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Tuesday 30 May 2017
Two men plead guilty to federal methamphetamine chargesRead the Press Release
HUNTINGTON, W.Va. – Two defendants caught receiving a shipment of crystal methamphetamine in Huntington pleaded guilty today to federal drug charges, announced United States Attorney Carol Casto. Sean Bradsher, 34, of Hurricane, pleaded guilty to aiding and abetting the attempted possession with intent to distribute 50 grams or more of methamphetamine. As a result of the same investigation, Christian Duran, 34, of San Jose, pleaded guilty to attempted possession with intent to distribute 50 grams or more of methamphetamine.
On January 13, 2017, members of the Drug Enforcement Administration Task Force conducted a controlled delivery of approximately 25 pounds of marijuana and 150 grams of crystal methamphetamine to Bradsher and Duran at a residence on 4th Avenue in Huntington. The drugs were intercepted by agents the previous day after they were sent from California to Huntington. After Bradsher and Duran took possession of the drugs, agents executed a search warrant at the residence. Agents recovered the marijuana and methamphetamine along with a total of $13,842 in United States currency during the search. Duran admitted that he intended to distribute the methamphetamine, and Bradsher admitted that he allowed Duran to use the residence to receive the methamphetamine from California.
Bradsher and Duran both face at least 5 and up to 40 years in federal prison when they are sentenced on August 28, 2017.
The Drug Enforcement Administration Task Force, along with the Putnam County Sheriff’s Department and the West Virginia State Police, conducted the investigation, with assistance from the West Virginia National Guard RAID Unit. Assistant United States Attorney Joseph F. Adams is handling these prosecutions. The plea hearings were held before Chief United States District Judge Robert C. Chambers.
These prosecutions are part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Two defendants headed to federal prison for heroin crimesRead the Press Release
HUNTINGTON, W.Va. – Two men who previously pleaded guilty to heroin crimes were sentenced to federal prison today, announced United States Attorney Carol Casto. Earnest Moore, 41, of Columbus, was sentenced to 13 years and four months in federal prison after previously pleading guilty to conspiracy to distribute heroin. In a separate prosecution, Robert Douglas Black, 52, of Huntington, was sentenced to five years and 10 months in federal prison after previously pleading guilty to distributing heroin.
From early 2013 until his arrest on July 23, 2014, Moore conspired with others to distribute heroin in the Point Pleasant area of Mason County. During the conspiracy, associates of Moore would frequently transport heroin from Detroit and Columbus to a residence in Gallipolis, where they would store and prepare the drugs for distribution. Members of the conspiracy would then distribute the heroin to customers in Gallipolis and to customers who traveled from Point Pleasant. Moore and others also frequently traveled to Point Pleasant where they used various residences to distribute the drugs.
In a separate prosecution, Black admitted that on May 4, 2016, he sold heroin to a confidential informant working with law enforcement. The drug deal took place at Black’s residence on 5th Avenue West in Huntington. On May 25, 2016, law enforcement executed a search warrant at Black’s residence and seized over $2,000 in cash, a set of digital scales, and additional heroin that Black admitted he intended to distribute.
The Drug Enforcement Administration Task Force and the Putnam County Sheriff’s Department, with assistance from the Gallia-Meigs County, Ohio, Major Crimes Task Force, conducted the investigation of Moore. The investigation of Black was conducted by the Cabell County Sheriff’s Department. Assistant United States Attorney Joseph F. Adams handled these prosecutions. Chief United States District Judge Robert C. Chambers imposed the sentences.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Two Men Plead Guilty to Selling Cocaine, Firearms, and SilencerRead the Press Release
NORFOLK, Va. – Juan Rivera-Gutierrez, 35, and Pedro Pabon, Jr., 42, both of Virginia Beach, pleaded guilty today to their respective roles in a three-year conspiracy to distribute cocaine.
According to court documents, Rivera-Gutierrez and Pabon conspired to sell wholesale quantities of cocaine from September 2013 to April 2017. During the course of the conspiracy, both men offered to sell kilogram levels of cocaine ranging from $34,000 to $42,000. Special Agents from the DEA conducted nine controlled purchases and recovered over 500 grams of cocaine. During one controlled purchase, Pabon suggested that a confidential informant add a cutting agent to cocaine known as “Aroma,” a product commonly used a carpet cleaner, to increase profits. On another controlled purchase, Rivera-Gutierrez sold $2,000 worth of cocaine and five firearms with multiple 100-round clips and a silencer. The silencer was a Department of Defense asset and the firearms included a Russian shotgun, an Israeli rifle, a stolen AR-15 rifle, and a Colt M-4 rifle.
Rivera-Guitterez pleaded guilty to conspiracy to distribute cocaine, possession of firearms during and relation to a drug trafficking crime, and possession of an unregistered firearm (the silencer). Rivera-Gutierrez faces a mandatory minimum sentence of 10 years in prison and a maximum penalty of life in prison. Pabon pleaded guilty to conspiracy to distribute cocaine, and faces a mandatory minimum sentence of 5 years in prison and a maximum penalty of 40 years in prison. Both men are scheduled for sentencing on September 21.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division; and Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after the pleas were accepted by U.S. Magistrate Judge Lawrence R. Leonard. Special Assistant U.S. Attorney John F. Butler and Assistant U.S. Attorney Andrew C. Bosse are prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-cr-60.
Two Bluefield pain pill dealers appear in federal court on drug chargesRead the Press Release
CHARLESTON, W.Va. – Two Bluefield drug dealers appeared in federal court today for hydromorphone crimes, announced United States Attorney Carol Casto. Everett Ray Gillespie, 66, previously pleaded guilty to distribution of hydromorphone and was sentenced to six months in federal prison followed by three years of federal supervised release, with the first six months of supervised release to be served on home confinement. In a separate prosecution, Timothy Jordan, 48, entered his guilty plea to distribution of hydromorphone.
Gillespie admitted that on April 15, 2016, he sold hydromorphone to a confidential informant in Bluefield. He also admitted that he distributed hydromorphone on another occasion, and that law enforcement seized 35 hydromorphone pills, more than $500 cash, and a handgun when they executed a search warrant at his residence.
In a separate drug prosecution, Jordan admitted that on December 2, 2015, he distributed hydromorphone in Bluefield to an individual cooperating with law enforcement authorities. Jordan faces up to 20 years in federal prison when he is sentenced on September 5, 2017.
The Southern Regional Drug and Violent Crime Task Force conducted the investigations. Assistant United States Attorney John File is in charge of these prosecutions. The hearings were held before Senior United States District Judge David A. Faber.
These cases were brought under the Bluefield Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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Texas Woman Sentenced in Designer Drug Case in KansasRead the Press Release
TOPEKA, KAN. - A Texas woman was sentenced Tuesday to five years in federal prison for selling designer drugs manufactured in Kansas, U.S. Attorney Tom Beall said. She was ordered to forfeit $2 million in proceeds from the crime.
Michelle Reulet, 37, Montgomery, Texas, pleaded guilty to one count of conspiracy to commit mail fraud. Reulet and co-defendant Michael Myers owned a business in the Houston area called Bully Wholesale. They sold products that were purchased from co-defendants Tracy Picanso and Roy Ehrett in Olathe, Kan.
The products Reulet’s company sold designer drugs marketed under names such as Pump It, Head trip, Black Arts and Grave Digger. In her plea, Reulet admitted she knew buyers consumed her products to get high, despite labels making false claims that the products were safe and were not intended for human consumption. The products were marketed as incense, potpourri and shoe deodorizer. Their labels did not warn of possible harmful effects.
Reulet’s business had gross sales of more than $2 million.
Co-defendants include:
Tracy Picanso, 61, Olathe, Kan., who is set for sentencing June 15.
Roy Ehrett, 59, Olathe, Kan., who is set for sentencing June 15.
Michael Myers, 37, Montgomery, Texas, who was sentenced to time served (two years).
Beall commended the Drug Enforcement Administration, the Food and Drug Administration – Office of Criminal Investigations, the Department of Homeland Security, Homeland Security Investigations, Customs and Border Protection, the FBI, the Overland Park Police Department, the Johnson County Sheriff’s Office, the Olathe Police Department, the St. Joseph Police Department and the Buchanan County Drug Strike Force, Assistant U.S. Attorney Tanya Treadway and Michael Varrone, Associate Chief Counsel, Food and Drug Administration, for their work on the case.
Texas Man Pleads Guilty to Federal Drug Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Marc Wren, 49, of Odessa, Texas, pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. Wren entered the guilty plea under a plea agreement that recommends a sentence of 70 to 87 months of imprisonment followed by a term of supervised release to be determined by the court.
Wren was charged by a criminal complaint filed on April 20, 2016, with possession of methamphetamine with intent to distribute on March 26, 2016, in Bernalillo County, N.M. Wren subsequently was indicted on that same charge on May 10, 2016.
According to court documents, Wren was arrested following a traffic stop after law enforcement officers determined that there was an outstanding arrest warrant for him in Texas. During a search incident to the arrest, the officers learned that Wren was in possession of approximately 107.6 grams of methamphetamine, which he had concealed in his pant leg.
During today’s proceedings, Wren pled guilty to the indictment and admitted that on March 26, 2016, he was in possession of methamphetamine, which he intended to distribute to others. Wren remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA and the Bernalillo County Sheriff’s Office and is being prosecuted by Assistant U.S. Attorney Letitia C. Simms.
Preston County man sentenced for unlawful purchase of a firearmRead the Press Release
ELKINS, WEST VIRGINIA – Cory Jean Gainey, 24, of Reedsville, West Virginia, was sentenced today to 10 months incarceration for unlawfully purchasing a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Gainey pled guilty to one count of “False Statement During the Purchase of a Firearm” in January 2107. He admitted that in October 2015, he provided a false statement to a licensed firearms dealer stating that he was the actual purchaser of the firearm when in fact he was buying it for another individual.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Monongalia County Sheriff’s Office, and the Morgantown Police Department investigated.
U.S. District Judge Irene M. Keeley presided.
Owner of Oklahoma City Employer Organization Sentenced to Three Years in Federal Prison for $22.8 Million Tax SchemeRead the Press Release
Oklahoma City, Oklahoma – A federal judge has sentenced JANIS ANN EDWARDS, of Oklahoma City, to 36 months in federal prison for tax evasion, announced Mark A. Yancey, United States Attorney for the Western District of Oklahoma.
According to an indictment filed in June 2016, Edwards was the sole owner of Corporate Resource Management, Inc., and a number of related companies with their principal place of business in Oklahoma City. These companies operated as "professional employer organizations," or "PEOs." In essence, they served small businesses in several states in the central part of the United States by, among other things, taking on responsibilities for paying their employees’ payroll and collecting and paying payroll taxes to the IRS. The employees of small businesses became employees of one of Edwards’s entities, and their payroll taxes were to be paid under the tax identification number of one of those entities.
According to the indictment, Edwards failed to pay substantial amounts of payroll taxes collected from small businesses that had contracted with one of the CRM-related entities. The 23 counts related to quarterly payroll tax returns filed by Oklahoma Corporate Resource, Inc.; Missouri Corporate Resource, Inc.; and Texas Corporate Resource, Inc., for various quarters in 2010 and 2011. The indictment alleged Edwards regularly and intentionally directed her own employees to alter these quarterly tax returns to reflect less payroll tax liability than what was actually owed.
On January 6, 2017, Edwards pled guilty to one count of tax evasion, including causing the filing of a federal payroll tax return she knew was false. In a plea agreement, she agreed she would be held responsible in this criminal case for failing to pay between $3.5 million and $25 million in payroll taxes.
Today U.S. District Judge David L. Russell ordered Edwards to serve 36 months in the custody of the Bureau of Prisons, to be followed by three years of supervised release. In determining the sentence, the court found she obstructed justice by testifying falsely in March 2016 at a bankruptcy proceeding concerning the tax obligations of four of her companies. The court also ordered Edwards to pay $22,720,242.04 in restitution to the IRS.
This case is the result of an investigation by IRS-Criminal Investigations. It was prosecuted by Assistant U.S. Attorneys Scott E. Williams and Jessica L. Perry.
Ohio man sentenced for identity theftRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tyree Skipper, 44, of Euclid, Ohio, was sentenced today to 24 months incarceration for aggravated identity theft, Acting United States Attorney Betsy Steinfeld Jividen announced.
Skipper admitted to obtaining identifying information of individuals to file fraudulent tax returns in Ohio, South Carolina and Hawaii from December 2012 to May 2013 in Gilmer County, West Virginia. He pled guilty to two counts of “Aggravated Identify Theft” in February 2017.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Internal Revenue Service and the Special Investigative Services Unit of the Bureau of Prisons investigated.
U.S. District Judge Irene M. Keeley presided.
Ohio man sentenced for cocaine and heroin distributionRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Cincinnati, Ohio man was sentenced today to 120 months incarceration for heroin and cocaine distribution, Acting United States Attorney Betsy Steinfeld Jividen announced.
Johnny D. Floyd, age 43, distributed heroin and crack cocaine in Marion County, West Virginia in December 2015. He pled guilty to one count of “Possession with the Intent to Distribute Cocaine Base and Heroin” in January 2017.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The Marion County Sheriff’s Office investigated.
U.S. District Judge Irene M. Keeley presided.
North Country Guide Pleads Guilty to Illegal Hunting of Baited WaterfowlRead the Press Release
SYRACUSE, NEW YORK – William “Bill” Saiff, III, (53), of Henderson, New York, pled guilty today in federal court in Syracuse to two counts of violating the Migratory Bird Treaty Act by guiding waterfowl hunts over baited ponds for profit on two separate occasions in October 2015. The guilty plea was announced by United States Attorney Richard S. Hartunian, Honora Gordon, Special Agent in Charge, Northeast Region, U.S. Fish and Wildlife Service, Office of Law Enforcement, and Joe Schneider, Director of Law Enforcement, New York State Department of Environmental Conservation.
