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7 July 2017
Attorney Sentenced for Fraud Conspiracy That Stole $1.2 Million from St. Luke'sRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Lake Lotawana, Mo., attorney was sentenced in federal court today for his role in a fraud conspiracy in which he and his former law partner stole more than $1.2 million from St. Luke’s Health System, a client of their former law firm.
Mark J. Schultz, 57, of Lake Lotawana, was sentenced by U.S. District Judge Beth Phillips to one year and one day in federal prison without parole. The court also ordered Schultz to pay $400,500 in restitution to St. Luke’s.
On Feb. 10, 2017, Schultz pleaded guilty to participating in a wire fraud and mail fraud conspiracy. His former law partner, Alan B. Gallas, 65, of Kansas City, Mo., also pleaded guilty in a separate but related case and was sentenced to one year and one day in federal prison without parole. The court also ordered Gallas to pay $1,224,264 in restitution to St. Luke’s.
Schultz and Gallas were attorneys and partners in the law firm of Gallas & Shultz in Kansas City, Mo., which specialized in collection work for corporations. Schultz and Gallas have each surrendered his license to practice law.
Gallas admitted that he engaged in a scheme from 2009 through July 2015 to defraud a client, St. Luke’s Health System, of monies collected by his law firm totaling $1,224,264. Schultz admitted that he participated in the conspiracy from January 2014 through July 2015.
Gallas was the attorney responsible for the St. Luke’s account at the law firm. After attempting to collect on patient accounts for a period of time, St. Luke’s would transfer its larger outstanding patient accounts to Gallas & Shultz for collection. As payments on patient accounts were received, the payments were logged into the case management system for the appropriate patient account. The monies were then deposited into the law firm’s trust account. On a periodic basis, often monthly, the firm would remit the patient payments collected to St. Luke’s.
Gallas admitted that he caused personnel at the law firm to withhold money from payments made to St. Luke’s by placing thousands of payments on “hold” status, then directing those funds be transferred from the trust account to the firm’s operating account. The pattern of not remitting some payments to St. Luke’s escalated significantly from 2012 to 2015. According to court documents, the firm withheld 601 payments totaling $211,391 in 2012. The firm withheld 699 payments totaling $266,696 in 2013. The firm withheld 625 payments totaling $227,892 in 2014. Through the month of July 2015, the firm withheld 625 payments totaling $216,845.
Schultz admitted that he agreed with Gallas and others to transfer funds from the trust account into the law firm’s operating account. According to court documents, Schultz was informed by his office manager in January 2014 that she was going to quit because she could no longer agree to move money out of the trust account. Schultz nevertheless continued to profit from the diversion of funds from the trust account until the discovery of the scheme in July 2015.
These cases were prosecuted by Assistant U.S. Attorney Paul S. Becker. They were investigated by the FBI.
6 July 2017
“BMB” Gang Member Charged with 2010 Murder of 15-Year-Old Boy Who Was Mistaken for Rival Gang MemberRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), Angel M. Melendez, the Special Agent-in-Charge of the New York Field Office of the U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (“HSI”), Ashan M. Benedict, the Special Agent-in-Charge of the New York Field Office of the Bureau of Alcohol, Tobacco, Firearms, and Explosives (“ATF”), and James J. Hunt, the Special Agent-in-Charge of the New York Field Office of the U.S. Drug Enforcement Administration (“DEA”), announced that DOMINICK SHERLAND, a/k/a “D-Nick,” was charged today in a Superseding Indictment with the murder of Jeffrey Delmore, who was stabbed to death on May 15, 2010, at the age of 15. SHERLAND, along with 62 others, was originally charged on April 27, 2016, with racketeering conspiracy, narcotics conspiracy, and firearms offenses in connection with his membership in the “Big Money Bosses” (“BMB”), a violent street gang that operated primarily on White Plains Road from 215th Street to 233rd Street in the Bronx.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Dominick Sherland mistook 15-year-old Jeffrey Delmore for a gang rival, and stabbed him to death in defense of gang turf. This brutal and senseless murder ended a young life. Thanks to the outstanding work of our law enforcement partners, we are one step closer to providing Jeffrey Delmore’s family with the justice they deserve.”
HSI SAC Angel Melendez said: “Dominick Sherland is already facing trial for a slew of charges including narcotics distribution and racketeering, and now he faces charges of murder for allegedly stabbing a 15-year-old boy to death as he pled for his life. The alleged heinous act of this individual certifies that our unrelenting efforts to crack down on gang activity and the ensuing violence are necessary, and HSI and its partners will not waiver in that resolve.”
ATF SAC Ashan M. Benedict said: “The members of BMB, including the defendant, terrorized the streets of the Northern Bronx, committing numerous wanton acts of violence. The alleged homicide of an innocent victim mistaken as a member of a rival gang highlights the depth of the defendant’s alleged depravity and the senselessness of the violence the defendant and his criminal associates allegedly brought to the streets. Today’s charges demonstrate that our investigation has not stopped, and that we will continue to hold these gang members accountable to ensure they face justice for all the crimes they are alleged to have committed.”
DEA SAC James J. Hunt said: “Drug trafficking and violent crime are synonymous with gang activity. It is not surprising that additional crimes were unearthed as a result of last year’s massive gang takedown targeting the 2Fly YGZ and the BMB. What are shocking and appalling are casualties of this gang war; including the murder of a teenage boy whose identity was mistaken.”
According to the Superseding Indictment[1] and other documents filed in the case, as well as public proceedings in this case:
BMB was a subset of the “Young Bosses,” or “YBz” street gang, which operates throughout New York City. Between 2007 and 2016, members and associates of BMB committed numerous acts of violence against rival gang members in the Bronx – including murders, attempted murders, and armed robberies – and sold crack cocaine and marijuana.
SHERLAND was a member of BMB. On May 15, 2010, SHERLAND and a group of other BMB members encountered a group of people in the vicinity of Gun Hill Road in the Bronx who the BMB members believed were members of the rival 2Fly YGz (“2Fly”) gang, which was based at the Eastchester Gardens public housing development. The BMB members mistook Delmore for a member of 2Fly. SHERLAND stabbed Delmore to death as Delmore pled for his life.
* * *
SHERLAND, 25, of the Bronx, New York, was arrested on April 27, 2016, and has been detained pending trial. In the Superseding Indictment, he is charged with murder in aid of racketeering, which carries a maximum sentence of life in prison; racketeering conspiracy, which carries a maximum sentence of life in prison; narcotics conspiracy, which carries a maximum sentence of life in prison and a mandatory minimum sentence of 10 years in prison; possessing a firearm during the narcotics conspiracy, which carries a maximum sentence of life in prison and a mandatory minimum of five years in prison, which must run consecutively to any other sentence imposed; and discharging a firearm during the racketeering conspiracy, which carries a maximum of sentence of life in prison and a mandatory minimum of 25 years in prison, which must run consecutively to any other sentence imposed. The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as the defendant’s sentence will be determined by the judge. SHERLAND is scheduled for trial on November 6, 2017, before United States District Judge Alison J. Nathan.
SHERLAND was arrested in this case as a result of a multi-year investigation by the Bronx Gang Squad of the NYPD, the HSI Violent Gang Unit, the DEA, and the Joint Firearms Task Force of ATF into gang violence in the Northern Bronx. On April 27, 2016, Indictment S2 15 Cr. 95 (AJN) was unsealed, charging 63 members and associates of BMB, including SHERLAND, with racketeering conspiracy, narcotics conspiracy, narcotics distribution, and firearms charges. To date, 49 of these defendants have pled guilty. Also on April 27, 2016, Indictment S1 16 Cr. 212 (LAK) was unsealed, charging 57 members of 2Fly with the same offenses. To date, 54 of these defendants have pled guilty.
Mr. Kim praised the outstanding work of the NYPD’s 49th Precinct Detective Squad, the NYPD’s Bronx Gang Squad, HSI, DEA, ATF, and the Department of Investigation, NYCHA Inspector General’s Office. He also thanked the Bronx County District Attorney’s Office for their ongoing support in this investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Rachel Maimin, Micah W.J. Smith, Hagan Scotten, Jessica Feinstein, and Drew Johnson-Skinner are in charge of the prosecution.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Would-Be Hartford Soccer Stadium Developer Guilty of Fraud and Money Laundering OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal jury in Bridgeport today found JAMES C. DUCKETT JR., 45, guilty of conspiracy, fraud and money laundering offenses stemming from a scheme involving the redevelopment of Hartford’s Dillon Stadium and a plan to bring a professional soccer team to the city. The trial before U.S. District Judge Stefan R. Underhill began on June 26.
According to the evidence at trial, in September 2014, the City of Hartford entered into a professional services agreement with Mitchell Anderson and his company, Premier Sports Management Group (“PSMG”), to secure a professional soccer team and to develop a new, 9,000 seat facility at the Dillon Stadium location. Under the terms of the agreement, PSMG was entitled to receive $775,000 for serving as the project manager for the $12 million plan. In February 2015, Anderson joined with DUCKETT who agreed to be the majority owner of the professional soccer team. DUCKETT and Anderson represented to various city officials that PSMG and DUCKETT’s Black Diamond Consulting Group had merged for purposes of completing the Dillon Stadium project and securing the professional soccer team. DUCKETT represented that he was a former professional football player in the NFL and that Black Diamond was involved in a casino project and sports-related projects in Las Vegas and Atlanta.
Beginning in approximately March 2015, Anderson submitted invoices to the city for reimbursement to PSMG subcontractors working on the project. However, rather than pay the total amounts owed to PSMG’s subcontractors, DUCKETT and Anderson directed more than $1 million that PSMG received from the city to themselves, PSMG, Black Diamond, and other entities not related to the Dillon Stadium project. DUCKETT and Anderson also secured invoices from subcontractors who had not performed work for the project, which DUCKETT and Anderson caused to be submitted to the city as if the work had been performed. DUCKETT and Anderson then illegally used the proceeds of the fraud in a series of bank transactions to pay individuals and companies for expenses unrelated to the Dillon Stadium.
The investigation revealed that DUCKETT used funds that the city provided to PSMG to purchase a Range Rover that cost approximately $120,000, to pay unrelated attorneys’ fees and a $20,000 “finder’s fee” to an individual, and for other personal expenses including luxury clothing and jewelry items.
The jury found DUCKETT guilty of one count of conspiracy to commit mail and wire fraud, three counts of wire fraud, and eight counts of conducting illegal monetary transactions. The jury found DUCKETT not guilty of one count of conducting illegal monetary transactions.
Each of the conspiracy and wire fraud counts carries a maximum term of imprisonment of 20 years, and each count of conducting illegal monetary transactions carries a maximum term of imprisonment of 10 years.
A sentencing date is not scheduled.
DUCKETT was arrested on June 23, 2016. He is currently released on bond, on home detention with electronic monitoring.
On February 6, 2017, Anderson pleaded guilty to one count of conspiracy to commit mail fraud and wire fraud, and one count of conducting illegal monetary transactions. He awaits sentencing. Anderson has agreed to make restitution in the total amount of $1,134,595.37 to the City of Hartford and two subcontractors of the Dillon Stadium project.
This matter has been investigated by the Connecticut Public Corruption Task Force, notably the Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation Division. The Task Force also includes members from the U.S. Department of Housing and Urban Development- Office of Inspector General, the U.S. Department of Health and Human Services – Office of Inspector General, U.S. Postal Inspection Service. The Hartford Police Department has also assisted the investigation.
The case is being prosecuted by Assistant U.S. Attorneys Sarah Karwan and Douglas Morabito.
Citizens are encouraged to report corruption to the Connecticut Public Corruption Task Force by calling 203-238-0505.
Williamsburg Man Arrested on False Statement ChargesRead the Press Release
NORFOLK, Va. – A man alleged to have made false statements during his application to join the U.S. Army and Air Force was arrested today on charges he hid information from recruiters about his foreign travel and prior arrest in the Kingdom of Jordan.
