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Wednesday 1 February 2017
Pain Management Physician Resolves False Claims Act AllegationsRead the Press Release
LEXINGTON, Ky. – Pain management physician Dr. Robert Windsor has agreed to the entry of a $20 million consent judgment to resolve allegations that he violated the False Claims Act by billing federal health care programs for surgical monitoring services that he did not perform and for medically unnecessary diagnostic tests. Dr. Windsor owned pain management clinics in Georgia and Kentucky that operated under the umbrella of National Pain Care, Inc., including clinics in Lexington, London, Somerset, Hazard, Prestonsburg, and Pikeville, Kentucky.
“Dr. Windsor placed personal gain above all else in his medical practice,” said Carlton S. Shier, IV, Acting U.S. Attorney for the Eastern District of Kentucky. “In doing so, he put his patients at risk, and defrauded the United States. We will use every tool at our disposal to protect vital healthcare programs from those who seek unearned profit at the taxpayers’ expense.”
“Windsor placed patients at risk by claiming that he was monitoring the neurological health of patients during surgery when he actually had an unqualified medical assistant do the work,” said John Horn, U. S. Attorney for the Northern District of Georgia. “Windsor unfortunately put his own interests above the health and safety of his patients.”
“Providing medically unnecessary services to a vulnerable population, such as Medicare beneficiaries, places patients at risk and jeopardizes millions of taxpayer dollars,” said Derrick Jackson, Special Agent in Charge of the U.S. Department of Health & Human Services, Office of Inspector General. “HHS-OIG is committed to safeguarding the federal health care programs and the patients receiving medical services. Today’s settlement should send a message to others who profit from schemes abusing patient safety that we will pursue justice for our beneficiaries and the programs.”
“The announced monetary settlement involving Dr. Robert Windsor is a direct result of several years of hard work by federal agents and prosecutors as they pursued and enforced rampant violations of the federal False Claims Act. The FBI continues to play a key role in identifying, investigating, and presenting for prosecution individuals such as Dr. Windsor who target and negatively impact our federal health care programs,” said David J. LeValley, Special Agent in Charge, FBI Atlanta Field Office.
“This settlement highlights the commitment of the Defense Criminal Investigative Service (DCIS) and its law enforcement partners to protect the integrity of the Department of Defense (DoD) health care program,” said Special Agent in Charge John F. Khin, Southeast Field Office. “DCIS aggressively investigates health care providers that defraud the DoD, to preserve American taxpayer dollars intended to care for our Warfighters, their family members, and military retirees.”
“The Georgia Department of Law will continue to work with our federal and local partners to pursue resolutions against those who threaten the medical care of Georgia citizens and misuse taxpayer dollars,” said Chris Carr, Attorney General for the State of Georgia.
The government alleges that Dr. Windsor engaged in two schemes. First, the government alleges that Dr. Windsor caused the submission of false claims to Medicare, TRICARE, and FEHBP for the online, real time intraoperative monitoring of surgeries that Dr. Windsor did not personally monitor, that were not monitored by a physician, and that Dr. Windsor falsely represented had been monitored by him during the period from January 1, 2008 through July 22, 2013. On October 24, 2016, Dr. Windsor was sentenced to three years, two months in federal prison and three years of supervised release in connection with this conduct.
The government also alleges that Dr. Windsor submitted or caused the submission of false claims to Medicare, the Georgia and Kentucky Medicaid programs, TRICARE, and FEHBP for medically unnecessary balance tests, nerve conduction and electromyography procedures, and qualitative drug screens performed in Georgia and Kentucky during the period from January 1, 2010 through June 30, 2014.
In order to satisfy the $20 million consent judgment, Dr. Windsor will sell all but one of his residential and commercial properties and pay the net sale proceeds to the government. Dr. Windsor will also sell certain other assets, including two boats and four jet skis, and pay the net sale proceeds to the government.
The settlement resolves two lawsuits filed by three whistleblowers, Kris Frankenberg, Stephanie Herder, and Bradley Davis, under the qui tam provisions of the False Claims Act. Under the Act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. lawsuits resolved are captioned United States ex rel. Frankenberg v. Windsor et al., No. 1:12-cv-3114 (N.D. Ga.), and United States ex rel. Herder et al. v. National Pain Care, Inc., et al., No. 14-cv-00221 (E.D. Ky.).
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.4 billion through False Claims Act cases, with more than $19.6 billion of that amount recovered in cases involving fraud against federal health care programs.
This case was investigated by the U.S. Attorney’s Office for the Northern District of Georgia, the U.S. Attorney’s Office for the Eastern District of Kentucky, the U.S. Department of Health & Human Services Office of Inspector General, the Federal Bureau of Investigation, the Defense Criminal Investigative Service, and the Kentucky Office of Attorney General’s Medicaid Fraud and Abuse Control Unit.
The civil settlement was reached by Assistant United States Attorneys Lena Amanti (Northern District of Georgia) and Paul McCaffrey (Eastern District of Kentucky).
Owner of Electrical Contracting Firms Received Two Year Prison Sentence for Tax FraudRead the Press Release
Joseph White, 48, of Newtown Pennsylvania was sentenced today to a 2-year term of imprisonment and ordered to pay $1.2 million in restitution by United States District Court Judge Gerald A. McHugh. The sentence arose from Joseph White’s guilty plea to a Criminal Information which charged him with willfully attempting to evade the payment of taxes announced Acting United States Attorney Louis D. Lappen.
According to the Criminal Information, Joseph White was the owner of PCE Electric Corporation and Thomas Edison Electric Corporation, located in Southampton, Pennsylvania from 2000 through 2011. The Criminal Information further charged that Joseph White diverted funds from his two corporations which he used for personal consumption without accounting, for tax purposes, for the income that he had diverted from his two corporations.
In addition to engaging in a corporate diversion scheme, the Criminal Information further charged that Joseph White registered the title to multiple vehicles that he purchased in the name of HAPPE, a partnership that he formed and registered with the Nevada Secretary of State. In addition to imposing a prison sentence up Joseph White, Judge McHugh ordered White to attend Gamblers Anonymous after he is released from prison while serving a period of supervised release.
“This sentence should send a clear message; schemes to evade the payment of taxes are a violation of the Federal Tax laws and the consequences of such schemes can and will result in jail time.” said Gregory Floyd, Acting Special Agent in Charge IRS Criminal Investigation, Philadelphia Field Office.
The case was investigated by the Internal Revenue Service’s Criminal Investigation Division Philadelphia Field and was prosecuted by Assistant United States Attorney Floyd J. Miller
Okmulgee Man Sentenced to 24 Months for Stealing Firearms from Licensed DealerRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that DILLAN JAMES PARKER, age 24, of Okmulgee, Oklahoma, was sentenced to 24 months imprisonment, and 3 years of supervised release for STEALING FIREARMS FROM A FEDERAL FIREARMS LICENSED DEALER, in violation of Title 18, United States Code, Sections 924(m) and 2.
The Indictment alleged that on or about May 12, 2016, within the Eastern District of Oklahoma, the defendant, did knowingly steal firearms from Richy’s Gun & Pawn, a federal licensed firearms dealer located in Checotah, Oklahoma.
The charge arose from an investigation by the Checotah Police Department, the Okmulgee Police Department, the Okmulgee District Attorney’s Office, the Okmulgee County Sheriff’s Office, the Muskogee County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Dean Burris represented the United States.
Novi Restaurant Owner and Wife Plead Guilty to Harboring Undocumented WorkersRead the Press Release
The owner of a Novi restaurant and his wife pleaded guilty today to conspiracy and harboring undocumented workers for commercial advantage and private financial gain, announced United States Attorney Barbara L. McQuade.
McQuade was joined in the announcement by Acting Special Agent in Charge Steve Francis, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI) and Chief David Molloy, Novi Police Department.
Roger Tam, 56, and his wife, Ada Lei, 49, of Novi, entered their guilty pleas before U.S. District Judge Marianne O. Battani in Detroit.
"Today the principal defendants were convicted for using illegal labor to operate restaurants in metro Detroit," said Steve Francis, acting special agent in charge of HSI Detroit. "These guilty pleas should stand as a warning to employers who knowingly hire and employ illegal aliens that they will be held accountable for their actions.”
“These defendants are accepting responsibility for harboring undocumented workers and conspiracy, but we disagree about the appropriate sentencing guidelines that apply,” McQuade said. “At the sentencing hearing, the United States will seek a sentencing enhancement for creating a substantial risk of death or serious bodily injury to reflect the seriousness of the offense.”
According to court records, HSI special agents and officers with the Novi Police Department executed federal and state search warrants at a Novi residence owned by the Tams where five Mexican nationals died as a result of a fire that occurred on January 31, 2016. Department of Homeland Security databases revealed that all five men were illegally present in the United States.
Evidence obtained during the course of the investigation showed that the five Mexican nationals were hired by the defendants to work at their restaurant, Kim’s Garden, in Novi. As a benefit of their employment, the Mexican nationals resided at the couple’s Novi home and were transported to and from the restaurant for work. Tam admitted that the deceased individuals were employees at Kim’s Garden, that they were paid in cash, and that they were allowed to reside in the basement of Tam’s home.
The Tams each face up to 10 years in prison and a $250,000 fine. Sentencing has been set for June 13, 2017.
This case was investigated by the Novi Police Department and HSI with assistance from ICE’s Enforcement and Removal Operations (ERO), U.S. Customs and Border Protection’s Border Patrol and the Oakland County Sherriff’s Office
New Hampshire Asbestos Abatement Company Pleads Guilty to Defrauding Union Benefit FundsRead the Press Release
BOSTON – An asbestos removal company pleaded guilty today in connection with an illegal “double breasted shop” scheme aimed at enabling them to defraud the Massachusetts Laborers Benefit Fund (MLBF). In this case, the company utilized a second corporate entity to pay union members at non-union rates without union benefits.
AQE, Inc. of Windham, NH, pleaded guilty to 18 counts of mail fraud, one count of benefit fund embezzlement, and 18 counts of filing false documents with an ERISA fund, after being indicted in January of 2016. U.S. District Court Judge Patti B. Saris scheduled sentencing for May 4, 2017.
AQE, Inc. employed members of the Tewksbury Local 1421 of the Laborers International Union of North America. It paid members of Local 1421 for jobs which required union participation from the AQE, Inc. payroll which was a union signatory corporation. When the jobs did not require a union signatory company, union members were paid from the payroll of Air Quality Experts, Inc.—a separate entity used as part of AQE, Inc.’s single business. In these instances, union members did not receive union rates, and benefits were not paid by AQE, Inc. to the MLBF, which provides medical and pension benefits to 8,000 laborers and their families in Massachusetts. AQE, Inc. sent “remittance reports” to the MLBF which failed to report thousands of hours worked by members of Local 1421. By significantly under reporting the hours worked by union members, AQE, Inc. failed to pay hundreds of thousands of dollars to the MLBF.
AQE, Inc. has agreed to pay $500,000 in restitution to the MLBF as part of the plea.
The charging statutes each provide for a sentence of at least one year, and no greater than five years of probation, a fine of $500,000 or twice the loss or gain from the offense, and restitution. 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 D. Weinreb; Cheryl Garcia, Special Agent in Charge of the Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigation, New York Region; and Susan Hensley, Regional Director of the Department of Labor, Employee Benefits and Security Administration, made the announcement today. Assistant U.S. Attorneys Fred M. Wyshak, Jr. and Ryan M. DiSantis, of Weinreb’s Public Corruption Unit, are prosecuting the case.
Muskogee Man Sentenced to 24 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that TRAVIS DANIEL PHILLIPS, age 37, of Muskogee, Oklahoma, was sentenced to 24 months imprisonment, and 36 months of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about January 19, 2016, within the Eastern District of Oklahoma, the defendant, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm which had been shipped and transported in interstate commerce.
The charge arose from an investigation by the Muskogee Police Department, and the Federal Bureau of Investigation.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Rob Wallace represented the United States.
Morristown Resident Sentenced to 262 Months in Federal Prison for Role in Methamphetamine ConspiracyRead the Press Release
GREENEVILLE, Tenn. – On Jan. 31, 2017, Jason Wayne Helton, a.k.a. Crack Baby, 33, of Morristown, Tenn., was sentenced by the Honorable R. Leon Jordan, U.S. District Court Judge, to serve 262 months in federal prison following a conviction for his role in a conspiracy to distribute methamphetamine in east Tennessee.
According to his plea agreement on file with U.S. District Court, Helton sold quantities of methamphetamine to an individual working on behalf of law enforcement on three occasions between December 2015 and March 2016. In February 2016, a federal search warrant was executed at a residence in Stone Mountain, Ga., where Helton was present and scheduled to obtain and transport an ounce and a half of methamphetamine back to Tennessee. Another federal search warrant was executed at Helton’s residence in Morristown in March 2016 which resulted in the seizure of an additional quantity of methamphetamine.
Law enforcement agencies participating in the investigation included the Federal Bureau of Investigation, Grainger County Sheriff’s Office, Hamblen County Sheriff’s Office, Morristown, Tennessee Police Department and the Third and Fourth District Judicial Drug Task Forces. Assistant U.S. Attorney Wayne Taylor represented the United States.