The defendant is a professional hunting guide whose website advertises that for eighteen years he “hosted the popular hunting and shooting sports program Cabin Country as seen on Public Television Stations across the country.” Saiff is also the owner and operator of Bill Saiff Outdoors and Seaway Waterfowl Professionals.
In a written plea agreement, Saiff admitted that on October 27, 2015, he guided a hunting party over a baited pond in the Town of Cape Vincent, in Jefferson County, New York. Saiff had previously installed an underwater trough at the pond to hold bait. As part of his guilty plea today Saiff admitted that prior to the hunt he stocked the trough with corn to attract waterfowl to the pond. Investigators found the hidden trough stocked with corn one day prior to the hunt. Before they were approached by investigators who stopped the hunt, Saiff’s hunting party shot and killed several protected waterfowl.
Saiff also admitted that on October 31, 2015, he guided a hunting party over a baited pond in the Town of Rodman in Jefferson County. Saiff acknowledged that he placed approximately 50 pounds of corn along the shoreline of the pond less than ten days prior to that hunt. Saiff’s hunting party killed several protected birds, including geese and ducks, before a law enforcement officer intervened and seized the dead waterfowl.
As part of the guilty plea today, the government and Saiff agreed to recommend a sentence of a $5,000 fine and a term of probation, that would prohibit Saiff from any hunting or guiding activities (other than fishing) until January 1, 2019. Saiff also agreed to make charitable donations totaling $10,000 to non-profit wildlife organizations of his choice. United States Magistrate Judge Thérèse Wiley Dancks will sentence Saiff on a date to be scheduled in the future. The defendant could face a maximum prison sentence of up to one year and a fine of up to $100,000 per count.
United States Attorney Hartunian said, “We commend the U.S. Fish and Wildlife Service and the New York State Department of Environmental Conservation for their thorough investigation of this case, which reinforces the principle that the law applies to everyone. Game laws protect the rights of all hunters and are intended to preserve the nation’s wildlife resources for future generations.” Special Agent in Charge Gordon stated, “The result of this case demonstrates our commitment to enforcing wildlife laws together to protect waterfowl and ensure hunting opportunities for the future.”
This case was investigated by the U.S. Fish and Wildlife Service, Office of Law Enforcement and the New York State Department of Environmental Conservation, Division of Law Enforcement, and it is being prosecuted by Assistant U.S. Attorney Michael F. Perry.
North Carolina Man Sentenced to 15 Years for Charges Involving Scheme to Compel Five Women to ProstituteRead the Press Release
Eric J. Thompson, 29, of Jacksonville, N.C., was sentenced today to 15 years in prison and ordered to pay $19,200 in restitution after pleading guilty on November 9, 2016, to one count of interstate transportation for prostitution and one count of using an interstate facility to promote a prostitution business enterprise. Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina, and Special Agent in Charge Nick Anan of ICE Homeland Security Investigations Atlanta announced the sentence.
According to documents filed in the case and admissions in connection with the guilty plea, Thompson operated an interstate prostitution business enterprise in North Carolina and South Carolina. He used false promises of money and fame to recruit and entice five women to prostitute for his profit, and then used a scheme involving isolation, threats, and abuse to compel them to continue prostituting. Thompson further filmed himself performing sexual acts with the women and posted those videos online for sale without the victims’ consent.
“Human tracking is a heinous violation of an individual’s rights and freedoms, and today’s sentence sends a clear message that the Department of Justice will work tirelessly on behalf of human trafficking victims in order to stop this appalling criminal activity,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “We are grateful for our law enforcement partners and U.S. Attorney Bruce as we combat and dismantle human trafficking networks.”
“Our office was pleased to partner with the Civil Rights Division’s Human Trafficking Prosecutions Unit, ICE Homeland Security Investigations Atlanta, and the Raleigh Police Department in this important case. This prosecution gave the victims of this horrific human trafficking crime a voice and an opportunity to seek justice,” said United States Attorney John Stuart Bruce.
“Human trafficking is quite simply, a form of modern-day slavery, and the threats and abuse inflicted on these particular victims only adds to the heinous nature of the crime,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick Annan. “HSI made a record number of more than 2,000 human trafficking arrests in 2016 and rescued more than 400 trafficking victims nationwide, with many of them often hidden in plain sight. HSI will continue our relentless pursuit to investigate and seek prosecution of criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
Thompson was indicted on March 16, 2016, and charged with one count of sex trafficking, five counts of interstate transportation for prostitution, one count of using an interstate facility to promote a prostitution business enterprise, and one count of failing to maintain records related to individuals depicted in videos of sexually explicit conduct. A second defendant, Dequann Ross, was charged by information and pleaded guilty on August 9, 2016 to one count of using an interstate facility to promote a prostitution business enterprise for his role in aiding and abetting Thompson. He was sentenced on February 2, 2017, to 30 months in prison.
The case was jointly investigated by ICE Homeland Security Investigation’s Atlanta Division and the Raleigh Police Department. The case is being prosecuted by Assistant U.S. Attorneys Erin Blondel and Eleanor Morales of the Eastern District of North Carolina and Trial Attorney Vasantha Rao of the Civil Rights Division’s Human Trafficking Prosecution Unit.
North Carolina Man Sentenced to 15 Years for Charges Involving Scheme to Compel Five Women to ProstituteRead the Press Release
WASHINGTON – Eric J. Thompson, 29, of Jacksonville, N.C., was sentenced today to 15 years in prison and ordered to pay $19,200 in restitution after pleading guilty on November 9, 2016, to one count of interstate transportation for prostitution and one count of using an interstate facility to promote a prostitution business enterprise. Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division, U.S. Attorney John Stuart Bruce of the Eastern District of North Carolina, and Special Agent in Charge Nick Anan of ICE Homeland Security Investigations Atlanta announced the sentence.
According to documents filed in the case and admissions in connection with the guilty plea, Thompson operated an interstate prostitution business enterprise in North Carolina and South Carolina. He used false promises of money and fame to recruit and entice five women to prostitute for his profit, and then used a scheme involving isolation, threats, and abuse to compel them to continue prostituting. Thompson further filmed himself performing sexual acts with the women and posted those videos online for sale without the victims’ consent.
“Human tracking is a heinous violation of an individual’s rights and freedoms, and today’s sentence sends a clear message that the Department of Justice will work tirelessly on behalf of human trafficking victims in order to stop this appalling criminal activity,” said Acting Assistant Attorney General Tom Wheeler of the Justice Department’s Civil Rights Division. “We are grateful for our law enforcement partners and U.S. Attorney Bruce as we combat and dismantle human trafficking networks.”
“Our office was pleased to partner with the Civil Rights Division’s Human Trafficking Prosecutions Unit, ICE Homeland Security Investigations Atlanta, and the Raleigh Police Department in this important case. This prosecution gave the victims of this horrific human trafficking crime a voice and an opportunity to seek justice,” said United States Attorney John Stuart Bruce.
“Human trafficking is quite simply, a form of modern-day slavery, and the threats and abuse inflicted on these particular victims only adds to the heinous nature of the crime,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick Annan. “HSI made a record number of more than 2,000 human trafficking arrests in 2016 and rescued more than 400 trafficking victims nationwide, with many of them often hidden in plain sight. HSI will continue our relentless pursuit to investigate and seek prosecution of criminal traffickers while ensuring the victims of this terrible crime are rescued and get the care they need.”
Thompson was indicted on March 16, 2016, and charged with one count of sex trafficking, five counts of interstate transportation for prostitution, one count of using an interstate facility to promote a prostitution business enterprise, and one count of failing to maintain records related to individuals depicted in videos of sexually explicit conduct. A second defendant, Dequann Ross, was charged by information and pleaded guilty on August 9, 2016 to one count of using an interstate facility to promote a prostitution business enterprise for his role in aiding and abetting Thompson. He was sentenced on February 2, 2017, to 30 months in prison.
The case was jointly investigated by ICE Homeland Security Investigation’s Atlanta Division and the Raleigh Police Department. The case is being prosecuted by Assistant U.S. Attorneys Erin Blondel and Eleanor Morales of the Eastern District of North Carolina and Trial Attorney Vasantha Rao of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Nine Members of Hooligans Motorcycle Gang Charged in Sophisticated High-Tech Auto Theft Scheme Targeting 150 JeepsRead the Press Release
SAN DIEGO – Nine members of the Hooligans Motorcycle gang are charged in a federal grand jury indictment with participating in a sophisticated scheme to steal scores of Jeep Wranglers and motorcycles in San Diego County using handheld electronic devices and stolen codes.
According to court records, the transnational criminal organization is responsible for the theft of more than 150 Jeep Wranglers worth approximately $4.5 million within San Diego County since 2014. The Hooligans used high-tech methods to disable security systems and steal away with Jeeps in just a few minutes, in the middle of the night, while unsuspecting owners slept nearby. After stealing the Jeeps in San Diego County, the Hooligans transported them to Tijuana, Mexico, where the vehicles were sold or stripped for parts.
Three of nine defendants are in custody, including two that were arrested today at a home in Spring Valley and at the border; the rest are fugitives believed to be in Mexico. The defendants are scheduled to make first appearances in federal court either today at 2 p.m. or tomorrow at 2 p.m. before U.S. Magistrate Judge Mitchell D. Dembin.
“The joy ride is over for these Hooligans,” said Deputy U.S. Attorney Mark Conover. “For many of us, our cars are our most valuable possessions. These arrests have put the brakes on an organization that has victimized neighborhoods in a different way – by stealing something very personal. Something that required a lot of sacrifice to purchase.”
“Through the remarkable diligence and work ethic of Regional Auto Theft Task Force detectives, and the inter-agency cooperation with the FBI and the U.S. Attorney's office, a powerful case has been brought against the Hooligans gang,” said California Highway Patrol Captain Donald Goodbrand, head of the multi-agency Regional Auto Theft Task Force, which cracked the case.
“The work of law enforcement and crime fighting is 24/7,” said FBI Special Agent in Charge Eric S. Birnbaum. “The FBI, along with our law enforcement partners, will continue to work day and night to stop these large-scale international crime rings in order to protect our neighborhoods and the assets that are central to the everyday lives of people in our community.”
The indictment alleges that the Hooligans did their homework before a theft by targeting a specific vehicle days before the actual theft would take place. They obtained the vehicle identification number in advance and then managed to get secret key codes, which allowed them to create a duplicate key for that particular Jeep. Then, during the theft, the Hooligans disabled the alarm system, programmed the duplicate key using a handheld electronic device, and quietly drove away without notice.
This was a method so new and technologically advanced it required investigators to exceed the ingenuity of the thieves.
In the summer of 2014, San Diego County was hit with a rash of Jeep Wrangler thefts. Almost all the thefts occurred in the middle of the night or early morning, and almost all of the Wranglers were equipped with alarms. Yet no alarms were ever triggered, and there was never any broken glass or other signs of forced entry. Agents from the Regional Auto Theft Task Force, known as RATT, at first were perplexed. But eventually they caught a break.
On September 26, 2014, a Jeep owner parked her 2014 Jeep Wrangler Rubicon in the driveway of her home in Rancho Bernardo. She returned to the driveway early the next morning to find the Jeep missing. Fortunately, the Jeep owner had recently installed a surveillance camera on her house, and it happened to be trained on the driveway.
The surveillance footage revealed that three men stole her Jeep around 2:30 a.m. by disabling the alarm and then using a key and a handheld electronic device to turn on the engine.
Based on the surveillance footage, law enforcement agents sent Chrysler a list of around 20 Jeeps that had recently been stolen in San Diego County and asked whether anyone had requested duplicate keys for the stolen Jeeps.
Sure enough, Chrysler responded that a duplicate key had been requested for nearly every one of the 20 stolen Jeeps. Moreover, nearly every one of the keys had apparently been requested through the same dealership in Cabo San Lucas, Mexico. The Jeeps’ owners did not request duplicate keys and were unaware that anyone had.
After additional investigation, agents began interrupting Jeep thefts and made several arrests. Through these arrests, agents learned that the Tijuana-based Hooligan Motorcycle gang was behind the operation.
Video fileCase Number: 17cr1314
DEFENDANTS AGE CITY *Jimmy Josue Martinez 31 Tijuana, Mexico *Mario Alberto Echeverria-Ibarra 30 Tijuana, Mexico Henry Irenio Pulido 24 Imperial Beach, California Alejandro Guzman 23 Tijuana, Mexico *Narciso Zamora Banuelos 29 Tijuana, Mexico *Adan Esteban Sanchez Aguirre 26 Tijuana, Mexico *Salvador Isay Castillo 21 Tijuana, Mexico Reynaldo Rodriguez 33 San Diego, California *Sebastian Ponce 20 Tijuana, Mexico*Fugitives
Indictment_5_30 Search Warrant_5_30SUMMARY OF CHARGES
Conspiracy to Commit Transportation of Stolen Vehicles in Foreign Commerce, in violation of 18 U.S.C. 371; Maximum Penalty Five years in prison
AGENCIES
Regional Auto Theft Task Force, which includes the following agencies:
U.S. Border Patrol
California Highway Patrol
National Insurance Crime Bureau
California Department of Insurance
California Department of Motor Vehicles
San Diego County District Attorney’s Office
San Diego County Probation Department
San Diego County Sheriff’s Department
Ice Enforcement and Removal Operations
and police departments from La Mesa, Chula Vista, National City, Oceanside and San Diego.Federal Bureau of Investigation
Agencies assisting with arrests include U.S. Marshals and San Diego Fugitive Task Force
The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
More Than 30 Individuals Charged in Federal Drug SweepRead the Press Release
BOSTON – Thirty individuals have been charged with federal drug, gun and immigration charges and two others have been charged with state drug and gun charges for their role in the distribution of fentanyl, heroin and cocaine in and around the Lawrence area.
