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Thursday 15 December 2016
Albuquerque Man Pleads Guilty to Unlawfully Possessing a Firearm and Ammunition in McKinley CountyRead the Press Release
ALBUQUERQUE – Cowey Edsitty, 32, of Albuquerque, N.M., pled guilty today in federal court to violating the federal firearms laws.
Edsitty was arrested in July 2016, on an indictment charging him with being a felon in possession of a firearm and ammunition on May 3, 2016, in McKinley County, N.M. According to court documents, Edsitty was prohibited from possessing firearms or ammunition because of his prior felony convictions for residential burglary, assault with intent to commit a violent felony, aggravated battery and aggravated fleeing a law enforcement officer.
During today’s proceedings, Edsitty pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Edsitty faces a maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and the McKinley County Sheriff’s Office. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
Alaska Man Charged with Conspiring to Provide Unlawful Services to Iran and International Money Laundering ConspiracyRead the Press Release
Kenneth Zong, 77, of Anchorage Alaska, was named as the sole defendant in the 47-count indictment charging him with conspiracy to violate the International Emergency Economic Powers Act (IEEPA), unlawful provision of services to Iran, money laundering conspiracy and money laundering.
The announcement was made by U.S. Attorney Karen L. Loeffler for the District of Alaska.
The indictment alleges that at an undetermined time, Zong left Alaska for Seoul, South Korea, and operated businesses there. From January 2011 through at least April 2014, Zong and four co-conspirators – three Iranian nationals and one U.S. citizen – allegedly conspired to evade the prohibitions of IEEPA and Iranian Transactions and Sanctions Regulations (ITSR) by engaging in false, fictitious and fraudulent transactions which were designed to unlawfully convert and remove Iranian owned funds, equivalent to approximately $1 billion United States dollars (USD). These funds were held in controlled Korean bank accounts and converted into more easily tradeable currencies, such as dollars and/or euros, by defrauding the Korean regulators into thinking the transactions were legitimate.
Zong is charged with transferring those currencies to more than 10 countries around the world, including the U.S., United Arab Emirates, Switzerland, Germany, Austria and Italy. Zong received payment for these acts from the Iranian nationals in an amount from $10 million to $17 million USD.
The indictment alleges that the scheme began in 2011, when Zong changed the name of his Korean company, “KSI Ejder, Inc.” (KSI) to “Anchore.” Zong used KSI/Anchore as a conduit to convert and distribute Iranian funds into USD and/or euros, by fictitiously selling marble tiles and other construction supplies to an Iranian shell company in Kish Island, Iran. KSI/Anchore fictitiously purchased Italian marble tiles and other construction supplies from “MSL & Co Investment Trading” (MSL Investment Dubai), an Iranian-controlled shell company in Dubai, which were then fictitiously shipped directly to another fictitious company in Iran.
Zong and his co-conspirators created false and fictitious contracts, bills of lading and invoices to show Korean government banking regulators that the Iranian company owed KSI/Anchore for the false marble purchases. This resulted in the transfer of Iranian funds, at the direction of Zong’s co-conspirators, from the restricted Iranian bank account to Zong’s KSI/Anchore account. Zong then transferred the funds to entities and individuals throughout the world.
Zong is also charged with 43 counts of money laundering and one count of money laundering conspiracy for his actions in connection with the $10 million dollar fee paid to him by his Iranian associates. In furtherance of the scheme, Zong transferred $10 million of his fees from Korea to a co-conspirator who resided in Anchorage. This individual also created and operated various companies to be used as front companies to purchase real estate, automobiles, an interest in a yacht and other purchases or transfers of the Iranian funds.
The U.S. embargo on Iran, which is enforced through IEEPA and the ITSR, prohibits the export of goods, technology, and services to Iran with very limited exceptions.
An arraignment date has not been set.
U.S. Attorney Loeffler commended the IRS-Criminal Investigation and the FBI for the investigation of this case.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Administrator of Miami-Area Home Health Agency Convicted of Conspiracy to Commit $2.5 Million Medicare Fraud SchemeRead the Press Release
The administrator of a Miami-area home health agency was convicted today for his role in a $2.5 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Division and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Raciel Leon, 42, of Miami, was convicted after a two-week jury trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay and receive health care bribes and kickbacks.
According to evidence presented at trial, between approximately October 2014 and June 2015, Leon was the manager of Mercy Home Care Inc. (Mercy) and a billing employee for D&D&D Home Health Care Inc. (DDD), both of which were home health agencies in Miami-Dade County, Florida. The evidence showed that Leon and his co-conspirators used the companies to submit false claims to Medicare that were based on services that were not medically necessary, not actually provided and for patients that were procured through the payment of illegal kickbacks to doctors and patient recruiters. In an attempt to support the false claims, Leon’s co-conspirators forged prescriptions and other medical records, and Leon submitted claims to Medicare based on the falsified documentation.
The evidence introduced at trial further established that between October 2014 and June 2015, Medicare paid approximately $2.5 million for false and fraudulent claims submitted by Mercy and DDD.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorneys Lisa Miller and Angela Adams are prosecuting the case.
The Fraud Section leads the Medicare Fraud Strike Force. Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 3,000 defendants who have collectively billed the Medicare program for more than $11 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Acoma Pueblo Man Sentenced to Prison for Domestic Assault by a Habitual Offender ConvictionRead the Press Release
ALBUQUERQUE – Darrell Chino, Jr., 34, an enrolled member of Acoma Pueblo who resides in Acomita, N.M., was sentenced today in federal court in Albuquerque, N.M., to 57 months in prison followed by three years of supervised release for his domestic assault by a habitual offender conviction.
Chino was arrested on Sept. 23, 2015, on a criminal complaint charging him with domestic assault of an intimate partner by a habitual offender on Aug. 18, 2015, in Cibola County, N.M. According to the complaint, on Aug. 18, 2015, Chino assaulted an Acoma Pueblo woman by placing his hands around the victim’s throat, shoving her to the ground and attempting to kick her. Chino was subsequently indicted on the same charge on Sept. 22, 2015. Court records indicate that Chino had previously been convicted of assault against a household member in 2011 and 2012, in the 2nd Judicial District Court for the State of New Mexico.
On April 7, 2016, Chino pled guilty to a felony information charging him with domestic assault by a habitual offender and admitted that on Aug. 18, 2015, he assaulted his intimate partner by grabbing her throat and throwing her to the ground causing her to suffer bodily injury. Chino committed the crime in Acoma Pueblo in Cibola County. Chino also acknowledged that he had at least two prior domestic assault convictions.
This case was investigated by the Laguna/Acoma Agency of the BIA’s Office of Justice Services and the Acoma Pueblo Tribal Police Department, and was prosecuted by Assistant U.S. Attorney Sarah Mease.
The case was brought pursuant to the Tribal Special Assistant U.S. Attorney (Tribal SAUSA) Pilot Project in the District of New Mexico which is sponsored by the Justice Department’s Office on Violence Against Women under a grant administered by the Pueblo of Laguna. The Tribal SAUSA Pilot Project seeks to train tribal prosecutors in federal law, procedure and investigative techniques to increase the likelihood that every viable violent offense against Native women is prosecuted in either federal court or tribal court, or both. The Tribal SAUSA Pilot Project was largely driven by input gathered from annual tribal consultations on violence against women, and is another step in the Justice Department's on-going efforts to increase engagement, coordination and action on public safety in tribal communities.
38 Individuals Indicted for Drug Trafficking in the Municipality of CayeyRead the Press Release
SAN JUAN, Puerto Rico – On December 12, 2016, a federal grand jury in the District of Puerto Rico returned an indictment against 38 defendants charged with conspiracy to possess with intent to distribute controlled substances, announced Rosa Emilia Rodríguez-Vélez, United States Attorney for the District of Puerto Rico. The Immigration and Customs Enforcement-Homeland Security Investigations (ICE-HSI), and the Puerto Rico Police Department (PRPD), Guayama Strike Force are in charge of the investigation.
According to the indictment, the defendants conspired to knowingly and intentionally possess with intent to distribute heroin, cocaine base (crack), cocaine, marihuana, Oxycodone (commonly known as Percocet), and Alprazolam (commonly known as Xanax), all within 1,000 feet of the real property comprising the Jardines de Montellano and Luis Muñoz Morales Public Housing Projects; El Polvorín, San Cristobal and Cantera wards; and other areas within and near the Municipality of Cayey, PR, all for significant financial gain and profit.
The indictment alleges that beginning in 2012, the organization established drug distribution points among the housing projects. Some of the defendants and their co-conspirators committed murders in order to maintain order and control of the drug trafficking operations. Some of the defendants, while in prison, maintained contact by phone with other members of the organization in the free community to control and coordinate drug trafficking activities. The co-conspirators sometimes referred to the drug trafficking organization as “The Punishers” and some of its members have tattoos of “The Punisher” logo to identify themselves as members of the organization.
The defendants and their co-conspirators routinely used social media to post pictures of co-conspirators, communicate amongst themselves and promote their drug trafficking activities. They took photos and videos of themselves, their associates, vehicles, drugs, firearms and other drug trafficking related items.
The defendants are: Edwin José Santos-Martínez, a.k.a. “Chinai/Chinito”; José A. Torres-Burgos, a.k.a “La Letra”; Curtis R. Laringa-Ortiz, a.k.a. “Gordo Gordo”; Arnaldo J. Vega-Marrero, a.k.a. “Naldito”; Heriberto J. Martínez-Rosa, a.k.a. “Yandel”; Gabriel E. Ortiz-Haddock, a.k.a. “Gavilán”; Javier Rivera-Nuñez, a.k.a. “Javi/Kevin/Adidas”; Carlos Omar Rivera-Pérez, a.k.a. “Carlitos Punisher”; Christopher L. Collazo-Cartagena, a.k.a. “Varguitas”; Efraín A. Planell-Pérez, a.k.a. “Gordo Billar”; Samuel Vélez-Rosa, a.k.a. “Samuelito”; Jean Carlos Vázquez, a.k.a. “Yankee”; Jonathan Vicente-Vázquez, a.k.a. “Jonan/El Negro”; Jorge E. Álvarez-Rivera, a.k.a. “Georgie”; Alexander Arroyo-González, a.k.a. “Alex Corcho/Alex Corchoneta”; Elvin Mejías-Cáceres, a.k.a. “Cuña”; Kendrick A. Morell-Torres, a.k.a. “Kenry”; Ramón E. Gómez-Montañez, a.k.a. “Imperio”; Reynaldo Alverio-Moyet, a.k.a. “Reyo/Reyito/Alverio”; Ezequiel Martínez-Llopiz, a.k.a. “Menor”; Eddie Rivera-Santana, a.k.a. “Finito/Tatuaje”; Entuan J. Rivera-Vega, a.k.a. “Bebo”; Edgardo Ramos-Meléndez, a.k.a. “Galdito”; Carlos Santiago-Morales, a.k.a. “Carlos Cantera”; Carlos E. Rosado-Hiraldo, a.k.a. “Kiko”; Ramón L. Rodríguez-Colón, a.k.a. “Topo”; Erick A. Bolorín-Vega, a.k.a. “Bolo”; Xavier De Jesús-Taboada, a.k.a. “Xavi Jordan”; Jonathan A. Alvarado-Vega, a.k.a. “Transfor”; Christopher X. Torres-Morales, a.k.a. “Buho”; Pedro De Jesús-Ortiz, a.k.a. “Pitín”; Raymond Rivera-Rivera, a.k.a. “Raymond Joe/Pupu”; Kelvin Omar Bermúdez-López; Gerardo Marcano-Rivera, a.k.a. “Bebe”; Sergio Rodríguez-Mendoza; Christian Ortiz-Meléndez, a.k.a. “Chata/Monaguillo”; Freddie Rivera-Rodríguez, a.k.a. “Domi”; and Armando Soto-Díaz.
