and the Department of Justice will remain vigilant in ferreting out such schemes that cheat both the federal government and honest taxpayers.”
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Sierleja thanked special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Jeffrey A. McLellan of the Tax Division, who prosecuted the case. They also thanked Assistant U.S. Attorney Robert J. Patton of the Northern District of Ohio, who provided substantial assistance in this prosecution.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Former Employee of Realty Company Sentenced for $250K FraudRead the Press Release
NORFOLK, Va. – A former accounting manager at a Hampton Roads realty company was sentenced today to 37 months in prison for embezzling over $255,000 from her employer.
Lindsay Kneff, 37, of Virginia Beach, pleaded guilty on January 17 to wire fraud and engaging in a monetary transaction in criminally derived property. According to a statement of facts filed with the court, Kneff was employed in a managerial position for the Virginia Beach office of Rose & Womble Realty Company, where she was responsible for overseeing the processing of commissions and accounts payable. Over an 18-month period from January 2014 to August 2015, Kneff wrote checks on the Rose & Womble operating account to pay her personal expenses, including electricity and utility bills. Kneff also made unauthorized wire transfers of company funds into her own bank accounts, and she fraudulently altered approximately 284 Rose & Womble money orders by writing in her own name as the payee.
Kneff attempted to conceal her fraud by creating fictitious vendors in the company’s accounting software to make it appear that the vendors had received wire transfers of company funds. Kneff’s conduct resulted in a loss to the company of $255,147.20, and she was ordered by the court to pay restitution in that amount.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and George D. Purefoy, Resident Agent in Charge of the U.S. Secret Service’s Norfolk Resident Office, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorney Alan M. Salsbury prosecuted the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:16-cr-139.
Former Correctional Officer Sentenced to Federal Prison for Attempting to Traffick DrugsRead the Press Release
SAVANNAH, GA – Akeiran Lawson, a former federal correctional officer from Lumber City, Georgia, was sentenced earlier this week to 46 months in prison by Senior U. S. District Judge William T. Moore, Jr., for attempting to traffick cocaine for a federal prisoner. After serving his prison sentence, Lawson will be on federal supervised release for 3 years. There is no parole in the federal system.
Evidence presented at the guilty plea and sentencing hearings revealed that Lawson, while working at the McRae Federal Correctional Facility in McRae, Georgia, approached an inmate and offered to transport cocaine for an unknown drug organization in exchange for money. The inmate contacted other law enforcement officials to let them know of Lawson’s offer. In a sting operation, undercover agents communicated with Lawson, who agreed to transport a kilogram of cocaine from Savannah to Atlanta for $2,000. On November 3, 2016, shortly after Lawson received from undercover agents fake cocaine and half of his anticipated payment, Lawson was arrested without incident.
Acting United States Attorney James D. Durham said, “This officer was willing to sell his badge for personal payoffs from supposed drug dealers. Not only did he betray the institution he was sworn to protect, he also betrayed the ideals that honest, hard-working correctional officers uphold every day.”
"We appreciate the collaborative efforts of the U. S. Attorney’s Office, the Chatham-Savannah Counter Narcotics Team, and the New York City DEA Task Force in this investigation, which helped bring this correctional officer’s corrupt conduct to light and ensured that he would be held accountable,” stated Special Agent in Charge Robert A. Bourbon of the Department of Justice (DOJ) Office of Inspector General’s Miami Field Office.
The case was investigated by special agents of the DOJ Office of the Inspector General, with assistance from the Chatham-Savannah Counter Narcotics Team and the New York City Drug Enforcement Agency Task Force. Assistant U. S. Attorney Marcela C. Mateo prosecuted the case on behalf of the United States. For questions, please call the United States Attorney’s Office at (912) 201-2522.
Former California Man Sentenced to 360 Months in Prison for Conspiracy to Distribute MethamphetamineRead the Press Release
DES MOINES, IA - On July 6, 2017, Jonathan Leroy Homedewheather Jean Reekr, age 43, was sentenced by Chief United States District Court Judge John A. Jarvey to 360 months in prison for conspiring to distribute methamphetamine, announced United States Attorney Kevin E. VanderSchel. Homedew will be required to serve a ten-year term of supervised release following his imprisonment.
On February 22, 2017, a jury found Homedew guilty of the drug trafficking charge following a trial before Chief Judge Jarvey.