Shivam Patel, 27, of Williamsburg, was charged on June 30 with making materially false statements in a matter within the jurisdiction of the executive branch of the United States government. According to the criminal complaint unsealed today, Patel traveled to China in July 2016 and then flew to Jordan, where he was arrested, detained, and deported to the United States. In early September 2016, Patel is alleged to have told an undercover agent and a confidential source that he wanted to join a “Muslim army” and commit jihad.
After returning to the United States, Patel applied to join the U.S. Army and Air Force through the Officer Candidate Selection process beginning in December 2016. According to the complaint, when asked about his foreign travel as part of his applications, Patel did not disclose his travel to China or Jordan. Instead, Patel allegedly claimed that he had not traveled anywhere outside the United States in the past seven years, except for a family trip to India in 2011–2012.
Patel faces a maximum penalty of five years in prison if convicted. Actual sentences for federal crimes are typically less than the maximum penalties. A federal district court judge will determine any sentence after taking into account the U.S. Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement. Assistant U.S. Attorney Andrew Bosse is prosecuting the case.
A copy of this press release is located on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information is located on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 2:17-mj-354.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Watervliet Man Indicted on False Claim and Identity Theft ChargesRead the Press Release
ALBANY, NEW YORK – Bryant C. Hardnett, age 44, of Watervliet, New York, was arraigned yesterday on false claim and aggravated identity theft charges relating to his filing of fraudulent individual income tax returns.
The announcement was made by Acting United States Attorney Grant C. Jaquith and James D. Robnett, Special Agent in Charge of the New York Field Office of IRS-Criminal Investigation.
According to the indictment, from 2013 to 2016, Hardnett filed tax returns that falsely claimed dependents and self-employment income, causing the Treasury Department to issue tax refunds to which the taxpayers were not entitled. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
Hardnett was arraigned yesterday before United States Magistrate Judge Daniel J. Stewart, who set conditions for Hardnett’s release pending a trial before Senior United States District Judge Lawrence E. Kahn.
On each false claims charge, Hardnett faces up to 5 years in prison, up to 3 years of post-imprisonment supervised release, and a maximum $250,000 fine. On each aggravated identity theft charge, Hardnett faces a mandatory 2-year term of imprisonment. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by IRS-Criminal Investigation and prosecuted by Assistant U.S. Attorney Michael Barnett.
Virginia Tax Return Preparer Pleads Guilty to Filing False Tax Returns for ClientsRead the Press Release
A Danville, Virginia man pleaded guilty today to aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia.
According to documents filed with the court, Timothy Harris, 49, owned and operated TNA Tax Services and TNT Tax Services, which were located in Danville and Rocky Mount. Harris admitted that he used these businesses to prepare false tax returns for clients that claimed bogus business losses in order to seek refunds to which his clients were not entitled. After the Internal Revenue Service (IRS) revoked Harris’s Electronic Filing Identification Number (EFIN) in December 2012, he used another person’s EFIN to continue filing tax returns. Harris admitted that his fraudulent conduct caused a tax loss of more than $250,000.
Sentencing is scheduled for Oct. 24. Harris faces a statutory maximum sentence of three years in prison, a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Mountcastle commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael C. Boteler and William M. Montague of the Tax Division, who prosecuted the case.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Virginia Tax Return Preparer Pleads Guilty to Filing False Tax Returns for ClientsRead the Press Release
ROANOKE-A Danville, Virginia man pleaded guilty today to aiding in the preparation of a false tax return, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Rick A. Mountcastle for the Western District of Virginia.
According to documents filed with the court, Timothy Harris, 49, owned and operated TNA Tax Services and TNT Tax Services, which were located in Danville and Rocky Mount. Harris admitted that he used these businesses to prepare false tax returns for clients that claimed bogus business losses in order to seek refunds to which his clients were not entitled. After the Internal Revenue Service (IRS) revoked Harris’s Electronic Filing Identification Number (EFIN) in December 2012, he used another person’s EFIN to continue filing tax returns. Harris admitted that his fraudulent conduct caused a tax loss of more than $250,000.
Sentencing is scheduled for Oct. 24. Harris faces a statutory maximum sentence of three years in prison, a term of supervised release, restitution and monetary penalties.
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Mountcastle commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Michael C. Boteler and William M. Montague of the Tax Division, who prosecuted the case.
U.S. Attorney Announces $1.95 Million Settlement to Resolve Claims for Unpaid PostageRead the Press Release
DENVER -- Bob Troyer, Acting U.S. Attorney for the District of Colorado, today announced that AtLast Holdings, Inc. has paid $1,950,000 to settle allegations that the corporation and its parent company Newgistics, Inc. failed to pay proper postage to the United States Postal Service (USPS).
The settlement announced today resolves a long-running investigation into AtLast, a provider of mailing and logistics services. The investigation by the United States Postal Inspection Service determined that AtLast had underreported the size and weight of packages it shipped through the USPS. The United States contends that as a result of these misrepresentations, AtLast paid less in postage than was actually due to the Postal Service.
“The U.S. Postal Inspection Service did a fantastic job investigating this case,” said Acting U.S. Attorney Bob Troyer. “Never a great idea to try to trick those guys.”
“The U.S. Postal Inspection Service is committed to protecting the U.S. Postal Service, and will vigorously pursue those who attempt to circumvent paying the USPS the full price due for its products and services,” said Craig Goldberg, Inspector in Charge, U.S. Postal Inspection Service, Denver, Colorado. “The Postal Inspection Service appreciates the strong stance the United States Attorney’s Office has taken against those who seek to take advantage of the U.S. Postal Service.”
The claims settled by this agreement are allegations. In entering into this civil settlement, AtLast and Newgistics did not admit liability.
The United States Attorney’s Office thanks the United States Postal Inspection Service for the work that made this recovery possible. The United States was represented in this matter by Assistant United States Attorney Jasand Mock of the District of Colorado.
Two New York Men Get over 12 Years in Prison for Armed Robbery, Carjacking, and Violent KidnappingRead the Press Release
NEWARK, N.J. – Two Rockland County, New York, men were sentenced to prison today for their roles in the December 2015 robbery of a North Jersey bar and the violent carjacking and kidnapping that took place shortly afterwards, Acting U.S. Attorney William E. Fitzpatrick announced.
Guillermo Carrillo-Iraheta, 20, and Juan Chiliseo-Vega, 20, both of Suffern, New York, were sentenced to 150 and 168 months in prison, respectively. Both defendants previously pleaded guilty to separate informations charging them with conspiracy to commit Hobbs Act Robbery, carjacking, and kidnapping. U.S. District Judge Jose L. Linares imposed the sentences today in Newark federal court.
According to documents filed in this case and statements made in court:
On Dec. 25, 2015, Guillermo Carrillo-Iraheta, Chiliseo-Vega and others robbed a bar in Hawthorne, New Jersey, and subsequently fled with approximately $200 in cash.
Afterwards, in the early morning hours of Dec. 26, 2015, Guillermo Carrillo-Iraheta, Chiliseo-Vega, and others hailed a taxi in Paterson, New Jersey, and forcibly took the taxi from the driver. Guillermo Carrillo-Iraheta, Chiliseo-Vega and others forced the driver into the back of the vehicle and took over driving. They also caused seriously bodily injury to the driver by hitting him in the head with a beer bottle and slicing his throat with a knife before eventually leaving him on the side of the road in New York. The taxicab driver survived.
In addition to the prison terms, Judge Linares sentenced both defendants to five years of supervised release.
Wilbur Jonathan Barahona, 21, of Ridgewood, New Jersey, and Jostin Reyes, 21, of Waldwick, New Jersey, have also pleaded guilty to their roles in the bar robbery, carjacking and kidnapping. Balmore Carrillo-Iraheta, 20, of Suffern, and Oscar Avalos-Cortez, 23, of New City, New York, pleaded guilty to their roles in the bar robbery. All four defendants await sentencing.
Acting U.S. Attorney Fitzpatrick credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, investigators from the Bergen County Prosecutor’s Office, under the direction of Prosecutor Gurbir S. Grewal, and the Ridgewood and Hawthorne Police Departments with the investigation.
The government is represented by Assistant U.S. Attorneys Elaine K. Lou and Karen D. Stringer of the U.S. Attorney’s Office’s Criminal Division in Newark.
Defense counsel:
Guillermo Carrillo-Iraheta: Michele Ann Adubato Esq., Bayonne, New Jersey.
Chiliseo-Vega: Frank Arleo Esq., West Orange, New Jersey
Two Indicted on Attempted Bank Robbery, Murder, and Making False Statements to a Federal Agent Charges Related to Loomis Armored Car RobberyRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that DELTOINE SCOTT, age 24, and JEROME KIEFFER, age 24, both of New Orleans, were indicted today by a federal grand jury for charges of attempted bank robbery resulting in death, using a firearm during and in relation to a crime of violence that resulted in death, and making false statements to a federal agent.
According to the Superseding Indictment, SCOTT and KIEFFER attempted to take money belonging to Campus Federal Credit Union on May 31, 2017, using force, violence, and intimidation. The Superseding Indictment alleges that SCOTT and KIEFFER used firearms in committing the robbery and charges them with death of James McBride. If convicted of the attempt bank robbery, SCOTT and KIEFFER face a mandatory life sentence or death. The Superseding Indictment also charges SCOTT and KIEFFER with using a firearm during and in relation to the robbery, which carries a penalty of up to life in prison or death. Finally, the Superseding Indictment alleges that SCOTT, about a week after the robbery, lied to federal agents about having lost his phone and about his whereabouts on the day of the robbery. If convicted, SCOTT faces up to five years in prison on each of the false statement counts.
“Our fellow citizens deserve to be safe and to feel safe,” stated Acting U.S. Attorney Duane A. Evans. “We can achieve that goal only if law enforcement and the community continue to work together. The men and women of the U.S. Attorney’s Office for the Eastern District of Louisiana will make every effort to prosecute violent offenders to the fullest extent of the law. Special thanks to the men and women of the Federal Bureau of Investigation New Orleans Field Office and the New Orleans Police Department for their hard work and dedication in investigating this matter.”
“Today’s federal grand jury Superseding Indictment clearly demonstrates that the people of New Orleans, the U.S. Attorney’s Office and law enforcement will not tolerate violence in our city,” stated Jeffrey S. Sallet, Special Agent in Charge, New Orleans Field Division of the Federal Bureau of Investigation. “Through the dedicated efforts of the FBI New Orleans Violent Crime Task Force and the NOPD Homicide Section, the perpetrators of this heinous crime will be brought to justice.”
"We are proud of the collaborative effort our department's homicide unit and the FBI made to solve this case, to work with the U.S. Attorney's office to secure a Superseding Indictment, and to see justice done," stated New Orleans Police Superintendent Michael Harrison.
Acting U.S. Attorney Evans reiterated that the Superseding Indictment is merely an allegation and that the guilt of the defendants must be proven beyond a reasonable doubt.
Acting U.S. Attorney Evans praised the work of the Assistant United States Attorneys David Haller and Michael McMahon who are in charge of the prosecution.
Three Defendants Charged with 2008 Murder During Attempted Armed RobberyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced the unsealing of a federal indictment charging LUIGI JAQUEZ, KARILIE HERRERA, a/k/a “Choco,” a/k/a “Choco Black,” and SACHA SANTIAGO with the June 24, 2008, murder of Maximiliano Campusano, 33.
Acting U.S. Attorney Joon H. Kim said: “As alleged, Jaquez, Herrera, and Santiago planned the gunpoint robbery of Maximiliano Campusano, which ended in Campusano’s murder. Thanks to the outstanding work of the FBI, the defendants have been arrested and charged with this terrible crime. We will continue to work with our partners in law enforcement, no matter how much time passes, to hold murderers responsible for their crimes.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “More than nine years has passed since Mr. Campusano was murdered, but time doesn’t change the fact that those responsible deserve to be brought to justice. We want the community we serve to know we are committed to tracking down and following all the evidence to solve crimes, no matter how much time it takes.”
