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Wednesday 1 March 2017
Edinburg Couple Convicted in Sex Trafficking of Minors ConspiracyRead the Press Release
McALLEN, Texas – An Edinburg couple has been convicted for their roles in a sex trafficking of minors conspiracy in which two minor females engaged in commercial sex acts, announced U.S. Attorney Kenneth Magidson.
Abelardo Gomez, 37, and his girlfriend Cerena Ortiz, 25, pleaded guilty today to conspiring to commit sex trafficking of minors.
On March 25, 2016, Gomez drove to Louisiana to pick up two minor females, ages 14 and 15, and transported them back to a residence in Edinburg he shared with Ortiz. According to admissions made in connection with their guilty pleas, Gomez and Ortiz took revealing photographs of the minor females posing in a lascivious manner. The photos were then used to create advertisements on backpage.com promoting the prostitution of the minors.
Gomez and Ortiz admitted that during the two-week-period the females resided with them, the minors engaged in commercial sex acts with several adult males in the Edinburg residence, in motel rooms and in a vehicle belonging to Gomez. Eventually, on April 7, 2016, Gomez and Ortiz abandoned the minors at a local convenience store. The girls called 911 and reported the incident to local authorities.
U.S. District Judge Randy Crane accepted the pleas today and has set sentencing for May 16, 2017. At that time, Gomez and Ortiz face up to life in federal prison.
The FBI conducted the investigation along with the Edinburg Police Department.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Dozens Arrested in Massive Gun and Drug Sting OperationRead the Press Release
NORFOLK, Va. – Over 150 law enforcement agents and officers executed a major takedown today, arresting dozens of individuals for their respective roles in selling drugs and guns in Norfolk. Twelve federal defendants are in custody for firearms and drug charges, while more than a dozen others were arrested on state charges.
“This historic operation represents our commitment to making the streets of Norfolk as safe as we can,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Illegal firearms are the principal tools employed in the deadly cycles of turf battles and gang conflicts that deprive our neighborhoods and families of the peace and security that we treasure as Americans. The actions taken today reflect the coordinated, skilled and brave work of law enforcement. They are to be applauded. But they should also remind each of us that a peaceful community can only be realized when citizens share in the serious work of upholding the common good and respecting the rule of law.”
The Bureau of Alcohol, Tobacco, and Firearms (ATF) began Operation Riptide in the Fall of 2016, and in collaboration with the Norfolk Police Department, Virginia State Police, and prosecutors from the U.S. Attorney’s Office and the Virginia Attorney General’s Office, identified more than 30 individuals throughout Hampton Roads who were illegally selling firearms, heroin, and or other narcotics. Operation Riptide resulted in the recovery of over 50 firearms (including at least 3 assault rifles, 2 sawed off shotguns, and 47 hand guns, 18 of which had obliterated serial numbers or were stolen), over 170 grams of heroin, 65 grams of powder cocaine, 290 grams of crack cocaine, and a bullet proof vest. Ten of the 12 federal defendants are previously convicted felons, while seven are allegedly affiliated with the United Blood Nation gang.
“Deadly heroin overdoses and the recent spike in gun violence remain serious concerns in Hampton Roads,” said Attorney General Mark Herring. “This kind of unified, coordinated response to emerging public safety threats is exactly why I invested OAG resources in the Hampton Roads region. Because of hard work and collaboration by local, state, and federal partners, dozens of dangerous individuals are off the streets today.”
"Today's action was a collaborative effort between ATF and officers of the Virginia State Police, Norfolk PD, Virginia Beach and Chesapeake PD, the Norfolk Sheriff’s Office, and the Chesapeake Sheriff’s Office,” said Michael B. Boxler, Special Agent in Charge of the ATF’s Washington Field Division. The ATF actively partners with its law enforcement colleagues in the Hampton Roads area and targets those who commit violent crimes and illegally possess firearms.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Mark R. Herring, Attorney General of Virginia; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Gregory D. Underwood, Commonwealth’s Attorney for the City of Norfolk; and Larry Boone, Chief of Norfolk Police, made the announcement after the federal arrests were made and the indictments were unsealed.
This case was investigated by the ATF’s Norfolk Field Office, the Norfolk Police Department, and the Virginia State Police, with the assistance of the U.S. Marshals, Virginia Beach Police Department, the Chesapeake Police Department, the Norfolk Sheriff’s Office and the Chesapeake Sheriff’s Office. Attorneys from the Virginia Attorney General’s Major Crimes and Emerging Threats Unit, John F. Butler and James F. Entas, are prosecuting these cases with the assistance of Norfolk Assistant Commonwealth Attorney Catherine Paxson, and Assistant U.S. Attorneys Andrew C. Bosse, Kevin M. Comstock, Joseph E. DePadilla, Kevin Hudson, William B. Jackson, William D. Muhr, and Daniel T. Young.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case Nos. 2:17-cr-21, 22, 24, 25, 26, 27, 32, 34, 35, 36, 37.
Below is table which lists the name, age, hometown, and respective charge(s) each defendant faces.
Name, AKA
Age, Hometown
Charge(s)
Leonard Lee Brickhouse,
aka “Leo Brixx”
24, Norfolk
Felon in Possession of a Firearm; Distribution of a Controlled Substance; Possession of Firearm in Furtherance of a Drug Trafficking Crime
Joseph Maurice Dobey,
aka “Joe”
38, Norfolk
Distribution of a Controlled Substance; Felon in Possession of a Firearm; Possession of Firearm in Furtherance of a Drug Trafficking Crime
Jason Gilliard,
aka “Hoodro Wilson”
32, Virginia Beach
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin; Distribution of Heroin; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Adrean Lemont Hall,
aka “Ace”
24, Virginia Beach
Felon in Possession of a Firearm
Maurice Owen Johnson,
aka “Dink”
28, Norfolk
Felon in Possession of a Firearm; Distribution of Cocaine; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
Lamare Pierre Jordan,
aka “L”
30, Norfolk
Conspiracy to Manufacture, Distribute and Possess with Intent to Distribute Heroin; Distribution of Heroin; Possession of a Firearm in Furtherance of a Drug Trafficking Crime
James Lamb, 28
aka “Murdok”
28, Chesapeake
Felon in Possession of a Firearm; Possession of a Firearm with Obliterated Serial Number
James Andre Martin,
aka “Big Buff”
44, Norfolk
Distribution of a Controlled Substance; Felon in Possession of a Firearm
Darryl Moore,
aka “Little Darryl”
28, Norfolk
Felon in Possession of a Firearm
Kejuan Dante Perry,
aka “KP”
25, Chesapeake
Convicted Felon in Possession of a Firearm; Distribution of Cocaine; Possession of Firearms in Furtherance of a Drug Trafficking Crime
Keone Devon Perry, 23
23, Chesapeake
Transfer of Firearm to Prohibited Person
Carl Lee Walton, 22
aka “CJ”
22, Virginia Beach
Felon in Possession of a Firearm
Dark Web Defendant SentencedRead the Press Release
PHOENIX – Today, George Cotrel, 23, of London, United Kingdom, was sentenced by U.S. District Judge Diane J. Humetewa to eight months’ imprisonment, with credit for time served dating back to his arrest on July 22, 2016. Judge Humetewa also imposed restitution in the amount of $30,000. Cotrel had previously pleaded guilty to one count of wire fraud.
“Our office is dedicated to prosecuting illegal activity wherever it occurs, including on the ‘dark web,’ which attempts to provide a platform for concealing criminal activity from law enforcement,” stated Acting U.S. Attorney Elizabeth A. Strange. “We commend the IRS-CI agents for uncovering Cotrel’s efforts to commit wire fraud.”
“IRS Special Agents are experts in conducting complex financial investigations including those now being committed on the ‘dark web’ with virtual currency,” stated IRS-Criminal Investigation Special Agent in Charge Ismael Nevarez Jr.
From March 2014 to September 2014, Cotrel participated in a scheme to advertise money laundering services on a TOR network black-market website. (TOR is an acronym for “The Onion Router,” which is a mechanism to anonymize internet traffic. TOR also enables access to certain “hidden services” websites accessible only through the TOR network.) Beginning in March 2014, Cotrel communicated online with undercover agents posing as criminals seeking to launder proceeds of criminal activity, and he subsequently met with the agents in person in April 2014 in Las Vegas, Nev., to discuss a specific transaction.
The investigation in this case was conducted by the Internal Revenue Service - Criminal Investigation. The prosecution was handled by James R. Knapp and Gary M. Restaino, Assistant U.S. Attorneys, District of Arizona, Phoenix.
CASE NUMBER: CR-16-879-PHX-DJH
RELEASE NUMBER: 2017-020_Cotrel
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Dallas Woman Sentenced in East Texas Bank Robbery & CarjackingRead the Press Release
TYLER, Texas – A 24-year-old Dallas woman has been sentenced to federal prison for her role in a series of violent crimes in the Eastern District of Texas, announced Acting U.S. Attorney Brit Featherston today.
Chanel Collins pleaded guilty on Apr. 8, 2016 to aiding in the commission of a car-jacking and bank robbery and was sentenced to 36 months in federal prison by U.S. Appellate Court Judge Catherine Haynes on Feb. 27, 2017.
According to information presented in court, on Mar. 13, 2015, Collins drove LaQuaylan Patterson from Wood County, Texas, to an apartment complex in Tyler, Texas, so that he could commit an armed carjacking. Once they arrived at the complex, Patterson got out of Collins’ car, armed with a semiautomatic pistol, and told Collins to wait for his signal to her cell phone. Patterson then approach a woman, who was visiting her mother at the complex, brandished his pistol, and demanded the woman’s car keys. The woman surrendered the keys and Patterson got into her car and drove away. Patterson signaled Collins and she also departed the complex in her car. Collins and Patterson then drove the vehicles back to Wood County.
Later that day, Patterson used the stolen car to commit the second armed bank robbery. Collins drove her vehicle to a car wash in Big Sandy, Texas, and waited for Patterson as he robbed the 1st National Bank of Gilmer, located in Big Sandy. Patterson drove the stolen vehicle to the bank, brandished a pistol, climbed behind the teller counter, and demanded money from the tellers. The tellers stood aside as Patterson removed $29,734.00 from two cash drawers and put the money in a bag. Patterson then fled the bank with the cash and drove away in the stolen vehicle to meet Collins at the carwash. Once there, Patterson abandoned the stolen vehicle and fled with Collins in her vehicle. Collins and Patterson were indicted by a federal grand jury on June 17, 2015.
This case was investigated by the Federal Bureau of Investigation, Texas Department of Public Safety - Texas Rangers, Tyler Police Department, Big Sandy Police Department, and Lancaster Police Department, and prosecuted by Assistant U.S. Attorney Jim Noble.
Cleveland man indicted for selling heroin that resulted in two overdoses in WoosterRead the Press Release
A Cleveland man was indicted in federal court on charges that he sold heroin that caused at least two overdoses in Wooster, law enforcement officials said.
Demetrius L. Frizzell, 30, was indicted on six counts: two counts of distribution of heroin, one count of possession with intent to distribute heroin, one count of obstruction of justice and two counts of witness tampering. The heroin distribution charges come with a sentencing enhancement for selling heroin that caused serious bodily injury to individuals on or about Oct. 29 and Nov. 3, 2016.
If convicted on those counts, the sentences could carry a mandatory minimum penalty of 20 years in prison.
Wooster police learned about a heroin overdose victim who on Nov. 3 was brought to an emergency room unresponsive and appeared to be deceased. He was revived after emergency-room staff administered 12 doses of Narcan. Investigators traced the sale of heroin to Frizzell, according to court documents.
Frizzell also sold heroin on Oct. 29 that resulted in an overdose, according to court documents.
Frizzell, while in custody, called overdose victims and instructed them to change their statements to police, according to court documents.
“Heroin has caused an unprecedented wave of death, pain and destruction in Ohio,” U.S. Attorney Carole S. Rendon said. “No corner of the state is immune. Only though aggressive law enforcement -- combined with education and prevention efforts, changes in prescribing practices and making treatment available to those who want help -- can we turn the tide on the opioid epidemic.”
DEA Special Agent in Charge Timothy Plancon stated: “Overdoses and overdose deaths related to heroin have become an epidemic across the country and Ohio has been hit particularly hard by this problem. Identifying and bringing to justice those individuals that distribute illegal drugs that result in an overdose, is one of DEA’s top priorities.”