The thirty-eight defendants acted in different roles in order to further the goals of their organization, to wit: leaders, managers, drug owners, enforcers, runners, sellers, facilitators, and lookouts. Thirty defendants are facing one charge of possession of firearms in furtherance of a drug trafficking crime.
Assistant U.S. Attorney César S. Rivera-Giraud is in charge of the prosecution of the case. Defendants convicted of drug trafficking face a minimum sentence of 10 years, and a maximum of life in prison. Defendants convicted of drug trafficking and a firearms offense face a minimum of 15 years, and up to life in prison. An indictment contains only charges and is not evidence of guilt. Defendants are presumed to be innocent until and unless proven guilty.
Wednesday 14 December 2016
Willoughby man indicted on child pornography chargesRead the Press Release
A Willoughby man was indicted on child pornography charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Conor K. Ransom, 33, was charged with receiving, distributing and possessing visual depictions of minors engaged in sexually explicit conduct.
Ransom knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct, from February 24, 2016 through on or about April 19, 2016, according to the indictment. The indictment also charges that on or about April 19, 2016, Ransom possessed a computer which contained child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Painesville, Ohio and Plano, Texas, offices of the Federal Bureau of Investigation and the Plano Police Department.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Western District of Washington U.S. Attorney’s Office Collects $14.4 Million in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016.Read the Press Release
Seattle - U.S. Attorney Annette L. Hayes announced today that the Western District of Washington collected $14.4 million in the fiscal year ending September 30, 2016. Of this amount, $8.9 was collected in criminal actions and $5.4 million was collected in civil actions.
Additionally, the Western District of Washington worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $12.4 million in cases pursued jointly with these offices. Virtually all of these funds were collected in civil actions.
“The U.S. Attorney’s Office is working for taxpayers every day ensuring that monies belonging to them are returned to government coffers,” said U. S. Attorney Annette L. Hayes. “The collections this year include funds obtained in cases involving healthcare, aviation and government contracting fraud, and pursuant to criminal authorities focused on taking the profit out of crime. Along with all the other work done by the office, these collections are testament to the hard work of lawyers and support staff dedicated to their public service mission.”
Attorney General Loretta E. Lynch announced today that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending September 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
Among the cases with significant collections are: a $3 million payment by Spiracur, Inc. to settle allegations the Sunnyvale, California medical device maker improperly compensated podiatrists at Veterans Affairs facilities to promote use if its products; a $2.8 million payment from Southwest Airlines to resolve allegations the airline violated FAA safety regulations in its maintenance of Boeing 737 aircraft; and a $1.4 million payment in U.S. v Gottfriedson – a counterfeit cigarette trafficking case.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s office in the Western District of Washington, working with partner agencies and divisions, collected $8.5 million in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The prosecution of a sophisticated drug ring, and the investigation of food stamp trafficking led to the largest forfeiture matters in fiscal 2016. In U.S. v. Gilberto Salazar Rojas, et al., Case No. CR13-050, the government forfeited $343,329 in cash and property as proceeds of a drug ring distributing large quantities of heroin, cocaine and methamphetamine. In U.S. v. 11403 23rd Ave. W. Everett, WA, et al., Case No. C14-1132 the government recovered $412,694 from a store owner related to Supplemental Nutrition Assistance Program (SNAP) Benefit Fraud and Money Laundering.
Waterbury Man Pleads Guilty to Health Care Fraud ChargeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that MAURICE SHARPE, 44, of Waterbury, waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of health care fraud.
This matter stems from an ongoing health care fraud investigation being conducted by the Office of the Inspector General of the U.S. Department of Health and Human Services, the Medicaid Fraud Control Unit of the Chief State’s Attorney’s Office and the Connecticut Office of the Attorney General. The investigation identified fraudulent activity in the area of behavioral health services. Through the Medicaid program, the State of Connecticut provides coverage for mental health and counseling services to citizens who cannot otherwise afford health insurance. “Behavioral health” includes a wide variety of health care providers who provide care on an outpatient basis, including psychiatrists, psychologists, licensed clinical social workers, licensed marriage and family therapists, licensed professional counselors, and licensed alcohol and drug counselors.
According to court documents and statements made in court, in February 2011, SHARPE and his mother, Patricia Lafayette, and another individual, formed Family First Community Support Services, LLC, a social services agency located in Torrington. SHARPE was the office manager for the agency. Lafayette and the other individual approached Anne Charlotte Silver, a licensed clinical social worker who owned and operated Silver Counseling Services, LLC, in Canton and Bantam. Lafayette and the other individual proposed a scheme to Silver to defraud Medicaid by permitting Lafayette and the other individual to bill Medicaid for psychotherapy services using Silver’s Medicaid provider number. The services were either performed by unlicensed individuals or not performed at all. Under the scheme, Silver kept 25 percent of the proceeds, and paid the remaining 75 percent to Lafayette and the other individual.
As part of his plea, SHARPE admitted that he submitted claims to Medicaid for psychotherapy services that falsely represented that Silver had personally provided the services. SHARPE also admitted that he submitted hundreds of claims to Medicaid for psychotherapy services purportedly provided to SHARPE’s family members, including SHARPE’s children and nieces and nephews, when no such services were ever provided. SHARPE also assisted in the preparation of records that falsely documented the nature and extent of the services received by his family members.
The charge of health care fraud carries a maximum term of imprisonment of 10 years. A sentencing date has not been scheduled.
Lafayette and Silver previously pleaded guilty to health care fraud for their roles in the scheme. As part of their pleas, Lafayette and Silver admitted defrauding Medicaid of over $1.6 million through the scheme. They both await sentencing.
This matter is being prosecuted by Assistant U.S. Attorney David J. Sheldon and Auditor Susan Spiegel.
The U.S. Attorney’s Office, Chief State’s Attorney’s Office and Attorney General’s Office meet regularly as part of The Medicaid Fraud Working Group. The Working Group also includes representatives from the Connecticut Department of Social Services; the Connecticut Department of Public Health; the Drug Control Division of the Connecticut Department of Consumer Protection; the Office of the Inspector General of the U.S. Department of Health and Human Services, and the FBI. The Working Group reviews pending issues and cases, identifies trends that might indicate fraudulent activity, and coordinates efforts for maximum results.
People who suspect health care fraud are encouraged to report it by calling 1-800-HHS-TIPS.
Washington D.C. Man Sentenced for Transporting Teenage Boy to Engage in Sexual ActivityRead the Press Release
BOSTON – A Washington D.C. man was sentenced today in U.S. District Court in Boston in connection with transporting a teenage boy from Maryland to Boston and other states to engage in sexual activity.
Jason Michael Wolf, 31, was sentenced by U.S. District Court Judge Allison D. Burroughs to 10 years in prison and 10 years of supervised release. Additionally, upon release from prison, Wolf will be required to register for life as a sex offender in any state in which he resides. In September 2016, he pleaded guilty to one count of transportation of a minor in interstate commerce to engage in illegal sexual activity.
On Aug. 17, 2015, the Massachusetts Bay Transportation Authority (MBTA) Police received information that an adult man and a minor were acting inappropriately at the South Station Bus Terminal. Law enforcement arrived on scene and interviewed the two individuals who were identified as Wolf and a 14-year-old boy from Maryland who was determined to be the subject of a missing persons report. The two admitted that they had met on a mobile dating app in July, traveled to Boston from Maryland, and engaged in sexual activity in Maryland, Washington D.C., New York and Boston.
In August 2015, Wolf was arrested by the Boston Police and charged with aggravated statutory rape of a child under state law. On Nov. 2, 2016, Wolf was convicted of statutory rape of a child and is set to be sentenced in state court on Jan. 6, 2017.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Boston Police Commissioner William Evans; and Chief Kenneth Green of the MBTA Transit Police Department, made the announcement today. Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit prosecuted the case.
Washington County Man Charged with Federal Drug Trafficking CrimesRead the Press Release
PANAMA CITY, FLORIDA – Glenn D. Stewart, 37, of Vernon, Florida, has been arraigned in court after a federal grand jury returned an indictment charging him with conspiracy and six counts of possession with intent to distribute methamphetamine. The indictment was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
The indictment alleges that, on various dates this year, Stewart conspired with others to distribute the controlled substance methamphetamine and possessed methamphetamine with the intent to distribute it. Stewart is in custody, pending further proceedings.
This case resulted from a joint investigation by the Drug Enforcement Administration and the Washington County Sheriff’s Office. Assistant United States Attorney Gary Milligan is prosecuting the case. The trial is scheduled for February 6, 2017, at 8:15 a.m. at the United States Courthouse in Panama City.
An indictment is merely an allegation by a grand jury that a defendant has committed a violation of federal criminal law and is not evidence of guilt. All defendants are presumed innocent and entitled to a fair trial, during which it will be the government’s burden to prove guilt beyond a reasonable doubt at trial.
The U.S. Attorney’s Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the U.S. Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Warren man faces child pornopraphy chargesRead the Press Release
A Warren man was indicted on child pornography charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
David Hafely, 19, was charged with receiving, distributing, transporting and possessing visual depictions of minors engaged in sexually explicit conduct.
The indictment charges that from on or about November 22, 2015 through on or about January 4, 2016, Hafely knowingly received and distributed numerous computer files which contained visual depictions of real minors engaged in sexually explicit conduct.
The indictment also charges that from on or about November 22, 2015 through on or about January 4, 2016, Hafely knowingly transported numerous visual depictions of real minors engaged in sexually explicit conduct.
The indictment also charges that on or about January 5, 2016, Hafely possessed a Kindle Fire HD Tablet, which contained child pornography.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant's role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
This case is being prosecuted by Assistant United States Attorney Michael A. Sullivan following an investigation by the Cleveland office of the Department of Homeland Security, Homeland Security Investigations and the Ohio Internet Crimes Against Children Task Force.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Virginia Beach Man Sentenced for Assault on a Federal OfficerRead the Press Release
NORFOLK, Va. – Marcus D. Wilkins, 27, of Virginia Beach, was sentenced today to 42 months in prison for assault on a federal officer with a dangerous weapon.
Wilkins pleaded guilty on September 7. According to court documents, on May 1, Wilkins removed a shopping cart full of unpaid merchandise from the Navy Exchange at Naval Air Station Oceana in Virginia Beach. A loss prevention officer saw him remove the merchandise and ordered him to stop. Instead, Wilkins walked away from the shopping cart and toward his car. An officer with the Naval Air Station Oceana base police observed Wilkins walking toward his vehicle and approached the vehicle, identified himself as base police and positioned himself in front of the vehicle and twice ordered Wilkins to stop. Wilkins started his car and accelerated into the police officer, lifting him off the ground with the hood of the car and pushing him backward in the air and to the ground. Wilkins then fled the Navy Exchange parking lot and was apprehended by members of the Virginia Beach Police Department shortly thereafter.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Tim Quick, Special Agent in Charge of Naval Criminal Investigative Service (NCIS) Norfolk Field Office; and James A. Cervera, Chief of Virginia Beach Police, made the announcement after sentencing by District Judge Mark S. Davis. Special Assistant U.S. Attorney Alyssa K. Nichol 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. 2:16-cr-84.