According to the Indictment[1]:
On June 24, 2008, JAQUEZ, HERRERA, and SANTIAGO planned to rob, and attempted to rob, Campusano, using a gun, in the vicinity of 20 Bogardus Place, New York, New York. During the attempt to carry out the armed robbery, one of the charged defendants’ co-conspirators shot and killed Campusano.
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JAQUEZ, 28, and SANTIAGO, 25, both of Manhattan, New York, were arrested this morning by the FBI. HERRERA, 26, also of Manhattan, New York, was taken into federal custody yesterday evening. The defendants will be presented later today before Chief United States Magistrate Judge Debra Freeman. The case has been assigned to United States District Judge Paul A. Crotty.
The sole count of the Indictment charges the defendants with use of a firearm in furtherance of a crime of violence resulting in the murder of Campusano, and aiding and abetting the same. JAQUEZ faces a maximum sentence of life in prison or death. HERRERA and SANTIAGO face a maximum sentence of life in prison. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Kim thanked the New York City Police Department’s 34th Precinct Detective Squad for its determined efforts in this investigation.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Sarah Krissoff, Hagan Scotten, and Douglas Zolkind are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment constitute only allegations, and every fact described should be treated as an allegation.
Third Circuit Vacates Child Abuse Sentences Appealed by GovernmentRead the Press Release
Defendants Will Be Resentenced at a Later Date
NEWARK, N.J. – The U.S. Court of Appeals for the Third Circuit today ruled that a former U.S. Army major and his wife, convicted for having endangered the welfare of their adopted children through a series of physically abusive acts, must be resentenced, Acting U.S. Attorney William E. Fitzpatrick announced.
Convicted by a jury in July 2015 on multiple counts of child endangerment, Carolyn Jackson, 39, had received only 24 months in prison while her husband, John E. Jackson, 42, formerly a major in the Army at the Picatinny Arsenal Installation in Morris County, New Jersey, had received only probation and 400 hours of community service. The government had appealed their sentences to the U.S. Court of Appeals for the Third Circuit.
Today, the Court of Appeals ruled that the District Court had committed several errors in the process of imposing those sentences. As a result, the Jacksons will be resentenced at a later date, which has yet to be decided.
The government was represented by Assistant U.S. Attorney John Romano of the U.S. Attorney’s Office Appeals Division in Newark.
Jackson Verdict Release
Jackson Sentencing Release
Texas Business Owner Sentenced to Prison for Not Paying Approximately $18 Million in Employment TaxesRead the Press Release
A Houston, Texas business owner was sentenced today to 36 months in prison for failing to pay over employment taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney Abe Martinez for the Southern District of Texas.
According to documents filed with the court, Richard Floyd Tatum Jr., 57, owned Associated Marine & Industrial Staffing Inc. (AMI), an industrial staffing company that provided temporary labor to businesses in Texas and other states. Tatum employed approximately 1,000 people to include internal employees, who worked for AMI, and external employees, who AMI assigned to work on-site at client locations. Tatum was responsible for collecting, accounting for and paying over to the Internal Revenue Service (IRS) the payroll taxes withheld from AMI’s employees’ wages. Tatum exercised significant control over AMI’s finances, entered into contracts on behalf of AMI, signed checks, to include payroll, and decided which creditors to pay. Tatum also signed and filed AMI’s employment tax returns.
From March 2008 through December 2009, Tatum filed false and delinquent employment tax returns for AMI, which did not report AMI’s external employees. In May 2013, Tatum filed delinquent returns for the quarters ending in March 2010 through December 2012, reporting AMI’s external employees but making no payments of the taxes owed. Tatum withheld from his employees approximately $12 million in payroll taxes from March 2008 through December 2012, but did not pay over any of this money to the IRS. Tatum also failed to pay $6 million of AMI’s required share of social security and Medicare taxes during the same quarters. Instead, he used the money for his personal benefit, including making payments on his ranch and traveling to Las Vegas, Hawaii and France. Tatum admitted that he caused a tax loss of more than $18 million.
In addition to the term of imprisonment imposed, Tatum was order to serve three years of supervised release and to pay restitution to the IRS in the amount of $18,298,604. Tatum pleaded guilty to one count of failing to pay over employment taxes in March.
“For years, Richard Tatum Jr. violated his legal duty, failing to pay more than $18 million in employment taxes,” said Acting Deputy Assistant Attorney General Goldberg. “He cheated his employees, the U.S, Treasury and his honest competitors who paid their taxes and sought to compete on a level playing field. Employment tax enforcement remains a top priority for the Tax Division, and Tatum’s prison sentence today sends a strong message that those who divert such payments for their personal benefit will be held accountable.”
“When Mr. Tatum decided not to pay employment taxes, he not only affected the revenue to the U.S. government, but also the system that ensures employees’ Medicare and Social Security benefits,” said Chief Don Fort of IRS Criminal Investigation (CI). “Today’s sentencing of Mr. Tatum again emphasizes that IRS-CI and the Department of Justice will be relentless and aggressive in our pursuit of those who attempt to defraud America’s tax system.”
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Martinez commended special agents of IRS Criminal Investigation, who conducted the investigation, and Trial Attorneys Grace Albinson and Mara Strier of the Tax Division, who prosecuted this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Six Defendants Charged in White Plains Federal Court with Narcotics Trafficking in Westchester CountyRead the Press Release
Joon H. Kim, the Acting United States Attorney for the Southern District of New York, James J. Hunt, Special Agent in Charge of the U.S. Drug Enforcement Administration’s New York Field Division (“DEA”), and Charles Gardner, the Commissioner of the City of Yonkers Police Department (“YPD”), announced today the unsealing of an indictment and a complaint charging six defendants with allegedly engaging in the distribution of heroin throughout the Southern District of New York. Five defendants were taken into federal custody today, and will be presented in White Plains federal court this afternoon before United States Magistrate Lisa M. Smith. JAMES ODELL WHITTED remains at large.
Acting U.S. Attorney Joon H. Kim said: “As alleged, these defendants contributed to the rising tide of heroin that is plaguing suburb and city alike. Thanks to the excellent work of the DEA and the Yonkers Police Department, we hope to stem that tide and protect our communities from this epidemic.”
DEA Special Agent in Charge James J. Hunt said: “Gangs are actively capitalizing on opioid addiction by pushing potent heroin onto our streets. In this case, heroin was allegedly being trafficked throughout Yonkers, Westchester and Newburgh communities, increasing the risks of potential overdoses caused by opioids. I applaud the men and women of the Westchester Task Force and the US Attorney’s Office, Southern District of New York for their diligence in this investigation and commitment to safeguarding public health.”
Yonkers Police Commissioner Charles Gardner said: “These arrests will reduce the availability of heroin in our community and help fight the opioid epidemic we are experiencing. I would like to specifically thank the US Attorney’s Office for the Southern District of New York and the US DEA Westchester Task Force for their support and tenacious efforts in this investigation.”
As alleged in the Indictment unsealed today in White Plains federal court[1]:
From at least in or about February 2017 up to and including in or about June 2017, in the Southern District of New York and elsewhere, CHRISTOPHER COLEMAN, a/k/a “Fox,” JONATHAN ACQUINO, a/k/a “Jonathan Aquino,” a/k/a “Jonathan Harvey-Acquino,” a/k/a “Gotti,” JAMES ODELL WHITTED, a/k/a “Odell,” a/k/a “O,” LEIBYS MERCEDES, a/k/a “Celly,” a/k/a “Sonny,” BRANDEN JONES, a/k/a “Branden Mima,” a/k/a “Marlo,” conspired to distribute 100 grams and more of heroin.
As alleged in the Complaint unsealed today in White Plains federal court[2]:
LISA HENDERSON and COLEMAN conspired to distribute heroin. Specifically, HENDERSON assisted COLEMAN in packaging the heroin for resale and allowed COLEMAN to store narcotics trafficking paraphernalia in HENDERSON’s apartment.
* * *
The defendants COLEMAN, ACQUINO, WHITTED, MERCEDES, and JONES each face a maximum term of 40 years in prison, and a mandatory minimum term of five years in prison.
The defendant LISA HENDERSON faces a maximum term of 20 years in prison.
A chart containing the names of the defendants who were arrested and charged today, and the charges and maximum penalties they face, is attached.
The statutory maximum sentences are prescribed by Congress and are provided here for information purposes only, as any sentencings of the defendants would be determined by the respective judges.
Mr. Kim praised the outstanding investigative work of the DEA’s Westchester Resident Office and the Narcotics Unit of the City of Yonkers Police Department. The DEA’s Westchester Resident Office comprises agents and officers of the DEA, Westchester Police Department, New Rochelle Police Department, Yonkers Police Department, Mount Vernon Police Department, White Plains Police Department, and Port Chester Police Department. Mr. Kim also thanked the United States Marshals Service and the United States Probation Office for their assistance in taking the defendants into custody.
These cases are being handled by the Office’s White Plains Division. Assistant United States Attorneys Celia V. Cohen and Samuel L. Raymond are in charge of the prosecutions.
The charges contained in the Indictment and the Complaint are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
CHARGE(S)
DEFENDANTS
MAXIMUM PENALTIES
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute 100 grams and more of heroin.)
CHRISTOPHER COLEMAN, a/k/a “Fox”
JONATHAN ACQUINO, a/k/a “Jonathan Aquino,” a/k/a “Jonathan Harvey-Acquino,” a/k/a “Gotti”
JAMES ODELL WHITTED, a/k/a “Odell,” a/k/a “O”
LEIBYS MERCEDES, a/k/a “Celly,” a/k/a “Sonny”
BRANDEN JONES, a/k/a “Branden Mima,” a/k/a “Marlo”
40 years in prison
Mandatory minimum: 5 years in prison
Narcotics conspiracy
(Conspiracy to distribute and possess with intent to distribute heroin.)
LISA HENDERSON
20 years in prison
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein constitute only allegations, and every fact described should be treated as an allegation.
[2] As the introductory phrase signifies, the entirety of the text of the Complaint and the description of the Complaint set forth herein constitute only allegations, and every fact described should be treated as an allegation.
Sissonville man pleads guilty to federal methamphetamine chargeRead the Press Release
CHARLESTON, W.Va. – A Sissonville man pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Richard Lee Gandy, Jr., 40, entered his guilty plea to possession with intent to distribute methamphetamine.
Gandy admitted that on September 12, 2015, officers responded to his residence and upon arrival, they found Gandy in his garage with approximately 50 grams of methamphetamine in plain view. Officers received consent to search the garage and found marijuana as well as items commonly used to distribute illegal drugs. Members of the Kanawha County Sheriff’s Department returned the following day and received consent to search the garage more thoroughly. Officers additionally obtained a search warrant for the surrounding outbuildings and property. During the execution of the search warrant and the consensual searches, law enforcement found a total of approximately 200 grams of methamphetamine, 11 marijuana plants, nearly 12 pounds of marijuana, digital scales, a room containing materials commonly used to grow marijuana indoors, precursor materials used to manufacture methamphetamine, and over $18,000 cash. Officers also recovered ATV’s, equipment, and tools that had previously been reported stolen from several different states. Gandy admitted that he intended to distribute the methamphetamine in and around Kanawha County.
Gandy faces up to 20 years in federal prison when he is sentenced on October 12, 2017.
The case against Gandy was investigated by the Kanawha County Sheriff’s Department. Assistant United States Attorney Timothy D. Boggess is in charge of the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case is being prosecuted 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 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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Santa Fe Woman Sentenced for Conviction on Attempted Armed Robbery ChargeRead the Press Release
ALBUQUERQUE – Sonya Padilla, 42, of Santa Fe, N.M., was sentenced today in federal court in Albuquerque, N.M., to a year and a day in prison followed by three years of supervised release for her conviction for attempting to rob a business engaged in interstate commerce.