More than 200 federal, state and local law enforcement officers were involved in a federal sweep today that was the culmination of a yearlong investigation dubbed “Operation Bad Company,” aimed at attacking the fentanyl and heroin problem in the Lawrence area. The defendants are alleged to have controlled and managed a lucrative and sophisticated drug trafficking and distribution ring in the region.
The following individuals were charged in federal indictments unsealed today:
- Juan Anibal Patrone, a/k/a Juan Anibal, a/k/a Juan Anibal Patrone-Gonzalez, a/k/a Flaco, a/k/a Poppo, a/k/a Carlos, 26, a resident of Lawrence, dual citizen of the Dominican Republic and Italy
- Domingo Gonzalez Martinez, a/k/a Guega, 26, a resident of Lawrence, from the Dominican Republic
- Oscar Francisco Marcano Valverde, a/k/a Oscar Marcado, a/k/a Oscar Malcano, 38, a Dominican national and former resident of Haverhill, currently in custody at Bristol County House of Corrections
- Josuel Moises Patrone-Gonzalez, a/k/a Coqui, a/k/a Kiko, 22, resident of Lawrence, dual citizen of the Dominican Republic and Italy
- Luis F. Lugo, 20, of Lawrence
- Victor Alexander Gonzalez-Gonzalez, a/k/a Alex, 24, Dominican national residing in Lawrence
- Daniel Diaz, 34, of Lawrence, currently in custody at Essex House of Corrections
- Luis A. Perez-Tomassini, 29 of Lawrence
- Leonel Vives, 30, of Methuen
- Santo Marino Nivar-Tejeda, a/k/a Mello, 46, a Dominican national residing in Lawrence
- Andreury Fana Burgos, a/k/a Andreury Fanas, 21, a resident of Lawrence, from the Dominican Republic
- Lacey Picariello, 33, of Burlington, Mass.
- Matthew Shover, 29, of Sandown, N.H., currently in custody at Essex House of Corrections
- Rafael Omar Arias-Rodriguez, a/k/a Prieto Tita, 37, of Lawrence
- Rafael Arce, 46, of Lawrence
- Reynaldo Duran Lora, 23, of Lawrence
- Stacey Littlefield, 41, of Rochester, N.H.
- Melvin Weatherspoon, 57, of Rochester N.H.
- Euclides Alcantara, 49, a resident of Methuen, from the Dominican Republic
- Ramon Gonzalez Nival, a/k/a Santo Ramon Gonzalez Nivar, a/k/a Santo Marino Gonzalez-Nival, a/k/a Santo Marino Guerrero Ruiz, a/k/a Luis Rivera, a/k/a Richard Romero, a/k/a Ismael Rivera-Ayala, a/k/a Caballito, a/k/a Ramoncito, a/k/a Caballo, 40, a Dominican national residing in Lawrence
- Jose Rosado Sanchez, a/k/a Chiquito, a/k/a Pequeno, a/k/a Luis D. Resto, a/k/a Timothy O’Leary, a/k/a Luis Vega Martinez, 46 (true identity unknown)
- Julio Baez Gonzalez, a/k/a Manolo, 34, a Dominican national residing in Lawrence
- Ruddy Rafael Soto Lara, a/k/a Flor Saez Guzman, a/k/a Yernan Freight, a/k/a Rafael Ruddy, a/k/a Manuel Gonzalez, a/k/a Flor Saez, a/k/a Jorge Navarez, a/k/a Peje, 38, a Dominican national, currently in custody at Essex House of Corrections
- Geronimo Confesor Gonzalez Nivar, a/k/a Geronimo Gonzalez-Nival, a/k/a Geronimo Ruiz-Gonzalez; a/k/a Alexie, a/k/a Jaboa, 35, a Dominican national residing in Lawrence
- Carlos Hernandez, a/k/a Gordo, 34, of Lawrence, currently in custody at Essex House of Corrections
- Rory Connolly, 33, of Manchester, N.H.
- Bernaldo Rosario Santiago, a/k/a Bori, 25, of Lowell
- Diosmary Burgos, 39, resident of Lawrence, from the Dominican Republic
- Caonablo Mayobanex Pol Montero, a/k/a Cesar Eliel Echavarria Navarez, a/k/a Ely Manzano, a/k/a Mayo Baney Pol; a/k/a Mayo Pol; a/k/a Eddie Soto; a/k/a Jorge Mercado; a/k/a Israel Cortes; a/k/a Israel Cortez; a/k/a Ismael Guerra Cortez; a/k/a Ismael Cortez; a/k/a Israel P. Cortez; a/k/a Ismael Guerra; a/k/a Jorge L. Santiago; a/k/a Albertoz Vasquez; a/k/a Mayo Baney Montero; a/k/a Mayo Bane Montero; a/k/a Bani, 45, a Dominican national residing in Lawrence
- Shawn Keefe, 27, of Lowell
Four additional individuals were taken into custody on administrative immigration charges and will appear in immigration court. The Essex County District Attorney’s Office charged the following individuals with distribution of fentanyl:
- Leonny Burgos, of Lawrence
- Miriam Roche, of Lawrence
The drug statute provides for a sentence of no greater than 20 years in prison; the firearm statute provides for no more than 10 years in prison; the unlawful re-entry after deportation statute provides for no more than 10 years in prison. Defendants who are charged with unlawful re-entry after deportation are subject to deportation after serving any sentence imposed. 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; Michal J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, New England Division; Matthew J. Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Essex County District Attorney Jonathan W. Blodgett; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; and Lawrence Police Chief James Fitzpatrick made the announcement today at a press conference. The DEA Cross Border Initiative, comprised by the DEA and the Andover, Haverhill, Lawrence, Lowell, and Wilmington Police Departments, conducted the investigation jointly with the Massachusetts State Police. Assistant U.S. Attorney Susan Winkler of Weinreb’s Narcotics and Money Laundering Unit is prosecuting the case.
The details contained in the charging documents are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Monroe women plead guilty to stolen vehicle title processing schemeRead the Press Release
SHREVEPORT, La. – Acting U.S. Attorney Alexander C. Van Hook announced that two Monroe women pleaded guilty last week to a scheme to issue new titles for stolen automobiles.
Felicia Simpson, 40, of Monroe, La., pleaded guilty on May 23 before U.S. District Judge S. Maurice Hicks Jr. to one count of misprision of felony, and Ashley Owens, 30, of Monroe, La., pleaded guilty on May 24 to one count of conspiracy to commit mail fraud. According to the guilty pleas, from November 2014 to June 2015, the defendants illegally provided new titles to customers who possessed stolen or illegally obtained automobiles. Owens would receive the titles and then deliver them to Simpson who worked for a private title processing business in Monroe. Normally, it takes 10 to 14 days to process an automobile title application, which has to be sent to the Louisiana State Office of Motor Vehicles in Baton Rouge. Simpson, working as a title processor, could process an expedited title in 48 hours. They processed 104 titles during the course of the scheme.
Owens faces 20 years in prison and three years of supervised release, and Simpson faces three years in prison and one year of supervised release. They also face a $250,000 fine. The court set the sentencing date for August 30, 2017.
The FBI, Louisiana State Police, Miami Dade Police Department, Douglas County Sheriff’s Office in Georgia and the Monroe Police Department conducted the investigation. Assistant U.S. Attorneys Earl M. Campbell and Grady A. Crooks are prosecuting the case.
Minnesota Mental Health Nonprofit and Its Leaders to Pay $4.5 Million to Resolve Fraud AllegationsRead the Press Release
Acting United States Attorney Gregory G. Brooker and Minnesota Attorney General Lori Swanson today announced that Complementary Support Services and its related entities (collectively “CSS”), TERI DIMOND and HERBERT STOCKLEY have agreed to pay a total of $4.52 million to resolve allegations that they violated the False Claims Act (FCA) and Minnesota False Claims Act by defrauding Medicaid, a program jointly funded by the federal government and State of Minnesota to provide health care to low-income Minnesotans. CSS will pay the government $4 million, DIMOND agreed to pay $400,000, and STOCKLEY agreed to pay $120,000.
According to the allegations in the complaint, CSS, led by DIMOND and STOCKLEY, provided in-home mental health services to children and adults through two programs funded by the Medicaid program: Adult Rehabilitative Mental Health Services (“ARMHS”) and Children’s Therapeutic Services and Supports (“CTSS”). Both programs restrict reimbursement to time spent providing face-to-face services with the patient, and prohibit reimbursement for a therapist’s time completing paperwork. In addition, both programs require patient care to be clinically supervised by a licensed therapist, like a social worker or psychologist, to ensure that the services being paid for by taxpayers are appropriate and medically necessary.
According to the allegations, between January 1, 2007 and April 8, 2016, CSS billed Medicaid for claims while knowingly violating clinical supervision requirements. During most or all of this time period, CSS did not engage licensed professionals who agreed to accept full professional responsibility for the actions and decisions of unlicensed direct service providers. Rather than submitting claims that reflected signature by licensed professionals serving as clinical supervisors, DIMOND “batch signed” CSS progress notes that formed the basis for billing Medicaid over the years. Since January 1, 2007, CSS submitted to Medicaid more than 85,000 claims for payment. These claims represent hundreds of clients serviced by unlicensed staff members across multiple regions within the State of Minnesota. These client files could not have been, and were not, reviewed and supervised as required by law.
According to the allegations, CSS also impermissibly billed Medicaid for time completing paperwork since January 1, 2007. Specifically, CSS employees, at the direction of DIMOND and STOCKLEY, routinely added an extra billable unit for paperwork time for each client visit, fraudulently representing the added unit as face-to-face time. This practice resulted in thousands of additional billable units paid for by Medicaid in direct violation of state law.
Assistant U.S. Attorney David Fuller said, “These settlements reflect our Office’s commitment to take decisive action against health care providers who seek financial enrichment by taking advantage of federal health care programs. We thank our law enforcement partners, the whistleblower, and our colleagues at the Minnesota Attorney General’s Office for their assistance in recovering these Medicaid funds.”
“Providers of mental health services have an obligation to ensure that patients receive treatment that is necessary, appropriate and is administered with proper clinical supervision,” said Lamont Pugh III, Special Agent in Charge, U.S. Department of Health & Human Services, Office of Inspector General – Chicago Region. “To deviate from legal requirements in order to maximize profits and potentially jeopardize patient safety and well-being is completely unacceptable. The OIG will continue to work with our law enforcement partners, prosecutorial authorities and the public to identify, investigate and hold accountable those who seek to wrongfully obtain vital taxpayer dollars.”
The government’s investigation also revealed that DIMOND transferred $2 million in Medicaid funds from CSS to a nonprofit entity she started in Wisconsin. The government seized the $2 million in allegedly ill-gotten gains in June of 2016. In a negotiated civil forfeiture resolution, the government will retain $1.75 million of these alleged proceeds of the healthcare fraud scheme, bringing the government’s total recovery to $6.27 million in alleged proceeds of Medicaid fraud.
As a part of the settlements, CSS is permanently excluded from participating in federal and state health care programs. CSS’s patients were transferred to other providers of CTSS and ARMHS services. DIMOND agreed to an exclusion from federal and state health care programs for a period of not less than 8 years, and STOCKLEY agreed to an exclusion from state health care programs only for a period of not less than 5 years. Excluded providers or entities cannot participate in any way in the submission of claims to government health care programs.
These settlements resolve allegations filed in a civil lawsuit originally brought by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government for false claims and to share in any recovery. The government often relies on whistleblowers to bring fraud schemes to light that might otherwise go undetected.
In these civil settlements, Defendants CSS, DIMOND, and STOCKLEY have denied allegations of wrongdoing.
The case was handled by the Civil Frauds Unit of the U.S. Attorney’s Office for the District of Minnesota and the Medicaid Fraud Control Unit of the Minnesota Attorney General’s Office, with assistance from the Office of Inspector General of the U.S. Department of Health and Human Services.
The case is United States of America and the State of Minnesota ex rel. William L. Schwandt v. Complementary Support Services, CSS South, LLC, CSS Central, LLC, CSS North, LLC, CSS Metro, LLC, Clinical Support Services, LLC, Teri Dimond, and Herbert Stockley, Civil No. 13-CV-1018 (PJS/SER). The claims resolved by these settlements are allegations only; there has been no determination of liability.
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Mexican citizen sentenced to 14 months in prison for reentering the U.S. illegallyRead the Press Release
ALEXANDRIA, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a citizen of Mexico was sentenced last week to 14 months in prison for illegally reentering the United States after having been previously removed twice.
United States District Judge Dee D. Drell sentenced Bertolodo Labra-Martinez, 33, of Cuernavaca, Morelos, Mexico, Thursday to one count of illegal reentry of a removed alien. According to the January 26, 2017 guilty plea, the defendant was found in the United States on November 3, 2016, while incarcerated at the Calcasieu Parish Correctional Center. Records show that Labra-Martinez was previously removed from the United States in January of 2008 and March of 2015.
United States Customs and Border Protection conducted the investigation. Assistant U.S. Attorney Daniel J. McCoy is prosecuting the case.
Mexican citizen pleads guilty to illegally reentering the United StatesRead the Press Release
LAKE CHARLES, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Mexican native and citizen pleaded guilty last week to reentering the United States without permission.