Vidor, TX, Pharmacist Pleads Guilty to Role in Health Care Fraud SchemeRead the Press Release
In Austin today, Brian David Haney, 37-year-old partial owner of Vidor Pharmacy, pleaded guilty to federal bribery and tax charges in connection with a health care fraud scheme announced United States Attorney Richard L. Durbin, Jr.
Appearing before U.S. Magistrate Judge Mark Lane, Haney pleaded guilty to a two-count Information charging him with willful offer and payment of illegal remuneration in relation to a federal health care program and one count of making and filing a false Income Tax return.
By pleading guilty, Haney admitted that from November 30, 2011 to January 2, 2014, he paid kickbacks totaling $813,560.87 to Garry Wayne Craighead. Craighead, a chiropractor, organized and controlled multiple health care related entities, including eight clinics in Texas (Dallas, Fort Worth, Killeen, Austin, San Antonio, Corpus Christi, Weslaco, and Beaumont), that derived substantial revenue from the U.S. Department of Labor’s health care benefit programs. Haney paid Craighead cash for patient referrals of federally-insured employees in need of prescription services.
Haney also admitted to filing a false Income Tax return for calendar year 2013 in which he substantially understated his total income, adjusted gross income and taxable income.
Haney remains on bond pending sentencing before U.S. District Judge Sam Sparks in Austin. No sentencing date has been scheduled. Haney faces up to five years in federal prison for the bribery charge and up to three years in federal prison for the tax charge.
On December 4, 2015, Craighead pleaded guilty to one count of solicitation and receipt of illegal remunerations in federal health care programs and one count of engaging in monetary transactions in property derived from specified unlawful activity. On June 10, 2016, Craighead was sentenced to 14 years in federal prison and ordered to pay over $17 million restitution to the U.S. Department of Labor.
The U.S. Postal Service Office of the Inspector General, U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit, Federal Bureau of Investigation, Internal Revenue Service-Criminal Investigation, and the U.S. Department of Labor Office of the Inspector General conducted this investigation. Assistant U.S. Attorneys James Blankinship and Mark Marshall are prosecuting this case for the government.
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U.S. Attorney’s Office Collects $3,730,685 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced today that the U.S. Attorney’s Office for the District of Maine collected $3,730,685.68 in criminal and civil actions in Fiscal Year 2016. Of this amount, $1,082,526.09 was collected in criminal actions and $2,648,159.59 was collected in civil actions.
Additionally, the District of Maine worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $925,487.01 in cases pursued jointly with these offices. Of this amount, $2,625.01 was collected in criminal actions and $922,862.00 was collected in civil actions.
Attorney General Loretta E. Lynch announced today that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year’s collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
The District of Maine recovered over $633,000 as part of a settlement with Maine Dermatology arising out of allegations of false Medicare claims; over $439,000 as part of a settlement with Belcon Enterprises f/k/a “Roof Systems of Maine” arising out of allegations of false claims relating to government contracts; $685,000 as part of a foreclosure action involving Spring House Associates; and $125,000 as part of a settlement with Northern Maine Medical Center arising out of allegations that it failed to create and maintain adequate records of its handling and disposal of controlled substances.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
Additionally, the U.S. Attorney’s Office for the District of Maine, working with partner agencies and divisions, collected $1,733,252 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Asset Forfeiture Fund and the Treasury Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
U.S. Attorney's Office collects over $6.5 million for taxpayers in Fiscal Year 2016Read the Press Release
CHARLESTON, W.Va. – The United States Attorney’s Office for the Southern District of West Virginia has collected $6,668,404.52 in the last year, which represents over $1.1 million more than the office’s annual direct budget, announced United States Attorney Carol Casto. Of this amount, $1,511,417.96 was collected in criminal actions, $4,591,072.32 was collected in civil actions, and $565,914.24 was collected in asset forfeiture. The U.S. Attorney’s Office collected this amount through the efforts of the attorneys and staff within the office, and also by working with other U.S. Attorneys’ offices, components of the Department of Justice, and other federal agencies.
Attorney General Loretta E. Lynch announced today that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
United States Attorney Carol Casto noted, “The over $6 million collected by this office more than covers the direct operating budget of the office for the entire fiscal year. The strong collaboration of the attorneys and staff of the civil and criminal divisions with federal, state, and local law enforcement agencies makes these significant collections possible. Though our top priority is always ensuring the safety of our communities, we also work together with our law enforcement partners to hold wrongdoers responsible for the financial losses associated with their offenses.”
A substantial amount of the collection total came from the prosecution of Freedom Industries and six defendants associated with Freedom for the 2014 chemical spill that left hundreds of thousands of people in the Kanawha Valley without water for several days. Freedom paid nearly $600,000 to resolve its federal bankruptcy case. Additionally, the individuals prosecuted, including two former presidents of Freedom, have paid over $86,000 in fines as part of their sentences. Another corporate officer held accountable for criminal activity was former Massey Energy CEO Don Blankenship. Never before in U.S. history had the CEO of a publicly traded company been convicted of a workplace safety crime. His trial ended with a jury finding him guilty, and in April 2016, as part of his sentence, Blankenship was ordered to spend one year in federal prison and to pay a $250,000 fine.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
In addition to the civil and criminal collections, the U.S. Attorney’s Office, working with partner agencies and divisions, collected $565,914.24 in asset forfeiture actions in fiscal year 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes. This brings the total amount collected by the U.S. Attorney’s Office in fiscal year 2016 to $6,668,404.52. The fiscal year began on October 1, 2015, and ended on September 30, 2016.
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Two Individuals Sentenced to Prison for Fraud in Connection with BP Oil SpillRead the Press Release
Gulfport, Miss – Thi Houng Le a/k/a Kristy Le, age 34, of Pascagoula, and Gregory P. Warren, age 52 of Lafayette, Louisiana, were sentenced today by Chief U.S. District Judge Louis Guirola for conspiracy to commit identity theft, aggravated identity theft, mail fraud and wire fraud in connection with a lawsuit against BP, announced U.S. Attorney Gregory K. Davis and U.S. Secret Service Special Agent in Charge Craig Caldwell.
Le was sentenced to 84 months in federal prison followed by 3 years of supervised release. She was also ordered to pay a fine in the amount of $25,000.00. Warren was sentenced to 204 months in federal prison followed by 3 years of supervised release. He was also ordered to pay a fine in the amount of $25,000.00. The defendants were convicted by a jury following a four-week trial before Chief U.S. District Judge Louis Guirola in August, 2016.
The defendants in this case carried out a conspiracy to defraud numerous victims from multiple states and the BP Gulf Coast Claims Facility by obtaining names, addresses, dates of birth, and social security numbers from any source available to create “clients” for anticipated litigation as a result of the Deepwater Horizon Oil Spill. The defendants fraudulently submitted names of over 40,000 individuals as plaintiffs in litigation related to the Deepwater Horizon/BP oil spill, knowing that the individuals had not consented to be represented by the law firm. They also submitted stolen and false social security numbers, dates of birth, addresses, and occupations.
This case was investigated by United States Secret Service and prosecuted by Assistant U.S. Attorneys Jerry Rushing and Gregg Kennedy.
Two Convicted After Trial for Illegal Entry from CanadaRead the Press Release
SYRACUSE, NEW YORK – Rostislav Skalka, 48, of the Czech Republic and Robert Bella, 45, of Slovakia were each convicted of one count of illegal entry into the United States following a one-day, non-jury trial in federal court yesterday. The announcement was made by United States Attorney Richard S. Hartunian and John C. Pfeifer, Chief Patrol Agent, Swanton Sector, United States Border Patrol.
At trial, the evidence established that Skalka and Bella entered the United States from Canada near Waddington, New York, by crossing the St. Lawrence River in a makeshift raft and without immigration inspection at a valid port of entry. Following the verdict, United States Magistrate Judge David E. Peebles sentenced the defendants to time served (three months) in connection with their convictions for these misdemeanor offences. Skalka and Bella are expected to face deportation following further proceedings.
The case was investigated by the United States Border Patrol and was prosecuted by Assistant United States Attorney Sahar L. Amandolare.
Three Delray Beach Return Preparers Plead Guilty to Preparing False Tax Returns for ClientsRead the Press Release
Three Delray Beach tax return preparers pled guilty to unlawfully enriching themselves by submitting false federal income tax returns to the Internal Revenue Service (IRS) on behalf of their clients.
Wifredo A. Ferrer, U.S. Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
Devonne Herrington, 64, her son, Lorenzo Wright, 49, and co-defendant Joyce Walker, 61, all of Delray Beach, pled guilty to one count of conspiracy to defraud the United States, in violation of Title 18, United States Code, Section 371. Herrington also pled guilty to one count of failure to file personal tax returns, in violation of Title 26, United States Code, Section 7203. Walker also pled guilty to one count of filing false personal tax returns, in violation of Title 26, United States Code, Section 7206(1).
Walker is scheduled to be sentenced on January 27, 2017, and Herrington and Wright are scheduled to be sentenced on February 17, 2017, all before United States District Judge Robin L. Rosenberg. At sentencing, the defendants face up to five years in prison for the conspiracy charge. Walker also faces up to three years in prison for filing false tax returns. Herrington also faces up to one year in prison for the failure to file tax returns charge.
According to court documents, Herrington established and operated a tax preparation business in Delray Beach, Florida, that was initially known as Devonne's LLC and later known as Wright's & Family LLC. Herrington hired tax preparers, including her son, Wright, and co-defendant Walker, to assist her with preparing tax returns for her clients. Herrington, Wright and Walker met with clients in person at the tax preparation office in order to conduct a cursory interview and collect required tax forms.
Although the clients did not claim to be eligible for, or provide documents in support of, certain tax credits or income deductions, the defendants prepared tax returns which falsely stated that the clients were eligible for such credits and deductions. The tax credits falsely claimed by the defendants included credits for first time home purchasers and education expenses. The income deductions falsely claimed by the defendants included deductions for business expenses and for being the head of household. These false and fraudulent credits and deductions reduced the clients' tax liability and increased their tax refunds.
The defendants claimed the false tax credits and deductions on IRS schedules and forms which were included in the clients' tax returns. Herrington, Wright, and Walker charged the clients extra fees for these additional fraudulent schedules. In most instances, the defendants did not review the returns with the clients prior to filing them with the IRS and did not provide copies of the returns to the clients.
Many clients have since been audited by the IRS and now have to pay back the refunds they received as a result of the fraudulent credits and deductions added to their tax returns by the defendants.
Herrington did not file her personal income tax returns for calendar years 2010 and 2011. In addition, Walker filed her personal income tax returns for calendar years 2010 and 2011 containing false claims for the Education Expense Credit.
