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13 January 2017
Construction Company Owner, KC Veteran Indicted in $13.8 Million 'Rent-A-Vet' SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that the former owner of a local construction company and a Kansas City, Mo., veteran were indicted by a federal grand jury today for their roles in a “rent-a-vet” scheme to fraudulently obtain more than $13.8 million in federal contracts.
Jeffrey K. Wilson, 51, of the Village of Loch Lloyd in Belton, Mo., Paul R. Salavitch, 56, of Kansas City, Mo., and Patriot Company, Inc., a business located in Kansas City, Mo., were charged in an eight-count indictment returned by a federal grand jury in Kansas City, Mo.
Today’s indictment alleges that Wilson, Salavitch and the Patriot Company participated in a conspiracy to defraud the government by falsely representing Patriot Company as a veteran-owned or service-disabled veteran-owned small business in order to fraudulently obtain approximately $13.8 million in federal government construction contracts for work in nine states.
According to the indictment, Patriot Company was a pass-through or front company for a Greenwood, Mo., construction company owned by Wilson during the scheme. Conspirators allegedly used Salavitch’s veteran and service-disabled veteran status in a “rent-a-vet” scheme to bid on at least 20 government contracts and receive approximately $13.8 million to which Patriot Company would not have otherwise been entitled to receive because those contracts were set-aside exclusively for legitimate veteran-owned or service-disabled veteran-owned small businesses. As a result of the fraud scheme, legitimate veteran owned and run businesses were not awarded these contracts.
Today’s indictments cites 20 contracts with the U.S. Department of Veterans Affairs and the U.S. Army, totaling $13,819,522, which allegedly were fraudulently obtained by Wilson, Salavitch and Patriot Company. The contracts, which ranged as high as $4.3 million, included construction projects in Missouri, South Dakota, Texas, Nebraska Oklahoma, Michigan, Indiana, Tennessee, Iowa, Illinois and North Dakota.
According to the indictment, Salavitch, a service-disabled veteran, worked full-time as a federal employee with the Department of Defense in Leavenworth, Kan., and did not work full time for Patriot Company. Salavitch nominally served as president of Patriot Company from July 14, 2005, to April 1, 2014. Salavitch did not actively control the day-to-day management, daily operation or long-term decision making of Patriot Company. Salavitch never managed a construction company prior to his involvement with Patriot Company, the indictment says, and he had limited government contracting experience.
For example, the indictment cites an e-mail exchange in which Wilson discusses leasing an office for Patriot Company and writes, “I would like for you to get a thing or two from Paul (Salavitch) to put in that office that is personal. Anything from his military. Any plaques, or US ARMY stuff or anything that if one stepped into it, it would look and feel like Patriot …” The indictment also refers to a series of e-mails in which Salavitch was still contemplating the start date of his work with Patriot Company after the firm had already obtained 10 of the government contracts.
During the fraud scheme, the indictment says, Wilson wired $449,321 as down payment for his Village of Loch Lloyd home purchase, of which $250,000 originated from Patriot Company’s bank account. Wilson financed the balance of the purchase price with funds from the sale of his previous home and a $240,000 mortgage. Wilson used $225,000 in Patriot Company funds, the indictment says, to pay off the mortgage.
Wilson used $175,000 in Patriot Company funds for the purchase of a residence in Mesa, Ariz., the indictment says. Wilson allegedly also used $400,000 of Patriot Company funds to pay two annual premiums for life insurance policies.
In addition to the conspiracy, Wilson, Salavitch and Patriot Company are charged with four counts of major government program fraud. Wilson is also charged with one count of wire fraud and two counts of money laundering.
Today’s indictment also contains forfeiture allegations, which would require Wilson and Salavitch to forfeit to the government any property derived from the proceeds of the fraud scheme, including $2,152,189 that has been seized by law enforcement from various financial accounts, Wilson’s residences in Village of Loch Lloyd and Mesa as part of the money judgment of $13,819,522.
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. Attorneys Jane Pansing Brown and Stacey Perkins Rock. It was investigated by the Department of Veterans Affairs – Office of Inspector General – Criminal Investigation Division and the General Services Administration – Office of Inspector General.
College Student Pleads Guilty to Developing Malicious SoftwareRead the Press Release
ALEXANDRIA, Va. – Zachary Shames, 21, of Great Falls, pleaded guilty today to charges of aiding and abetting computer intrusions.
According to the statement of facts filed with the plea agreement, Shames developed malicious software, known as a keylogger, that allowed users to steal sensitive information, such a passwords and banking credentials, from a victim’s computer. Shames sold his keylogger to over 3,000 users who, in turn, used it to infect over 16,000 victim computers. Shames developed the initial versions of his keylogger while attending high school in Northern Virginia, and continued to modify and market the illegal product from his college dorm room.
Shames faces a maximum penalty of 10 years in prison and will be sentenced on June 16. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the Court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by U.S. District Judge Liam O’Grady. The case is being prosecuted by Assistant U.S. Attorney Kellen S. Dwyer and Senior Counsel Ryan K. Dickey of the Criminal Division’s Computer Crime and Intellectual Property Section.
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. 1:16-CR-289.
Chilean Chemicals and Mining Company Agrees to Pay More Than $15 Million to Resolve Foreign Corrupt Practices Act ChargesRead the Press Release
Chilean chemicals and mining company Sociedad Química y Minera de Chile (SQM) agreed to pay a criminal penalty of more than $15 million in connection with payments to politically-connected individuals in Chile in violation of the Foreign Corrupt Practices Act (FCPA), announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division.
According to the company’s admissions, SQM knowingly failed to implement internal controls sufficient to ensure that payments from a fund under the control of one of its officers and high-level executives were made for services received and in compliance with Chilean law. Between 2008 and 2015, SQM made donations to dozens of foundations controlled by or closely tied to Chilean politicians. During this period, for example, SQM funneled approximately $630,000 to foundations controlled by a Chilean official with influence over the government’s mining plans in Chile, a key segment of SQM’s business.
SQM also admitted to falsifying its books and records to conceal payments to vendors associated with politicians, logging them as consulting and professional services SQM never received. For example, in 2009, SQM paid approximately $11,000 to the sister-in-law of a Chilean official, recording the payment in SQM’s books as a payment for services received, despite the fact that the official’s sister-in-law submitted the false invoice solely to disguise payment to a Chilean senatorial campaign.
In total, SQM admitted having paid nearly $15 million between 2008 and 2015 to vendors despite having no evidence any goods or services were actually received.
SQM entered into a deferred prosecution agreement (DPA) in connection with a criminal information filed today in the District of Columbia, charging the company with one count of failing to implement internal controls and one count of falsifying its books and records. Pursuant to its agreement with the department, SQM agreed to pay a criminal penalty of $15,487,500; continue to cooperate with the department’s investigation; enhance its compliance program; implement rigorous internal controls; and retain an independent corporate compliance monitor for a term of two years, with a third year of self-reporting to occur thereafter.
The Criminal Division’s Fraud Section reached this resolution based on a number of factors, including the fact that SQM did not voluntarily disclosure the FCPA violations, but did cooperate with the department’s investigation after news of Chilean prosecutors’ investigation of the company surfaced in media reports. SQM received a 25 percent reduction off the low end of the applicable U.S. Sentencing Guidelines fine range because of its full cooperation and substantial and ongoing remediation. Because many of SQM’s compliance enhancements were more recent, and therefore have been subjected to a relatively short period of testing, the DPA imposes an independent compliance monitor. However, due to the company’s size and risk profile, as well as the enhancements the company has already made, the term of the monitor will be two years and the company will be permitted SQM to self-report for the final year of the agreement.
In a related matter, SQM reached a settlement on Jan. 13, 2017, with the Securities and Exchange Commission (SEC), pursuant to which it will pay a $15 million civil monetary penalty.
Trial Attorneys Lorinda Laryea and Jonathan Robell of the Criminal Division’s Fraud Section prosecuted the case, which was previously handled by former Fraud Section Trial Attorney John-Alex Romano.
The Fraud Section appreciates the significant cooperation provided by the SEC in this matter. The Criminal Division’s Office of International Affairs and the FBI’s International Operations Division also provided assistance during the investigation.
The Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement matters can be found at www.justice.gov/criminal/fraud/fcpa.
Chesapeake Felon Sentenced for Possessing a FirearmRead the Press Release
NORFOLK, Va. – Raymond Antoine Wyche, 25, of Chesapeake, was sentenced today to 57 months in prison for being a convicted felon in possession of a firearm.
Wyche pleaded guilty on June 27, 2016. According to court documents, Wyche was wanted for the malicious wounding of two victims who were shot on Greenleaf Street in Norfolk. After law enforcement located Wyche at a motel, Wyche got into a car and was arrested with a loaded .40 caliber pistol. Wyche was prohibited from possessing a firearm due to being a previously convicted of felony drug charges. Ballistic tests proved that the gun Wyche possessed was used in the shooting of the two victims on Greenleaf Street. Wyche has been affiliated with gangs and has been charged in several other shootings, but the cases were all dismissed when the victims refused to cooperate.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division, made the announcement after sentencing by U.S. District Judge Mark S. Davis. Assistant U.S. Attorneys Bill Muhr and V. Kathleen Dougherty 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. 2:15-cr-165.
Charlottesville Man Who Ran from Police Sentenced on Federal Gun ChargeRead the Press Release
Charlottesville, VIRGINIA – A previously convicted felon, who ran from Charlottesville police while illegally possessing a firearm, was sentenced today in the United States District Court for the Western District of Virginia in Charlottesville on a federal gun charge, Acting United States Attorney Rick A. Mountcastle announced.
Tory Alexander Thomas, 33, of Charlottesville, Va., previously pled guilty to one count of being a convicted felon illegally in possession of a firearm. Today in United States District Court, Thomas was sentenced to 30 months in federal prison and three years of supervised release thereafter.
According to evidence presented at a previous hearing by Assistant United States Attorney Ronald M. Huber, on or about May 12, 2016, officers with the Charlottesville Police Department observed the defendant sitting in the passenger seat of a parked vehicle in the parking lot of Blue Ridge Commons. The officers observed the smell of marijuana and approached Thomas in the vehicle. After initially responding to the officers’ commands, Thomas eventually ran from the officers, who observed him throw something from his waistband as he ran away. After locating and arresting Thomas, a detective with the Charlottesville City Police Department located a Diamondback DB380 .380 handgun underneath a bush nearby. The gun was loaded with a round in the chamber. Thomas later admitted in federal court to possessing the gun and throwing it under the bush as he ran from police.
The investigation of the case was conducted by Charlottesville City Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Charlottesville City Commonwealth’s Attorney’s Office. Assistant United States Attorney Ronald M. Huber prosecuted the case for the United States.
Brooklyn Man Charged with Scaming Lowe’s Out of Millions of DollarsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. – Acting U.S. Attorney James P. Kennedy, Jr. announced today that Kenneth Cassidy, 50, of Brooklyn, NY, was arrested and charged by criminal complaint with wire fraud. The charge carries a maximum penalty of 20 years in prison and a $250,000 fine.