On September 8, 2016, law enforcement arrested Homedew after he arrived at the Des Moines International Airport. Police seized several U.S. Postal Service shipping receipts from Homedew that indicated eight parcels had been shipped from Southern California and were to arrive in the Des Moines area on September 9. The eight parcels were located at Des Moines area postal facilities and searched pursuant to warrants; the parcels contained over 10 kilograms of ice methamphetamine.
At trial, testimony and supporting evidence showed that Homedew had been traveling between Iowa and California repeatedly during the summer of 2016 to buy multi-pound quantities of methamphetamine in California that Homedew then shipped to the Des Moines area. Homedew coordinated the further distribution of the methamphetamine to customers in Iowa.
Homedew’s three co-defendants each pleaded guilty to methamphetamine trafficking charges: Michael Patrick Carr was sentenced to 190 months in prison, Sonya Rae Tucker received 90 months in prison, and Amber Marie Shipp is awaiting sentencing.
The United States Postal Inspection Service, Des Moines Police Department – Narcotics Control Section, and the United States Drug Enforcement Administration conducted the investigation. This case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
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Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected].
Former Audi Manager Charged in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
A former Audi manager has been charged via criminal complaint for his role in the long-running conspiracy to defraud U.S. regulators and customers by implementing software specifically designed to cheat U.S. emissions tests in thousands of Audi “clean diesel” vehicles.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Jean E. Williams of the Department of Justice’s Environment and Natural Resources Division, and Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan made the announcement.
Giovanni Pamio, 60, an Italian citizen, is charged with conspiracy to defraud the U.S., wire fraud, and violation of the Clean Air Act. Pamio was formerly head of Thermodynamics within Audi’s Diesel Engine Development Department in Neckarsulm, Germany. According to the complaint, from in or about 2006 until in or about November 2015, Pamio led a team of engineers responsible for designing emissions control systems to meet emissions standards, including for nitrogen oxides (“NOx”), for diesel vehicles in the U.S.
According to the complaint, after Pamio and coconspirators realized that it was impossible to calibrate a diesel engine that would meet NOx emissions standards within the design constraints imposed by other departments at the company, Pamio directed Audi employees to design and implement software functions to cheat the standard U.S. emissions tests. Pamio and coconspirators deliberately failed to disclose the software functions, and they knowingly misrepresented that the vehicles complied with U.S. NOx emissions standards, the complaint alleges.
Audi’s parent company, Volkswagen AG (VW), previously pleaded guilty to three felony counts connected to cheating U.S. emissions standards. The company was ordered to pay a $2.8 billion criminal fine at its sentencing on April 21, 2017.
A complaint is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and EPA-CID investigated the case. This case is being prosecuted by Securities and Financial Fraud Chief Benjamin D. Singer and Trial Attorneys David Fuhr and Christopher Fenton of the Criminal Division’s Fraud Section, Senior Trial Attorney Jennifer Blackwell and Trial Attorney Joel La Bissonniere of the Environment and Natural Resources Division’s Environmental Crime Section, and White Collar Crime Unit Chief John K. Neal and Assistant United States Attorney Timothy J. Wyse of the U.S. Attorney’s Office for the Eastern District of Michigan. The Criminal Division’s Office of International Affairs also assisted in the case.
Former Audi Manager Charged in Connection with Conspiracy to Cheat U.S. Emissions TestsRead the Press Release
A former Audi manager has been charged via criminal complaint for his role in the long-running conspiracy to defraud U.S. regulators and customers by implementing software specifically designed to cheat U.S. emissions tests in thousands of Audi “clean diesel” vehicles.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Deputy Assistant Attorney General Jean E. Williams of the Department of Justice’s Environment and Natural Resources Division, and Acting U.S. Attorney Daniel L. Lemisch of the Eastern District of Michigan made the announcement.
Giovanni Pamio, 60, an Italian citizen, is charged with conspiracy to defraud the U.S., wire fraud, and violation of the Clean Air Act. Pamio was formerly head of Thermodynamics within Audi’s Diesel Engine Development Department in Neckarsulm, Germany. According to the complaint, from in or about 2006 until in or about November 2015, Pamio led a team of engineers responsible for designing emissions control systems to meet emissions standards, including for nitrogen oxides (“NOx”), for diesel vehicles in the U.S.
