Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
28 February 2017
St. Croix Man Pleads Guilty to Conspiracy to Possess a Controlled Substance with Intent to DistributeRead the Press Release
St. Croix, USVI – Dimitrous Jefferson, 27, of St. Croix, pleaded guilty today in federal court on St. Croix to conspiracy to possess a controlled substance with intent to distribute, United States Attorney Ronald W. Sharpe announced.
On May 4, 2016, Jefferson and co-defendant Ray Harris, were employees of Worldwide Flight Services at the Henry E. Rohlsen Airport in St. Croix. As they entered the Transportation and Security Administration’s screening area, Jefferson triggered the metal detector. A search of his person revealed a brick-like package wrapped with gray duct tape and strapped to his leg. Harris had a similar package strapped to his leg. Both packages tested positive for cocaine. The total weight of the packages was approximately 992 grams. Jefferson told law enforcement officers that he was assisting Harris, who pleaded guilty on February 17, 2017.
Jefferson faces up to 20 years of incarceration for the offense and a fine of up to $1,000,000. A sentencing date has been set for June 28, 2017. Co-defendant Harris’ sentencing is scheduled for June 22, 2017.
The case was investigated by the Immigration and Customs Enforcement’s Homeland Security Investigations and is being prosecuted by Assistant U.S. Attorney Rhonda Williams-Henry.
Sixteen Individuals Charged in $60 Million Medicare Fraud SchemeRead the Press Release
DALLAS – An indictment returned by a federal grand jury in Dallas last week, and unsealed today, charges 16 individuals with offenses related to their participation in a health care fraud scheme, announced John Parker, U.S. Attorney for the Northern District of Texas.
The defendants charged are:
Bradley J. Harris, 35, of Frisco, Texas
Amy L. Harris, 42, of Frisco, Texas
Melanie L. Murphey, 35, of Fort Worth, Texas
Patricia B. Armstrong, 33, of Coppell, Texas
Mark E. Gibbs, 46, of Lindsay, Texas
Laila N. Hirjee, 50, of Plano, Texas
Syed M. Aziz, 51, of Frisco, Texas
Reziuddin Siddique, 63, of Allen, Texas
Charles R. Leach, 64, of Arlington, Texas
Jessica J. Love, 37, of Gainesville, Texas
Ali Rizvi, 49, of Carrollton, Texas
Tammie L. Little, 55, of Brashear, Texas
Mary Jaclyn Pannell, 29, of Krum, Texas
Taryn E. Stuart, 32, of Sanger, Texas
Slade C. Brown, 47, of Plano, Texas
Samuel D. Anderson, 35, of Carrollton, Texas
Each indicted defendant is charged with one count of conspiracy to commit health care fraud. Twelve of the defendants are also charged with at least one other count related to the conspiracy.
“That tens of millions of dollars were stolen through fraud is shocking enough,” said U.S. Attorney Parker. “That these defendants used human life at its most vulnerable stage as the grist for this scheme displays a shocking level of depravity that this community simply cannot tolerate.”
The indictment alleges that from July 2012 to September 2016, Novus billed Medicare and Medicaid more than sixty million dollars for fraudulent hospice services, of which more than thirty-five million dollars was paid to Novus. Specifically, defendants submitted false claims for hospice services, submitted false claims for continuous care hospice services, recruited ineligible hospice beneficiaries by providing kickbacks to referring physicians and healthcare facilities, and falsified and destroyed documents to conceal these activities from Medicare.
Novus Health Services and Optim Health Services, Inc. were operated and co-owned by Harris, who was a certified public accountant without any medical licenses. Harris operated the two companies essentially as one. Licensed physicians who were paid Novus medical directors provided little to no oversight of Novus’s hospice patients. Care was directed primarily by Novus nurses and by Harris. Defendants who were not physicians would determine whether a beneficiary would be certified for, recertified for, or discharged from hospice; whether they would be placed on continuous care; and how and to what extent they would be medicated with drugs such as morphine and hydromorphone. These decisions on medical care were often driven by financial interest rather than patient need. The defendants would decide whether to place, keep, or discharge a beneficiary from hospice depending on how that decision would affect Novus’s ability to bill Medicare.
Physicians were recruited who would refer hospice patients in exchange for medical director salaries. Assisted living facilities, in exchange for patient referrals, were provided remuneration including Certified Nursing Assistants paid for by Novus to staff the facilities.
Novus medical directors would sign certificates of terminal illness indicating that they had determined that a beneficiary was eligible for hospice services regardless of whether this was true or not; prepare re-certifications of terminal illness for beneficiaries already on hospice, which falsely indicated that the beneficiaries continued to be hospice eligible; and routinely give medical directors’ login information to others to log into Novus’s electronic medical records database to create and sign physician orders for services that had not been performed or had not been performed by the medical directors.
Harris would direct that beneficiaries be placed on continuous care, whether the beneficiaries needed this service or not. This decision would often be made without any consultation with a physician. Continuous care physician’s orders were falsified and uploaded into Novus’s electronic medical records database. When a beneficiary was on continuous care, the Novus nurses would administer high doses of Schedule II controlled medications such as morphine or hydromorphone, whether the beneficiary needed the medication or not. The defendants and others obtained these Schedule II medications with “C2” prescription forms (used for the prescription of controlled substances) which had been unlawfully pre-signed by medical directors. One reason for this aggressive medicating practice was that Harris wanted to ensure that the beneficiaries’ medical records contained documentation that would justify billing Medicare at the higher continuous care billing rate. There were instances when these excessive dosages resulted in serious bodily injury or death to the beneficiaries.
An indictment is merely an allegation and defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. If convicted, however, each count of conspiracy to commit health care fraud and substantive health care fraud count carries a maximum statutory penalty of 10 years in federal prison and a $250,000 fine.
The case is being investigated by the Federal Bureau of Investigation, the U.S. Department of Health and Human Services (HHS) Office of Inspector General (OIG), and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU).
Assistant U.S. Attorney Russell Fusco is prosecuting the case.
# # #
Silver Springs Man Arrested on Pornography ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Ronald Caryl, 24, of Silver Springs, NY, was arrested and charged by complaint with receipt of child pornography. The charge carries a mandatory minimum penalty of five years in prison and a maximum of 20 years in prison.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, on February 14, 2017, the defendant began communicating on MeetMe.com, a social networking service, with a 23-year-old woman in Nashville, Tennesee. During the conversation, the two began to discuss Caryl providing the woman with $300 to have sex with her. The woman wrote, “just $300 and u do what u want to me.” The defendant replied, “do you have a young girl who could join I’ll pay more...you into young girls”? The woman responded, “as long as they r 18 and older”, to which Caryl replied, “Ya I meant younger I’ll pay 6000.” The woman replied, “I can’t put things in her mouth she gets sick she’s disabled.” The defendant went on to say, “show me your daughter” and then the woman allegedly sent a picture to the defendant. Caryl continued to press the woman to send naked pictures of her one-year-old daughter.
A MeetMe.com staff member identified the possible endangerment of a minor and illegal content and notified the National Center for Missing and Exploited Children (NCMEC). On February 24, 2017, NCMEC notified the FBI of the content which was traced to an IP address belonging to the defendant. Caryl was arrested this morning.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and was detained pending a detention hearing on March 2, 2017, at 2:30 p.m.
The complaint is the result of an investigation by the Federal Bureau of investigation, under the direction of Special Agent-in-Charge Adam S. Cohen. Additional assistance was provided by the Wyoming County Sheriff’s Office, Cheektowaga Police Department, and the Niagara County Sheriff’s Office.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Seven Defendants Plead Guilty to Millions of Dollars of Fraudulent Sales to Defense DepartmentRead the Press Release
Assistant U.S. Attorney Rebecca S. Kanter (619-546-7304)
NEWS RELEASE SUMMARY – February 28, 2017
Jeffrey Harrington and Michael Mayer, the owners of several defense contracting firms, pleaded guilty before U.S. Magistrate Judge Karen Crawford this morning to conspiring to commit wire fraud and file false claims, and to making false statements on their federal income tax returns.
The defendants admitted obtaining money from the United States by making false representations and false claims to the Department of Defense (“DoD”) for payment on items defendants knew had not been sold to the Navy, but which had been substituted with other, unauthorized products. Three of the companies owned by Harrington and Mayer, including San Diego-based Veteran Logistics, Inc. (“VLI”), as well as two employees, also pleaded guilty to conspiracy for their role in the offense.
The three defense contractors – VLI, Industrial Xchange, Inc., and Boston Laser Technology, Inc. – regularly sold supplies to the DoD, the Department of Navy, the General Services Administration and other federal departments and agencies. Each company had multiple contracts with DoD’s Defense Logistics Agency (“DLA”) to sell products to the federal government through “EMALL,” a web-based electronic commerce site that allows authorized users to search, compare and purchase commonly used products. Each contract allowed the company to sell up to $5 million in pre-approved goods at set, maximum prices. As detailed in court filings, however, the defendants fraudulently manipulated the EMALL system to substitute unapproved, overpriced items for the materials purportedly sold to the government.
In one example, the defendants agreed on EMALL to supply Maritime Expeditionary Security Group Two at Norfolk Naval Shipyard with over 10,000 “Post-It” writing paper pads, but then replaced these approved items with 50 electronic transceivers they were not authorized to sell. By fraudulently substituting these products, the defendants were able to circumvent procurement controls and charge the military a 134% mark-up on the transceivers. The defendants repeatedly employed this fraudulent technique dozens of times, on a host of products, across a wide array of components in the military.
The scheme also allowed the defendants to conceal the sale of consumer electronics and other items that could be used to corrupt military officials. For example, in one contract VLI agreed to supply the USS Ronald Reagan aircraft carrier with industrial, motorized plumber snakes. VLI then fraudulently substituted that order with 100 29” Toshiba TVs, 60 32” Toshiba TVs and 160 TV tilt mounts. VLI purchased these items for only $39,558, but billed the government $66,807.
The plea agreements also detailed a series of transactions between October 2013 and April 2014, wherein IXI and another VLI-affiliated company, At Your Command (“AYC”), created approximately 20 EMALL carts for Navy Explosive Ordnance Disposal Group #2 (EODG-2) in Norfolk, Virginia, containing various items, including bags, canvas organizer bags, and pouches, for which the defendants billed DLA and received $1,303,024. In reality, the defendants actually provided EODG-2 with parachutes, altimeters and other sky diving gear purchased for approximately $924,252, realizing a profit of $378,772 by substituting improperly procured parachuting equipment.
The defendants were hugely successful in their fraud, and received approximately $45 million for EMALL sales related to over 12,000 transactions between approximately March 1, 2008 and January 31, 2015. On a small sample of 60 of those transactions between August 2009 and October 2013, totaling approximately $2,868,590 in sales, the loss to the Navy was approximately $1,417,395, indicating a fraud loss of approximately 50%.
Acting United States Attorney Robinson observed: “Not only did the defendants inflict financial harm on the taxpayers by charging obscene mark-ups on these items, but they potentially compromised combat readiness by providing unauthorized, non-conforming parts. What’s more, their scheme posed a significant danger of corrupting Navy personnel and others by essentially creating a ‘slush fund’ to purchase non-military items, such as televisions, computers, cameras, iPhones and other electronics. This Office will continue to use all the tools available, including the District’s Procurement Fraud Working Group, to prevent and deter those who pose the threat of fraud and corruption to our procurement process.”
“Corrupt contracting practices damage the public trust and ultimately undermine the efforts of the Department of Defense to support our men and women in uniform,” said Chris Hendrickson, Special Agent in Charge of the Defense Criminal Investigative Service Western Field Office. “Along with our law enforcement partners, we make the investigation of such offenses a top priority. Cases such as these are not motivated by need or other difficult personal circumstances; they are the product of simple greed.”
“The successful prosecution of this case was the direct result of collaborative teamwork between the Naval Criminal Investigative Service, our Federal Law Enforcement partners and the U.S. Attorney’s Office,” said Gunnar Newquist, Special Agent in Charge of the NCIS Southwest Field Office. “Convictions like this should be a warning to those who would attempt to take advantage of the US Navy, for personal gain.” As SAC Newquist observed, “We are unified in our efforts to catch criminals who not only defraud the US Navy, but specifically are stealing money from the American taxpayers at the direct loss to our warfighters.”
FBI Special Agent in Charge Eric S. Birnbaum stated, “Today’s convictions are a result of federal partners teaming together to stop the loss of millions of government dollars as well as the greed and deceit employed in this case.” SAC Birnbaum continued, “The FBI will continue to work to root out fraud against our government and uncover the schemes to steal federal taxpayer dollars.” The FBI encourages the public to report allegations of public corruption to the FBI public corruption hotline at telephone number (877) NO-BRIBE (662-7423).