Oscar Hernandez-Hernandez, 39, pleaded guilty Thursday before U.S. Magistrate Judge Kathleen Kay to one count of illegal reentry of a removed alien. The plea will become final when accepted by U.S. District Judge Donald E. Walter. According to the guilty plea, Louisiana State Police conducted a traffic stop February 3, 2017on a vehicle that Hernandez was traveling in near Lafayette, La., on LA 12. Border Patrol agents were called in, and they learned that Hernandez was not allowed to reenter the United States as he was arrested for a number of offenses including felony possession of marijuana for sale, 4 pounds or more, which is a drug trafficking offense and qualifies him as an aggravated felon. Those designated as aggravated felons face heavier penalties under federal law.
Hernandez faces up to 20 years in prison, three years of supervised release and a $250,000 fine. The court set a sentencing date of September 19, 2017.
United States Border Patrol and the Louisiana State Police conducted the investigation. Assistant U.S. Attorney Robert F. Moore is prosecuting the case.
Mexican National Sentenced for Illegal Re-Entry by A FelonRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced today that Lamberto Torres-Garcia, 32, a citizen of Mexico, was sentenced to 21 months in federal prison on May 25, 2017, for illegal re-entry into the United States by a convicted felon.
At his change of plea hearing in January, Torres-Garcia admitted that he re-entered the United States from Mexico unlawfully in 2015. Torres-Garcia also acknowledged that he had been previously convicted of burglary, felony theft, and felony illegal re-entry after deportation. Torres-Garcia was deported to Mexico twice in 2012. Torres-Garcia has been continuously confined since his arrest by Immigration and Customs Enforcement (ICE) agents in Granite City in November, 2016.
The investigation which resulted in Torres-Garcia’s arrest and conviction was conducted by ICE agents. ICE is a division of the U.S. Department of Homeland Security (DHS). The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Mexican Citizen Sentenced for Illegal Re-EntryRead the Press Release
ALBANY, NEW YORK – Miguel De Jesus Garcia, age 36, and a citizen of Mexico, was sentenced today to time served (40 days in jail) for illegally re-entering the United States.
The announcement was made by United States Attorney Richard S. Hartunian 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, De Jesus Garcia admitted that he is a citizen of Mexico, and that he returned to the United States without permission after he was previously removed from the United States, and back to Mexico, in 2012. In April 2017, ICE Officers arrested De Jesus Garcia in Saratoga Springs, New York, where he had been living.
Following his sentencing, De Jesus Garcia was transferred to the custody of the Department of Homeland Security, which will place him into removal proceedings.
This case was investigated by ICE-ERO in Latham, New York, and prosecuted by Assistant United States Attorney Michael Barnett.
Medicare Advantage Organization and Former Chief Operating Officer to Pay $32.5 Million to Settle False Claims Act AllegationsRead the Press Release
Freedom Health Inc., a Tampa, Florida-based provider of managed care services, and its related corporate entities (collectively “Freedom Health”), agreed to pay $31,695,593 to resolve allegations that they violated the False Claims Act by engaging in illegal schemes to maximize their payment from the government in connection with their Medicare Advantage plans, the Justice Department announced today. In addition, the former Chief Operating Officer (COO) of Freedom Health Siddhartha Pagidipati, has agreed to pay $750,000 to resolve his alleged role in one of these schemes.
“When entering into agreements with managed care providers, the government requests information from those providers to ensure that patients are afforded the appropriate level of care,” said Acting Assistant Attorney General Chad A. Readler of the Justice Department’s Civil Division. “Today’s result sends a clear message to the managed care industry that the United States will hold managed care plan providers responsible when they fail to provide truthful information.”
The government alleged that Freedom Health submitted or caused others to submit unsupported diagnosis codes to CMS, which resulted in inflated reimbursements from 2008 to 2013 in connection with two of their Medicare Advantage plans operating in Florida. It also alleged that Freedom Health made material misrepresentations to CMS regarding the scope and content of its network of providers (physicians, specialists and hospitals) in its application to CMS in 2008 to expand in 2009 into new counties in Florida and in other states. The government’s settlement with Mr. Pagidipati resolves his alleged role in this latter scheme.
“Medicare Advantage plans play an increasingly important role in our nation’s health care market,” said Acting U.S. Attorney Stephen Muldrow. “This settlement underscores our Office’s commitment to civil health care fraud enforcement.”
“Medicare Advantage insurers must play by the rules and provide Medicare with accurate information about their provider networks and their patients’ health,” said Chief Counsel to the Inspector General Gregory Demske of the Department of Health and Human Services Office of Inspector General (HHS-OIG). “OIG will investigate and hold managed care organizations accountable for fraud. Moving forward, the innovative CIA reduces the risks to patients and taxpayers by focusing on compliance issues unique to Medicare Advantage plans.”
The allegations resolved by these settlements were brought in a lawsuit under the qui tam, or whistleblower, provisions of the Federal False Claims Act and the Florida False Claims Act. These statutes permit private parties to sue on behalf of the government for false claims and to receive a share of any recovery. The whistleblower in this action is Darren D. Sewell, who was a former employee of Freedom Health. The whistleblower’s share in this case has not yet been determined.
The corporate entities related to Freedom and which were part of today’s settlements are: Optimum HealthCare Inc., America’s 1st Choice Holdings of Florida LLC, Liberty Acquisition Group LLC, Health Management Services of USA LLC, Global TPA LLC, America’s 1st Choice Holdings of North Carolina LLC, America’s 1st Choice Holdings of South Carolina LLC, America’s 1st Choice Insurance Company of North Carolina Inc. and America’s 1st Choice Health Plans Inc.
Today's settlements were the result of a coordinated effort by the Civil Division’s Commercial Litigation Branch, The U.S. Attorneys’ Office for the Middle District of Florida, HHS-OIG and the Florida Office of the Attorney General.
The claims resolved by the settlements are allegations only, and there has been no determination of liability. The case is captioned United States ex rel. Sewell v. Freedom Health, Inc., et al., Case No. 8:09-cv-1625 (M.D. Fla.).
McAllen Federal Jury Returns Guilty Verdict in Second Chance Lending SchemeRead the Press Release
McALLEN, Texas – Two men have been convicted for their roles in a “second chance” mortgage lending scheme, announced Acting U.S. Attorney Abe Martinez. A federal jury convicted Luis Antonio Rodriguez, 36, of Mission, and Rogelio Ramos Jr., 36, of Pharr, of conspiracy to commit wire fraud late Friday, May 26, following a seven-day-trial and approximately nine hours of deliberation.
A third defendant - Guadalupe Artemio Gomez, 31, of Mission - pleaded guilty before trial and testified against both Rodriguez and Ramos.
All three were accused of operating a “second chance” financing business under the names of T.G. and Wealth, Infinite Properties and Me In 3D, focusing on individuals who were financially unable to apply for traditional home financing. The investigation revealed Gomez, Rodriguez and Ramos conducted business in McAllen, Mission, Edinburg, Houston and San Antonio by hiring recruiters to funnel prospective home buyers to Infinite Properties. The homebuyers then gave 10 percent of the purchase price as a down payment to Infinite Properties.
During trial, the jury heard from victims, law enforcement and an FBI forensic accountant who testified that instead of using the down payments as intended, the money was used for personal expenses, trips to Las Vegas and to purchase other real estate.
The defense claimed they had no intent to defraud the victims because they had attempted to get a $10 million loan. The jury was not convinced and found both men guilty as charged.
Rodriguez and Ramos defrauded 106 people out of more than $1.8 million in down payments.
Anyone who believes they may be a victim of fraud in relation to this investigation or any other similar crime may contact the FBI at 210-225-6741.
U.S. District Judge Randy Crane presided over the trial and set Rodriguez and Ramos for sentencing on Aug. 8, 2017. Gomez will be sentenced July 25, 2017. All face up face up to up to 30 years in federal prison and a possible $1 million fine.
The FBI and police departments in McAllen, Mission and Edinburg conducted the investigation. Assistant U.S. Attorneys Robert L. Guerra Jr. and Andrew Swartz prosecuted the case.
Marion County woman convicted of mail frauRead the Press Release
CLARKSBURG, WEST VIRGINIA – A Fairmont, West Virginia woman pled guilty today to mail fraud, Acting United States Attorney Betsy Steinfeld Jividen announced.
Robin Stoneking, age 56, pled guilty to one count of “Mail Fraud.” Stoneking admitted to participating in a staged vehicle accident, faking injuries from said accident, and filing false insurance claims resulting in a $41,000 settlement. The crime happened between May 2013 and October 2013 in Marion County.
Stoneking faces up to twenty years incarceration and a $250,000 fine. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendants.
Assistant U.S. Attorney Andrew R. Cogar prosecuted the case on behalf of the government. The West Virginia Insurance Commission Office of Inspector General and the United States Postal Inspection Service investigated.
U.S. Magistrate Judge Michael John Aloi presided.
KCK Man Sentenced to 20 Years for Illegal Firearm, MarijuanaRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Kan., man was sentenced in federal court today for illegally possessing a firearm and possessing marijuana for distribution.
Michael Anthony Garrett, 32, of Kansas City, Kan., was sentenced by U.S. District Judge Roseann Ketchmark to 20 years in federal prison without parole.
Garrett was convicted at trial of being a felon in possession of a firearm, possessing marijuana with the intent to distribute and possessing a firearm in furtherance of a drug-trafficking crime on Jan. 13, 2016.
Evidence introduced during the trial indicated that Garrett was in possession of a loaded Glock .45-caliber pistol on Dec. 28, 2014. An off-duty police officer found Garrett asleep in a Dodge Caravan that was parked at one of the pumps at Grand Slam gas station, 631 Grand, Kansas City, Mo. There was no one else in the vehicle. The officer attempted to wake Garrett up but he would not wake up.
Another officer saw a handgun in the vehicle, lying in plain view on top of a pile of clothes between the seats. There was a holster for the gun observed on the front passenger floor board. Officers also found a digital scale and a mason jar containing five separately packaged baggies totaling 10.3 grams of marijuana in the vehicle. When Garrett eventually woke up, he was arrested.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Garrett has prior felony convictions for aggravated assault of a law enforcement officer and eluding a police officer.
This case was prosecuted by Assistant U.S. Attorneys Jeffrey Q. McCarther and Alison Dunning. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department and Bernards Township (NJ) Settle Lawsuit over Alleged RLUIPA ViolationsRead the Press Release
The Justice Department today announced an agreement with Bernards Township, New Jersey, to resolve allegations that the Township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it denied zoning approval to allow the Islamic Society of Basking Ridge to build a mosque. The agreement also resolves allegations that, while the zoning application was pending, the Township revised its zoning code to unreasonably limit any house of worship from building in the Township.
The agreement resolves a lawsuit the Department filed in November 2016, after the Islamic Society applied to build on property owned that permitted places of worship as-of-right. A separate agreement resolving a similar lawsuit brought by the Islamic Society against Bernards Township has also been reached.
The United States’ complaint alleged that Bernards Township discriminated against the Islamic Society based on its religion and the religion of its members when it denied the zoning application; applied standards and procedures on the Islamic Society that it had not applied to other religious and non-religious assemblies in the past; and imposed a substantial burden on the Islamic Society’s religious exercise. The United States also alleged that Bernards Township’s revised zoning code imposes unreasonable limitations on all religious assemblies in the Township, in violation of RLUIPA.
As part of the agreement, Bernards Township will permit the Islamic Society to build the mosque. The Township also has agreed to provide training on the requirements of RLUIPA to its officials and employees and publicize its non-discrimination policies, among other remedial measures. Additionally, the Township will amend its zoning ordinance to limit the zoning restrictions placed on houses of worship. In a separate agreement between the Islamic Society and the Township, the Township agreed to pay $3.25 million in damages and attorney’s fees.
“Federal law protects people of all religious communities from discrimination and unlawful obstacles when they seek to build a place of worship," said Acting Assistant Attorney General Tom Wheeler of the Justice Department's Civil Rights Division. "Through this agreement, the Islamic Society of Basking Ridge and its members will be able to build a mosque and exercise the fundamental American right of freedom of worship.”
“Federal law requires towns to treat religious land use applications like any other land use application,” said Acting U.S. Attorney William E. Fitzpatrick of the District of New Jersey. “Bernards Township made decisions that treated the Islamic Society of Basking Ridge differently than other houses of worship. The settlement announced today corrects those decisions and ensures that members of this religious community have the same ability to practice their faith as all other religions.”
RLUIPA prohibits discrimination in land use and zoning decisions. Persons who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743.
Jury Rejects “South Park” Terror Convict’s First Amendment ClaimsRead the Press Release
After deliberating for fifty-five minutes on May 24, 2017, six jurors in Benton, Illinois, unanimously rejected a First Amendment lawsuit brought by Zachary Chesser. Chesser’s lawsuit claimed that his former unit manager and case manager from the United States Penitentiary in Marion, Illinois, unlawfully retaliated against him for drafting an e-mail while he was incarcerated there in 2012. United States Attorney Donald S. Boyce of the Southern District of Illinois announced the verdict today.
Chesser appeared at the trial by video from the administrative maximum-security penitentiary in Florence, Colorado. He is currently serving a 25-year sentence for communicating threats against the writers of television show South Park, as well as soliciting violent jihadists to desensitize law enforcement, and attempting to provide material support to al Shabaab, a designated foreign terrorist organization.
The civil division of the U.S. Attorney’s office is responsible for defending federal officials who face civil lawsuits arising out of the course and scope of their official duties.
The trial was handled by Assistant U.S. Attorney Adam E. Hanna and Senior Attorney Katherine Siereveld of the Federal Bureau of Prisons.
Jury Convicts Florida National Guardsman of Attempting to Entice A Minor for SexRead the Press Release
Orlando, FL – Acting United States Attorney W. Stephen Muldrow announces that a federal jury has found John David Stahlman (35, Longwood) guilty of one count of attempting to persuade, induce, and entice a minor to engage in sexual activity. He faces a mandatory minimum penalty of 10 years, up to life, in federal prison. His sentencing hearing is scheduled for August 10, 2017.