Mr. Ferrer commended the investigative efforts of IRS-CI. The case is being prosecuted by Assistant U.S. Attorney Ellen L. Cohen.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Cedar County Men Sentenced to Federal Prison on Meth Manufacturing ChargesRead the Press Release
Last week, three Cedar County men were sentenced to federal prison on methamphetamine manufacturing charges. Telly Ranzenberger and Brian Hagen were sentenced to 60 months’ imprisonment and 48 months’ imprisonment, respectively. In a separate case, Tracey McGhghy was sentenced to 90 months’ imprisonment
Hagen, 43, and Ranzenberger, 42, from Lowden, Iowa, and McGhghy, 48, from Manley, Iowa, received the prison terms after pleading guilty to conspiring to manufacture methamphetamine. At separate plea hearings, each defendant admitted that he entered into a conspiracy to manufacture methamphetamine.
Ranzenberger and Hagen were sentenced in Cedar Rapids by United States District Court Senior Judge Mark W. Bennett. McGhghy was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Each defendant was ordered to serve a 3-year term of supervised release after the prison term. There is no parole in the federal system.
The cases were prosecuted by Assistant United States Attorney Ravi T. Narayan and investigated by the Cedar County Sheriff’s Office. The Cedar County Sheriff’s Office received assistance from the Muscatine County Drug Task Force, the Iowa State Patrol, the Iowa Division of Narcotics Enforcement, and the Johnson County Drug Task Force.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file numbers are 16-CR-42 and 16-CR-60
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South Bend Man Sentenced to 444 Months ImprisonmentRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Ivan Brazier, 40, of South Bend, Indiana was sentenced before South Bend District Court Judge Robert Miller, Jr. for kidnapping and extortion.
Brazier was sentenced to 444 months imprisonment and 1 year supervised release.
According to documents filed in this case, Brazier and his codefendants possessed firearms as felons to unlawfully confine or kidnap an individual and demanded a ransom for that individual’s release. A firearm was discharged, hitting the victim, during the kidnapping. Two co-defendants, Lindani Mzembe and Derek Fields were convicted in separate trials of kidnapping, extortion, being a felon in possession of a firearm, and use of a firearm in a crime of violence. Mzembe is scheduled to be sentenced on January 5, 2017, and Fields is scheduled to be sentenced on February 22, 2017.
This case was prosecuted as a result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives; Federal Bureau of Investigation; South Bend Police Department and the St. Joseph County Metro Homicide. This case was prosecuted by Assistant United States Attorneys John M. Maciejczyk and Joel Gabrielse.
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Scranton Man Sentenced to Six Years in Prison for Role in Sex Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that Justin Strait, age 26, of Scranton, Pennsylvania, was sentenced to six years in prison on December 13, 2016, by Senior U.S. District Court Judge James M. Munley in Scranton, for his role in a sex trafficking conspiracy that used a minor to engage in prostitution at several hotels and motels in Northeastern Pennsylvania.
According to United States Attorney Bruce D. Brandler, Strait previously admitted that he assisted three other men in the sex trafficking activity during early-to-mid 2014. Strait pleaded guilty in July 2015.
Judge Munley also ordered Strait to serve five years on supervised release following his prison sentence. Strait must also register as a sex offender and comply with all sex offender notification requirements of federal and state law.
Three other men connected to the sex trafficking conspiracy have also pleaded guilty: Sean Cantelmo was sentenced to 151 months in prison; Jimmy Cantelmo was sentenced to 10 years in prison; and Mark Matis is awaiting sentencing.
Strait and/or his co-conspirators recruited the minor to engage in prostitution, rented motel rooms for purposes of prostitution, provided condoms to the minor, photographed the minor and posted advertisements for “escort services” on a website, provided illegal drugs to the minor, and acted as security during prostitution activities.
The case was investigated by Homeland Security Investigations and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa prosecuted the case.
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
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Rhode Island Man Charged with Traveling to Connecticut to Engage in Sex with MinorRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that a federal grand jury in Hartford returned an indictment today charging NICHOLAS MURPHY, 27, of Exeter, R.I., with one count of traveling to engage in illegal sexual activity with a minor.
The indictment alleges that in September 2015, MURPHY travelled from Rhode Island to Connecticut for the purpose of engaging in a sexual act with a minor
If convicted of the charge, MURPHY faces a maximum term of imprisonment of 30 years.
MURPHY was arrested on related state charges on May 9, 2016. He is scheduled to be arraigned on December 28 in Hartford federal court.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Federal Bureau of Investigation, Plainfield Police Department and Rhode Island State Police. The case is being prosecuted by Assistant U.S. Attorney Nancy V. Gifford.
Poca man sentenced to over seven years in federal prison for gun chargeRead the Press Release
CHARLESTON, W.Va. – A Poca man caught with a loaded gun and drugs after a car chase was sentenced today to seven years and three months in federal prison for a gun crime, announced United States Attorney Carol Casto. Steven Eugene Adkins, 37, previously pleaded guilty to being a felon in possession of a firearm.
Adkins admitted that on January 14, 2016, he possessed a loaded Smith & Wesson Model 22A-1 pistol. Adkins was prohibited under federal law from possessing any firearm because of two previous convictions in Kanawha County Circuit Court for possession with intent to deliver marijuana. At the time Adkins possessed the handgun, Adkins additionally admitted that he ran a red light in St. Albans. In response, a St. Albans Police Department patrol officer attempted a traffic stop. Adkins further admitted that he did not attempt to stop, and during the course of the subsequent chase, he exceeded the speed limit, passed vehicles despite the double yellow line, and drove the wrong way on a one-way street. The car chase ended in Nitro and Adkins admitted that he exited the vehicle and was apprehended after a brief foot chase. Law enforcement recovered the gun and methamphetamine from Adkins. Officers also seized 40 knives and a machete from the vehicle.
The investigation was conducted by the St. Albans Police Department, the Metropolitan Drug Enforcement Network Team, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, with the assistance of the West Virginia State Police and the South Charleston Police Department. Assistant United States Attorney Clint Carte is responsible for the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime. This case was also prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities, including methamphetamine. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
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Pioneer man charged with stealing firearmsRead the Press Release
A Pioneer man was charged with stealing firearms, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
A criminal information was filed charging Kyle Shirey, 34, with theft of a firearm from a firearms dealer and receipt and possession of a firearm not registered through the Bureau of Alcohol, Tobacco, Firearms and Explosives.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Bureau of Alcohol, Tobacco, Firearms, and Explosives, Toledo, Ohio. The case is being handled by Assistant United States Attorney Tracey Ballard Tangeman.
A charge is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Physician Indicted for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a former Kansas City, Mo., physician was indicted by a federal grand jury today on charges related to child pornography.
Jeffrey A. Hassenflug, 41, formerly of Kansas City, was charged in a three-count indictment returned by a federal grand jury in Kansas City, Mo. Hassenflug, a physician, currently maintains a practice in Texas.
Today’s federal indictment alleges that Hassenflug distributed child pornography over the Internet from March 7 to May 12, 2016. Hassenflug is also charged with receiving child pornography over the Internet and with possessing child pornography of a child victim under the age of 12.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges 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 David Luna. It was investigated by the FBI.
Project Safe Childhood
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 United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Physician Charged with Conspiracy to Receive and Pay Illegal Health Care KickbacksRead the Press Release
U.S. Attorney Kenneth A. Polite announced that a one-count Bill of Information was filed yesterday against a local ophthalmologist charging him with paying approximately $231,034 in illegal kickbacks.
Specifically, JOBIE CREAR, M.D., age 65, New Orleans, was charged with conspiracy to receive and pay health care kickbacks. CREAR operated Comprehensive Nursing and Home Health Service, Inc. (Comprehensive) in New Orleans. CREAR is charged with illegally paying recruiters to bring Medicare beneficiaries to Comprehensive.
If convicted, CREAR, faces a possible maximum sentence of 5 years imprisonment and a $250,000 fine.
U.S. Attorney Polite reiterated that the Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
The ongoing investigation is being conducted by Special Agents of the Federal Bureau of Investigation. U.S. Attorney Patrice Harris Sullivan is in charge of the prosecution.
Owner of Chesapeake Barber College Pleads Guilty to $4.5 Million GI Bill FraudRead the Press Release
NORFOLK, Va. – Katherine Grobes, 45, of Chesapeake, pleaded guilty today to a charge of conspiracy to commit wire fraud.
According to the statement of facts filed with the plea agreement, Grobes owns the College of Beauty and Barber Culture (CBBC), located in Chesapeake. CBBC was purportedly a barber and cosmetology school approved by the Department of Veterans Affairs to provide education and training to military veterans, including veterans who received tuition assistance under the Post-9/11 GI Bill. Grobes represented to the VA that CBBC provided full-time schooling to hundreds of veteran students beginning in October 2011. In reality, the school was a sham. Most veterans enrolled in CBBC courses received few, if any, hours of instruction from CBBC employees, and there were no tests, exams, or practical exercises given. Rather, students were directed to simply sign in and out of the school each day so that Grobes could report to the VA that they were enrolled and attending. In exchange, CBBC received Post-9/11 GI Bill tuition payments for each veteran from the VA. Based on Grobes’ provision of false information to the VA concerning the number of hours of instruction and the manner and quality of the instruction provided to veteran students, CBBC received over $4.5 million in Post-9/11 GI Bill tuition payments between October 2011 and September 2016. Grobes owns CBBC along with her husband, William Grobes, who pleaded guilty on November 30, to charges of conspiring to commit wire fraud and money laundering.
Grobes was charged by criminal information on December 2, and faces a maximum penalty of 5 years in prison when sentenced on March 10, 2017. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Michael J. Missal, Inspector General, U.S. Department of Veterans Affairs; Andrew L. Traver, Director of the Naval Criminal Investigative Service (NCIS); and Thomas Holloman, Acting Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), made the announcement after the plea was accepted by U.S. Magistrate Judge Douglas E. Miller. Assistant U.S. Attorney V. Kathleen Dougherty is prosecuting 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. 2:16-cr-164.
Owner of Axis Benefit Administrators Sentenced to 46 Months in Prison for Theft of $3 Million from HRA FundsRead the Press Release
PORTLAND, Ore. – On Wednesday, December 14, 2016, U.S. District Judge Robert E. Jones sentenced Darren Bottinelli, 45, to 46 months in federal prison followed by three years of supervised release. Bottinelli was also ordered to pay $3,093,918 in restitution to his victims.
In March 2016, Bottinelli pled guilty to one count of theft in connection with health care, admitting that between 2009 and 2014 he stole approximately $3 million from individual health reimbursement accounts (HRA) under management by his company, Axis Benefit Administrators, Inc., also known as AXIS Health Partners.
Bottinelli served as the sole shareholder, officer and director of Axis, based in Portland, administering employee health reimbursement and flexible spending accounts for client employers nationwide. According to Axis contracts with employers, the company pledged to post employer contributions to trust accounts for participants who could then seek reimbursement for eligible health expenditures from their account funds.
On March 19, 2014, Bottinelli abruptly closed the Axis office without any communication to client employers or plan participants. As a result, over 3,000 plan participants were unable to access their account funds. Victims reported financial devastation, blocked access to necessary medical treatment and severe emotional trauma as a result of Bottinelli’s theft and failure to provide notice of the company’s closure.