This case was a result of the Department of Justice’s Organized Crime and Drug Enforcement Task Force (OCDETF) program, the centerpiece of the Department of Justice’s drug supply reduction strategy. OCDETF was established in 1982 to conduct comprehensive, multi-level attacks on major drug trafficking and money laundering organizations. Today, OCDETF combines the resources and expertise of its member federal agencies in cooperation with state and local law enforcement. The principal mission of the OCDETF program is to identify, disrupt, and dismantle the most serious drug trafficking and money laundering organizations and those primarily responsible for the nation’s drug supply.
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Moline Man Charged with Falsifying Records, Making False Statements Under Oath in Bankruptcy ProceedingsRead the Press Release
ROCK ISLAND, Ill. -- A Moline, Ill., man, Samir A. Patel, 48, made his initial appearance in federal court today on bankruptcy fraud charges. Patel, of the 3600 block of 73rd Street, was arrested yesterday. U.S. Magistrate Judge Stephen B. Jackson, Jr., ordered that Patel remain detained pending a detention hearing on Feb. 6. Trial was set on Mar. 27, in Peoria, before Chief U.S. District Judge James E. Shadid.
According to the indictment, in June 2013, Patel filed a bankruptcy petition in the Central District of Illinois to discharge his debts under Chapter 7 of the U.S. Bankruptcy Code. The indictment alleges that in August and September 2013, Patel provided the Bankruptcy Trustee with altered bank statements and summaries of his bank account.
The indictment also alleges that Patel falsely testified under oath in a bankruptcy proceeding, a September 2013 meeting of creditors, that a $5,000 wire transfer deposit into his account was a loan from a friend of his wife to help the couple pay living and business expenses. As alleged in the indictment, the deposit was actually a $315,000 wire transfer from a law firm related to a business transaction and which Patel was attempting to conceal from creditors and the Bankruptcy Trustee.
The charges resulted from a referral by the U.S. Trustee for Indiana and Central and Southern Illinois (Region 10) to the U.S. Attorney for the Central District of Illinois. The charges were investigated by the U.S. Postal Inspection Service and the IRS Criminal Investigation Division, in collaboration with the Central Illinois Bankruptcy Fraud Working Group coordinated by the U.S. Trustee. Assistant U.S. Attorney John K. Mehochko is prosecuting the case.
“This case is an example of the collaborative efforts of the Bankruptcy Fraud Working Group and other law enforcement partners to combat fraud and abuse in our nation’s bankruptcy system,” stated Nancy J. Gargula, U.S. Trustee for Central Illinois, Southern Illinois and Indiana (Region 10.) “I am grateful to Acting U.S. Attorney Hansen and our law enforcement partners for their strong commitment to combating fraud and abuse in bankruptcy cases.”
If convicted, the statutory penalty for each count of altering records in bankruptcy (seven counts) is up to 20 years in prison; for falsification of records in bankruptcy (one count) and making false statements under oath in bankruptcy proceedings (one count) the penalty is up to five years in prison. The maximum statutory penalty for each offense charged is prescribed by Congress and is provided for informational purposes as sentencing is determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
The U.S. Trustee Program is the component of the Justice Department that protects the integrity of the bankruptcy system by overseeing case administration and litigating to enforce the bankruptcy laws. Region 10 is headquartered in Indianapolis, with additional offices in South Bend, Ind., and Peoria, Ill.
Miami Resident Sentenced to Prison in Stolen Identity Tax Fraud SchemeRead the Press Release
Defendant’s mother, a postal employee, provided him with stolen tax refund checks from the mail
A Miami resident was sentenced to 24 months in prison, to be followed by four years of supervised release, for his participation in stolen identity tax fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), Max Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), Rick Maglione, Chief, Fort Lauderdale Police Department, and Timothy Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), made the announcement.
David Earl Tucker, 30, of Miami, previously pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371, and one count of aggravated identity theft, in violation of Title 18, United States Code, Section l028A(a)(1).
According to court documents, during a traffic stop of a vehicle that Tucker was driving, the defendant presented law enforcement with a fake Texas driver's license in another person's name. Tucker was taken into custody, and a tax refund Treasury check in another individual’s name was found during an inventory search of the vehicle. Further investigation revealed that the tax refund check was stolen by a postal employee, Tara Marshea Tucker, 47, of Miami, the mother of David Tucker.
According to court records, Tara Tucker stole mail while in the performance of her duties as a postal employee. On separate occasions, Tara removed two tax refund Treasury checks and gave them to her son, David Tucker. Tara Tucker was supposed to receive a percentage of each check that she gave to her son. Tara Tucker improperly removed a total of 4 to 5 checks from the mail stream.
Tara Tucker previously pled guilty to one count of conspiracy to commit an offense against the United States, in violation of Title 18, United States Code, Section 371. On November 2, 2016, Tara Tucker was sentenced to 4 months in prison and 4 months of home confinement, to be followed by two years of supervised release.
The intended loss amount for the scheme was $12,139.16.
Mr. Ferrer commended the investigative efforts of IRS-CI, USPS-OIG, Fort Lauderdale Police Department and TIGTA. The case was prosecuted by Assistant U.S. Attorneys Joshua S. Rothstein, Ilham A. Hosseini and Anne P. McNamara.
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.
Mexican national pleads guilty to federal drug crimeRead the Press Release
HUNTINGTON, W.Va. – A Mexican national pleaded guilty today to a federal drug crime, announced United States Attorney Carol Casto. Moises Gamboa, 52, of Rocky Point, Mexico, entered his guilty plea to aiding and abetting the possession with intent to distribute 100 kilograms or more of marijuana.
Gamboa admitted that in 2010, while in Mexico, he arranged for the transportation of 660 pounds of “very good marijuana” to Nitro. The drugs were to be concealed in the walls of a motorcycle trailer. Gamboa also admitted that he informed an individual cooperating with law enforcement that the driver would make contact to set up a meeting. The driver subsequently told the cooperating individual that he would be arriving in West Virginia on March 5, 2010. When the driver arrived in Nitro, law enforcement seized the marijuana hidden in the motorcycle trailer.
Gamboa faces up to 40 years in federal prison when he is sentenced on May 22, 2017.
This prosecution was made possible through the cooperative efforts of several investigating agencies, including the Putnam County Sheriff’s Department, the Metropolitan Drug Enforcement Network Team, the Muskingum County Sheriff’s Department in Ohio, the United States Marshals Service, the Kentucky State Police, the Indiana State Police, the Huntington Police Department, and the Policia Federal Ministerial of Mexico. Several Drug Enforcement Administration agents investigated this case, including agents from Charleston, Columbus, Phoenix, Tucson, Chicago, Denver, and Hermosillo, Mexico.
Assistant United States Attorney Monica D. Coleman is in charge of the prosecution. The plea hearing was held before Chief United States District Judge Robert C. Chambers.
This case is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Mexican Citizen Travelling in Las Vegas Sentenced to 10 Years for Possession of HeroinRead the Press Release
LAS VEGAS, Nev. – A Mexican citizen who was stopped for a traffic violation and subsequently found with heroin concealed in his vehicle was sentenced today to 120 months in prison, announced United States Attorney Daniel G. Bogden of the District of Nevada.
“The defendant concealed the heroin in different locations in his vehicle including a bean bag chair. Along with the work of our law enforcement partners, the U.S. Attorney’s Office is committed to preventing illegal drugs hitting our streets,” said U.S. Attorney Bogden.
According to court documents, in April 2015, Jesus Antonio Diaz-Flores, 37, was stopped for a traffic violation on I-15, near mile marker 60, by a Nevada Highway Patrol Trooper. Following Diaz-Flores’s consent to search the vehicle, a narcotics detector dog alerted the trooper who recovered five bundles containing a brownish-black tar-like substance hidden inside PVC pipe and a bean bag chair in the vehicle. The bundles were sent to the Las Vegas Metropolitan Police Department lab where the contents tested positive for heroin and weighed 2494.90 grams or approximately 5.5 pounds. Diaz-Flores admitted that he knew he was transporting heroin and that the heroin would later be distributed to other individuals.
Diaz-Flores was charged on April 21, 2015, and he pleaded guilty on July 11, 2016.
The case was investigated by the Drug Enforcement Administration and the Nevada Highway Patrol; and prosecuted by Assistant U.S. Attorney Susan Cushman.
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Mescalero Apache Man Sentenced to Prison for Escaping from Half-Way House and Failing to Update Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Tyree Brent Mariano, 26, an enrolled member of the Mescalero Apache Nation residing in Albuquerque, N.M., was sentenced today in federal court to 21 months in prison followed by three years of supervised release for escaping from a half-way house and violating the Sex Offender Registration and Notification Act (SORNA). Mariano will also be required to register as a sex offender when he completes his prison sentence.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Mariano was arrested on May 21, 2016, on an indictment charging him with violating SORNA by failing to update his sex offender registration and escaping from a half-way house where he was confined following his conviction on a child sexual abuse charge. According to the indictment Mariano failed to update his registration between July 8, 2015 and March 8, 2016, in Bernalillo County, N.M.
On Aug. 3, 2016, Mariano pled guilty to the indictment. In entering the guilty plea, Mariano admitted that he was a sex offender as a result of his child sexual abuse conviction on April 19, 2012. On June 11, 2015, Mariano registered as a sex offender with the Bernalillo County Sheriff’s Office and was residing in a halfway house in Albuquerque as a condition of his supervised release following his release from prison. Mariano admitted that on June 27, 2015, he left the halfway house without permission and did not return. He further admitted that he did not notify the Sheriff’s Office of his change of residence as required under SORNA when he absconded from the halfway house.
This case was investigated by the U.S. Marshals Service and the Bernalillo County Sheriff’s Office. Assistant U.S. Attorney Alexander B. Shapiro of the U.S. Attorney’s Las Cruces Branch Office prosecuted the case.
Mescalero Apache Man Sentenced for Federal Arson ConvictionRead the Press Release
ALBUQUERQUE – Theodore George Torres, 28, an enrolled member of the Mescalero Apache Nation who resides in Mescalero, N.M., was sentenced today in federal court in Las Cruces, N.M., to 36 months in prison followed by three years of supervised release for his conviction on an arson charge. Torres also was ordered to pay restitution in the amount of $86,299.42 to the victim of his criminal conduct.
Torres was arrested on Dec. 15, 2015, on a federal criminal complaint charging with arson, and was indicted on that same charge on April 21, 2016. According to court filings, Torres set fire to the residence of a Mescalero Apache woman. Torres committed the crime on Oct. 30, 2014, on the Mescalero Apache Indian Reservation in Otero County, N.M. Torres previously had been arrested on related tribal charges on Dec. 11, 2014, and remained in tribal custody until his arrest on the federal arson charge.
On July 12, 2016, Torres pled guilty to the indictment, and admitted that on Oct. 30, 2014, he maliciously set fire to a dwelling located in Mescalero Apache Reservation. Torres acknowledged that the fire caused $86,299.42 worth of damage.
This case was investigated by the Mescalero Agency of the BIA’s Office of Justice Services and was prosecuted by Assistant U.S. Attorney Aaron O. Jordan of the U.S. Attorney’s Las Cruces Branch Office.
The case was brought pursuant to 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 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.
Martinsville Man Sentenced on Child Pornography ChargesRead the Press Release
Danville, VIRGINIA – A Martinsville man, who produced images and videos of himself raping a four-year-old girl, was sentenced yesterday in the United States District Court for the Western District of Virginia in Danville, Acting United States Attorney Rick A. Mountcastle announced.
Mario Ahlazshuna Dillard, 31, of Martinsville, Va., previously pled guilty to three counts of production of child pornography and one count of receipt and distribution of child pornography. Yesterday in District Court, Dillard was sentenced to 35 years in federal prison, followed by lifetime supervised release.
According to evidence presented at today’s hearing by Assistant United States Attorney Laura D. Rottenborn, and at previous hearings, Dillard was a high-volume viewer of child pornography and a member of multiple websites that allowed him to access, download and distribute child pornography. However, Dillard’s obsession with child pornography did not stop with simply viewing images. On many separate occasions he filmed himself sexually assaulting a 4-year-old girl he cared for on a regular basis.
Law enforcement recovered at least four separate videos depicting these sexual assaults. One such video, which showed the victim performing oral sex on Dillard while cartoons played in the background, was distributed by the defendant on June 9, 2015, via the media sharing application, WhatsApp Messenger.
The investigation of the case was conducted by the Federal Bureau of Investigation with the assistance of the Henry County Sheriff’s Office. Assistant United States Attorneys Laura D. Rottenborn and Daniel Bubar prosecuted the case for the United States.
Marrero Woman Charged with $536,724 in Health Care FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that MONICA SYLVEST, age 52, of Marrero, was charged today in a Bill of Information for health care fraud.
According to the Bill of Information, SYLVEST worked as a Practice Administrator for a local pediatric clinic from August 2014 through September 2016. During her employment, SYLVEST embezzled and diverted to her personal use approximately $536,724 in medical reimbursements from the Medicaid program in connection with the delivery of and payment for health care benefits, items, and services paid to the clinic. As the Practice Administrator, SYLVEST utilized a business credit card issued by American Express and made over $536,000 in unauthorized charges to purchase several luxury items including a Harley Davidson motorcycle, custom diamond jewelry, and collectible artwork. SYLVEST then accessed her employer’s bank account containing the Medicaid reimbursements to make transfers and payments to cover the illegal purchases. The Bill of Information further alleges SYLVEST disguised the payments made to American Express as “biologicals” or “vaccinations” in order to make it appear that the expenses were related to the normal operations of the clinic.