Stahlman was indicted on November 15, 2016.
According to the testimony and evidence presented at trial, on November 10, 2016, Stahlman posted an advertisement on Craigslist seeking a “young ‘looking’ girl” for possible “physical pleasure.” An FBI agent acting in an undercover capacity responded to the advertisement and introduced himself as the single father of an 11-year-old child. During a two and a half-month period, Stahlman made plans to meet and have sex with the 11-year-old, and eventually traveled to meet with the minor. He was subsequently arrested.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Alejandro J. Salicrup and Karen Gable.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by 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 locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Jesse Denver Hanes, Alleged Shooter of Hatch Police Officer, Pleads Guilty to Federal Firearms and Carjacking OffensesRead the Press Release
ALBUQUERQUE – Acting U.S. Attorney James D. Tierney and Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division announced today that Jesse Denver Hanes, who allegedly shot and killed Hatch Police Officer Jose Chavez on Aug. 12, 2016, has entered a guilty plea to federal firearms and carjacking offenses arising out of his efforts to evade arrest following the shooting. Hanes, 39, of Columbus, Ohio, entered the guilty plea before U.S. District Judge Robert C. Brack in federal court in Las Cruces, N.M., under a plea agreement that stipulates to a sentence of life imprisonment without the possibility of release.
Third Judicial District Attorney Mark D’Antonio, Chief James Gimler of the Hatch Police Department, Chief Pete N. Kassetas of the New Mexico State Police, and Doña Ana County Sheriff Enrique Vigil joined Acting U.S. Attorney Tierney and FBI Special Agent in Charge Wade in announcing the guilty plea.
In announcing the guilty plea, Acting U.S. Attorney Tierney said, “The U.S. Attorney’s Office has made a commitment to prosecute those who seek to harm the courageous officers who put their lives on the line to protect us and safeguard our communities whenever there is federal jurisdiction to do so. This federal prosecution is part of that commitment, and today we begin the process of holding Jesse Denver Hanes accountable for the federal crimes he committed during his extremely violent crime spree on Aug. 12, 2016.”
“Whenever a brave police officer like Jose Chavez dies in the line of duty, everyone in the law enforcement community feels the loss,” said Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. “Officer Chavez's sacrifice has inspired all of us who wear the badge to renew our resolve to serve and protect our nation. I am grateful to the many FBI agents and staff, along with our law enforcement partners and prosecutors, who worked tirelessly on this case to make sure justice was done.”
During today’s change of plea hearing, Hanes pled guilty to a five-count superseding indictment that charged him with attempted carjacking; brandishing a firearm during a crime of violence; carjacking resulting in serious bodily injury; discharging a firearm during a crime of violence; and being a felon in possession of a firearm. Hanes admitted committing the five crimes on Aug. 12, 2016, in Doña Ana County, N.M. At the time, Hanes was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
Hanes was arrested Aug. 16, 2016, on a federal criminal complaint charging him with being a felon in possession of a firearm, carjacking, and discharging a firearm during a crime of violence. According to court filings, on Aug. 12, 2016, Officer Chavez executed a traffic stop in Hatch, N.M., on a vehicle driven by Hanes and in which two other men were passengers. During the traffic stop, Hanes allegedly shot Officer Chavez in the upper torso; Officer Chavez later died as the result of the gunshot wound. After fleeing from the scene of the shooting, Hanes and his passengers parted company and Hanes traveled to a rest area near Radium Springs, N.M., where he attempted to carjack two individuals by brandishing a firearm at them. Shortly thereafter, Hanes carjacked a man at the same rest area by shooting him in the leg and drove away in the injured man’s vehicle. When deputies of the Doña Ana County Sheriff’s Office arrested Hanes later that day, they found the handgun Hanes used to shoot the carjack victim and allegedly used to shoot Officer Chavez.
In addition to the federal charges to which Hanes pled guilty today, Hanes is charged in the state with first-degree murder of Officer Chavez and related crimes in the Third Judicial District Court for the State of New Mexico in Doña Ana County. Hanes also is facing an unrelated state murder charge in Ohio. Hanes has entered a not guilty plea to the state charges in New Mexico and has not yet been arraigned on the charges in Ohio. Criminal charges are merely accusations, and defendants are presumed innocent unless proven guilty beyond a reasonable doubt. Under the terms of the federal plea agreement entered into by Hanes and the U.S. Attorney’s Office, Hanes’ federal sentence of life imprisonment will run concurrent to any sentence Hanes may receive on a conviction on the state charges in the New Mexico case.
Third Judicial District Attorney Mark D’Antonio said, "The best approach to deterring criminal activity is when the federal government and local law enforcement agencies work together closely. This is a fine example of that cooperation in action, and what we are able to accomplish when we work together."
“The cooperative effort between law enforcement agencies has made our communities safer,” said New Mexico State Police Chief Pete Kassetas. “This case is a great example of how local, state and federal law enforcement agencies are working with State District Attorneys and the U.S. Attorney to prosecute violent criminals. I cannot express my gratitude enough to all the agencies involved.”
“From the moment this tragic incident first hit our police radios on August 12, we knew the Doña Ana County Sheriff’s Department wasn’t alone,” said Doña Ana County Sheriff Enrique Vigil. “The efforts of every responding agency reinforced what our deputies do every day – ensure the safety of our residents. The collaboration of those efforts is what ensures criminals like Jesse Hanes receive the maximum sentence possible for their actions.”
Chief James Gimler of the Hatch Police Department said, “I am very pleased that justice is being served in this case and that the victims of Mr. Hanes’ crimes will be spared the emotional difficulty of sitting through his trial. Mr. Hanes’ crimes have forever changed the lives of his victims and their family members, and I am extremely grateful for all of the support from my fellow law enforcement officers and the entire community.”
The federal case was investigated by the Las Cruces office of the FBI, Hatch Police Department, Doña Ana County Sheriff’s Office and New Mexico State Police, with assistance from the 3rd Judicial District Attorney’s Office. The following agencies also assisted in the investigation: the Albuquerque and El Paso offices of the FBI, ATF, DEA, U.S. Marshals Service, Homeland Security Investigations, U.S. Border Patrol, Las Cruces Police Department, El Paso (Texas) County Sheriff’s Office and El Paso (Texas) Police Department.
Assistant U.S. Attorneys Marisa A. Ong and Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the federal case against Hanes as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their felony conviction records for federal prosecution with the goal of removing violent, repeat offenders from communities in New Mexico for as long as possible.
Houston Man Faces Twenty Years in Federal Prison for His Role in $6.5 Million Diamond Investment Fraud SchemeRead the Press Release
DALLAS — A Houston man, Christopher Arnold Jiongo, appeared this morning before U.S. Magistrate Judge Paul D Stickney and pleaded guilty to one count of wire fraud, announced U.S. Attorney John Parker of the Northern District of Texas.
Jiongo, 55, faces a maximum statutory penalty of twenty years in federal prison and a $250,000 fine. He will remain on bond pending sentencing, which is set for September 11, 2017, before U.S. District Judge David C. Godbey.
Co-defendants Craig Allen Otteson, 64, of McKinney and Jay Bruce Heimburger, 58, of Dallas, are scheduled for trial July 17, 2017.
According to plea documents filed in the case, Otteson acted as the Managing Member and Chief Compliance Officer of Stonebridge Advisors, LLC, located on Belt Line road in Dallas. Stonebridge Advisors was involved as the Managing Partner of Worldwide Diamond Ventures, L.P., located at 6029 Belt Line in Dallas, and it acted as the General Partner of Worldwide Diamond. Heimburger acted as a Principal Partner of Worldwide Diamond, and he was also listed as the registered agent and Director of JBH Securities, Inc. located on San Rafael in Dallas. JBH Securities was primarily involved in the business of providing investment advice. Worldwide Diamond was primarily involved in the business of buying and reselling diamonds on the international market. On October 1, 2013, Worldwide Diamond filed for bankruptcy in the Northern District of Texas.
During the summer of 2011 through November 2011, Jiongo drafted $50,000 diamond notes which were later used as investment vehicles to generate investment funds. Jiongo, Otteson and Heimburger represented that all investment funds would be used to buy and resell diamonds and that every dollar invested would always be fully secured by the cash and diamond inventory of Worldwide Diamond. Sometime in the summer of 2011, Jiongo, Otteson and Heimburger realized that the original business plan was not working out as planned and that the defendants therefore could not honor the original promises and representations made to investors. Jiongo, Otteson, and Heimburger then engaged in a scheme to defraud investors by fraudulently concealing from investors that investor funds were being used for unauthorized purposes unrelated to the purchase and resale of diamonds. These unauthorized purposes included making several loans totaling approximately $2.4 million to third parties and to Global Reach Industries Limited for purposes not disclosed to or authorized by the investors. Jiongo, Otteson and Heimburger also fraudulently concealed from Worldwide Diamond investors that defendants planned to make an unauthorized $1 million loan of investor funds to Global Reach Industries Limited, a company established and controlled by defendant Jiongo.
During July 2011, Jiongo, Otteson and Heimburger all agreed to fraudulently wire transfer $400,000 of investor funds into several bank accounts designated by Jiongo. In August 2011, all three defendants agreed that defendant Jiongo would cause another $600,000 of investor funds to be wire transferred directly into a trust account controlled by Jiongo.
As a result of this scheme to defraud during the period from about 2011 through 2012, documents reflect that millions of dollars were fraudulently collected from Worldwide Diamond investors.
This case is one of several felony prosecutions of bankruptcy-related crimes generated by the Bankruptcy Fraud Initiative in the Northern District of Texas. Of the 26 defendants charged as part of that initiative - 17 have been convicted, 1 resulted in a mistrial and 8 are pending trial.
The U.S. Postal Inspection Service investigated the case. Assistant U.S. Attorney David Jarvis is in charge of the prosecution.
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Gangster Disciple Sentenced to 110 Months in Federal Prison for Illegally Possessing a Weapon and Counterfeit MoneyRead the Press Release
Jackson, TN – Gangster Disciple Tarrice Martez McCarley, 32, has been sentenced to 110 months in federal prison for being a felon in possession of a firearm and possession of counterfeit Federal Reserve notes. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the sentence today.
According to information presented in court, on January 5, 2016, investigators with the Jackson Police Department Gang Enforcement Unit stopped a vehicle driven by Tarrice Martez McCarley. McCarley had an open warrant at the time of the stop. He got out of the car in a residential area of North Parkway in Jackson, TN with a fully loaded Llama .38 caliber revolver in his hand. The defendant dropped the firearm and fled on foot. An investigator deployed his Taser in an attempt to stop McCarley. McCarley was taken into custody shortly thereafter. McCarley was a several time convicted felon.
During an interview, McCarley admitted he had purchased the gun for $100 from someone on the street. At the time of his arrest, the defendant had 11 counterfeit one hundred dollar bills in his wallet. All the bills had the same serial number.
The case was investigated by the Jackson Police Department, Gang Enforcement Unit; Bureau of Alcohol, Tobacco, Firearms and Explosives; and the Federal Bureau of Investigation. Assistant U.S. Attorney Beth Boswell prosecuted this case on the government’s behalf.
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Gangster Disciple Pleads Guilty to RICO ConspiracyRead the Press Release
Memphis, TN – Derrick Kennedy Crumpton, the Assistant Governor of the Gangster Disciples for the State of Tennessee, has pleaded guilty to both RICO and drug conspiracy charges. Lawrence J. Laurenzi, Acting U.S. Attorney for the Western District of Tennessee, announced the guilty plea today.
According to the indictment, as the Assistant Governor of the Gangster Disciples, Crumpton directed other members and associates of the enterprise in carrying out criminal activity with other Gangster Disciples gang leaders, as well as participated directly in the criminal activities of the enterprise - including murder, kidnapping, assault, intimidation of witnesses and victims, narcotics distribution, and weapons trafficking.
"It is important that gang members are aware that if they engage in drug dealing and/or violent acts that they will receive a stiff prison sentence. Mr. Crumpton’s guilty plea demonstrates that joining a violent street gang is a dead-end decision that will end badly for its members," said Acting U.S. Attorney Laurenzi.
Crumpton is 1 of 16 Gangster Disciples in the Memphis and Jackson area indicted in May 2016 for conspiring to participate in a racketeering enterprise. On Tuesday, May 30, 2017, Crumpton pleaded guilty before U.S. District Judge John T. Fowlkes, Jr., to conspiracy to participate in a racketeering enterprise and conspiracy to distribute narcotics. Crumpton is the second of 16 indicted defendants to plead guilty. Daniel Cole pleaded guilty on December 21, 2016.
Crumpton is scheduled to be sentenced by the Honorable John T. Fowlkes, Jr., on Thursday, August 17, 2017, at 10:00 a.m. He faces up to life in federal prison and a fine of up to $10,000,000.
The case was investigated by the Federal Bureau of Investigation; Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); Drug Enforcement Administration (DEA); Tennessee Bureau of Investigation (TBI); the Multi-Agency Gang Unit, Police Departments for Memphis, Bartlett, Germantown, and Jackson; Sheriff’s Offices for Tipton, Desoto, Madison, Fayette, and Shelby County; and the West Tennessee Drug Task Force.
Assistant U.S. Attorneys Jerry Kitchen, Beth Boswell, Michelle Kimbril-Parks, and Special Assistant United States Attorney Sam Stringfellow are prosecuting this case on the government’s behalf.