MEDWAY Director Donald Hall said: “The MEDWAY Drug Enforcement Agency will continue to collaborate and work closely with our federal partners to hold people accountable for their actions who are involved in trafficking drugs in our communities.”
This case was investigated by the Drug Enforcement Administration, the MEDWAY Drug Enforcement Agency, the Wooster Police Department and the Wayne County Sheriff’s Office. The case is being prosecuted by Assistant United States Attorney Teresa Riley.
The investigation is ongoing.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
An indictment is 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.
Chelsea Store Owner Charged with Trafficking Counterfeit Apple Cell Phone ComponentsRead the Press Release
BOSTON –A Chelsea man was charged today in U.S. District Court in Boston with trafficking in counterfeit Apple, Inc. iPhone components at three retail locations in the Boston area.
Arif Ali Shah, 66, was charged with trafficking in counterfeit iPhone components that bore Apple trademarks – the Apple icon and the iPhone word mark – but were not genuine Apple products.
It is alleged that between approximately 2005 and February 2015, Shah sold counterfeit Apple merchandise at his three retail locations: Nadia’s in Dorchester, East Boston Wireless in East Boston and Todo Wireless in Chelsea. Shah also repaired genuine iPhones at his stores using counterfeit components. Shah purchased the counterfeit merchandise from sources both outside the United States and from a domestic supplier. Shah knew that the goods were counterfeit, but nonetheless sold and attempted to sell thousands of pieces of counterfeit merchandise.
The trafficking statute provides for a sentence of no greater than 10 years in prison, three years of supervised release, and a fine of up to $2 million. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Acting United States Attorney William Weinreb and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement today. Assistant U.S. Attorney Amy Harman Burkart of Weinreb’s Cybercrime Unit is prosecuting the case.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cardiologist, Neurologist, and Others Charged in $50 Million Health Care Fraud Scheme, and Civil Suit Filed Against Clinic and Participants in the FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), Scott J. Lampert, Special Agent-in-Charge of the New York Regional Office of the United States Department of Health and Human Services Office of the Inspector General (“HHS-OIG”), and James P. O’Neill, the Commissioner of the New York City Police Department (“NYPD”), announced today criminal and civil actions relating to a 12-year scheme to defraud Medicaid, Medicare, and other private health insurance companies out of more than $50 million. Today’s actions include the unsealing of an Indictment charging ASIM HAMEEDI, FAWAD HAMEEDI, MICHELLE LANDOY, DESIREE SCOTT, EMAD SOLIMAN, and ARIF HAMEEDI with, among other things, health care fraud, identity theft, and making false statements, and the filing of a civil fraud lawsuit against CITY MEDICAL ASSOCIATES, P.C., and ASIM HAMEEDI, among others, seeking treble damages and civil penalties under the False Claims Act for the fraudulent claims for reimbursement submitted by CITY MEDICAL ASSOCIATES to Medicare and Medicaid between 2003 and November 2015.
ASIM HAMEEDI was arrested this morning in Manhattan. FAWAD HAMEEDI was arrested this morning on Long Island. LANDOY and SCOTT were each arrested this morning in Queens, New York. SOLIMAN was arrested this morning in Westchester County. ARIF HAMEEDI is outside the United States and has not yet been arrested. All of the defendants in custody will be presented later today in Manhattan federal court before Magistrate Judge Sarah Netburn.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, these defendants that included a cardiologist and neurologist ran a medical practice that for years bilked public health care programs and private insurance companies of more than $50 million. Thanks to the hard work of federal and state investigators, this fraud has been revealed and the alleged perpetrators forced to face the consequences of their actions.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. stated: “Public health insurance programs, like Medicare and Medicaid, are not a personal pocketbook for criminals seeking to exploit a program designed to help those who need these programs the most. As alleged, the six defendants carried out a massive health care fraud scheme against these programs and private insurance companies for over twelve years and submitted more than $50 million in fraudulent claims. The FBI is committed to working with our law enforcement partners to bring to justice those who defraud taxpayer funded programs.”
HHS-OIG Special Agent-in-Charge Scott J. Lampert said: “Health care fraud schemes like the one alleged here loot government health programs, compromise patient well-being, and undermine the public’s trust in the health profession. You can bet our agents will continue to thoroughly investigate such allegations and hold fraudsters accountable for their crimes.”
NYPD Commissioner James P. O’Neill said: “As alleged, this investigation revealed numerous calculated actions that occurred for more than a decade which resulted in more than $50 million in fraudulent claims. I commend the NYPD investigators and FBI agents who uncovered these criminal activities and whose efforts resulted in a thorough investigation and arrests related to this ill-fated scheme.”
According to the allegations in the Indictment and the Civil Complaint:[1]
ASIM HAMEEDI, a board-certified interventional cardiologist who was the president and owner of City Medical Associates, a cardiology and neurology clinic based in Bayside, New York (“CMA””), together with others employed by CMA, conducted a massive health care fraud scheme spanning 12 years and involving more than $50 million in fraudulent claims. ASIM HAMEEDI conducted this scheme with others employed at or associated with CMA, including ASIM HAMEEDI’s nephew, FAWAD HAMEEDI, ASIM HAMEEDI’s brother, ARIF HAMEEDI, MICHELLE LANDOY, and DESIREE SCOTT, who were also employees of CMA, and EMAD SOLIMAN, a board-certified neurologist with his own practice in Westchester, New York.
The multi-faceted scheme included, among other things: (1) making false representations to insurance providers, including providers paid through Medicaid and Medicare, about the medical condition of patients in order to obtain preauthorization for medical tests and procedures; (2) submitting false claims to insurance providers for tests and procedures that were not performed and/or medically unnecessary, as well as for drug items not used or provided; (3) paying exorbitant kickbacks to local primary care medical offices in exchange for lucrative referrals from these offices; (4) and accessing, without authorization, electronic health records of patients at a particular hospital based on Long Island, New York (“Hospital-1”), in violation of the Health Insurance Portability and Accountability Act of 1996 (“HIPAA”) in order to identify patients to be recruited to CMA.
In furtherance of the scheme, and to hide from the insurance providers the huge volume of claims, including fraudulent claims, being submitted by CMA, ASIM HAMEEDI, FAWAD HAMEEDI, ARIF HAMEEDI, MICHELLE LANDOY, and DESIREE SCOTT submitted claims to the insurance providers falsely representing that medical tests had been ordered or performed by doctors who did not work at CMA and who had not ordered or performed the tests. These doctors included EMAD SOLIMAN, who knowingly participated in the scheme to allow CMA to submit false claims to the insurance providers in his name, as well as two other doctors who did not know that their identities were being used to further the fraud (“Doctor-1” and “Doctor-2”).
In addition, ASIM HAMEEDI and FAWAD HAMEEDI, with the assistance of ARIF HAMEEDI, used various unlawful means to obtain and maintain a high volume of patients for use in the fraudulent scheme, including, among other things, paying exorbitant kickbacks to local primary care offices and practitioners in exchange for referrals of patients by those offices and practitioners to CMA. Moreover, ASIM HAMEEDI and FAWAD HAMEEDI repeatedly, and without authorization, accessed information in electronic health records of patients of Hospital-1 to identify and recruit patients to the practice of ASIM HAMEEDI and CMA.
* * *
The charges against the defendants alleged in the Indictment, and the maximum penalties for those charges, are set forth in a chart below. Also set forth below is a chart with the defendants’ names, ages, and residences.
The Civil Complaint joins a civil fraud lawsuit previously filed under seal by a whistleblower under the False Claims Act. The civil case is pending before Judge Paul G. Gardephe.
Mr. Bharara praised the outstanding investigative work of the FBI, HHS-OIG, the NYPD, and the New York State Department of Financial Services.
The criminal case is being handled by the Complex Frauds and Cybercrime Unit, and Assistant U.S. Attorney Elisha J. Kobre is in charge of the prosecution. The civil case is being handled by Assistant U.S. Attorney Jacob M. Bergman of the Office’s Civil Frauds Unit.
CHARGE
DEFENDANTS
MAXIMUM PENALTIES
Count One
Conspiracy to Commit Health Care Fraud and Wire Fraud in violation of 18 U.S.C. § 1349
ASIM HAMEEDI,
FAWAD HAMEEDI,
MICHELLE LANDOY,
DESIREE SCOTT,
EMAD SOLIMAN, and
ARIF HAMEEDI
20 years in prison
Count Two
Health Care Fraud, in violation of 18 U.S.C. §§ 1347 and 2
ASIM HAMEEDI,
FAWAD HAMEEDI,
MICHELLE LANDOY,
DESIREE SCOTT,
EMAD SOLIMAN, and
ARIF HAMEEDI
10 years in prison
Count Three
Wire Fraud, in violation of 18 U.S.C. §§ 1343 and 2
ASIM HAMEEDI,
FAWAD HAMEEDI,
MICHELLE LANDOY,
DESIREE SCOTT,
EMAD SOLIMAN, and
ARIF HAMEEDI
20 years in prison
Count Four
False Statements Relating to Health Care Matters, in violation of 18 U.S.C. §§ 1035 and 2
ASIM HAMEEDI,
FAWAD HAMEEDI,
MICHELLE LANDOY,
DESIREE SCOTT,
EMAD SOLIMAN, and
ARIF HAMEEDI
5 years in prison
Count Five
Conspiracy to Violate the Anti-Kickback Statute, in violation of 18 U.S.C. § 371
ASIM HAMEEDI,
FAWAD HAMEEDI, and
ARIF HAMEEDI
5 years in prison
Count Six
Conspiracy to Wrongfully Obtain and Disclose Individually Identifiable Health Information, in violation of 18 U.S.C. § 371
ASIM HAMEEDI and
FAWAD HAMEEDI
5 years in prison
Count Seven
Conspiracy to Commit Fraud in Connection
with Identification Information, in violation of 18 U.S.C. § 1028(f)
ASIM HAMEEDI,
FAWAD HAMEEDI,
MICHELLE LANDOY,
DESIREE SCOTT, and
EMAD SOLIMAN
15 years in prison
Count Eight
Conspiracy to Commit Money Laundering, in violation of 18 U.S.C. § 1956(h)
ASIM HAMEEDI,
FAWAD HAMEEDI, and
ARIF HAMEEDI
20 years in prison
Count Nine
Aggravated Identity Theft, in violation of 18 U.S.C. § 1028A
ASIM HAMEEDI,
FAWAD HAMEEDI,
MICHELLE LANDOY, and
DESIREE SCOTT
Mandatory minimum of 2 years in prison
Count Ten
False Statements to a Federal Agent, in violation of 18 U.S.C. § 1001
EMAD SOLIMAN
5 years in prison
DEFENDANT
AGE
RESIDENCE
ASIM HAMEEDI
46
Manhattan, New York and
FAWAD HAMEEDI
31
Long Island, New York
MICHELLE LANDOY
35
Queens, New York
DESIREE SCOTT
37
Queens, New York
EMAD SOLIMAN
47
Westchester County, New York
ARIF HAMEEDI
56
Queens, New York
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and Civil Complaint and the descriptions of the Indictment and Civil Complaint set forth below constitute only allegations, and every fact described should be treated as an allegation.
California Man Sentenced to 76 Months in Prison for Cocaine Trafficking ConspiracyRead the Press Release
NEWARK, N.J. – A California man was sentenced today to 76 months in prison for his role in a conspiracy to traffic approximately 12 kilograms of cocaine from California to New Jersey, U.S. Attorney Paul J. Fishman announced.
Jesus Raul Iribe, 38, of Riverside, California, previously pleaded guilty before U.S. District Court Judge Kevin McNulty to an information charging him with one count of conspiring to distribute more than 500 grams of cocaine.
According to documents filed in this case and statements made in court:
On Feb. 8, 2013, law enforcement officers recorded and observed meetings between Iribe and other conspirators in which they allegedly planned to use a tractor-trailer to transport cocaine from California to New Jersey and other destinations along the East Coast. Eventually, law enforcement followed the tractor trailer to Bronx, New York, where they recovered a produce box containing 12 kilograms of cocaine. Iribe admitted that he conspired with others to traffic the cocaine from California to New Jersey.
In addition to the prison term, Judge McNulty sentenced Iribe to five years of supervised release. Under terms of the plea agreement, he must also forfeit $446,310 in cash, three handguns, and an AR-1 assault rifle that were recovered when he was arrested in March 2015.
U.S. Attorney Fishman credited special agents and task force officers of the Drug Enforcement Administration’s New Jersey Division, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, the DEA Los Angeles Field Office, and the Fontana, California Police Department.