In addition to the fraud charges, Harrington and Mayer also pleaded guilty to false statements on their tax returns for the tax years 2010 and 2014. Harrington and Mayer both used VLI to pay personal expenses in excess of $200,000 and $100,000, respectively, thereby underreporting their 2010 income on their personal tax returns. Both defendants, in contravention of the advice of their tax professionals, continued this behavior of using VLI to pay for personal expenses and not declaring the additional money as income, causing their 2014 income tax returns to under-report their income by approximately $436,017 and $674,704. By under-reporting their income, Harrington underpaid taxes by $141,113 and Mayer underpaid taxes by $299,511 for 2010 and 2014.
“IRS Criminal Investigation remains committed to investigating individuals who treat corporate funds as their personal piggy bank,” said Acting Special Agent in Charge Anthony J. Orlando, IRS Criminal Investigation. “As admitted in court today, Mr. Harrington and Mr. Mayer used their positions within VLI to defraud not just their own company, but the honest, hardworking Americans who pay their tax obligations.”
All defendants also agreed to forfeiture of the proceeds of their offense, and have collectively agreed to forfeit over $1.6 million in illegal proceeds. All defendants were ordered to return to court on May 19, 2017, at 8:30am, for a hearing before District Judge Gonzalo Curiel.
CORPORATE DEFENDANTS
Veteran Logistics, Inc.
Industrial Xchange, Inc.
Boston Laser Technology, Inc.
INDIVIDUAL DEFENDANTS Criminal Case No. 17CR0488-GPC
Jeffrey Harrington Age: 55 San Diego, CA
Michael Mayer Age: 63 San Diego, CA
Kimberlee Hewitt Age: 45 Ridgewood, New York
Natalee Hewitt Age: 49 Virginia Beach, Virginia
SUMMARY OF CHARGES
Count 1 (All): Conspiracy to commit wire fraud and file false claims (18 U.S.C. § 371).
Maximum penalties: 5 years’ imprisonment; 3 years’ supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $10.
Count 2 (Harrington): False Statement on Tax Return (26 U.S.C. § 7206(1)).
Maximum penalties: 3 years’ imprisonment; 1 year supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100.
Count 3 (Mayer): False Statement on Tax Return (26 U.S.C. § 7206(1)).
Maximum penalties: 3 years’ imprisonment; 1 year supervised release; a fine of $250,000 or twice the gross gain or gross loss resulting from the offense, whichever is greatest; and a mandatory special assessment of $100.
AGENCIES
Defense Criminal Investigative Service
Defense Logistics Agency, Office of Inspector General
Federal Bureau of Investigation
General Services Administration, Office of Inspector General
Internal Revenue Service, Criminal Investigation
Naval Criminal Investigative Service
Sarasota Real Estate Professional Sentenced to Prison for Mortgage FraudRead the Press Release
Tampa, Florida – U.S. District Judge James D. Whittemore yesterday sentenced Freddy Orjuela, Sr. (49, Sarasota) to two years in federal prison and to pay $960,020 in restitution for making false statements in a mortgage loan application to a federally insured financial institution. As part of the sentence, the Court also entered a money judgment in the amount of $1,475,950, the proceeds of the fraud.
A jury found Orjuela guilty on December 14, 2016, following a three- day trial.
According to court documents, Orjuela submitted a mortgage loan application to Century Bank on which he knowingly and willfully overstated his income, understated his liabilities, and falsely denied he had declared bankruptcy within the past seven years.
This case was investigated by the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorneys Callan Albritton and Bob Mosakowski.
Rockford Woman Sentenced to 51 Months in Federal Prison for Tax Fraud and Identify TheftRead the Press Release
ROCKFORD — A Rockford woman was sentenced in federal court today by U.S. District Judge Frederick J. Kapala for making false claims for federal income tax refunds and using other persons’ identification in connection with the fraudulent claims.
CRYSTAL S. JACKSON, 29, who pleaded guilty to the charges on Nov. 28, 2016, was sentenced to 51 months in federal prison, to be followed by three years of supervised release. She was ordered to pay $200 in special assessment, and to pay the United States Treasury $99,479 in restitution.
According to the written plea agreement, Jackson admitted that between 2011 and 2013, she prepared and filed, both electronically and by mail, 45 false federal individual income tax returns in the names of other individuals without their permission, causing fraudulent claims for refunds to be made against the United States Treasury. The 45 false returns were filed with the IRS for tax years 2010, 2011, and 2012, and requested refunds totaling $189,237. Jackson admitted that as a result of her fraud, the IRS issued refunds in the total amount of $99,479. According to the plea agreement, the refunds were issued in the form of U.S. Treasury checks or credited to debit cards in the names of the individuals in whose names Jackson fraudulently filed the federal income tax returns. Jackson further admitted that she used ATM machines to withdraw the funds placed on the debit cards.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and James D. Robnett, Special Agent-in-Charge of the Chicago Field Office of the Internal Revenue Service - Criminal Investigation Division.
The government was represented by Assistant U.S. Attorney Joseph C. Pedersen.
Rockford Insurance Executive Charged with Defrauding ClientsRead the Press Release
ROCKFORD — A Rockford man was indicted today by a federal grand jury on fraud charges.
TODD J. FENDLER, 41, was charged with one count of wire fraud and one count of mail fraud in connection with a scheme to defraud former insurance clients of Fendler’s businesses.
According to the indictment, Fendler controlled and operated several insurance-related businesses in Rockford, including Surplus Market Solutions LLC, Northern Underwriting Managers Inc., and Northern Illinois Insurance Agency Inc. The indictment alleges that Fendler obtained bank account information from businesses and individuals who had applied for insurance policies through Fendler’s companies, and that Fendler used that information to create fictitious checks purportedly issued by the applicants. Fendler deposited those fictitious checks, the indictment charges, into bank accounts of Surplus Market Solutions. The indictment identified two such checks: a check for $1,447 purportedly drawn upon a bank account of the Hollywood Wax Museum Myrtle Beach LLC, and a check for $5,205.79 purportedly drawn upon a bank account of the Beer Haus LLC.
Arraignment has been set for March 8, 2017, at 10:00 a.m., before U.S. Magistrate Judge Iain D. Johnston in Rockford.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and E. C. Woodson, Postal Inspector-in-Charge of the U.S. Postal Inspection Service in Chicago.
Each count in the indictment carries a maximum penalty of 20 years in prison, and a maximum fine of $250,000. If convicted, the Court must impose a reasonable sentence under the advisory United States Sentencing Guidelines, as well as restitution. The public is reminded that an indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving the defendant’s guilt beyond a reasonable doubt.
The government is being represented by Assistant U.S. Attorney John G. McKenzie.
Rancho Cordova Man Found Guilty of Receipt of Child PornographyRead the Press Release
SACRAMENTO, Calif. — Today, after a one-day bench trial, U.S. District Judge Garland E. Burrell Jr. found Christopher Geanakos, 30, of Rancho Cordova, guilty of one count of receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to evidence presented at trial, law enforcement identified a computer at Geanakos’s residence offering images of child pornography through a file-sharing network. During the execution of a search warrant, law enforcement identified Geanakos’s desktop computer as the source for the online images. Law enforcement subsequently performed a forensic examination of this computer and confirmed that multiple images and movies depicting child pornography had been downloaded onto the computer between 2010 and 2013, including images that depicted infant and toddler victims.
This case is the product of an investigation by the Internet Crimes Against Children Task Force. Assistant U.S. Attorneys Audrey B. Hemesath and Shelley D. Weger are prosecuting the case.
Geanakos is scheduled to be sentenced by Judge Burrell on May 19, 2017. Geanakos faces a minimum of five years in prison and a maximum statutory penalty of 20 years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Pittsburgh Drug Dealer Sentenced to 10 Years in Federal PrisonRead the Press Release
JOHNSTOWN, Pa. – A resident of Pittsburgh, Pa., has been sentenced in federal court to 120 months in prison and five years’ supervised release on his conviction of violating federal narcotics laws, Acting United States Attorney Soo C. Song announced today.
United States District Judge Kim R. Gibson imposed the sentence on Warren Charles Green, IV, 30, of Pittsburgh, Pa.
According to information presented to the court, on Apr. 5, 2013, Green possessed with the intent to distribute 1 kilogram or more of heroin.
Assistant United States Attorney Stephanie L. Haines prosecuted this case on behalf of the government.
Ms. Song commended the Pennsylvania State Police, Somerset Turnpike Barracks, and the Drug Enforcement Administration for the investigation leading to the successful prosecution of Green.
Phoenix Man, Woman Charged for Possessing Five Kilos of CocaineRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Phoenix, Ariz., man and woman have been charged in federal court after five kilograms of cocaine were found in their truck during a highway interdiction.
Luis J. Duarte, 58, and Adriana Gutierrez-Ramirez, also known as Adriana Peralta, 42, both of Phoenix, were charged in a criminal complaint filed in the U.S. District Court in Springfield on Monday, Feb. 27, 2017, with possessing cocaine with the intent to distribute. Duarte and Gutierrez-Ramirez, who had an initial court appearance yesterday, remain in federal custody pending a detention hearing on Thursday, March 2, 2017.
According to an affidavit filed in support of the federal criminal complaint, a Missouri State Highway Patrol trooper stopped a 2016 Ford F350 cargo utility Budget rental truck traveling eastbound on I-44 in Greene County, Mo., on Saturday, Feb. 25, 2017. The truck, being driven by Duarte with Gutierrez-Ramirez as passenger, allegedly weaved onto the shoulder three times.
During the traffic stop, the affidavit says, the trooper noted discrepancies in statements made by Duarte and Gutierrez-Ramirez, and both seemed extremely nervous. The trooper searched the vehicle and discovered a kilogram-sized package of cocaine. Four additional kilogram-sized packages of cocaine were discovered during a later search of the vehicle. The packages were located inside a cardboard box containing clothing towards the front of the cargo area of the truck.
Duarte and Gutierrez-Ramirez told law enforcement officers that they were being paid to drive the truck from Phoenix to Ohio.
Dickinson cautioned that the charge contained in this complaint is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Nhan D. Nguyen. It was investigated by the Drug Enforcement Administration, the Missouri State Highway Patrol and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Philadelphia Man Charged with Interstate Transportation of Stolen Print from the Muhammad Ali CenterRead the Press Release
Gerald Garrett, 58, of Philadelphia, Pennsylvania was charged today by Information with the interstate transportation of stolen property in connection with the theft from the Muhammad Ali Center in Louisville, Kentucky of a signed LeRoy Neiman print of Muhammad Ali, announced Acting United States Attorney Louis D. Lappen.
If convicted the defendant faces a maximum possible sentence of 10 years imprisonment.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney K.T. Newton.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed
innocent unless and until proven guilty.
Passaic County, New Jersey, Doctor Pleads Guilty in Connection with Test-Referral Scheme with New Jersey Clinical LabRead the Press Release
NEWARK, N.J. – A doctor practicing in Passaic County, New Jersey, today admitted taking bribes in connection with a long-running and elaborate test referral scheme operated by Biodiagnostic Laboratory Services LLC (BLS), of Parsippany, New Jersey, its president and numerous associates, U.S. Attorney Paul J. Fishman announced today.
Salvatore Conte, 52, of Totowa, New Jersey, pleaded guilty to Count One, Count Two, Count Five, and Count Eight of an indictment charging him with conspiracy to violate the Anti-Kickback Statute and the Federal Travel Act by accepting bribes, one substantive violation of the Anti-Kickback Statute, one substantive violation of the Federal Travel Act, and one substantive violation of wire fraud. Conte pleaded guilty today before U.S. District Judge Stanley R. Chesler in Newark federal court.
According to documents filed in this case and statements made in court:
Conte admitted accepting bribes from BLS employees and associates in the form of sham rental, service, and consulting agreements. From February 2009 through April 2013, Conte received bribes totaling approximately $130,000 from BLS employees and associates. Conte’s referrals generated approximately $525,000 in lab business for BLS.
Conte was the fifth physician indicted in connection with the BLS bribery scheme. Ahmed El Soury and Thomas Savino were indicted on Dec. 13, 2016 and Dec. 20, 2016, respectively. Brett Ostrager – who was indicted Aug. 11, 2015 and pleaded guilty on Dec. 22, 2015 – was sentenced on June 8, 2016 to 37 months in prison. Bernard Greenspan was indicted on March 14, 2016 and his trial is ongoing before U.S. District Judge William H. Walls.