Padilla and co-defendant Michael Crespin, 44, also of Santa Fe, were arrested in May 2014, on a criminal complaint charging them with robbing the First National Bank of Santa Fe located at 4995 Governor Miles Road in Santa Fe on May 5, 2014. According to the complaint, Crespin robbed the bank by brandishing a gun at bank tellers and demanding money. He left the bank with the money and was driven away by Padilla.
Crespin and Padilla were indicted on May 21, 2014, and charged with armed bank robbery. A superseding indictment was filed on May 28, 2015, and charged Crespin and Padilla with violating the Hobbs Act on April 28, 2014, in Santa Fe County by attempting to rob the Plaza de Centro America market, and with the armed robbery of the First National Bank of Santa Fe on May 5, 2014, in Santa Fe County.
Padilla pled guilty on March 7, 2016, to attempted interference with interstate commerce by robbery and violence and admitted that on April 28, 2014, she and Crespin attempted to rob the Plaza de Centro America market in Santa Fe.
On Sept. 4, 2015, Crespin pled guilty to armed bank robbery, and admitted that on May 5, 2014, he robbed the First National Bank of Santa Fe while armed with an airsoft pistol, which he waved around and pointed towards bank tellers while he demanded money. Crespin was sentenced on April 26, 2016, to 13 years in prison followed by three years of supervised release.
This case was investigated by the Santa Fe office of the FBI and the Santa Fe Police Department. Assistant U.S. Attorneys David M. Walsh and Norman Cairns prosecuted the case.
San Antonio Couple Sentenced to Federal Prison for Conspiring to Commit Wire Fraud and Identity TheftRead the Press Release
In San Antonio this afternoon, a federal judge sentenced both 38-year-old Jessica Rivas Alva and her husband, 40-year-old Eric Jon Alva, to six months in federal prison for defrauding undocumented immigrants and their family members out of money by falsely claiming to work on behalf of two San Antonio attorneys, announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden.
In addition to the prison terms, United States District Judge Xavier Rodriguez ordered that the defendants pay $3,000 restitution to their victims and be placed on supervised release for a period of three years after completing their 6-month prison terms.
On March 2, 2016, both defendants pleaded guilty to one count of conspiracy to commit wire fraud and aggravated identity theft. The charge to which the defendants pleaded guilty alleged that between March 2015 and May 2015, the couple conspired to collect legal fees from incarcerated undocumented immigrants and/or their families under false pretenses.
According to the charge, in April 2015, the Alvas faxed forged letters fraudulently using the name and state bar number of two San Antonio-based attorneys to enable Jessica Alva to gain access to two immigration detention facilities in Louisiana. While at the South Louisiana Correctional Center in Basile and the LaSalle Detention Facility in Jena, Jessica Alva met with detained immigrants and offered to have the attorneys provide legal services for a fee. The immigrants’ families were then instructed to deposit those fees into bank accounts that the Alvas controlled. Jessica Alva was not an attorney and was not actually working for either attorney at the time she made the fraudulent representations. Furthermore, at the time Jessica Alva entered the detention facilities, she was enjoined by a Texas state court from entering any immigration facility in the United States unless accompanied by an attorney for whom she worked.
The conspiracy charge to which the Alvas pleaded guilty also alleged that during telephonic immigration hearings before an immigration court, Eric Alva impersonated one of the San Antonio attorneys and claimed to represent the detained immigrant whose case was before the court.
Agents with HSI and Enforcement and Removal Operations with Immigration and Customs Enforcement investigated this case. We appreciate the cooperation of the Consumer Protection Division of the Texas Attorney General's Office during this investigation. Assistant United States Attorney Alan Buie prosecuted this case on behalf of the Government.
Ross County Man Sentenced to 120 Months in Prison for Dealing Heroin, Illegally Possessing Machine Guns and Other FirearmsRead the Press Release
COLUMBUS, Ohio – Ronald Allen Meadows, 46, of Chillicothe, Ohio was sentenced to 120 months in prison for illegally possessing firearms, including machine guns, and dealing heroin from his house.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, Trevor Velinor, Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Ross County Sheriff George W. Lavender and the U.S. 23 Pipeline Major Crimes Task Force announced the sentence handed down today by Chief U.S. District Judge Edmund A. Sargus Jr.
Undercover task force officers bought drugs at Meadows’ Wilson Run Road house in 2015 after receiving complaints about drug trafficking taking place there. Agents executed two search warrants at Meadows’ home in 2016, seized 40 firearms including two machine guns, and almost 90 grams of heroin. ATF agents and task force officers arrested Meadows in August 2016 following a grand jury indictment.
Meadows pleaded guilty on March 16, 2017 to three counts of possession of a firearm by a convicted felon, two counts of possession of a machine gun and one count of possession with intent to distribute heroin.
“There’s one less heroin dealer on the streets in Ross County today because people came forward and worked with law enforcement,” U.S. Attorney Glassman said. “The machine guns the agents seized also show that drugs and violence continue to be a deadly duo.” Glassman also commended the investigation by the U.S. 23 Pipeline Major Crimes Task Force and the ATF. Glassman also commended Assistant U.S. Attorney Timothy D. Prichard who represented the United States in this case.
Pittsburgh Man Admits Robbing 2 Western Pennsylvania PharmaciesRead the Press Release
PITTSBURGH - A resident of Pittsburgh, Pennsylvania, pleaded guilty in federal court to charges of conspiracy to commit robbery of a pharmacy, robbery of a pharmacy, brandishment of a firearm in relation to a crime of violence, and possession with the intent to distribute Schedule II controlled substances, Acting United States Attorney Soo C. Song announced today.
Stephan Edward Corrick, 66, pleaded guilty to six counts before Senior United States District Judge Donetta W. Ambrose.
In connection with the guilty plea, the court was advised that on March 11, 2016, Palmer's Pharmacy located in Russellton, (Allegheny County) Pennsylvania, was robbed by two individuals armed with firearms and wearing masks. The suspects stole approximately 10,000 dosage units of prescription drugs, including Oxycodone and Fentanyl, with an estimated street value of approximately $235,000. As a result of their comprehensive and extensive investigation, the Drug Enforcement Administration (DEA) and West Deer Police Department developed a general description of at least one suspect.
On April 28, 2016, Keystone Pharmacy located in New Alexandria Boro, (Westmoreland County) Pennsylvania, was robbed by two individuals wearing masks. One suspect had a gun and the other had pepper spray. The assailants placed employees on the ground and handcuffed them. Investigators determined that between 15,000 - 20,000 dosage units were stolen. Noting the similarities between both robberies, DEA then coordinated its investigation with that of the Pennsylvania State Police to identify and arrest the individuals in question. Agents determined that Corrick purchased the Kylo Ren Stars Wars mask, used in the Palmer’s Pharmacy robbery from a local Target Store. After locating and interviewing Corrick, agents secured a full confession. Immediately thereafter, the other suspect, Dana Shipley, was identified and arrested carrying a backpack containing a large amount of pills, money from the New Alexandria robbery and both masks used in the New Alexandria robbery. Shipley also had a .32 caliber firearm used in the commission of the crime concealed in his pocket. Corrick has an extensive criminal history and had recently been released from prison after serving time for armed robbery.
Judge Ambrose scheduled sentencing for, October 26, 2017. The law provides for a maximum total sentence of twenty years in prison, a fine of up to $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, Judge Ambrose ordered that the defendant remain detained.
Assistant United States Attorney Shanicka L. Kennedy is prosecuting this case on behalf of the government.
The Drug Enforcement Administration, the Pennsylvania State Police and the West Deer Township Police Department conducted the investigation leading to the prosecution of Corrick.
Ohio Man Pleads Guilty to Attempting to Provide Material Support to ISISRead the Press Release
Aaron Travis Daniels, 20, aka Harun Muhammad, aka Abu Yusef, of Columbus, Ohio, pleaded guilty to attempting to provide material support to the Islamic State of Iraq and al-Sham (ISIS), a designated foreign terrorist organization, in violation of Title 18, U.S. Code, Section 2339B.
Acting Assistant Attorney General for National Security Dana J. Boente, U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division, and agencies participating in the Southern Ohio Joint Terrorism Task Force (JTTF) made the announcement. The plea was entered before Chief U.S. District Judge Edmund A. Sargus Jr.
“Daniels admitted that he attempted to travel abroad to provide material support to ISIS,” said Acting Assistant Attorney General Boente. “Identifying, thwarting and holding accountable individuals who attempt to provide material support to foreign terrorist organizations is a top priority of the Department of Justice.”
“This case demonstrates how terrorist activities abroad can reach into our local communities,” U.S. Attorney Glassman said. “Our office and agencies in the JTTF will continue to cooperate as we work to protect our national security.”
JTTF agents arrested Daniels on Nov. 7, 2106, as he attempted to leave Columbus with the intent to join ISIS in Libya. A federal grand jury indicted him on Nov. 10, 2016. Daniels has been in custody since his arrest.
Daniels faces a maximum sentence of 20 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The Columbus JTTF is made up of officers and agents from the FBI, U.S. Marshals Service, Columbus Division of Police, Franklin County Sheriff’s Office, Ohio State Highway Patrol, The Ohio State University Police Department, the Ohio Investigative Unit, U.S. Immigrations and Customs Enforcement, the John Glenn International Airport Police Department, Westerville Police Department and Columbus Division of Fire.
This case is being prosecuted by Assistant U.S. Attorneys Jessica W. Knight and Jessica Kim, and Special Assistant U.S. Attorney Joseph Gibson of the Southern District of Ohio, and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.
Ohio Insurance Salesman Sentenced to Prison for Failure to File Income Tax Returns and Failure to Pay TaxesRead the Press Release
An insurance salesman and former resident of Parma, Ohio was sentenced to 37 months in prison today following his conviction in December 2016 for failing to file income tax returns and failing to pay taxes, announced Acting Deputy Assistant Attorney General Stuart M. Goldberg of the Justice Department’s Tax Division and Acting U.S. Attorney David A. Sierleja for the Northern District of Ohio.
According to documents and information provided to the court, John Christopher Raschella, 57, of Estero, Florida, failed to pay more than $1 million in income taxes, interest and penalties that he owed to the Internal Revenue Service (IRS) for 1995, 1996, and 1998 through 2012. During those years, Raschella sold insurance, and earned additional income working for other insurance salesmen.
Between 1989 and 2012, Raschella failed to timely file income tax returns with the IRS. For several years, Raschella filed delinquent returns, reporting that he owed taxes, but failed to make the required payments. For other years, the IRS assessed Raschella’s taxes and sent him letters notifying him of the amount he owed, but Raschella still did not pay.
Raschella used a series of nominee entities to prevent the IRS from collecting his unpaid taxes. For example, formed two companies, Resource One, Corporation and Legacy Foundation International and deposited his insurance commissions into bank accounts that he opened in their names. He assigned his insurance commissions to Resource One and as a result, the company reported to the IRS that the income had been paid to the company instead of to individually. The insurance company revoked the assignment after learning that had concealed from a county government agency the fact that Resource One was his company. Raschella also caused a phony levy release to be sent to the insurance company that purported to be issued by the IRS. In response, the insurance company substantially reduced the amount of ’s insurance commissions that it paid over to the IRS in response to the levy.
In addition to the term of imprisonment, Raschella was ordered to serve one year of supervised release and to pay restitution to the IRS in the amount of $573,157.13.
“For more than two decades, John Raschella tried to thwart the IRS’s ability to assess and collect the taxes he owed,” said Acting Deputy Assistant Attorney General Goldberg. “Everyone has a legal obligation to pay their fair share and today’s sentence makes clear that those who willfully violate this duty face significant consequences including prosecution and jail.”