According to the complaint, after Pamio and coconspirators realized that it was impossible to calibrate a diesel engine that would meet NOx emissions standards within the design constraints imposed by other departments at the company, Pamio directed Audi employees to design and implement software functions to cheat the standard U.S. emissions tests. Pamio and coconspirators deliberately failed to disclose the software functions, and they knowingly misrepresented that the vehicles complied with U.S. NOx emissions standards, the complaint alleges.
Audi’s parent company, Volkswagen AG (VW), previously pleaded guilty to three felony counts connected to cheating U.S. emissions standards. The company was ordered to pay a $2.8 billion criminal fine at its sentencing on April 21, 2017.
A complaint is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and EPA-CID investigated the case. This case is being prosecuted by Securities and Financial Fraud Chief Benjamin D. Singer and Trial Attorneys David Fuhr and Christopher Fenton of the Criminal Division’s Fraud Section, Senior Trial Attorney Jennifer Blackwell and Trial Attorney Joel La Bissonniere of the Environment and Natural Resources Division’s Environmental Crime Section, and White Collar Crime Unit Chief John K. Neal and Assistant United States Attorney Timothy J. Wyse of the U.S. Attorney’s Office for the Eastern District of Michigan. The Criminal Division’s Office of International Affairs also assisted in the case.
Five “Gangster Disciples” Violent Gang Members Sentenced to A Total of 1,334 Months in Federal PrisonRead the Press Release
Memphis, TN – The "Gangster Disciples" Chief of Security involved in the violent shooting that occurred at Hillview Apartments was sentenced to 263 months in federal prison. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
As Chief of Security, Edwin Carvin aka "Ren," was responsible for ensuring the security of fellow gang members and providing protection from law enforcement or rival gangs. The Gangster Disciples are a violent criminal gang which began in the Chicago, Illinois area. In the 1970’s, the leaders of two different Chicago-based gangs, the Black Disciples and the Supreme Gangsters, aligned their respective groups and created the Gangster Disciples.
Once united, the Gangster Disciples began recruiting heavily in Chicago, within Illinois jails and prisons, and throughout the United States. By the mid-1980’s, the group had spread throughout the Midwestern and Eastern United States. The Gangster Disciples are active in approximately 35 states including Tennessee.
According to information presented at sentencing, on June 21, 2014, Florence Anthony, a member of the Gangster Disciples, got into an altercation with a group of individuals at the Hillview Apartments located in Memphis, Tennessee. Anthony reported the confrontation to her Gangster Disciples chain-of-command. Based on Anthony’s report, the Gangster Disciples chain-of-command issued orders to retaliate against those responsible for the attack on Anthony and her children.
At approximately 10:30 p.m., Carvin and four other members of the Gangster Disciples returned to the Hillview Apartments to retaliate against what were identified as rival gang members. Each individual was armed with firearms and proceeded on foot through the
apartments shooting four juveniles and one adult male. All five victims survived, but some sustained serious bodily injuries.
The defendants and their respective sentences:
- Florence Anthony, aka "Nikki," 135 months;
- Edwin Carvin, aka "Ren," 263 months;
- Robert Mallory, aka "Rambo," 292 months;
- Brandon Milton, aka "Lil Folk," 262 months;
- Erik Reese, aka "E," 382 months
The case was investigated by the Federal Bureau of Investigation, the Multi-Agency Gang Unit, Police Departments for Memphis, Bartlett and Germantown; Sheriff’s Offices for Tipton, Desoto and Shelby; and the Tennessee Bureau of Investigation Crime Lab.
Assistant U.S. Attorneys Jerry Kitchen, Michelle Kimbril-Parks, and Special Assistant U.S. Attorney Sam Stringfellow prosecuted this case on the government’s behalf.
Federal Jury Finds Pennsylvania Man Guilty of Attempting to Exploit Nine-Year-Old BoyRead the Press Release
BOSTON - A Pennsylvania man was convicted today following a seven-day jury trial in federal court in Boston of attempting to engage in sexual activity with a nine-year-old boy he met via online PlayStation games.
Robert Rang, 28, of Coaldale, Penn., was found guilty of one count of attempted coercion and enticement of a minor. U.S. District Court Judge Indira Talwani scheduled sentencing for Sept. 28, 2017. Rang was arrested and charged by criminal complaint on Dec. 29, 2014.