If convicted, SYLVEST faces a sentence of up to ten years imprisonment, followed by a term of supervised release of up to three years, and a $250,000.00 fine.
U.S. Attorney Polite reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. The prosecution of this case is being handled by Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba.
Manchester Man Pleads Guilty to Bank RobberyRead the Press Release
CONCORD, N.H. – United States Attorney, Emily Gray Rice announced that Ryan Freeman, 27, of Manchester, New Hampshire, pleaded guilty in federal court today to one count of bank robbery.
Information based on court filings and statements made at the change of plea hearing established that Freeman entered the TD Bank on South River Road in Bedford, New Hampshire on July 26, 2015. He approached a teller, demanded $10,000, and threatened to blow her brains out if she did not comply. The teller provided a sum of money to Freeman and he left the bank. Witnesses saw him leave the bank in a gold Volvo, which was later recovered after being abandoned near Exit 4 on Interstate 293. Images from the bank clearly established that Freeman committed the robbery.
A sentencing hearing has been scheduled for March 1, 2017 at 11:00 a.m.
The case was investigated by the Bedford Police Department with the assistance of the Manchester Police Department, the New Hampshire State Police Forensics Laboratory, and the Federal Bureau of Investigation. case was prosecuted by Assistant United States Attorney Don Feith.
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Local Woman Sentenced and Ordered to Pay $1.8 Million for Complex Fraud SchemeRead the Press Release
Assistant U. S. Attorney Christopher P. Tenorio (619) 546-8413
NEWS RELEASE SUMMARY – January 30, 2017
SAN DIEGO – Deborah Tumlinson of Valley Center was sentenced yesterday to a year and a day in custody for her participation in a fraudulent scheme devised after the 2007 Witch Creek Wildfire. U.S. District Judge Janis L. Sammartino also ordered Tumlinson to pay restitution in the amount of $1,838.742.24.
On May 13, 2016, Tumlinson pleaded guilty to a wire fraud scheme that ran from May 2010 to April 2013. Part of the scheme involved obtaining loan proceeds from U.S. Claims (Lifeline Funding, LLC), a funding company based in Moorestown, New Jersey that provides loans for individuals who can use expected or actual lawsuit proceeds as collateral. To obtain a loan from U.S. Claims in the amount of $750,000, Tumlinson made false representations, and caused others to do the same.
On May 20, 2010, Tumlinson caused her attorney, Carter Johnston, to send a letter to her real estate broker, which misrepresented that Tumlinson and her husband had reached a settlement in their pending lawsuit against SDG&E. The lawsuit (Edward Malone, et al. v. SDG&E, et al., Case No. 37-2008-00081779-CU-PO-CTL in San Diego Superior Court) was based on allegations that the Tumlinsons’ former residence in Ramona, California, was damaged by the Witch Creek Wildfire on October 21, 2007. Tumlinson caused Johnston to send a second letter to her real estate agent on September 30, 2010, which misrepresented that the Tumlinsons had obtained funding for the purchase of a new residence in Valley Center, California. Mr. Johnston has since been disbarred by the State of California.
On October 2, 2010, Tumlinson caused Johnston to send a letter to U.S. Claims, misrepresenting that the Tumlinsons had settled the SDG&E lawsuit for $2,490,000. Three days later, Tumlinson falsely told U.S. Claims that a court-appointed mediator in the SDG&E lawsuit had already awarded $2.4 million to the Tumlinsons. The next day, the Tumlinsons signed a Purchase Agreement in support of a U.S. Claims loan application. The Purchase Agreement falsely provided that Johnston represented the Tumlinsons in connection with their “settled claim” in the SDG&E lawsuit when, in fact, they were represented at that time by other attorneys, and no settlement had been obtained which could be used as collateral to secure the U.S. Claims loan. The Tumlinsons received a loan from U.S. Claims in the amount of $750,000, which they never repaid.
After receiving the loan proceeds from U.S. Claims, Tumlinson wire-transferred $550,000 into escrow on October 8, 2010, for the purchase of the Valley Center property. Using the equity from the Valley Center property, Tumlinson sought a new loan from Seaside Funding Inc., a mortgage broker, based in Carlsbad, California. In December 2010, Tumlinson signed, and caused her husband to sign, Seaside Funding loan documents for a $250,000 home-equity loan. The application and supporting documents falsely represented that the Tumlinsons did not intend to live in the Valley Center property as their primary residence, and that it would be used as a rental property that generated income necessary to make loan payments. As a result of the misrepresentations, Seaside Funding funded the requested loan, which the Tumlinsons never repaid. The loan proceeds were later recovered when Seaside Funding foreclosed on the Valley Center property.
At sentencing, Judge Sammartino noted that Tumlinson’s property did receive some damage from the 2007 fire, but that her subsequent actions made her “pain and anguish spread to others.”
“The defendant suffered losses during a terrible wildfire, like many others did,” said Acting U.S. Attorney Alana W. Robinson. “But she exploited her own tragedy and the compassion of others, and in the process made sure it became someone else’s tragedy, too. The people she fleeced paid a high price, and for that, she will pay a high price.”
Special Agent in Charge Eric S. Birnbaum said, “The San Diego Division of the FBI remains committed to uncovering these complex fraud schemes and bringing those to justice who would attempt to cheat the banking system for personal gain.”
DEFENDANT Case Number: 14CR2978-JLS
Deborah Tumlinson Age: 55
SUMMARY OF CHARGE
Title 18, United States Code, Section 1343 (Wire Fraud Scheme)
Maximum penalty: 20 years of custody; $100,000 Fine
AGENCY
Federal Bureau of Investigation
Littleton Woman Pleads Guilty for Oil Investment SchemeRead the Press Release
DENVER – Jill M. Evans, age 51, of Littleton, Colorado, recently pled guilty before U.S. District Court Judge John L. Kane to wire fraud and money laundering charges announced the United States Attorney’s Office, IRS – Criminal Investigation (IRS-CI) and the Federal Bureau of Investigation (FBI). Evans was indicted by a federal grand jury on May 21, 2015.
According to the indictment and plea agreement, in September 2011 and continuing through May 2015, Evans devised a scheme to defraud at least eight individuals whom she solicited to invest in alleged oil transactions. Evans informed or caused others to inform potential investors that she or one of her companies, Paramount Mortgage or Evcom, had rights or agreements related to the purchase and resale of petroleum products, including diesel oil or jet fuel. She claimed that the oil deals could not be completed until certain fees or other expenses related to the deals could be paid.
Evans falsely told investors they would receive a return on their investment ranging from fifty percent to fifty times their original investment within a matter of days or weeks. She told investors that their funds would be held in an escrow account and would be fully refundable if the oil deal did not close. Evans instructed investors to transfer funds to bank accounts. Some investors’ funds were not used as represented and were also sent to personal bank accounts that Evans controlled. Of those funds transferred to personal accounts she controlled, she used those funds for her own personal expenses.
She would tell investors that oil deals were nearing successful completion and that disbursements of profits were imminent. She sent e-mails attaching fabricated court documents regarding the status of civil litigation purporting to award Evans or related parties substantial sums of money. When the oil deals failed to close, she told investors that she would be able to pay investors from these proceeds.
Furthermore, Evans concealed from investors her December 2011 criminal indictment by a State of Colorado grand jury and her subsequent March 2013 criminal conviction for theft and forgery. Evans’s bond conditions prohibited her from entering into any financial transactions in excess of $1,000, and the terms of her subsequent state sentence prohibited her from investing money, entering into any financial contracts or arrangements, and having access to or control of any funds of any individual.
Evans pled guilty to one count of wire fraud and one count of money laundering. Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000. Money laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000. Evans plea agreement stipulates restitution for this case is $2,094,500. Evans is scheduled to be sentenced by Judge Kane on April 21, 2017.
This case was investigated by IRS – Criminal Investigation and the Federal Bureau of Investigation. The case is being prosecuted by Assistant U.S. Attorney Anna K. Edgar.
Leader of Heroin Trafficking OrganizationRead the Press Release
WILMINGTON – The United States Attorney’s Office announced today that ROBERT BOONE, 43, of Leland, North Carolina, was sentenced in federal court to 360 months imprisonment after having previously been convicted of conspiracy to distribute one kilogram or more of heroin and conspiracy to launder monetary instruments.
An investigation by federal and state law enforcement agencies revealed that BOONE operated a large scale drug trafficking organization (“DTO”) in his hometown of Paterson, NJ, which BOONE relocated to Wilmington, NC around 2012. From 2012 to 2015, the DTO “flooded” Wilmington with kilogram quantities of heroin. Couriers were employed to transport the heroin and heroin proceeds between New Jersey and Wilmington. The DTO utilized multiple bank accounts, wire transfers, and prepaid debit cards to launder hundreds of thousands of dollars in drug proceeds.
Multiple co-conspirators were charged and have already been sentenced in federal court in connection with this prosecution:
AARON VEAL was convicted of conspiracy to distribute heroin and sentenced to 60 months imprisonment. JAMES TOWNSEND was convicted of conspiracy to distribute heroin and sentenced to 84 months imprisonment. CRAIG DENSON was convicted of conspiracy to distribute heroin and sentenced to 180 months imprisonment. LARRY K. JOHNSON was convicted of money laundering conspiracy and sentenced to 96 months imprisonment. CHRISTOPHER ANTUAN JONES was convicted of conspiracy to distribute heroin and sentenced to 105 months imprisonment. DANIELLE JONES was convicted of conspiracy to distribute heroin and sentenced to 78 months imprisonment. SYRJAH KASHIK ALSTON was convicted of conspiracy to distribute heroin and money laundering conspiracy and sentenced to 96 months imprisonment. TAKEYAH ONI BAKER was convicted of money laundering conspiracy and sentenced to 42 months imprisonment. OCTABIA LAUREN BOONE was convicted of money laundering conspiracy and sentenced to 42 months imprisonment. FELICIA HALL was convicted of operating an unlicensed money transmitting business and sentenced to 3 years probation.
This case was brought as a part of an Organized Crime Drug
Enforcement Task Force (OCDETF) Operation entitled WoofPack,
investigating importers and multi-level distributors of heroin,
cocaine, crack cocaine and gang activity associated with this
DTO.
Investigation of this case was conducted by the Federal Bureau of Investigation – Wilmington Safe Streets Task Force, the Wilmington Police Department, the New Hanover County Sheriff’s Office, the North Carolina State Highway Patrol, the Sampson County Sheriff’s Office, and the Virginia State Police. Assistant United States Attorney Toby Lathan handled the prosecution on behalf of the Eastern District of North Carolina.
Lead Defendant in Series of Robberies, Kidnappings Pleads GuiltyRead the Press Release
Charlottesville, VIRGINIA – A Greene County man, who along with others committed a series of armed and violent robberies across Albemarle and Greene counties, pled guilty today in the United States District Court for the Western District of Virginia in Charlottesville to federal firearms charges, Acting United States Attorney Rick A. Mountcastle announced.
Terence Tyree, 19, of Greene County, Va., pled guilty to two counts of using and carrying a firearm during and in relation to a crime of violence. Tyree faces a mandatory minimum sentence of 30 years in federal prison when he is sentenced April 12, 2017.
Tyree and five others were indicted late last year following a series of violent, armed robberies and kidnappings at local pizza chain restaurants, convenience stores, and a private residence in Albemarle and Greene County. Tyree is the second defendant directly involved in multiple robberies to plead guilty in federal court.
According to evidence presented at today’s hearing by Assistant United States Attorney Christopher Kavanaugh, Tyree admitted that he participated in a robbery of the Papa John’s Pizza on Seminole Trail in Greene County in the early morning hours of June 9, 2016. Surveillance footage and victim testimony would have shown that Tyree and the other two men dressed all in black, carried firearms and covered their faces in masks. They entered the store, displayed their weapons for the employees and demanded cash. The defendants stole cash and one employee’s cell phone.
Less than 10 days later, on June 17, 2016, Tyree and a co-defendant returned to the same Papa John’s Pizza and robbed it at gunpoint, again.
In addition, Tyree admitted today that he and others robbed Domino’s Pizza on Towncenter Lane in Albemarle County on June 27, 2016. In this instance, Tyree and a co-defendant entered the store, dressed in all black with their faces covered with masks. Inside the store, Tyree pointed his firearm at a store employee while his co-defendant, Kentavia Jones grabbed cash and cell phones.
Tyree also admitted that on July 7, 2016 he participated in the robbery of the Domino’s Pizza on Ford Avenue in Greene County. Once at the location, Tyree and another man put masks on their faces, got out of their vehicle, and ran into the store. As in the previous robbery, Tyree pointed his gun at store employees as his co-defendant, Kentavia Jones. As the defendants were running back to the car, a witness said something to the defendants, at which time one of the co-defendants fired a single shot into the air.
On July 18, 2016, Tyree and two co-defendants went to an Albemarle County home to commit an armed robbery, Tyree admitted in court today. The victim was inside, alone, when he heard a loud explosion. When he went to the living room, the victim saw that a propane tank had been thrown through his glass door and three masked individuals, dressed in all black, were in his living room, one of whom was armed with a pistol. Inside the house, the defendants ordered the victim to face the wall as they proceeded to ransack the house. As they were getting ready to leave, the defendants struck the victim in the head, causing him to fall to the floor. Once on the floor, Tyree and the others struck the victim again.