Bottinelli’s client employers included government contractors and other companies who hire hourly and minimum wage contract workers. Some of his clients, including Goodwill Industries of South Texas, Morgan Memorial Goodwill Industries, Job Squad, Cascade Christian Services, VersAbility Resources (formerly known as the Arc of the Virginia Peninsula), and Vets Securing America, employed veterans, mentally and physically disabled adults and other vulnerable individuals.
Bottinelli improperly and repeatedly accessed trust account funds to maintain a luxurious lifestyle, including memberships to exclusive and private clubs, frequent high-end dining, expensive wine purchases, and first class travel.
“Mr. Bottinelli violated the trust placed in him and his company by thousands of honest, hardworking people,” said Billy J. Williams, United States Attorney for the District of Oregon. “These individuals diligently saved a portion of their pay to provide medical care for themselves and their loved ones, only to have their money stolen by Mr. Bottinelli for his own gain. This sentence serves as a reminder,” continued U.S. Attorney Williams, “that those who violate the trust of others under the guise of financial management and security will be vigorously investigated, prosecuted, and punished for their actions.”
“Darren Bottinelli treated these health care reimbursement accounts as his personal ATM without regard for the real hardship that he was causing thousands of hardworking people. These folks lost more than $3 million – money that had been set aside to pay for needed medical care for their families. Today’s prison sentence is a start on making things right, but the suffering he caused these victims will live on for some time,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon.
“Mr. Bottinelli decided to illegally enrich himself at the expense of hard working employees and their employers, and today he was held accountable,” said Jean Ackerman, Regional Director for the U.S. Department of Labor Employee Benefits Security Administration (DOL ESBA). “This case demonstrates how federal agencies work together to vigorously enforce criminal violations committed against employee benefit plans and their participants.”
The case was investigated by DOL ESBA, the FBI, and the U. S. Department of Labor, Office of the Inspector General (USDA OIG). The case was prosecuted by Donna Brecker Maddux, Assistant United States Attorney for the District of Oregon.
Owner of Toms River, New Jersey, Accounting Business Gets 37 Months in Prison for Swindling Clients Out of Tax RefundsRead the Press Release
CAMDEN, N.J. – A Toms River, New Jersey, woman was sentenced today to 37 months in prison for filing false tax returns and using her accounting business to cheat her clients out of their tax refunds, U.S. Attorney Paul J. Fishman announced.
Doreen Gentile, 62, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to Count 2 and Count 27 of an indictment, charging her with mail fraud and filing a false income tax return. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Gentile owned and operated her accounting business, Doreen A. Gentile & Associates, LLC (DAG & Associates), out of her home in Toms River. Gentile admitted that as part of her scheme, she would show her clients a tax return that indicated that they had no tax or refund due, owed a minimal amount of tax, or were due a refund that was far less than the amount to which they were entitled. Gentile then prepared a second set of tax returns, signed without her clients’ permission, that she submitted to the IRS or the State of New Jersey for the full tax refund.
Based on the second set of returns, the IRS or the State of New Jersey issued tax refund checks care of DAG & Associates and mailed them to the DAG & Associates post office box in Toms River. Gentile then deposited the tax refund checks into the DAG & Associates bank account without her clients’ permission. Afterwards, Gentile used the funds to pay for personal expenses.
Gentile also admitted that from 2006 through 2009, she failed to report to the IRS all of her income generated from DAG & Associates, including funds she stole as part of her refund scheme, resulting in tax losses of approximately $188,811.
In addition to the prison term, Gentile must serve three years of supervised release and pay restitution of $1,863,013.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen, and special agents of the Social Security Administration, Office of Inspector General, under the direction of Special Agent in Charge Edward J. Ryan, the for investigation leading to today’s sentencing.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Christopher O’Malley Esq., Camden
Overdose Investigation Results in 30-Month Sentence for Norwich ManRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JONATHAN FISHER, 35, of Norwich, was sentenced today by U.S. District Judge Vanessa L. Bryant in Hartford to 30 months of imprisonment, followed by three years of supervised release, for distributing heroin.
This matter stems from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on April 9, 2016, Norwich Police responded to a medical emergency at FISHER’s residence. The emergency involved an 18-year-old male who had died from an apparent heroin overdose. FISHER was not present at the time law enforcement had arrived. A search of the victim’s wallet revealed one used glassine baggy and 10 unopened baggies marked with a particular brand stamp. A field test of the substance in the baggies yielded a positive presence for both heroin and fentanyl.
Approximately one month prior to the overdose death, FISHER was arrested by Norwich Police after he was found in possession of numerous baggies of heroin that were marked with the same stamp.
On April 12, 2016, Norwich Police arrested FISHER at a Norwich hotel. A search of FISHER’s wallet contained two glassine baggies containing suspected heroin and marked with the same brand stamp. A search of the hotel room where FISHER had been staying revealed more than 300 bags of heroin, prescription narcotics, more than one pound of marijuana, a digital scale and hundreds of empty glassine bags marked with the same stamp.
On May 2, 2016, FISHER pleaded guilty to one count of possession with the intent to distribute, and distribution of, heroin. FISHER, who had been released on bond, was remanded to the custody of the U.S. Marshals Service at the conclusion of today’s court proceeding.
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad and the Norwich Police Department. The Tactical Diversion Squad includes members from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton, Milford, Monroe, Fairfield and Manchester Police Departments, and the Connecticut State Police.
This case was prosecuted by Assistant U.S. Attorney Avi M. Perry.
Northwest Arkansas Pair Receive Combined Sentence of over 22 Years in Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Allen Dwight Gailliot, age 62 of Fayetteville and Leslie Erin Curtis, age 45 of Bella Vista, were sentenced today on one count each of Conspiracy to Distribute Methamphetamine. Gailliot was sentenced to 151 months in federal prison followed by three (3) years of supervised release and ordered to pay a $3,400.00 fine. Curtis was sentenced to 121 months in federal prison followed by three (3) years of supervised release and ordered to pay a $5,900.00 fine. The Honorable Timothy L. Brooks presided over the sentencing hearings in the United States District Court in Fayetteville.
According to court records, on March 10, 2016, Leslie Curtis sold one ounce of methamphetamine to a confidential source from her residence in Fayetteville. On March 11, 2016, detectives from the 4th Judicial Drug Task Force executed a search warrant at Curtis’ and Gailliot’s two residences both located in Fayetteville. Detectives found approximately ½ pound of methamphetamine in each residence which was packaged for sale, digital scales, baggies, drug ledgers, and packages from the United States Postal Service (USPS) addressed to Gailliot that had been sent from California. Gailliot was found to be in possession of a card for a storage unit located in Fayetteville which was leased under Curtis’ name. Curtis told detectives that she and Gailliot would place orders for and receive pounds of meth at a time through the mail from California and would then distribute it throughout Washington County. On March 15, 2016, a search warrant was executed on the storage unit where approximately four (4) pounds of methamphetamine were located in USPS. parcels addressed to Gailliott.
Gailliot and Curtis were indicted by a federal grand jury in May, 2016 and pleaded guilty in September, 2016.
This case was investigated by the 4th Judicial Drug Task Force. Assistant United States Attorney Denis Dean prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
Northern District of Texas U.S. Attorney’s Office Collects $27,693,232 in Civil and Criminal Actions for U.S. Taxpayers in Fiscal Year 2016Read the Press Release
DALLAS – U.S. Attorney John Parker announced today that the Northern District of Texas collected $27,693,232 in criminal and civil actions in Fiscal Year 2016. Of this amount, $16,872,986 was collected in criminal actions and $10,820,245 was collected in civil actions.
Additionally, the Northern District of Texas worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $74,874 in criminal cases pursued jointly with these offices
Attorney General Loretta E. Lynch announced today that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
“I’m particularly pleased to see an increase in collections of more than $10 million over last year,” said U.S. Attorney Parker. “The message in these numbers should be clear. This office can be very patient and won’t just go away. We will continue to vigorously pursue all available enforcement remedies to recover assets for both victims of crime and the federal treasury for so long after sentencing or judgment as is necessary.”
Substantial collections in FY 2016 in the District included:
- More than $4 million in funds from multiple bank accounts, four luxury vehicles, artwork, a grand piano, wine collection, hundreds of pieces of high-end crystal, furs, handbags, jewelry, luggage, shoes, and watches returned to the Collin Street Bakery within 60 days of sentencing in the massive embezzlement, bank fraud, and conspiracy to commit money laundering case, U.S. v. Sandy and Kay Jenkins;
- $3.5 million from Preferred Imaging Centers, LLC in settlement of a False Claims Act qui tam case;
- $3.28 million settlement from the estate of Kenneth Rice in a False Claims Act health care fraud case;
- $1.8 million in restitution, plus a $100,00 fine, and several hundred thousands of dollars forfeited to the government that was paid in full at sentencing in the U.S. v. Robert Gross health care fraud;
- $1.1 million in forfeited assets restored to restitution in the U.S. v. Cyprian and Patricia Akamnonu health care fraud case;
- $762,150, more than half of the $1.3 million restitution owed to the U.S. Department of Housing and Urban Development (HUD), in the U.S. v. Lonnie Brantley and Steve Holmes housing fraud case;
- $500,000 paid in full at sentencing in the U.S. v. Daniel Bergin securities fraud case;
- $324,750 in restitution to the National Credit Union Association in the U.S. v. Theresa Portillo bank fraud case; and
- $276,400 in restitution paid in full to the Internal Revenue Service (IRS) in the U.S. v. Bettye Blount tax fraud case
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including HUD, the U.S. Department of Health and Human Services, the IRS, Small Business Administration, and U.S. Department of Education.
Additionally, the U.S. Attorney’s office in the Northern District of Texas, working with partner agencies and divisions, collected $10,695,313 in asset forfeiture actions in FY 2016. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
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Norfolk Man Distributed Heroin Laced with FentanylRead the Press Release
NORFOLK, Va. – Lamar Sinclair, 33, of Norfolk, was sentenced today to 105 months in prison for conspiracy to distribute heroin.
Sinclair pleaded guilty on September 7. According to court documents, from 2012 to April 2016, Sinclair has conspired to distribute heroin in Norfolk and Virginia Beach with approximately eight other individuals. Sinclair’s heroin was laced with fentanyl which caused six of his heroin customers to overdose. In each case the police or emergency services were able to revive the victims of the overdoses. Sinclair was aware of the overdoses and bragged that his heroin was very potent because of the added fentanyl, and referred to his heroin as “The Missile.” Law enforcement conducted nine controlled purchases of heroin from Sinclair, with two of those purchases testing positive for fentanyl.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Karl C. Colder, Special Agent in Charge for the Drug Enforcement Administration’s (DEA) Washington Field Division, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Bill Muhr 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. 2:16-cr-114.
Nitro woman sentenced for failing to report to prisonRead the Press Release
CHARLESTON, W.Va. – A Nitro woman was sentenced today to eight months for failing to report to serve her prison sentence, announced United States Attorney Carol Casto. Kelli Engler, also known as Kelli Reed and Kelli Reed-Engler, 39, previously pleaded guilty to the federal crime.
Engler admitted that she was ordered by the United States District Court for the Southern District of West Virginia to serve 90 days of incarceration for a violation of her supervised release. Engler was ordered to report to prison by March 25, 2016, and was permitted by the Court to voluntarily self-report. She did not report to prison as required, and on June 28, 2016, law enforcement apprehended her in Tennessee.