On Oct. 29, 2014, a Massachusetts woman contacted her local police department to report that her nine-year-old grandchild, with whom she lived, had been in contact with an adult male via Sony PlayStation and text message. The woman discovered the illicit contact when she observed sexually explicit messages from Rang on her grandchild’s iPod.
Further investigation revealed that Rang had been communicating with the child for months via PlayStation, telephone, and Facebook. During that time, Rang sent the child gift cards to make PlayStation-related purchases. Over the course of several months, Rang asked the child to masturbate with him and send him naked pictures; the child refused Rang’s requests.
When law enforcement executed a federal search warrant at Rang’s Coaldale home on Dec. 29, 2014, they found several images of child pornography on Rang’s cell phone, as well as evidence of his sexually explicit communications with other minors, and confirmation that Rang had made plans to visit the child in Massachusetts. Rang has a prior conviction for corruption of minors in Schuylkill County, Penn.
The charge provides for a minimum of 10 years to life in prison, supervised release for a minimum of five years to life, and a fine of up to $250,000. 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; Shelly Binkowski, Inspector in Charge of U.S. Postal Inspection Service, Boston Division; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Plymouth County Sherriff Joseph D. McDonald Jr., and Plymouth Police Chief Michael E. Botieri made the announcement today. Assistant U.S. Attorneys David G. Tobin and Anne Paruti of Weinreb’s Major Crimes Unit prosecuted the case.
Federal Judge Sentences Guatemalan National to Two Years in Prison for Illegal Reentry After Deportation and Harboring Illegal AliensRead the Press Release
ASHEVILLE, N.C. – U.S. District Judge Martin Reidinger sentenced today Omar Abisai Ramirez-Ramos, 34, of Guatemala, to two years in prison and three years of supervised release on illegal reentry after deportation and harboring illegal aliens charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Ramirez-Ramos pleaded guilty to the offenses in December 2016.
U.S. Attorney Rose is joined by Nick Annan, Special Agent in Charge of ICE/Homeland Security Investigations (HSI) in Georgia and the Carolinas and Sheriff Donald J. Hill of the Polk County Sheriff’s Office.
According to today’s sentencing hearing and court documents filed in the case, on October 9, 2016, a Polk County deputy conducted a traffic stop of the vehicle Ramirez-Ramos was driving. Over the course of the traffic stop, law enforcement determined that Ramirez-Ramos was an illegal alien who had been previously deported three times from the United States. Law enforcement also determined that eight passengers of the vehicle were also illegal aliens. Court records indicate that Ramirez-Ramos told law enforcement that he was being paid $1,000 to transport the eight individuals from Phoenix, Arizona to Charlotte, N.C., and that he did not know their countries of origin.
Ramirez-Ramos is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole. The defendant will also be subject to deportation proceedings upon the completion of his federal sentence.
In making today’s announcement, U.S. Attorney Rose thanked ICE-HSI and the Polk County Sheriff’s Office for their investigation of this case.
Assistant United States Attorney John Pritchard, of the U.S. Attorney’s Office in Asheville, prosecuted the case.
Eleventh and Final Defendant Sentenced in Large Drug ConspiracyRead the Press Release
BOISE — John Matthew Caviness, Jr., 35, of Caldwell, Idaho, was sentenced today to 48 months in federal prison for his role in helping to distribute methamphetamine and other drugs throughout the Treasure Valley, Acting U.S. Attorney Rafael Gonzalez announced. Caviness and ten others were indicted on December 8, 2015, by a federal grand jury in Boise. On February 23, 2017, Caviness pleaded guilty to conspiring with others to distribute controlled substances. Caviness’ sentencing brings the case to a close as the other ten defendants were already sentenced.
The case began in January 2015 when Elizabeth Gaytan sold methamphetamine to undercover police officers on numerous occasions. Investigators later learned that Stacy Duane Wilfong was Gaytan’s source of supply and the leader of a larger group of individuals who distributed drugs throughout the Treasure Valley. Investigators applied for and received a court order that authorized the interception of Wilfong’s telephone communications. During the course of approximately twenty days, Wilfong made hundreds of calls to his co-conspirators related to the distribution of methamphetamine, heroin, pills including oxycodone and hydromorphone, and a synthetic controlled substance Alpha-pyrrolidinopentiophenone, known as "a-PVP."