Assistant U.S. Attorney Aaron J. Mango, who is handling the case, stated that according to the complaint, between June 12, 2012 and December 21, 2015, the defendant opened approximately 117 fraudulent Lowe's Accounts Receivable (LAR) accounts throughout the United States using counterfeit checks.
Once an account was opened, the defendant made fraudulent purchases of goods at Lowe’s until the funds were depleted or Lowe’s closed the account. Of the 117 accounts, three were opened at stores in the Western District of New York and purchases were made at stores throughout the Buffalo and Rochester areas. Although the criminal complaint indicates a total loss totaling $1,750,000, it is now believed that the loss amount is $2,800,000.
The defendant made an initial appearance this morning before U.S. Magistrate Judge Michael J. Roemer and is being held pending a detention hearing on January 18, 2017 at 11:30 a.m.
The complaint is the result of an investigation by the Internal Revenue Service, Criminal Investigation Division, under the direction of Kathy A. Enstrom, Acting Special Agent-in-Charge, New York Field Office, the New York State Police, under the direction of Major Robert C. Gregory, the U.S. Marshals Service, under the direction of Charles Salina, and Immigration and Customs Enforcement, Homeland security Investigations, under the direction of Special Agent-in-Charge James C. Spero,
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Barrio Azteca Gang Lieutenant Pleads Guilty to Racketeering ConspiracyRead the Press Release
A Barrio Azteca (BA) gang lieutenant pleaded guilty today for his participation in a racketeering and drug trafficking conspiracy.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Richard L. Durbin Jr. of the Western District of Texas; Special Agent in Charge Douglas Lindquist of the FBI’s El Paso, Texas, Office; and Special Agent in Charge Will Glaspy of the U.S. Drug Enforcement Administration (DEA) El Paso Division made the announcement.
Ricardo Valles De La Rosa (Valles), aka Chino, 52, of El Paso, pleaded guilty today before U.S. District Judge Kathleen Cardone of the Western District of Texas to racketeering conspiracy; conspiracy to distribute and possess with intent to distribute controlled substances; conspiracy to import heroin, cocaine and marijuana; and conspiracy to commit money laundering. As part of his plea, Valles agreed that he conspired to commit murder in a foreign country. Sentencing has been scheduled for March 23, 2017. Valles is one of 35 members and associates of the BA gang charged in a third superseding indictment unsealed in March 2011, with various counts of racketeering, murder, drug offenses, money laundering and obstruction of justice.
According to plea agreements and other court documents and information presented in court throughout this case, the BA gang began operating in the late 1980s as a violent prison gang and has expanded into a transnational criminal organization based in West Texas; Juarez, Mexico; and throughout state and federal prisons in the United States and Mexico. The gang has a militaristic command structure and includes captains, lieutenants, sergeants, soldiers and associates – all with the purpose of maintaining power and enriching its members and associates through drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder. The BA profits by importing heroin, cocaine and marijuana into the United States from Mexico. Gang members and associates also charge a “street tax” or “cuota” to businesses and criminals operating in their turf, which profits are used to funnel money into prison commissary accounts and to pay for defense lawyers or fines to support imprisoned BA members. The “cuota” profits are also reinvested into the organization to purchase drugs, guns and ammunition.
According to plea agreements by other defendants in this investigation, members and associates of the BA have engaged in a host of criminal activity committed since Jan. 1, 2003, ranging from drug trafficking, extortion and money laundering to kidnapping and homicides, including the March 13, 2010, murders in Juarez of a U.S. consulate employee and her husband, as well as the husband of another U.S. consulate employee. The BA killed these individuals because they were mistakenly believed to be rivals associated with the Joaquin “El Chapo” Guzman Drug Trafficking Organization.
According to admissions made in connection with his plea agreement, beginning in or around 1995, Valles became an associate of the BA while imprisoned at a Bureau of Prisons (BOP) facility, where he rose to the rank of sergeant. Following his release from the BOP facility and deportation to Juarez, in July 2007, Valles was promoted to lieutenant and placed in charge of prostitution and illegal after-hours alcohol sales in downtown Juarez, and also collected “cuota.” Additionally, Valles obtained law enforcement-related information from unauthorized sources on behalf of the BA, and would use that contact to obtain information regarding the arrests of BA members, the activities and locations of rival gang members and the results of hits carried out by the BA. Further, Valles maintained rosters of BA members in Juarez and was in charge of conducting daily roll-calls, as well as maintaining communications between the BA in Juarez and BA members who were in and out of prison in the United States.
In addition, Valles admitted that on March 13, 2010, upon instructions from a high-ranking BA member, Valles obtained the location of a specific vehicle and sent BA members to that location. Valles admitted that he was aware that he was assisting the other BA members to locate and commit crimes against the occupants of the vehicle, including murder. BA members subsequently located the vehicle and killed the driver, who was the husband of a U.S. Consulate employee.
Of the 35 defendants charged in this case, 33 have been apprehended, 25 of whom have pleaded guilty and one was found guilty at trial. Valles, Luis Hernandez Celis, aka Pac, and Alberto Nunez Payan, aka Fresa, were extradited from Mexico in October 2015.
Of the 35 defendants charged in this case, 33 have been apprehended, 25 of whom have pleaded guilty and one was found guilty at trial. Valles, Luis Hernandez Celis, aka Pac, and Alberto Nunez Payan, aka Fresa, were extradited from Mexico in October 2015.
FBI’s El Paso Field Office, Albuquerque Field Office (Las Cruces Resident Agency); DEA Juarez; and DEA El Paso investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement; U.S. Marshals Service; U.S. Customs and Border Protection; BOP; U.S. Diplomatic Security Service; Texas Department of Public Safety; Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, New Mexico, Sheriff’s Office; Las Cruces, New Mexico, Police Department; Southern New Mexico Correctional Facility; and Otero County Prison Facility New Mexico provided substantial assistance in the investigation.
Trial Attorneys Joseph A. Cooley and John C. Hanley of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Jay A. Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney John Gibson of the Western District of Texas-El Paso Division are prosecuting the case. The Criminal Division’s Office of International Affairs and Office of Enforcement Operations provided valuable assistance in this matter.
Armed D.C. Heroin Dealer Sentenced to 10 years for Drug CrimesRead the Press Release
ALEXANDRIA, Va. – Allen Christopher Morton, 53, of Washington, D.C., was sentenced today to 120 months in prison for distributing heroin and for possessing a firearm in furtherance of drug trafficking activity.
Morton pleaded guilty on Aug. 5, 2016. According to court documents, Morton was the leader of a three-man crew that distributed gram quantities of heroin for several years near Morton’s residence in Washington, D.C. Customers would drive to Morton’s residence and wait for Morton or another member of his crew to come outside and sell heroin. Morton and his crew would also drive to other locations in Washington, D.C. and Virginia to meet customers and distribute heroin. On some occasions, Morton or other members of his crew were armed with handguns. Over the course of the conspiracy, Morton’s crew distributed between 700 grams and 1 kilogram of heroin.
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 U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney J. Tyler McGaughey 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. 1:16-cr-175.
Amtrak Supervisor Admits Overbilling FraudRead the Press Release
NEWARK, N.J. – An Amtrak supervisor today admitted fraudulently overbilling Amtrak overtime and regular hours that he claimed to be working when he was actually not present at Amtrak work sites, U.S. Attorney Paul J. Fishman announced.
Donald Harper Sr., 47, of Somerset, New Jersey, pleaded guilty before U.S. Magistrate Judge Michael A. Hammer in Newark federal court to an information charging him with one count of converting to his own use federal government funds.
According to documents filed in this case and statements made in court:
Harper, who has been employed by Amtrak since February 1990, supervised 19 employees in a work gang on the Signals side of the Communications and Signals Department of Amtrak’s New York Division. During the summer of 2015, Amtrak employees under Harper’s supervision performed work on a project known as the Positive Train Control installation, which was a project, mandated by Congress, to put in place advanced technological components that could automatically stop or slow a train in order to prevent accidents or derailments. Between October 2014 and October 2015, Harper fraudulently billed Amtrak for 27.75 regular hours and 192.25 overtime hours when he was not actually present at Amtrak work sites, resulting in a loss to Amtrak of over $20,000.
The count to which Harper pleaded guilty carries a maximum potential penalty of one year in prison and a fine of $250,000, or twice the gain or loss resulting from the offense, whichever is greater. The terms of the plea agreement require Harper to make full restitution of $20,346. Sentencing is scheduled for April 20, 2017.
U.S. Attorney Fishman credited special agents of Amtrak’s Office of Inspector General, Office of Investigations, Philadelphia office, under the direction of Special Agent in Charge Robert J. Koons, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Mala Ahuja Harker of the U.S. Attorney’s Office Special Prosecutions Division.
Defense counsel: Linda Foster Esq., Assistant Federal Public Defender
Altamonte Springs Man Sentenced to Thirty Years for Sex TraffickingRead the Press Release
Orlando, Florida – U.S. District Judge Paul G. Byron today sentenced Rowy De Jesus Vasquez (26, Altamonte Springs) to 30 years in federal prison, to be followed by 20 years of supervised release, for sex trafficking a minor. The Court also ordered him to pay $23,040 in restitution to his victim, and to register as sex offender. He pleaded guilty on October 20, 2016.
According to the plea agreement, between April 24, 2015, and June 10, 2015, Vasquez caused a 14-year-old girl to engage in commercial sex acts for his financial gain and profit. He provided the minor with a cellphone to communicate with potential customers and to post advertisements for prostitution services on the Backpage website. Vasquez also set the prices for the sex acts and kept all of the proceeds.
This case was investigated by the Federal Bureau of Investigation, with assistance from the Metropolitan Bureau of Investigation. It was prosecuted by Assistant United States Attorney Ilianys Rivera Miranda.
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 (CEOS), 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.justice.gov/psc.
Agency Village Man Sentenced for Abusive Sexual Contact with a Person Incapable of ConsentRead the Press Release
United States Attorney Randolph J. Seiler announced that an Agency Village, South Dakota, man convicted of Abusive Sexual Contact with a Person Incapable of Consent was sentenced on January 5, 2017, by U.S. District Judge Charles B. Kornmann.
Harvey Renville, age 63, was sentenced to 72 months in custody, 10 years of supervised release, and a special assessment to the Federal Crime Victims Fund in the amount of $100.
Renville was indicted by a federal grand jury on March 15, 2016. He pled guilty on December 13, 2016 to a Superseding Information.
The conviction stemmed from incidents beginning in May of 2012, and continuing through December 31, 2012. The victim became acquainted with Renville when he began to care for her family’s horses, and the victim started spending considerable time at his residence.
It was during this time period that the abusive sexual contact occurred. Renville admitted that during one of the times the victim was at his residence, he had direct contact with the victim’s genitalia with his finger and his hand. At the time of the sexual contact, the victim was unable to consent. Renville had been previously convicted of a sex offense, which required him to register as a sex offender.