The investigation has thus far resulted in 42 guilty pleas – 28 of them from doctors – in connection with the bribery scheme, which its organizers have admitted involved millions of dollars in bribes and resulted in more than $100 million in payments to BLS from Medicare and various private insurance companies. It is believed to be the largest number of medical professionals ever prosecuted in a bribery case.
The investigation has to date recovered more than $12 million through forfeiture. On June 28, 2016, BLS, which is no longer operational, pleaded guilty and was required to forfeit all of its assets.
The conspiracy, Anti-Kickback, and Federal Travel Act counts to which Conte pleaded guilty are each punishable by a maximum potential penalty of five years in prison. The wire fraud charge is punishable by a maximum potential penalty of 20 years in prison. Each count also carries a maximum $250,000 fine, or twice the gross gain or loss from the offense. Conte’s sentencing is scheduled for June 6, 2017.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; inspectors of the U.S. Postal Inspection Service, under the direction of Inspector in Charge James V. Buthorn; IRS–Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert with the ongoing investigation.
The government is represented by Assistant U.S. Attorneys Joseph N. Minish, Danielle Alfonzo Walsman, and Jacob T. Elberg, Chief of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Newark, as well as Assistant U.S. Attorney Barbara Ward, Acting Chief of the office’s Asset Forfeiture and Money Laundering Unit.
U.S. Attorney Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Howard Brownstein Esq., Jersey City, New Jersey
Omaha Man Pleads Guilty to Tax FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that on February 27, 2017, Jesus Rivera Cruz of Omaha, Nebraska, age 41, pled guilty to one (1) count of filing a false tax return before the Honorable Laurie Smith Camp, Chief United States District Court Judge. An investigation conducted by the Internal Revenue Service-Criminal Investigation Division determined that the defendant, the owner of Rivera’s Mexican Food, a restaurant in Omaha, failed to report a significant portion of his gross receipts for the tax years 2010, 2011 and 2012. As a result of this failure to report said receipts, the United States suffered a tax loss of approximately $105, 029.
As part of the plea agreement the defendant has agreed to make full restitution to the government. Additionally, the defendant faces a term of incarceration of up to three years, a fine of $250,000 and a term of supervised release of up to one year. Sentencing is set for May 26, 2017. According to Special Agent in Charge of the Internal Revenue Service-Criminal Investigation Division Karl Stiften, “We should not forget that the ultimate victims in tax fraud cases are those honest taxpayers who diligently file returns and pay their taxes each year”.
Ohio Man Admits Defrauding Essex County, New Jersey, Company Out of More Than $950,000Read the Press Release
NEWARK, N.J. – A Milford, Ohio, man today admitted using an Essex County, New Jersey, medical company’s credit card without the company’s permission or consent to fraudulently obtain more than $950,000, U.S. Attorney Paul J Fishman announced.
John Tekulve, 44, pleaded guilty before U.S. District Judge Katharine S. Hayden in Newark federal court to an information charging him with wire fraud.
According to documents filed in this case and statements made in court:
From January 2011 through October 2012, Tekulve owned a medical supply company that sold products to an Essex County medical company. He obtained the company’s credit card information, which he used to fraudulently bill the company nearly $1 million for products and services that neither Tekulve nor his medical supply company provided. Tekulve then used the proceeds of the scheme for his own purposes, including the purchase of high-end automobiles and jewelry.
The count of wire fraud is punishable by a maximum potential penalty of 20 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense.
U.S. Attorney Fishman credited special agents with the U.S. Secret Service, under the direction of Special Agent in Charge Mark McKevitt in Newark, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Veronica Allende of the U.S. Attorney’s Office in Trenton.
Defense counsel: Peter Carter Esq., Newark
North Carolina man is sentenced for unlawful possession of firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Russell Cary Owens, 51, of Thomasville, North Carolina, was sentenced in federal court to 12 months incarceration for illegally possessing a firearm, Acting United States Attorney Betsy Steinfeld Jividen announced.
Owens, who was previously convicted of a felony in Texas, was discovered in possession of over ten firearms in Monongalia County, West Virginia, in June 2016. He pled guilty to one count of “Prohibited Person in Possession of a Firearm” in November 2016.
Assistant U.S. Attorney Traci M. Cook prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. District Judge Irene M. Keeley presided.
News AdvisoryRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian, along with representatives of county, state and federal law enforcement agencies, will hold a news conference tomorrow, March 1, at 2:30 p.m. in Syracuse, following an expected guilty plea tomorrow at 1 p.m. in U.S. v. Seppi.
- Change of plea hearing in U.S. v. Seppi – March 1 at 1 p.m. in the courtroom of the Hon. Brenda K. Sannes, James M. Hanley Federal Building, 100 South Clinton Street, Syracuse, NY.
- News conference – March 1 at 2:30 p.m. on the Ninth Floor of the James M. Hanley Federal Building, 100 South Clinton Street, Syracuse.
New Bedford Woman Sentenced to Prison for Operating Drug Stash HouseRead the Press Release
BOSTON – A New Bedford woman was sentenced yesterday in U.S. District Court in Boston for stashing drugs in her home for a drug trafficking ring that operated in Bristol County, Mass., and Providence, R.I.
Shirley Vargas, 45, was sentenced by U.S. District Court Judge Nathaniel Gorton to 18 months in prison and one year of supervised release. Shortly before sentencing, Vargas pleaded guilty to maintaining a place for drug purposes.
Vargas admitted that she stored large quantities of narcotics on behalf of Luis Lopez, a Tiverton, R.I.-based drug dealer. During a number of federal searches and arrests in June 2016, federal agents searched Vargas’ New Bedford residence and discovered approximately one kilogram of a fentanyl and acetylfentanyl mix hidden under her bed. In addition, in Vargas’ kitchen pantry, investigators found drug packaging materials, which included a drug press and baggies. Acetylfentanyl is a highly dangerous fentanyl analogue that is generally manufactured in China and imported into the United States.
In imposing the sentence, Judge Gorton acknowledged that although Vargas had no role in distributing the narcotics found in her home, she could be sure that her conduct “contributed” to the “pain and suffering” of drug addicts and their families.
In January 2017, Lopez was sentenced to 15 years in prison.
Acting United States Attorney William D. Weinreb; Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration, Boston Field Division; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; New Bedford Police Chief Joseph C. Cordeiro; and Fall River Police Chief Daniel S. Racine made the announcement. Assistant U.S. Attorney Eric S. Rosen of Weinreb’s Narcotics and Money Laundering Unit prosecuted the case.
Naples Man Sentenced to 14 Years in Connection with A “PIP” Scheme to Defraud Automobile Insurance CompaniesRead the Press Release
Fort Myers, FL – U.S. District Judge Sheri Poster Chappell has sentenced Nesly Loute (52, Naples) to 14 years’ imprisonment for conspiracy to commit mail fraud. In addition, the Court ordered him to pay restitution in the amount of $2,146,147.23 to the victim automobile insurance companies.
Loute was found guilty by a federal jury on September 29, 2016.
According to the evidence introduced during the six-day trial, Loute conspired with others to operate unlicensed chiropractic clinics and bill automobile insurance companies for Personal Injury Protection (PIP) benefits. Members of the conspiracy also paid patients to induce them to seek treatment at the unlicensed clinics so that the automobile insurance companies could be billed for their PIP benefits. In addition, members of the conspiracy participated in staged motor vehicle accidents and then submitted claims to automobile insurance companies for PIP benefits based on those fake motor vehicle accidents.
Five others previously pleaded guilty to charges relating to this conspiracy. Four of those individuals have already been sentenced. Garry Joseph (37, Naples) pleaded guilty to conspiracy to commit mail fraud and was sentenced to 37 months’ imprisonment. Anouce Toussaint (33, Naples) pleaded guilty to conspiracy to commit mail fraud and conspiracy to launder money and received 18 months’ imprisonment. Maria Victoria Lopez (44, Moore Haven) pleaded guilty to conspiracy to commit mail fraud and was sentenced to 3 years’ probation. David Adamson (47, Bonita Springs), a licensed chiropractor, pleaded guilty to mail fraud and was sentenced to serve a 5-year term of probation and 180 days of home confinement. Wisler Cyrius (35, Naples) pleaded guilty to conspiracy to commit mail fraud and conspiracy to launder money. He is scheduled to be sentenced on March 13, 2017.
This case was investigated by the Federal Bureau of Investigation - Fort Myers Office, the State of Florida’s Department of Financial Services Division of Insurance Frauds - Fort Myers Office, the Internal Revenue Service - Criminal Investigation in Fort Myers, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, Fort Myers. Assistance was also provided by the National Insurance Crime Bureau, the Florida Highway Patrol, the Florida Department of Health, Florida’s Agency for Health Care Administration, and the State Attorneys’ Offices for the 13th and 19th Judicial Circuits. The following insurance companies also assisted in the case: Travelers, Nationwide, Bristol West, Esurance, Windhaven, Farmers, Direct General, Allstate, State Farm, Progressive, Geico, Infinity, and Foremost. It was prosecuted by Assistant United States Attorneys Charles D. Schmitz and David G. Lazarus.
Middletown Man Sentenced to 6 Years in Federal Prison for Bank Robbery Spree in 2015Read the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MATTHEW DRAGONE, 32, of Middletown, was sentenced yesterday by U.S. District Judge Janet Bond Arterton in New Haven to 72 months of imprisonment, followed by three years of supervised release, for robbing six banks, and attempting to rob a seventh bank, in 2015.
According to court documents and statements made in court, DRAGONE robbed the Webster Bank at 145 Highland Avenue in Cheshire on August 12, 2015; the TD Bank at 1127 Farmington Avenue in Berlin on August 13, 2015; the Liberty Bank at 151 Main Street in Deep River on August 17, 2015; the TD Bank at 25 Wells Road in Wethersfield on August 31, 2015; the Webster Bank at 377 Cromwell Avenue in Rocky Hill on September 9, 2015 (attempt); the Liberty Bank at 357 Main Street in Durham on September 3, 2015, and the TD Bank at 184 Clinton Road in Killingworth on September 11, 2015. During each of the robberies, DRAGONE, wearing a baseball cap and dark sunglasses and holding a cellphone to his ear, presented a teller with a bank-style bag affixed with a note that demanded money.
On September 16, 2015, a search of DRAGONE’s residence revealed clothing and sunglasses consistent with those worn during the Durham robbery on September 3, as well as a bank-style bag consistent with the one used during several of the bank robberies.
DRAGONE was arrested on September 18, 2015. On February 16, 2016, he pleaded guilty to one count of bank robbery.
This investigation was conducted by the Federal Bureau of Investigation, the Connecticut State Police and the Middletown, Cheshire, Berlin, Wethersfield, and Rocky Hill Police Departments, with the assistance of the Connecticut Department of Emergency Services and Public Protection, Division of Scientific Services. The case was prosecuted by Assistant U.S. Attorney Douglas P. Morabito.
Middlesex County, New Jersey, Man Admits to Distribution and Possession of Child PornographyRead the Press Release
NEWARK, N.J. – A Middlesex County, New Jersey, man today admitted distributing and possessing images of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
John Fricovsky, 57, of Edison, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging him with one count of distribution of child pornography and one count of possession of child pornography.
According to documents filed in the case and statements made in court:
Fricovsky admitted that in February 2015 he sent an email attaching an image of child sexual abuse involving a child under the age of 12. He also admitted to, in December 2015, possessing computer devices containing at least 10, but fewer than 150, images of child sexual abuse.
The possession of child pornography charge to which Fricovsky pleaded guilty carries a maximum potential penalty of 20 years in prison and a $250,000 fine. Fricovsky will be required to register as a sex offender. Sentencing is currently scheduled for June 7, 2017.
U.S. Attorney Fishman credited Special Agents with Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Office Criminal Division in Newark.
Methamphetamine Dealer Sentenced to 24 Years in PrisonRead the Press Release
Brian Randall, 51, of Castalian Springs, Tennessee, was sentenced yesterday by U.S. District Judge Waverly Crenshaw, Jr., to 24 years in prison, followed by five years of supervised release, for operating a large-scale methamphetamine conspiracy, announced United States Attorney David Rivera.
Randall and seven other Middle Tennessee individuals were indicted in July 2016 and charged with various offenses relating to the meth distribution conspiracy. In addition, two other individuals from Bakersfield, California were indicted in the conspiracy in August 2016.