The other ten defendants who already pleaded guilty and were sentenced by Senior U.S. District Judge Edward J. Lodge at the federal courthouse in Boise are:
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Stacy Duane Wilfong, 40, of Nampa, leader of the conspiracy, sentenced on October 4, 2016, to 220 months in prison;
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Elizabeth Ann Gaytan, 37, Nampa, sentenced on July 28, 2016, to 100 months in prison;
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Jason Lee Burgess, 44, of Garden City, sentenced on February 22, 2017, to 84 months in prison;
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Adam William Dillon, 28, Nampa, sentenced on March 8, 2017, to 74 months in prison;
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Anthony “Tony” Kitchen, from Nampa, sentenced on October 5, 2016, to 71 months in prison;
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David Anthony Wales, 31, Boise, sentenced on June 14, 2017, to 60 months in prison;
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Isela F. Garza, 36, Nampa, sentenced on November 10, 2016, to 48 months in prison;
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Regina Wade, 50, Boise, sentenced on August 9, 2016, to 41 months in prison;
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Jocelin Jessica Gonzalez, 19, Nampa, sentenced on July 28, 2016, to 40 months in prison; and
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Breeannyn Nicole Pederson, 25, Parma, sentenced on November 15, 2016, to 18 months in prison.
This case was the result of a joint investigation by the Treasure Valley Metro Violent Crime Task Force and the Organized Crime and Drug Enforcement Task Force (OCDETF). The Treasure Valley Metro Violent Crime Task Force is comprised of federal, state and local agencies, including the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives; Boise Police Department; Ada County Sheriff’s Office; Caldwell Police Department; Nampa Police Department; Meridian Police Department; Canyon County Sheriff’s Office; and Idaho Department of Probation and Parole. The Organized Crime and Drug Enforcement Task Force (OCDETF), includes the cooperative law enforcement efforts of the Federal Bureau of Investigation; Drug Enforcement Administration; Bureau of Alcohol, Tobacco, Firearms and Explosives; U. S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Internal Revenue Service-Criminal Investigation; and U.S. Marshals Service. The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations.
The case was prosecuted by the Special Assistant U.S. Attorney hired by the Treasure Valley Partnership and the State of Idaho to address gang crimes. The Treasure Valley Partnership is comprised of a group of elected officials in southwest Idaho dedicated to regional coordination, cooperation, and collaboration on creating coherent regional growth. For more information, visit treasurevalleypartners.org.
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Easton Man Involved in Steroid Distribution Ring is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that RAYMOND J. MARTIN, 50, of Easton, was sentenced yesterday by U.S. Magistrate Judge Holly B. Fitzsimmons in Bridgeport to three years of probation and ordered to pay a fine of $10,000 for his role in a steroid distribution ring.
According to court documents and statements made in court, a long-term investigation led by the Federal Bureau of Investigation, Drug Enforcement Administration and Homeland Security Investigations revealed that Steven Santucci, a former Newtown Police sergeant, and others were receiving shipments of steroid ingredients from China and manufacturing and distributing wholesale quantities of steroids. Certain members of the conspiracy also distributed prescription pills, including oxycodone, as well as cocaine.
During the investigation, MARTIN was intercepted on a court-authorized wiretap ordering anabolic steroids and offering to sell oxycodone pills. At the time, MARTIN served as police commissioner for the Town of Easton.
MARTIN was arrested on July 14, 2015. On March 30, 2017, he pleaded guilty to one count of unlawful possession of a controlled substance.
Santucci pleaded guilty and, on August 25, 2016, was sentenced to 16 months of imprisonment, six months of home confinement, 120 hours of community service and a $5,000 fine.
This matter was investigated by the Federal Bureau of Investigation, Drug Enforcement Administration, Homeland Security Investigations, with the assistance of the U.S. Marshals Service, U.S. Postal Inspection Service and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
This case is being prosecuted by Assistant U.S. Attorneys Rahul Kale and Robert M. Spector.
Doctors Hospital Agrees to Settle Claim Alleging Failure to Provide Effective Communication Services to Deaf IndividualsRead the Press Release
McALLEN, Texas – Doctors Hospital at Renaissance Ltd. (DHR) has agreed to a settlement under the Americans with Disabilities Act (ADA) to ensure it provides appropriate auxiliary aids and services to individuals who are deaf or hard of hearing when providing medical services, announced Acting U.S. Attorney Abe Martinez.