“Failing to file or pay taxes due are abuses of the federal tax system that affect us all,” said Chief Don Fort of IRS Criminal Investigation (CI). “Today’s sentencing reaffirms that if you participate in these types of abusive tax schemes, you may go to jail. The American tax system is designed to provide vital government services to our people. It is not a pick-and-choose yearly decision as to whether you will obey the law and pay your owed taxes. IRS-CI and the Department of Justice will remain vigilant in ferreting out such schemes that cheat both the federal government and honest taxpayers.”
Acting Deputy Assistant Attorney General Goldberg and Acting U.S. Attorney Sierleja thanked special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Melissa S. Siskind and Jeffrey A. McLellan of the Tax Division, who prosecuted the case. They also thanked Assistant U.S. Attorney Robert J. Patton of the Northern District of Ohio, who provided substantial assistance in this prosecution.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.
Nurse Imposter Pleads Guilty to Health Care FraudRead the Press Release
VICTORIA, Texas – A 42-year-old former resident of Goliad has admitted to posing as a nurse, announced acting U.S. Attorney Abe Martinez. Leticia Gallarzo pleaded guilty to five counts of making false statements relating to health care today in federal court.
Gallarzo has no medical training, but obtained employment as a registered nurse at two hospitals and three nursing homes in five different Texas cities over a seven-month period. As each employer discovered the deception, Garza would leave the facility and immediately begin seeking work at a medical facility in another city.
At today’s hearing, Gallarzo admitted she had knowingly lied about being a registered nurse on five occasions in order to secure employment for which she was not qualified.
Senior U.S. District Judge John D. Rainey accepted the plea and set sentencing for Oct. 3, 2017. At that time, Gallarzo faces up to five years in federal prison and a possible $250,000 maximum fine. She will remain in custody pending that hearing.
The FBI and the Texas Attorney General’s Office - Medicaid Fraud Control Unit conducted the investigation with the assistance of police departments in Goliad and Victoria. Assistant U.S. Attorney Robert D. Thorpe Jr. is prosecuting the case.
North Olmsted man charged with selling misbranded drugsRead the Press Release
A North Olmsted man was charged in federal court with selling misbranded drugs, Acting U.S. Attorney David A. Sierleja said.
Khaled Farouk Elgayar, 50, received drugs that purported to treat erectile dysfunction and enhance sexual performance in men, including “African Superman,” “Hard Ten Days,” “Herb Viagra,” “libigrow,” “S.W.A.G” and “Triple PowerZEN,” according to the criminal information.
These products contained an undeclared drug ingredient, sildenafil, which is the active ingredient in FDA-approved prescription drugs used to treat erectile dysfunction. The labels of the products Elgayar sold failed to include the name and quantity of the drug ingredient, according to the information.
Undeclared drugs such as sildenafil may have serious potential side effects or may be harmful to consumers with certain pathological conditions. Additionally, undeclared drugs may interact dangerously with other prescription or non-prescription drugs the unwitting consumer might be taking. The labels for the products the defendant provided failed to adequately warn consumers of these contingencies, according to the information.
Elgayar received misbranded drugs and delivered or proffered delivery of those misbranded drugs between January and October 2016, according to the information.
“Disguising prescription drugs as harmless over-the-counter products can lead to serious consequences for unsuspecting buyers with dangerous underlying health conditions. It could also lead to dangerous interactions when combined with other drugs they may be taking,” said Special Agent in Charge Mark S. McCormack, FDA Office of Criminal Investigations, Metro Washington Field Office. “Our office will continue to pursue and bring to justice those who would endanger the public’s health in order to make a quick profit.”
If convicted, the court will determine defendant’s sentence after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The matter is being prosecuted by Assistant U.S. Attorneys Megan R. Miller and Michael L. Collyer following an investigation by the Food and Drug Administration.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Newtown Man Charged with Receipt and Posession of Child PornographyRead the Press Release
John Hammond, of Norristown, PA, was charged today by Indictment with receipt and possession of child pornography, announced Acting United States Attorney Louis D. Lappen.
The Indictment alleges that from on or about April 11, 2016 through on or about April 18, 2016, Hammond received child pornography over the Internet. The Indictment further alleges that on April 19, 2016, Hammond possessed a computer, disc, and external drives that contained child pornography.
If convicted. Hammond faces a possible sentence of 40 years’ incarceration with a mandatory 5-year term of imprisonment, up to a lifetime of supervised release, a $500,000 dollar fine, restitution, forfeiture, and a $10,000 special assessment.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
The case was investigated by the Department of Homeland Security and Montgomery County Detectives. It is being prosecuted by Assistant United States Attorney Sean P. McDonnell.
New Year’s Gunshot that Killed Child Fired by Man Illegally in U.S.Read the Press Release
HUNTSVILLE – The man whose celebratory New Year’s 2017 gunfire killed a five-year-old child in Athens, Ala., pleaded guilty today in federal court to illegally possessing the gun because he was in the United States illegally. Acting U.S. Attorney Robert O. Posey, Bureau of Alcohol, Tobacco, Firearms and Explosives Special Agent in Charge Steven L. Gerido and ICE Homeland Security Investigations Acting Assistant Special Agent in Charge James Hernandez announced the plea.
FIDEL RODRIGUEZ-CANCHOLA, 34, of Mexico, pled guilty before U.S. District Court Judge Abdul K. Kallon to one count of possessing a firearm by an illegal alien. His sentencing is scheduled Oct. 12.
According to Rodriguez-Canchola’s plea, he celebrated New Year’s in the early morning hours of Jan. 1 by firing a Harrington & Richardson 900 .22-caliber revolver into the air outside his Athens residence. One of the rounds he fired struck a fire-year-old who died shortly after.
When Limestone County Sheriff’s deputies found Rodriguez-Canchola a few hours later, he admitted to firing the weapon but “insisted that he had not seen the child until she fell,” according to his plea agreement.
Rodriguez-Canchola was a native and citizen of Mexico, unlawfully present in the United States at the time of the shooting, according to his plea.
The maximum penalty for possessing a firearm by a prohibited person is 10 years in prison and a $250,000 fine.
ATF, Immigration and Customs Enforcement HSI and the Limestone County Sheriff’s Office investigated the case, which Assistant U.S. Attorney Melissa K. Atwood is prosecuting.
###
New Hampshire Man Sentenced to Prison for Possession of Child PornographyRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that Kevin Gobin, 56, of Lempster, New Hampshire, was sentenced on July 6, 2017, in United States District Court in Rutland, Vermont, to serve 40 months in federal prison after his guilty plea to one count of possession of child pornography. U.S. District Judge Geoffrey W. Crawford also ordered Gobin to serve a 10-year period of supervised release and to pay a $100 special assessment.
According to court records and proceedings, in April 2014, the Federal Bureau of Investigation executed a warrant to search Gobin’s residence for evidence of child pornography. During the search, numerous computers and other digital media were seized. During a forensic examination of his seized media, the FBI found thousands of images and videos of child pornography. The FBI also found evidence that Gobin belonged to a website that catered to people who wished to trade in child pornography, and that Gobin directly traded child pornography with other offenders over the Internet.
Acting United States Attorney Eugenia A.P. Cowles commended the efforts of the FBI in the investigation and prosecution of Gobin. The prosecution of Gobin was handled by Assistant U.S. Attorney Barbara A. Masterson. Gobin was represented by Jason Sawyer.
Acting U.S. Attorney Cowles noted that this prosecution is part of the U.S. Department of Justice's Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
New Derry Woman Admits Guilt in Fraud Scheme Targeting Victoria’s SecretRead the Press Release
PITTSBURGH – A resident of New Derry, Pennsylvania, pleaded guilty in federal court to charges of mail fraud, Acting United States Attorney Soo C. Song announced today.
Charlene D. Moff waived indictment and pleaded guilty to two counts before United States District Judge Cathy Bissoon.
In connection with the guilty plea, the court was advised that from September 2013 to March 2016, Moff fraudulently ordered merchandise from Victoria’s Secret using her or her husband’s online account. After the items were delivered, she would call customer service and falsely represent one of the following: that she did not receive the shipment of merchandise, the shipment was missing certain items, or some of the merchandise was incorrect or damaged. She would then receive a credit to her account or a re-shipment of merchandise. The amount of loss to Victoria’s Secret exceeded $30,000.
Judge Bissoon scheduled sentencing for October 26, 2017 at 10 a.m. The law provides for a maximum total sentence of 40 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The United States Postal Inspection Service conducted the investigation that led to the prosecution of Moff.
Navajo Man from Arizona Pleads Guilty to Assaulting Federally Commissioned Tribal Officer in New MexicoRead the Press Release
ALBUQUERQUE – Michael Nakai, 33, an enrolled member of the Navajo Nation who resides in Red Rock, Ariz., pled guilty today in federal court in Albuquerque, N.M., to assaulting a federal officer.
Nakai was charged by criminal complaint in Oct. 2016, with assaulting a tribal police officer of the Navajo Nation Division of Public Safety who was commissioned as a Special Law Enforcement Officer by the BIA’s Office of Justice Services. According to the complaint, Nakai assaulted the officer by kicking the officer in the face following a traffic stop. Nakai subsequently was indicted on Nov. 15, 2016, and was charged with assaulting a federal officer on Oct. 9, 2016, in San Juan County, N.M.
During today’s proceedings, Nakai pled guilty to the indictment. In entering the guilty plea, Nakai admitted that on Oct. 9, 2016, he assaulted a federal officer by kicking and striking the officer in the head while the officer was arresting him for driving under the influence of alcohol.
At sentencing, Nakai faces a maximum penalty of 20 years in federal prison. Nakai remains in custody pending a sentencing hearing, which has yet to be scheduled.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
Mission Female Sentenced for Possession with Intent to Distribute MethamphetamineRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mission, South Dakota, female convicted of Possession with Intent to Distribute a Controlled Substance was sentenced on June 26, 2017, by U.S. District Judge Roberto A. Lange.
Yolanda Prue, age 32, was sentenced to a 12 month split sentence, with 3 months in custody and 6 months of home confinement and treatment, 3 years of supervised release, $1,000 fine, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Prue was indicted by a federal grand jury on December 14, 2016. She pled guilty on April 11, 2017.
The conviction stemmed from an incident on May 3, 2016, when a Rosebud Sioux Tribe officer initiated a traffic stop of the vehicle, but the vehicle did not come to a stop. It pulled over two different times but began driving again.
Once the vehicle finally stopped, a search of the vehicle was performed and a digital scale and several syringes were found. Prue admitted the scale was hers, and admitted to using the scale for meth. She also admitted she had meth in several baggies on her person. Prue admitted she packaged the baggies as ¼ gram each and was selling them.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Meghan N. Dilges prosecuted the case.
Prue was immediately turned over to the custody of the U.S. Marshals Service.
Mexican National Sentenced for Immigration OffenseRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CARLOS AGATON-VASQUEZ, age 25, a native of Mexico, was sentenced today after previously pleading guilty to a one-count indictment for illegal reentry of a removed alien.
U.S. District Court Judge Eldon E. Fallon sentenced AGATON-VAZQUEZ to time served (7 months), followed by one year of supervised release, and a $100 special assessment fee. AGATON-VASQUEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on January 3, 2017, AGATON-VASQUEZ was found in the United States after having been previously deported from the United States on April 4, 2013.
Acting U.S. Attorney Evans praised the work of Immigration and Customs Enforcement agents in investigating this matter. Assistant U.S. Attorney Jon Maestri was in charge of the prosecution.
Mexican Citizens Sentenced for Illegal Re-entry into United StatesRead the Press Release
ALBANY, NEW YORK – Two Mexican citizens arrested together in Saratoga Springs, New York, were sentenced today for illegally re-entering the United States.