Evidence presented during Randall’s guilty plea and sentencing hearings established that between February 2015 and July 2016, he received numerous kilograms of methamphetamine from California through FedEx shipments and the U.S. Postal Service. Randall then mailed cash payments back to California and sold the methamphetamine to mid-level and street-level dealers for resell. Randall also possessed a number of firearms as he sold and stored methamphetamine.
Judge Crenshaw ordered Randall to serve 19 years in prison for the drug trafficking offenses and an additional 5 years for firearm offense. In addition, Randall must forfeit the firearms and any other property directly or indirectly related to his crimes in an amount of up to $2,000,000.
The remaining defendants in this case are awaiting trial and are presumed innocent unless and until proven guilty in a court of law.
This case was investigated by the Federal Bureau of Investigation, the United States Postal Inspection Service, and the Lebanon Police Department. The case is being prosecuted by Assistant U.S. Attorney Ahmed A. Safeeullah.
Manchester Woman Sentenced for Heroin and Fentanyl Distribution ConspiracyRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Jeannette Hardy, 26, of Manchester, New Hampshire, was sentenced to ten years in federal prison based upon her conviction for conspiracy to distribute heroin and fentanyl.
According to court documents, the defendant distributed drugs in the Manchester, New Hampshire area since at least July of 2014. Pursuant to a search warrant, law enforcement recovered approximately 1.8 kilograms of fentanyl and $198,000 in drug proceeds from an apartment occupied by the defendant and another individual. In addition, law enforcement seized approximately $560,000 in drug proceeds from a safe deposit box. The defendant was not employed at the time of the conspiracy and the currency recovered by law enforcement constituted proceeds of the defendant’s drug distribution conspiracy.
Hardy, who previously had pleaded guilty, also must serve a five-year term of supervised release, following her release from prison.
All of the drug proceeds previously were forfeited to the United States.
“The state of New Hampshire is faced with a fentanyl and heroin crisis unlike ever before,” said Special Agent in Charge Michael J. Ferguson. “Those suffering from a fentanyl and heroin substance use disorder need treatment and recovery, but those that distribute and profit from spreading this misery need to be held accountable. This investigation demonstrates the strength of collaborative law enforcement in New Hampshire and our strong partnership with the U.S. Attorney’s Office to aggressively seek and bring to justice anyone who distributes these drugs.”
United States Attorney Rice said, “This prosecution is an example of the ongoing efforts of this office to prosecute those who are distributing fentanyl in New Hampshire. We will continue to work closely with our law enforcement partners to identity and prosecute distributors of fentanyl and to seize the proceeds from their unlawful and deadly drug distribution businesses.”
According to statistics maintained by the State of New Hampshire, over half of the drug overdose deaths in New Hampshire in 2015 and 2016 were related to fentanyl. Because a single gram of heroin or fentanyl can be used to create multiple individual dosage units that can be sold “on the street,” the quantity of fentanyl involved in this case could have generated large numbers of individual doses of fentanyl, each of which had the potential to cause a fatal overdose.
This case was supported by the Organized Crime Drug Enforcement Task Force (OCDETF). The OCDETF program is a federal multi-agency, multi-jurisdictional task force that supplies supplemental federal funding to federal and state agencies involved in the identification, investigation, and prosecution of major drug trafficking organizations. The case was investigated by the Manchester Police Department, the Massachusetts State Police, and the Drug Enforcement Administration and was prosecuted by Assistant United States Attorneys Georgiana L. Konesky and Donald Feith.
###
Man Sentenced for Operating Credit Card Forgery LabRead the Press Release
NEWPORT NEWS, Va. – Eric Charles Murray, 32, of Hampton, was sentenced today to 88 months in prison for his role in establishing and operating a high-tech credit card forgery lab in his home in 2016. Murray was also sentenced to five years of supervised release, which includes computer monitoring software on any computers Murray may have.
Murray pleaded guilty to conspiracy to commit bank, mail, and wire fraud; aggravated identity theft; and possessing a firearm as a convicted felon, on Nov. 15, 2016. According to court documents, Murray established a credit card forgery lab in his home in April 2016. Over a two-month period, he used Bitcoin currency to purchase stolen credit card information on the dark web, targeting information that belonged to Virginia residents. He and his conspirators then used the credit card forgery lab to place the stolen information on counterfeited credit and debit cards, which they had re-embossed in their own names and the names of others. Murray and his conspirators used these counterfeit cards to conduct unauthorized purchases of high-end electronics and cigarettes, which they then resold for cash in Hampton Roads and New York state. Murray was identified after two cardholders reported unauthorized uses of their cards to the Newport News Police Department. Surveillance images showed Murray purchasing items with counterfeit cards at multiple retail stores in Newport News. A May 2016 search of Murray’s home in Hampton recovered several items used to manufacture credit cards, 115 counterfeit credit cards, 233 stolen credit card numbers stored on a laptop, and two handguns—one of which had been previously reported stolen. At the time these items were recovered, Murray had been convicted of felony offenses, including a crime of violence, and his rights to possess a firearm had not been restored. After his arrest, Murray repeatedly attempted to obstruct the investigation and prosecution of his offenses by pressuring another individual to claim ownership and possession of the firearms found in his residence.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Joseph W. Cronin, Acting Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; Richard W. Myers, Chief of Newport News Police; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by Senior U.S. District Judge Robert G. Doumar. Assistant U.S. Attorney Kaitlin C. Gratton and Special Assistant Attorney Amy E. Cross prosecuted the case.
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-64.
MS-13 Member Pleads Guilty to Assaulting 18th Street Gang MembersRead the Press Release
BOSTON – A Chelsea man pleaded guilty today in U.S. District Court in Boston in connection with assaulting members of a rival gang.
Kevin Ayala, a/k/a “Gallito,” 23, pleaded guilty to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as a RICO conspiracy. Judge F. Dennis Saylor IV scheduled sentencing for May 25, 2017.
After a three-year, multi-agency investigation, Ayala was one of 61 individuals charged in a superseding indictment targeting the criminal activities of alleged leaders, members, and associates of MS-13 in Massachusetts. In documents previously filed with the Court, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including Massachusetts, as well as in Central America. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group, such as attacking and murdering gang rivals and individuals believed to be cooperating with law enforcement.
Ayala was identified as a member of MS-13’s Enfermos Criminales Salvatrucha clique operating in Chelsea, Mass. Ayala admitted that in April 2014, he engaged in an aggravated assault upon two members of the rival 18th Street gang in Chelsea.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. 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; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police made the announcement. Assistance was provided by Thomas Turco, Commissioner of the Massachusetts Department of Corrections; Essex County Sheriff and Lynn Police Chief Kevin F. Coppinger; Suffolk County Sheriff Steven W. Tompkins; Suffolk County District Attorney Daniel F. Conley; Middlesex County District Attorney Marian T. Ryan; Essex County District Attorney Jonathan Blodgett; Boston Police Commissioner William Evans; Chelsea Police Chief Brian A. Kyes; Everett Police Chief Steven A. Mazzie; Revere Police Chief Joseph Cafarelli; and Somerville Police Chief David Fallon.
The details contained in the indictments are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Louisville Man Charged in the Shooting of A United States Postal CarrierRead the Press Release
Charged with attempted murder of a federal employee
LOUISVILLE, Ky. – A Louisville man appeared before United States Magistrate Judge Dave Whalin today, charged by Grand Jury Indictment with attempted murder of a federal employee, that is a United States Postal Carrier (while engaged in the performance of his official duties), and with forcible assault of a federal employee, and discharge of a firearm during a crime of violence, announced United States Attorney John E. Kuhn, Jr.
Eric Bennett, 38, was arrested Monday, February 27, 2017, charged by a Grand Jury Indictment, that was unsealed today during his initial appearance in federal court. The charges are in connection with the shooting of United States Postal Carrier Da’Ron Lester on February 10, 2016.
Bennett remains in federal custody. A detention hearing is scheduled for tomorrow at 2:00 in Louisville, before Magistrate Judge Colin H. Lindsay. If convicted of the charges, Bennett faces a sentence of no more than 20 years in prison for attempted murder of a federal employee; no more than 20 years for forcible assault of a federal employee and 10 years in prison for the charge of discharging of a firearm during a crime of violence. Further, Bennett could be sentenced to a five-year term of supervised release and a fine of $750,000.
This case is being prosecuted by Assistant United States Attorneys Scott Davis and Marisa Ford, and the United States Postal Inspection Service (USPIS) is conducting the investigation.
The charge of a person by Grand Jury Indictment is an accusation only and that person is presumed innocent until and unless proven guilty.
London Man Indicted on Kidnapping Charge, Accused of Abducting Man in Georgetown Last MonthRead the Press Release
WASHINGTON – Paolo Aldorasi, 34, of London, was indicted today on a federal kidnapping charge stemming from the recent abduction of a man in the Georgetown area of Washington, D.C., announced U.S. Attorney Channing D. Phillips, Andrew Vale, Assistant Director in Charge of the FBI’s Washington Field Office, and Peter Newsham, Acting Chief of the Metropolitan Police Department.
Aldorasi was arrested by the FBI’s Seattle Field Office on Feb. 24, 2017, in SeaTac, Washington, on a criminal complaint filed in the U.S. District Court for the District of Columbia. He made his first appearance on Feb. 27, 2017, in the U.S. District Court for the Western District of Washington. He was ordered detained there pending a hearing set for March 2, 2017.
The indictment today was returned by a grand jury in the U.S. District Court for the District of Columbia. The charge of kidnapping carries a statutory maximum of life in prison.
According to the complaint, the victim reported that he was abducted on the afternoon of Jan. 26, 2017, from the 3400 block of O Street NW. Aldorasi, who was operating a sport utility vehicle, pulled alongside the victim as he was walking on the street, the complaint alleges. According to the complaint, Aldorasi ordered the victim to get into the vehicle and demanded money. He allegedly took the victim to four ATMs in the District of Columbia, in unsuccessful attempts to withdraw money, as well as to two retail establishments. After about two hours, the complaint states, Aldorasi eventually released the victim, unharmed, in the District of Columbia.
An indictment is merely a formal charge that a defendant has committed a violation of criminal laws and every defendant is presumed innocent until, and unless, proven guilty.
In announcing the indictment, U.S. Attorney Phillips, Assistant Director in Charge Vale, and Acting Chief Newsham commended the work of those who are investigating the case from the FBI’s Washington Field Office and the Metropolitan Police Department. They expressed appreciation for the assistance provided by the FBI’s Seattle Field Office and the U.S. Attorney’s Office for the Western District of Washington. Finally, they acknowledged the efforts of those who are working on the case from the U.S. Attorney’s Office for the District of Columbia, including Paralegal Specialist Teesha Tobias, and Assistant U.S. Attorneys Emory V. Cole and Kamilah House, who are prosecuting the case.
Lebanon Man Sentenced for Illegal Firearms Following Standoff with OfficersRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Lebanon, Mo., man has been sentenced for being a felon in possession of firearms following a nine-hour-long standoff with law enforcement officers while he was in the attic space of a friend’s residence.
Jesse D. Ivey, 40, of Lebanon, was sentenced by U.S. District Judge Beth Phillips on Monday, Feb. 27, 2017, to eight years in federal prison without parole.
On June 27, 2016, Ivey pleaded guilty to being a felon in possession of firearms. Ivey admitted he was in possession of a Charter Arms .38-caliber revolver, a high Standard .2-caliber pistol, a Ruger .357-caliber revolver and a Savage .30-06 rifle.
Ivey was involved in a high-speed pursuit by law enforcement officers on Jan. 5, 2016. When officers observed Ivey driving at speeds far in excess of the speed limit and attempted a traffic stop, he refused to yield and led officers on a high-speed pursuit. The pursuit ended with Ivey’s vehicle, a Jeep Wrangler, crashing into a wooded area in Laclede County, Mo. Ivey fled the scene of the crash before troopers arrived. During a search of the vehicle, troopers found the four loaded firearms, one of which had been reported stolen, and some tools that had been reported stolen.
Ivey was arrested on Feb. 10, 2016, after an approximately nine-hour-long standoff with law enforcement officers. Officers entered a residence in Lebanon while searching for Ivey and found a loaded Bushmaster AR-15 .223-caliber rifle lying on the floor of the second-floor master bedroom. (Ivey later admitted that he purchased the rifle to sell to a drug dealer in Kansas City.) They heard Ivey in the attic space above the bedroom and directed him to come out of the attic space, but he refused to surrender.