Tyree and the two co-defendants then commanded the victim, at gunpoint, to get into the back seat of his Lexus vehicle, which was then parked in the victim’s garage. All three defendants got into the car, with Tyree in the driver’s seat, and drove to a nearby ATM machine at the Wells Fargo bank located at the intersection of Route 29 and Airport Road in Albemarle County. Upon arrival at the bank, the defendants told the victim to get as much money as he could and return to the car. At that time, however, a second victim was observed in the bank parking lot, having just come from the nearby airport with his luggage still in hand. Tyree’s co-defendant got out of the car, pointed his gun at the traveling passerby, and ordered him to also get into the car. The second victim complied. The victim attempted to get money from the ATM machine but could not, so the victim was ordered to get back into the car.
Tyree then drove his co-defendants and the victims to a nearby 7-11 store. He parked the car, and then went inside and robbed the clerk at gunpoint. Jones drove everyone away from the scene. Soon thereafter, in a nearby neighborhood, the defendants stopped the car and told both victims to get out of the car and both victims complied. The defendants drove away. The defendants later abandoned the vehicle, which was ultimately recovered by law enforcement.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Albemarle County Police Department and the Greene County Sheriff’s Office. Assistant United States Attorneys Christopher Kavanaugh and Ronald M. Huber are prosecuting the case for the United States.
Las Vegas Man Sentenced to Life in Prison for Murdering Drug Supplier During 2013 Marijuana TransactionRead the Press Release
LAS VEGAS, Nev. – Louis Matthews, 35, was sentenced today to life in prison for drug and firearm crimes that resulted in the death of a man during a drug deal at a North Las Vegas apartment in November 2013, announced U.S. Attorney Daniel G. Bogden of the District of Nevada and Special Agent in Charge Jill Snyder of the ATF. United States District Judge James C. Mahan also sentenced Matthews to 10 additional years in prison and five years of supervised release.
“Our United States Attorney’s Office and all our law enforcement partners remain vigilant in efforts to identify violent crime and we will continue to combat it head on to keep our communities safe. As in this case, we will work with our law enforcement partners to address and prevent violent crime issues. We remain committed to pursuing justice for all victims,” said U.S. Attorney Bogden.
“This case is an example of the hard work the Las Vegas Metropolitan Police Department, North Las Vegas Police Department and ATF agents do on a daily basis to protect the public from armed drug traffickers who threaten our neighborhoods,” said ATF Special Agent in Charge Jill Snyder. “At ATF, our goal is to protect our communities from violent criminals, criminal organizations, the illegal use and trafficking of firearms, the illegal use and storage of explosives, acts of arson and bombings, acts of terrorism, and the illegal diversion of alcohol and tobacco products. One of the ways ATF is able to do that is through the successful partnerships we have with other agencies.”
Following a seven-day trial, Matthews was convicted by a jury on Oct. 12, 2016, of one count of conspiracy to possess marijuana with intent to distribute and one count of using a firearm during and in relation to a drug trafficking crime resulting in death.
According to the court records, on Nov. 30, 2013, Matthews and John Thomas III arrived at an apartment on East Cheyenne Avenue in North Las Vegas to participate in a deal to purchase 20 pounds of marijuana from the deceased victim, Luciano Madrigal-Herrera. Also present at the apartment were Julio Nunez and Angel Juarez. The victim showed some of the marijuana to Matthews for inspection, and then went back outside to retrieve the rest. Matthews also left the apartment, stating he was going to get his friend, Thomas, as well as money for the marijuana. The three men returned to the apartment, and then Thomas and Matthews each produced handguns and repeatedly shot the victim during an attempt to rob him of the marijuana, causing his death. The defendants took the marijuana and attempted to flee with it. Nunez, in an attempt to prevent Matthews and Thomas from fleeing with the marijuana, shot at both of them with a sawed-off shotgun, striking both Thomas and his vehicle. Thomas and Matthews were ultimately able to escape the scene. Thomas was apprehended later the same night by the North Las Vegas Police Department after officers discovered that his gunshot-riddled vehicle had been left behind at the scene parked in front of the apartment where Madrigal-Herrera had been killed. Matthews was charged after the ensuing investigation led to his identity as the second suspect.
Three co-defendants were also charged in the scheme. John Thomas III, 25, of Las Vegas, pleaded guilty to conspiracy to possess marijuana with intent to distribute and using a firearm during and in relation to a drug trafficking crime resulting in death, and is awaiting sentencing. Julio Nunez, 28, of Las Vegas, pleaded guilty to one count of conspiracy to possess marijuana with intent to distribute and one count of discharging a firearm during and in relation to a drug trafficking crime and was sentenced to 42 months in prison and five years of supervised release. Angel Juarez, 29, of North Las Vegas, is awaiting trial.
This case was investigated by ATF, the Las Vegas Metropolitan Police Department, and North Las Vegas Police Department. The case was prosecuted by Assistant U.S. Attorneys Phillip N. Smith Jr. and Alexandra M. Michael.
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Kansas Man Indicted on Child Pornography and Sex Tourism ChargesRead the Press Release
A 70-year-old Kansas native who was residing in Panama was indicted today and charged with multiple crimes involving sexual conduct with minors in a foreign country, announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division and U.S. Attorney Kenneth Magidson of the Southern District of Texas.
Jebediah Dishman, 70, of Fredonia, Kansas, was arrested in Houston on Nov. 8, 2016, and originally charged by criminal complaint. He later appeared before U.S. Magistrate Judge Mary Milloy who found him to be a flight risk and ordered him into custody. Today, a grand jury in the U.S. District Court for the Southern District of Texas indicted him on one count each of engaging in illicit sexual conduct with a minor in a foreign country, production of child pornography, sex trafficking of children, and obtaining custody and control of a minor for the purpose of producing sexually explicit visual depictions of the minor.
According to the indictment, from September 2014 through March 2015, Dishman traveled from the United States to the Republic of Indonesia and engaged in illicit sexual conduct with minors. While in Indonesia in February 2015, Dishman allegedly used a minor to produce visual depictions of the minor engaging in sexually explicit conduct. In addition, the indictment alleges that between September 2014 and March 2015, Dishman attempted to recruit and entice minors in the Republic of Indonesia and other countries outside of the territorial jurisdiction of the United States to engage in commercial sex acts.
The charges contained in the indictment are only allegations. The defendant is presumed innocent unless and until he is proven guilty beyond a reasonable doubt in a court of law.
The FBI is investigating this case with the cooperation of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Trial Attorney Elly M. Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Sherri Zack of the Southern District of Texas are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Kansas Man Indicted on Child Pornography and Sex Tourism ChargesRead the Press Release
HOUSTON – A 70-year-old Kansas native who was residing in Panama was indicted today and charged with multiple crimes involving sexual conduct with minors in a foreign country, announced U.S. Attorney Kenneth Magidson and Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Jebediah Dishman, of Fredonia, Kansas, was arrested in Houston on Nov. 8, 2016, and originally charged by criminal complaint. He later appeared before U.S. Magistrate Judge Mary Milloy who found him to be a flight risk and ordered him into custody. Today, a grand jury in the U.S. District Court for the Southern District of Texas indicted him on one count each of engaging in illicit sexual conduct with a minor in a foreign country, production of child pornography, sex trafficking of children and obtaining custody and control of a minor for the purpose of producing sexually explicit visual depictions of the minor.
According to the indictment, from September 2014 through March 2015, Dishman traveled from the United States to the Republic of Indonesia and engaged in illicit sexual conduct with minors. While in Indonesia in February 2015, Dishman allegedly used a minor to produce visual depictions of the minor engaging in sexually explicit conduct. In addition, the indictment alleges that between September 2014 and March 2015, Dishman attempted to recruit and entice minors in the Republic of Indonesia and other countries outside of the territorial jurisdiction of the United States to engage in commercial sex acts.
The FBI is investigating this case with the cooperation of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistant U.S. Attorney Sherri Zack of the Southern District of Texas and Trial Attorney Elly M. Peirson of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) are prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
An indictment is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.
Justice Department Sues to Stop South Florida Tax Return Business and its Preparers from Preparing Tax ReturnsRead the Press Release
A Lauderhill, Florida tax return preparation business, and several of its corporate officers, prepare false tax returns for their customers, according to a new civil lawsuit filed by the Justice Department today. The suit, filed in federal court in Fort Lauderdale, Florida, asks the court to bar Aleluya Universal Accounting Services Inc. (Aleluya) and its officers Frantz Petit-Dos, Luczor Fertilien, and David Joseph from preparing federal income tax returns for others. The government also requests a court order requiring the business and these officers to disgorge the gross receipts they obtained from preparing federal tax returns that make, among other things, false claims.
The complaint alleges that the defendants prepare tax returns that unlawfully understate income tax liabilities and overstate refunds by fabricating and/or exaggerating deductions and tax credits their clients are not eligible to take. For example, the defendants claimed Fuel Tax Credits for customers who did not qualify for this credit, according to the complaint. In particular, Joseph falsely advised one customer that she was eligible for the Fuel Tax Credit because she was self-employed and drove herself to work, according to the complaint. Similarly, Fertilien told the Internal Revenue Service (IRS) that he advised anyone with receipts for gas used in their vehicles could claim the Fuel Tax Credit, according to the complaint.
The government alleges in its complaint that Petit-Dos’s, Fertilien’s, and Joseph’s misconduct predates the creation of Aleluya. Prior to Joseph forming Aleluya in June 2013, Petit-Dos and Fertilien owned a tax return preparation business called Imperial Taxation that was located at the same Lauderhill location as Aleluya, according to the complaint. The complaint alleges that Petit-Dos, Fertilien, and Joseph (a return preparer at Imperial Taxation) prepared false tax returns and committed other violations of the Internal Revenue Code while at Imperial Taxation. Altogether, the complaint alleges that the loss to the U. S. Treasury from the defendants’ activities may be in the millions of dollars.
The IRS is reminding taxpayers that the 2017 individual income tax return filing season began on Jan. 23, 2017, and there is information available on the IRS’s website. Return preparer fraud was one of the IRS’s Dirty Dozen Tax Scams for 2016 and taxpayers seeking a return preparer should remain vigilant. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers.
In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Jefferson County man and Pennsylvania woman convicted for heroin distribution, money launderingRead the Press Release
MARTINSBURG, WEST VIRGINIA – Mark Hanshaw, 27, of Harpers Ferry, West Virginia, and Tiara Adams, 31, of Red Lion, Pennsylvania, were convicted for their roles in a heroin distribution operation, Acting United States Attorney Betsy Steinfeld Jividen, announced.
Hanshaw pled guilty to one count of “Conspiracy to Distribute Heroin.” He faces up to twenty years in prison and a fine of up to $1,000,000. Adams pled guilty to one count of “Conspiracy to Launder Monetary Instruments.” She faces up to twenty years in prison and a fine of up to $500,000. 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 Anna Z. Krasinski prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Eastern Panhandle Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Robert W. Trumble presided.
Jackson State University Agrees to Pay $1.17 Million to Settle False Claims Act AllegationsRead the Press Release
Jackson, Miss - Jackson State University (JSU) has agreed to pay the United States $1.17 million to settle allegations that JSU mismanaged National Science Foundation (NSF) Grants, announced U.S. Attorney Gregory K. Davis and Allison Lerner, Inspector General at the National Science Foundation.
During the time period, June 1, 2006 to September 30, 2011, JSU submitted claims and/or expended funds under NSF Grants and in so doing, impliedly certified that every claim and/or expenditure was supportable, allocable, and allowable and that JSU would maintain adequate records to support these claims and expenditures. In 2012, an audit of the NSF Grants performed under contract for the NSF Office of Inspector General ("NSF-OIG") identified salary and non-salary expenditures that were unallowable, not allocable, and/or had insufficient, inadequate and/or no supporting documentation. A subsequent NSF-OIG investigation determined that, in preparation for the audit, and subsequently in response to the preliminary audit findings, JSU employees fabricated time and effort reports and provided them to the auditors, and in some instances presented inadequate and/or no supporting documentation.
As part of the settlement, JSU has also agreed to take specific steps to prevent these events from reoccurring by instituting a compliance program, which includes a comprehensive training program on time and effort reporting and other aspects of federal grants management, for a five-year period beginning in February.
"Recipients of federally-funded grants must adhere to the regulations applicable to those grants and accurately report the required information. This settlement sends a strong signal to grant recipients that failure to follow the applicable requirements may lead to significant financial consequences," stated Gregory K. Davis, United States Attorney for the Southern District of Mississippi.
Allison Lerner, Inspector General at the National Science Foundation said, "Each year the National Science Foundation awards millions of dollars in grants to institutions to promote promising scientific research. Fabricating information to improperly obtain and spend scarce research dollars will not be tolerated. I commend the U.S. Attorney’s Office for its effort in this settlement, which will require the return of $1.17 million."
This case was the result of an investigation by NSF-OIG. Assistant United States Attorney Kristi H. Johnson and ACE Auditor Kim Mitchell handled the matter for the United States.
The claims settled by this agreement are allegations only, and there has been no determination of liability.