This case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Renville was immediately turned over to the custody of the U.S. Marshals Service.
"Real Time": Two Men Enter Guilty Pleas in Federal Court on Drug and Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Tony Raymond Ouzts, age 47, and Daniel Neil Alexander, age 49, of Hull, Georgia, and Anderson, South Carolina, respectively, pled guilty yesterday in federal court in Greenville, South Carolina. Ouzts pled guilty to possession with intent to distribute in excess of 500 grams of methamphetamine in violation of Title 21, United States Code, Section 841, and possession of a firearm in furtherance of a drug trafficking crime, in violation of Title 18, United States Code, Section 924. Alexander pled guilty to conspiracy to distribute in excess of 500 grams of methamphetamine, in violation of Title 21, United States Code, Section 846. United States District Judge Bruce Howe Hendricks of Charleston accepted the plea and will impose sentence after she has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Ouzts and Alexander, over numerous months, had conspired to distribute in excess of 6500 grams of methamphetamine. An investigation into the activity of the two men revealed that Ouzts was bringing regular deliveries of methamphetamine from Georgia to Alexander, in Anderson, SC. At the time of arrest, Ouzts was found to be additionally in possession of a Smith & Wesson 9 mm and a Romarm/Cugir AK-47 pistol.
Ms. Drake stated that the defendants face a mandatory minimum penalty of 10 years in federal prison and a maximum penalty of life in prison as well as a fine of $10,000,000.
Ouzts and Alexander were arrested as a part of “Operation Real-Time.” The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community. In addition to the Anderson Police Department and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Greenville County Sheriff’s Office; the South Carolina Department of Probation, Parole, and Pardon Services; the South Carolina Highway Patrol; United States Probation; the Department of Homeland Security; the Federal Bureau of Investigation; the Drug Enforcement Administration; the 13th Circuit Solicitor’s Office; and the United States Attorney’s Office. Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 90 defendants and seizure of approximately 110 firearms as well as assorted ammunition from prohibited persons.
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco and Firearms and the U.S. Attorney’s Office adopting the case, “We work best when we work together. This ‘real time’ identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities.”
The case was investigated by agents of the Bureau of Alcohol, Tobacco, and Firearms working in conjunction with the Anderson Police Department and the Rutherford County Sheriff’s Office in North Carolina. Assistant United States Attorney D. Josev Brewer of the Greenville office handled the case.
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"Real Time": Greenville Man Sentenced on Federal Gun ChargesRead the Press Release
Contact Person: Lance Crick (864) 282-2100
Columbia, South Carolina ---- United States Attorney Beth Drake stated today that Tyronzo Alexander Walker, age 41, of Greenville, was sentenced yesterday afternoon in federal court by United States District Judge Bruce Howe Hendricks of Charleston, to a term of 57 months in federal prison for possessing a firearm as a felon.
Evidence presented at the change of plea hearing last year and the sentencing hearing yesterday, established that on March 3, 2016, members of the Greenville County Sheriff’s Department executed a search warrant at a residence on Henderson Avenue. During the search deputies located several firearms, including a Taurus 9mm pistol, as well as quantities of marijuana and cocaine. Walker pled guilty to possession of the Taurus 9mm pistol.
Walker was arrested federally as a part of "Operation Real-Time." The goal of this program is to identify individuals for federal prosecution with significant criminal histories who continue to actively possess firearms in the Upstate community. In addition to the Greenville County Sheriff’s Office and the Bureau of Alcohol, Tobacco, and Firearms, Real Time’s core partners include the Greenville Police Department, the Anderson Police Department; the South Carolina Department of Probation, Parole, and Pardon Services; the South Carolina Highway Patrol; United States Probation; the Department of Homeland Security; the Federal Bureau of Investigation; the Drug Enforcement Administration; the 13th Circuit Solicitor’s Office; and the United States Attorney’s Office. Since August of 2015, the initiative has resulted in the expedited federal prosecution of some 90 defendants and seizure of approximately 110 firearms as well as assorted ammunition from prohibited persons.
Greenville County Sheriff Will Lewis and his office are crucial partners in this effort. "The Greenville County Sheriff's Office is committed to removing illegal weapons from violent offenders and are very glad to be a part of this program and will offer any assistance we can."
U.S. Attorney Beth Drake commended the partnership between the state and federal agencies that led to the Bureau of Alcohol, Tobacco and Firearms and the U.S. Attorney’s Office adopting the case, "We work best when we work together. This 'real time' identification of high risk offenders is smart policing, and we welcome the opportunity to work alongside our state chiefs and sheriffs in taking violent repeat offenders out of our communities."
The Greenville County Sheriff’s Office along with agents from the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) investigated the case. Assistant United States Attorney Max Cauthen in the Greenville U.S. Attorney’s Office prosecuted the case.
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12 January 2017
Zimmer Biomet Holdings Inc. Agrees to Pay $17.4 Million to Resolve Foreign Corrupt Practices Act ChargesRead the Press Release
Subsidiary Agrees to Plead Guilty to Violating the Foreign Corrupt Practices Act
Zimmer Biomet Holdings Inc. (Zimmer Biomet), an Indiana-based manufacturer of orthopedic and dental implant devices, has agreed to pay a $17.4 million criminal penalty in connection with a scheme to pay bribes to government officials in Mexico and for violations of the internal controls provisions of the Foreign Corrupt Practices Act (FCPA) involving the company’s operations in Mexico and Brazil. Zimmer Biomet had been in breach of a 2012 deferred prosecution agreement (DPA) with the department resolving an earlier investigation into FCPA violations committed by Biomet Inc., which became part of Zimmer Biomet in 2015.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Assistant Director Stephen Richardson of the FBI’s Criminal Investigative Division made the announcement.
“Zimmer Biomet had the opportunity to avoid criminal charges but its misconduct allowed the bribes to continue,” said Assistant Attorney General Caldwell. “Zimmer Biomet is now paying the price for disregarding its obligations under the earlier deferred prosecution agreement. In appropriate circumstances the department will resolve serious criminal conduct through alternative means, but there will be consequences for those companies that refuse to take these agreements seriously.”
“Zimmer Biomet failed to rectify their misconduct and get back on track in compliance with the law, and now they are facing the consequences of their corrupt actions,” said Assistant Director Richardson. “The FBI will not stand idly by when companies operate outside the law and attempt to play by different rules in the marketplace. We remain vigilant and committed to holding those accountable who disregard the rule of law in the United States.”
According to admissions made in the resolution documents, even after the 2012 DPA between the department and Biomet, the company knowingly and willfully continued to use a third-party distributor in Brazil known to have paid bribes to government officials on Biomet’s behalf. Biomet also failed to implement an adequate system of internal accounting controls at the company’s subsidiary in Mexico, despite employees and executives having been made aware of red flags suggesting that bribes were being paid. By failing to require appropriate due diligence and documentation and contracts for payments to third parties, Biomet allowed its Mexican subsidiary, Biomet 3i Mexico S.A. de C.V. (3i Mexico), to pay bribes to Mexican customs officials through customs brokers and sub-agents so 3i Mexico could import contraband dental implants into Mexico. Importing those products into Mexico violated Mexican law because they lacked proper registration or labeling.
Zimmer Biomet entered into a three-year DPA tin connection with a superseding criminal information, filed today in the District of Columbia, charging the company with failing to implement a system of effective internal accounting controls. Pursuant to its agreement with the department, Zimmer Biomet agreed to pay a $17.4 million criminal penalty and retain an independent corporate compliance monitor for three years.
JERDS Luxembourg Holding S.ár.l. (JERDS), an indirect subsidiary of Zimmer Biomet, agreed to plead guilty to a one-count criminal information, also filed in the District of Columbia, charging it with causing Biomet to violate the books and records provisions of the FCPA through the actions of 3i Mexico, a wholly-owned subsidiary of JERDS. The plea agreement is subject to court approval. The case was assigned to Senior U.S. District Judge Reggie B. Walton of the District of Columbia and the change of plea is scheduled to take place on Jan. 13, 2017 at 3:45 p.m.
In related proceedings, the U.S. Securities and Exchange Commission (SEC) filed a cease and desist order against Zimmer Biomet whereby the company agreed to pay to the SEC disgorgement of $6.5 million including pre-judgment interest and $6.5 million as a civil penalty.
The Criminal Division’s Fraud Section reached this resolution based on a number of factors, including that Zimmer Biomet was in breach of the 2012 DPA between Biomet and the department. That agreement resolved an earlier investigation by the department into violations of the FCPA committed by Biomet, including the bribery of government officials in Argentina, Brazil and China as well as the falsification of the company’s financial records to conceal the true nature of the bribe payments. Pursuant to the 2012 DPA, Biomet had been required to retain an independent compliance monitor. The monitor’s term was extended for one year in 2015, due to both the bribery in Brazil and Mexico and the fact that the Zimmer Biomet compliance program did not meet the requirements of the 2012 DPA. At the conclusion of the extended period, the independent monitor was unable to certify that the company’s compliance program satisfied the requirements of the 2012 DPA and the department notified Zimmer Biomet that it was deemed to be in breach of the agreement. Zimmer Biomet fully cooperated with the current investigation and provided to the Fraud Section all relevant facts known to the company, including information about individuals involved in the misconduct. Nevertheless, because Zimmer Biomet failed to implement an effective compliance program and committed additional crimes while under a DPA and monitorship, the current DPA requires Zimmer Biomet retain an independent compliance monitor for a term of three years.
The FBI’s International Corruption Squad in Washington, D.C., investigated the case. Assistant Chief Tarek J. Helou and Trial Attorney John Borchert of the Fraud Section prosecuted the case. The Office of International Affairs also provided substantial assistance in this matter.
The Criminal Division’s Fraud Section is responsible for investigating and prosecuting all FCPA matters. Additional information about the department’s FCPA enforcement efforts can be found at www.justice.gov/criminal/fraud/fcpa.
Court Documents:
Zimmer Superseding Information Zimmer DPA JERDS InformationWilmington Man Convicted of Purchasing Guns for Charged Juvenile Gang MembersRead the Press Release
WILMINGTON, Del. – Charles M. Oberly III, United States Attorney for the District of Delaware, announced that Darius Jamal Shields-Dryden (“Shields-Dryden”) pled guilty yesterday to a five-count Information charging him with making material false statements to federally licensed firearms dealers in connection with the acquisition of guns. Shields-Dryden, age 26, from Wilmington, Delaware, is accused of purchasing multiple guns for juveniles. Each time Dryden bought a gun, he falsely claimed to be purchasing the weapon for himself. Shields-Dryden faces a maximum of 10 years in prison and a $250,000 fine on each count.