Juan Martinez-Garcia, age 27, of Mexico, was sentenced to time served (38 days in jail). Jorge Reyes-Merino, age 27, of Mexico, was also sentenced to time served (38 days in jail).
The announcement was made by Acting United States Attorney Grant C. Jaquith and Thomas P. Brophy, Acting Director of the Buffalo Field Office of Immigration and Customs Enforcement (ICE), Enforcement and Removal Operations (ERO).
As part of his guilty plea, Martinez-Garcia admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed from the United States to Mexico on July 26, 2010. As part of his guilty plea, Reyes-Merino admitted that he is a citizen of Mexico, and that he illegally returned to the United States after he was removed from the United States to Mexico on November 9, 2011.
On May 30, 2017, ICE Officers arrested Martinez-Garcia and Reyes-Merino in Saratoga Springs.
Following their respective sentencings, Martinez-Garcia and Reyes-Merino were each placed into the custody of the Department of Homeland Security, for removal proceedings.
These cases were investigated by ICE-ERO and prosecuted by Assistant U.S. Attorney Edward P. Grogan.
Logan man pleads guilty to possession of stolen mailRead the Press Release
CHARLESTON, W.Va. – A Logan County man pleaded guilty today to possessing stolen mail, announced United States Attorney Carol Casto. Keith Lee Caudill, 25, of Mallory, faces up to five years in federal prison and a $250,000 fine when he is sentenced on October 5, 2017. Caudill has also has agreed to pay restitution as part of his plea agreement.
Caudill was a Highway Contract Route Driver with the United States Postal Service who distributed and collected mail along a rural postal route between Logan and Holden. Caudill admitted that on November 7, 2016, he was found in possession of 31 pieces of stolen mail that he had illegally opened and otherwise removed from the mail. The opened mail was recovered from a cooler in the front of his vehicle. Caudill admitted to agents of the United States Postal Inspection Service that he had stolen approximately 100 pieces of mail from along his route. He typically stole greeting cards, believing the cards were more likely to contain cash or gift cards. Caudill would keep the cash, attempt to redeem the gift cards, and destroy the greeting cards.
The United States Postal Inspection Service conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge Thomas E. Johnston is presided over the case.
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Las Vegas Man Sentenced to 12 Years in Prison for Murdering Drug Supplier During 2013 Drug DealRead the Press Release
LAS VEGAS, Nev. – A Las Vegas man was sentenced today to 144 months in prison in connection to a man’s death during a drug deal at a North Las Vegas apartment in November 2013, announced Acting U.S. Attorney Steven W. Myhre for the District of Nevada.
John Thomas, 25, pleaded guilty on March 1, 2016, to one count of conspiracy to possess a controlled substance with intent to distribute and one count of use of a firearm during and in relation to a drug trafficking crime resulting in death. United States District Judge James C. Mahan also sentenced him to five years of supervised release.
According to admissions in his plea agreement, on Nov. 30, 2013, Thomas and co-defendant Louis Matthews arrived at a North Las Vegas apartment to purchase 20 pounds of marijuana from the victim, Luciano Madrigal-Herrera. Also present at the apartment were Julio Nunez and Angel Juarez. Madrigal-Herrera showed some of the marijuana to Matthews for inspection, and then went back outside to retrieve the rest. Matthews also left the apartment, stating he was going to get his friend, Thomas, as well as money to purchase the marijuana. The three men returned to the apartment, and then Thomas and Matthews each produced handguns in an attempt to rob Madrigal-Herrera of the marijuana. They repeatedly shot him causing his death. Thomas and Matthews took the marijuana and attempted to flee with it.
Three co-defendants were also charged in the scheme. Louis Matthews, 35, was sentenced on March 20, 2017, to life in prison for drug and firearm crimes that resulted in the death. Julio Nunez, 28, of Las Vegas, pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute and one count of discharging a firearm during and in relation to a drug trafficking crime and was sentenced to 42 months in prison and five years of supervised release. Angel Juarez, 29, of North Las Vegas, pleaded guilty to misprision of a felony and was sentenced to time served with one year of supervised release.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Las Vegas Metropolitan Police Department, and the North Las Vegas Police Department. The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra M. Michael.
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Kansas Man Sentenced to 50 Years in Prison for Production of Child PornographyRead the Press Release
Ryan James Day, 32, of Ellis, Kansas, and formerly of Clarksville, Tenn., was sentenced on Monday, by United States District Court Judge Aleta Trauger, to 50 years in prison for production of child pornography, announced Jack Smith, Acting United States Attorney for the Middle District of Tennessee.
The investigation began in June 2015 when Day communicated with an undercover law enforcement officer who was posing online as someone interested in child pornography. During their online conversation, Day told the undercover detective that he was sexually active with a minor and sent pornographic photos of the victim to the detective. Day also told the detective that he wanted to have sex with a minor whom he believed to be the detective’s young child and that he was attempting to persuade yet another minor female to have sex with him.
The FBI and local authorities determined the location of the device from which the images were being sent and responded to Day’s home in Kansas within hours of his transmission of child pornography. An examination of Day’s phone and personal computer revealed hundreds of pornographic images of children, including the images of the victim that were sent to the detective.
Day was indicted on four counts of production of child pornography in December 2015 and pleaded guilty to all counts on February 22, 2017. According to the charging document and other court filings, Day began sexually abusing the victim in 2009, when he lived in Clarksville and the victim was approximately 5 years old. Over a period of several years, Day sexually abused the victim on numerous occasions and photographed the abuse. After moving to Kansas, Day distributed the images online in an effort to obtain images of other minors being sexually abused.
This case was investigated by the Federal Bureau of Investigation, the District of Columbia Metropolitan Police Department and the Ellis County, Kansas Sheriff’s Office and is being prosecuted by Assistant U.S. Attorneys Henry C. Leventis and Rascoe Dean.
KC Man Sentenced for Threatening Federal JudgesRead the Press Release
KANSAS CITY, Mo. – Tom Larson, Acting United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for mailing death threats to three federal judges.
Bruce DeWayne Jensen, 40, of Kansas City, was sentenced by U.S. District Judge Brian C. Wimes to seven years in federal prison without parole.
On March 20, 2017, Jensen pleaded guilty to three counts of mailing threatening communications. Jensen admitted that on Nov. 19, 2014, and again on Aug. 17, 2016, he mailed threats to three U.S. District Court judges in the Western District of Missouri. Jensen, who mailed the letters while he was incarcerated in the federal prison in Terre Haute, Ind., has several prior convictions for similar criminal conduct. Jensen threatened in his letters to kill the judges and their families.
This case was prosecuted by Assistant U.S. Attorney Justin G. Davids. It was investigated by the FBI.
Justice Department Resolves Allegations of Housing Discrimination Involving North Attleboro Apartment ComplexRead the Press Release
The Justice Department announced today that it has reached a settlement agreement with J & R Associates, the owner and operator of the Royal Park Apartments, a 224-unit multi-family housing complex in North Attleboro, Massachusetts. The settlement resolves allegations that J & R Associates discriminated against tenants of South Asian descent in violation of the Fair Housing Act, which prohibits housing discrimination on the basis of race and national origin.
Based on its investigation, the Department determined that J & R Associates discriminated against persons of South Asian descent in the renting of units at Royal Park Apartments by steering them to certain buildings in the eight-building complex over a period of at least five years, from at least 2009 through 2014. J & R Associates cooperated fully with the Department’s investigation, which revealed that the discriminatory conduct had ceased by about 2015. Under the terms of the agreement, J & R Associates will establish a settlement fund in the amount of $70,000 to compensate victims of the discriminatory practices. J & R Associates also has agreed to train any new employees and to abide by the Fair Housing Act going forward.
In a related matter resolved in 2015, J & R Associates agreed to make changes to its rental practices to resolve allegations that it had been steering families with children to certain buildings and units in violation of the Fair Housing Act. In compliance with the court-approved settlement in that case, United States v. J & R Associates, Civil Action No. 15-11748 (D. Mass.), which remains in effect today, J & R Associates has reformed its practices and trained its employees in order to provide housing opportunities to prospective tenants equally and without regard to their race or national origin, or to whether they have children.
“Housing discrimination on the basis of race and national origin is not acceptable and will not be tolerated,” said Acting Assistant Attorney General Tom Wheeler, of the Justice Department’s Civil Rights Division. “We appreciate J & R Associates’ cooperation with our investigation and agreement to remedy past discriminatory practices.”
“Ensuring fair housing decreases inequality and increases educational and economic opportunities,” said William D. Weinreb, Acting United States Attorney for the District of Massachusetts. “This office will continue to enforce civil rights and fight discrimination in Massachusetts.”
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected], or contact HUD at 1-800-669-9777.
Justice Department Reaches Settlement with Michigan Credit Union for Illegally Repossessing Servicemembers’ CarsRead the Press Release
The Justice Department announced today that COPOCO Community Credit Union, based in Bay City, Michigan, has agreed to a settlement to resolve allegations that it illegally repossessed four servicemembers’ vehicles. The department’s lawsuit, filed July 26, 2016, alleged that COPOCO violated the Servicemembers Civil Relief Act (SCRA) by repossessing cars owned by protected servicemembers without first obtaining the required court orders. Under the agreement, COPOCO must change its policies and compensate four servicemembers whose cars COPOCO unlawfully repossessed.
The department launched an investigation after it received a complaint in October 2015 from Alyssa Carriveau, the wife of U.S. Army Private First Class Christian Carriveau, alleging that COPOCO had repossessed their car, along with their two-year-old daughter’s car seat, out of their driveway in Lacey, Washington, near Joint Base Lewis-McChord. Alyssa Carriveau initially believed that the car had been stolen, but she subsequently learned that it had been repossessed. Private First Class Carriveau was away at military training at the time and Alyssa Carriveau was not able to get to work without the vehicle. The department’s subsequent investigation corroborated the Carriveaus’ complaint and revealed that COPOCO had no policies related to compliance with the SCRA. After filing the lawsuit, the United States learned of three additional repossessions COPOCO conducted that violated the SCRA.
“This sends a message to financial institutions, large and small, that they must live up to their obligations to our servicemembers,” said Acting Assistant Attorney General Thomas Wheeler. “They cannot use ignorance of the law as an excuse and must instead actively ensure that they comply with the law. The Justice Department is committed to vigorously protecting the rights of the men and women who bravely serve our country.”
“The U.S. Attorney’s Office in the Eastern District of Michigan is committed to safeguarding the financial and legal rights of our servicemembers and their families,” said Acting United States Attorney Daniel L. Lemisch. “Of the many sacrifices made by our military members while they are in service to our country, losing their cars to repossession should never be one of them.”
The SCRA protects servicemembers against certain civil proceedings that could affect their legal rights while they are in military service. It requires a court to review and approve any repossession if the servicemember took out the loan and made a payment before entering military service. The court may delay the repossession or require the lender to refund prior payments before repossessing. The court may also appoint an attorney to represent the servicemember, require the lender to post a bond with the court and issue any other orders it deems necessary to protect the servicemember. By failing to obtain court orders before repossessing motor vehicles owned by protected servicemembers, COPOCO prevented servicemembers from obtaining a court’s review of whether their repossessions should be delayed or adjusted to account for their military service.
The agreement requires COPOCO to provide $10,000 in compensation to each of the affected servicemembers, plus any lost equity in the vehicle with interest. The Carriveaus, who had their car returned to them the day after the repossession at the department’s request, will receive $7,500. COPOCO also must repair the credit of all affected servicemembers, pay a $5,000 civil penalty to the United States and determine, in the future, whether any vehicle it is planning to repossess is owned by an active duty servicemember. If so, COPOCO will not repossess the vehicle without first obtaining a court order or valid waiver of SCRA rights. The agreement also contains provisions ensuring that all eligible servicemembers will receive the benefit of the SCRA’s six percent interest rate cap on their auto loans.