Iowa Nursing Facility, Its Ownership, and Its Management Agree to Pay $100,000 to Resolve Allegations that Residents Received Worthless CareRead the Press Release
The Abbey of Le Mars, Inc., and other individuals with financial interests in the Abbey’s operations, agreed to pay $100,000 to settle allegations they violated the False Claims Act by submitting or causing claims to be submitted to Medicaid when the care provided to nursing facility residents was so grossly substandard that the care was worthless and effectively without value.
The allegations relate to care provided for sixteen residents between January 2009 and February 2015. The government alleged that the care the Abbey provided was grossly substandard in multiple material ways:
- providers failed to address skin conditions and fractures, leading to inadequate care and additional medical costs;
-
residents were subjected in the first instance to physical restraints and unnecessary medications rather than other types of interventions;
-
providers utilized anti-psychotic medications to numb or sedate residents so as to decrease residents’ needs; and
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residents were not given adequate nourishment or bathing and toileting care, leading to infections and impactions necessitating emergency room visits.
The individuals signing the agreement include Leo Lenaghan, who owns the building where the Abbey operates; John Florina, Jr., who was a paid consultant to the Abbey; Janet Howe, the Abbey’s president; Don Butcher, who worked as the Abbey’s administrator; and the Abbey’s former director of nursing, Donna Stuhrenberg.
The False Claims Act settlement agreement only resolves government claims related to the alleged submission of claims for payment to Medicaid when the services provided were worthless and effectively without value. Other government claims are not released.
“Nursing facility residents deserve to be treated with dignity, respect, and attentive care sufficient to meet their medical needs and support their mental health,” said United States Attorney Kevin W. Techau. “This settlement demonstrates the commitment of the Northern District of Iowa United States Attorney’s Office to defending the integrity of the system and ensuring that taxpayer money is spent as Congress intended. We will continue to work with our federal and state partners to hold nursing facility owners, administrators, and employees across the district accountable if they are responsible for nursing facility residents being mistreated or if Medicaid or Medicare payments are wasted or misspent.”
The investigation and settlement are part of the Department of Justice’s Elder Abuse Initiative. In March 2016, the United States Attorney’s Office for the Northern District of Iowa was selected as one of ten districts nationwide to launch regional Elder Justice Task Forces. The Elder Justice Task Forces reflect the department’s larger strategy and commitment to protecting our nation’s seniors, spearheaded by the department’s Elder Justice Initiative. The Elder Justice Initiative coordinates and supports the Department’s law enforcement efforts and policy activities on elder justice issues. It plays an integral role in the department’s investigative and enforcement efforts against nursing homes and other long-term care entities that deliver grossly substandard care to Medicare and Medicaid beneficiaries. The United States Attorney’s Office for the Northern District of Iowa has rededicated its efforts and resources to investigate and hold accountable those who have been involved in activities incompatible with ensuring that the state’s more vulnerable citizens are treated with dignity and respect.
The investigation was led by the State of Iowa Medicaid Fraud Control Unit and conducted in conjunction with the Health and Human Services Office of Inspector General. The claims settled by this agreement are allegations only and there has been no determination of liability.
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Indictment: Man Used Stolen Identities to Apply for Car LoansRead the Press Release
WICHITA, KAN. – A Wichita man was indicted Tuesday on federal charges of using stolen identities to applying for car loans, U.S. Attorney Tom Beall said.
Reu Charles Chamberlain, 30, Wichita, Kan., is charged with three counts of wire fraud and three counts of aggravated identity theft. The indictment alleges he used identification bearing his picture along with information from stolen identities to apply for the following car loans:
-- $48,902 for a 2016 Dodge challenger at Eddy’s Chrysler Jeep Dodge.
-- $44,746 for a 2015 Dodge Challenger at Midway Motors.
-- $30,740 for a 2013 Cadillac CTS at Super Car Guys.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on each wire fraud count, and a mandatory two years (consecutive) on each of the other counts. The U.S. Postal Inspection Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
OTHER GRAND JURY INDICTMENTS
Heraclio Estrella-Montero, 30, who is unlawfully in in the United States; Yoan Alejandro Castillo-Zamora, 30, who is unlawfully in the United States; Fernando Chavez-Rodriguez, 40, who is unlawfully in the United States; Michael Cura, 43, Edinburg, Texas; and Richard Slauenwhite, 33, Rio Grande, Texas, are charged with one count of conspiracy to distribute methamphetamine and one count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred Jan. 9 to Jan. 13, 2017, in Shawnee County, Kan.
If convicted, they face a penalty of not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Assistant U.S. Attorney Greg Hough is prosecuting.
George S. James, 48, Brookhaven, Ga., is charged with one count of wire fraud and one count of aggravated identity theft.
James first appeared in court Jan. 24 on a criminal complaint charging him with wire fraud. The indictment adds an aggravated identity theft count. James is accused of carrying out an e-mail spoofing scheme that cost Sedgwick County $566,000. He is alleged to have stolen the identity of a Cornejo and Sons executive so he could divert a payment the county meant to send to the company.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000 on the wire fraud count and a mandatory two years (consecutive) on the identity theft charge. The FBI, the Sedgwick County Sheriff’s Office and the Wichita Police Department investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Greggory K. O’Neal, 33, Derby, Kan., Sarah Beth Myers, 20, El Dorado, Kan., and Ashley N. Moore, 30, Wichita, Kan., are charged with drug trafficking. O’Neal is charged with four counts of possession with intent to distribute methamphetamine (counts 1, 3, 5 and 6), two counts of possession with intent to distribute marijuana (counts 2 and 4) and one count of distributing methamphetamine (count 7). Meyers and Moore are charged with one count each of possession with intent to distribute methamphetamine (counts 3 and 6 respectively). The crimes are alleged to have occurred in 2015 and 2016 in Sedgwick County, Kan.
Upon conviction, the crimes carry the following penalties:
Counts 1, 6 and 7: Not less than 10 years in federal prison and a fine up to $10 million.
Counts 2 and 4: Up to five years and a fine up to $250,000.
Counts 3 and 5: Not less than five and not more than 40 years and a fine up to $5 million.
The Drug Enforcement Administration, the Wichita Police Department and the Sedgwick County Sheriff’s Office investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
Samuel Garcia-Ayala, 34, a citizen of Mexico, is charged with one count of unlawful possession of a firearm by a person unlawfully in the United States, one count of unlawful possession of a false document, and one count of aggravated identity theft. He was found Jan. 3, 2017, in Ford County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000 on the firearm charge and the document charge, and a mandatory two years (consecutive) on the identity theft charge. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Juan Manuel Araujo-Gutierrez, 31, a citizen of Mexico, is charged with one count of unlawfully re-entering the United states after being deported. He was found Jan. 5, 2017, in Reno county, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Irineo Martinez-Merino, 36, a citizen of Mexico, is charged with one count of unlawful possession of a firearm by a person unlawfully in the United States. The crime is alleged to have occurred May 5, 2016, in Marion County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Genaro Herrera-Hernandez, 32, a citizen of Mexico, is charged with one count of unlawfully re-entering the United states after being convicted of a crime and deported. He was found Dec. 22, 2016, in Sedgwick County, Kan.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. Homeland Security Investigations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Wade A. Dunn, 28, Wichita, Kan., is charged with one count of unlawful possession of a firearm following a felony conviction. The crime is alleged to have occurred Oct. 5, 2016, in Sedgwick County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Bureau of Alcohol, Tobacco, Firearms and Explosives investigated. Assistant U.S. Attorney David Lind is prosecuting.
Kip Allen Koch, 44, Chanute, Kan., is charged with four counts of distributing methamphetamine The crimes are alleged to have occurred in July and August 2016 in Neosho County, Kan.
If convicted, he faces a penalty of not less than 10 years on two of the counts and not less than five years on the other two counts. He also faces a fine up to $10 million on two of the counts and up to $5 million on the other two counts. The Kansas Bureau of Investigation investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
Miguel Lizarraga Sauceda, 21, Federal Way, Wash., is charged with one count of possession with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred Dec. 27, 2016, in Seward County, Kan.
If convicted, he faces not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
Osvaldo Aguilar, 25, a resident of Mexico, is charged with possession with intent to distribute approximately 19.7 kilograms of cocaine. The crime is alleged to have occurred Dec. 30, 2016, in Clark County, Kan.
If convicted, he faces not less than 10 years in federal prison and a fine up to $10 million. The Drug Enforcement Administration investigated. Special Assistant U.S. Attorney Kimberly Rodebaugh is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Honduran National Sentenced to 3 Years Imprisonment for Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JUAN HUMBERTO HERNANDEZ-YONES, age 33, a citizen of Honduras, was sentenced today after previously pleading guilty to a one count Indictment charging him with illegal re-entry of a removed alien.
U.S. District Judge Kurt D. Engelhardt sentenced HERNANDEZ-YONES to 36 months’ imprisonment. Following completion of his sentence, HERNANDEZ-YONES will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to the court documents, on June 30, 2016, HERNANDEZ-YONES was found in the United States after having been deported on July 15, 2011. HERNANDEZ-YONES had two prior felony convictions for illegal re-entry, including one from the Eastern District of Louisiana in 2008.
U.S. Attorney Polite praised the work of the United States Immigration and Customs Enforcement in investigating this matter. Assistant United States Attorney Emily K. Greenfield was in charge of the prosecution.
Honduran National Sentenced for Illegal Re-EntryRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ALEX OBDULIO CRUZ-MATUTE, age 39, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien in violation of Title 8, United States Code, Section 1326(a).
U.S. District Judge Kurt D. Engelhardt sentenced CRUZ-MATUTE to two years imprisonment, to be followed by two years of supervised release. Additionally, CRUZ-MATUTE was fined $5,000 and ordered to pay $100 special assessment. Following completion of his sentence, CRUZ-MATUTE will be surrendered to the custody of the Immigration and Customs Enforcement for removal proceedings.
According to court documents, CRUZ-MATUTE reentered the United States after having been deported on October 11, 2007.
U.S. Attorney Polite praised the work of the United States Department of Homeland Security in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Gretna Man Pleads Guilty to Distribution of Child PornographyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GIORGIO COSENZA, age 29, of Gretna, pled guilty today to a one-count Bill of Information charging him with distribution of images and videos depicting the sexual exploitation of children.
According to court documents, on April 14, 2016, law enforcement officials executed a search warrant at COSENZA’s residence. Agents obtained the search warrant after observing a posting he authored on a New Orleans-based online classified advertisement website and engaging him in email correspondence. During the email correspondence, COSENZA told a special agent of the FBI, acting in an undercover capacity, that he collected images and videos of children being sexually exploited.
During the execution of the search warrant, special agents with the FBI seized numerous electronic items including one laptop computer and one smartphone that contained images and videos of child pornography. A forensic examination of the device revealed that COSENZA used the devices to search for, download, and save images and videos of children as young as approximately three years old engaging being sexually victimized. The forensic examination located approximately 740 images and 30 videos of prepubescent children engaging in sexually explicit conduct. The contents of his devices also revealed that COSENZA had taken, saved, and subsequently distributed, sexually images of an approximately fourteen-year-old female with whom he stated he had engaged in sexual intercourse years earlier. Further, COSENZA engaged in text-based correspondence in 2014 and 2015 in which he distributed numerous sexually explicit images of children and, further, expressed an interest in engaging in sexual activity with minors between the ages of six and fourteen years old.
Based on the information contained within COSENZA’S smartphone, agents obtained a search warrant for the contents of his email account. The results of the search warrant revealed the COSENZA had received and distributed additional images depicting the sexual victimization of children.
COSENZA faces a mandatory minimum of five years imprisonment and a maximum term of imprisonment of twenty years, followed by up to a lifetime of supervised release, and a $250,000 fine per count. He can also be required to register as a sex offender. U.S. District Judge Kurt D. Engelhardt set sentencing for April 6, 2017.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys= Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation. Assistant U.S. Attorney Jordan Ginsberg is in charge of the prosecution.
Grape Street Crips Crack-Cocaine Wholesalers Plead Guilty to Racketeering, Drug Trafficking ChargesRead the Press Release
NEWARK, N.J. – Two crack-cocaine wholesalers for the New Jersey set of the Grape Street Crips gang today admitted their involvement in racketeering and drug trafficking conspiracies operating in Newark, New Jersey, U.S. Attorney Paul J. Fishman announced today.
Hakeem Vanderhall, a/k/a “Keem,” a/k/a “Sugar Bear,” 32, of East Orange, New Jersey, and Eric Concepcion, a/k/a “Eddie Arroyo,” a/k/a “E-Wax,” a/k/a “Wax,” 30, of Clifton, New Jersey, pleaded guilty before U.S. District Judge Madeline Cox Arleo in Newark federal court to Count 1 and Count 18 of a sixth superseding indictment charging them with racketeering conspiracy and conspiracy to distribute crack-cocaine.
According to documents filed in this case and statements made in court:
The New Jersey Grape Street Crips controlled drug trafficking and other criminal activities in various areas of Newark. Vanderhall, Concepcion and other members of the gang, including Jamar Hamilton, a/k/a “Gunner,” Tyquan Clark a/k/a “Tah,” and Rashan Washington, a/k/a “Shoota,” used and shared a dedicated cell phone to accept orders for, and distribute, thousands of clips of crack-cocaine to other distributors of crack-cocaine, including other gang members.