Engler was on supervised release as part of her sentence for a 2011 federal conviction for access device fraud. The violations of her supervised release included not paying restitution and not reporting to the United States Probation Office as required.
The United States Marshals Service and the Rutherford County Sheriff’s Office in Tennessee conducted the apprehension and investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
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New Orleans Man Sentenced for BP FraudRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GRAEGG L. HOLMES, age 43, of New Orleans, was sentenced yesterday after previously pleading guilty to committing wire fraud related to the 2010 British Petroleum Oil Spill.
U.S. District Court Judge Sarah S. Vance sentenced HOLMES to twelve months imprisonment to be followed by 3 years of supervised release, and $33,900 in restitution.
According to court records, at his guilty plea in August, 2016, HOLMES admitted that he filed a fraudulent application for relief relating to the April 20, 2010 explosion and fire, which occurred on the Deepwater Horizon, an oil rig in the Gulf of Mexico where BP had been drilling a well. In reality, HOLMES admitted that he worked at Abide Home Care from approximately 2001 through 2014. HOLMES used false documentation related to a non-existent catering business that he claimed lost money because of the Deepwater Horizon Disaster. On August 4, 2016, HOLMES was ordered detained pending trial by U.S. Magistrate Judge Janis van Meerveld after his arrest for home invasion in Orleans Parish.
This case was brought as part of this District’s partnership with the National Center for Disaster Fraud (NCDF), a nationwide initiative to protect available funds and assistance for those victims of both natural and man-made disasters such as hurricanes, floods, tornadoes and the recent Gulf oil spill. If you have knowledge of fraud, waste, abuse, or allegations of mismanagement involving disaster relief operations, you can contact the NCDF by either calling the hotline at (866) 720-5721, faxing (225) 334-4707, emailing at [email protected] or in writing to National Center for Disaster Fraud, Baton Rouge, LA 70821-4909.
U.S. Attorney Polite praised the work of the Federal Bureau of Investigation in investigating this matter. Assistant U. S. Attorneys Patrice Harris Sullivan and Hayden Brockett were in charge of the prosecution.
Nevada U.S. Attorney's Office Collects $26.8 Million for U.S. Taxpayers in 2016Read the Press Release
LAS VEGAS, Nev. – United States Attorney Daniel G. Bogden announced today that the U.S. Attorney’s Office for the District of Nevada collected approximately $26,800,380 in criminal, civil and asset forfeiture actions in Fiscal Year (FY) 2016. Of this amount, approximately $11,542,574 was collected in criminal actions, approximately $9,507,631 was collected in civil actions, and $5,750,175 was collected in asset forfeiture actions in FY 2016.
The District of Nevada also worked with other U.S. Attorney’s Offices and components of the Department of Justice to collect an additional $62,234 in cases pursued jointly with these offices.
“Our office is committed to enforcing the recovery of civil and criminal debts owed to the United States and to victims of federal crime. These collections are used to help crime victims and for a variety of law enforcement purposes,” said U.S. Attorney Bogden. “Our work has produced a significant return on investment. Our FY 2016 collections substantially exceeded the total appropriated budget for our office for the year. Since FY 2013, our office has collected a total of approximately $78.2 million in criminal, civil and asset forfeiture actions. I commend our attorneys and especially our staff in the Financial Litigation Unit and Asset Forfeiture Section for their remarkable work in recovering many, many millions in funds for the federal treasury and for victims of federal crime.”
Attorney General Loretta E. Lynch also announced today that the Justice Department collected nearly $15.4 billion in civil and criminal actions in the fiscal year ending Sept. 30, 2016. The $15,380,130,434 in collections in FY 2016 represents more than five times the appropriated $2.93 billion budget for the 94 U.S. Attorneys’ offices and the main litigating divisions of the Justice Department combined in that same period.
“Every day, the men and women of the Department of Justice work tirelessly to enforce our laws, ensuring that taxpayer dollars are used properly and that the American people are protected from exploitation and abuse,” said Attorney General Lynch. “Today’s announcement is a testament to that work, and it makes clear that our actions deliver a significant return on public investment. I want to thank the prosecutors and trial attorneys who made this year's collections possible, and I want to emphasize that the department remains committed to the well-being of our people and our nation.”
Below is a summary of a case in which the U.S. Attorney’s Office for the District of Nevada collected a significant amount of money during FY 2016.
In June 2016, Renown Health, a non-profit corporation which operates Renown Regional Medical Center and Renown South Meadows Medical Center in Reno, paid $5.9 million to the Department of Justice to resolve civil allegations of health care fraud to the Medicare system. The civil lawsuit alleged that Renown submitted false claims to the Medicare program for inpatient hospital services from June 1, 2006, through June 30, 2014.
The U.S. Attorneys’ Offices, along with the department’s litigating divisions, are responsible for enforcing and collecting civil and criminal debts owed to the U.S. and criminal debts owed to federal crime victims. The law requires defendants to pay restitution to victims of certain federal crimes who have suffered a physical injury or financial loss. While restitution is paid to the victim, criminal fines and felony assessments are paid to the department’s Crime Victims’ Fund, which distributes the funds to state victim compensation and victim assistance programs. Forfeited assets deposited into the Department of Justice Assets Forfeiture Fund are used to restore funds to crime victims and for a variety of law enforcement purposes.
The largest civil collections were from affirmative civil enforcement cases, in which the United States recovered government money lost to fraud or other misconduct or collected fines imposed on individuals and/or corporations for violations of federal health, safety, civil rights or environmental laws. In addition, civil debts were collected on behalf of several federal agencies, including the U.S. Department of Housing and Urban Development, Health and Human Services, Internal Revenue Service, Small Business Administration and Department of Education.
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Monroeville Resident Who Operated Fradulent Tax Preparation Business Sentenced to Four YearsRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced today that Arthur Leyon Penn, 39, of Monroeville, Alabama, was sentenced today by Senior U.S. District Judge Callie V. S. Granade to 48 months of imprisonment for aggravated identity theft in connection with tax fraud. The judge ordered that Penn undergo supervised release upon completing his prison term, face credit restrictions, pay $841,617.05 in restitution, and pay a $200 mandatory special assessment.
Penn led The Penn Agency LLC, a company based in Monroeville, Alabama that provided insurance and fraudulent tax preparation services. He co-owned The Penn Agency with his wife, co-defendant Oleavia Mitchell Penn, who operated another fraudulent tax preparation business, Quick Tax, in Camden, Alabama.
In January 2016, Arthur Penn and five co-defendants were indicted by the Federal Grand Jury for the Southern District of Alabama. The indictment alleged that between 2011 and 2015, Penn orchestrated a fraudulent tax scheme and sought personal financial gain by defrauding the Treasury Department through the preparation and filing of fraudulent federal tax returns. The scheme’s overarching goal was to maximize fraudulent tax refunds. To this end, Arthur Penn used various methods such as listing false dependents on tax returns, unlawfully acquiring individuals’ social security numbers through payments and theft, creating fictitious household business incomes, and fraudulently inflating or decreasing a client’s income or deductions to maximize the Earned Income Tax Credit. These techniques were used at both The Penn Agency and Quick Tax, as Arthur and Oleavia Penn trained employees on how to best prepare fraudulent tax returns. He and his wife charged upfront fees from taxpayer clients for initial meetings. They also generated fees through the use of tax preparation software. The Penns arranged to directly receive federal tax refunds and placed sizeable portions of the refund checks into bank accounts under their control before remitting the balance to their clients. Arthur Penn would sometimes steal money from his tax clients by keeping an extra portion of fraudulent tax refunds that were supposed to go to his clients.
On August 22, 2016, Arthur Penn pled guilty to two counts of aggravated identity theft in connection with the unlawful use of individuals’ social security numbers and the preparation and submission of fraudulent tax returns. That same day, Oleavia Penn also pleaded guilty before Senior Judge Granade to committing aggravated identity theft.
Later in August 2016, Arthur Penn was indicted by the Federal Grand Jury for the Southern District of Alabama on two counts of tampering with a witness in his tax fraud case. On December 14, 2016, before being sentenced in his tax fraud case, Arthur Penn pleaded guilty before Senior Judge Granade to one count of witness tampering. As part of his plea, he admitted to attempting to bribe a former employee at The Penn Agency to prevent her from testifying against him at trial in his tax fraud case.
Arthur Penn’s sentencing date for the witness tampering violation is January 13, 2017. He faces up to twenty years imprisonment for the offense. Oleavia Penn’s sentencing date in the tax fraud case is March 15, 2017.
The tax fraud and witness tampering cases were investigated by the Federal Bureau of Investigation, the Internal Revenue Service, Criminal Investigation, and the 35th Judicial Circuit Task Force in Monroeville, Alabama. The cases were prosecuted by Assistant United States Attorneys Sinan Kalayoglu and Greg Bordenkircher.
Monroe County Man Sentenced to 33 Months in Prison for Heroin TraffickingRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jabril Greggs, age 26, of Tobyhanna, Pennsylvania, was sentenced on December 12, 2016, by United States District Court Judge Malachy E. Mannion in Scranton, to serve 33 months in prison for distributing heroin.
According to United States Attorney Bruce D. Brandler, Greggs admitted to selling heroin during July 2014, and in April and May of 2015, in the Monroe County area. Greggs admitted to distributing between 80 and 100 grams of heroin, which is equivalent to between 3,000 and 4,000 retail bags of heroin. Greggs pleaded guilty in September 2016.
In rejecting the defendant’s request to be sentenced below the advisory guideline range, Judge Mannion noted the great harm that distributors of heroin were inflicting on our communities.
Judge Mannion also ordered Greggs to be placed on two years of supervised release following his prison sentence, and to pay a special assessment of $100.
Greggs was indicted by a federal grand jury in October 2014, as a result of an investigation by the Drug Enforcement Administration, the Pennsylvania State Police, and Pocono Mountain Regional Police. Assistant U.S. 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.
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Middle Tennessee Podiatrist Pleads Guilty to Health Care FraudRead the Press Release
Dr. Charlton Peter, 59, of Lewisburg, Tenn., pleaded guilty yesterday to two counts of health care fraud, announced David Rivera, United States Attorney for the Middle District of Tennessee.
In a plea hearing before U.S. District Judge Waverly D. Crenshaw, Jr., Peter, a podiatrist, admitted that he submitted claims to Medicare and Medicaid seeking reimbursement for procedures that were never performed. In particular, Peter admitted that he submitted false claims seeking reimbursement for performing nail avulsions, a procedure covered by Medicare, when he merely provided his patients with routine foot care, including clipping patients’ toenails, which is not covered by Medicare.
If convicted, Peter faces up to 10 years in prison and a $250,000 fine for each count of health care fraud. Peter will also be ordered to forfeit $122,691 representing the proceeds from his fraud. Peter will be sentenced by Judge Crenshaw on March 3, 2017and his sentence will be imposed by the Court after consideration of the U.S. Sentencing Guidelines and applicable federal statutes.
The case was investigated by the Department of Health and Human Services – Office of Inspector General, the Tennessee Bureau of Investigation Medicaid Fraud Unit. The United States is represented by Assistant U.S. Attorney Thomas J. Jaworski.