Due to the limited access to the attic and being unaware of whether Ivey was armed, officers withdrew from the residence and called the Missouri State Highway Patrol SWAT Team to assist. A nine-hour standoff proceeded before Ivey finally exited the attic and surrendered.
Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition. Ivey has two prior felony convictions for assault, arising from an incident in which he discharged a firearm at two individuals in 2013. In that case, law enforcement officers attempted to arrest Ivey but he fled his residence, stealing a neighbor’s truck, leading officers on a high speed chase that nearly resulted in a head-on collision with another vehicle. Ivey committed this federal offense while on probation from that case.
This case was prosecuted by Assistant U.S. Attorney Patrick Carney. It was investigated by the Missouri State Highway Patrol, the Laclede County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Las Cruces Man Sentenced to Prison for Conspiring to Sell 12 Grams of Methamphetamine to Undercover DEA AgentRead the Press Release
ALBUQUERQUE – Michael Angelo Strubhar, 47, of Las Cruces, N.M., was sentenced today in federal court to 41 months in prison followed by three years of supervised release for his conviction on methamphetamine trafficking charges. The sentence was announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Will R. Glaspy of the DEA’s El Paso Division.
Strubhar and his co-defendant Chayanne Armando Nino, 25, also of Las Cruces, were arrested in Jan. 2016, on a criminal complaint charging them with methamphetamine trafficking offenses. According to the criminal complaint, Strubhar and Nino sold methamphetamine to an undercover agent on July 13, 2015.
Strubhar and Nino subsequently were indicted on Feb. 17, 2016, and charged with conspiracy to distribute methamphetamine and distributing methamphetamine on July 13, 2015, in Doña Ana County. N.M.
On June 1, 2016, Strubhar and Nino each pled guilty to felony informations charging them with conspiracy to distribute methamphetamine and distribution of methamphetamine. Each admitted that on July 13, 2015, Nino distributed methamphetamine to Strubhar who then distributed the methamphetamine to a law enforcement agent who was acting in an undercover capacity. The weight of the methamphetamine distributed was 12.2 grams. Nino was sentenced on Feb. 22, 2017, to 120 months in prison followed by three years of supervised release.
This case was investigated by the Las Cruces office of the DEA and was prosecuted by Assistant U.S. Attorney John Balla of the U.S. Attorney’s Las Cruces Branch Office.
Lackawanna County Man Sentenced to 70 Months in Prison for Heroin Trafficking and Supervised Release ViolationRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Shawn Isom, age 45, of Scranton, Pennsylvania, was sentenced to 70 months’ imprisonment on February 27, 2017, by U.S. District Court Judge Robert D. Mariani for trafficking in heroin.
According to United States Attorney Bruce D. Brandler, Isom pleaded guilty to possession with the intent to distribute between 80 and 100 grams of heroin (which is equivalent to approximately 3,000-4,000 retail bags of heroin) in Lackawanna County during September 2015. Isom committed the crime while on supervised release for a previous federal drug conspiracy.
Judge Mariani imposed a 50-month prison sentence for the heroin trafficking offense, and added a 20-month prison sentence for Isom’s supervised release violation. Isom was also ordered to serve six years on supervised release following his prison sentence.
The investigation was conducted by the Drug Enforcement Administration, the Pennsylvania State Police, and the Scranton Police. Assistant United States Attorney Francis P. Sempa prosecuted the case.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the Heroin Initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies to locate, apprehend, and prosecute individuals who commit heroin related offenses.
# # #
Kauai Woman Indicted for Using A Non-Profit to Facilitate A Tax Fraud Scheme and Identity TheftRead the Press Release
HONOLULU – Leihinahina "Jennifer" Sullivan, 45, of Lihue, Kauai, was arraigned Friday, February 24, on a 12-count indictment charging her with tax fraud and aggravated identity theft. The indictment charges Sullivan with eight counts of false claims, two counts of wire fraud, and two counts of aggravated identity theft. Sullivan pled not guilty to all charges, and her trial was set for April 25, 2017, before Chief United States District Judge J. Michael Seabright.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said that according to allegations in the indictment, from at least January 2011 through January 2017, the last year of which is the current tax filing season, Sullivan engaged in a scheme to defraud the IRS and the State of Hawaii by submitting false tax returns seeking refunds on behalf of other individuals. The tax returns contained false items such as the filing status, dependents, Schedule A expenses including medical and charitable donations, unreimbursed employment expenses, and claims for credits such as child care and the Earned Income Tax Credit.
The indictment alleges that Sullivan concealed her acts from the taxpayers, by not reviewing the returns with them before filing, and by using her email addresses as a point of contact with the IRS and State. Sullivan also directed that tax refunds be deposited into bank accounts of the Mobile Native Hawaiian Health ("MNHH"), a non-profit entity of which she held various positions including director, or into other accounts which she controlled. In some instances, when individuals requested copies of their filed returns, Sullivan provided those individuals with copies of returns that did not match the returns that she actually filed, including changing the direct deposit information. The copies did not include the false items, the same direct deposit information, or the inflated false refund amounts.
For the aggravated identity theft charges, the indictment alleges that Sullivan used an individual’s name, Social Security number, and signature, without that person’s authorization, to file State of Hawaii tax returns for 2010 and 2011.
The charges in the indictment are merely accusations, and the defendant is presumed innocent until proven guilty. If convicted, Sullivan faces a maximum term of imprisonment of up to 20 years for each wire fraud count, up to five years imprisonment for each false claims count, and a mandatory minimum term of imprisonment of two years for each aggravated identity theft count.
The case was investigated by IRS-Criminal Investigation with assistance from the Kauai Police Department and the State of Hawaii Department of Taxation, and is being prosecuted by Assistant U.S. Attorney Rebecca A. Perlmutter.
# # #
Kansas Man Sentenced for Wire FraudRead the Press Release
United States Attorney Deborah R. Gilg announced that James Allan Kappler, Jr., age 61, of Topeka, Kansas, was sentenced today by the Honorable Laurie Smith Camp after having previously pleaded guilty to one count of wire fraud. He was sentenced to 5 years, 3 months in federal prison to be followed by 3 years of supervised release when his incarceration ends. He was also ordered to pay $911,428.99 in restitution.
From 2007 through 2012, Kappler devised a scheme in which he represented to his mother that he was suffering from methicillin-resistant staphylococcus aureus, also known as MRSA. MRSA is a staph infection than can become terminal and is resistant to many common antibiotics. Kappler told his mother that he was involved in a study sponsored by Pfizer Pharmaceuticals. He told her he needed to pay for all of his medical care and, once his treatment concluded, Pfizer would pay him $5,000,000. He convinced his mother to provide him money to pay for his “medical care.” When Kappler’s mother’s funds were depleted, she sought more money from her sister and friends. In total, Kappler received at least $911,428.99 as part of his scheme. The funds were wired from his mother’s trust account to an account in Topeka.
In praising Judge Smith Camp’s sentence, Ms. Gilg remarked that oftentimes the elderly in our communities are our most vulnerable citizens.
The case was investigated by the United States Secret Service.
Heroin Trafficker SentencedRead the Press Release
AMARILLO, Texas — Joel Lara Merida, 31, arrested in August 2016 after a traffic stop in Potter County, Texas, and then found to have 17,388 grams of heroin in bundles in an aftermarket compartment, has been sentenced, announced U.S. Attorney John Parker of the Northern District of Texas.
On Monday, February 27, 2017, Merida was sentenced by U.S. District Judge Sidney A. Fitzwater to 51 months in federal prison. Merida pleaded guilty to one count of possession with intent to distribute one kilogram or more of heroin and aiding and abetting in November 2016. Co-defendant Jose Emmanuel Morales Rittingger, 29, is set to plea in March 2017.
According to documents filed in the case, on August 15, 2016, a Texas Department of Public Safety (DPS) Trooper stopped a 1995 BMW for driving in the left lane when not passing and obstructed view through the windshield. Upon making contact with the driver of the vehicle, who was later identified as Merida, and the passenger, who was later identified as Rittingger, the Trooper noticed indicators of possible criminal activity. The Trooper asked Merida for consent to search the vehicle and Merida voluntarily consented to the search. Eighteen bundles in an aftermarket compartment under the back seat were located. There were nine bundles wrapped in black tape, four bundles were wrapped in cellophane, and five bundles were wrapped in silver tape. The heroin had a gross weight of 44.26 pounds and field tested positive for the presence of heroin.
Subsequent testing confirmed that the substance seized was, in fact, heroin, a Schedule I controlled substance, with a net weight of approximately 17,388 grams.
The case was investigated by the Texas Department of Public Safety and the Drug Enforcement Administration. Assistant U.S. Attorneys Joshua Frausto and Sean Taylor prosecuted.
# # #
Hartford Man Sentenced to 6 Years in Federal Prison for Distributing Narcotics, Selling GunRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that VINCENTE RIVERA, also known as “Macho,” 37, of Hartford, was sentenced yesterday by U.S. District Judge Stefan R. Underhill in Bridgeport to 72 months of imprisonment, followed by four years of supervised release, for distributing crack cocaine and selling a firearm.
According to court documents and statements made in court, in September 2014, the FBI’s Northern Connecticut Violent Crimes Task Force and Hartford Police Department initiated an investigation into narcotics distribution, firearms trafficking and acts of violence carried out by members and associates Los Solidos in Hartford’s South End. The investigation, which included the use of court-authorized wiretaps and controlled purchases of heroin, crack cocaine and firearms, resulted in federal charges against approximately 30 individuals.
The investigation revealed that RIVERA was involved in the distribution of crack and powder cocaine. In February and March 2015, investigators intercepted numerous drug-related conversations over RIVERA’s telephone. In addition, in April 2015, RIVERA sold a .25 caliber pistol to a government informant.
RIVERA has been detained since his arrest on June 15, 2015. On August 12, 2016, he pleaded guilty to one count of conspiracy to possess with intent to distribute cocaine base (“crack”).
The FBI Task Force includes members of the Hartford Police Department, East Hartford Police Department, Connecticut State Police and Connecticut Department of Correction. The Hartford Police Department’s Vice and Narcotics unit, Major Crimes unit, Shooting Task Force and South Conditions Unit have provided valuable assistance to the investigation, and the U.S. Marshals Service and Capitol Region Emergency Response Team (CREST) assisted with the arrests.
This case is being prosecuted by Assistant U.S. Attorney Michael J. Gustafson.
This prosecution stems from Project Longevity, a comprehensive initiative to reduce gun violence in Connecticut’s major cities. Through Project Longevity, community members and law enforcement directly engage with members of groups that are prone to commit violence. A critical component of the Project Longevity strategy is the “call-in,” a face-to-face meeting where Project Longevity partners engage group members and deliver a community message against violence, a law enforcement message about the consequences of further violence and an offer of help for those who want it.
Members of Los Solidos attended call-ins that were held in April 2014 and August 2014.
Guinean National Charged with Possessing Fake PassportRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Abdoulaye Barry, 25, a legal, permanent resident from Guinea, was arrested and charged by criminal complaint with possessing a fraudulent passport and aggravated identity theft. The charges carry a minimum mandatory penalty of two years in prison, a maximum of 10 years, and a $250,000 fine.
Assistant U.S. Attorney Stephanie Lamarque, who is handling the case, stated that according to the complaint, on February 26, 2017, the defendant was found at the Rainbow Bridge with a fraudulent United States Passport card. That card, which contained the defendant’s photograph, bore the name and passport card number of another individual. Barry also had a fraudulent Ohio driver’s license bearing her photograph but the name of another individual, as well as a Florida Driver’s license bearing the name and photograph of another person. Barry was also in possession of a debit and credit card matching the name on the fraudulent Ohio driver’s license.
The defendant made an initial appearance this afternoon before U.S. Magistrate Judge Jeremiah J. McCarthy and is being detained pending a detention hearing on March 7, 2017, at 11:00 a.m.
The criminal complaint is the result of an investigation by the United States Department of State, under the direction of Resident Agent-in-Charge William Ferrari, Customs and Border Protection, under the direction of Director of Field Operations Rose Brophy, and Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Acting Special Agent-in-Charge Kevin Kelly.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Galax Man Sentenced for Producing Child Pornography VideosRead the Press Release
Abingdon, VIRGINIA – A Galax man, who gained the trust of single mothers to sexually abuse their young children, was sentenced today in the United States District Court for the Western District of Virginia in Abingdon, Acting United States Attorney Rick A. Mountcastle announced.
Richard Denny Nofsinger, 37, most recently of Galax, previously pled guilty to three counts of producing images of child pornography. Today in United States District Court, Judge James P. Jones sentenced Nofsinger to 60 years in federal prison.