The investigation began following a lawsuit a local deaf couple had filed, alleging DHR violated the ADA by failing to provide sign language interpretive services to ensure effective communication regarding their daughter’s treatment for cancer. The deaf parents alleged that starting in 2011, they were unable to effectively communicate with DHR’s doctors and medical personnel at various times during their daughter’s treatment. The lawsuit further alleged the mother was forced to use a family member to translate what the doctors and medical personnel at DHR were saying.
“This settlement exemplifies our commitment to protect the rights of the hearing impaired and to ensure that they are able to communicate with health care professionals, especially when patients have critical and complex interactions with medical providers,” said Martinez.
The settlement agreement requires DHR to provide appropriate auxiliary aids and services, including qualified interpreters. DHR must also appoint an ADA administrator, provide training to the hospital’s staff on the requirements of the ADA and to adopt specific policies and procedures to ensure patients and companions who are deaf or hard of hearing promptly receive auxiliary aids and services. The settlement agreement also provides for continued monitoring by the Southern District of Texas to ensure DHR is meeting its obligations under the ADA.
Assistant U.S. Attorney Paxton Warner handled the matter on behalf of the Southern District of Texas.
This case is a part of the Department of Justice’s Barrier-Free Health Care Initiative, which seeks to enforce the ADA’s prohibition of discrimination against individuals with disabilities by health care providers. Through the Barrier-Free Health Care Initiative, U.S. Attorneys’ offices across the nation and the Department of Justice - Civil Rights Division target their enforcement efforts on a critical area for individuals with disabilities—access to medical services and facilities. The Barrier-Free Health Care Initiative is a multi-phase initiative that includes effective communication for people who are deaf or have hearing loss, physical access to medical care for people with mobility disabilities and equal access to treatment for people who have HIV/AIDS.
The Department of Justice has a number of publications available to assist entities to comply with the ADA, including a Business Brief on Communicating with People Who Are Deaf or Hard of Hearing in Hospital Settings. Visit the ADA for more information and to access these publications. ADA Complaints may be filed Department of Justice or within the Southern District of Texas.
Department of Justice Reviewing Letters from Ten Potential Sanctuary JurisdictionsRead the Press Release
Today, the Department of Justice provided an update on the ten jurisdictions identified in a May 2016 report by the Department’s Inspector General as having policies that potentially violate 8 U.S.C. 1373. Each of the ten jurisdictions were required to submit their legal analysis of how they are in compliance with 8 U.S.C. 1373 by June 30, 2017.
The Justice Department received alleged compliance information from each of the ten jurisdictions by the deadline, is in the process of reviewing them, and looks forward to making a determination as to whether those jurisdictions are in compliance with federal law. Some of these jurisdictions have boldly asserted they will not comply with requests from federal immigration authorities, and this would potentially violate 8 U.S.C. 1373.
“It is not enough to assert compliance, the jurisdictions must actually be in compliance,” Attorney General Sessions said. "Sanctuary cities put the lives and well-being of their residents at risk by shielding criminal illegal aliens from federal immigration authorities. These policies give sanctuary to criminals, not to law-abiding Americans. The Trump Administration is determined to keep every American neighborhood safe and that is why we have asked these cities to comply with federal law, specifically 8 U.S.C. 1373. The Department of Justice has now received letters from ten jurisdictions across the United States claiming that they are in compliance with what federal law requires of them, and we will examine these claims carefully. Residents have a right to expect basic compliance with federal law from their local and state governments."
Defunct Philly Hospice’s Owners/Operators to Pay Millions to Settle Civil False Claims SuitRead the Press Release
PHILADELPHIA – Acting United States Attorney Louis D. Lappen announced today that Matthew Kolodesh, Alex Pugman, Svetlana Ganetsky, and Malvina Yakobashvili have agreed to pay millions of dollars to settle False Claims Act allegations that they and their now-defunct company, Home Care Hospice, Inc. (HCH), falsely claimed and received taxpayer dollars for hospice services that were either unnecessary or never provided. Previously, a federal jury found Kolodesh guilty on, and Pugman and Ganetsky pleaded guilty to, related criminal charges.
Kolodesh was HCH’s de facto co-owner; Pugman was HCH’s Executive Director and co-owner; Ganetsky was HCH’s Development Executive; and Yakobashvili was HCH’s CEO and President. Kolodesh and Yakobashvili are husband and wife, as are Pugman and Ganetsky.