According to publicly filed documents and statements made in open court, Shields-Dryden purchased five guns between April 30, 2016 and May 16, 2016. Surveillance footage from the gun stores shows Shields-Dryden accompanied by several juveniles alleged to be members of the violent Wilmington street gang Only My Brothers (“OMB”). A number of those same juveniles are charged with gang participation and other offenses in the Superior Court of the State of Delaware. Two of the alleged OMB members who were with Shields-Dryden in the gun stores were later arrested in possession of guns Dryden bought, as laid out below.
Shields-Dryden purchased a firearm on May 16, 2016, which was later discovered in the possession of an alleged OMB member charged with using shooting a man with that gun during a May 17, 2016 robbery attempt. Another of the guns Shields-Dryden purchased was recovered in the possession of a different juvenile; photographs and videos on that juvenile’s phone show the juvenile and his brother holding three additional firearms purchased by Shields-Dryden.
United States Attorney Oberly stated, “The individuals who knowingly purchase firearms that are turned over to juveniles or others who are prohibited from possessing firearms are as morally guilty of the crimes committed by those who are provided firearms, which are then used in murders, assaults, robberies, and other crimes. In these situations, these so-called straw purchasers should expect to be prosecuted and sentenced to prison. If fewer juveniles or felons are able to obtain firearms in this manner, the streets of Wilmington will be safer and lives will be saved.”
This case is the result of an investigation conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wilmington Police Department. The prosecution is being handled by Assistant United States Attorney Jennifer K. Welsh, District of Delaware.
West Sacramento Man Indicted for Receiving Child PornographyRead the Press Release
SACRAMENTO, Calif. — Zaid Bader Jacob, 47, of West Sacramento, is scheduled to be arraigned today after a federal grand jury returned an indictment charging him with receipt of child pornography, U.S. Attorney Phillip A. Talbert announced.
According to court documents, law enforcement agents executed a search warrant at Jacob’s residence in April 2015 after they identified an IP address there offering child pornography over the internet via a peer-to-peer network. The indictment alleges that between January and April 2015, Jacob used a computer to receive one or more visual depictions of a minor engaging in sexually explicit conduct.
This case is the product of an investigation by the Federal Bureau of Investigation and the Sacramento Internet Crimes Against Children (ICAC) Task Force, a federally and state-funded task force managed by the Sacramento Sheriff’s Department with agents from federal, state, and local agencies. The Sacramento ICAC investigates online child exploitation crimes, including child pornography, enticement, and sex trafficking. Assistant U.S. Attorney Shelley D. Weger is prosecuting the case.
If convicted, Jacob faces a maximum statutory penalty of 20 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Violent Drug Trafficker Sentenced to 21 Years in Prison Arising from Massive Operation by the Middle District Organized Crime and Drug Trafficking Task ForceRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced another significant prison sentence resulting from a federal grand jury indictment against 38 individuals in Operation Third World, a long-running investigation by the Middle District Organized Crime and Drug Trafficking Task Force (OCDETF) aimed at dismantling a notoriously violent drug trafficking network operating in Baton Rouge and surrounding areas.
Yesterday, Myron Chevelle Hart, age 39, of Baker, Louisiana, was sentenced by U.S. District Judge Shelly D. Dick to serve 262 months (21 years) in prison and ordered to forfeit $199,441 as proceeds of his offenses. In addition, Hart was sentenced to 48 months for violating the terms of his federal supervised release which resulted from his 2007 federal drug and firearm convictions. The defendant will not be eligible for parole since the federal system has abolished parole.
A federal grand jury indicted Hart and 38 others with various narcotics trafficking and firearms offenses related to their involvement in a violent drug trafficking organization. The indictment includes significant drug trafficking, racketeering, firearm, and conspiracy charges, including allegations of a murder plot, threats to use a hatchet to cut off fingers, and using a child to help transport 18 kilograms of cocaine. To date, 34 of the defendants have been convicted and one has died. The remaining 4 defendants are set for trial. When the defendants were arrested pursuant to the indictment, agents seized cocaine, a stolen AR-15, a shotgun, three handguns, and over $113,000 in cash believed to be drug proceeds. Previously during the investigation, agents seized 6 firearms and over $150,000 in cash as part of this operation.
Hart plead guilty on November 10, 2016, admitting that beginning in early 2013, he conspired with Kelly D. Williams, Charles C. London, C’Prien Nicholas, Sylvester Smith, Artey Foulcard and others to obtain and distribute multiple kilograms of cocaine and crack cocaine for profit in and around Baton Rouge.
In addition to distributing cocaine and crack cocaine, Hart’s role in the organization was that of an enforcer, using violence and threats of violence to advance their aims. As an example, court-authorized wiretaps captured several phone calls during which Hart and a coconspirator planned to rob and kill someone because that person had talked negatively about them. During another conversation, Hart even bragged to different coconspirator that he should watch the news the following morning because the killing will be a story. After learning of the plan, law enforcement intervened, preventing the plan from being carried out.
The following defendants have previously been sentenced:
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Charles C. London, age 40, of Baton Rouge, Louisiana, was sentenced on September 8, 2016 to 26.6-years imprisonment.
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Sylvester S. Smith, age 37, of Houston, Texas, was sentenced on May 19, 2016 to 18-years imprisonment.
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Donald Sanders, Jr., age 39, of Gonzales, Louisiana, was sentenced on November 3, 2016 to 7-years imprisonment.
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Derrick D. Hilliard, age 39, of Baton Rouge, Louisiana, was sentenced on June 23, 2016 to 5-years imprisonment.
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Willie C. Lewis, age 38, of Baton Rouge, Louisiana, was sentenced on May 19, 2016 to 9-years imprisonment.
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Sekari Davis Washington, age 38, of Zachary, Louisiana, was sentenced on June 30, 2016 to 1-year imprisonment.
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Clarence White, age 52, of Baton Rouge, Louisiana, was sentenced on November 10, 2016 to 4.5-years imprisonment.
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Vernon A. Powell, age 35, of Baton Rouge, Louisiana, was sentenced on January 12, 2017 to 8-years imprisonment.
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Devon D. Foster, age 37, of Baton Rouge, Louisiana, was sentenced on May 5, 2016 to 9-years imprisonment.
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Eric O’Neal Selders, age 44, of Independence, Louisiana, was sentenced on September 29, 2016 to 13.75-years imprisonment.
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James Edward Allen, age 33, of Baton Rouge, Louisiana, was sentenced on March 24, 2016 to 3-years imprisonment.
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Dwan M. Delavallade, age 39, of Baton Rouge, Louisiana, was sentenced on December 1, 2016 to 5.8-years imprisonment.
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Kelvin Ronelle Johnson, age 38, of Baton Rouge, Louisiana, was sentenced on August 4, 2016 to 5.8-years imprisonment.
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Gerry Earl Griffin, age 45, of Baton Rouge, Louisiana, was sentenced on June 16, 2016 to 1-year imprisonment.
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Gregory C. Walker, age 53, of Donaldsonville, Louisiana, was sentenced on July 28, 2016 to 5.8-years imprisonment.
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Jeremy James Washington, age 37, of Donaldsonville, Louisiana, was sentenced on December 19, 2016 to 5-years imprisonment.
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Myron Derell Mills, age 36, of Gonzales, Louisiana, was sentenced on April 7, 2016 to
15.2-years imprisonment.
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Ashley H. Hebert, age 27, of Thibodaux, Louisiana, was sentenced on June 16, 2016 to 2-years imprisonment.
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Keeyon Mondrell Sanders, age 34, was sentenced on September 29, 2016 to 2-years imprisonment.
U.S. Attorney Green stated: “Today’s severe sentence is a product of the tremendous efforts of the many federal, state, and local law enforcement agents, who, together with prosecutors in my office, worked seamlessly and tirelessly to put this violent group of thugs out of business. Together, we will continue to aggressively bring the fight to those who threaten the peace, safety, and security of our communities through violence and drug trafficking.”
DEA Assistant Special Agent-in-Charge Brad L. Byerley stated: “The arrests and convictions made in this investigation are part of DEA’s continuing effort to target the distribution of dangerous drugs at all levels. Illicit drug abuse and related criminal activity take a tremendous toll on our communities, including those in Baton Rouge. We will continue to work closely with our state and local law enforcement partners in order to enhance the quality of life for the citizens in this region.”
This operation is being handled by the U.S. Attorney’s Office, the U.S. Drug Enforcement Administration (DEA), the Internal Revenue Service-Criminal Investigations (IRS-CI), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Baton Rouge City Police Department, the West Baton Rouge Parish Sheriff’s Office, the East Baton Rouge Parish Sheriff’s Office, the Ascension Parish Sheriff’s Office, the Louisiana State Police, the Iberville Parish Sherriff’s Office, the Livingston Parish Sherriff’s Office, the Gonzales Police Department, and the Baker Police Department.
This matter is being prosecuted by Assistant United States Attorneys Jennifer Kleinpeter and Adam Ptashkin.
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United States Attorney and Community Coalitions Host Anti-Heroin Event at Hudson Valley Community CollegeRead the Press Release
ALBANY, NEW YORK – As a follow-up to an opiate addiction awareness event in December 2016, the United States Attorney’s Office, with the Rensselaer County Heroin Coalition, Troy Drug Free Community Coalition, NOPIATES, and Rensselaer Area Drug Awareness Reality Coalition (RADAR) will jointly host a two-part community event on January 18th from 7 – 9 PM at Hudson Valley Community College. The evening begins with a screening of Chasing the Dragon: The Life of an Opiate Addict, a documentary film commissioned by the FBI and DEA and told through interviews with recovering users and their loved ones. Following the film, Eric Dyer, a law student who became an opiate user while attending college in the Capital Region, will discuss his addiction and life in recovery.
United States Attorney Richard S. Hartunian said, “The heroin and prescription opioid epidemic is a crisis that reaches every corner of our communities. We are committed to continuing to combat the distribution of heroin and illicit opioids with robust enforcement, but the best protection of public health and safety is in prevention and education. We hope events such as this will spread the word that heroin and illicit opioids are deadly, and there is help available to avoid and overcome them.”
All four community coalitions in Rensselaer County are collaborating with the U.S. Attorney’s Office to raise awareness of the heroin and opiate epidemic, and these coalitions all encourage participation in events such as this one.
“The Rensselaer County Heroin coalition brings together many different “faces” to help combat the Opioid crisis in our area,” explained Co-Chairperson Maryfran Wachunas, Rensselaer Public Health Director. “Working together as a team and sharing each other knowledge, we are taking a multi -step approach at not only educating ourselves but the entire coalition and community as a whole.”
“NØpiates Committee is a local organization that is dedicated to raising community awareness regarding opiates, substance abuse and addiction,” explained Kim and Tim Murdick, organizers of the NØpiates Committee. “Our dedicated members provide support, assistance and aid to identify available resources for those who battle with the disease of addiction. Our committee also organizes and participates in community events to provide education that focuses on the prevention of substance abuse, all the while remembering those who have been lost to the disease of addiction.”