To protect their gang and drug territory, the New Jersey Grape Street Crips operating in the area of 6th Avenue and North 5th Street in Newark used “community guns” that were easily accessible to gang members. During the course of the investigation, law enforcement agents seized numerous firearms, including a .410 caliber assault rifle, a.45 caliber Thompson semi-automatic carbine, a 7.62 caliber assault rifle, and numerous semi-automatic handguns.
Under the terms of today’s plea agreements, both Vanderhall and Concepcion will be sentenced to 18 years in prison and five years of supervised release. Sentencing for both defendants is scheduled for May 16, 2017.
U.S. Attorney Fishman credited special agents of the DEA, under the direction of Special Agent in Charge Carl J. Kotowski in Newark, and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, for the investigation leading to the charges. He also thanked prosecutors and detectives of the Essex County Prosecutor’s Office, under the direction of Acting Prosecutor Carolyn A. Murray; police officers and detectives of the Newark Department of Public Safety, under the direction of Director Anthony F. Ambrose; and the Essex County Sheriff’s Office under the direction of Armando B. Fontoura, for their assistance in this case.
The government is represented by Assistant U.S. Attorneys Osmar J. Benvenuto and Barry A. Kamar of the Criminal Division in Newark.
This case was conducted under the auspices of the Organized Crime Drug Enforcement Task Force (OCDETF) and the FBI’s Safe Streets Task Force, a partnership between federal, state and local law enforcement agencies. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations and those primarily responsible for the nation’s illegal drug supply.
Defense counsel:
Vanderhall: Joshua L. Markowitz Esq., Lawrenceville, New Jersey
Concepcion: Stephen Turano Esq., NewarkGrand Prairie, Texas Man Sentenced to 6 Months for Bank FraudRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that ISSAC YEBOAH, age 30, of Grand Prairie, Texas, was sentenced to 6 months imprisonment, and 3 years of supervised release for BANK FRAUD, in violation of Title 18, United States Code, Sections 1344(2) and 2; and for UNLAWFUL TRANSFER, POSSESSION OR USE OF A MEANS OF IDENTIFICATION, in violation of Title 18, United States Code, Sections 1028(a)(7) and 2.
The Indictment alleged that on or about March 18, 2016, in the Eastern District of Oklahoma, the defendant did knowingly obtain moneys and funds owned by and under the custody and control of CreditONE, a financial institution as defined by Title 18, United States Code, Section 20, whose deposits were insured by the Federal Deposit Insurance Corporation, by means of false pretenses and representations, by using an unauthorized credit card.
The indictment further alleged that on the same date, the defendant did knowingly possess in or affecting interstate or foreign commerce, without lawful authority, a means of identification of another person, knowing that the means of identification belonged to another actual person, with the intent to commit, or to aid or abet or in connection with, Bank Fraud.
The charges arose from an investigation by the Murray County Sheriff’s Office, the Oklahoma Highway Patrol, and the United States Secret Service.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in custody pending transportation to the designated federal facility at which the nonparoleable sentence will be served.
Assistant United States Attorney Melody Nelson represented the United States.
Grand Jury Indicts Eight Members of Multi-State Drug Trafficking NetworkRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today the unsealing of a federal grand jury indictment charging eight individuals in connection with an extensive federal, state, and local investigation by the Middle District Organized Crime and Drug Trafficking Task Force (OCDETF) aimed at a drug trafficking network based in Ascension Parish and covering Louisiana, Texas, and Mississippi.
The indictment charges significant drug trafficking offenses involving cocaine, crack cocaine, and heroin. If convicted, these defendants face significant terms of imprisonment, fines, and the forfeiture of proceeds from the illegal activity. The defendants are as follows:
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Arthur Johnson, Jr., a.k.a. “Nelson Howard,” “Wood,” and “Dread,” age 40, of Hattiesburg, Mississippi, CEO of “Ruff-n-Rugged Entertainment” in Geismar, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine, crack cocaine, and 100 grams or more of heroin; distribution of 100 grams or more of heroin; unlawful use of a communication facility; and forfeiture.
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Lorenza Benitez Alday, a.k.a. “Old Woman,” “Old Lady,” and “Old Girl,” age 51, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine, crack cocaine, and heroin; possession with the intent to distribute five kilograms or more of cocaine; unlawful use of a communication facility; and forfeiture.
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Tom Christmas III, a.k.a. “Bald Head” and “Tom Jr.,” age 40, of Geismar, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine, crack cocaine, and 100 grams or more of heroin; distribution of 100 grams or more of heroin; unlawful use of a communication facility; and forfeiture.
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Rodolfo De La Cruz Alday, age 43, of Gonzales, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine, crack cocaine, and heroin; possession with the intent to distribute five kilograms or more of cocaine; unlawful use of a communication facility; and forfeiture.
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Norberto Aaron Bejarano, age 30, of Houston, Texas, is charged with conspiracy to distribute and possess with the intent to distribute five kilograms or more of cocaine, crack cocaine, and heroin; distribution of five kilograms or more of cocaine; unlawful use of a communication facility; and forfeiture.
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Reginald Jackson, a.k.a. “Lemonhead,” age 44, of Geismar, Louisiana, is charged with conspiracy to distribute and possess with the intent to distribute cocaine, 28 grams or more of crack cocaine, and heroin; distribution of cocaine; distribution of crack cocaine; distribution of 28 grams or more of crack cocaine; and forfeiture.
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Lashucklan Martin, a.k.a. “Fat,” age 39, of Hattiesburg, Mississippi, is charged with conspiracy to distribute and possess with the intent to distribute cocaine, crack cocaine, and heroin; unlawful use of a communication facility; and forfeiture.
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Everett D. Ramsey, a.k.a. “Ram,” age 30, of Hattiesburg, Mississippi, is charged with conspiracy to distribute and possess with the intent to distribute cocaine, crack cocaine, and heroin; unlawful use of a communication facility; and forfeiture.
U.S. Attorney Green stated: “Our office will continue to aggressively pursue drug traffickers using all legal means available. I commend the FBI, the Ascension Parish Sheriff’s Office, and all of the other federal, state, and local law enforcement agencies who contributed to this important matter.”
Jeffrey S. Sallet, the Special Agent-in-Charge of the New Orleans Division of the Federal Bureau of Investigation, stated: “This investigation and indictments are the result of multiple law enforcement agencies working together to keep our communities safe. The FBI will continue to work with our federal, state and local partners to combat violent gangs and illegal drug traffickers.”
Ascension Parish Sheriff Jeff Wiley stated: “We partnered with the FBI on this case several years ago. We will continue to work together to keep our streets safe from drugs and other criminal activity.”
The investigation is another effort by the Organized Crime Drug Enforcement Task Force (OCDETF) Program which was established in 1982 to mount a comprehensive attack against organized drug traffickers. Today, the OCDETF Program is the centerpiece of the United States Attorney General’s drug strategy to reduce the availability of drugs by disrupting and dismantling major drug trafficking organizations and money laundering organizations and related criminal enterprises. The OCDETF Program operates nationwide and combines the resources and unique expertise of numerous federal, state, and local agencies in a coordinated attack against major drug trafficking and money laundering organizations.
This joint operation is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana; the FBI Baton Rouge Capitol Area Gang Task Force, which is an FBI Safe Street Task Force that includes the East Baton Rouge Sheriff’s Office and Baton Rouge Police Department; the Ascension Parish Sheriff’s Office; the FBI Hattiesburg, Mississippi, Resident Agency; and Hattiesburg, Mississippi, Police Department. This matter is being prosecuted by Assistant United States Attorneys Jamie A. Flowers, Jr. and Cam Le.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
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Gloucester County, New Jersey, Man Admits Role in Camden Drug Trafficking ConspiracyRead the Press Release
CAMDEN, N.J. - A Mantua, New Jersey, man today admitted overseeing a more than 15-month conspiracy to sell crack cocaine in Camden, New Jersey, U.S. Attorney Paul J. Fishman announced.
Harold Miller, 41, pleaded guilty before U.S. District Judge Joseph H. Rodriguez in Camden federal court to an information charging him with one count of conspiracy to distribute and to possess with intent to distribute cocaine base.
According to documents filed in this case and statements made in court, Miller admitted that from May 2014 through Sept. 1, 2015, he oversaw a conspiracy to distribute crack cocaine on Pfeiffer Street in Camden. Miller admitted that as part of his role, he managed the drug sales on Pfeiffer Street and coordinated the supply of crack cocaine to other dealers.
The conspiracy charge carries a maximum potential penalty of 20 years in prison. Miller’s sentencing is scheduled for May 8, 2017.
Miller was arrested on Sept. 2, 2015 following an investigation by the FBI’s South Jersey Violent Offender and Gang Task Force. Rasheed Wise, Rodney Wall, and David Wilkerson, all of Camden, previously pleaded guilty to their roles in the conspiracy and await sentencing.
U.S. Attorney Fishman credited special agents of the FBI’s South Jersey Violent Offender and Gang Task Force, South Jersey Resident Agency, under the direction of Special Agent in Charge Michael Harpster; the Camden County Police Department, under the direction of Chief J. Scott Thomson; the Camden County Prosecutor’s Office, under the direction of Prosecutor Mary Eva Colalillo; and the N.J. State Police, under the direction of Col. Rick Fuentes, with the investigation.
The government is represented by Deputy Attorney-in-Charge Matthew J. Skahill of the U.S. Attorney’s Office in Camden.
Defense counsel: Christopher O’Malley Esq., Assistant Federal Public Defender, Camden
Gloucester County Man Pleads Guilty to Child Pornography ChargeRead the Press Release
NEWPORT NEWS, Va. – Timothy Justin George, 27, of Gloucester County, pleaded guilty today to distribution of child pornography.
According to the statement of facts filed with the plea agreement, in September 2016, law enforcement conducted a search of George’s home and seized a number of electronic devices. A forensic examiner completed a forensic analysis of the devices and found over 31,000 images of child pornography.
George was indicted by a federal grand jury on Dec. 14, 2016, and faces a minimum of five years in prison and a maximum of 20 years in prison when sentenced on May 8. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge Henry Coke Morgan, Jr. Assistant U.S. Attorney Lisa R. McKeel is prosecuting the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Justice Department’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend, and prosecute individuals who exploit children, as well as identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov/.
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 No. 4:16-cr-96.
Fresno Business Owner Pleads Guilty to Money LaunderingRead the Press Release
FRESNO, Calif. — Krishen Sauble Iyer, 36, of Fresno, pleaded guilty today to conspiring to launder money, U.S. Attorney Phillip A. Talbert announced.
According to court documents, Iyer was the owner of several insurance sales and brokerage businesses in Fresno. Iyer conspired with S.V., whom he knew to be a marijuana trafficker, to launder the proceeds of S.V.’s marijuana trafficking through one of Iyer’s businesses, Health Shield. Iyer and S.V. agreed that S.V. would transfer the drug proceeds to Health Shield, and those funds would then be paid back to S.V. to make the drug proceeds appear to be legitimate salary payments. Iyer issued two Form 1099s to S.V., which claimed that Health Shield paid S.V. $111,952 in 2013 and $164,000 in 2014, even though he never earned all of those funds from the company. S.V. paid Iyer a commission for transferring the funds.
This case is the product of an investigation by the Drug Enforcement Administration, the IRS Criminal Investigation, and the Fresno Police Department. Assistant United States Attorneys Grant B. Rabenn and Jeffrey A. Spivak are prosecuting the case.
Iyer is scheduled to be sentenced by Judge Dale A. Drozd on April 24, 2017 at 10:00 a.m. Iyer faces a maximum statutory penalty of 20 years in prison and a $500,000 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.
Founder of Non-Profit Charged with Bribing Former Prince George’s County Official in Exchange for Grant FundsRead the Press Release
Greenbelt, Maryland – A criminal complaint has been filed charging Felix Nelson Ayala, of Rockville, Maryland, late yesterday with bribery and making false statements in connection with a scheme to engage in bribery in order to influence a public official in the performance of his official duties in Prince George’s County. Ayala’s initial appearance is scheduled today at 1:45 p.m. before U.S. Magistrate Judge Timothy J. Sullivan in U.S. District Court in Greenbelt, Maryland.
The criminal complaint 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; Acting Special Agent in Charge Thomas J. Holloman of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to affidavit filed in support of the criminal complaint, Ayala was an accountant and founder of Ayala and Associates Public Accountants in Washington, D.C. Ayala was also the founder of the Salvadoran Business Caucus, a non-profit organization also known as the Caucus Salvadoreno Empresarial, Inc. (CSE). CSE’s website stated that CSE awarded scholarships to high school and college students.
The affidavit alleges that Ayala paid bribes to former Prince George’s County Council Member Will Campos in exchange for grant funding. Specifically, the affidavit alleges that Ayala paid Campos $5,000 for each of County fiscal years 2012 through 2015, in exchange for $25,000 in grants to CSE in each of those years. For example, on August 13, 2014, Campos met with Ayala for lunch in Washington, D.C. During the meeting, Ayala asked Campos what would happen after Campos left his position on the County Council and assumed his position within the Maryland General Assembly. According to the affidavit, Ayala advised, “The arrangement is still on,” and Campos asked if Ayala had anything for Campos. Ayala asked Campos to give him two weeks, and “I [Ayala] call you and I’ll say let’s, let’s have a drink and you know what it’s for.” Campos asked for $5,000, “like last time,” and Ayala agreed.