“This defendant is a serial predator, repeatedly targeting the most vulnerable in our community – single mothers and their young children. On repeated occasions he gained the trust of single mothers to gain access to their toddlers so he could film himself engaging in sexual acts with those children. The court’s sentence takes a dangerous, serial predator out of our community and probably saved other single mothers and their children from future despicable acts by this defendant. I ask parents to be extra cautious about who you trust to care for your children,” Acting U.S. Attorney Mountcastle said today. “I commend the Galax City Police Department, the Secret Service, and AUSA Bockhorst for their outstanding work on this case.”
According to evidence presented at the September 7, 2016 guilty plea hearing, Nofsinger possessed a cell phone when he was arrested on a state arrest warrant on May 17, 2016, in Galax. Investigators, executing a search of the cell phone, recovered eight videos that contained sexually explicit images of children and showed Nofsinger engaged in sexual conduct with at least two different children. Investigators identified the victims and recovered the T-shirt and sunglasses Nofsinger wore in some of the videos.
The investigation of the case was conducted by the City of Galax Police Department and the United States Secret Service. Assistant United States Attorney Jennifer R. Bockhorst prosecuted the case for the United States.
Former Service Member Pleads Guilty to Theft of U.S. Department of Veterans Affairs BenefitsRead the Press Release
A former U.S. Air Force service member pleaded guilty today in connection with a scheme to defraud the U.S. Department of Veterans Affairs (VA), announced Acting Assistant Attorney General Kenneth A. Blanco of the Justice Department’s Criminal Division.
Jacqueline Crawford, 33, of Gulfport, Mississippi, pleaded guilty today before U.S. District Judge Amit P. Mehta of the District of Columbia to one count of conversion of government funds. As part of her plea agreement, Crawford has agreed to forfeit $45,917.
According to her plea agreement, in October 2014, Crawford spoke with a friend and former U.S. Air Force service member, who worked at the VA in Washington, D.C., and described her financial difficulties. In response, her friend suggested that he could send her VA hardship money available to veterans and that all he needed was her bank account information. Crawford agreed to this arrangement despite knowing that her friend was not obtaining the hardship money through proper channels. He later asked Crawford to kick back a portion of the money she received to him, which she agreed to do despite knowing that it was wrong. Between October 2014 and February 2015, Crawford received a total of seven unlawful special payments from the VA totaling $45,917. Crawford admitted she kicked back $13,100 of the funds she received from her friend via 16 wire transfers, usually through Walmart2Walmart money grams.
The VA Office of Inspector General Criminal Investigations Division investigated the case. Trial Attorney Richard B. Evans of the Criminal Division’s Public Integrity Section is prosecuting the case.
Former Postal Worker and Union Treasurer Indicted for Embezzling Union FundsRead the Press Release
SAN JUAN, P.R. - On December 28, 2016, a Federal Grand Jury in the District of Puerto Rico returned an indictment charging Amalia López-Santiago, a former treasurer of the American Postal Workers Union (“APWU”) Local 1070 (the “Union”), with embezzlement of funds of said labor organization in an amount in excess of $92,965.89. The Indictment charges López-Santiago with one count of embezzlement of union funds, one count of false statements to the federal government, one count of aggravated identity theft, and four counts of wire fraud.
United States Attorney for the District of Puerto Rico, Rosa Emilia Rodríguez Vélez, Andriana Vamvakas, the New York District Director of the Department of Labor’s Office of Labor-Management Standards (“DOL-OLMS”), and Douglas A. Leff, Special Agent in Charge of the Federal Bureau of Investigation’s Puerto Rico Field Office (“FBI”) made the announcement.
According to the indictment, from January, 2008 through June 2, 2012, López-Santiago, who was the Union’s Treasurer, authorized salary payments and reimbursement for lost wages and benefits on her own behalf in excess of the amounts actually allowed and authorized under the Union’s Constitution and Bylaws totaling approximately $77,543.30. Pursuant to the charging document, she submitted fraudulent claims for wage reimbursement and authorized duplicate or excessive salary payments.
The indictment also alleges that she used the Union’s credit card at a local wholesale supermarket to purchase personal items valued in excess of $15,422.59 without lawful authority and issued payments from APWU Local 1070’s bank account to cover the expense for those unlawfully procured items. The Indictment further alleges that in order to conceal the misuse and theft of Union funds, López-Santiago made false statements and omissions in the Union’s annual financial reports for the fiscal years 2008, 2009, 2010, and 2011.
“The United States Attorney’s Office, in partnership with our fellow federal investigative agencies, will continue to investigate and prosecute union officials who abuse their positions of trust,” said Rosa E. Rodríguez-Vélez, U.S. Attorney for the District of Puerto Rico. “Let this be a clear message, that stealing and embezzling from labor unions carries serious penalties and consequences, including prison and fines.”
OLMS District Director Andriana Vamvakas said: “Embezzlement of union funds doesn’t only violate the law, it also betrays the trust of the union membership who rightfully expect their officials to protect and safeguard their union’s funds and assets. We thank USA Rodríguez-Vélez and SAC Douglas A. Leff for the valuable assistance they provided to the U.S. Department of Labor in this investigation and for the excellent work completed in the presentation of charges. We look forward to working again with these and other agencies to root out such corruption and abuse by union officers or members.”
“Those who defraud civil organizations created to benefit their fellow workers and betray the values they have sworn to protect will face the strength and reach of the criminal justice system. The FBI is proud to have assisted in this investigation and recognizes the outstanding work of the Department of Labor, and the diligence of the United States Attorney, in identifying and rooting out this type of deceitful conduct,” said Douglas A. Leff, SAC FBI San Juan.
This case was investigated by the DOL-OLMS and the FBI, and is being prosecuted by Assistant U.S. Attorney Dennise N. Longo Quiñones of the Financial Fraud and Corruption Unit.
Pursuant to the charges, Amalia López-Santiago faces potential penalties of up to five years of imprisonment for the embezzlement or theft of union assets, up to five years of imprisonment for false statements made to the federal government, a mandatory minimum term of two years of imprisonment for aggravated identity theft, and up to a term of imprisonment of 20 years for wire fraud. Indictments contain only charges and are not evidence of guilt. Defendants are presumed to be innocent unless and until proven guilty.
Former Pharmaceutical Employee Admits Role in Scheme to Obtain Medically Unnecessary Compounded MedicationRead the Press Release
NEWARK, N.J. – A former pharmaceutical company employee today admitted accepting thousands of dollars in exchange for filling medically unnecessary prescriptions for compounded medications for herself and her husband, causing losses of $956,885, U.S. Attorney Paul J. Fishman announced.
Julie Andresen, 39, of Haddonfield, New Jersey, pleaded guilty before U.S. District Judge John Michael Vazquez in Newark federal court to an information charging her with conspiracy to commit health care fraud.
According to documents filed in this case and statements made in court:
Andresen, a former employee of a New Jersey pharmaceutical company, admitted that from September 2014 through September 2015, she received payments from a marketing business – identified in the information as “Company A” – for filling and obtaining medically unnecessary prescription compounded medications for herself and her husband through the pharmaceutical company’s prescription drug benefit plan.
As part of the scheme, Andresen approached a doctor – who was a close friend – at social gatherings that they attended. She would give the doctor pre-printed forms listing compounded medications and ask the doctor to authorize the medications. The doctor did so, as well as authorizing multiple refills. Andresen faxed prescriptions to compounding pharmacies located outside of New Jersey designated by Company A. The compounding pharmacies would fill and bill Andresen’s prescription drug benefit plan. The pharmaceutical company’s prescription drug benefit plan reimbursed the compounding pharmacies $13,572 to $43,689 for each compounded medication Andresen and her husband received.
The compounding pharmacies would pay Company A a percentage of the reimbursement amount, and Company A would pay Andresen a percentage of the amount Company A received from the compounding pharmacies. Andresen received a total of $161,378 from Company A for her role in the conspiracy. The pharmaceutical company lost $956,885 from this scheme.
The conspiracy to commit health care fraud count to which Andresen pleaded guilty carries a maximum penalty of 10 years in prison and a $250,000 fine, or twice the gross gain or loss from the offense. Sentencing is scheduled for June 7, 2017.
On June 29, 2016, Stephanie Naar, 27, of St. Louis, Missouri, who had been an employee of the same pharmaceutical company as Andresen, pleaded guilty before Judge Vazquez and admitted accepting thousands of dollars in exchange for obtaining and filling her own medically unnecessary prescriptions for compounded medications.
On July 19, 2016, Peter Pappas, 44, of Drexel Hill, Pennsylvania, another former employee of the same New Jersey pharmaceutical company as Andresen, also pleaded guilty before Judge Vazquez and admitted to accepting thousands of dollars in exchange for obtaining and filling his own medically unnecessary prescriptions for compounded medications. Pappas also admitted to recruiting others into this scheme.
Naar and Pappas both await sentencing.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and U.S. Department of Defense, Office of the Inspector General, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert, with the ongoing investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Erica Liu of the United States Attorney’s Office, Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.32 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Judson Aaron Esq., Philadelphia
Former Owner of Montana Area Chili's Pleads Guilty to Bank FraudRead the Press Release
GREAT FALLS – Kenneth James Hatzenbeller, 52, of Great Falls, Montana, pleaded guilty to bank fraud today in U.S. District Court. He faces a maximum prison sentence of 30 years imprisonment and a $1 million fine. Hatzenbeller also agreed to pay at least $1,077,866 in restitution. U.S. District Court Judge Brian M. Morris presided over the change of plea and set sentencing for May 18, 2017 in Great Falls.
In court documents, federal prosecutor Chad Spraker stated that if called upon to prove its case at trial, the United States was prepared to demonstrate that in August of 2014, Hatzenbeller contacted Zions Bank and requested a $500,000 loan to purchase furniture, fixtures, and equipment for five Chili's restaurants operated by Shoot the Moon. The collateral for the loan was to be the furniture, fixtures, and equipment purchased with the loan proceeds. Hatzenbeller signed a collateral agreement acknowledging that fact.
On September 2, 2014, Hatzenbeller signed a Disbursement Request and Authorization requesting that $500,000.00 in loan proceeds be disbursed to Penner Brokerage. That same day, the Bank initiated a wire transfer of $494,890 to Wells Fargo for the benefit of Penner Brokerage based on invoices listing Penner Brokerage as the vendor for various furniture, fixtures, and equipment in that total amount. The account number identified as belonging to Penner Brokerage was in fact an account controlled by Hatzenbeller’s daughter who knew nothing of Penner Brokerage or the invoices until interviewed by the FBI. Hatzenbeller’s daughter indicated her father had asked to use her account to accept bank funds and then transfer those funds to him. The funds were never used for furniture, fixtures and equipment and were redirected to other company debts leaving Zions uncollateralized and unsecured.
Shoot the Moon filed for a Chapter 11 bankruptcy with the United States Bankruptcy Court in October of 2015. Hatzenbeller was deposed in the bankruptcy proceeding. When questioned about the $490,000 deposit into Shoot the Moon’s account, he claimed it was a loan from his daughter and her husband, which Hatzenbeller used to pay Shoot the Moon’s general expenses.
This case was prosecuted by Assistant U.S. Attorney Chad C. Spraker and investigated by the Federal Bureau of Investigation and the United States Trustee.
Former New Haven Resident Sentenced to 5 Years in Prison for Robbing Seymour BankRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that DANIEL HAMLETT, SR., 55, formerly of New Haven, was sentenced today by U.S. District Judge Alvin W. Thompson in Hartford to 60 months of imprisonment, followed by three years of supervised release, for committing an armed robbery of a Seymour bank in 2013.
According to court documents and statements made in court, on April 9, 2013, HAMLETT drove a stolen vehicle to the Webster Bank on New Haven Road in Seymour. Wearing a mask, he exited the vehicle, approached an individual who was seated in his parked car, took out a handgun, smashed the driver’s side front window and demanded money from the victim. When the victim responded that he didn’t have any money, HAMLETT took the victim’s car keys and cell phone and told him not to move.
HAMLETT then entered the bank, ordered everyone to get on the floor, jumped over the teller counter and forcibly took $5,594 in cash from two teller drawers. He then jumped back over the teller counter, exited the bank and fled in the stolen vehicle. HAMLETT then met his son, Daniel Hamlett, Jr., who picked up his father and eluded law enforcement.
HAMLETT was arrested in Georgia on November 13, 2014, and has been detained since his arrest. On September 14, 2015, he pleaded guilty to one count of armed bank robbery.