“Troy Drug-Free Community Coalition (Troy DFCC) is a partnership of concerned community members organized for the purpose of reducing substance abuse among young people,” said Davia Collington, Troy DFCC Project Coordinator. “We believe that good things happen when the community comes together!” she explained. “It will take all sectors of the community to protect our youth from the disease of addiction. While we know that most youth in the City of Troy are substance-free, we are here to support those families that are struggling with substance abuse.”
“We've all heard the expression ‘It takes a village to raise a child’. At the RADAR Coalition, we're applying that approach to drug abuse prevention,” said Nancy Hardt, chairperson of RADAR. “Rensselaer Area Drug Awareness Reality (RADAR) Coalition is a non-profit organization dedicated to supporting a safe and healthy, drug-free community in the City of Rensselaer. We're working to bring together a wide range of community partners to prevent substance abuse by raising awareness and providing education. The RADAR Coalition’s vision is for the City of Rensselaer youth to live substance free.”
The greatest responses to addiction are to prevent it in the first place, and to bring people struggling with addiction the help they need to enter into a life of recovery. Come learn how each of these steps are possible.
Chasing the Dragon: The Life of an Opiate Addict
Followed by Eric Dyer telling his story to recoveryWhen: Wednesday, January 18th, 7 – 9 p.m.
Where: Bulmer Telecommunications Center
Hudson Valley Community College
80 Vandenburgh Ave, Troy, NYFor more information and to become involved with the local coalitions, see the information below:
NØpiates Committee [email protected] www.nopiates.com
518-220-4199The Rensselaer County Heroin Coalition
Maryfran Wachunas, Sheriff
Patrick Russo, Co-Chair
Public Health Director Rensselaer County Sheriff’s Office
1600 7th Avenue 4000 Main Street
Troy, NY 12180 Troy, NY 12180
518-270-2626 https://www.rensco.com/326/Rensselaer-County-Heroin-Coalition
[email protected]RADAR – Rensselaer Area Drug Awareness Reality Coalition
Jennifer Haggerty, Chair
Nancy Hardt, Co-Chair https://www.facebook.com/RADAR12144 [email protected]
518-270-2841Troy Drug Free Community Coalition
Davia Collington, Project Coordinator
415 River Street 3rd Floor Troy, NY 12180
518-272-8289x216 https://triponline.org/troy-drug-free-community-coalition/ https://www.facebook.com/TroyDFCC/
[email protected]U.S. Attorney Joyce White Vance to Receive 2017 Lou Wooster Public Health Hero AwardRead the Press Release
The University of Alabama at Birmingham School of Public Health is honoring U.S. Attorney Joyce White Vance as the 2017 recipient of its Lou Wooster Public Health Hero award for her leadership in creating a broad-based response to the heroin epidemic in northern Alabama.
UAB School of Public Health announced today that its advisory board, the Broad Street Committee, has selected Vance for the award, which is presented annually to recognize an individual, group or organization that is an unconventional public health hero. The award is named in honor of Louise Wooster, the 19th century Birmingham madam who risked her life during the 1873 cholera epidemic by staying in the city to care for the sick and dying. A devastating cholera epidemic struck the young city that year and most residents, including all the local leadership, fled.
In its announcement, the UAB School of Public Health said Vance was selected for her leadership in comprehensively addressing the heroin epidemic in metropolitan Birmingham and elsewhere across the state. “When few recognized the emerging epidemic of heroin and opioid-related deaths, Joyce Vance, in her role as United States Attorney, convened the first ‘Pills to Needles Summit’ in June 2014 that overnight galvanized community leaders around this new public health threat. Through her leadership and determination, Joyce Vance established a new paradigm to address this threat to the public’s health that linked law enforcement, government, academia, public health, victims, and advocates. Together these institutions, organizations, and individuals have worked a long-term strategy that recognizes the complexities of this epidemic and is sufficiently flexible to adjust to anticipated but unknown changes in the substances, the populations, and the distributors,” the announcement said.
“Vance joins uncommon public health heroes, selected because their work falls outside the traditional boundaries of public health, yet has a great impact on the public’s health,” said Max Michael III, M.D., dean of the UAB School of Public Health.
Vance was one of the first five U.S. Attorneys nominated by President Barack Obama. The Senate confirmed her nomination Aug. 7, 2009. Vance served on the Attorney General’s Advisory Committee from 2009 to 2011, where she helped to craft Justice Department policy. She presently co-chairs the AGAC’s Criminal Practice Subcommittee, and serves on the Civil Rights Subcommittee.
Vance, like Lou Wooster, is an uncommon public health hero, the UAB announcement said. “Lou Wooster’s grit and determination to stay in Birmingham, along with some of the other girls at her house on Morris Avenue, is credited with assuring that there was a Birmingham for the leadership to come back to.”
Previous winners of the Lou Wooster Public Health Hero Award include State Representative Patricia Todd, the first openly gay elected official in the State of Alabama; American Electric Power, the Western Hemisphere’s largest burner of coal, for its strong and environmentally collaborative efforts to produce clean energy; the VF Corporation for its decision to rebuild the Wrangler Distribution Center in rural Hackleberg, Alabama, which was destroyed in the April 2013 tornados; and Angelou Ezeilo, Founder of the Greening Youth Foundation in Atlanta.
U.K. Insurance Broker Sentenced for Stealing $467K from ClientsRead the Press Release
ALEXANDRIA, Va. – Robert G. Ross, 51, of Middleburg, was sentenced today to 18 months in prison for stealing approximately $467,000 from his clients. Ross was also ordered to pay $467,000 in restitution and agreed to an asset forfeiture judgment.
Ross pleaded guilty on Sept. 29, 2016, to a criminal information charging him with one count of mail fraud. According to court documents, Ross, a citizen of the United Kingdom, owned and operated Thames Insurance Services, Inc., a wholesale marine insurance agency that served domestic retail insurance agents in the United States and brokers in London. Ross and Thames were intermediaries in the Lloyd’s of London insurance market. A portion of the Lloyd’s market involves excess and surplus insurance for high-risk conditions or policies that fall outside standard underwriting guidelines. Ross had a surplus insurance license that authorized him to place in the Lloyd’s market high-risk marine polices for ocean-bound yachts and other private and commercial vessels.
According to court documents, the domestic retail agents contacted Ross and requested that he locate brokers in London to place policies in the Lloyd’s market. The policyholders typically paid their retail agents the full premium amounts for the policies. The retail agents then forwarded the payments to Ross’ residence by U.S. mail and to his trust account by wire transfer. After deducting a commission, Ross was supposed to remit the net premium funds to two U.K. brokers. However, between February 2015 and November 2015, Ross abused his position of trust by not remitting payments from four retail agents. Ross instead converted the funds to personal use.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Joseph Cronin, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement after sentencing by U.S. Senior District Judge James C. Cacheris. Special Assistant U.S. Attorney Edward P. Sullivan 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. 1:16-cr-218.
Two Sentenced in Conspiracy to Traffic Heroin Using MegabusRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KEVIN GONZALES, age 25, of Houston, and EARL BROWN, age 32, of New Orleans, were sentenced today after having previously pled guilty to a conspiracy to distribute heroin.
U.S. District Judge Carl J. Barbier sentenced GONZALES to 57 months of incarceration, to be followed by 5 years of supervised release. BROWN was sentenced to 30 months of incarceration, to be followed by 3 years of supervised release.
Both defendants were charged in a 21-count Superseding Indictment on September 18, 2015. According to court documents, the Superseding Indictment resulted from an FBI investigation into a heroin-trafficking organization operating primarily around Loyola Avenue and Harmony Street in Central City. During the timeframe of this conspiracy, GONZALES traveled via Megabus from Houston to New Orleans, carrying half-kilogram quantities of heroin for distribution by BROWN and others in the New Orleans area.
U.S. Attorney Polite praised the work of the FBI New Orleans Gang Task Force (NOGTF), St. Tammany Parish Sheriff’s Office, the Jefferson Parish Sheriff’s Office, and the New Orleans Police Department in investigating this matter. Assistant United States Attorney Brandon S. Long is in charge of the prosecution.
Two Postal Carriers and Marijuana Organizations Charged with Bribery in Connection with Marijuana TraffickingRead the Press Release
Philadelphia - Acting United States Attorney Louis D. Lappen today announced three indictments[1] that collectively charged postal carriers Steven C. Williams, 42, and Felicia Charleston, 35, with using their positions as United States postal carriers to distribute large quantities of marijuana to conspiring with Chester Wynter, 49, Barrington Russell, 44, Damion Parkes, 44, Gillion Watson, 32, Marvia Shirley, 32, Patrick Purrier, 38, and Anthony Washington, 27.
In each of the three indictments, Williams was charged with conspiring with members of marijuana organizations to commit bribery, bribery of a public official, and conspiring with the members of the marijuana organizations to distribute at least 100 kilograms of marijuana. According to the indictments, Williams was a postal carrier at the West Market Post Office in Philadelphia and was responsible for delivering United States Postal Services’ packages to addresses in West Philadelphia, which included 48 N. Hobart Street and other addresses in West Philadelphia. Williams allegedly used his position as a postal carrier to divert packages from the addressee to Wynter, Russell, Parkes, Purrier and Washington for the purposes of distributing the marijuana contained within the packages, in return for cash. In two of the three indictments, Charleston was similarly charged with conspiring with members of marijuana organizations to distribute at least 100 kilograms of marijuana. According to these indictments, Charleston also worked at the West Market Post Office in Philadelphia and was responsible for delivering United States Postal Services’ packages to addresses in West Philadelphia, but she left her postal route to divert packages from the addressee to Wynter, Russell, and Washington for the purposes of distributing the marijuana contained within the packages.
According to the indictments, once the packages were delivered to Wynter, Russell, Parkes, Watson, and Shirley at 48 N. Hobart Street, and to Purrier and Washington at various locations in West Philadelphia, these marijuana conspiracy members distributed the marijuana to their customers.
Based on the quantity of the marijuana involved, the defendants face the following sentences:
Williams – a statutory maximum sentence of life imprisonment, a mandatory minimum sentence of ten years’ imprisonment, and a $28,500,000 fine
Charleston – a statutory maximum sentence of life imprisonment, a mandatory minimum sentence of ten years’ imprisonment, and a $20,250,000 fine
Wynter and Russell – a statutory maximum sentence of life imprisonment, a mandatory minimum sentence of ten years’ imprisonment, and a $10,500,000 fine
Parkes - a statutory maximum sentence of life imprisonment, a mandatory minimum sentence of ten years’ imprisonment, and a $10,250,000 fine
Watson and Shirley - a statutory maximum sentence of life imprisonment, a mandatory minimum sentence of ten years’ imprisonment, and a $10,000,000 fine
Purrier - a statutory maximum sentence of 65 years’ imprisonment, a mandatory minimum sentence of five years’ imprisonment, and a $5,750,000 fine
Washington - a statutory maximum sentence of life imprisonment, a mandatory minimum sentence of ten years’ imprisonment, and a $12,500,000 fine.