The civil settlements with Kolodesh, Pugman, and Ganetsky specifically resolve False Claims Act allegations that HCH and they, between January 2003 and September 2008: knowingly submitted false claims and records (including fabricated records) to Medicare for purported hospice care for patients who were not terminally ill and thus not eligible for the Medicare hospice benefit; and/or knowingly submitted or caused the submission of false claims and records (including fabricated records) to Medicare for crisis care services that were not necessary or not actually provided; and, as a result of this conduct, violated the False Claims Act and cost the Medicare Program millions of dollars. The settlements with these defendants, as well as Yakobashvili, also resolve federal common law allegations that all five defendants were unjustly enriched as a result of such conduct.
As part of the settlements, the United States will retain the full value of multiple financial accounts that were restrained in a related civil injunction action filed by the United States in the Eastern District of Pennsylvania. The estimated current value of those interests is approximately $8.8 million. The defendants have further agreed: (1) to make cash payments to the government ($400,000 from Pugman and Ganetsky, and $425,000 from Kolodesh and Yakobashvili); and (2) to transfer to the United States various assets, including Pugman’s and Kolodesh’s interests in condominium properties that they co-own.
Under qui tam (whistleblower) provisions of the federal False Claims Act, certain private citizens may bring civil actions on behalf of the United States and may share in any recovery. This suit was originally filed on behalf of the United States by Maureen Fox and Cathy Gonzales, former HCH employees who discovered the alleged fraud. The settlements announced today include False Claims Act whistleblower awards for Ms. Gonzales and for the Estate of Ms. Fox, who passed away after filing suit.
As the result of the United States’ related criminal investigation, 22 persons employed by or associated with HCH were criminally convicted in the Eastern District of Pennsylvania.
“The Medicare hospice benefit is intended to provide patients nearing the end of life with pain management and other palliative care to make them as comfortable as possible,” Lappen said. “Too often, however, we hear reports of companies that abuse this critical service by enrolling patients who do not qualify for the hospice benefit, do not provide claimed services, or who push patients into services they don’t need in order to get higher government reimbursements. The Department of Justice, including this office, will take swift action to protect the public welfare and taxpayer dollars and to make sure that Medicare benefits are available to those truly in need.”
"Medicare, a crucial component of our nation's health care system, draws from a finite pool of funds," said Michael Harpster, Special Agent in Charge of the FBI's Philadelphia Division. "The defendants siphoned money earmarked for dying patients' hospice care, and built their bank accounts on taxpayers' backs. The FBI will continue to investigate and hold accountable those defrauding the U.S. government."
"Today's settlement returns over $8 million to our nation's Medicare program. This money was wrongfully paid as a result of fraudulent billings and part of a massive criminal conspiracy that preyed on a program that comforts beneficiaries at the end of their lives," said Nick DiGiulio, Special Agent in Charge of the Inspector General's Office of the United Stated Department of Health and Human Services in Philadelphia. "In addition to this civil settlement, this investigation resulted in the criminal prosecution of 22 individuals for health care fraud or other charges. We will continue to work with our law enforcement partners and the dedicated federal prosecutors in the Eastern District of Pennsylvania to use every available tool to jail those who steal from federal health care programs and recoup cash and assets illegally acquired."
The case was investigated by the Office of Inspector General of the U.S. Department of Health and Human Services (HHS), and the Organized Crime Section of the Federal Bureau of Investigation. The civil case was handled at the U.S. Attorney’s Office by Assistant United States Attorneys Eric D. Gill, Gerald B. Sullivan, and Colin C. Cherico. Assistance was provided by the HHS Office of Counsel to the Inspector General and the Commercial Litigation Branch of the U.S. Department of Justice’s Civil Division.
The civil claims asserted against HCH, Kolodesh, Pugman, Ganetsky, and Yakobashvili are allegations only, and there has been no determination of civil liability. The civil qui tam suit is docketed in the Eastern District of Pennsylvania as U.S.A. et al. ex rel. Fox and Gonzales v. Home Care Hospice, Inc, et al., No. 06-cv-4679.
The Eastern District of Pennsylvania is one of 10 federal districts that formed an Elder Justice Task Force as a part of the U.S. Department of Justice’s Elder Justice Initiative. (The office announced its task force here in March 2016, and maintains a publicly accessible website here.) The task force seeks to enhance government protection of vulnerable, elderly Pennsylvanians from harm and to ensure the integrity of government health care spending.