The government is represented by Assistant U.S. Attorney Jonathan M. Peck of the U.S. Attorney’s Office General Crimes Unit.
Boston Man Sentenced to Prison for Scheme to Defraud Brokerage FirmsRead the Press Release
BOSTON – A Boston man was sentenced today in U.S. District Court in Boston in connection with a three-year, multi-million-dollar fraud scheme.
Nathanial Ponn, 28, was sentenced by U.S. District Court Judge Allison D. Burroughs to 15 months in prison and ordered to pay restitution of $20,738, after pleading guilty in December 2016 to three counts of wire fraud.
From 2012 to April 2015, Ponn opened more than 400 brokerage accounts at nine investment firms throughout the United States, using false names, Social Security numbers, assets and income. These firms allowed customers to transfer funds from one financial institution into the customer’s brokerage account through an Automated Clearing House (ACH) transfer, by providing the account number and financial institution where the account was held and the amount to be transferred. Between February 2014 to April 2015, Ponn provided ACH transfer information to brokerage firms for accounts he opened on more than 350 occasions, totaling more than $8.5 million in attempted transfers. In each instance, the bank account Ponn provided did not have the amount of funds requested or, in some circumstances, did not even exist. Although the ACH transfers were rejected, the fraudulent transfers created the false appearance that the brokerage accounts had cash available to purchase securities.
Through this scheme, Ponn was able to purchase securities totaling more than $2.7 million in accounts at eight investment firms. When the firms discovered that the ACH transfers were rejected, they liquidated the securities in Ponn’s accounts. As part of the scheme, Ponn also attempted, unsuccessfully, to get the brokerage firms to send him checks totaling about $250,000, based on the same false ACH information.
The U.S. Attorney’s Office received valuable assistance from the Securities and Exchange Commission, which filed a civil action against Ponn in March 2016 arising out of the scheme to defraud investment firms.
Acting United States Attorney William D. Weinreb and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistant U.S. Attorney Mark J. Balthazard of Weinreb’s Economic Crimes Unit prosecuted the case.
Bank Embezzler Sentenced to a Year in JailRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage woman was sentenced to a year in jail yesterday in federal court for embezzling over $100,000 from her former employer Credit Union 1.
Shanice Mano, age 23, of Anchorage, was sentenced by U.S. District Court Chief Judge Timothy M. Burgess.
According to Assistant U.S. Attorney Aunnie Steward who prosecuted the case, Mano was a teller at Credit Union 1 when she accessed a customer’s account without authority and transferred money to accounts that she had control over and from which she was able to make withdrawals.
Chief Judge Burgess noted that Mano’s crime was well planned and deliberate and that over the course of several days she stole money that had taken the victims’ years to save. Judge Burgess noted the need to deter others from similar crimes.
The FBI was able to recover $80,000 of the stolen funds. Restitution was ordered for the remainder.
U.S. Attorney Loeffler commends the FBI for the investigation of this case.
Baltimore Real Estate Agent Sentenced to over Two Years in Prison for $735,000 Mortgage Fraud Scheme Involving Baltimore City PropertiesRead the Press Release
Baltimore, Maryland – U.S. District Judge James K. Bredar sentenced Michael Gerard Camphor, age 60, of Baltimore, to 27 months in prison, followed by three years of supervised release on charges arising from the fraudulent purchase of four properties in Baltimore, using fraudulent loan documentation and straw purchasers, resulting in losses of over $735,000. At the sentencing on February 28, 2016, Judge Bredar also ordered Camphor to pay restitution of $735,363.47 and to forfeit $962,274.95.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office; Special Agent in Charge Bertrand Nelson of the U.S. Department of Housing and Urban Development Office of Inspector General; and Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office.
According to Camphor’s plea agreement and other court documents, since 2002, co-conspirator Andreas Tamaris purchased, renovated, and then resold distressed row houses in Baltimore City, primarily in the Highlandtown neighborhood. Camphor had worked as a real estate agent for a company and also operated a real estate consulting business called Ron Gerard LLC, a/k/a Ron Gerard & Associates.
From approximately February 2008 to July 2009, Camphor and his co-conspirators, including Cecil Chester, found buyers for Tamaris’ properties and for other property owners. They sought potential buyers who were inexperienced with residential real estate transactions. Camphor and his co-conspirators advised these “straw purchasers,” who lacked the funds needed to pay the down payment and closing costs, that they didn’t need to contribute these funds to buy the properties. Because the straw purchasers also lacked the earnings to keep up the mortgage payments, the conspirators typically promised that they would place tenants in the properties whose rent payments would cover the monthly mortgage payments after the transactions closed. The conspirators promised to collect the rent and make the mortgage payments.
The government contended at sentencing that Camphor and his co-conspirators set the purchase price for the properties to exceed their actual fair market value, thereby generating excess proceeds from the transactions from which they could profit. The conspirators provided false information about the straw purchasers’ employment, income and financial assets to the mortgage loan brokers to enable the straw purchasers to qualify for home mortgage loans. The conspirators falsely indicated to the mortgage loan brokers that the straw purchasers each intended to use the property as their primary residence following the purchase. Tamaris and other individuals supplied the funds needed for the down payment and closing costs on each of the transactions, and were in turn reimbursed from the loan proceeds at settlement.
One of the conspirators brought the straw purchaser to the closing and then caused the straw purchaser to falsely sign certifications in the closing documents affirming that the property was to be used as the primary residence, and that no portion of the down payment and closing costs were borrowed. Following the settlement on each transaction in which they participated, Camphor and his co-conspirators received substantial payments drawn from the proceeds of the loan. Few, if any, payments were made towards the mortgages.
Camphor was integrally involved in the fraud scheme by which four of the properties handled by the conspirators were sold and financed: 126 S. Curley Street; 1720 W. Pratt Street; 322 S. Robinson Street; and 8020 Gough Street, all located in Baltimore. All four properties went into foreclosure, resulting in a loss of at least $735,000.
Camphor has agreed to forfeit property retained or obtained as a result of the fraudulent conspiracy, including 1619 W. Baltimore Street; 2040 Linden Avenue, Unit A, and 1610 N. Smallwood Street, all located in Baltimore.
Cecil Sylvester Chester, age 70, of Mitchellville, Maryland previously pleaded guilty to the same charges and was sentenced to two years in prison and was ordered to pay restitution of at least $1.483 million.
In related proceedings, Andreas E. Tamaris, age 46, of Bel Air, Maryland, Christopher A. Kwegan, age 59, of Randallstown, Maryland, and Alexander Sivels, II, age 32, of Baltimore, previously pleaded guilty to their roles in this, or related mortgage fraud schemes. Tamaris was sentenced to 15 months in prison and was ordered to pay $1,229,206.28 in restitution. Sivels and Kwegan were each sentenced to 27 months in prison. Judge Bredar ordered Sivels to pay restitution of $1,317,314.35, and ordered Kwegan to pay restitution of $530,641.27.
The Maryland Mortgage Fraud Task Force was established to unify the agencies that regulate and investigate mortgage fraud and promote the early detection, identification, prevention and prosecution of mortgage fraud schemes. This case, as well as other cases brought by members of the Task Force, demonstrates the commitment of law enforcement agencies to protect consumers from fraud and promote the integrity of the credit markets. Information about mortgage fraud prosecutions is available at http://www.justice.gov/usao-md/financial-fraud-and-identity-theft.
Today’s announcement is part of the efforts undertaken in connection with the Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. For more information on the task force, please visit www.StopFraud.gov.United States Attorney Rod J. Rosenstein commended the FBI, HUD OIG - Office of Investigations and the U.S. Secret Service for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Jefferson M. Gray, who prosecuted the case.
Austrian Man Arrested on Illegal Reentry ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Yaacov Yosef Deutsch, a/k/a Jakob Deutsch, 48, of Vienna, Austria, was arrested and charged by criminal complaint with unlawful reentry of a removed alien and making a false statement to a federal officer. The charges carry a maximum penalty of five years and $250,000 fine.
Assistant U.S. Attorney Mary Catherine Baumgarten, who is handling the case, stated that according to the complaint, on February 27, 2017, the defendant, who had previously been removed from the United States, attempted to enter the United States at the Rainbow Bridge Port of Entry without the consent of the Attorney General of the United States or the Secretary of Homeland Security. Such consent and permission is required in instances in which a person has previously been deported or removed from the United States. During the process seeking admission to the United States, Deutsch also made false statements to a federal officer.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. and is being held pending a detention hearing on March 6, 2017, at 2:00 p.m.
The criminal complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly and Customs and Border Protection, under the direction of Rose Brophy, Director of Field Operations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Anniston Army Depot Employee Charged with Stealing Transmission Oil CoolersRead the Press Release
BIRMINGHAM – Federal prosecutors have charged an Anniston Army Depot employee with stealing more than $175,000 worth of transmission oil coolers from the depot between 2013 and 2015, announced Acting U.S. Attorney Robert O. Posey and FBI Special Agent in Charge Roger C. Stanton.
The U.S. Attorney’s Office on Friday filed a one-count information in U.S. District Court charging ERIC JUSTIN HARDY, 45, of Anniston, with one count of theft of government property for stealing V6 and V8 oil coolers worth $175,537.
In conjunction with the charge, prosecutors also filed a plea agreement with Hardy. As part of that agreement, Hardy pledges to plead guilty to the charge, to consent to a court judgment to forfeit $175,537 to the government, and to pay that same amount in restitution to the Anniston Army Depot. Hardy is scheduled for arraignment on the charge March 9 in federal court in Birmingham.
According to the plea agreement, Hardy stole 70 V6 oil coolers and 28 V8 oil coolers from the Army installation and sold them to various scrap metal dealers for about $25 to $30 each. The Army estimated the V6 oil coolers value at $2,007 each and the V8 oil coolers at $1,250 each.
The maximum penalty for theft of government property is 10 years in prison and a $250,000 fine.
The FBI investigated the case, which Assistant U.S. Attorney Robin Beardsley Mark is prosecuting.
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Albuquerque Man Pleads Guilty to Misdemeanor Charge of Assaulting Federal OfficersRead the Press Release
ALBUQUERQUE – Joe J. Zambrano, 54, of Albuquerque, N.M., pled guilty today in federal court to a misdemeanor charge of assaulting, resisting and impeding federal officers in the performance of their official duties.
Zambrano was charged in a criminal complaint with assaulting, resisting, or impeding federal officers, and providing false information to law enforcement officers on Jan. 15, 2017, in Bernalillo County, N.M. According to the criminal complaint, on Jan. 15, 2017, Zambrano attempted to use his vehicle as a weapon against Park Rangers of the National Park Service during a routine traffic stop within the Petroglyph National Monument. Zambrano then provided a false name, birthdate and social security number to the Park Rangers in response to their request for Zambrano’s identification information.
Zambrano subsequently was charged by a misdemeanor information on Jan. 18, 2017, with assaulting, resisting and impeding a federal officer. During today’s proceedings, Zambrano pled guilty to the information. and admitted that on Jan. 15, 2017, he nearly struck a Park Ranger with his vehicle while attempting to flee from two Park Rangers. Zambrano further admitted that he ignored the Park Rangers’ verbal commands that he stop his vehicle.
Zambrano remains in federal custody pending a sentencing hearing, which has yet to be scheduled. At sentencing, Zambrano faces a maximum statutory penalty of a year of imprisonment.
This case was investigated by the National Park Service and was prosecuted
Alaska Woman Sentenced to Five Years for Federal Narcotics Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Katrina Tiana Brown, 33, of Anchorage, Alaska, was sentenced today in federal court in Albuquerque, N.M., to 60 months in prison for her conviction on a federal narcotics trafficking charge. She will be on supervised release for four years after completing her prison sentence.
Brown was arrested in Dec. 2015, and charged by indictment with possession of phencyclidine (PCP) with intent to distribute. The indictment alleged that Brown committed the crime on Feb. 8, 2013, in Bernalillo County, N.M.
On Jan. 10, 2017, Brown pled guilty to a felony information charging her with possessing distribution quantities of PCP. In entering the guilty plea, Brown admitted that on Feb. 8, 2013, she possessed more than 100 grams of PCP while at the Greyhound Bus Station in Albuquerque. Brown acknowledged that she intended to distribute the PCP to others.