“This indictment is a great example of how our different law enforcement partners can combine resources to combat corruption within the federal government," said Acting United States Attorney Louis D. Lappen. "The U.S. Attorney’s Office will continue to investigate and prosecute postal service and other federal employees who undermine the integrity of government operations through bribery and other unlawful conduct.”
“The vast majority of the Postal Service’s 600,000 employees nationwide are dedicated, hard-working individuals worthy of America’s trust," said Monica Weyler, U.S. Postal Service Office of Inspector General Special Agent in Charge, Philadelphia, PA. "However, a very small number of them choose to violate that trust by engaging in misconduct or criminal activity. Special agents with the U.S. Postal Service Office of Inspector General work with other law enforcement agencies to find those employees, investigate them, and seek their criminal prosecution and removal from the Postal Service, as we did in this case. To report criminal activity or serious misconduct by postal employees, contact USPS OIG special agents at 888-USPS-OIG or www.uspsoig.gov.”
The case was investigated by the United States Postal Service, Office of Inspector General (USPS-OIG), Homeland Security Investigations (HSI) Border Enforcement Security Taskforce (BEST), and the Pennsylvania Office of Attorney General, Bureau of Narcotics Investigations (BNI) and is being prosecuted by Assistant United States Attorneys Anita Eve and Tomika N.S. Patterson.
[1] An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Two New Haven Trustees Charged with Demanding and Taking BribesRead the Press Release
An elected Trustee of New Haven, Michigan was charged today in a criminal complaint with demanding and taking a bribe in exchange for his official acts in connection with a municipal contract, United States Attorney Barbara McQuade announced. In addition, a former Trustee of New Haven was charged in a criminal information with accepting multiple bribes.
McQuade was joined in the announcement by FBI Special Agent in Charge David P. Gelios and Manny J. Muriel, Special Agent in Charge, Internal Revenue Service-Criminal Investigation, Detroit Field Office.
Christopher Craigmiles, 43, of Lenox Township, is charged in a complaint with engaging in corrupt activity, including demanding and accepting money in exchange for official acts as a Trustee of New Haven. Craigmiles is a current, elected Trustee of the Village of New Haven. Brett Harris, 57, of New Haven, is charged in an information with accepting multiple bribes in exchange for a promise to support a future municipal contract for the village. Harris was an elected Trustee of New Haven until losing re-election in November 2016. The charges against Craigmiles and Harris are part of an ongoing and long-running investigation into systemic corruption in multiple municipalities in southeast Michigan, primarily Macomb County. The investigation has employed telephone wiretaps, consensual audio and video recordings by cooperative individuals, undercover operations, physical surveillance, telephone tracking warrants, and subpoenas of financial records and other documents.
The criminal information against Harris charges that Harris conspired with Craigmiles and former Clinton Township Trustee Dean Reynolds to engage in bribery in the summer of 2016. Reynolds unwittingly introduced Harris to an undercover FBI agent who was posing as a consultant to a company that has contracts with various municipalities in southeast Michigan—referred to in the information as “Company A.” Reynolds told the undercover agent that Harris was a public official who would be willing to take bribes in exchange for his vote on a future contract with Company A. Previously, Reynolds had accepted $17,000 in cash bribes from the undercover agent and between $50,000 and $70,000 in bribes from an executive of Company A, and Reynolds is currently charged in a pending federal indictment. After being introduced to the undercover agent by Reynolds, Harris accepted multiple bribes amounting to $11,000 in cash from the undercover agent in exchange for his vote as a Trustee on a future contract between New Haven and Company A. In August 2016, Harris then introduced the undercover agent to Craigmiles. Harris identified Craigmiles as being another New Haven Trustee who would accept bribes. The criminal complaint charges Craigmiles with accepting a $5,000 cash bribe from the undercover FBI agent in August 2016. Craigmiles agreed to support a future contract for Company A in exchange for the money.
“Our elected officials must make decisions based on what is best for the people and our communities, not based on whether they are given cash,” said U.S. Attorney McQuade. “Elected officials who violate the public trust by accepting bribes must be arrested and prosecuted.”
"Today's announcement of public corruption charges, in the Village of New Haven, demonstrates the FBI's unyielding commitment to aggressively investigate public servants, past or present, who accept bribes in exchange for official actions, said David P. Gelios, Special Agent in Charge, Detroit Division of the FBI. "Illegal conduct as described today erodes the trust and confidence community members place in their elected officials and threatens the integrity of our system of governance."
This investigation is being conducted by the FBI Detroit Area Corruption Task Force, a multiagency task force led by the FBI Detroit Division and comprised of the Internal Revenue Service – Criminal Investigation Division, Michigan State Police, Michigan Attorney General’s Office, and several other local and federal law enforcement agencies. It is being prosecuted by Assistant United States Attorneys R. Michael Bullotta and David A. Gardey.
Upon conviction for a violation of Title 18, United States Code, Section 666, federal program bribery, Craigmiles faces a maximum of ten years in prison and a fine of up to $250,000. Upon conviction for a violation of Title 18, United States Code, Section 371, conspiracy to commit federal program bribery, Harris faces a maximum of five years in prison and a fine of up to $250,000.
Court appearances for Craigmiles and Harris will take place sometime next week.
A complaint and an information are only charges and are not evidence of guilt. Trial cannot be held on felony charges in a complaint. When the investigation is completed a determination will be made whether to seek a felony indictment.
The FBI requests that anyone having information regarding public officials accepting bribes is encouraged to contact the Detroit Division of the FBI at 313-965-2222.
Two Men Sentenced for Drug Conspiracy and Possession of a Firearm During a Drug Trafficking OffenseRead the Press Release
St. Thomas, USVI – On January 11, 2017, District Court Judge Curtis V. Gomez sentenced Alexandro Geraldino-Aracena, 39, of the Dominican Republic, to 202 months’ imprisonment for conspiracy and possession with intent to distribute cocaine, followed by five years of supervised release, United States Attorney Ronald W. Sharpe announced. Geraldino-Aracena was also sentenced to a consecutive 60-month term for possession of a firearm during a drug trafficking offense. Co-defendant Ricardo Cardona, 35, of Puerto Rico, was sentenced to 214 months’ imprisonment for conspiracy and possession with intent to distribute cocaine, followed by five years of supervised release. Cardona was also sentenced to a consecutive 60-month term for possession of a firearm during a drug trafficking offense. Judge Gomez also ordered Geraldino-Aracena and Cardona to each pay a $400 special assessment and perform 300 hours of community service.
According to evidence presented at trial, on the morning of September 3, 2015, Gerandino-Aracena and Cardona traveled in a private vessel equipped with a hidden compartment from Fajardo, Puerto Rico, to St. Thomas to purchase 150 kilograms of cocaine. They docked their vessel at the University of the Virgin Islands Marine Center Dock where they met other members of the drug trafficking organization to collect the cocaine in exchange for $250,000 and three assault rifles. Earlier that day in Puerto Rico, U.S. Drug Enforcement Administration (DEA) agents seized $1.4 million dollars in cash, which was partial payment for the cocaine.
This case was investigated by the DEA, the Federal Bureau of Investigation, the Bureau of Alcohol, Tobacco, Firearms and Explosives and U.S. Customs and Border Protection. It was prosecuted by Assistant United States Attorneys Sigrid M. Tejo-Sprotte and Delia Smith.
Topeka Man Indicted on Bank Robbery ChargeRead the Press Release
TOPEKA, KAN. – A federal grand jury returned an indictment Wednesday charging a Topeka man with bank robbery, U.S. Attorney Tom Beall said.
Dakota Shareef Walker, 20, Topeka, Kan., is charged with one count of bank robbery. The indictment alleges that on Nov. 28, 2016, he robbed the U.S. Bank at 5730 Southwest 21st Street in Topeka.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. The FBI and the Topeka Police Department investigated. Assistant U.S. Attorney Jared Maag is prosecuting.
OTHER GRAND JURY INDICTMENTS
Jesus S. Arrendondo, 26, Kansas City, Kan., is charged with one count of assaulting a person on federal property with intent to commit bodily harm. The crime is alleged to have occurred Nov. 6, 2016 at Fort Riley.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The Fort Riley Police Department investigated. Assistant U.S. Attorney Duston Slinkard and Special Assistant U.S. Attorney Robin Graham are prosecuting.
Donald R. Schooler, 56, is charged with failing to register as required under the federal Sex Offender Registration and Notification Act.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The U.S. Marshal Service investigated. Assistant U.S. Attorney Christine Kenney is prosecuting.
Roberto Munoz-Aguilar, 41, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Nov. 21, 2016, in Ford County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct
Three Men Sentenced in Major Cocaine ConspiracyRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.- Acting U.S. Attorney James P. Kennedy, Jr. announced today that Rafael Burgos, Alvin Torres, Jr., and Angel Pierluissi were sentenced by U.S. District Judge Elizabeth A. Wolford for their roles in a Dunkirk, New York area cocaine conspiracy. Burgos, who was convicted of conspiracy to possess with intent to distribute, and to distribute, five kilograms or more of cocaine, was sentenced to 75 months in prison. Torres and Pierluissi, who were convicted of possessing with intent to distribute and distributing cocaine, were each sentenced to 18 months in prison.
Assistant U.S. Attorney Michael J. Adler, who is handling the case, stated that between 2013 and June 10, 2015, law enforcement officers investigated a drug trafficking organization led by defendants Burgos and David Jesus Pagan. During the course of that investigation, it was determined that the defendants distributed multiple kilograms of cocaine throughout the Dunkirk area.
Burgos, Torres, and Pierluissi were arrested in June of 2015 along with Samuel Hernandez III, Javier Pagan, Jr., and David Jesus Pagan. All six defendants have been convicted. Search warrants were executed at the time of the arrests at six properties which resulted in the recovery of more than seven kilograms of cocaine (the largest seizure ever in the City of Dunkirk) and approximately $175,000 in cash as well as an AR-15 assault rifle with a 30 round magazine. During a search of Burgos’ residence, officers discovered a secret room with a money counting machine.
The sentencings are the result of an investigation by the Drug Enforcement Administration, under the direction of Special Agent-in-Charge James J. Hunt, New York Field Office; the Dunkirk Police Department, under the direction of Chief David C. Ortolano; the Chautauqua County Sheriff’s Office, under the direction of Sheriff Joseph A. Gerace; the Cattaraugus County Sheriff’s Office, under the direction of Sheriff Timothy S. Whitcomb; and the Chautauqua County District Attorney’s Office, under the direction of Patrick Swanson.Three Doctors and Three Executives Charged in $33 Million Medicare and Medicaid Fraud SchemeRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), and Dennis Rosen, Inspector General of the New York State Office of the Medicaid Inspector General (“OMIG”), announced the unsealing today of a superseding indictment charging physicians MUSTAK Y. VAID, PAUL J. MATHIEU, and EWALD J. ANTOINE, as well as health-care executives MARINA BURMAN, ASHER OLEG KATAEV, a/k/a “Oleg Kataev,” and ALLA TSIRLIN with operating a $33 million health care fraud scheme through the operation of eight fraudulent medical clinics in Brooklyn, as well as the operation of related suppliers of medical equipment, tests, and services. As part of the fraud scheme, the defendants’ co-conspirators paid cash kickbacks to elderly and financially disadvantaged patients (the “Paid Patients”) who were insured by Medicare and/or Medicaid, and the defendants and their co-conspirators then billed Medicare and Medicaid for unnecessary medical services, tests, and supplies related to the Paid Patients.