The department’s enforcement of the SCRA and other fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2011, the division has provided over $450 million in monetary relief to over 117,000 servicemembers through its enforcement of the SCRA. The SCRA provides protections for active duty servicemembers in areas such as evictions, rental agreements, security deposits, prepaid rent, civil judicial proceedings, installment contracts, credit card interest rates, mortgage interest rates, mortgage foreclosures, automobile leases, life insurance, health insurance and income tax payments. For more information about the department’s SCRA enforcement, please visit www.servicemembers.gov.
Servicemembers and their dependents who believe that their rights under SCRA have been violated should contact the nearest Armed Forces Legal Assistance Program Office. Office locations may be found at legalassistance.law.af.mil/content/locator.php.
Jury Finds Milwaukee Woman Guilty of False Tax ReturnsRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on June 30, 2017, a jury found Trulunda Stenson (age: 35) of Milwaukee, Wisconsin, guilty following a trial before United States District Judge Pamela Pepper in federal court in Milwaukee, Wisconsin. The jury convicted Stenson on each of the following 34 counts charged in the indictment: (1) ten counts of filing false tax refund claims, in violation of Title 18, United States Code, Section 287; (2) eleven counts of wire fraud, in violation of Title 18, United States Code, Section 1343, and (3) eleven counts of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
As proven at trial, beginning in January 2011, Stenson pursued a scheme to file false income tax returns that claimed refund payments from the Internal Revenue Service (IRS). Stenson and others gathered individuals’ social security numbers and other personal information. Stenson then prepared federal income tax returns that fraudulently claimed wages and federal tax-withholding amounts from several employers, even though in many cases, those employers had not actually paid wages or withheld taxes for the individuals. Stenson submitted the returns electronically to the IRS, signing the returns for individuals, many of whom she had never met. Stenson filed over 80 fraudulent tax returns seeking more than $300,000 in tax refund payments. In addition, the jury also found Stenson guilty of filing fraudulent 2011 and 2012 income tax returns in her own name.
As a result of these convictions, Stenson faces a mandatory minimum penalty of two years in prison, with the maximum potential penalty of twenty years in prison, a maximum fine of $250,000, and three years of supervised release. A sentencing date has not been set.
This case resulted from an investigation conducted by the Internal Revenue Service, Criminal Investigation. The case was prosecuted by Assistant United States Attorneys Matthew Jacobs and Matthew Krueger.
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For Additional Information Contact:
Public Information Officer Dean Puschnig 414-297-1700
Jefferson County man convicted of firearms chargeRead the Press Release
MARTINSBURG, WEST VIRGINIA – A Charles Town, West Virginia man was convicted today of a firearms charge, Acting United States Attorney Betsy Steinfeld Jividen announced.
Terry Edwards, age 37, pled guilty to one count of “Unlawful Possession of a Firearm.” Edwards, having previously convicted of a felony in U.S. District Court for the Northern District of West Virginia, admitted to possessing two pistols and a rifle in March 2017 in Jefferson County.
Assistant U.S. Attorney Anna Z. Krasinski prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charles Town Police Department investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Inmate at USP Lee Sentenced for Assaulting Corrections OfficerRead the Press Release
Abingdon, VIRGINIA – A federal inmate at United States Penitentiary at Lee County faces additional federal prison time after being sentenced this afternoon for resisting and assaulting a corrections officer, Acting United States Attorney Rick A. Mountcastle announced.
Darren Wall, 24, was sentenced this afternoon to imprisonment for a term of 60 months. He also was ordered to pay 24,714.32 in restitution. Wall previously pled guilty to one count of forcibly assaulting and resisting an officer and employee of the United States while that officer was engaged in the performance of official duties and during the commission of such offense did inflict bodily injury.
On May 9, 2016, Wall, while an inmate at USP Lee, resisted and assaulted a corrections officer while the officer performed his official duties. That assault caused bodily injury to the officer. Wall was also found in possession of a shank, an improvised knifelike weapon at the time of the incident.
The investigation of the case was conducted by the Bristol, Virginia, office of the Federal Bureau of Investigation. Assistant United States Attorney AUSA Randy Ramseyer is prosecuting the case for the United States.
Indictment: California Man Had More Than 60 Pounds of FentanylRead the Press Release
TOPEKA, KAN. – A California man appeared in federal court today on charges he possessed more than 60 pounds of the powerful synthetic opioid fentanyl, U.S. Attorney Tom Beall said.
Carlos Fernando Fernandez-Gonzalez, 28, Yucaipa, Calif., is charged with one count of possession with intent to distribute fentanyl. The crime is alleged to have occurred May 25, 2017, when the Kansas Highway Patrol stopped him in Russell County, Kan.
If convicted he faces a penalty of not less than 10 years in federal prison and fine up to $10 million. The Drug Enforcement Administration and Kansas Highway Patrol investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
Find more information about fentanyl on the DEA’s website at https://www.dea.gov/druginfo/fentanyl.shtml .
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Indicted Baltimore City Police Officers Charged with Additional RobberiesRead the Press Release
July 6, 2017
FOR IMMEDIATE RELEASE Contact ELIZABETH MORSE
www.justice.gov/usao/md at (410) 209-4885
Baltimore, Maryland – A federal grand jury returned a superseding indictment charging three previously indicted Baltimore City Police Officers with additional robberies. The superseding indictment charges the defendants with racketeering conspiracy, racketeering, robbery, extortion, and possession of a firearm in furtherance of a crime of violence. The superseding indictment was unsealed today and charges the following defendants:
Sergeant Wayne Earl Jenkins, age 37, of Middle River, Maryland;
Detective Daniel Thomas Hersl, age 48, of Joppa, Maryland; and
Detective Marcus Roosevelt Taylor, age 30, of Glen Burnie, Maryland.
A federal grand jury also returned a separate indictment charging two additional defendants, who are not police officers but were posing as police officers, with robbing two Baltimore City residents and with brandishing a firearm during a crime of violence. The indictment alleges that the two named defendants committed the robbery with a Baltimore City police officer. The second indictment was unsealed today and charges the following defendants:
Thomas Robert Finnegan, age 38, of Easton, Pennsylvania; and
David Kendall Rahim, age 41, of Baltimore, Maryland.
Defendants Jenkins, Hersl, and Taylor had previously been ordered detained pending trial. Defendants Finnegan and Rahim will have their initial appearances in court today.
The superseding indictment and indictment were announced by Acting United States Attorney for the District of Maryland Stephen M. Schenning and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
SUPERSEDING INDICTMENT
The 6-count superseding indictment alleges that Jenkins, Hersl and Taylor engaged in 13 robberies, extortion and time and attendance fraud. According to the superseding indictment, beginning in 2011, the defendants stole money, property, and narcotics by detaining victims, entering residences, conducting traffic stops, and swearing out false search warrant affidavits.
For example, as charged in the superseding indictment, in spring 2015, Jenkins stole at least 20 pounds of high-quality marijuana and at least $20,000 from two individuals who were conducting a drug sale at Belvedere Towers in Baltimore City. Jenkins falsely told the buyer and seller that he was a Drug Enforcement Agency (DEA) agent, to conceal his identity, and that he was seizing the money and drugs and would make a decision about whether to charge them later. Jenkins then drove Taylor and a co-defendant to a wooded area off Northern Parkway and gave them $5,000 each from the stolen money. After the incident, Jenkins went to a strip club in Baltimore County where he robbed a stripper.
Similarly, as charged in the superseding indictment, in summer 2016 Hersl stole money from the car of an arrestee. Hersl drove one of his co-defendants to the parking lot of a local high school, which was near the incident, and gave him a portion of the stolen money. While Hersl and the co-defendant were splitting the stolen money, Jenkins broke into the arrestee’s storage unit and stole 2 kilograms of cocaine.
The superseding indictment alleges that in June 2016 Jenkins believed that a co-defendant owed him money, so Jenkins gave the co-defendant drugs and a firearm that had been seized in a law enforcement operation, and told him to sell them. The co-defendant, along with another co-defendant, sold the firearm to a drug dealer.
The superseding indictment also alleges that the defendants committed systemic time and attendance fraud, including claiming overtime when they were at home and on vacation.
According to the superseding indictment, between spring 2011 and October 2016, the defendants allegedly conducted 13 separate robberies, taking over $280,000 in US currency, more than 2 kilograms of cocaine, other narcotics, a 9mm handgun, a $4,000 wristwatch, and other property.
The superseding indictment alleges that the defendants obstructed law enforcement by alerting each other about potential investigations of their criminal conduct, and turning off their body cameras to avoid recording encounters with civilians.
ROBBERY INDICTMENT
Thomas Robert Finnegan and David Kendall Rahim were indicted on charges of conspiracy, robbery, and possession of a firearm during a crime of violence.
On June 27, 2014, police officers with the BPD’s Gun Trace Task Force, executed a search warrant on a store in the Brooklyn neighborhood of Baltimore City. During the search, one of the police officers asked whether there was any large amounts of money in the store. The storeowner indicated that she had $20,000 in cash in her pocketbook that she was intending to use to pay off a tax liability. At this point, members of GTTF did not make arrests, nor seize anything from the property. Later that day, a member of the GTTF informed Finnegan and Rahim about the money and they agreed to set up a robbery at the home of the store owner. Using a law enforcement database, the GTTF detective located the home address of the victims. The defendants surveilled the house, agreed to impersonate the police when conducting the home invasion, and were given tactical gear by the Detective. The GTTF detective remained outside in the vehicle so that he could intercept any police officers who responded to the home invasion by telling them he was a BPD officer. Finnegan and Rahim entered the residence and robbed the victims at gunpoint of the $20,000.
REARRAIGNMENTS
The following four Baltimore City Police, who were previously indicted, have rearraignments scheduled for the following dates:
Detective Momodu Bondeva Kenton Gondo, age 34, of Owings Mills, Maryland - October 12, 2017;
Detective Evodio Calles Hendrix, age 32, of Randallstown, Maryland - July 21, 2017;
Detective Jemell Lamar Rayam, age 36, of Owings Mills, Maryland - November 9, 2017; and
Detective Maurice Kilpatrick Ward, age 36, of Middle River, Maryland - July 24, 2017.
Defendant Gondo’s rearraignment has been scheduled in the RICO case and a separate drug trafficking conspiracy with non-BPD defendants.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
Acting United States Attorney Stephen M. Schenning commended the FBI for its work in the investigation. Mr. Schenning thanked Assistant U.S. Attorneys Leo J. Wise and Derek E. Hines, who are prosecuting these Organized Crime Drug Enforcement Task Force cases.
Illegal Guatemalan Pleads Guilty to Possession of a FirearmRead the Press Release
Acting U.S. Attorney Duane A. Evans, announced that JULIO SANTIAGO JUAN-MATEO, age 28, a citizen of Guatemala, pled guilty to a one-count Indictment for possession of a firearm by an illegal alien.
According to the court documents, on April 1, 2017, JUAN-MATEO was stopped by U.S. Fish and Wildlife Services agents while in possession of a Hi-Point Model C9 firearm, 9 mm, bearing serial number P1903457 in Bayou Sauvage National Wildlife Refuge in Chalmette. U.S. Fish and Wildlife Services agents contacted the Department of Homeland Security as they suspected JUAN-MATEO was an illegal alien in possession of a firearm.
JUAN-MATEO faces a maximum term of imprisonment of ten years, a fine of $250,000, three years supervised release after imprisonment, and a $100 special assessment. U.S. District Judge Eldon Fallon set sentencing for October 5, 2017.
Acting U.S. Attorney Evans praised the work of the Department of Homeland Security and U.S. Fish and Wildlife Service in investigating this matter.