Mexican national living in Canton indicted on drug trafficking and immigration chargesRead the Press Release
A Mexican national living in Canton was indicted on cocaine trafficking and immigration charges, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
A federal grand jury returned a five-count indictment charging Rodolfo Trejo, aka Rudy, 38, with distribution of cocaine, possession with intent to distribute cocaine, and illegal re-entry following deportation.
Counts 1 through 3 of the indictment allege that Trejo distributed cocaine on or about August 17, September 7 and September 22, 2016.
Count 4 of the indictment alleges that Trejo possessed with the intent to distribute cocaine on or about December 1, 2016.
Count 5 of the indictment alleges that Trejo, a citizen of Mexico and an alien, who after previously having been removed and deported from the United States in 2013, to Mexico, was found illegally back in the United States.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Department of Homeland Security, Immigration and Customs Enforcement and the Canton Police Department. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Mercer County Man Sentenced for Social Security Benefits FraudRead the Press Release
Erie, Pa. - A resident of Carlton, Pennsylvania, has been sentenced in federal court to 5 years probation, 6 months home detention and ordered to make restitution in the amount of $92,928.00 on his conviction of theft of government property and social security fraud, Acting United States Attorney Soo C. Song announced today.
Senior United States District Judge Gustave Diamond imposed the sentence on David James Dean, 40, of Carlton, Pennsylvania.
According to information presented to the court, from on or about August 9, 2006 to on or about May 18, 2015, Dean knowingly stole approximately $28,097 in Social Security Survivor’s Benefits payments which he knew he was not entitled. In addition, from on or about August 9, 2006 to on or about July 8, 2015, after applying to receive SSA Child’s Insurance Benefits on behalf of a minor child, Dean knowingly and willfully converted those benefits to his own use. By doing so, Dean received payments, valuing approximately $65,175, to which he knew he was not entitled.
Assistant United States Attorney Marshall J. Piccinini prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Social Security Administration, Office of Inspector General for the investigation leading to the successful prosecution of Dean.
McKees Rocks Man Sentenced for Fraud SchemeRead the Press Release
PITTSBURGH – An Allegheny County resident has been sentenced in federal court to imprisoned for a total term of one day, three years supervised release and restitution in the amount of $63,752.73 on his conviction of access device fraud, Acting United States Attorney Soo C. Song announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Joseph E. Placzek, 25 of McKees Rocks, PA.
According to the information presented to the court, Placzek opened credit cards in the name of another person at Capital One bank, which he used to purchase cruise vacations at Carnival Cruise, as well as merchandise at Amazon.com and Home Depot, among other retailers.
Assistant United States Attorney Gregory C. Melucci prosecuted this case on behalf of the government.
The Western Pennsylvania Financial Crimes Task Force (WPFCTF), conducted the investigation that led to the successful prosecution of this defendant. The WPFCTF was established as a collaborative, multi-agency effort to effectively combat financial crimes, including identity fraud, in Western Pennsylvania. Partnering in this effort are the United States Attorney's Office for the Western District of Pennsylvania, the United States Secret Service, the United States Postal Inspection Service, the Department of Homeland Security, the Allegheny County District Attorney's Office, the Allegheny County Police Department, the City of Pittsburgh Bureau of Police and the Pennsylvania State Police.
Maryland Woman Sentenced to a Year in Prison for Embezzlement Scheme Against Her EmployerRead the Press Release
WASHINGTON – Stacey Walters, 38, a former accountant at Howard University, was sentenced today to a year and a day in prison for a scheme in which she embezzled over $105,000 from her employer, U.S. Attorney Channing D. Phillips announced.
Walters, of Indian Head, Md., pled guilty in September 2016, in the U.S. District Court for the District of Columbia, to a charge of wire fraud. She was sentenced by the Honorable James E. Boasberg. Upon completion of her prison term, she will be placed on three years of supervised release. She also was ordered to pay $57,586 in restitution.
According to the government’s evidence, Walters was hired at Howard University in July 2010. Her responsibilities included preparing financial reports and performing general accounting and budget functions. She was terminated from the job in October 2011.
From December 2010 through May of 2011, according to the government’s evidence, Walters submitted a total of 13 forms authorizing payment from her employer to various vendors. However, she fraudulently listed the banking information for her own account on one of the forms, causing $9,388 to be transferred to her own account. In addition, Walters listed banking information for another individual, Shantel Brown, on 12 other forms, causing $96,398 to be transferred to Brown’s account. At the direction of Walters, Brown transferred half of the funds she had fraudulently received from Howard University to Walters.
Brown, 34, of Waldorf, Md., pled guilty on Feb. 22, 2016 to one count of conspiracy to commit wire fraud and one count of wire fraud. She was sentenced on Nov. 1, 2016, also by Judge Boasberg, to a year and a day of incarceration, to be followed by three years of supervised release. She also was ordered to pay restitution in the amount of $128,072. In her guilty plea, Brown admitted taking part in the fraud against Howard University. She also admitted to carrying out a separate scheme from November 2011 through March 2013 in which she stole $79,874 from her employer, Defenders of Wildlife; Brown worked for the non-profit organization as a payroll/compliance specialist at the time.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department (MPD), as well as Criminal Investigator Stephen Cohen of the U.S. Attorney’s Office. He also expressed appreciation for the assistance provided by Assistant U.S. Attorney Thomas Swanton, Criminal Investigator Juan Juarez, and Paralegal Specialists Jessica Mundi, Christopher Toms, and Aisha Keys, all of the U.S. Attorney’s Office. Finally, he acknowledged the work of Assistant U.S. Attorney Teresa A. Howie, who prosecuted both cases.
Manhattan U.S. Attorney Announces Arrest of Defendant Charged with Participation in Massive Hacks into U.S. Financial InstitutionsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), and David E. Beach, Special Agent in Charge of the U.S. Secret Service New York Field Office (“USSS”), announced that JOSHUA SAMUEL AARON, a/k/a “Mike Shields,” was arrested earlier today at John F. Kennedy International Airport. AARON, along with defendant Gery Shalon, a/k/a “Garri Shalelashvili,” a/k/a “Gabriel,” a/k/a “Gabi,” a/k/a “Phillipe Mousset,” a/k/a “Christopher Engeham,” is charged with crimes arising out of Shalon’s and AARON’s orchestration of massive computer hacking crimes against U.S. financial institutions, brokerage firms, and financial news publishers, including the largest theft of customer data from a U.S. financial institution in history. Shalon and AARON are charged with committing these crimes in furtherance of securities market manipulation schemes that Shalon and AARON perpetrated with defendant Ziv Orenstein, a/k/a “Aviv Stein,” a/k/a “John Avery.” AARON will be presented this afternoon in Manhattan federal court before U.S. Magistrate Judge James C. Francis IV. AARON is expected to appear before United States District Judge Laura Taylor Swain tomorrow at 10:30 a.m. The charges against AARON, Shalon, and Orenstein were made public on November 10, 2015. (To read the November 10, 2015, press release, click here.)
Manhattan U.S. Attorney Preet Bharara said: “Joshua Samuel Aaron allegedly worked to hack into the networks of dozens of American companies, ultimately leading to the largest theft of personal information from U.S. financial institutions ever. For pursuing what we have called ‘hacking as a business model,’ and thanks to the efforts of the FBI and the U.S. Secret Service, Aaron will now join his co-defendants to face justice in a Manhattan federal courtroom.”
FBI Assistant Director William F. Sweeney Jr. said: “Today, Josh Aaron was taken into the custody of the FBI to face charges filed against him more than a year and a half ago for his alleged role orchestrating a massive computer hack into U.S. financial institutions, brokerage firms, and financial news publishers and for his role in a multimillion-dollar stock manipulation scheme.”
U.S. Secret Service Special Agent in Charge David E. Beach said: “The arrest of this alleged transnational cybercriminal illustrates the dedication of the Secret Service and reach of the U.S. Government in the disruption and dismantling of global criminal networks. The precedent set by this successful United States deportation should serve as a warning to criminals that the Secret Service will relentlessly investigate, detect, and defend the Nation’s financial infrastructure both domestically and internationally.”
Shalon and Orenstein were arrested by Israeli authorities in July 2015, and were extradited from Israel in June 2016.
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AARON, 32, a U.S. citizen who had been residing in Moscow, Russia, is charged in a Superseding Indictment, S1 15 Cr. 333 (LTS), along with his co-defendants with the following offenses, which carry the maximum prison terms listed below. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by the judge.
Count
Defendants
Charge
Maximum Prison Term
One
SHALON and AARON
Conspiracy to commit computer hacking
5 years
Two
SHALON and AARON
Computer hacking
5 years
Three
SHALON and AARON
Computer hacking
5 years
Four
SHALON, AARON, and ORENSTEIN
Conspiracy to commit securities fraud
5 years
Five
SHALON, AARON, and ORENSTEIN
Conspiracy to commit wire fraud: Securities Market Manipulation Scheme
20 years
Six
SHALON, AARON, and ORENSTEIN
Securities fraud
20 years
Seven
SHALON, AARON, and ORENSTEIN
Eight
SHALON, AARON, and ORENSTEIN
Nine
SHALON, AARON, and ORENSTEIN
Ten
SHALON, AARON, and ORENSTEIN
Eleven
SHALON, AARON, and ORENSTEIN
Twelve
SHALON, AARON, and ORENSTEIN
Thirteen
SHALON, AARON, and ORENSTEIN
Wire fraud
20 years
Fourteen
SHALON, AARON, and ORENSTEIN
Conspiracy to commit identification document fraud
15 years
Fifteen
SHALON, AARON, and ORENSTEIN
Aggravated identity theft
Mandatory 2 years
Twenty-Two
SHALON, AARON, and ORENSTEIN
Conspiracy to commit money laundering: Securities Market Manipulation Scheme
20 years
Mr. Bharara praised the investigative work of the FBI and the United States Secret Service, and expressed his sincere gratitude to the Office of the State Attorney of the Israel Ministry of Justice’s Department of International Affairs and the Israel National Police, including its Cyber Unit - Lahav 433, for their support and assistance with the investigation. He also thanked the Securities and Exchange Commission, Immigration and Customs Enforcement - Homeland Security Investigations, the Financial Industry Regulatory Authority, the National Credit Union Administration, the Office of International Affairs of the U.S. Department of Justice, and the Financial Services Information Sharing and Analysis Center, which significantly aided the investigation by facilitating information-sharing among the victim institutions.
The prosecution of this case is being overseen by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorneys Eun Young Choi, Noah Solowiejczyk, and Sarah Lai are in charge of the prosecution. Assistant U.S. Attorney Daniel Tracer of the Office’s Money Laundering and Asset Forfeiture Unit is in charge of the forfeiture aspects of the case.
The charges contained in the Superseding Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
Man Who Distributed Drugs That Caused Overdose Death of Pregnant Woman in Fayette County Sentenced to Thirty YearsRead the Press Release
LEXINGTON, Ky. – A Lexington man, who pled guilty to distributing fentanyl which caused the overdose death of a pregnant Fayette County woman, has been sentenced to 30 years in federal prison.
On Tuesday, Senior U.S. District Judge Joseph Hood sentenced Fred Rebmann, 31, to 360 months’ imprisonment for distributing a controlled substance that resulted in death. Under federal law, Rebmann must serve at least 85 percent of his sentence.