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Former Managing Director at New York Broker-Dealer Pleads Guilty in “Pay-To-Play” Bribery Scheme Involving Public Pension FundRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that DEBORAH KELLEY, a former managing director of institutional fixed income sales at a New York-based broker-dealer (the “Broker-Dealer”), pled guilty today before U.S. District Judge J. Paul Oetken for participating in a “pay-to-play” bribery scheme involving the New York State Common Retirement Fund (“NYSCRF”), the nation’s third largest public pension fund.
Acting U.S. Attorney Joon H. Kim said: “As she admitted today, Deborah Kelley bribed Navnoor Kang to steer state pension business to her brokerage firm, reaping hundreds of thousands of dollars in additional commissions for the firm. In the process, she was complicit in defrauding New York pensioners and depriving them of Kang’s honest services. The hard-earned retirement savings of New Yorkers should not be a vehicle for corrupt pension administrators and securities brokers to profit.”
According to allegations contained in the Indictment charging KELLEY and statements made during her plea proceeding:
The NYSCRF
The NYSCRF is a pension fund administered for the benefit of public employees of the State of New York. From January 2014 through February 2016, Navnoor Kang served as Director of Fixed Income and Head of Portfolio Strategy for the NYSCRF. In that capacity, Kang was responsible for investing more than $53 billion in fixed-income securities on behalf of the NYSCRF. Kang owed a fiduciary duty to the NYSCRF and its members and beneficiaries, and was required to make investment decisions in their best interests and free of any conflict of interest. New York State law and NYSCRF policies prohibited Kang and other NYSCRF employees from receiving any bribes, gifts, benefits, or consideration of any kind, as KELLEY well knew.
The Scheme to Steer NYSCRF Fixed-Income Business in Exchange for Secret Bribes
From 2014 through 2016, Kang, KELLEY, and others participated in a scheme to defraud the NYSCRF and its members and beneficiaries, and to deprive the NYSCRF of its intangible right to Kang’s honest services. The scheme involved, among other things, an agreement among Kang, KELLEY, and others to pay Kang bribes – in the form of entertainment, travel, and lavish meals, among other things – in exchange for fixed-income business from the NYSCRF. Such bribes were strictly forbidden by the NYSCRF, and were paid secretly and without any disclosure to the NYSCRF and its members and beneficiaries concerning the conflicts of interests inherent therein.
In exchange for the bribes paid by KELLEY, Kang used his position as Director of Fixed Income and Head of Portfolio Strategy at the NYSCRF to promote the interests of KELLEY and her brokerage firm. Kang, in exchange for the bribes he received, agreed to steer fixed-income business to the Broker-Dealer. In so doing, Kang, with KELLEY’s knowledge and approval, breached his fiduciary duty to make investment decisions in the best interest of the NYSCRF and its members and beneficiaries, and free of conflict, and deprived the NYSCRF of its intangible right to Kang’s honest services.
As KELLEY paid bribes to KANG, the Broker-Dealer’s fixed-income business with the NYSCRF skyrocketed. The value of NYSCRF’s domestic bond transactions with the Broker-Dealer increased from zero in the fiscal year ending March 1, 2014, to approximately $156 million in the fiscal year ending March 1, 2015, and to approximately $179 million in the fiscal year ending March 1, 2016. Kang’s trades resulted in the payment of hundreds of thousands of dollars in commissions to the Broker-Dealer, of which KELLEY personally earned approximately 35 to 40 percent.
Obstruction of Justice
In late 2015, the Securities and Exchange Commission (“SEC”) opened an investigation into the entertainment and benefits that KELLEY had provided Kang, and the SEC subpoenaed both KELLEY and Kang for their testimony. In advance of their testimony, KELLEY and Kang agreed to align their stories and testify falsely before the SEC in order to conceal their scheme. In late 2015 and early 2016, KELLEY and Kang each falsely testified under oath before the SEC about expenses KELLEY had paid for Kang.
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KELLEY, 58, of Piedmont, California, pled guilty to one count of conspiracy to commit securities fraud and honest services wire fraud, which carries a maximum sentence of five years in prison and three years of supervised release.
In December 2016, Gregg Schonhorn, a former a vice president of fixed income sales at another New York-based broker-dealer, pled guilty for his participation in the scheme. Kang, against whom charges for conspiracy, securities fraud, honest services wire fraud, and obstruction of justice are currently pending, is presumed innocent unless and until proven guilty.
Mr. Kim praised the investigative work of the Federal Bureau of Investigation and noted that the investigation is continuing. He also thanked the SEC, which filed civil charges against Kang, KELLEY, and Schonhorn in a separate civil action, and the Office of Inspector General for the Office of the New York State Comptroller.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Edward A. Imperatore and Joshua A. Naftalis are in charge of the prosecution.
Former Dallas County Supervision Officer Pleads Guilty to Bribery ChargesRead the Press Release
DALLAS — David Delgado, 35, of Dallas, appeared in federal court this morning and pleaded guilty, before U.S. Magistrate Judge Irma Carrillo Ramirez, to one count of use of interstate facility to commit travel act. U.S. Attorney John Parker of the Northern District of Texas made today’s announcement.
Delgado faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for September 14, 2017.
According to documents filed in the case, from November 26, 2015 and continuing to May 31, 2016, Delgado was employed as a Dallas County Community Supervision officer (DCCSO). His job involved the monitoring, counseling, and developing and implementing supervision plans for, among others, adult Spanish-speaking individuals who were on court-ordered probation.
During this time period, Delgado supervised an individual who had no legal status in the United States and who was on probation for a Dallas County offense. Delgado called the probationer into his office and told him/her that he/she still had community service to complete and fees to pay as a condition of his/her probation. The probationer knew that Delgado’s request was not correct because he/she had receipts showing his/her status was current on payments and community supervision hours, and that no more monies were owed. Just prior to their last in-person meeting, Delgado told the probationer that he/she had to come up with another $1,600 within eight days or he/she would have to perform additional community service. Delgado explained the $1,600 would be divided between two others who were supposed to help Delgado waive/prevent the imposition of additional community service hours. The probationer believed that paying Delgado would prevent additional charges against him/her and felt obligated to do so since Delgado was in a position of authority as his/her DCCSO. Thereafter, on a Saturday prior to June 2016, Delgado placed a call to the probationer and arranged a meeting at a Dallas restaurant to collect the bribe payment. During the call, the probationer asked Delgado if he/she could pay half of the $1,600 at the meeting and the other half later. Delgado told the probationer that he needed all of the money at once because he just could not pay one person and not the other that were going assist. Delgado further explained that to pay in full was for the probationer’s benefit and would help keep immigration officials away. Delgado warned the probationer that one of his other probationers was picked up by Immigration officials and deported, and that the probationer needed to stay straight. Delgado and the probationer met as planned and Delgado was paid $1,600.
In addition to the $1,600 Delgado received described above, Delgado also received a total of approximately $1,300 from three other probationers he supervised.
The Federal Bureau of Investigation, Texas Rangers, and the Dallas County Sheriff’s Office are in charge of the investigation. Assistant U.S. Attorneys John Kull and Kate Rumsey are in charge of the prosecution.
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Felon Sentenced to 15 Months for Attempting Illegal Re-EntryRead the Press Release
SYRACUSE, NEW YORK – Maria Martinez, a/k/a Maria Josefa Munagorri Diaz, age 49, of Madrid, Spain, was sentenced today to 15 months in prison for attempting to illegally re-enter the United States.
The announcement was made by United States Attorney Richard S. Hartunian and Steven Bronson, United States Customs and Border Protection Port Director for the Champlain Port of Entry.
In 2002, Martinez was convicted of conspiracy to distribute cocaine in the Northern District of Ohio. After serving 32 months in prison, she was removed from the country. As a result of her conviction, Martinez was not allowed to re-enter the United States.
On August 8, 2016, Martinez presented herself at the Champlain Port of Entry for admission to the United States and presented a passport in the name “Maria Josefa Munagorri Diaz.” A fingerprint scan of Martinez, conducted by United States Customs and Border Protection Officers, resulted in the discovery of her criminal history and prior deportation.
Following her term of imprisonment, Martinez will be transferred to the custody of the Department of Homeland Security, which will place her into removal proceedings.
This case was investigated by United States Customs and Border Protection, and was prosecuted by Assistant U.S. Attorney Douglas Collyer.
Engineering Contractor Charged with Conspiracy to Commit BriberyRead the Press Release
An engineering contractor, Paulin Modi, 48, of Troy, was charged today in an information with one count of conspiracy to bribe a public official of Washington Township in connection with public contracts, Acting United States Attorney Daniel L. Lemisch announced.
Lemisch was joined in the announcement by David P. Gelios, Special Agent in Charge of the Detroit Field Office of the Federal Bureau of Investigation and Manny Muriel, Special Agent in Charge of the Detroit Field Office of the Internal Revenue Service.
The information alleges that, in May of 2014, Modi paid a $1,000 cash bribe to an official with Washington Township with respect to Modi’s contract. It also alleges that between June and October of 2014, Modi helped facilitate a $2,000 cash bribe by another contractor.
The United States Attorney’s Office and the FBI wish to acknowledge the extraordinary assistance of Washington Township Supervisor Daniel O’Leary, who brought the criminal conduct to the attention of federal law enforcement and has been a valuable asset to the investigation since its inception.
This case is part of the government’s wide-ranging corruption investigation centered in Macomb County, Michigan. The investigation of this case was conducted by the Federal Bureau of Investigation and the Internal Revenue Service. The case is being prosecuted by Assistant U.S. Attorneys David A. Gardey and R. Michael Bullotta.
The charge carries a maximum sentence of 5 years’ imprisonment and a fine of $250,000
An information is only a charging document 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
East Hartford Man Charged with Sex Trafficking of a MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in Hartford has returned an indictment charging ALEXANDER PEDRAZA, 26, of East Hartford, with one count of sex trafficking of a minor.
The indictment was returned on May 24, 2017, and was unsealed on May 26 when PEDRAZA was arrested. Following his arrest, PEDRAZA appeared before U.S. Magistrate Judge William I. Garfinkel in Bridgeport and entered a plea of not guilty to the charges. PEDRAZA was ordered detained pending a bond hearing that will be scheduled for later this week.
According to the indictment, PEDRAZA recruited, harbored and transported a minor victim, who was under the age of 18, to engage in commercial sex acts between approximately March 5 and March 12, 2017.
If convicted of the offense, PEDRAZA faces a mandatory minimum term of imprisonment of 10 years and a maximum term of life imprisonment.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation and the East Windsor Police Department, through the Connecticut Human Trafficking Task Force. The case is being prosecuted by Assistant U.S. Attorneys Neeraj N. Patel and Sarala V. Nagala.
Duncan Woman Sentenced for Defrauding Columbia Health Care ProvidersRead the Press Release
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Danielle Nicole Burroughs, age 35, of Duncan, was sentenced today in federal court in Columbia for Conspiracy to Commit Mail Fraud, a violation of 18 U.S.C. § 1349. She received 14 months incarceration and was ordered to pay $2.8 million in restitution. United States District Judge Mary J. Lewis of Columbia determined the sentence. Co-conspirators Gary Lee Joiner, age 56, and Timothy Weldon Arthur, age 39, both of Columbia, were sentenced on May 15th. Joiner was sentenced to two years’ incarceration and ordered to pay over $2.8 million in restitution. Arthur was sentenced to five years’ probation and ordered to pay $685,000 in restitution.
Evidence presented at the change of plea hearing established that Joiner was the Director of Orthopedic Services for Moore Orthopedic Clinic between 2006 and 2015. In 2010, when Moore Orthopedic merged with Providence Hospital, Joiner established a fake durable medical equipment (DME) company, Creative Casting Concepts (CCC). He then proceeded to submit false invoices to Moore and Providence, representing that CCC was providing orthopedic boots, when they were not.
Burroughs was recruited by Joiner to put her name on CCC in order to keep Moore Orthopedic from learning of Joiner’s connection. She helped manage a bank account and post office box and received approximately $191,000 in compensation over five years. Arthur took Joiner’s position at Moore Orthopedic in January 2015, when Joiner retired. Arthur agreed to continue to submit fake invoices. He received approximately $24,000 in compensation before the scheme was discovered in June 2015. Overall, Joiner submitted $2.8 million in bogus invoices between 2011 and 2015.
The case was investigated by agents of the Federal Bureau of Investigation. Assistant United States Attorney Winston David Holliday, Jr. of the Columbia office prosecuted the case.
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Crowley man sentenced to 15 years in prison for taking videos of sex with minorRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced that a Crowley man was sentenced Friday to 180 months in prison for using his cell phone to produce videos of sex acts with a minor.
Blake Damian Rodgers, 35, of Crowley, La., was sentenced by U.S. District Judge Donald E. Walter on one count of production of child pornography. He was also sentenced to 15 years of supervised release and ordered pay a $5,000 fine under the Justice for Victims of Trafficking Act. He is also required to register as a sex offender. According to the January 31, 2017 guilty plea, Rodgers was arrested and booked into the Acadia Parish jail February 24, 2016 on theft charges. While incarcerated, officers were notified that Rodgers was having sexually explicit conversations on the phone with a 14-year-old minor. Further investigation revealed that Rodgers had been involved in a sexual relationship with the minor and had taken videos of the acts on his cell phone. After recovering the cell phone, law enforcement agents located several sexually explicit videos of the minor.
This case is part of Project Safe Childhood, a U.S. Department of Justice nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who 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 U.S. Department of Homeland Security and U.S. Immigration & Customs Enforcement (ICE) also encourage the public to report suspected child predators and any suspicious activity through its toll-free hotline at (866) 347-2423. Investigators are available at all hours to answer hotline calls. Tips or other information can also be submitted to ICE online by visiting their website at www.ice.gov/exec/forms/hsi-tips/tips.asp or through the Operation Predator smartphone application www.ice.gov/predator/smartphone-app. Tips may be submitted anonymously.