This case was investigated by the Albuquerque office of the DEA and the Albuquerque Police Department and was prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
A.B.I.A. Baggage Handler Charged with Stealing FirearmsRead the Press Release
In Austin this morning, a 25-year-old baggage handler at Austin Bergstrom International Airport (ABIA) surrendered to FBI agents based on a federal criminal complaint charging him with theft from an interstate shipment and possession of stolen firearms announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division, and Austin Police Chief Brian Manley.
The complaint alleges that between November 29, 2016, and February 2, 2017, Ja’Quan Johnson of Austin stole numerous handguns from inside passenger bags at ABIA. The complaint further alleges that Johnson traded some of the stolen firearms for marijuana. So far, Austin Police have recovered seven firearms allegedly stolen by Johnson.
Upon conviction, Johnson faces up to ten years in federal prison for theft from an interstate shipment and up to ten years in federal prison for possession of each stolen firearm.
Johnson was released on a personal recognizance bond following his initial appearance this afternoon before United States Magistrate Judge Andrew W. Austin. No further court dates have been scheduled.
This investigation is being conducted by the Federal Bureau of Investigation, Transportation Security Administration and the Austin Police Department’s Aviation Division.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
87 Month Prison Sentence for Drug User with GunsRead the Press Release
Gulfport, Miss – Dewayne Jeh Reion Leonta Bowie, 21, of Gulfport, was sentenced by U.S. District Judge Sul Ozerden to 87 months in prison followed by three years of supervised release on each of two counts for being an unlawful user of narcotics in possession of firearms, U. S. Attorney Gregory K. Davis announced today. Bowie was also ordered to pay a $6,000 fine.
Bowie was in possession of a firearm on two separate dates in August, 2016. Charges of possession of a firearm with an obliterated serial number and possession of a stolen firearm were dismissed pursuant to the plea agreement with the Government. The Court ordered the sentences to run concurrently and recommended that Bowie attend the Bureau of Prisons 500-hour drug treatment program while incarcerated.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives, along with the Gulfport Police Department. It was prosecuted by Assistant United States Attorney Annette Williams.
74 Month Prison Sentence for Felon with GunRead the Press Release
Gulfport, Miss – James C. Eustice, 38, of Gulfport, was sentenced by U.S. District Judge Sul Ozerden to 74 months in prison for being a felon in possession of two firearms, U. S. Attorney Gregory K. Davis announced today. Eustice was also ordered to pay a $5,000 fine and serve three years of supervised release when released from prison.
This case was investigated by the Bureau of Alcohol Tobacco Firearms and Explosives along with the Gulfport Police Department. The case was prosecuted by Assistant United States Attorney Annette Williams.
19 People Indicted Following Investigations into International Fraud and Money Laundering RingsRead the Press Release
WASHINGTON – Federal indictments were unsealed today in the District of Columbia charging 19 people with taking part in various international fraud and money laundering conspiracies that led to more than $13 million in losses, including one scheme in which mid-level corporate employees were tricked into wiring millions of dollars to bank accounts under control of those in the criminal enterprise.
The charges were announced by U.S. Attorney Channing D. Phillips; Assistant Director in Charge Andrew Vale of the FBI’s Washington Field Office; Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury; Special Agent in Charge Clark E. Settles of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI) Washington, D.C.; Assistant Director Joseph Trigg of INTERPOL Washington (U.S. National Central Bureau); Director Vaughn Ary of the Justice Department’s Office of International Affairs; Acting Director Christian Schurman of the U.S. Department of State’s Diplomatic Security Service (DSS), and Special Agent in Charge Brian J. Ebert, Washington Field Office, U.S. Secret Service.
Sixteen of the 19 defendants were arrested overnight and today in a law enforcement operation coordinated by the FBI. Another was previously arrested, and two remain at large. The arrests took place in New York and Los Angeles, as well as Hungary, Bulgaria, Germany, and Israel. The arrests were conducted by more than 50 law enforcement agents.
The arrests followed a multi-year investigative effort by federal and international law enforcement agencies to target multimillion-dollar fraud and money laundering schemes perpetrated by a transnational organized crime network.
“These indictments and today’s arrests followed an international investigation into an interconnected web of money launderers, fraudsters and individuals that aided and abetted their criminal activities,” said U.S. Attorney Phillips. “The defendants in the cases being unsealed today are accused of taking part in schemes in the United States and abroad, costing victims millions of dollars. The investigation demonstrates the importance of international cooperation amongst law enforcement in combatting fraud and money laundering on a global basis.”
“Members of the transnational organized crime group who carried out these schemes were sophisticated, well connected and continually honed their techniques to exploit their victims,” said Assistant Director in Charge Vale. “In total, they stole more than $13 million from over 170 victims, primarily in the United States. Because of the dedication and perseverance by our law enforcement partners in the United States and abroad, the FBI’s multi-year investigation into these schemes and this international criminal network, has yielded the disruption or return of more than $56 million in victim funds.”
“I would like to commend our law enforcement partners, the FBI, HSI and our international partners for the outstanding joint investigation that has led us to the arrests reported today,” said Assistant Inspector General Phillips. “Treasury OIG is committed to continuing to work with our law enforcement partners to protect the Treasury and the nation’s financial infrastructure from Transnational criminal organizations that attempt to exploit financial institutions and money service businesses and their anti-money laundering programs by moving illicit funds obtained in various scams perpetrated against businesses and citizens across the United States and the world that use the financial infrastructure of the United States to launder their illicit proceeds.”
A total of four indictments were unsealed today in these alleged schemes:
Online Vehicle Fraud: Participants in this scheme used the Internet to falsely advertise cars for sale that they did not own, the indictment alleges. Operating out of Europe, the participants marketed the cars on popular websites aiming to attract buyers in the United States. They offered prices that were lower than those offered by legitimate sellers. Prospective buyers were directed to deposit money into fraudulently created bank accounts via wire transfers. The funds were then immediately withdrawn and the expectant buyers never received any vehicles.
The indictment alleges that the criminal activities took place from November 2010 until April 2013 in the District of Columbia and elsewhere. According to the indictment, the co-conspirators induced at least 170 victims, located primarily in the United States, collectively to transfer at least $4 million to bank accounts controlled by those in the conspiracy, and the co-conspirators were able to withdraw approximately $3.2 million from the fraudulently opened accounts in the United States.
Eight defendants have been arrested and are charged with conspiracy to commit bank and mail fraud, conspiracy to commit a travel act violation, and conspiracy to commit money laundering. They include Alex Almasi, 35; Ferenc Gajdos, 33; Laszlo Hesz,, 41; Attila Kartaly, 35; Zoltan Koszegi, 41; Alfred Kuttenberg, 34; Attila Molnar, 37, and Gabor Pataki, 35, all of Hungary. Gajdos and Kuttenberg also are charged with one count each of bank fraud.
Business Email Compromise (BEC): This scheme was an outgrowth of the vehicle fraud scheme, according to the indictment. The defendants allegedly used the Internet and primarily U.S.-based electronic communications to target mid-sized and large companies and impersonate executive-level employees in e-mail communications with mid-level employees. These mid-level employees were led to believe they were being entrusted to handle a large financial transaction, such as a “secret” corporate acquisition, the indictment alleges. The employees were instructed to initiate wire transfers from the company’s corporate bank accounts to bank accounts controlled by members of the criminal enterprise. Once the funds were transferred, the money was quickly wire transferred out of the reach of the target corporation into accounts located in the People’s Republic of China and elsewhere, with the funds ultimately being delivered to co-conspirators located in Europe and elsewhere.
The indictment alleges that this scheme took place from approximately January 2014 through March 2015. The indictment details over $10 million in transactions involving six companies from Germany, Spain, Finland, and Portugal.
Four defendants are charged with conspiracy to commit wire fraud. Those arrested include: Harry Meir Mimoun Amar aka “Harry Amar,” or “Ari Amar,” 38, a resident of Israel and a citizen of Morocco and Israel; Sabina Selimovic, a resident of Germany and citizen of Serbia; and Cristian Flamanzeanu aka “Christiano Flamanzeano,” 32, a resident and citizen of Romania. A fourth defendant remains at large.
Unlicensed Money Transmitting Network: While investigating the fraud schemes and the co-conspirators’ related efforts to launder the fraud proceeds, law enforcement uncovered an unlicensed money transmitting network (“hawala”) operating in the United States, Europe, and Israel. This indictment reflects the FBI’s efforts to expose and identify certain “hawala” co-conspirators by transmitting FBI undercover funds through the “hawala” network in separate transactions in New York, Los Angeles, and Washington, D.C. The activities charged in the indictment took place from June 2015 through April 2016.
Six defendants were arrested and are charged with conspiracy to operate an unlicensed money transmitting business. Those arrested include Ori Saadon, 53, born in Israel and a resident of Israel; Itzhak Salama, 40, born in Israel and a resident of Los Angeles; Golan Chkechkov, 39, born in Israel and a resident of New York, New York.; Michael Admon, 50, born in Israel and a resident of New York, New York, and Haviv Arazi, 27, a citizen of Israel and a resident of New York, N.Y. A sixth defendant remains at large.
International Money Laundering Conspiracy: This indictment alleges that Stanislav Nazarov, an Israeli citizen, generated hundreds of thousands of dollars in proceeds from various fraudulent schemes and engaged in international money laundering. Nazarov was arrested and is charged with three money laundering offenses during December 2016.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
This investigation is being conducted by the FBI’s Washington Field Office and the Office of the Inspector General of the U.S. Department of Treasury with assistance from HSI Washington, D.C.; the Department of Justice’s Office of International Affairs, the U.S. Secret Service Washington Field Office, and the DSS. Assistance was provided by the Israeli National Police; the Hungarian National Bureau of Investigation, Rapid Response and Special Police Services; Federal Criminal Police Office of Germany; Warsaw Metropolitan Police, and the Polish National Police, Police of the Czech Republic; the Slovak National Police; the General Inspectorate of Romanian Police, and Bulgaria's Ministry of Interior, Sofia Interpol, as well as INTERPOL Washington, the U.S. National Central Bureau. The FBI Legal Attaches in Warsaw, Tel Aviv, Budapest, Bucharest, Prague, and Berlin also provided assistance.
This case is being prosecuted by Assistant U.S. Attorney Diane Lucas of the Asset Forfeiture and Money Laundering Section and Assistant U.S. Attorneys Michael J. Marando and David Kent of the Fraud and Public Corruption Section of the U.S. Attorney’s Office for the District of Columbia. Assistance was provided by former Assistant U.S. Attorneys Michael Atkinson and David Last, former Paralegal Specialists Taryn McLaughlin and Angela Lawrence, Supervisory Paralegal Specialist Tasha Harris, Paralegal Specialists C. Rosalind Pressley, Brittany Phillips and Christopher Toms, and Litigation Technology Specialist Jeanie Latimore-Brown.
Attachments
Business Email Compromise Timeline
Hawala System
Tuesday 28 February 2017
Winchester Man Pleads Guilty to Federal Heroin Conspiracy ChargesRead the Press Release
Harrisonburg, VIRGINIA – A Winchester man, who routinely traveled to Baltimore and brought back large quantities of heroin to Winchester for distribution, pled guilty today in the United States District Court for the Western District of Virginia in Harrisonburg, Acting United States Attorney Rick A. Mountcastle announced.
Joshua Dillon Burkhart, 27, of Winchester, Va., pled guilty today to one count of conspiring to distribute and to possess with the intent to distribute more than 100 grams of heroin.
According to evidence presented today by Assistant United States Attorney Erin M. Kulpa, should this matter have gone to trial, the United States would have proven beyond a reasonable doubt, that from approximately June 2014 and October 2014, Burkhart, and others, participated in a conspiracy to traffic large amounts of heroin from Baltimore to Winchester. Burkhart distributed at least 1,000 grams of heroin in the Winchester area during this time, using Christopher Giles, and others, as his Baltimore sources of supply.
Throughout the life of the conspiracy, Burkhart traveled to Baltimore one or two times per month to purchase heroin. He paid $100 per gram of heroin and the most he ever purchased per trip was 110 grams of heroin.
Burkhart sold heroin to customers in and around Winchester in quantities ranging from one-half gram to one gram per sale. He sold the heroin for $240 per gram. Burkhart knew that some of his customers were sub-distributors.