VAID was previously indicted and arrested on these charges in November 2016. MATHIEU, ANTOINE, BURMAN, KATAEVE, and TSIRLIN were arrested earlier today and presented and arraigned this afternoon before U.S. Magistrate Judge Kevin Nathaniel Fox. The case is assigned to U.S. District Judge Lorna G. Schofield.
U.S. Attorney Preet Bharara said: “These defendants allegedly operated fraudulent medical clinics and suppliers in a scheme that bilked Medicare and Medicaid out of more than $30 million. As alleged, three of the defendants were doctors who, in violation of their Hippocratic oath, signed medical charts for patients they never treated and prescribed unnecessary medications, procedures, and supplies. Medicare and Medicaid were established to assist the elderly and economically disadvantaged, not to serve as cash cows for allegedly corrupt professionals.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “In this case, as alleged, Medicare and Medicaid programs suffered millions of dollars in losses when a group of physicians and health-care executives created, operated, or became associated with eight fraudulent medical clinics. As charged, their litany of crimes included paying a series of kickbacks, writing scripts for unnecessary medical tests, and arranging transportation services for patients who didn’t need a ride. Today’s charges certainly won’t prove to be a cure for all ills, but they are a step in the right direction when it comes to confronting the threats faced by the health care system.”
Medicaid Inspector General Dennis Rosen said: “This joint investigation and today's arrests send an unmistakable message. Those who seek personal gain by preying upon vulnerable New Yorkers and exploiting the Medicaid program will be held fully accountable. My office will continue to work closely with our partners in the U.S. Attorney’s Office, FBI and other state and federal agencies to root out fraud, waste and abuse in the Medicaid program.”
As alleged in the Indictment unsealed today and according to statements made in Court today: [1]
Aleksandr Burman, an individual with no medical license, established eight medical clinics in Brooklyn (the “Related Clinics”), which operated between 2007 and 2013. For each clinic, Aleksandr Burman hired one of three doctors – VAID, MATHIEU, or ANTOINE – to pose as the nominal owner of the clinic, since New York State law requires that a professional services corporation providing medical care must be owned by a medical professional. In fact, however, VAID, MATHIEU, and ANTOINE were each simply hired by Aleksandr Burman to pose as the owner of one or more of the clinics, and to come to the clinic periodically, in order to sign medical charts falsely stating that the doctor had examined a number of Paid Patients. VAID posed as the owner of one such clinic, while MATHIEU posed as the owner of four others, and ANTOINE posed as the owner of the remaining three. The three doctors were also paid to provide a large number of prescriptions and referrals for medically unnecessary supplies. Such unnecessary prescriptions included referrals for more than $3.5 million worth of durable medical equipment (“DME”), consisting mostly of incontinence supplies such as adult diaper sets ordered from a DME supply company (“USD”) owned jointly by BURMAN and Aleksandr Burman of the Related Clinics.
Many of the Paid Patients who received such prescriptions and referrals did not need or receive the diapers and other supplies. Instead, BURMAN and USD arranged for the Paid Patients to exchange their diaper prescriptions for valuable merchandise, such as bed linens, tablecloths, dishes, kitchen appliances, and other housewares. BURMAN and USD nonetheless filed Medicaid claims for such DME, seeking more than $3.5 million in reimbursement. BURMAN also transported cash to the Related Clinics to be used to pay kickbacks to the Paid Patients.
VAID, MATHIEU, ANTOINE, and their co-conspirators also provided medical referrals for transportation services to hundreds of Paid Patients, even though such transportation was not medically necessary. This practice generated more than $4 million in losses to Medicaid. In addition, VAID, MATHIEU, and ANTOINE provided referrals and prescriptions for medically unnecessary diagnostic tests, including MRIs, as well as prescriptions for medications such as expensive ointment compounds. The defendants and their co-conspirators then sent such medical referrals to specific medical testing companies, which in turn provided kickbacks to Aleksandr Burman.
In 2012, KATAEV and TSIRLIN became business partners of Aleksandr Burman, and operated as the managers of two of the Related Clinics. Their activity as managers included paying cash kickbacks directly to Paid Patients, and employing MATHIEU and ANTIONE to pose as the owners of the two clinics.
In or about March 2016, Aleksandr Burman pled guilty for his role in these offenses. He is scheduled to be sentenced on February 15, 2017, before the Honorable Paul G. Gardephe.
* * *
VAID, 43, of Brownstown Township, Michigan, MATHIEU, 51, of Morristown, New Jersey, ANTOINE, 66, of Valley Stream, New York, BURMAN, 54, of Manhattan, KATAEV, 48, of Staten Island, and TSIRLIN, 46, of Brooklyn, are all charged with: (1) conspiring to commit health care fraud, mail fraud, and wire fraud, which carries a maximum sentence of 20 years in prison; (2) the substantive offenses of mail fraud and wire fraud, each of which carries a maximum sentence of 20 years in prison; (3) the substantive offense of health care fraud, which carries a maximum sentence of 10 years in prison; and (4) conspiring to make false statements relating to a federal health care program, which carries a maximum penalty of five years in prison. BURMAN, KATAEV, and TSIRLIN are also charged with conspiring to violate the Anti-Kickback Statute, which has a maximum penalty of five years in prison.
The statutory maximum sentences are prescribed by Congress and provided here for informational purposes only, as any sentencing of the defendants would be determined by the judge.
Mr. Bharara praised the investigative work of the New York FBI’s Health Care Fraud Task Force.
The prosecution of this case is being handled by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney David Raymond Lewis is in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendants are presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth herein, constitute only allegations, and every fact described should be treated as an allegation.
The Department of Justice Releases New Report on the Attorney General’s Twelve-City Community Policing Tour and Regional Justice ForumsRead the Press Release
As part of the Department’s commitment to working with communities and law enforcement to build stronger relationships and mutual trust, Attorney General Loretta E. Lynch today announced the release of the “Attorney General’s Community Policing Report,” a summary of the Attorney General’s twelve-city Community Policing Tour and the Department of Justice’s four Regional Justice Forums. The Attorney General’s Community Policing Tour Report builds on President Obama’s priorities to engage with law enforcement and other members of the community to implement key recommendations from the Final Report of the President’s Task Force on 21st Century Policing.
“This document is not meant to be a comprehensive, step-by-step guide, but, rather, a useful blueprint—a window into what citizens across the nation are doing to build stronger bonds between police and the people they serve,” said Attorney General Lynch. “I hope that this report will help inspire ideas and foster cooperation in communities from coast to coast—so that, together, we can continue our work toward a stronger, a safer, and a more united nation.”
During the Community Policing Tour, Attorney General Lynch visited 12 jurisdictions in two phases. Phase I focused on jurisdictions that had addressed difficult histories of mistrust between communities and law enforcement through strong collaboration and innovation. During this phase, the Attorney General traveled to Cincinnati, Ohio; Birmingham, Alabama; East Haven, Connecticut; Pittsburgh, Pennsylvania; Seattle, Washington; and Richmond, California. Phase II highlighted cities that had made outstanding progress implementing the six key pillars identified in the Final Report of the President’s Task Force on 21st Century Policing. During this phase, the Attorney General visited Miami/Doral, Florida; Portland, Oregon ; Indianapolis, Indiana; Fayetteville, North Carolina; Phoenix, Arizona; and Los Angeles, California, with each site focusing on one of the report’s pillars.
In the wake of the horrific tragedies of the summer of 2016 in Baton Rouge, Louisiana; Dallas, Texas; and St. Paul, Minnesota, the Attorney General and Deputy Attorney General Sally Q. Yates convened a series of Regional Justice Forums with members of the local law enforcement, youth, faith, non-profit and civil rights communities. These meetings were designed to help local stakeholders critically examine community policing issues in their respective cities and regions and to seek concrete solutions together. The Attorney General convened Justice Forums in Detroit, Michigan and Newark, New Jersey. The Deputy Attorney General hosted forums in Denver, Colorado, and Atlanta, Georgia.
This report chronicling the community policing work of the Department of Justice highlights innovative local approaches to policing that help foster stronger ties between officers and the people they are sworn to serve and protect. The document is meant to serve as a tool for communities and law enforcement agencies seeking to deepen their own commitment to community policing principles and practices.
The Department of Justice Releases New Report on the Attorney General’s Twelve-City Community Policing Tour and Regional Justice ForumsRead the Press Release
As part of the Department’s commitment to working with communities and law enforcement to build stronger relationships and mutual trust, Attorney General Loretta E. Lynch today announced the release of the “Attorney General’s Community Policing Report,” a summary of the Attorney General’s twelve-city Community Policing Tour and the Department of Justice’s four Regional Justice Forums. The Attorney General’s Community Policing Tour Report builds on President Obama’s priorities to engage with law enforcement and other members of the community to implement key recommendations from the Final Report of the President’s Task Force on 21st Century Policing.
“This document is not meant to be a comprehensive, step-by-step guide, but, rather, a useful blueprint—a window into what citizens across the nation are doing to build stronger bonds between police and the people they serve,” said Attorney General Lynch. “I hope that this report will help inspire ideas and foster cooperation in communities from coast to coast—so that, together, we can continue our work toward a stronger, a safer, and a more united nation.”
During the Community Policing Tour, Attorney General Lynch visited 12 jurisdictions in two phases. Phase I focused on jurisdictions that had addressed difficult histories of mistrust between communities and law enforcement through strong collaboration and innovation. During this phase, the Attorney General traveled to Cincinnati, Ohio; Birmingham, Alabama; East Haven, Connecticut; Pittsburgh, Pennsylvania; Seattle, Washington; and Richmond, California. Phase II highlighted cities that had made outstanding progress implementing the six key pillars identified in the Final Report of the President’s Task Force on 21st Century Policing. During this phase, the Attorney General visited Miami/Doral, Florida; Portland, Oregon ; Indianapolis, Indiana; Fayetteville, North Carolina; Phoenix, Arizona; and Los Angeles, California, with each site focusing on one of the report’s pillars.
In the wake of the horrific tragedies of the summer of 2016 in Baton Rouge, Louisiana; Dallas, Texas; and St. Paul, Minnesota, the Attorney General and Deputy Attorney General Sally Q. Yates convened a series of Regional Justice Forums with members of the local law enforcement, youth, faith, non-profit and civil rights communities. These meetings were designed to help local stakeholders critically examine community policing issues in their respective cities and regions and to seek concrete solutions together. The Attorney General convened Justice Forums in Detroit, Michigan and Newark, New Jersey. The Deputy Attorney General hosted forums in Denver, Colorado, and Atlanta, Georgia.