Hospice to pay $2.4 Million to resolve False Claims Act AllegationsRead the Press Release
ATLANTA – Compassionate Care Hospice Group, Inc., (“CCH Group”) has agreed to pay $2.4 million to resolve allegations that CCH Group and its subsidiary Compassionate Care Hospice of Atlanta, LLC, (“CCH Atlanta”) submitted or caused the submission of false claims to Medicare and Medicaid by engaging in improper financial relationships with contracted physicians. CCH Group is a Florida corporation with its principal place of business in Parsippany, New Jersey, and subsidiaries and affiliates in numerous states.
“Kickbacks should never play a role in medical decision-making,” said U.S. Attorney John Horn. “When healthcare providers are paid for referrals, the costs of health services inevitably rise and ultimately are borne by taxpayers.”
“The False Claims Act settlement in this case should be a deterrent to those who would so selfishly circumvent our federal healthcare programs to their benefit,” said FBI Special Agent in Charge David J. LeValley. “Rest assured the FBI is committed to diligently investigating those who would defraud our federally funded healthcare programs, depriving those who truly depend on them.”
“It is paramount to our health care system that those seeking health care advice know that providers and treatments recommended to them are not influenced by illegal remuneration or arrangements,” said Special Agent in Charge Derrick L. Jackson, of the U.S. Department of Health and Human Services, Office of Inspector General. “The OIG is committed to working with our law enforcement partners to combat this sort of activity.”
“Our office’s Medicaid Fraud Control Unit will continue to work with our federal partners to go after any action that compromises the integrity of our health care systems,” said Georgia Attorney General Chris Carr. “This type of scheme obscures the proper relationship among those providing health care services to Medicaid members, and it diminishes the quality of health care options available to our citizens. We won’t stand for it.”
The government alleges that, between April 3, 2007 and April 29, 2011, CCH Group and CCH Atlanta paid illegal remuneration to five physicians in order to induce the providers to refer patients to CCH Atlanta for hospice services and certify individuals as eligible for hospice services. The government also alleges that CCH Atlanta and CCH Group submitted or caused the submission of claims to Medicare and Medicaid for services provided to the individuals who had been referred by the physicians because of the kickbacks. The illegal remuneration took the form of (1) payments to a medical director in exchange for referrals and (2) sham contracts with associate medical directors in exchange for referrals.
The settlement resolves allegations filed by Cathy Morris and Josie King, former CCH Atlanta employees, under the qui tam, or whistleblower, provisions of the False Claims Act, which authorizes private parties to sue for false claims on behalf of the United States and share in the recovery. The lawsuit was filed in the Northern District of Georgia and is captioned United States & State of Georgia ex rel. Morris & King v. Compassionate Care Hospice Group of Atlanta, LLC, et al., No. 1:10-cv-3450 (N.D. Ga.). Ms. Morris and Ms. King will receive a share of the settlement.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Department of Health & Human Services Office of Inspector General, the Federal Bureau of Investigation, and the Georgia State Attorney General’s Medicaid Fraud Control Unit.
The civil settlement was reached by Assistant U.S. Attorneys Lena Amanti and Neeli Ben-David and Georgia State Assistant Attorney General Sara Vann.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Hospice Company to Pay $2 Million to Resolve Alleged False Claims Related to Unnecessary Hospice CareRead the Press Release
NEWARK, N.J. – A hospice company in Bensalem, Pennsylvania, has agreed to pay to the United States $2 million to resolve allegations that it provided unnecessary hospice services, Acting U.S. Attorney William E. Fitzpatrick announced today.
Compassionate Care of Gwynedd Inc. is a hospice provider based in Bensalem and a subsidiary of Compassionate Care Hospice Group Inc., a Florida corporation with its principal place of business in Parsippany, New Jersey. The settlement announced today follows an investigation by the U.S. Attorney’s Office for the District of New Jersey and the Commercial Litigation Branch of the Justice Department’s Civil Division. The allegations arose from a whistle-blower suit filed under the False Claims Act.
The United States alleges that from Jan. 1, 2005, through Nov. 15, 2011, Compassionate Care of Gwynedd admitted patients who did not need hospice care and billed Medicare for these medically unnecessary services. The government alleges that the company admitted these patients by using a diagnosis of “debility” that was not medically justified.
The relators, or whistler-blowers, in the underlying qui tam will receive more than $350,000 as their statutory share of the recovery under the False Claims Act. The civil lawsuit was filed in the District of New Jersey and is captioned United States, et al., ex rel. Jane Doe and Mary Roe v. Compassionate Care Hospice, et al.
Acting U.S. Attorney Fitzpatrick credited special agents from the Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to the settlement.
The government is represented by Assistant U.S. Attorney Charles Graybow of the Health Care and Government Fraud Unit of the U.S. Attorney’s Office for the District of New Jersey and Trial Attorney Justin Draycott of the Department of Justice’s Civil Division. The Office of Inspector General and the Office of the General Counsel for the Centers for Medicare and Medicaid Services of the Department of Health and Human Services also participated in the investigation and settlement.
The U.S. Attorney’s Office for the District of New Jersey reorganized its health care practice in 2010 and created a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since that time, the office has recovered more than $1.36 billion in health care and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act, and other statutes.
The claims settled by this agreement are allegations only; there have been no admissions of liability.
Counsel for relators: Britton D. Monts Esq., Austin, Texas; Timothy J. McInnis Esq., New York
Counsel for defendant: Sean C. Cenawood Esq., New York
Honduran National Sentenced for Illegal ReentryRead the Press Release
Acting U.S. Attorney Duane A. Evans announced that CRISTIAN CESRE-PAZ, age 32, was sentenced today after previously pleading guilty to a one-count Indictment charging him with illegal reentry of a removed alien, in violation of Title 8, United States Code, Section 1326(a) & (b)(1).
U.S. District Judge Eldon E. Fallon sentenced CESRE-PAZ to time served, followed by a term of supervised release term of one year, and a special assessment of $100. CESRE-PAZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, CESRE-PAZ reentered the United States after previous deportation on December 27, 2006.
Acting U.S. Attorney Evans praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Haverhill Man Sentenced for Drug and Firearm OffensesRead the Press Release
BOSTON – A Haverhill man, with prior criminal convictions in New York, was sentenced today in federal court in Boston for drug and firearm offenses.
Gamal Jones, 37, was sentenced by U.S. District Court Judge Leo T. Sorokin to 90 months in prison and three years of supervised release. On April 7, 2017, Jones pleaded guilty to one count of being a felon in possession of a firearm and ammunition and three counts of possession with intent to distribute cocaine.
Jones was arrested on Jan. 14, 2016, following an investigation into cocaine distribution in Haverhill. Jones was found in possession of over 80 grams of crack cocaine, a Taurus .45 caliber handgun and a box of .45 caliber ammunition. Jones was previously convicted in federal court in Brooklyn, N.Y., for being a felon in possession of a firearm and has prior convictions for criminal possession of a controlled substance, criminal possession of a loaded firearm, and assault in the third degree.
Acting United States Attorney William D. Weinreb and Mickey D. Leadingham, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives made the announcement today. Assistant U.S. Attorneys Nicholas Soivilien and John T. McNeil of Weinreb’s Criminal Division prosecuted the case.
Grand Jury Indicts Westerville Man for Threatening CongressmanRead the Press Release
COLUMBUS, Ohio – A federal grand jury has charged E. Stanley Hoff, 68, of Westerville with one count of threatening to assault and murder a United States official, a crime punishable by up to ten years in prison.
Benjamin C. Glassman, United States Attorney for the Southern District of Ohio, and the United States Capitol Police announced the indictment returned today.
The indictment alleges that Hoff threatened to assault and murder U.S Representative Steve Stivers and a member of Stivers’ family.
Hoff was charged by a criminal complaint on June 21, 2017 and arrested. An affidavit filed in support of the complaint alleges that Hoff left a threatening voice mail on Rep. Stivers’ Hilliard office phone. Hoff is being held without bond.
U.S. Attorney Glassman commended the investigation of this case by the U.S. Capitol Police and Assistant United States Attorneys Kevin Kelley and Brian Martinez, who are prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Government Intervenes in Lawsuit Against Florida Compounding Pharmacy for Excessive Charges to TRICARERead the Press Release
Tampa– Acting U.S. Attorney W. Stephen Muldrow announces that the government has intervened in a lawsuit against a Florida compounding pharmacy owner, Renier Gobea (41, Tampa), and his company, RS Compounding LLC, located at 12617 Race Track Road (Tampa, FL), alleging that Gobea and RS Compounding billed TRICARE excessive prices for compounded prescriptions.
The lawsuit alleges that between January 1, 2012, and January 31, 2014, Gobea and RS Compounding charged TRICARE at least 2,000 percent more for drugs than it charged cash-paying customers, in violation of the False Claims Act. TRICARE, the health care program for uniformed service members and their families, prohibits pharmacies from charging TRICARE more than the general public. Unfortunately, Gobea and RS Compounding charged TRICARE vastly more than they charged cash-paying customers, in some cases over 10,000 percent more.
Gobea and RS Compounding’s actions are part of a larger trend of fraud against TRICARE involving compounded prescriptions. TRICARE’s costs for compounded drugs rose from $5 million in 2004 to $514 million in 2014 and $1.75 billion in fiscal year 2015. To date, the U.S. Attorney’s Office for the Middle District of Florida has diligently pursued fraud associated with compounding pharmacies, resulting in over $57 million in settlements.
This lawsuit was filed under the qui tam, or whistleblower, provisions of the False Claims Act, which permit private parties to sue on behalf of the government when they discover evidence that defendants have submitted false claims for government funds and to receive a share of any recovery. The False Claims Act also permits the government to intervene in such lawsuits, as it has done in this case. The case is captioned United States ex rel. McKenzie Stepe v. RS Compounding LLC, Renier Gobea, Case No. 8:13-cv-3150-T-33AEP (M.D. Fla.). The claims asserted by the government are allegations only, and there has been no determination of liability.
The government’s complaint in this matter illustrates the government’s emphasis on combating health care fraud. One of the most powerful tools in this effort is the False Claims Act. Tips from all sources about potential fraud, waste, abuse, and mismanagement can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
The investigation was conducted by TRICARE, the U.S. Department of Health and Human Services-Office of Inspector General, and the U.S. Attorney’s Office for the Middle District of Florida. It is being handled by Assistant U.S. Attorneys Shea M. Gibbons and Christopher Tuite.
Georgia Man Pleads Guilty to Cyber Crime That Cost Sedgwick County $566,000+Read the Press Release
WICHITA, KAN. - A Georgia man pleaded guilty Thursday to federal charges he was part of an e-mail spoofing scheme that cost Sedgwick County more than $566,000, U.S. Attorney Tom Beall said.
George S. James, 49, Brookhaven, Ga., pleaded guilty to one count of wire fraud.
In his plea, James admitted that on Oct. 7, 2016, Sedgwick County sent approximately $566,088 to his bank account at a Wells Fargo bank in Georgia. James transferred part of the money he received from Sedgwick County to a bank account in Shanghai, China, and part of the money to an account at Deutsche Bank in Bremen, Germany. James also spent some of the money.
In his plea, James denied that the fraud scheme was his idea. He said that on Sept. 23, 2016, he was contacted by a person identified in court records as A.H., who asked to deposit some money into James’ account at Wells Fargo. James said he knew A.H. was engaged in fraud, but James denied knowing that Sedgwick County was the victim.
In his plea, James said it was A.H. – or someone working with A.H. – who sent an email to Sedgwick County on Sept. 23, 2016, purporting to be from Cornejo and Sons, LLC, and requesting the county send future payments to a new account number at Wells Fargo. On Oct. 7, 2016, the county sent $566,088 to James’ account at Wells Fargo. The county learned later that Cornejo did not request the change of account and did not receive the payment.
Sentencing is set for Sept. 21. He faces a penalty of up to 20 years in federal prison and a fine up to $250,000.
Beall commended the FBI, the Sedgwick County Sheriff’s Office, the Wichita Police Department and Assistant U.S. Attorney Alan Metzger for their work on the case.