The investigation of the case was conducted by Drug Enforcement Administration and the Northwest Virginia Regional Drug and Gang Task Force, which is comprised of the Virginia State Police, the Winchester Police Department, the Front Royal Police Department, the Strasburg Police Department, the Frederick County Sheriff’s Office, the Page County Sheriff’s Office, the Warren County Sheriff’s Office, the Shenandoah County Sheriff’s Office and the Clarke County Sheriff’s Office. Assistant United States Attorney Erin M. Kulpa will prosecute the case for the United States.
Whitesville Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Timothy J. Billings, 31, of Whitesville, NY, pleaded guilty before U.S. District Court Judge Lawrence J. Vilardo to conspiracy to manufacture, possess with intent to distribute, and to distribute, 50 grams or more of a mixture and substance containing methamphetamine. The charge carries a minimum penalty of five years in prison, a maximum of 20 years, and a $5,000,000 fine.
Assistant U.S. Attorney Brendan T. Cullinane, who is handling the case, stated that between January of 2011 and October 25, 2011, the defendant conspired to manufacture and distribute methamphetamine. In order to avoid restriction on the purchase of pseudoephedrine, an important chemical in the methamphetamine manufacturing process, Billings engaged in the practice of “smurfing” (buying small quantities) at local pharmacies.
The conviction is the culmination of an investigation on the part of the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Division; the New York State Police Community Narcotics Enforcement Team (CNET), under the direction of Lieutenant Kevin Reyes and Major David Krause; the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent-in-Charge Ashan Benedict, New York Region; the Southern Tier Regional Drug Task Force, under the direction of Cattaraugus County Sheriff Timothy Whitcomb; the Wellsville Police Department, under the direction of Chief Timothy O’Grady; U.S. Border Patrol, under the direction of Patrol Agent-in-Charge Steven Oldman; and the New York State Department of Environmental Conservation, under the direction of Captain Frank Lauricella.
Sentencing is scheduled for June 1, 2017, before Judge Vilardo.
Waterbury Man Sentenced to Federal Prison for Distributing HeroinRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that TEDDY STUART LOPEZ, JR., also known as “Chico” and “Junior,” 20, of Waterbury, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 15 months of imprisonment, followed by five years of supervised release, for distributing heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents or statements made during court proceedings, on May 10, 2016, North Haven Police and emergency medical personnel responded to a report of an unresponsive man on the Hartford Turnpike in North Haven. The 23-year-old man was transported to the hospital where he later died. The victim’s family later turned over to law enforcement a wax fold of heroin. The investigation revealed that the victim likely purchased heroin from LOPEZ in Waterbury earlier that day.
Between July 5 and July 8, 2016, investigators made two controlled purchases of heroin from LOPEZ.
LOPEZ was arrested on July 19, 2016. At the time of his arrest, he possessed 40 bags of heroin. A subsequent search of his residence revealed 150 bags of heroin, $1,600 in cash, a grinder, a digital scale, cutting agents, cellular telephones, and drug packaging material.
On November 16, 2016, LOPEZ pleaded guilty to one count of possession with intent to distribute, and distribution of, heroin.
This matter was investigated by the DEA’s New Haven Task Force, which includes DEA agents and task force officers from the North Haven, East Haven, West Haven, New Haven, Hamden, Branford, Ansonia, Derby, and Meriden Police Departments.
This case was prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Warwick Resident Sentenced for Possessing, Distributing Child PornographyRead the Press Release
PROVIDENCE, R.I. – Sami-Joe Daou, 28, of Warwick, was sentenced today to 70 months in prison for possessing and distributing child pornography. A joint federal, state and local law enforcement investigation determined that Daou possessed images of child pornography, some of which he shared via Facebook.
At sentencing, U.S. District Court Chief Judge William E. Smith also ordered Daou to serve 10 years supervised release upon completion of his prison term and to pay $18,308 restitution to the victims in this matter. Daou pleaded guilty on November 3, 2016, to one count of possession of visual depiction of a minor engaged in sexual explicit conduct and one count of distribution of visual depiction of a minor engaged in sexual explicit conduct.
Daou’s sentence is announced United States Attorney Peter F. Neronha; Harold H. Shaw, Special Agent in Charge of the FBI Boston Division; Colonel Ann C. Assumpico, Superintendent of the Rhode Island State Police; and Cranston Police Chief Colonel Michael J. Winquist.
According to information presented to the court, in March 2015, the defendant stored on his computer sexually explicit images involving a pre-teenage female, some of which he shared on Facebook. Additionally, in July 2015, the defendant stored on his computer sexually explicit video files depicting sexual contact he had with a 17-year-old female.
The case was prosecuted by Assistant U.S. Attorney Milind M. Shah.
The matter was investigated by the Rhode Island State Police Computer Crimes Unit, the Cranston Police Department, and the FBI.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Virginia man pleads guilty to methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Richard Wayne Scott, 40, of Waynesboro, Virginia, was convicted of methamphetamine distribution today, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Scott admitted to traveling from Virginia to West Virginia as a part of a methamphetamine distribution operation in February 2016. Scott pled guilty to one count of “Interstate travel in furtherance of a drug crime.” He faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen D. Warner prosecuted the case on behalf of the government. The Mountain Region Drug and Violent Crimes Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
USP Lee Inmate Sentenced on Conspiracy ChargeRead the Press Release
Abingdon, VIRGINIA – An inmate at the United States Federal Penitentiary in Lee County, Virginia [USP Lee] who previously pled guilty in United States District Court for the Western District of Virginia in Abingdon to conspiring with others to bring illegal narcotics into the prison, was sentenced yesterday, Acting United States Attorney Rick A. Mountcastle announced.
Jermaine Calvin Jeffries, 44, formerly of Pennington Gap, Va., waived his right to be indicted and pled guilty to a one count Information charging him with one count of conspiring with others to provide a prohibited object, methamphetamine, to other inmates. Jefferies was sentenced yesterday to an additional 60 months in federal prison.
Jeffries conspired with others to provide inmates inside USP Lee with methamphetamine, Suboxone and marijuana. The conspirators did this through the use of phone calls to arrange transportation of the methamphetamine and the attempted transportation of the drug from outside the prison to prisoners incarcerated at USP Lee.
The investigation of the case was conducted by the Federal Bureau of Investigation. Assistant United States Attorney Randy Ramseyer prosecuted the case for the United States.
U.S. Man Indicted for Attempting to Smuggle Weapons to MexicoRead the Press Release
LAREDO, Texas – A U.S. citizen man residing in Nuevo Laredo has been charged with attempting to smuggle multiple firearms and ammunition magazines to Mexico, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) and Special Agent in Charge Fred Milanowski of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
“Stopping the smuggling of weapons, ammunition and other related items is a top priority for HSI,” said Folden. "We will continue working with law enforcement partners in this effort.”
“Reducing border violence by interfering with the smuggling of firearms into Mexico provides an additional layer of safety for our community,” said Milanowski.
A grand jury returned an indictment against Iram Abel Buentello, 23, today. He was originally charged by criminal complaint and made an appearance before U.S. Magistrate Judge Diana Song Quiroga who ordered him into custody pending further criminal proceedings. He is expected to make his initial appearance on the indictment in the near future.
On Feb. 1, 2017, Buentello allegedly attempted to exit the U.S. in a pickup truck at the Lincoln Juarez Bridge II in downtown Laredo. According to the charges, he stated he came to Laredo to purchase cologne and was returning to his home in Nuevo Laredo. At the time, Buentello allegedly advised U.S. Customs and Border Protection (CBP) officers that he had no weapons to declare.
The charges allege a search of the truck he was driving revealed five rifles, six handguns, two shotguns, six ammunition magazines and four scopes under the truck’s bed.
Buentello is charged with one count of attempting to export firearms and components from the U.S. without a license. If convicted, he faces up to 10 years in prison and a possible $250,000 fine.
HSI and ATF conducted the investigation with the assistance of Customs and Border Protection. Assistant U.S. Attorney Chris Howard is prosecuting the case.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Two Sentenced in Pill Mill CaseRead the Press Release
DALLAS — Two defendants who pleaded guilty to their roles in a pill mill operation they were involved in during parts of 2013-2014 have been sentenced.
U.S. Attorney John Parker announced that Taneisha Nickerson, 29, of Dallas, Texas, was sentenced last week to 24 months in federal prison, following her guilty plea in August 2016 to one count of unlawful use of a communication device. Co-defendant Adrian Banks, 23, of Dallas, was also sentenced last week to 20 months in federal prison. He pleaded guilty in August 2016 to the same offense.
In March 2015, a federal grand jury in Dallas indicted 23 individuals, including Nickerson and Banks, on offenses related to their participation in a prescription drug distribution conspiracy. That indictment alleged that from at least May 2013 through July 2014, the defendants participated in a scheme to illicitly obtain prescriptions for pain medications, such as oxycodone and hydrocodone, and then distribute those controlled substances for profit. As part of the conspiracy, individuals, often homeless or of limited means, were recruited and paid to pose as patients at medical clinics, including the McAllen Medical Clinic in Dallas, to obtain prescriptions to fill those prescriptions at designated pharmacies. Many of those defendants have pleaded guilty and are awaiting sentencing.
According to documents filed in the Nickerson case, on March 5, 2014, in a telephone call Nickerson agreed to deliver 225 oxycodone 30mg pills to one of co-conspirator Cornelius Robinson’s customers. Nickerson possessed the pills with the intent to distribute them at the time of the call.
According to documents filed in the Banks case, on February 26, 2014, Banks called co-conspirator Cornelius Robinson and told him that he was in Dallas “running patients” and wanted to know if a “patient” could use a green card to fill a prescription at a pharmacy. Robinson told Banks that he thought so because it is an identification card. Banks told Robinson that the prescriptions he had to fill that day were for Lorcet, Robinson told him that there was not a lot of money in Lorcet. Banks responded that he expected to be “running patients,” that is, filling prescriptions, for oxycodone, within two weeks.
The investigation is being conducted by the Drug Enforcement Administration, with assistance from the Internal Revenue Service, Texas Department of Public Safety, the Louisiana State Police, the Grand Prairie Police Department, the Dallas Police Department, the Houston Police Department, the Arlington Police Department, the Greenville Police Department, the Parker County Sheriff’s Office, the U.S. Marshal’s Service, the U.S. Postal Inspection Service, and the Diplomatic Security Service. Assistant U.S. Attorney Mary Walters is prosecuting.
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Tohatchi Man Pleads Guilty to Federal Murder ChargeRead the Press Release
ALBUQUERQUE – Dennison Hale, 44, an enrolled member of the Navajo Nation who resides in Tohatchi, N.M., pled guilty today in federal court in Albuquerque, N.M., to a second degree murder charge. Under the terms of his plea agreement, Hale will be sentenced within the range of 180 to 240 months in federal prison followed by a term of supervised release to be determined by the court.
Hale was arrested on Feb. 23, 2016, by the FBI on a criminal complaint alleging that he murdered a Navajo woman on the Navajo Indian Reservation in San Juan County, N.M. According to the complaint, on Feb. 20, 2016, Hale struck the victim in the head and fled from the scene of the crime, the victim’s home in Hogsback, N.M. The victim was transported by helicopter to the hospital, where she was pronounced dead. Hale was later indicted on a murder charge on March 23, 2016.
During today’s proceedings, Hale pled guilty to a felony information charging him with second degree murder. In entering the guilty plea, Hale admitted that on Feb. 20, 2016, he killed the victim by striking her twice in the head with a crowbar. Hale 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 Navajo Nation Department of Public Safety. Assistant U.S. Attorney Michael D. Murphy is prosecuting the case.
This case was brought as part of the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native American women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
Three Individuals Indicted for Mortgage Fraud SchemeRead the Press Release
Today a federal grand jury sitting in West Palm Beach returned a nine-count Superseding Indictment charging three individuals with conspiracy to commit bank fraud and various substantive bank fraud offenses, in violation of Title 18, United States Code, Sections 1349 and 1344.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Timothy Mowery, Special Agent in Charge, Federal Housing Finance Agent, Office of Inspector General (FHFA-OIG), Southeast Region, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Division, made the announcement.
George Heaton, 73, of West Palm Beach, Florida, Deborah Dentry Baggett, 54, of Greenville, Tennessee (formerly of Palm Beach County), and Eric Granitur, 59, of Vero Beach, Florida are charged in the Superseding Indictment. If convicted, the defendants face a statutory maximum term of 30 years’ imprisonment, a $1 million fine, and mandatory restitution, on each count in the indictment.