According to the affidavit, on September 23, 2014, Ayala had dinner with Campos at a restaurant in Silver Spring, Maryland, and discussed the grant money. Specifically, Campos advised that he would push for Ayala to still receive grant money after Campos left office. At the conclusion of the meal, Ayala walked Campos out of the restaurant and allegedly handed Campos an envelope bearing a label for CSE and containing a cashier’s check for half the agreed upon amount. The affidavit alleges that Ayala explained, “I was unable to obtain cash. It’s better like this. This comes from – from a third party who knows me, so it’s better.” Campos joked that Ayala was paying “half now, half later,” and Ayala responded, “I would say that.”
According to the affidavit, on January 8, 2015, Ayala met with Campos at Ayala’s office in Washington, D.C. Ayala reached into his desk and retrieved an envelope. Ayala handed the envelope to Campos, who asked if it was “the rest that we talked about? 2,500?” and Ayala responded, “Yeah.” The affidavit alleges that inside the envelope, Ayala had placed $2,500 in cash.
On January 5, 2017, Ayala was interviewed by federal law enforcement agents. The affidavit alleges that Ayala denied providing anything of value to Campos in exchange for receiving Prince George’s County grant money for CSE. Thereafter, agents showed Ayala still photographs from videos taken while Ayala was making bribe payments to Campos on September 23, 2014 and January 8, 2015.
If convicted, Ayala faces a maximum sentence of ten years in prison for bribery, and a maximum of five years in prison for false statements. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, IRS-CI, and Prince Georges County Police Department for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Thomas P. Windom, Mara Zusman Greenberg, and James A. Crowell IV, who are prosecuting the case.
Fort Myers Urologist Agrees to Pay More Than $3.8 Million for Ordering Unnecessary Medical TestsRead the Press Release
Fort Myers, FL – United States Attorney A. Lee Bentley, III announces that Meir Daller, M.D. has agreed to pay $3.81 million to the government to resolve allegations that he violated the False Claims Act by causing claims to be submitted to federal health care programs for laboratory tests that were not medically necessary.
During the relevant time period, Dr. Daller was a urologist practicing as part of Gulfstream Urology, which was a division of 21st Century Oncology, LLC. 21st Century is a nationwide provider of integrated cancer care services that is headquartered in Fort Myers. As part of its business, 21st Century employs and affiliates with physicians in specialty fields such as radiation oncology, medical oncology, and urology.
The settlement announced today resolves allegations that Dr. Daller submitted claims to Medicare and Tricare for fluorescence in situ hybridization, or “FISH,” tests that were not medically necessary. FISH tests are laboratory tests performed on urine that can detect genetic abnormalities associated with bladder cancer. Medicare does not consider a FISH test reasonable or necessary unless it is used to monitor for tumor reoccurrence in a patient previously diagnosed with bladder cancer or unless, after performing a full urologic workup, the physician has reason to suspect that a patient with hematuria (i.e., blood in the urine) may have bladder cancer.
Beginning in 2009, Dr. Daller began referring all of the FISH testing ordered by him to a laboratory owned and operated by 21st Century. During the relevant time, Dr. Daller ordered over 13,000 separate FISH tests on his Medicare patients, making him the number one referring physician in the country with respect to FISH tests. Dr. Daller was paid bonuses by the company based, in part, on the number of FISH tests he referred to 21st Century laboratory. During the relevant time, Dr. Daller received approximately $2 million in bonus payments from 21st Century associated with these FISH tests.
The allegations that doctors affiliated with 21st Century were ordering unnecessary FISH tests were originally brought in a lawsuit filed by a whistleblower under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The original lawsuit was captioned United States, State of Florida, ex rel. Mariela Barnes v. Dr. David Spellberg, 21st Century Oncology and Naples Urology Associates, Civil Action No. 2:13-cv-228-FtM-38DNF (M.D. Fla.).
In addition to the civil settlement, Dr. Daller has entered into a three-year Integrity Agreement with the Office of Inspector General of the United States Department of Health and Human Services. The Integrity Agreement, among other obligations, requires Dr. Daller to retain an Independent Review Organization to perform a Claims Review, as well as an Electronic Health Records Review to evaluate the appropriateness of any revisions made to the medical record after initial entry, pursuant to Medicare and Medicaid requirements.
In addition to the settlement announced today with Dr. Daller, the United States previously entered into settlements relating to similar allegations with 21st Century Oncology for $19.75 million and urologists David Spellberg, M.D. and Robert Scappa, D.O. for $1,050,000 and $250,000, respectively. As a result, the United States’ total recovery relating to the investigation of the use of FISH tests by doctor’s affiliated with 21st Century is now $24,860,000.
The whistleblower, a former medical assistant who worked for David Spellberg, M.D. at Naples Urology Associates, which was also a division of 21st Century Oncology, will receive $571,500 as her share of this recovery. This amount is in addition to a $3,437,000 million share she already received as a result of the settlements previously reached with David Spellberg, M.D, Robert Scappa, D.O., and 21st Century Oncology.
“Charging for clearly unnecessary medical services defrauds the government, threatens the viability of public health care programs, and breaches the sacred trust that physicians owe their patients,” said U.S. Attorney Bentley. “Our office will continue to pursue and hold accountable health care providers who defraud the United States.”
“Greed was the clear motive in this case," said Shimon R. Richmond, Special Agent in Charge for the HHS Office of the Inspector General. “Patients' needs played no role in ordering tests that were medically unnecessary and could have endangered patient care. Egregious fraud, such as alleged in this settlement, will not be tolerated. Together with our law enforcement partners, we will protect beneficiaries and the federal health care programs they rely upon.”
"The Defense Criminal Investigative Service (DCIS) continues to protect the integrity of the U.S. military health care program (TRICARE) against fraud as one of our top priorities. DCIS dedicates substantial resources to investigating both corporate and individual medical services providers who defraud the TRICARE program," said Special Agent in Charge John F. Khin, Southeast Field Office.
The investigation was handled by Trial Attorney Arthur Di Dio from the Civil Division’s Commercial Litigation Branch and Assistant U.S. Attorney Kyle S. Cohen, with assistance from DCIS, FBI, and the Department of Health and Human Services Office of Inspector General.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.4 billion through False Claims Act cases, with more than $19.6 billion of that amount recovered in cases involving fraud against federal health care programs.
The claims resolved by the settlement are allegations only, and there has been no determination of liability.
Former U.S. Postal Carrier Convicted of Dumping MailRead the Press Release
A federal jury convicted a former U.S. postal carrier of delaying and detaining mail in Broward County.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Max Eamiguel, Special Agent in Charge, U.S. Postal Service, Office of Inspector General (USPS-OIG), made the announcement.
John Henry Caddle, Jr., 58, of Hollywood, was convicted by a federal jury yesterday of three counts of delaying and detaining mail, in violation of Title 18, United States Code, Section 1703(a). Caddle faces a maximum statutory sentence of five years in prison as to each count of conviction. Sentencing is scheduled for April 21, 2017 at 9:00 a.m. before U.S. District Judge James I. Cohn.
According to the court record, including trial testimony, on August 18, 2016, a witness saw Caddle dump a garbage bag into a dumpster near the defendant’s residence. The witness recovered the garbage bag from the dumpster and found that it contained deliverable mail from Caddle’s assigned mail route. The witness contacted U.S. postal authorities and alerted them to the mail that had been discovered in in the dumpster. On August 18 and 19, 2016, Caddle was employed as a U.S. Postal Carrier and had a duty to deliver the mail.
Mr. Ferrer commended the investigative efforts of the USPS-OIG. The case is being prosecuted by Assistant United States Attorney’s Randy Katz and Jennifer A. Keene.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former North Carolina Correctional Officer Sentenced to 5 Years ImprisonmentRead the Press Release
RALEIGH – The United States Attorney’s Office for the Eastern District of North Carolina announces that GREGORY DUSTIN GOULDMAN was sentenced today to 60 months in prison followed by 3 years of supervised release.
On August 19, 2015, a federal grand jury in Raleigh returned an Indictment charging GOULDMAN, a former Sergeant in the High Security Maximum Control Unit (“HCON”) at Polk Correctional Institution (“Polk”) in Butner, North Carolina, with extorting funds from inmates in exchange for delivery of various contraband items.
GOULDMAN, who is 33 years of age, was employed as a Correctional Officer at Polk from 2005, through May of 2015. From 2012, through September of 2014, GOULDMAN held the position of Sergeant and worked as a supervisor in the HCON unit at Polk. The HCON unit was opened in 1998 to serve as North Carolina’s supermax prison for “the state’s most violent and assaultive offenders.” GOULDMAN misused his high level position of public trust to enter arrangements under which he smuggled tobacco, marijuana, cellular telephones, and packages of AA batteries (often used to fashion a device for charging the cellular telephones) to HCON inmates in exchange for electronic transfers or cash. The cellular telephones were used by the inmates to communicate with persons outside of prison and to transfer funds through the use of various internet accounts, such as green dot. GOULDMAN’s supervisory position in HCON provided him with the ability to meet with inmates without other correctional officers present. This privacy allowed GOULDMAN the freedom to negotiate prices and ultimately deliver the contraband items to the HCON inmates without witnesses. After being transferred out of HCON in September of 2014, GOULDMAN continued to smuggle contraband into Polk for additional inmates.
The United States Attorney’s Office and FBI’s investigation into Polk was prompted by the circumstances relating to the kidnapping conspiracy orchestrated by defendant Kelvin Melton through the use of a cellular telephone in his cell in HCON.
The case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorneys Dennis Duffy and Leslie Cooley.
Former Mayor Pleads Guilty to Wire Fraud for Using Campaign Contributions for His Own Personal BenefitRead the Press Release
A former mayor of Dunkirk, New York pleaded guilty today to engaging in a scheme to defraud his mayoral campaign and supporters by stealing campaign contributions for his personal benefit, announced Acting Assistant Attorney General Kenneth A. Blanco of the Department of Justice’s Criminal Division and Acting U.S. Attorney James P. Kennedy Jr. of the Western District of New York.
Richard L. Frey, 85, pleaded guilty to one count of wire fraud before U.S. District Judge Richard J. Arcara of the Western District of New York. Sentencing is scheduled for May 11, 2017.
According to admissions made in connection with his plea, from at least January 2003 through June 2012, Frey solicited and received several large campaign contributions from a number of area businesses and businesspeople and then, instead of depositing the donations into his campaign accounts, either cashed the checks for his personal use or deposited the checks into his personal bank accounts. Frey admitted that he concealed the existence of these larger campaign contributions by not reporting or disclosing them on his campaign disclosure reports, as was required of local candidates for public office.
FBI’s Buffalo Field Office and the U.S. Housing and Urban Development Office of Inspector General investigated the case. Former Assistant U.S. Attorney John E. Rogowski and Assistant U.S. Attorney John Fabian of the Western District of New York and Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section are prosecuting the case.
Former Federal Air Marshal SentencedRead the Press Release
PHOENIX – Yesterday, Kristopher Gale Hanks, 40, of Ashburn, Va., was sentenced by United States Senior District Judge Roslyn O. Silver to three years’ probation. Hanks had previously pleaded guilty to conspiracy to deliver misbranded drugs into interstate commerce.
Hanks is a former law enforcement officer who helped make and sell illicit designer drugs commonly known as “spice” and “bath salts.” “Spice” and “bath salts” are drugs that look like marijuana or cocaine but are falsely labeled and sold as innocuous household products like “incense,” “potpourri,” or “bath treatments” in an effort to circumvent federal drug and consumer laws.
Through this Organized Crime Drug Enforcement Task Force investigation, agents determined that Hanks assisted co-conspirators make and sell “spice” products. Later, Hanks made and sold a “bath salt” product called “Flash Bang” that was redistributed in Arizona and elsewhere. “Flash Bang” contained the chemical 4-MEC, which is a stimulant compound that Hanks ordered from China.
Hanks’ involvement in this conspiracy ended in the summer of 2011 when he joined the Federal Air Marshal Service. Prior to his involvement in this case, Hanks was employed as a police officer with the Salt Lake City, Utah, and Gilbert, Ariz., police departments and as a security contractor with the Department of Defense in Iraq.
The investigation in this case was conducted by the Drug Enforcement Administration and the Internal Revenue Service-Criminal Investigations. The prosecution was handled by D. J. Pashayan, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-0989-PHX-ROS
RELEASE NUMBER: 2017-007_Hanks
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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.
Former Executive of Tenet Healthcare Corporation Charged for Alleged Role in $400 Million Scheme to DefraudRead the Press Release
A former senior executive of Tenet Healthcare Corporation, was indicted for his alleged role in an over $400 million scheme to defraud. The indictment alleges that the scheme to defraud victimized the U.S. government, the Georgia and South Carolina Medicaid Programs, and prospective patients of Tenet hospitals.
Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division, Special Agent in Charge David J. LeValley of the FBI’s Atlanta Division and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Atlanta Field Office made the announcement.
John Holland, 60, of Dallas, was charged in an indictment filed on Jan. 24 in the Southern District of Florida with one count of mail fraud, one count of health care fraud and two counts of major fraud against the United States. Holland made an initial appearance today, Feb. 1, at 2:00 p.m. EST before U.S. Magistrate Judge Edwin G. Torres of the Southern District of Florida.