Daniel Hamlett, Jr. also pleaded guilty and has been sentenced.
This matter was investigated by the FBI and the Seymour Police Department. The case was prosecuted by Assistant U.S. Attorneys Douglas P. Morabito and Sarala V. Nagala.
Former Navy Serviceman Sentenced to 10 Years for Enticing Minors to Engage in Sexual Activity OnlineRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that ADAM M. SIMPSON, 30, a former member of the U.S. Navy who was stationed in New London, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 120 months of imprisonment, followed by five years of supervised release, for enticing minors to perform sexually explicit acts during online video chats.
According to court documents and statements made in court, between approximately January 2013 and November 2013, SIMPSON used internet-based video chatting services such as Skype, Omegle, and ooVoo, to entice girls between the ages of 12 and 16 to perform sexual acts and engage in sexually explicit conduct, which SIMPSON then recorded and saved on his computer. In order to deceive the minors, SIMPSON misrepresented his age and utilized videos of young boys to impersonate being a young boy himself.
SIMPSON, of Benton, Pennsylvania, has been detained since his arrest on related state charges on January 7, 2014. On June 29, 2016, he pleaded guilty to one count of using an interstate facility to entice a minor to engage in unlawful sexual activity.
This matter was investigated by the Connecticut State Police Computer Crimes Unit, the Federal Bureau of Investigation and the Connecticut Child Exploitation Task Force, which includes federal, state and local law enforcement agencies. The U.S. Naval Criminal Investigative Service also provided critical assistance in this investigation. The case was prosecuted by Assistant U.S. Attorney Neeraj N. Patel.
This prosecution is part of the U.S. Department of Justice’s Project Safe Childhood Initiative, which is aimed at protecting children from sexual abuse and exploitation. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
To report cases of child exploitation, please visit www.cybertipline.com.
Former Mendon Ballroom Owner Sentenced for False Tax ReturnsRead the Press Release
BOSTON – The former owner of the Myriad Ballroom in Mendon, Mass., was sentenced yesterday in U.S. District Court in Worcester for tax fraud.
Jon “Eddie” Rouleau, 63, was sentenced by U.S. District Court Judge Timothy S. Hillman to one year of probation and ordered to pay a fine of $3,000. In October 2016, Rouleau pleaded guilty to one count of intentionally aiding in the preparation of a false tax return. Rouleau also paid $103,107 in restitution to the IRS and a civil fraud penalty of $59,494.
Rouleau and his father owned and operated the Myriad Ballroom for decades until he sold the business and property in 2014. The investigation was initiated in 2013 when Rouleau advertised the Myriad Ballroom for sale. Rouleau told the agents, who posed as potential buyers, that the annual gross receipts and profits of the ballroom were significantly greater than reported on the ballroom’s tax returns, including the gross receipts and profit reported in 2012.
Acting United States Attorney William D. Weinreb and Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston, made announcement. Assistant U.S. Attorney Greg A. Friedholm of Weinreb’s Worcester Branch Office prosecuted the case.
Former Major and Lt. Col. Sentenced for Defrauding the Marine CorpsRead the Press Release
Assistant U.S. Attorneys Nicholas W. Pilchak (619) 546-9709 and C. Seth Askins (619) 546-6692
NEWS RELEASE SUMMARY – February 27, 2017
SAN DIEGO – A former Lieutenant Colonel in the U.S. Marine Corps Reserves was sentenced to three months in custody followed by six months’ community confinement in a halfway house and ordered to pay forfeiture and restitution today for participating in a four-year wire fraud conspiracy to defraud the Marine Corps out of over $205,000.
Lieutenant Colonel Michael K. Strom pretended to rent the home of his fellow officer, former reservist Major Jason H. Wild, in order to claim reimbursements from the Marines when called to active duty at Camp Pendleton. Wild, in turn, pretended to rent Strom’s home. Both men submitted phony lease agreements and rental receipts to support their false claims. In truth, each man owned his own home next to Camp Pendleton and never paid any of the claimed rent.
During the sentencing hearing, U.S. District Judge Anthony J. Battaglia told the defendant: “Those that are so key to our country’s safety, our way of life, when they cross the line, it’s serious.” Strom pleaded guilty in October 2016 to conspiring to commit wire fraud, and filing false claims with the United States.
Co-defendant Wild, who was convicted by a jury at trial last November, was sentenced on February 21, 2017, to nine months in custody followed by six months’ community confinement in a halfway house. Judge Battaglia also imposed the same $205,628 forfeiture judgment and restitution order against Wild.
Wild owned his own home in Oceanside, California throughout the time he claimed rental benefits from the Marine Corps. Evidence at Wild’s trial, including witness testimony, credit card statements, tax returns, and bank records, established that Wild lived in his Oceanside home throughout the period he falsely claimed to pay $38,442 to rent Strom’s home in Laguna Niguel, California.
Five months after Wild’s “rental” concluded, Strom was activated at Camp Pendleton and falsely claimed for two years to rent Wild’s Oceanside home from Wild’s friend. Although Strom told the Marine Corps he paid $98,736 to rent Wild’s home, the evidence at trial demonstrated that Strom lived in his own home in Laguna Niguel throughout the sham “lease” period.
Financial records, including a bank analysis performed by the Naval Audit Service, established that neither defendant had paid a dollar of the claimed rent.
“Members of the armed forces who defraud the military out of its funds don’t just steal from taxpayers; they rob their comrades in arms of the resources they need to defend each other and our country,” said Acting U.S. Attorney Alana W. Robinson. “This Office will continue to investigate and prosecute those who put their own financial gain before the public trust they are sworn to uphold.”
Robinson commended the close coordination between the investigating agencies—the Department of Defense, Defense Criminal Investigative Service; the Naval Criminal Investigative Service; and the Department of Homeland Security, Office of the Inspector General—during the investigation of this case.
“The successful investigation and prosecution of these two former U.S. Marine Corp Reserve Officers, who prioritized greed over duty, demonstrates a commitment to hold accountable those who unlawfully divert precious resources needed to protect our Marines,” said Chris Hendrickson, Special Agent in Charge, Defense Criminal Investigative Service.
“The successful prosecution in this case was the direct result of collaborative teamwork between the Naval Criminal Investigative Service, its law enforcement partners, and the U.S. Attorney’s Office,” said Gunnar Newquist, Special Agent in Charge of the NCIS Southwest Field Office. “Convictions like this should serve as a deterrent to those who would put personal gain above their responsibility to American taxpayers and warfighters.”
“I am pleased with this successful investigation and prosecution,” said Amanda Thandi, Special Agent in Charge for the U.S. Department of Homeland Security, Office of the Inspector General. “We all suffer when federal programs are undermined by fraud. DHS OIG agents and our law enforcement partners will work aggressively to protect these vital programs and make sure that those who steal from them ultimately pay for their crimes.”
DEFENDANT Case No. 15-cr-2771-AJB
Jason H. Wild 45 years old Oceanside, California
Michael K. Strom 48 years old Laguna Niguel, California
CHARGES
Wire Fraud Conspiracy - 18 U.S.C. § 1349
Maximum penalty: 20 years’ imprisonment, $250,000 fine, three years’ supervised release, forfeiture and restitution.
False Claim – 18 U.S.C. § 287
Maximum penalty: 5 years’ imprisonment and $250,000 fine, three years’ supervised release, forfeiture and restitution.
AGENCIES
Department of Defense, Defense Criminal Investigative Service
Naval Criminal Investigative Service
Department of Homeland Security, Office of the Inspector General
Former Corrections Officer, Inmates and Others Arrested in Drug Smuggling Conspiracy at Richard J. Donovan Correctional FacilityRead the Press Release
Assistant U. S. Attorney Andrew Young (619) 546-7981
Assistant U.S. Attorney Todd Robinson (619)-546-7994
NEWS RELEASE SUMMARY – February 28, 2017
SAN DIEGO – Eleven people, including a former Corrections Officer at Richard J. Donovan (“RJD”) Correctional Facility, are charged in federal court as members of a network that smuggled methamphetamine, heroin, marijuana and cellular telephones into the prison.
The key defendant, Anibal Navarro, the former Corrections Officer at RJD, was arrested by FBI Agents and officials from the California Department of Corrections and Rehabilitations-Office of Internal Affairs on June 26, 2016 as he attempted to smuggle heroin, methamphetamine and cellular telephones into the prison.
Ten additional individuals, including inmates and their associates on the outside, were indicted by a federal grand jury on charges that they conspired with Navarro to smuggle drugs and cellular telephones into the prison. Navarro was released on bond.
Four defendants were arrested today in Los Angeles; six are already in custody in California state prisons.
According to the indictment, Martin Gomez, while an inmate at RJD in 2014, recruited Navarro to smuggle contraband into the prison. After Gomez was moved to another California state prison, he continued to coordinate and supervise the operation by conducting conference calls with Sylvia Gonzales, Gomez’s associate outside the prison, Navarro and others. During these calls, the conspirators arranged for narcotics, cellular telephones and cash to be delivered to Navarro at various locations in Southern California.
In addition to Gonzales, the smuggling operation was also aided by others outside the prison, including Everaldo Santana, Norma Alvardo-Medina and Vanessa Jackson, according to allegations in the indictment. These individuals provided Navarro with the narcotics and cellular telephones to smuggle into the prison. return, Navarro was paid between $1,000 and $2,000 each time he smuggled contraband into the prison. According to the dictment, this smuggling operation began in April 2014 and lasted nearly two years until it was dismantled in June 2016 with Navarro’s arrest.
The indictment alleges that after the contraband was smuggled into the prison, RJD inmates Agustin Aceves, Juan Gutierrez, John Price, Jeremy Gaither and Hugo Alvarado received and distributed the narcotics and cellular telephones to other inmates. The phones were used to coordinate criminal activity both inside and outside the facility.
Deputy United States Attorney Mark Conover said, “Corrections officers play a critical role in protecting the public from some of the most dangerous criminals. By placing greed above his duty, former Officer Navarro compromised the security of the public and enabled violent felons to continue committing crimes within the prison walls. We will continue to aggressively investigate and prosecute every individual involved in these criminal activities.”
FBI Special Agent Eric S. Birnbaum said, “The FBI is responsible for investigating corruption involving government officials and their entire criminal networks. Today’s arrests are an example of how our investigators work with our law enforcement and corrections partners to reveal the individuals fulfilling each role of the criminal network that affect the safety and security of our correctional facilities.”
The FBI encourages the public to report allegations of public corruption to our hotline at (877) NO-BRIBE (662-7423).
DEFENDANTS Case No. 17cr0446-AJB
MARTIN GOMEZ Age 56 Lancaster Prison
SYLVIA GONZALES Age 57 Sylmar, California
EVERALDO SANTANA Age 25 Los Angeles, California
AGUSTIN ACEVES Age 42 Lancaster Prison
NORMA ALVARADO-MEDINA Age 33 El Monte, California
JUAN GUTIERREZ Age 42 Vacaville, California
JOHN PRICE Age 20 Salinas Valley Prison
VANESSA JACKSON Age 39 Pasadena, California
JEREMY GAITHER Age 33 Valley State Prison
HUGO ALVARADO Age 24 High Desert Prison
DEFENDANTS Case No. 16cr1664-AJB
ANIBAL NAVARRO Age 38 Chula Vista, California
SUMMARY OF CHARGES
Conspiracy to Distribute Controlled Substances – Title 21, U.S.C., Sections 841(a) (1) and 846
Maximum Penalty: Life in Prison
Conspiracy to Commit Honest Services Fraud – Title 18, U.S.C., Sections 1349
Maximum Penalty: 20 years in prison
AGENCY
Federal Bureau of Investigation – San Diego Field Office
California Department of Corrections and Rehabilitation’s Office of Internal Affairs
California Department of Corrections and Rehabilitation’s Investigative Service Unit
United States Postal Service – Inspection Service
San Diego Police Department
*The charges and allegations contained in an indictment or complaint are merely accusations, and the defendants are considered innocent unless and until proven guilty.
Former Corrections Officer at Sandoval County Detention Center Pleads Guilty to Federal Heroin Trafficking ChargeRead the Press Release
ALBUQUERQUE – Christopher Gonzales, 20, of Rio Rancho, N.M., entered a guilty plea today in federal court in Albuquerque, N.M., to a heroin trafficking charge. At the time he committed the offense, Gonzales was a corrections officer at the Sandoval County Detention Center. Under the terms of his plea agreement, Gonzales faces up to 18 months in federal prison to be followed by a term of supervised release to be determined by the court.