According to allegations contained in the Superseding Indictment:
From 2006 through 2009, defendants Heaton, Baggett, Granitur and others conspired to perpetrate a complex mortgage fraud scheme against various FDIC-insured lenders by concealing incentives offered and paid to buyers of condominium units at the Vero Beach Hotel and Club in Vero Beach, a luxury ocean-front condo-tel developed by Palm Beach County based real estate developer George Heaton.
The defendants and their coconspirators concealed and misrepresented the amount of seller paid incentives, including cash-to-close, cash rebates, and seller-provided cash deposits, and transferred incentive money through a Palm Beach County law firm’s bank account in order to conceal the fact that the funds were coming from the seller, and not the buyer, as was required by the mortgage lenders.
On several occasions, defendant Baggett took large sums of money, without permission, from the bank account of another client of her accounting business to use for deposit and down payment money for condo purchases. Defendant Baggett also forged client names on sale and purchase contracts, and provided the personal financial information of those other clients without their permission, all to give defendant Heaton’s commercial lender the false impression that he had obtained actual buyers for the units, in order to maintain construction financing.
The fraud scheme caused financial institutions to fund mortgage loans, totaling more than $20 million.
Mr. Ferrer commends the investigative efforts of the FHFA-OIG and FBI. The case is being prosecuted by Special Assistant United States Attorney Joseph A. Capone.
An Indictment is a formal charging documents notifying the defendant of the charges. All persons charged by indictment are presumed innocent until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Tax Preparer Pleads GuiltyRead the Press Release
FORT WAYNE – United States Attorney for the Northern District of Indiana, David Capp, announced that Frankie Williams a/k/a “Molly” of Fort Wayne, Indiana entered a plea of guilty to counts 3 and 4 of the indictment which charged her with submitting false claims for payment to the Internal Revenue Service in connection with fraudulent tax returns. The Magistrate Judge is recommending that the district court accept the tendered guilty plea. Parties have 14 days in which to object to the magistrate judge’s recommendation. If the District Court ultimately accepts the guilty plea, the sentencing hearing will be scheduled under a separate order.
Co-defendant Cavasierre Russell a/k/a “Vassi” in June 2016 pleaded guilty to one count of submitting a false claim in connection with a fraudulent tax return. He was sentenced in September 2016 to 6 months imprisonment and was ordered to pay $45,983 restitution to the Internal Revenue Service. Two other defendants Ronald Ward and Cassandra Ward, were charged under separate indictments. Ronald Ward, in August 2016 pleaded guilty to one count of submitting a false claim in connection with a fraudulent tax return. He was sentenced in October 2016 to 12 months and a day imprisonment and ordered to pay $48,311 restitution to the Internal Revenue Service. Cassandra Ward a/k/a “Kitten,” in March 2016 pleaded guilty to one count of submitting a false claim in connection with a fraudulent tax return. She was sentenced in June 2016 to 5 years probation and was ordered to pay $112,078.64 restitution to the Internal Revenue Service and Social Security Administration.
This case was the result of an investigation by the Internal Revenue Service, Criminal Investigation Division and the Social Security Administration, Office of Inspector General. This case was handled by Assistant United States Attorneys Lovita Morris King and Deborah M. Leonard.
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Takata Corporation Pleads Guilty, Sentenced to Pay $1 Billion in Criminal Penalties for Airbag SchemeRead the Press Release
Tokyo-based Takata Corporation, one of the world’s largest suppliers of automotive safety-related equipment, pleaded guilty to one count of wire fraud and was sentenced to pay a total of $1 billion in criminal penalties stemming from the company’s conduct in relation to sales of defective airbag inflators.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, U.S. Attorney Barbara McQuade of the Eastern District of Michigan, Special Agent in Charge David Gelios of the FBI’s Detroit Field Office and Regional Special Agent in Charge Thomas J. Ullom of the U.S. Department of Transportation Office of Inspector General’s (OIG) Chicago Field Office made the announcement.
“For over a decade, Takata lied to its customers about the safety and reliability of its ammonium nitrate-based airbag inflators,” said Acting Assistant Attorney General Blanco. “Takata abused the trust of both its customers and the public by allowing airbag inflators to be put in vehicles knowing that the inflators did not meet the required specifications. Today’s sentence shows that the department will work tirelessly to hold responsible those who engage in this type of criminal conduct.”
“We hope that today's guilty plea and sentence will send a message to suppliers of consumer safety products that they must put safety ahead of profits,” said U.S. Attorney McQuade.
“The commission of fraudulent activity by the Takata Corporation to generate corporate profits jeopardized the safety of American consumers,” said Special Agent in Charge Gelios. “Today's guilty plea should reassure American consumers that the FBI and its federal law enforcement partners will aggressively pursue corporations and their employees when they violate federal laws.”
“Today’s sentencing of Takata Corporation for wire fraud related to sales of defective airbag inflators is a clear signal to all whose duty it is to protect the public: your most solemn obligation is to public safety,” said Regional Special Agent in Charge Ullom. “As is true for Secretary Chao and the Department of Transportation, safety is and will remain the highest priority for OIG, and we remain committed to working with our law enforcement and prosecutorial partners in pursuing those who commit criminal violations of transportation-related laws and regulations.”
Takata pleaded guilty before U.S. District Judge George Caram Steeh, in the Eastern District of Michigan, to a one count criminal information charging the company with wire fraud. After accepting Takata’s guilty plea, Judge Steeh, consistent with the terms of the plea agreement, sentenced Takata to pay a total criminal penalty of $1 billion, including $975 million in restitution and a $25 million fine and three years’ probabtion. Under a joint restitution order entered at the time of sentencing, two restitution funds will be established: a $125 million fund for those individuals who have been physically injured by Takata’s airbags and who have not already reached a settlement with the company, and a $850 million fund for airbag recall and replacement costs incurred by those auto manufacturers who were victims of Takata’s fraud scheme. A court-appointed special master will oversee administration of the restitution funds. Takata will also implement rigorous internal controls, retain an independent compliance monitor for a term of three years and cooperate fully with the department’s ongoing investigation, including its investigation of individuals.
According to admissions made during the course of the guilty plea, from 2000 through and including 2015, Takata carried out a scheme to defraud its customers and auto manufacturers by providing false and manipulated airbag inflator test data that made the performance of the company’s airbag inflators appear better than it actually was. Even after the inflators began to experience repeated problems in the field – including ruptures causing injuries and deaths – Takata executives continued to withhold the true and accurate inflator test information and data from their customers.
The FBI and the U.S. Department of Transportation’s Office of Inspector General investigated the case. Trial Attorneys Brian K. Kidd, Christopher D. Jackson and Andrew R. Tyler of the Criminal Division’s Fraud Section and Assistant U.S. Attorneys John K. Neal, Erin S. Shaw and Andrew J. Yahkind of the Eastern District of Michigan prosecuted the case. The Criminal Division’s Office of International Affairs also provided assistance.
Support Group Meeting for Those Impacted by Heroin and Opioid Addiction to be Held on March 1Read the Press Release
The Eastern Iowa Heroin Initiative and CRUSH of Iowa (Community Resources United to Stop Heroin) will host a support group meeting for anyone who is currently recovering from opioid addiction and family members who have lost loved ones to opioid or heroin addiction and overdose.
The meeting will be held at the Mission of Hope, 1700 B Avenue NE in Cedar Rapids, Iowa, on Wednesday, March 1, from 6:00 to 7:30 p.m. This meeting is also open to the public and anyone interested in learning more about the current heroin epidemic in Iowa is welcome to attend.
To learn more about the Eastern Iowa Heroin Initiative, visit: www.facebook.com/EasternIowaHeroinInitiative
Event Details
When: Wednesday, March 1, 2017
Where: Mission of Hope, 1700 B Avenue NE in Cedar Rapids, Iowa
Time: Begins at 6:00 p.m., and ends at 7:30 p.m.
St. Croix Man Pleads Guilty to Conspiracy to Possess a Controlled Substance with Intent to DistributeRead the Press Release
St. Croix, USVI – Dimitrous Jefferson, 27, of St. Croix, pleaded guilty today in federal court on St. Croix to conspiracy to possess a controlled substance with intent to distribute, United States Attorney Ronald W. Sharpe announced.
On May 4, 2016, Jefferson and co-defendant Ray Harris, were employees of Worldwide Flight Services at the Henry E. Rohlsen Airport in St. Croix. As they entered the Transportation and Security Administration’s screening area, Jefferson triggered the metal detector. A search of his person revealed a brick-like package wrapped with gray duct tape and strapped to his leg. Harris had a similar package strapped to his leg. Both packages tested positive for cocaine. The total weight of the packages was approximately 992 grams. Jefferson told law enforcement officers that he was assisting Harris, who pleaded guilty on February 17, 2017.
Jefferson faces up to 20 years of incarceration for the offense and a fine of up to $1,000,000. A sentencing date has been set for June 28, 2017. Co-defendant Harris’ sentencing is scheduled for June 22, 2017.
The case was investigated by the Immigration and Customs Enforcement’s Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Sixteen Individuals Charged in $60 Million Medicare Fraud SchemeRead the Press Release
DALLAS – An indictment returned by a federal grand jury in Dallas last week, and unsealed today, charges 16 individuals with offenses related to their participation in a health care fraud scheme, announced John Parker, U.S. Attorney for the Northern District of Texas.
The defendants charged are:
Bradley J. Harris, 35, of Frisco, Texas
Amy L. Harris, 42, of Frisco, Texas
Melanie L. Murphey, 35, of Fort Worth, Texas
Patricia B. Armstrong, 33, of Coppell, Texas
Mark E. Gibbs, 46, of Lindsay, Texas
Laila N. Hirjee, 50, of Plano, Texas
Syed M. Aziz, 51, of Frisco, Texas
Reziuddin Siddique, 63, of Allen, Texas
Charles R. Leach, 64, of Arlington, Texas
Jessica J. Love, 37, of Gainesville, Texas
Ali Rizvi, 49, of Carrollton, Texas
Tammie L. Little, 55, of Brashear, Texas
Mary Jaclyn Pannell, 29, of Krum, Texas
Taryn E. Stuart, 32, of Sanger, Texas
Slade C. Brown, 47, of Plano, Texas
Samuel D. Anderson, 35, of Carrollton, Texas
Each indicted defendant is charged with one count of conspiracy to commit health care fraud. Twelve of the defendants are also charged with at least one other count related to the conspiracy.
“That tens of millions of dollars were stolen through fraud is shocking enough,” said U.S. Attorney Parker. “That these defendants used human life at its most vulnerable stage as the grist for this scheme displays a shocking level of depravity that this community simply cannot tolerate.”
The indictment alleges that from July 2012 to September 2016, Novus billed Medicare and Medicaid more than sixty million dollars for fraudulent hospice services, of which more than thirty-five million dollars was paid to Novus. Specifically, defendants submitted false claims for hospice services, submitted false claims for continuous care hospice services, recruited ineligible hospice beneficiaries by providing kickbacks to referring physicians and healthcare facilities, and falsified and destroyed documents to conceal these activities from Medicare.
Novus Health Services and Optim Health Services, Inc. were operated and co-owned by Harris, who was a certified public accountant without any medical licenses. Harris operated the two companies essentially as one. Licensed physicians who were paid Novus medical directors provided little to no oversight of Novus’s hospice patients. Care was directed primarily by Novus nurses and by Harris. Defendants who were not physicians would determine whether a beneficiary would be certified for, recertified for, or discharged from hospice; whether they would be placed on continuous care; and how and to what extent they would be medicated with drugs such as morphine and hydromorphone. These decisions on medical care were often driven by financial interest rather than patient need. The defendants would decide whether to place, keep, or discharge a beneficiary from hospice depending on how that decision would affect Novus’s ability to bill Medicare.
Physicians were recruited who would refer hospice patients in exchange for medical director salaries. Assisted living facilities, in exchange for patient referrals, were provided remuneration including Certified Nursing Assistants paid for by Novus to staff the facilities.
Novus medical directors would sign certificates of terminal illness indicating that they had determined that a beneficiary was eligible for hospice services regardless of whether this was true or not; prepare re-certifications of terminal illness for beneficiaries already on hospice, which falsely indicated that the beneficiaries continued to be hospice eligible; and routinely give medical directors’ login information to others to log into Novus’s electronic medical records database to create and sign physician orders for services that had not been performed or had not been performed by the medical directors.