Homeland Security Investigations and the Acadia Parish Sheriff’s Office conducted the investigation. Assistant U.S. Attorney David C. Joseph prosecuted the case.
Chicago New Birth Christian Center Pastor and Others Plead Guilty to Summer Food Program FraudRead the Press Release
SPRINGFIELD, Ill. – The founding pastor of New Birth Christian Center, a non-denominational church in Chicago, his wife, and three associates have pled guilty to defrauding a summer food program for low-income children. Robbie Wilkerson, 49, and his wife Tasha, 44, both of Oak Park, Ill., entered their guilty pleas today before U.S. Magistrate Judge Tom Schanzle-Haskins. Robbie Wilkerson pled guilty to wire fraud and money laundering; Tasha Wilkerson pled guilty to theft of government funds.
The business administrator for the 2010 summer food program, Anthony Hall, 54, a NBCC pastor, of Downers Grove, Ill.; Richard Shumate, 51, program operations manager for the 2010 program; and his wife Evelyn Shumate, 48, who worked as an assistant for the program, of Romeoville, Ill., each entered pleas of guilty last week to one count of theft of government funds.
The Summer Food Service Program provides nutritious meals to low-income children during the summer months when schools are not in session. In Illinois, the State Board of Education (ISBE) administers the program funding which is provided by the Food and Nutrition Service, an agency of the U.S. Department of Agriculture.
The New Birth Christian Center operated the food program in 2008, 2009 and 2010, and was one of the largest recipients of Summer Program funds in Illinois,. For the 2010 program year, Robbie Wilkerson, on behalf of NBCC, submitted a total operational budget to the ISBE of $446,440, including $250,000 for food and $26,400 for administrative costs. The budget represented that NBCC would administer the summer program at 34 sites in the Chicago area.
Instead, Robbie Wilkerson admitted that he submitted or caused to be submitted, approximately $714,000 in false and fraudulent claims to ISBE, more than $250,000 above the budgeted amount. The submitted claims represented that approximately 267,000 meals were served to low-income children, when in fact, fewer than 100,000 meals were actually served, and as much as $450,000 was used for the defendants’ personal use.
Robbie and Tasha Wilkerson admitted that they embezzled more than $100,000 from the program, including more than $60,000 in direct payments to themselves, at the same time Tasha was paid as an employee of Youth Outreach Services, Chicago, as a prevention coordinator. In addition, more than $10,000 was given directly to relatives; $20,000 in cash and other withdrawals from NBCC’s bank account; $46,000 to purchase real estate in Chicago; and, $37,109 to purchase a residence in Memphis Tenn., for Robbie Wilkerson’s parents.
Hall admitted that he embezzled as much as approximately $50,800 in USDA funds for his and his spouse’s use, an amount that exceeded the projected total administrative costs for the summer program by more than $20,000.
Richard and Evelyn Shumate admitted embezzling between $40,0001 and $$95,000 in USDA funds for their personal use, including as much as $28,695 to purchase a 2011 Hyundai Sonata.
Sentencing hearings for Robbie and Tasha Wilkerson are scheduled on Oct. 6, 2017. Hall’s sentencing date has been set for Sept. 22; Richard and Evelyn Shumate are scheduled for sentencing on Sept. 15, 2017.
According to court documents, at sentencing, the government has stated its intent to recommend that Robbie Wilkerson be sentenced to 37 months in prison and ordered to pay restitution of at least $400,000. For Tasha Wilkerson, Hall, and Richard and Evelyn Shumate, who each pled guilty to one count of theft of government funds, the government has agreed to recommend a split sentence of five months in prison followed by five months of home confinement and to pay restitution. These recommendations are advisory and are not binding on the court which determines sentencing based on the advisory Sentencing Guidelines and other statutory factors.
Assistant U.S. Attorney Timothy A. Bass is prosecuting the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The charges are the result of investigation by the U.S. Department of Agriculture, Office of Inspector General. The Illinois State Board of Education also assisted in the investigation.
Cheyneyville man pleads guilty to stealing Social Security benefitsRead the Press Release
LAFAYETTE, La. – Acting U.S. Attorney Alexander C. Van Hook announced today that a Cheneyville man pleaded guilty to stealing Social Security benefits.
Gary Blake Williamson, 71, of Cheneyville, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of theft of government property. The plea will become final when accepted by U.S. District Judge S. Maurice Hicks Jr. According to the guilty plea, Williamson began receiving Social Security disability benefits in 2002. His filing indicated total disability and that he could not work. He began working for a private company in December of 2007 earning $2,500 to $3,000 a month but continued to improperly receive disability benefits until May of 2012.
Williamson faces 10 years in prison, three years of supervised release and a $250,000 fine. The court did not set a sentencing date.
The Social Security Administration-Office of Inspector General investigated the case. Assistant U.S. Attorney Robert C. Abendroth is prosecuting the case.
Cairo Man Sentenced to Life in Prison for Double Murder During an Attempted Robbery of Cairo BankRead the Press Release
James Nathaniel Watts, 32, of Cairo, Illinois, was sentenced today in United States District Court in Benton to life in prison without the possibility of release plus a 10 year consecutive term of imprisonment announced Donald S. Boyce, United States Attorney for the Southern District of Illinois. Watts pled guilty in March of this year to a two count indictment charging him with an attempted robbery of the First National Bank in Cairo in May 2014 during which two bank employees were murdered by Watts and a third employee was grievously injured. Watts also pled guilty to being a felon in passion of a firearm in relation to the .380 caliber handgun he carried with him during the attempted robbery.
Evidence introduced in support of the guilty pleas and sentence established that on May 15, 2014, at approximately 4:45 p.m., Watts approached bank employees Anita Grace, Nita Smith, and Kaeley Price as they left the bank after closing. Watts covered his face with a folded white pillowcase and armed himself with a handgun and a hunting knife. Watts forced the three employees back into the bank at gunpoint. Once inside, he bound each of the employees’ hands with zip ties as he attempted to gain entry to the vault. The employees were unable to open the vault because it was equipped with a time lock that could not be opened until the next morning. Watts then then forced the three employees into the bank’s break room where he killed Ms. Grace and Ms. Smith and attempted to kill Ms. Price. Ms. Smith died at the bank. Ms. Grace died from injuries inflicted by Watts shortly after being transported to the hospital. While Watts believed he had also killed Ms. Price, she survived and, despite being critically injured, was able to call 911 after Watts fled the bank. Police captured Watts following a high-speed chase and manhunt. Authorities found him hiding in the structure of a railroad trestle bridge in Cairo that spans the Ohio River between Illinois and Kentucky. He was taken into custody after a two-hour standoff with federal, state, and local law enforcement officers.
The surviving victim and family members of the deceased victims were given the opportunity to address the Court and Watts before sentence was pronounced. In addition to the term of imprisonment, Watts was ordered to pay to the United States fines and special assessments totaling $1200.
Watts has been held without bond since his arrest in May 2014 and was again remanded to the custody of the United States Marshal after the sentencing hearing to await designation by the Federal Bureau of Prisons to one of its facilities.
The investigation in this case was conducted by the Federal Bureau of Investigation and the Illinois State Police with the assistance of numerous other law enforcement agencies in Illinois and Missouri. The case was prosecuted by Assistant United States Attorneys George Norwood and James M. Cutchin, and Department of Justice Capital Case Section Trial Attorney Jeffrey Zick.
Buffalo Woman Sentenced on Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Rose Smith, 66, of Buffalo, NY, who was convicted of possession with intent to distribute fetanyl, oxymorphone, oxycodone, and hydrocodone, was sentenced to 48 months in prison by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Laura Higgins, who handled the case, stated that on February 7, 2014, a search warrant was executed at the defendant’s residence on Littlefield Avenue in Buffalo. Officers recovered a large number of prescription pills, patches, marijuana, and two firearms. Subsequent analysis determined that the pills and patches contained oxycodone, fentanyl, oxymorphone, and hydrocodone. Smith admitted that she sold the majority of her own prescriptions of fentanyl and oxycodone to drug customers. The defendant also sold prescription narcotics she received from at least two other people.
The sentencing is the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Divison, and the Erie County Sheriff’s Department, under the direction of Sheriff Timothy Howard.
Brooklyn Bloods Gang Enforcer Sentenced to 30 Years in Prison for Narcotics TraffickingRead the Press Release
Earlier today at the federal courthouse in Brooklyn, New York, Shondell Walker, also known as “M-Dot,” a member of the Brooklyn-based Murderous Maddawg Bloods, was sentenced to 30 years in prison for narcotics trafficking and his role as an enforcer for Bloods gang leader Ronald Herron, also known as “Ra Diggs,” or “Ra Digga.” The sentence was imposed by United States District Judge Nicholas G. Garaufis.
The sentence was announced by Bridget M. Rohde, Acting United States Attorney for the Eastern District of New York; William F. Sweeney, Jr., Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); James P. O’Neill, Commissioner, New York City Police Department (NYPD).
“The defendant was an enforcer for a criminal gang that terrorized the Gowanus and Wyckoff Gardens communities for decades,” stated Acting United States Attorney Rohde. “He also testified falsely on behalf of the gang's leader. Together with our law enforcement partners, we are committed to bringing violent criminals to justice and will not be deterred by attempts to obstruct our efforts.”
“This case proves the lengths gang members will go to protect their own,” stated FBI Assistant Director-in-Charge Sweeney. “The subject will spend the bulk of his life in federal prison all because he felt allegiance to a deadly and criminal gang. The work of our FBI New York Metro Safe Streets Task Force and our law enforcement partners is vital to stopping the spread of criminal enterprises like these gangs, and we won’t back off until these gangs no longer exist.”
“The defendant in this case – the enforcer for a violent gang that plagued the Gowanus Houses and Wyckoff Gardens housing developments for decades – was sentenced to 30 years behind bars,” stated Commissioner O’Neill. “Today’s sentence should be a reminder to those who trade in drugs and violence: We will never stop in our relentless pursuit of justice.”
Walker pled guilty pursuant to a plea agreement on October 6, 2011, to conspiring to distribute narcotics. During Herron’s trial, Walker was called as a defense witness and testified falsely on Herron’s behalf. Specifically, Walker testified that Herron had served as a positive role model in the Gowanus and Wyckoff Gardens communities, that he had never seen Herron sell narcotics, and that he had never worked, sold drugs, or carried a firearm on Herron’s behalf. Walker’s claims were substantially undermined by the admission into evidence of a letter he had written from prison in which he stated that he intended to remain loyal to Herron because of their relationship in the Bloods.
Herron was convicted after trial and previously sentenced to multiple life terms consecutive to 105 years in prison.
Herron and Walker’s convictions followed dozens of successful prosecutions over the past decade conducted by the U.S. Attorney’s Office for the Eastern District of New York, along with the FBI and NYPD, of violent gang members and drug dealers from the Gowanus and Wyckoff Gardens housing developments.
The government’s case is being handled by the Office’s Organized Crime & Gangs Section. Assistant United States Attorneys Shreve Ariail, Samuel Nitze, and Rena Paul are in charge of the prosecution.
The Defendant:
SHONDELL WALKER
Age: 31
Brooklyn, New York
E.D.N.Y. Docket No. 10-CR-615 (NGG)
Bristol Woman Convicted of Defrauding Medicaid ProgramRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Phillip Coyne, Special Agent in Charge for the U.S. Department of Health and Human Services, Office of Inspector General, and Chief State’s Attorney Kevin T. Kane today announced that on May 26, a jury in Bridgeport convicted RONNETTE BROWN, 44, of Bristol, on 23 counts of health care fraud and one count of conspiracy to commit health care fraud. The trial before U.S. District Judge Victor A. Bolden began on May 22 and the jury returned a verdict of guilty on all counts of the indictment on Friday afternoon.
According to the evidence at trial, Brown owned and operated WeMPACT, LLC, a social services business with offices in Bristol and Torrington. Between August 2010 and April 2014, Brown billed Medicaid for psychotherapy services that were not performed. In addition to that scheme, Brown separately conspired with Beverly Coker and another unnamed individual to bill Medicaid for psychotherapy services that represented Coker had performed the services when, in fact, the services were provided by unlicensed individuals, or were not provided at all.
According to court documents and statements made in earlier court proceedings, Coker, a licensed clinical social worker, owned and operated New Beginnings Family Center, LLC, in Hartford. On April 8, 2016, Coker, of Windsor, waived her right to indictment and pleaded guilty to one count of health care fraud, admitting that between October 2010 and November 2011, she engaged in a scheme to defraud Medicaid by permitting Brown and another individual to bill Medicaid for psychotherapy services using Coker’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Coker kept 30 percent of the proceeds, and paid the remaining 70 percent to Brown and the other individual. As part of her plea, Coker admitted to defrauding Medicaid of approximately $214,555 through the scheme.
Judge Bolden scheduled sentencing for August 18, 2017, at which time Brown faces a maximum term of imprisonment of 10 years on each count of health care fraud, and a maximum term of imprisonment of five years on the conspiracy count. She has been released on a $100,000 bond since her arrest on May 23, 2016.
Coker awaits sentencing. Three other individuals were charged and convicted of health care fraud offenses stemming from this investigation.
“This conviction is the latest example of the successful efforts of the Connecticut Medicaid Fraud Working Group,” said Attorney Daly. “Through that group, federal and state law enforcement and representatives of state agencies combine our efforts to detect, investigate, and prosecute Medicaid fraud through criminal and civil prosecutions. In this particular case, federal agents worked alongside our partners from the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, and were supported by the State Attorney General’s Office and the Connecticut Departments of Health (DPH) and Social Services (DSS). This seamless coordination ensures that the Connecticut Medicaid program is protected from unscrupulous providers. We look forward to continuing the teamwork with our state and federal partners to ensure that every dollar spent by the Medicaid program goes to provide much-needed medical services to Medicaid clients.”