Gonzales and co-defendant Fabrienne Rosalinda Morales, 39, of Peralta, N.M., were arrested in Jan. 2016, on a five-count indictment charging them with conspiracy. The indictment also charged Gonzales with possession of heroin and suboxone with intent to distribute, and Morales with distribution of heroin and suboxone. The indictment was superseded on Feb. 9, 2016, to add a third defendant, Ismael Vargas, 29, of Belen, N.M., who was charged with conspiracy. According to the superseding indictment, the three defendants committed the crimes charged on Aug. 2, 2015, in Sandoval County, N.M.
During today’s proceedings, Gonzales pled guilty to possessing heroin with intent to distribute. In entering the guilty plea, Gonzales admitted that on Aug. 2, 2015, while he was working as an officer at the Sandoval County Detention Center, he brought heroin to the Detention Center with the intention of delivering it to an inmate. A sentencing hearing has yet to be scheduled.
On Jan. 13, 2017, Morales pled guilty to distributing heroin. In entering the guilty plea, Morales admitted that on Aug. 2, 2015, she smuggled heroin into the Sandoval County Detention Center and gave it to a corrections officer. Under the terms of her plea agreement, Morales will be sentenced to not more than 24 months in federal prison followed by a term of supervised release to be determined by the court. A sentencing hearing has yet to be scheduled.
Vargas has entered a plea of not guilty and is pending trial. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Edward Han is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Former College Patrol Officer Sentenced for Sending Sexually Explicit Images to MinorRead the Press Release
BOSTON – A former Massasoit Community College patrol officer, who was also a Somerset Police Department reserve officer, was sentenced today in U.S. District Court in Boston in connection with attempting to send sexually explicit images and videos of himself to an underage girl.
Cliff Oliveira, 28, of Somerset, was sentenced by U.S. District Court Judge Allison D. Burroughs to 14 months in prison and three years of supervised release, after pleading guilty in November 2016 to one count of attempted transfer of obscene material to a minor.
In November 2015, law enforcement officers discovered that an unknown adult male (later identified as Oliveira) was using the screen name “samuricop” on Kik Messenger to engage in sexually explicit chats and send sexually explicit images to a 13-year-old girl in South Carolina. Undercover officers subsequently engaged samuricop on Kik Messenger using the persona of an underage girl named “Gabbi.”
For approximately six weeks, undercover officers communicated with samuricop – informing him that Gabbi was a 14-year-old, middle school classmate of the 13-year-old minor victim. Samuricop asked Gabbi to call him “daddy” and went on to engage in sexually explicit conversations with her. On Jan. 13, 2016, samuricop used Kik Messenger to send several images and a video of himself masturbating to “Gabbi.”
During the course of the communications with the 13-year-old victim and with the undercover officers, samuricop informed them that he worked as a police officer. He also repeatedly sent images of a police cruiser and a firearm. Investigators subsequently used those images as well as IP login information provided by Kik to identify Oliveira as the user of the samuricop account. At the time, Oliveira was working as a patrol officer for the Massasoit Community College Police Department and reserve officer for the Somerset Police Department.
Acting United States Attorney William D. Weinreb; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Greenville County (South Carolina) Sheriff Steve Loftis made the announcement today. Assistance with the investigation was also provided by the Somerset, Brockton, and Massasoit Community College Police Departments. Assistant U.S. Attorney Jordi de Llano of Weinreb’s Criminal Division is prosecuting the case.
The case is brought as part of Project Safe Childhood. In 2006, the Department of Justice created Project Safe Childhood, a nationwide initiative designed to protect children from exploitation and abuse. Led by the U.S. Attorneys’ Offices and the DOJ’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/.
Former Central Iowa Psychiatrist Sentenced to Two Months in Prison for Health Care FraudRead the Press Release
DES MOINES, IA – On February 28, 2017, Richard Lee Hauser, M.D., 67, formerly of the Grinnell, Iowa, area was sentenced by Senior United States District Court Judge Robert W. Pratt to two months in federal prison for two counts of health care fraud, announced United States Attorney Kevin E. VanderSchel. The two-month sentences were ordered to be served at the same time. Hauser was also ordered to serve three years of supervised release following his prison term, pay $200 to the Crime Victims’ Fund, and pay a total of $30,879 in restitution to the State of Iowa Medicaid program (Iowa Medicaid) and Wellmark Blue Cross and Blue Shield of Iowa (Wellmark).
Hauser pleaded guilty to these charges on October 19, 2016. According to the plea agreement, from about October 2008 until about August 2013, Dr. Hauser, a psychiatrist licensed to practice in Iowa, oversaw and personally provided services at a clinic in Grinnell, Iowa. The clinic operated under the name Prevention Systems, Inc., and did business as The Hauser Clinic. Beginning by at least November 8, 2011, and continuing to at least on or about December 31, 2012, Dr. Hauser devised a scheme and artifice to obtain, by means of materially false and fraudulent representations, money from the Iowa Medicaid program and Wellmark, in connection with the delivery of and payment for health care benefits and services. As part of this scheme, Dr. Hauser “upcoded” claims, meaning he submitted claims to Iowa Medicaid and Wellmark, misrepresenting the service Hauser provided to certain patients by “coding” for a more expensive service, which was not, in fact, performed. The purpose of “coding” for a more expensive service was to increase the amount of reimbursement The Hauser Clinic would receive from Iowa Medicaid and Wellmark.
This matter was investigated by the State of Iowa Medicaid Fraud Control Unit and the United States Postal Inspection Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
-END-
Learn more about this release by calling Rachel J. Scherle at 515-473-9300, or by emailing her at [email protected]
Former Bank Employee Sentenced for EmbezzlementRead the Press Release
POCATELLO – Stefani Bennett, 45, of Salmon, Idaho, was sentenced today to 15 months imprisonment for embezzlement by a bank employee, Acting U.S. Attorney Rafael M. Gonzalez, Jr., announced. Chief U.S. District Judge B. Lynn Winmill also ordered Bennett to serve five years of supervised release following her prison sentence and to pay restitution of $116,945. She pleaded guilty on September 28, 2016.
Bennett was an employee of the U.S. Bank in Salmon, Idaho. On July 8, 2011, Bennett withdrew $100,000 from a customer’s account and converted it to five cashier’s checks and $2,407.59 in cash, which she used to pay her personal bills and make personal purchases, all without authorization. Bennett admitted to other bank employees and to special agents with the Federal Bureau of Investigation, who interviewed her at a later date, that she took the money.
The case was investigated by the Federal Bureau of Investigation.
Exporter of Microelectronics to Russian Military Sentenced to 135 Months in Prison Following Convictions on All CountsRead the Press Release
Alexander Posobilov, 62, of Houston, Texas, was sentenced to 135 months in prison for conspiring to export and illegally exporting controlled microelectronics to Russia, and for conspiring to launder money.
The sentence was announced by Acting Assistant Attorney General for National Security Mary B. McCord and U.S Attorney Robert L. Capers for the Eastern District of New York. The sentencing took place before Senior U.S. District Judge Sterling Johnson, Jr.
“With this sentence, Alexander Posobilov is being held accountable for evading export laws and illegally exporting American microelectronics to Russia for military use,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and protecting national assets from ending up in the hands of our potential adversaries is one of our highest priorities.”
“Posobilov helped lead a criminal operation that through lies and subterfuge profited handsomely from the unlawful sale and export of sophisticated American microelectronics for use by the Russian military,” stated U.S. Attorney Capers. “Today’s sentence shows that those who compromise the national security of the United States for their personal financial gain will face serious punishment.” Mr. Capers extended his grateful appreciation to the FBI’s Houston Field Office and the Department of Commerce for their leading roles in the investigation.
Posobilov, as well as ten other individuals and two corporations – ARC Electronics, Inc. (ARC) and Apex System, L.L.C. (Apex) – were indicted in October 2012. Posobilov and two co-conspirators were subsequently convicted at trial on all counts in October 2015. Of the remaining defendants, five pleaded guilty and three remain at large. ARC is now defunct, and Apex, a Russian-based procurement firm, failed to appear in court.
Posobilov joined ARC in 2004, where he ascended to become the procurement manager and day-to-day director of the company. Between approximately October 2008 and October 2012, Posobilov managed a team of employees who worked to obtain advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the U.S. and to export those high-tech goods to in Russia, while evading the government licensing system set up to control such exports. These commodities have applications and are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers. Russia was not capable of producing many of these sophisticated goods domestically. Between 2002 and 2012, ARC shipped approximately $50,000,000 worth of microelectronics and other technologies to Russia. ARC’s largest clients were certified suppliers of military equipment for the Russian Ministry of Defense.
To induce manufacturers and suppliers to sell these high-tech goods to ARC, and to evade applicable export controls, Posobilov and his co-conspirators provided false end user information in connection with the purchase of the goods, concealed the fact that they were exporters and falsely classified the goods they exported on export records submitted to the Department of Commerce.
Ultimate recipients of ARC’s products included a research unit for the Russian FSB internal security agency, a Russian entity that builds air and missile defense systems and another that produces electronic warfare systems for the Russian Ministry of Defense.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant U.S. Attorneys Richard M. Tucker and Una A. Dean, as well as Trial Attorney David Recker from the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution. Assistant U.S. Attorney Claire Kedeshian is handling the forfeiture aspects of the case.
Exporter of Microelectronics to Russian Military Sentenced to 135 Months in Prison Following Convictions on All Counts at TrialRead the Press Release
Earlier today in United States District Court in Brooklyn, Alexander Posobilov was sentenced to 135 months’ imprisonment for conspiring to export and illegally exporting controlled microelectronics to Russia, as well as for conspiring to launder money.
Posobilov, together with ten other individuals and two corporations – ARC Electronics, Inc. (ARC) and Apex System, L.L.C. (Apex) – were indicted in October 2012. Posobilov and two co-conspirators were subsequently convicted at trial on all counts in October 2015. Of the remaining defendants, five pleaded guilty and three remain at large. ARC is now defunct, and Apex, a Russian-based procurement firm, failed to appear in court.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Acting Assistant Attorney General for National Security Mary B. McCord.
“Posobilov helped lead a criminal operation that through lies and subterfuge profited handsomely from the unlawful sale and export of sophisticated American microelectronics for use by the Russian military,” stated United States Attorney Capers. “Today’s sentence shows that those who compromise the national security of the United States for their personal financial gain will face serious punishment.” Mr. Capers extended his grateful appreciation to the Federal Bureau of Investigation, Houston Field Office and the Department of Commerce for their leading roles in the investigation.
“With this sentence, Alexander Posobilov is being held accountable for evading export laws and illegally exporting American microelectronics to Russia for military use,” said Acting Assistant Attorney General McCord. “Export laws exist as an important part of our national security framework and protecting national assets from ending up in the hands of our potential adversaries is one of our highest priorities.”
Posobilov joined ARC in 2004, where he ascended to become the procurement manager and day-to-day director of the company. Between approximately October 2008 and October 2012, managed a team of employees who worked to obtain advanced, technologically cutting-edge microelectronics from manufacturers and suppliers located within the United States and to export those high-tech goods to in Russia, while evading the government licensing system set up to control such exports. These commodities have applications and are frequently used in a wide range of military systems, including radar and surveillance systems, missile guidance systems and detonation triggers. Russia was not capable of producing many of these sophisticated goods domestically. Between 2002 and 2012, ARC shipped approximately $50,000,000 worth of microelectronics and other technologies to Russia. ARC’s largest clients were certified suppliers of military equipment for the Russian Ministry of Defense.
To induce manufacturers and suppliers to sell these high-tech goods to ARC, and to evade applicable export controls, Posobilov and his co-conspirators provided false end user information in connection with the purchase of the goods, concealed the fact that they were exporters, and falsely classified the goods they exported on export records submitted to the Department of Commerce.
Ultimate recipients of ARC’s products included a research unit for the Russian FSB internal security agency, a Russian entity that builds air and missile defense systems and another that produces electronic warfare systems for the Russian Ministry of Defense.
Today’s sentencing took place before United States District Senior Judge Sterling Johnson, Jr.
The government’s case is being handled by the Office’s National Security & Cybercrime Section. Assistant United States Attorneys Richard M. Tucker and Una A. Dean, as well as Trial Attorney David Recker from the National Security Division’s Counterintelligence and Export Control Section, are in charge of the prosecution. Assistant United States Attorney Claire Kedeshian is handling the forfeiture aspects of the case.
The Defendant:
ALEXANDER POSOBILOV
Age: 62
Houston, Texas
E.D.N.Y. Docket No. 12 CR 626 (SJ)