Harris would direct that beneficiaries be placed on continuous care, whether the beneficiaries needed this service or not. This decision would often be made without any consultation with a physician. Continuous care physician’s orders were falsified and uploaded into Novus’s electronic medical records database. When a beneficiary was on continuous care, the Novus nurses would administer high doses of Schedule II controlled medications such as morphine or hydromorphone, whether the beneficiary needed the medication or not. The defendants and others obtained these Schedule II medications with “C2” prescription forms (used for the prescription of controlled substances) which had been unlawfully pre-signed by medical directors. One reason for this aggressive medicating practice was that Harris wanted to ensure that the beneficiaries’ medical records contained documentation that would justify billing Medicare at the higher continuous care billing rate. There were instances when these excessive dosages resulted in serious bodily injury or death to the beneficiaries.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, however, each count of conspiracy to commit health care fraud and substantive health care fraud count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU).
Assistant U.S. Attorney Russell Fusco is prosecuting the case.
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Silver Springs Man Arrested on Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Ronald Caryl, 24, of Silver Springs, NY, was arrested and charged by complaint with receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison and a maximum of 20 years in prison.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on February 14, 2017, the defendant began communicating on MeetMe.com, a social networking service, with a 23-year-old woman in Nashville, Tennesee. During the conversation, the two began to discuss Caryl providing the woman with $300 to have sex with her. The woman wrote, “just $300 and u do what u want to me.” The defendant replied, “do you have a young girl who could join I’ll pay more...you into young girls”? The woman responded, “as long as they r 18 and older”, to which Caryl replied, “Ya I meant younger I’ll pay 6000.” The woman replied, “I can’t put things in her mouth she gets sick she’s disabled.” The defendant went on to say, “show me your daughter” and then the woman allegedly sent a picture to the defendant. Caryl continued to press the woman to send naked pictures of her one-year-old daughter.
A MeetMe.com staff member identified the possible endangerment of a minor and illegal content and notified the National Center for Missing and Exploited Children (NCMEC). On February 24, 2017, NCMEC notified the FBI of the content which was traced to an IP address belonging to the defendant. Caryl was arrested this morning.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was detained pending a detention hearing on March 2, 2017, at 2:30 p.m.
The complaint is the result of an investigation by the Federal Bureau of investigation, under the direction of Special Agent-in-Charge Adam S. Cohen. Additional assistance was provided by the Wyoming County Sheriff’s Office, Cheektowaga Police Department, and the Niagara County Sheriff’s Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Seven Defendants Plead Guilty to Millions of Dollars of Fraudulent Sales to Defense DepartmentRead the Press Release
Assistant U.S. Attorney Rebecca S. Kanter (619-546-7304)
NEWS RELEASE SUMMARY – February 28, 2017
Jeffrey Harrington and Michael Mayer, the owners of several defense contracting firms, pleaded guilty before U.S. Magistrate Judge Karen Crawford this morning to conspiring to commit wire fraud and file false claims, and to making false statements on their federal income tax returns.
The defendants admitted obtaining money from the United States by making false representations and false claims to the Department of Defense (“DoD”) for payment on items defendants knew had not been sold to the Navy, but which had been substituted with other, unauthorized products. Three of the companies owned by Harrington and Mayer, including San Diego-based Veteran Logistics, Inc. (“VLI”), as well as two employees, also pleaded guilty to conspiracy for their role in the offense.
The three defense contractors – VLI, Industrial Xchange, Inc., and Boston Laser Technology, Inc. – regularly sold supplies to the DoD, the Department of Navy, the General Services Administration and other federal departments and agencies. Each company had multiple contracts with DoD’s Defense Logistics Agency (“DLA”) to sell products to the federal government through “EMALL,” a web-based electronic commerce site that allows authorized users to search, compare and purchase commonly used products. Each contract allowed the company to sell up to $5 million in pre-approved goods at set, maximum prices. As detailed in court filings, however, the defendants fraudulently manipulated the EMALL system to substitute unapproved, overpriced items for the materials purportedly sold to the government.
In one example, the defendants agreed on EMALL to supply Maritime Expeditionary Security Group Two at Norfolk Naval Shipyard with over 10,000 “Post-It” writing paper pads, but then replaced these approved items with 50 electronic transceivers they were not authorized to sell. By fraudulently substituting these products, the defendants were able to circumvent procurement controls and charge the military a 134% mark-up on the transceivers. The defendants repeatedly employed this fraudulent technique dozens of times, on a host of products, across a wide array of components in the military.
The scheme also allowed the defendants to conceal the sale of consumer electronics and other items that could be used to corrupt military officials. For example, in one contract VLI agreed to supply the USS Ronald Reagan aircraft carrier with industrial, motorized plumber snakes. VLI then fraudulently substituted that order with 100 29” Toshiba TVs, 60 32” Toshiba TVs and 160 TV tilt mounts. VLI purchased these items for only $39,558, but billed the government $66,807.
The plea agreements also detailed a series of transactions between October 2013 and April 2014, wherein IXI and another VLI-affiliated company, At Your Command (“AYC”), created approximately 20 EMALL carts for Navy Explosive Ordnance Disposal Group #2 (EODG-2) in Norfolk, Virginia, containing various items, including bags, canvas organizer bags, and pouches, for which the defendants billed DLA and received $1,303,024. In reality, the defendants actually provided EODG-2 with parachutes, altimeters and other sky diving gear purchased for approximately $924,252, realizing a profit of $378,772 by substituting improperly procured parachuting equipment.
The defendants were hugely successful in their fraud, and received approximately $45 million for EMALL sales related to over 12,000 transactions between approximately March 1, 2008 and January 31, 2015. On a small sample of 60 of those transactions between August 2009 and October 2013, totaling approximately $2,868,590 in sales, the loss to the Navy was approximately $1,417,395, indicating a fraud loss of approximately 50%.
Acting United States Attorney Robinson observed: “Not only did the defendants inflict financial harm on the taxpayers by charging obscene mark-ups on these items, but they potentially compromised combat readiness by providing unauthorized, non-conforming parts. What’s more, their scheme posed a significant danger of corrupting Navy personnel and others by essentially creating a ‘slush fund’ to purchase non-military items, such as televisions, computers, cameras, iPhones and other electronics. This Office will continue to use all the tools available, including the District’s Procurement Fraud Working Group, to prevent and deter those who pose the threat of fraud and corruption to our procurement process.”
“Corrupt contracting practices damage the public trust and ultimately undermine the efforts of the Department of Defense to support our men and women in uniform,” said Chris Hendrickson, Special Agent in Charge of the Defense Criminal Investigative Service Western Field Office. “Along with our law enforcement partners, we make the investigation of such offenses a top priority. Cases such as these are not motivated by need or other difficult personal circumstances; they are the product of simple greed.”
“The successful prosecution of this case was the direct result of collaborative teamwork between the Naval Criminal Investigative Service, our Federal Law Enforcement partners and the U.S. Attorney’s Office,” said Gunnar Newquist, Special Agent in Charge of the NCIS Southwest Field Office. “Convictions like this should be a warning to those who would attempt to take advantage of the US Navy, for personal gain.” As SAC Newquist observed, “We are unified in our efforts to catch criminals who not only defraud the US Navy, but specifically are stealing money from the American taxpayers at the direct loss to our warfighters.”
FBI Special Agent in Charge Eric S. Birnbaum stated, “Today’s convictions are a result of federal partners teaming together to stop the loss of millions of government dollars as well as the greed and deceit employed in this case.” SAC Birnbaum continued, “The FBI will continue to work to root out fraud against our government and uncover the schemes to steal federal taxpayer dollars.” The FBI encourages the public to report allegations of public corruption to the FBI public corruption hotline at telephone number (877) NO-BRIBE (662-7423).
In addition to the fraud charges, Harrington and Mayer also pleaded guilty to false statements on their tax returns for the tax years 2010 and 2014. Harrington and Mayer both used VLI to pay personal expenses in excess of $200,000 and $100,000, respectively, thereby underreporting their 2010 income on their personal tax returns. Both defendants, in contravention of the advice of their tax professionals, continued this behavior of using VLI to pay for personal expenses and not declaring the additional money as income, causing their 2014 income tax returns to under-report their income by approximately $436,017 and $674,704. By under-reporting their income, Harrington underpaid taxes by $141,113 and Mayer underpaid taxes by $299,511 for 2010 and 2014.
“IRS Criminal Investigation remains committed to investigating individuals who treat corporate funds as their personal piggy bank,” said Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation. “As admitted in court today, Mr. Harrington and Mr. Mayer used their positions within VLI to defraud not just their own company, but the honest, hardworking Americans who pay their tax obligations.”
All defendants also agreed to forfeiture of the proceeds of their offense, and have collectively agreed to forfeit over $1.6 million in illegal proceeds. All defendants were ordered to return to court on May 19, 2017, at 8:30am, for a hearing before District Judge Gonzalo Curiel.
CORPORATE DEFENDANTS
Veteran Logistics, Inc.
Industrial Xchange, Inc.
Boston Laser Technology, Inc.
INDIVIDUAL DEFENDANTS Criminal Case No. 17CR0488-GPC
Jeffrey Harrington Age: 55 San Diego, CA
Michael Mayer Age: 63 San Diego, CA
Kimberlee Hewitt Age: 45 Ridgewood, New York
Natalee Hewitt Age: 49 Virginia Beach, Virginia
SUMMARY OF CHARGES
Count 1 (All): Conspiracy to commit wire fraud and file false claims (18 U.S.C. § 371).
Maximum penalties: 5 years’ imprisonment; 3 years’ supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $10.
Count 2 (Harrington): False Statement on Tax Return (26 U.S.C. § 7206(1)).
Maximum penalties: 3 years’ imprisonment; 1 year supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100.
Count 3 (Mayer): False Statement on Tax Return (26 U.S.C. § 7206(1)).
Maximum penalties: 3 years’ imprisonment; 1 year supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100.
AGENCIES
Defense Criminal Investigative Service
Defense Logistics Agency, Office of Inspector General
Federal Bureau of Investigation
General Services Administration, Office of Inspector General
Internal Revenue Service, Criminal Investigation
Naval Criminal Investigative Service
Sarasota Real Estate Professional Sentenced to Prison for Mortgage FraudRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore yesterday sentenced Freddy Orjuela, Sr. (49, Sarasota) to two years in federal prison and to pay $960,020 in restitution for making false statements in a mortgage loan application to a federally insured financial institution. As part of the sentence, the Court also entered a money judgment in the amount of $1,475,950, the proceeds of the fraud.
A jury found Orjuela guilty on December 14, 2016, following a three- day trial.
According to court documents, Orjuela submitted a mortgage loan application to Century Bank on which he knowingly and willfully overstated his income, understated his liabilities, and falsely denied he had declared bankruptcy within the past seven years.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Callan Albritton and Bob Mosakowski.
Rockford Woman Sentenced to 51 Months in Federal Prison for Tax Fraud and Identify TheftRead the Press Release
ROCKFORD — A Rockford woman was sentenced in federal court today by U.S. District Judge Frederick J. Kapala for making false claims for federal income tax refunds and using other persons’ identification in connection with the fraudulent claims.
CRYSTAL S. JACKSON, 29, who pleaded guilty to the charges on Nov. 28, 2016, was sentenced to 51 months in federal prison, to be followed by three years of supervised release. She was ordered to pay $200 in special assessment, and to pay the United States Treasury $99,479 in restitution.
According to the written plea agreement, Jackson admitted that between 2011 and 2013, she prepared and filed, both electronically and by mail, 45 false federal individual income tax returns in the names of other individuals without their permission, causing fraudulent claims for refunds to be made against the United States Treasury. The 45 false returns were filed with the IRS for tax years 2010, 2011, and 2012, and requested refunds totaling $189,237. Jackson admitted that as a result of her fraud, the IRS issued refunds in the total amount of $99,479. According to the plea agreement, the refunds were issued in the form of U.S. Treasury checks or credited to debit cards in the names of the individuals in whose names Jackson fraudulently filed the federal income tax returns. Jackson further admitted that she used ATM machines to withdraw the funds placed on the debit cards.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and James D. Robnett, Special Agent-in-Charge of the Chicago Field Office of the Internal Revenue Service - Criminal Investigation Division.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.
Rockford Insurance Executive Charged with Defrauding ClientsRead the Press Release
ROCKFORD — A Rockford man was indicted today by a federal grand jury on fraud charges.
TODD J. FENDLER, 41, was charged with one count of wire fraud and one count of mail fraud in connection with a scheme to defraud former insurance clients of Fendler’s businesses.