Rebmann previously admitted that, in February of this year, he sold the pregnant woman a controlled substance that was believed to be heroin. Instead, however, the drug was fentanyl, an extremely powerful opioid that can be as much as 50 times more potent than heroin. She consumed the drugs and died.
Toxicology reports confirmed that she had five times the therapeutic dose of fentanyl in her system and no traces of heroin or other controlled substances. The report also concluded that, had it not been for the fentanyl, she would not have died.
“This case demonstrates why we use tough federal laws to prosecute drug dealers who sell poison that kills,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “For less than $100, the Defendant sold an obviously pregnant woman one of the deadliest drugs commonly available on our streets. The tragic result was all too predictable. Moreover, it is unacceptable, and we will use every prosecutorial tool available to us in order to protect our community from this predatory criminal conduct.”
U.S. Attorney Harvey, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, and Mark Barnard, Chief of Police, Lexington Police Department, jointly announced the sentence.
The investigation was conducted by DEA and the Lexington Police Department. Assistant U.S. Attorney Todd Bradbury prosecuted this case on behalf of the federal government.
Kent man indicted for having shotgun after domestic violence convictionRead the Press Release
A Kent man convicted of domestic violence was charged with illegally having a firearm, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
A federal grand jury returned a one-count indictment charging Cecil J. Rotnem, 29, with possession of a firearm by a person convicted of misdemeanor domestic violence.
The indictment alleges Rotnem possessed a Mossberg, model 500A, 12 gauge shotgun on or about July 5, 2016 through July 11, 2016, despite having been previously convicted of a misdemeanor crime of domestic violence, in the Portage County Municipal Court, in 2009.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Kalamazoo, Michigan, Man Convicted of Sex Trafficking and Interstate Transportation for ProstitutionRead the Press Release
David Q. Givhan, aka “Premier,” 34, of Kalamazoo, Michigan, was convicted late yesterday by a jury of one count of sex trafficking and three counts of interstate transportation for prostitution.
The verdict was announced by Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky; and Special Agent in Charge Amy S. Hess of the FBI’s Louisville Division.
According to evidence and testimony presented at trial, Givhan prostituted three women for his profit at various times between October 2014 and April 2015 and transported them from Michigan to Kentucky and other states for the purpose of prostitution. He used force, fraud and coercion to compel one of the women to prostitute for him between October 2014 and March 2015. He initially recruited the woman – a single mother of three – using false promises of steady income and a better life. However, once she began earning money, he kept it all. Givhan required her to earn $1,000 a day and beat other women who did not meet their quota in front of her. Givhan also required her to tattoo his alias, “Premier,” on her neck and threatened to hurt or kill her or her family if she refused to continue prostituting for him. When she objected to his demand that she perform particular acts for customers, he sexually assaulted her. At one point, the woman tried to leave Givhan, but he found her, placed her in a chokehold and told her it was time to return to work. On a trip to Florida, he compelled her to continue prostituting for his profit, even after she sought medical attention for severe pain and bleeding. Shortly thereafter, she managed to escape by enlisting the help of a hotel clerk and her mother.
“Sex trafficking offends the basic standards of human decency and dignity that form the bedrock of a civilized society,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will continue to vigorously prosecute the unconscionable crime of sex trafficking and work to vindicate the rights of vulnerable victims.”
“Forcible sex trafficking is effectively a form of modern day slavery,” said U.S. Attorney Kuhn. “Victims, often vulnerable women, are terrorized by violence, threats and other coercion. This swift verdict should be a strong message that sex trafficking will not be tolerated by my Office and the Department of Justice.”
“Protecting the victims of human trafficking is one of the FBI's top priorities,” said Special Agent in Charge Hess. “We work closely with community leaders and our law enforcement partners to proactively target predators like the defendant who are involved in human trafficking. Our agents and task force officers are committed to addressing every such allegation we receive. We will continue to work tirelessly to protect and rescue the victims who are unable to defend themselves.”After deliberating for under five hours, the jury found the defendant guilty on all four counts. A fifth count was dismissed during trial. Sentencing is scheduled for March 14, 2017. The defendant faces a minimum sentence of 15 years in prison and a maximum sentence of life in prison.
The case was investigated by the FBI’s Louisville Division and Louisville Metro Police Department. The case is being prosecuted by Assistant U.S. Attorney Amanda E. Gregory of the Western District of Kentucky and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
Kalamazoo, Michigan, Man Convicted of Sex Trafficking and Interstate Transportation for ProstitutionRead the Press Release
Jury deliberated under five hours before finding David Givhan guilty of all charges
LOUISVILLE, Ky. – David Q. Givhan, aka “Premier,” 34, of Kalamazoo, Michigan, was convicted late yesterday by a jury of one count of sex trafficking and three counts of interstate transportation for prostitution.
The verdict was announced by U.S. Attorney John E. Kuhn Jr. of the Western District of Kentucky; Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division; and Special Agent in Charge Amy S. Hess of the FBI’s Louisville Division.
“Forcible sex trafficking is effectively a form of modern day slavery,” stated United States Attorney John Kuhn. “Victims, often vulnerable women, are terrorized by violence, threats and other coercion. This swift verdict should be a strong message that sex trafficking will not be tolerated by my Office and the Department of Justice.”
“Sex trafficking offends the basic standards of human decency and dignity that form the bedrock of a civilized society,” said Principal Deputy Assistant Attorney General Gupta. “The Justice Department will continue to vigorously prosecute the unconscionable crime of sex trafficking and work tirelessly to vindicate the rights of vulnerable victims.”
“Protecting the victims of human trafficking is one of the FBI's top priorities,” said Special Agent in Charge Amy S. Hess of the FBI’s Louisville Office. “We work closely with community leaders and our law enforcement partners to proactively target predators like the defendant who are involved in human trafficking. Our agents and task force officers are committed to addressing every such allegation we receive. We will continue to work tirelessly to protect and rescue the victims who are unable to defend themselves.”
According to evidence and testimony presented at trial, Givhan prostituted three women for his profit at various times between October 2014 and April 2015 and transported them from Michigan to Kentucky and other states for the purpose of prostitution. He used force, fraud and coercion to compel one of the women to prostitute for him between October 2014 and March 2015. He initially recruited the woman – a single mother of three – using false promises of steady income and a better life. However, once she began earning money, he kept it all. Givhan required her to earn $1,000 a day and beat other women in front of her. Givhan also required her to tattoo his alias, “Premier,” on her neck and threatened to hurt or kill her or her family if she refused to continue prostituting for him. When she objected to his demand that she perform particular acts for customers, he sexually assaulted her. At one point, the woman tried to leave Givhan, but he found her and brought her back. On a trip to Florida, he compelled her to continue prostituting for his profit, even after she sought medical attention for severe pain and bleeding. Shortly thereafter, she managed to escape by enlisting the help of a hotel clerk and her mother.
After deliberating for under five hours, the jury found the defendant guilty on all four counts. A fifth count was dismissed during trial. Givhan remains in federal custody awaiting formal sentencing before United States District Judge David J. Hale on date March 14, 2017 at 11a.m. in Louisville. The defendant faces a minimum sentence of 15 years in prison and a maximum sentence of life in prison.
The investigation was opened when Louisville Metro Police Department officers encountered a woman Givhan had transported from Michigan to Louisville, Kentucky, during a prostitution sting coinciding with the Kentucky Derby.
The case was investigated by the FBI’s Louisville Division and Louisville Metro Police Department. The case is being prosecuted by Assistant United States Attorney Amanda E. Gregory of the Western District of Kentucky and Trial Attorney William Nolan of the Civil Rights Division’s Human Trafficking Prosecution Unit.
KC Man Sentenced to 15 Years for Armed Bank RobberyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man who was tackled by a security guard while making his escape was sentenced in federal court today for armed bank robbery.
Sidney A. Williams, 63, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays to 15 years in federal prison without parole.
Williams, who pleaded guilty on July 6, 2016, admitted that he stole $5,493 at gunpoint from Bank Midwest, 7904 Ward Parkway, Kansas City, Mo., on Nov. 10, 2015.
According to court documents, Williams was wearing a black ski mask and black gloves when he entered the bank and ordered everyone in the lobby to the ground. Williams entered the security guard’s office, grabbed his shirt and forced him to the ground. Williams pointed a .38-caliber revolver at bank employees, including the security guard and the assistant branch manager. Two bank employees placed money into a blue canvas grocery bag that Williams was carrying.
When Williams ran out the door of the bank after the robbery, the security guard chased after him. The security guard tackled Williams across the street from the bank and a struggle ensued. Williams pointed the revolver at the security guard before he was able to disarm him. The security guard received assistance from a passerby in subduing Williams. Law enforcement officers recovered a blue canvas bag of cash, the handgun and a black ski mask from the area where Williams was taken into custody.
This case was prosecuted by Assistant U.S. Attorney Patrick C. Edwards. It was investigated by the FBI and the Kansas City, Mo., Police Department.
KC Man Sentenced for Armed Robbery ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for his role in a conspiracy to commit armed robbery.
Jamal L. Vassie, 27, of Kansas City, was sentenced by U.S. District Judge Stephen R. Bough to 11 years in federal prison without parole.
On Aug. 16, 2016, Vassie was convicted at trial of conspiracy to commit robbery, the armed robbery of Public Storage at 9820 Holmes, Kansas City, Mo., and possession of a firearm in furtherance of a crime of violence.
Vassie is the third defendant to be sentenced in this case. Randolph E. Wells, 31, of Kansas City, Mo., was sentenced on Sept. 18, 2015, to 10 years in federal prison without parole. Gary S. Dorch, 23, of Kansas City, Mo., was sentenced on July 22, 2015, to five years in federal prison without parole. Sergio A. Rascoe, 30, of Kansas City, Mo., pleaded guilty and awaits sentencing.
According to testimony during the trial, Vassie initially told his co-conspirators that he wanted to rob a bank. When Rascoe indicated he was uncomfortable robbing a bank with Dorch, whom he did not know, the decision was made to “audition” Dorch with a different robbery. Vassie and his co-conspirators drove to a car wash, where Rascoe pointed a firearm at a victim and demanded she turn over her car keys. Rascoe drove off in the victim’s vehicle, a Chrysler Sebring.
Rascoe and Dorch then used the stolen vehicle to commit the armed robbery at Public Storage. During the robbery, Dorch went into Public Storage and held the clerk at gunpoint while he demanded cash, the clerk’s wallet and the clerk’s cellphone.
Vassie and Wells were waiting a short distance away during the robbery, so that they could be available to pick up Rascoe and Dorch if they were involved in a pursuit with the police and had to abandon the stolen vehicle. Vassie and Wells were apprehended immediately after the robbery occurred, while Rascoe and Dorch led police officers on an extended chase through residential neighborhoods. Rascoe, who was driving the stolen vehicle, collided with a truck and they were both apprehended.
According to court documents, Vassie, Wells, and Rascoe participated in the robbery of five hotels, two storage facilities, a cellphone store, a bank, and three carjackings. Vassie had been on parole for four months at the time of this offense for a prior state conviction for the armed robbery of a Papa John’s Pizza.
This case is being prosecuted by Assistant U.S. Attorneys Patrick C. Edwards and Matthew A. Moeder. It was investigated by the FBI, the Kansas City, Mo., Police Department and the Independence, Mo., Police Department.