According to the indictment, Holland formerly served as a senior vice president of operations for Tenet Healthcare Corporation’s Southern States Region and as chief executive officer of North Fulton Medical Center Inc. in Roswell, Georgia. The indictment alleges that from approximately 2000 through 2013, Holland engaged in a scheme to defraud the United States, and the Georgia and South Carolina Medicaid Programs, by causing the payment of bribes and kickbacks in return for the referral of patients to North Fulton Medical Center Inc. and other Tenet hospitals in the Southern States Region, including Atlanta Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital. From approximately 2007 through 2013, Tenet maintained and operated an affiliated billing center located in Boca Raton, Florida, that assisted in processing, for payment, Medicaid billings for these hospitals. Holland took affirmative steps to conceal the scheme including by circumventing internal accounting controls and falsifying Tenet’s books, records and reports. These kickbacks and bribes helped Tenet bill the Georgia and South Carolina Medicaid Programs over $400 million, and Tenet obtained more than $149 million in Medicaid and Medicare funds based on the resulting patient referrals, the indictment alleges.
According to the allegations, to effectuate the scheme, Holland, among other things, made false and fraudulent statements to HHS-OIG in connection with Tenet’s 2006 Corporate Integrity Agreement (the CIA), in which he falsely certified to HHS-OIG that Tenet was in compliance with the terms of participation in the Medicare and Medicaid Programs, and the terms of the CIA, when in fact he knew that Tenet was paying for illegal patient referrals. Holland’s certifications were included as part of Tenet’s yearly annual reports that were mailed to the HHS-OIG monitor located in Miami Lakes, Florida. During the duration of the CIA from 2007 through 2011, Tenet received over $10 billion in payments from federal health care programs – monies that Tenet would not have received had the company been excluded from participation in federal health care programs, the indictment alleges.
“These charges underscore our continued commitment to holding both individuals and corporations accountable for their fraudulent conduct,” said Acting Assistant Attorney General Blanco. “We will follow the evidence where it takes us, including to the corporate executive ranks.”
“Medicaid patients have the right to seek healthcare without fearing that care is tainted by bribes and illegal kickbacks,” said Special Agent in Charge for FBI’s Atlanta Division LeValley. “Not only did patients suffer because of these alleged actions, but this kind of alleged abuse threatens to drive up the cost of healthcare for everyone. The FBI is committed to ensuring that federal laws related to the healthcare industry are enforced, and this case is an example of that commitment.”
“Health care companies and their executives must bill taxpayer-funded health programs honestly,” Special Agent in Charge Jackson of the HHS Office of Inspector General. “Working with our law enforcement partners, our office will continue to pursue those who attempt to defraud Medicare and Medicaid, as alleged in this indictment.”
On Oct. 19, 2016, North Fulton Medical Center Inc. and Atlanta Medical Center Inc. pleaded guilty to conspiring to defraud the United States and to violate the Anti-Kickback Statute. Tenet subsidiary Tenet HealthSystem Medical Inc. and its subsidiaries (THSM) also entered into a non-prosecution agreement (NPA) with the government at that time. Under the terms of the NPA, THSM and Tenet will avoid prosecution if they, among other requirements, cooperate with the government’s ongoing investigation and enhance their compliance and ethics program and internal controls. Tenet also agreed to retain an independent compliance monitor to address and reduce the risk of any recurrence of violations of the AKS by any entity owned in whole, or in part, by Tenet. Tenet and its subsidiaries also agreed to pay over $513 million to resolve the criminal charges and civil claims arising from the matter.
An indictment is merely an allegation and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI’s Atlanta Field Office, HHS-OIG and the FBI Healthcare Fraud Unit Major Provider Reponse Team are conducting the investigation. Deputy Chief Joseph S. Beemsterboer, Assistant Chiefs Robert A. Zink and Sally B. Molloy and Trial Attorney Antonio M. Pozos of the Criminal Division’s Fraud Section are prosecuting the case.
The Criminal Division’s Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine locations across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
If you believe you are a victim of this offense, please visit this website or call (888) 549-3945.
Former Dunkirk Mayor Pleads Guilty to Wire Fraud for Using Campaign Contributions for His Own Personal BenefitRead 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 former City of Dunkirk Mayor Richard L. Frey, 85, of Dunkirk, NY, pleaded guilty before U.S. District Judge Richard J. Arcara to wire fraud involving a scheme to defraud his mayoral campaign and his supporters by stealing campaign contributions for his personal benefit. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney John D. Fabian and Department of Justice Trial Attorney Edward P. Sullivan of the Criminal Division’s Public Integrity Section, who are handling the case, stated that the defendant was the City of Dunkirk mayor from January 2002 until January 2012. During that time, Frey had substantial personal debt.
From January 2003, to June 2012, the defendant devised and executed a scheme to defraud the co-owners of a hospitality company that owned a hotel in Dunkirk and the owner of a food production company in Dunkirk by inducing them to make contributions to his mayoral and other political campaigns. After receiving checks from these individuals, Frey, rather than depositing the funds into a campaign or official account, simply spent them for his own personal benefit. The contributions totaled $54,361.30. In addition, Frey failed to report or disclose the contributions on his campaign disclosure reports, which is required of local candidates for public office.
The plea is the culmination of an investigation by the Federal Bureau of Investigation, under the direction of Special Agent-in-Charge Adam S. Cohen and the U.S. Housing and Urban Development, Office of Inspector General, under the direction of Special Agent in Charge Brad Geary.
Sentencing is scheduled for May 11, 2017, at 1:00 p.m. before Judge Arcara.
Former Deschutes County Sheriff Captain's Mistress Sentenced for Making False Statements to Federal AgentsRead the Press Release
EUGENE, Ore. – On Monday, January 30, 2017, Krista Jean Mudrick, 36, a resident of Deschutes County, Oregon and former Deschutes County Sheriff employee, was sentenced to three years of probation and 200 hours of community service by U.S. District Judge Michael J. McShane for lying to FBI and IRS agents.
On September 15, 2016, Mudrick pleaded guilty to making material false statements to federal agents about her relationship with former Deschutes County Sheriff Captain Scott Raymond Beard and receiving cash and gifts from him. On September 8, 2016, Judge McShane sentenced Beard to five years in prison for stealing $205,747 in public funds designated for use in combating drug crimes.
Beard falsified records to steal from programs receiving federal funds, which he was entrusted to manage, and then laundered the money by making cash deposits into Mudrick’s bank account. Beard also used some of the public money to fund an international vacation to a resort with Mudrick, bought her a motorcycle and paid for her apartment. U.S. District Judge McShane told Beard when imposing the five-year sentence that “[t]he community has to know that [this conduct] will not be tolerated.”
During her own sentencing hearing, Mudrick admitted lying to agents but denied knowing Beard was stealing public funds. A long-time volunteer for numerous charities, Mudrick offered to do community service work. When imposing the probationary sentence, Judge McShane noted this was Mudrick’s first offense and her lies had not impeded the agents’ investigation of Beard.
This case was investigated jointly by the FBI and IRS and prosecuted by Christopher Cardani and Frank R. Papagni, Jr., Assistant United States Attorneys for the District of Oregon.
Florida Department of Health Supervisor Sentenced to Prison for Accepting a BribeRead the Press Release
Florida Department of Health supervisor sentenced to prison for accepting a bribe.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and George Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office announce that
Johnson, 58, of Tamarac, was sentenced yesterday to five months’ imprisonment by U.S. District Judge Daniel T. K. Hurley, after having previously pled guilty to extortion under color of official right, in violation of Title 18, United States Code, Section 1951.
On June 22, 2015, Johnson was employed as a supervisor at the Broward County office of the Florida Department of Health, in Fort Lauderdale, Florida. Two home builders met Johnson while he was working at the Florida Department of Health office and paid the defendant $500 in exchange for sewage and water permits.
Mr. Ferrer commended the investigative efforts of the FBI. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at http://www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Jury Convicts Woman in ID Theft CaseRead the Press Release
DALLAS – Following a three-day trial before Chief U.S. District Judge Barbara M. G. Lynn, a federal jury convicted Deborah Petty, 48, of Mesquite, Texas, on several identity theft offenses, announced U.S. Attorney John Parker of the Northern District of Texas.
Specifically, yesterday afternoon, the jury convicted Petty on seven counts of identity theft and one count of aggravated identity theft. Each of the identity theft counts carries a maximum statutory penalty of fifteen years in federal prison and a $250,000 fine. The aggravated identity theft count carries a $250,000 fine and a mandatory statutory penalty of two years in federal prison, consecutive to any other sentence Petty receives on Counts one through seven. Restitution could also be ordered. Sentencing has not yet been scheduled.
The government presented evidence at trial that Petty worked at the Western Regional Center for Brain and Spine Surgery (WRCBSS), a medical facility in Las Vegas, Nevada, between November 28, 2011, and June 29, 2012. In her position, and prior to her termination from WRCBSS, Petty obtained access to patient files, which included patients' names, dates of birth, and social security numbers. Petty understood and signed an acknowledgement that she would have access to confidential patient information and agreed that she would not disclose or share such information. Nonetheless, Petty stole hundreds of patient files and maintained possession of those files until May 2014, long after she left WRCBSS.
During the time in which she possessed these stolen identities, Petty used the identities in connection with a food stamp fraud scheme in the State of Florida. Approximately 110 individual patients from WRCBSS had food stamp benefits obtained in their name, totaling over $44,000 in losses to the government. Petty eventually moved to Mesquite and obtained new employment at another entity, Epic Healthcare Services, by overstating her qualifications and omitting her work at WRCBSS. In her new position, Petty again had access to patient identifiers and other personal information. In May 2014, the Mesquite Police Department recovered approximately 1,500 stolen identities possessed and maintained by Petty in an apartment in Mesquite.
The U.S. Department of Agriculture, U.S. Department of Health and Human Services Office of Inspector General and the Mesquite Police Department investigated the case. Assistant U.S. Attorneys Kate Rumsey and P.J. Meitl are in charge of the prosecution.
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District Man Sentenced to Three Years in Prison for Robbing Bank in Northwest WashingtonRead the Press Release
WASHINGTON – David Proctor, 56, of Washington, D.C., who has no fixed address, has been sentenced to three years in prison for a mid-morning bank robbery he committed last year in Northwest Washington, announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Proctor pled guilty in October 2016, in the U.S. District Court for the District of Columbia, to a bank robbery charge. He was sentenced on Jan. 31, 2017, by the Honorable Rudolph Contreras. Following completion of his prison term, Proctor will be placed on three years of supervised release.
According to the government=s evidence, on June 13, 2016, at approximately 9:25 a.m., Proctor entered a TD Bank in the 1400 block of P Street NW. He approached the teller counter and passed the teller a demand note that stated, “This a Robbery Pass All Big Bills 100’s 50’s 20’s And No One Will Get Hurt.” Proctor then instructed the teller to give him large bills. His right hand remained in his pocket, and the teller believed he could have possibly had a weapon. However, the teller did not observe a weapon. The teller, fearing for her safety and the safety of others, turned over more than $3,000 and Proctor fled. Surveillance video captured the robbery, and multiple witnesses subsequently identified Proctor. He was arrested Aug. 1, 2016.
In announcing the sentence, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Interim Chief Newsham commended the work of those who investigated the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They also expressed appreciation for the work of those who handled the case at the U.S. Attorney’s Office, including Paralegal Specialists Jeannette Litz and Teesha Tobias and Legal Assistant Peter Gaboton. Finally, they commended the efforts of Assistant U.S. Attorney Emory V. Cole, who investigated and prosecuted the case.
Detroit man indicted for selling carfentanil that killed Marion manRead the Press Release
A Detroit man was indicted for selling carfentanil that killed a man in Marion last year, law enforcement officials said.
Ronald Dale Wilson, Jr., 24, was charged in U.S. District Court with drug trafficking and drug trafficking that resulted in death.
Wilson possessed carfentanil and cocaine on Oct. 31. 2016. Wilson sold cocaine and carfentanil on that day to an individual identified as K.C., which resulted in K.C.’s overdose death, according to the indictment.
“We will continue to seek long prison sentences for drug traffickers who kill our neighbors and destroy our families,” U.S. Attorney Carole S. Rendon said. “Aggressive law enforcement is one component to confronting the opioid epidemic, along with increased education, changing prescribing practices and making treatment available to those who want help.”
FBI Special Agent in Charge Stephen D. Anthony said: “Heroin use continues to increase in astonishing proportions with overdose deaths in Ohio being among the highest in the country. Individuals, like Ronald Dale Wilson, Jr., will be held accountable for selling illegal drugs that kill. Efforts to rid the streets of heroin and other dangerous drugs remains a top priority for the FBI, our law enforcement partners, and the community.”
“We hope word is getting out that if you sell drugs in Marion and cause the death of another you are looking at a possible 20-year sentence," Marion Police Chief Bill Collins said. “We hope this proves to be a stronger deterrent to the thugs who choose to sell drugs in Marion.”
The charges include an enhanced penalty specification which could result in a mandatory minimum sentence of 20 years in prison. If convicted, the defendant’s sentence will be determined by the Court after reviewing 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 violation. In all cases the sentence will not exceed the statutory maximum.
This case was investigated by the Federal Bureau of Investigation and the Marion Police Department. The case is being prosecuted by Assistant United States Attorney Michael J. Freeman.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.