According to the indictment, Fendler controlled and operated several insurance-related businesses in Rockford, including Surplus Market Solutions LLC, Northern Underwriting Managers Inc., and Northern Illinois Insurance Agency Inc. The indictment alleges that Fendler obtained bank account information from businesses and individuals who had applied for insurance policies through Fendler’s companies, and that Fendler used that information to create fictitious checks purportedly issued by the applicants. Fendler deposited those fictitious checks, the indictment charges, into bank accounts of Surplus Market Solutions. The indictment identified two such checks: a check for $1,447 purportedly drawn upon a bank account of the Hollywood Wax Museum Myrtle Beach LLC, and a check for $5,205.79 purportedly drawn upon a bank account of the Beer Haus LLC.
Arraignment has been set for March 8, 2017, at 10:00 a.m., before U.S. Magistrate Judge Iain D. Johnston in Rockford.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and E. C. Woodson, Postal Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
Each count in the indictment carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution. The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving the defendant’s guilt beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorney John G. McKenzie.
Rancho Cordova Man Found Guilty of Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Today, after a one-day bench trial, U.S. District Judge Garland E. Burrell Jr. found Christopher Geanakos, 30, of Rancho Cordova, guilty of one count of receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, law enforcement identified a computer at Geanakos’s residence offering images of child pornography through a file-sharing network. During the execution of a search warrant, law enforcement identified Geanakos’s desktop computer as the source for the online images. Law enforcement subsequently performed a forensic examination of this computer and confirmed that multiple images and movies depicting child pornography had been downloaded onto the computer between 2010 and 2013, including images that depicted infant and toddler victims.
This case is the product of an investigation by the Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Audrey B. Hemesath and Shelley D. Weger are prosecuting the case.
Geanakos is scheduled to be sentenced by Judge Burrell on May 19, 2017. Geanakos faces a minimum of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Pittsburgh Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Pittsburgh, Pa., has been sentenced in federal court to 120 months in prison and five years’ supervised release on his conviction of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Warren Charles Green, IV, 30, of Pittsburgh, Pa.
According to information presented to the court, on Apr. 5, 2013, Green possessed with the intent to distribute 1 kilogram or more of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Ms. Song commended the Pennsylvania State Police, Somerset Turnpike Barracks, and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Green.
Phoenix Man, Woman Charged for Possessing Five Kilos of CocaineRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Phoenix, Ariz., man and woman have been charged in federal court after five kilograms of cocaine were found in their truck during a highway interdiction.
Luis J. Duarte, 58, and Adriana Gutierrez-Ramirez, also known as Adriana Peralta, 42, both of Phoenix, were charged in a criminal complaint filed in the U.S. District Court in Springfield on Monday, Feb. 27, 2017, with possessing cocaine with the intent to distribute. Duarte and Gutierrez-Ramirez, who had an initial court appearance yesterday, remain in federal custody pending a detention hearing on Thursday, March 2, 2017.
According to an affidavit filed in support of the federal criminal complaint, a Missouri State Highway Patrol trooper stopped a 2016 Ford F350 cargo utility Budget rental truck traveling eastbound on I-44 in Greene County, Mo., on Saturday, Feb. 25, 2017. The truck, being driven by Duarte with Gutierrez-Ramirez as passenger, allegedly weaved onto the shoulder three times.
During the traffic stop, the affidavit says, the trooper noted discrepancies in statements made by Duarte and Gutierrez-Ramirez, and both seemed extremely nervous. The trooper searched the vehicle and discovered a kilogram-sized package of cocaine. Four additional kilogram-sized packages of cocaine were discovered during a later search of the vehicle. The packages were located inside a cardboard box containing clothing towards the front of the cargo area of the truck.
Duarte and Gutierrez-Ramirez told law enforcement officers that they were being paid to drive the truck from Phoenix to Ohio.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Philadelphia Man Charged with Interstate Transportation of Stolen Print from the Muhammad Ali CenterRead the Press Release
Gerald Garrett, 58, of Philadelphia, Pennsylvania was charged today by Information with the interstate transportation of stolen property in connection with the theft from the Muhammad Ali Center in Louisville, Kentucky of a signed LeRoy Neiman print of Muhammad Ali, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 10 years imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney K.T. Newton.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Passaic County, New Jersey, Doctor Pleads Guilty in Connection with Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor practicing in Passaic County, New Jersey, today admitted taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced today.
Salvatore Conte, 52, of Totowa, New Jersey, pleaded guilty to Count One, Count Two, Count Five, and Count Eight of an indictment charging him with conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act by accepting bribes, one substantive violation of the Anti-Kickback Statute, one substantive violation of the Federal Travel Act, and one substantive violation of wire fraud. Conte pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to documents filed in this case and statements made in court:
Conte admitted accepting bribes from BLS employees and associates in the form of sham rental, service, and consulting agreements. From February 2009 through April 2013, Conte received bribes totaling approximately $130,000 from BLS employees and associates. Conte’s referrals generated approximately $525,000 in lab business for BLS.
Conte was the fifth physician indicted in connection with the BLS bribery scheme. Ahmed El Soury and Thomas Savino were indicted on Dec. 13, 2016 and Dec. 20, 2016, respectively. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Bernard Greenspan was indicted on March 14, 2016 and his trial is ongoing before U.S. District Judge William H. Walls.
The investigation has thus far resulted in 42 guilty pleas – 28 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $12 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
The conspiracy, Anti-Kickback, and Federal Travel Act counts to which Conte pleaded guilty are each punishable by a maximum potential penalty of five years in prison. The wire fraud charge is punishable by a maximum potential penalty of 20 years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. Conte’s sentencing is scheduled for June 6, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Howard Brownstein Esq., Jersey City, New Jersey
Omaha Man Pleads Guilty to Tax FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 27, 2017, Jesus Rivera Cruz of Omaha, Nebraska, age 41, pled guilty to one (1) count of filing a false tax return before the Honorable Laurie Smith Camp, Chief United States District Court Judge. An investigation conducted by the Internal Revenue Service-Criminal Investigation Division determined that the defendant, the owner of Rivera’s Mexican Food, a restaurant in Omaha, failed to report a significant portion of his gross receipts for the tax years 2010, 2011 and 2012. As a result of this failure to report said receipts, the United States suffered a tax loss of approximately $105, 029.
As part of the plea agreement the defendant has agreed to make full restitution to the government. Additionally, the defendant faces a term of incarceration of up to three years, a fine of $250,000 and a term of supervised release of up to one year. Sentencing is set for May 26, 2017. According to Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division Karl Stiften, “We should not forget that the ultimate victims in tax fraud cases are those honest taxpayers who diligently file returns and pay their taxes each year”.
Ohio Man Admits Defrauding Essex County, New Jersey, Company Out of More Than $950,000Read the Press Release
NEWARK, N.J. – A Milford, Ohio, man today admitted using an Essex County, New Jersey, medical company’s credit card without the company’s permission or consent to fraudulently obtain more than $950,000, U.S. Attorney Paul J Fishman announced.
John Tekulve, 44, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with wire fraud.
According to documents filed in this case and statements made in court:
From January 2011 through October 2012, Tekulve owned a medical supply company that sold products to an Essex County medical company. He obtained the company’s credit card information, which he used to fraudulently bill the company nearly $1 million for products and services that neither Tekulve nor his medical supply company provided. Tekulve then used the proceeds of the scheme for his own purposes, including the purchase of high-end automobiles and jewelry.
The count of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office in Trenton.
Defense counsel: Peter Carter Esq., Newark
North Carolina man is sentenced for unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Russell Cary Owens, 51, of Thomasville, North Carolina, was sentenced in federal court to 12 months incarceration for illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Owens, who was previously convicted of a felony in Texas, was discovered in possession of over ten firearms in Monongalia County, West Virginia, in June 2016. He pled guilty to one count of “Prohibited Person in Possession of a Firearm” in November 2016.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. District Judge Irene M. Keeley presided.
News AdvisoryRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian, along with representatives of county, state and federal law enforcement agencies, will hold a news conference tomorrow, March 1, at 2:30 p.m. in Syracuse, following an expected guilty plea tomorrow at 1 p.m. in U.S. v. Seppi.
- Change of plea hearing in U.S. v. Seppi – March 1 at 1 p.m. in the courtroom of the Hon. Brenda K. Sannes, James M. Hanley Federal Building, 100 South Clinton Street, Syracuse, NY.
- News conference – March 1 at 2:30 p.m. on the Ninth Floor of the James M. Hanley Federal Building, 100 South Clinton Street, Syracuse.
New Bedford Woman Sentenced to Prison for Operating Drug Stash HouseRead the Press Release
BOSTON – A New Bedford woman was sentenced yesterday in U.S. District Court in Boston for stashing drugs in her home for a drug trafficking ring that operated in Bristol County, Mass., and Providence, R.I.
Shirley Vargas, 45, was sentenced by U.S. District Court Judge Nathaniel Gorton to 18 months in prison and one year of supervised release. Shortly before sentencing, Vargas pleaded guilty to maintaining a place for drug purposes.
Vargas admitted that she stored large quantities of narcotics on behalf of Luis Lopez, a Tiverton, R.I.-based drug dealer. During a number of federal searches and arrests in June 2016, federal agents searched Vargas’ New Bedford residence and discovered approximately one kilogram of a fentanyl and acetylfentanyl mix hidden under her bed. In addition, in Vargas’ kitchen pantry, investigators found drug packaging materials, which included a drug press and baggies. Acetylfentanyl is a highly dangerous fentanyl analogue that is generally manufactured in China and imported into the United States.
In imposing the sentence, Judge Gorton acknowledged that although Vargas had no role in distributing the narcotics found in her home, she could be sure that her conduct “contributed” to the “pain and suffering” of drug addicts and their families.
In January 2017, Lopez was sentenced to 15 years in prison.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; New Bedford Police Chief Joseph C. Cordeiro; and Fall River Police Chief Daniel S. Racine made the announcement. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Naples Man Sentenced to 14 Years in Connection with A “PIP” Scheme to Defraud Automobile Insurance CompaniesRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Poster Chappell has sentenced Nesly Loute (52, Naples) to 14 years’ imprisonment for conspiracy to commit mail fraud. In addition, the Court ordered him to pay restitution in the amount of $2,146,147.23 to the victim automobile insurance companies.
Loute was found guilty by a federal jury on September 29, 2016.
According to the evidence introduced during the six-day trial, Loute conspired with others to operate unlicensed chiropractic clinics and bill automobile insurance companies for Personal Injury Protection (PIP) benefits. Members of the conspiracy also paid patients to induce them to seek treatment at the unlicensed clinics so that the automobile insurance companies could be billed for their PIP benefits. In addition, members of the conspiracy participated in staged motor vehicle accidents and then submitted claims to automobile insurance companies for PIP benefits based on those fake motor vehicle accidents.
Five others previously pleaded guilty to charges relating to this conspiracy. Four of those individuals have already been sentenced. Garry Joseph (37, Naples) pleaded guilty to conspiracy to commit mail fraud and was sentenced to 37 months’ imprisonment. Anouce Toussaint (33, Naples) pleaded guilty to conspiracy to commit mail fraud and conspiracy to launder money and received 18 months’ imprisonment. Maria Victoria Lopez (44, Moore Haven) pleaded guilty to conspiracy to commit mail fraud and was sentenced to 3 years’ probation. David Adamson (47, Bonita Springs), a licensed chiropractor, pleaded guilty to mail fraud and was sentenced to serve a 5-year term of probation and 180 days of home confinement. Wisler Cyrius (35, Naples) pleaded guilty to conspiracy to commit mail fraud and conspiracy to launder money. He is scheduled to be sentenced on March 13, 2017.
This case was investigated by the Federal Bureau of Investigation - Fort Myers Office, the State of Florida’s Department of Financial Services Division of Insurance Frauds - Fort Myers Office, the Internal Revenue Service - Criminal Investigation in Fort Myers, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Fort Myers. Assistance was also provided by the National Insurance Crime Bureau, the Florida Highway Patrol, the Florida Department of Health, Florida’s Agency for Health Care Administration, and the State Attorneys’ Offices for the 13th and 19th Judicial Circuits. The following insurance companies also assisted in the case: Travelers, Nationwide, Bristol West, Esurance, Windhaven, Farmers, Direct General, Allstate, State Farm, Progressive, Geico, Infinity, and Foremost. It was prosecuted by Assistant United States Attorneys Charles D. Schmitz and David G. Lazarus.