“Being a health care provider in the Medicaid program is a privilege, not a right,” said HHS-OIG Special Agent in Charge Coyne. “When Ronnette Brown conspired to enrich herself by billing the government for services never provided or provided by unqualified professionals, she violated the basic trust that taxpayers extend to healthcare professionals. Our agents continue to work with Medicaid Fraud Control Units to root out such fraud schemes, which undermine the financial health of government health care programs and the public’s trust in medical professionals.”
“This is yet another example of how much we can achieve when agencies at all levels of government work together in collaboration,” said Chief State’s Attorney Kane. “This conviction will hopefully put all health care providers on notice that we are committed at all levels of government to detecting, investigating and prosecuting fraud that steals scarce resources from the programs that serve people in need.”
This matter has been jointly investigated by the Office of the Inspector General of the U.S. Department of Health and Human Services and the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office, with assistance from the Connecticut Attorney General’s Office. U.S. Attorney Daly also thanked the Connecticut Department of Social Services for their role in identifying the fraudulent scheme and supporting the investigation and prosecution of the case.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
This matter is being prosecuted by Assistant U.S. Attorneys David J. Sheldon and Christopher W. Schmeisser.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Bernards Township Settles Federal Civil Suit, Agrees to Allow Islamic Society to Build MosqueRead the Press Release
NEWARK, N.J. – Bernards Township, New Jersey, has agreed to settle a federal civil lawsuit to resolve allegations that the township violated federal law when it denied zoning approval to allow the Islamic Society of Basking Ridge (ISBR) to build a mosque on property where zoning permitted houses of worship, U.S. Attorney William E. Fitzpatrick and Acting Assistant Attorney General Tom Wheeler of the Justice Department's Civil Rights Division announced today.
The settlement agreement also resolves allegations that at the time the ISBR’s application was pending, the township revised its zoning code to unreasonably limit any house of worship from building in the township. The settlement resolves a lawsuit the Justice Department filed in November 2016. A separate settlement resolving a similar lawsuit brought by the Islamic Society against the township has also been reached.
“Federal law requires towns to treat religious land use applications like any other land use application,” Acting U.S. Attorney Fitzpatrick said. “Bernards Township made decisions that treated the Islamic Society of Basking Ridge differently than other houses of worship. The settlement announced today corrects those decisions and ensures that members of this religious community have the same ability to practice their faith as all other religions.”
“Federal law protects people of all religious communities from discrimination and unlawful obstacles when they seek to build a place of worship,” Acting Assistant Attorney General Wheeler said. “Through this agreement, the Islamic Society of Basking Ridge and its members will be able to build a mosque and exercise the fundamental American right of freedom of worship.”
The United States’ complaint alleged that Bernards Township violated the Religious Land Use and Institutionalized Persons Act of 2000 (RLUIPA) when it discriminated against the Islamic Society based on its religion and the religion of its members. The complaint alleged that the township denied the application to build a mosque, applying standards and procedures to the Islamic Society that it had not applied to other religious and non-religious assemblies in the past; it imposed a substantial burden on the Islamic Society’s religious exercise; and it amended its zoning ordinance in a manner that imposes unreasonable limitations on all religious assemblies.
As part of the settlement, Bernards Township has agreed to permit the Islamic Society to construct a mosque on its property. The township has also agreed that its leaders and other township employees will undergo training on the requirements of RLUIPA. It has also agreed to publicize its non-discrimination policies and periodically report to the Justice Department on its compliance with the settlement agreement. The township has also agreed to amend its zoning ordinance to limit the zoning restrictions placed on houses of worship. In a separate settlement agreement, the township agreed to pay the Islamic Society $3.25 million to resolve its claims for damages and attorney’s fees caused by the denial of the mosque application.
The government is represented by Assistant U.S. Attorney Michael E. Campion, Chief of the U.S. Attorney’s Office’s Civil Rights Unit, Civil Division; Assistant U.S. Attorney Kelly Horan Florio, Civil Rights Unit, Civil Division; and Trial Attorney Beth Pepper, U.S. Department of Justice, Civil Rights Division, Housing and Civil Enforcement Section.
RLUIPA prohibits discrimination in land use and zoning decisions. People who believe they have been subjected to discrimination in land use or zoning decisions may contact the U.S. Attorney’s Office Civil Rights Hotline at (855) 281-3339 or the Civil Rights Division Housing and Civil Enforcement Section at (800) 896-7743.
BPD Cell Block Attendant Pleads Guilty to Violating the Civil Rights of an Individual in CustodyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.—Acting U.S. Attorney James P. Kennedy, Jr. announced today that Matthew Jaskula, 27, of Buffalo, NY, pleaded guilty to a one-count indictment previously filed against him. Specifically, Jaskula pled guilty to the crime of willfully depriving another of their constitutional rights under color of law resulting in bodily injury before U.S. District Lawrence J. Vilardo. The charge carries a maximum penalty of 10 years in prison and a $250,000 fine.
According to Assistant U.S. Attorney Joseph M. Guerra, who is handling the case, Jaskula worked as a Cell Block Attendant with the Buffalo Police Department since 2013. On May 19, 2016, the defendant was working as a Senior Cell Block Attendant.
On May 19, 2016, the victim was arrested by two Buffalo Police officers and transported to the cell block area of police headquarters. At approximately 10:00 p.m., the victim, whose hands were handcuffed behind his back, was taken into the fingerprint and mug shot room. The officers and the victim were met by Jaskula and another cell block attendant.
The victim, with his hands still handcuffed behind him, was instructed to face a wall. Within a few seconds, Jaskula grabbed the victim from behind and shoved the victim face-first into a door. The force of the defendant’s actions not only caused the victim to strike the door, it caused the door to fly open and the victim to fall to the ground. On the way to the ground, the victim’s face struck the ledge of a shelf, before striking the floor, face-first.
The defendant’s actions caused the victim to become limp and unresponsive. Jaskula thereafter grabbed the victim by his handcuffed arms and dragged him down a hallway for approximately 10-15 feet to an open cell. The victim began bleeding profusely as he was dragged by the defendant and taken into an open cell. As the victim was pulled into the room, the victim’s head hit the door frame, causing blood to pool on the floor. Once in the room, the victim’s facial injuries caused a large amount of blood to fall onto the seat and floor of the cell.
The victim was later taken by Jaskula and another and put into a restraint chair used for non-compliant prisoners. The defendant left the victim in this chair, without seeking medical treatment for the facial injuries, for approximately an hour and 45 minutes. The cell block area in Buffalo Police headquarters is equipped with a video recording system and Jaskula’s actions were captured on video.
Jaskula told two lieutenants on duty that a prisoner had a bloody nose, giving the impression that the victim had the bloody nose when he was brought in by the officers. After one of the lieutenants indicated the victim should go to the Erie County Medical Center, the defendant replied that the victim’s nose was not bleeding anymore and he was refusing medical treatment. At approximately 11:30 p.m., the victim complained of chest pains. The victim was taken to ECMC and treated for nasal bone fractures and a laceration between his nose and right eye.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for October 12, 2017, at 9:30 a.m. before Judge Vilardo.
Attorney General Jeff Sessions Has Selected James McHenry as the Acting Director of the Executive Office for Immigration ReviewRead the Press Release
WASHINGTON – Attorney General Jeff Sessions has selected James McHenry as the acting Director of the Executive Office for Immigration Review (EOIR).
“I am pleased James McHenry has agreed to lead the Executive Office for Immigration Review, and the Justice Department is fortunate to have him act as the agency’s director,” said Attorney General Sessions. “His experience will serve the department well as EOIR works to reduce the immigration court backlog and to ensure that the law is applied in a fair and efficient manner in immigration proceedings.”
Acting Director McHenry has previously served in the Executive Office for Immigration Review; he first joined the agency in 2003 through the Attorney General’s Honors Program and returned to the agency in 2016, when he was appointed as an administrative law judge (ALJ) for EOIR’s Office of the Chief Administrative Hearing Officer (OCAHO).
Earlier this year, McHenry served as a Deputy Associate Attorney General working on a variety of immigration-related litigation matters and overseeing multiple components reporting to the Office of the Associate Attorney General. From 2014 to 2016, he served as an ALJ for the Office of Disability Adjudication and Review in the Social Security Administration. Prior to that, he worked for the Office of the Principal Legal Advisor (OPLA), Immigration and Customs Enforcement (ICE), Department of Homeland Security (DHS) as an Assistant Chief Counsel and, later, as a Senior Attorney where he served as a lead attorney for national security, denaturalization, and gang cases, anti-human trafficking operations, and worksite enforcement matters. He also served a detail as a Special Assistant United States Attorney for the Criminal Division, U.S. Attorney’s Office, Northern District of Georgia.
Acting Director McHenry earned a Bachelor of Science from the Georgetown University School of Foreign Service, a Master of Arts in political science from the Vanderbilt University Graduate School, and a Juris Doctor from the Vanderbilt University Law School.
Acting U.S. Attorney Announces Agreement with the NY State Education Department to Change State Guidelines on Parental Involvement in Medication Adjustments at School for Children with DiabetesRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, announced today that the United States has resolved its investigation into complaints alleging that the New York State Education Department (the “NYSED”) violated Title II of the Americans with Disabilities Act of 1990 (the “ADA”), 42 U.S.C. §§ 12131-12134, and related regulations by refusing to permit parent and guardian involvement in the adjustment of a child’s diabetes medication, with the approval of the child’s doctor, during school or at school-sponsored events.
Acting U.S. Attorney Joon H. Kim said: “Parents of children with diabetes have a right to play a role in the treatment of their children while at school. We are pleased to have reached an agreement with the New York State Education Department that will help students with diabetes receive during school the same adjustments to their medication that they receive outside of school, as their doctors direct.”
This Office’s investigation found that, in September 2015, the NYSED issued Guidelines for Medication Management in Schools that caused schools to reject certain types of orders issued by physicians treating children with diabetes authorizing parents and guardians to be involved in the adjustment of their child’s diabetes medication administered by the school healthcare team. The rejected orders included model orders developed by national diabetes organizations such as the National Diabetes Education Project and the American Diabetes Association by which a physician could authorize a parent or guardian to direct a school healthcare professional to adjust, within limits, the dosage and timing of correction doses of insulin, insulin-to-carbohydrate ratios, and fixed insulin doses. As these model orders reflect, it is common for parents and guardians of children with diabetes to have particularized knowledge with respect to their child’s recent activities, food intake, reaction to medication, and the like, and, through training and experience, to develop expertise regarding the adjustment of the dosage and timing of their child’s diabetes medication, information that is essential to the provision of necessary medical care for children with diabetes at all times, including at school. The investigation found that the Guidelines were hindering the communication of this vital information and in certain instances preventing necessary adjustments to diabetes medication from occurring at school. This Office detailed its conclusions in a Letter of Findings dated January 18, 2017.
In response to the investigation, the NYSED agreed to amend the Guidelines. The NYSED has also agreed to provide a model form for a physician to use to authorize the involvement of the parents/guardians in adjustment decisions where appropriate. The final decision with respect to the dosage and timing of diabetes medication shall remain with the school nurse as a matter of the nurse’s exercise of professional judgment, which will include consideration of the information communicated by the parent or guardian.
Specifically, under the resolution, NYSED has agreed to take the following actions: (i) amend the provisions of the Guidelines that were identified by the investigation as causing concerns; (ii) include additional language in the Guidelines explaining the respective roles of the school nurse and the parents/guardians who have been authorized to recommend adjustments of their child’s diabetes medication within specified limits; and (iii) provide a link to a model form through which physicians can provide such authorization to the parent/guardian (provided that the student’s Diabetes Medical Management Plan also includes authorization of the school nurse to make adjustments within the same range(s) as a matter of the nurse’s professional judgment). These changes, which resolve the issues addressed in the Letter of Findings, are explained in more detail in the attachments to the Office’s resolution letter. An amended version of the Guidelines reflecting these changes appears on the NYSED website at the following address: http://www.p12.nysed.gov/sss/schoolhealth/schoolhealthservices/.
Mr. Kim also thanked NYSED for its cooperation. The case is being handled by the Office’s Civil Rights Unit. Assistant United States Attorney Michael J. Byars is in charge of the matter.
Monday 29 May 2017
Department of Justice Observes National Moment of Remembrance on Memorial DayRead the Press Release
On Memorial Day, our nation unites in remembrance of the men and women of the U. S. Armed Forces who gave their lives to defend our freedoms. We share our prayers and sympathies with their families and loved ones, recognizing with gratitude that when our nation called, these brave heroes answered with their lives.
The Attorney General, and personnel throughout the Department of Justice, will observe the National Moment of Remembrance on Memorial Day, May 29, at 3 p.m. The National Moment of Remembrance, which was established by Congress in 2000, encourages all American citizens, including federal agency personnel, to pause for one minute to remember the men and women who lost their lives fighting for our nation and its values of freedom and peace. Every day, the Department of Justice pays tribute to the servicemembers who made the ultimate sacrifice. Memorial Day provides a special opportunity to reflect on the magnitude of that sacrifice.
Those who have fallen in defense of our country have earned an honor that must be recognized by both our words and deeds. Through its Servicemembers and Veterans Initiative, the Department of Justice is working tirelessly to ensure that all members of our military receive the legal and constitutional protections that they have fought so hard – and so valiantly – to help secure. They deserve the best that we have to give, because they have given the best of themselves. This Memorial Day, please join us at the Department of Justice to, as Abraham Lincoln stated at Gettysburg, dedicate ourselves to “the great task remaining before us—that from these honored dead we take increased devotion to that cause for which they gave the last full measure of devotion.”