This report chronicling the community policing work of the Department of Justice highlights innovative local approaches to policing that help foster stronger ties between officers and the people they are sworn to serve and protect. The document is meant to serve as a tool for communities and law enforcement agencies seeking to deepen their own commitment to community policing principles and practices.
Suffolk Man Sentenced to 59 Years for 10 Armed RobberiesRead the Press Release
NORFOLK, Va. – Arthur Santiful, 27, of Suffolk, was sentenced today to 59 years in prison for 10 armed robberies he committed in August and September 2015 in South Hampton Roads and the Peninsula.
“Violent crime will be met with significant consequences,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “This sentence reflects the fair and measured judgment of the court in the case of two armed robbers, one who accepted responsibility for the harm he caused, and the other who did not.”
Santiful was found guilty on all counts on Sept. 12, 2016, after a four-day jury trial. According to trial testimony, Santiful and a co-conspirator, Michael Zeigler, robbed at gunpoint eight 7-Eleven stores, a hotel, and a pizza delivery driver during a six-week crime spree in August and September 2015. Santiful was armed during each of the robberies and witnesses testified that he shot at one robbery victim, pistol-whipped a second victim, and told several clerks that they would die if they did not hand over the money and cigarettes the men sought. In addition to the 10 charged robberies, Santiful was also charged with two counts of brandishing and discharging a firearm during a crime of violence, and with being a felon in possession of a firearm.
Zeigler pleaded guilty and accepted responsibility for his crimes. He was sentenced on Dec. 20, 2016, to 14 years in prison.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Martin Culbreth, Special Agent in Charge of the FBI’s Norfolk Field Office; Michael B. Boxler, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives’ (ATF) Washington Field Division; James A. Cervera, Chief of Virginia Beach Police; Tonya D. Chapman, Chief of the Portsmouth Police Department; Michael Goldsmith, Chief of Norfolk Police; Richard Myers, Chief of Newport News Police Department; and Terry L. Sult, Chief of Hampton Police Division, made the announcement after sentencing by U.S. District Judge Arenda L. Wright Allen. The case was prosecuted by Assistant U.S. Attorneys Joseph E. DePadilla and Andrew Bosse, and Special Assistant U.S. Attorney John F. Butler.
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. 2:15-cr-160.
Statement by Attorney General Loretta E. Lynch on the Departure of Joyce White Vance from the Northern District of AlabamaRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the planned departure of Joyce White Vance, U.S. Attorney for the Northern District of Alabama.
“Since the first year of the Obama Administration, U.S. Attorney Joyce White Vance has served the people of the Northern District of Alabama – and all of the American people – with compassion and integrity,” said Attorney General Lynch.
“During her tenure, she oversaw the development of a comprehensive initiative to tackle opioid and heroin addiction. She helped lead an ongoing investigation into abuse in Alabama prisons. She fought corruption and brought actions to protect the rights of immigrants. And she has been a valuable partner in the department’s efforts to improve relationships between police officers and the people they serve, including by welcoming me to Birmingham in 2015 during my Community Policing Tour. In these and in so many other ways, Joyce has been a dedicated servant of the law and a tireless champion of justice. I thank her for her outstanding contributions to the Department of Justice, and I wish her well in her future endeavors.”
Sinaloa Cartel Member Sentenced to Federal Prison for Conspiracy to Kill in a Foreign CountryRead the Press Release
In El Paso, 34-year-old Francisco Javier Pulido was sentenced yesterday to 24 years in federal prison followed by five years of supervised release and ordered to pay a $5,000 fine for the death of a Horizon City, TX, resident in September 2009 announced United States Attorney Richard L. Durbin, Jr., Federal Bureau of Investigation Special Agent in Charge Douglas E. Lindquist, El Paso Division, and Drug Enforcement Administration Special Agent in Charge Will Glaspy, El Paso Division.
On October 26, 2016, Pulido pleaded guilty to one count of conspiracy to kill, kidnap or injure in a foreign country. By pleading guilty, Pulido admitted to conspiring with others in the kidnapping and murder of Sergio Saucedo from his home in Horizon City on September 3, 2009. The kidnapers took Saucedo to Ciudad Juarez, Mexico, where he was murdered and mutilated in retaliation for the loss of a 670-pound marijuana load seized by authorities at the Sierra Blanca checkpoint.
With this sentencing, this investigation has resulted in federal convictions and prison sentences for five individuals in connection with the Saucedo kidnapping and murder. Rafael Vega and Cesar Obregon-Reyes each received life imprisonment; Cesar Pineda received 20 years imprisonment; and, Omar Obregon-Ortiz received 100 months imprisonment.
This case was investigated by agents with the Drug Enforcement Administration, Federal Bureau of Investigation, U.S. Border Patrol, El Paso County Sheriff’s Department and the El Paso County District Attorney’s office.
Shreveport man pleads guilty to threatening Washington, D.C., pizzeriaRead the Press Release
SHREVEPORT, La. – United States Attorney Stephanie A. Finley announced today that a Shreveport man pleaded guilty to calling a Washington, D.C., pizzeria and threating to shoot those there.
Yusif Lee Jones, 52, of Shreveport, pleaded guilty before U.S. District Judge S. Maurice Hicks Jr. to one count of interstate threatening communications. According to testimony at the guilty plea, on December 7, 2016, three days after the shooting at the Comet Ping Pong pizza shop in Washington, D.C., which was reported on by the national news media and generally referred to as “Pizzagate,” Jones called the Besta Pizza shop in Washington, D.C., and said he was trying to “save the kids” and threatened to “shoot everyone in the place.” Further investigation by the Washington, D.C., Metropolitan Police Department and the FBI traced the call to Jones in Shreveport. Jones admitted to making the threatening call and was arrested.
Jones faces up to five years in prison, three years of supervised release, restitution and a $250,000 fine. A sentencing date of April 12, 2017 was set.
The Federal Bureau of Investigation and the Washington, D.C., Metropolitan Police Department conducted the investigation. Assistant U.S. Attorney William J. Flanagan is prosecuting the case.
Shelbyville Woman Sentenced to 25 Years for Producing Images of Child PornographyRead the Press Release
FRANKFORT, Ky. – A Shelbyville, Ky., woman, previously convicted of photographing images of children engaged in sexually explicit conduct, has been sentenced to 25 years in federal prison.
On Wednesday, U.S. District Judge Gregory F. Van Tatenhove sentenced Melissa Torres, 37, for enticing a minor to engage in sexually explicit conduct for the purpose of producing a visual depiction of that conduct. He also ordered her to serve a lifetime of supervised release following the completion of her sentence. Under federal law, Torres must serve at least 85 percent of her prison sentence.
Torres admitted that, on September 22, 2014, she coerced two children under the age of 10 to engage in sexually explicit conduct and took video of the encounter. She later distributed the video.
The Shelbyville Police Department began an investigation after someone found the child pornography images and notified the police.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky; Amy Hess, Special Agent in Charge, FBI; and Danny Goodwin, Shelbyville Police Chief, jointly made the announcement.
The investigation was conducted by the FBI and the Shelbyville Police. Assistant U.S. David Marye prosecuted this case on behalf of the federal government.
Sentencings for January 12, 2017Read the Press Release
Esequiel De Jesus-Bello, 40, of Mexico, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on January 12, 2017, for illegal re-entry of a previously deported alien into the United States. Jesus-Bello was arrested in Douglas, Wyoming. He received time served, plus ten days, was ordered to pay a $100.00 special assessment, and is subject to deportation upon release from custody. This case was investigated by the U.S. Department of Homeland Security, Immigration and Customs Enforcement.
John Weber, 28, of Evanston, Wyoming, was sentenced by Federal District Court Judge Alan B. Johnson on January 12, 2017, for possession of child pornography. Weber was arrested in Evanston, Wyoming. He received 63 months of imprisonment, to be followed by 10 years of supervised release, and was ordered to pay a $100.00 special assessment, a $5,000 special assessment for victims of trafficking, and restitution in the amount of $2,500.00. This case was investigated by the Division of Criminal Investigation Internet Crimes Against Children Task Force.
Second Foreign Currency Exchange Dealer Pleads Guilty to Antitrust ConspiracyRead the Press Release
A foreign currency exchange (FX) dealer became the second person to plead guilty to conspiring to fix prices in the FX market, the Justice Department announced today.
According to the one-count information filed in the U.S. District Court for the Southern District of New York, Christopher Cummins was a dealer of Central and Eastern European, Middle Eastern and African (CEEMEA) currencies on the FX desk of a New York-based financial institution. From approximately January 2007 until July 2013, Cummins and FX dealers at competing institutions conspired to suppress and eliminate competition by fixing prices in CEEMEA currencies, in violation of the Sherman Act, 15 U.S.C. § 1. As part of this conspiracy, Cummins and his co-conspirators manipulated prices on an electronic FX trading platform through the creation of non-bona fide trades, coordinated the placement of bids and offers on that platform and agreed on currency prices they would quote specific customers, among other conduct. Under his plea agreement, Cummins has agreed to cooperate with the department’s ongoing investigation into the FX market.
“Collusion by FX dealers for the purpose of fixing foreign currency exchange rates is no different than collusion regarding traditional products and services that the Antitrust Division routinely prosecutes,” said Deputy Assistant Attorney General Brent Snyder of the Justice Department’s Antitrust Division. “The exchange rate manipulation pursued by the charged CEEMEA FX dealers and their co-conspirators, like any other form of price fixing, was intended to stymie free competition that promotes market integrity and fair pricing.”“The Federal Deposit Insurance Corporation Office of Inspector General (FDIC OIG) is dedicated to ensuring integrity in the financial services industry,” said Inspector General Jay N. Lerner of the FDIC OIG. “This is the second guilty plea in this price-fixing case and attests to the value of cooperative working relationships among law enforcement.”
In addition to the guilty plea by Cummins, another FX dealer pleaded guilty on January 4, 2017, to fixing prices of CEEMEA currencies, three individuals were charged on Jan. 10, 2017 for conspiring to fix prices and rig bids for the euro – U.S. dollar currency pair, and the Justice Department’s Criminal Division charged two FX executives with fraud, on July 20, 2016, for conspiring to defraud a client of their bank through a front running scheme. These individual charges follow guilty pleas by major banks. On May 20, 2015, Citicorp, JPMorgan Chase & Co., Barclays PLC and The Royal Bank of Scotland plc pleaded guilty at the parent level and agreed to pay collectively more than $2.5 billion in criminal fines for their participation in an antitrust conspiracy to manipulate the price of U.S. dollars and euros exchanged in the FX market.
This antitrust investigation is being conducted by the Antitrust Division’s New York Office with the assistance of the FDIC OIG and the FBI’s Washington Field Office. The Criminal Division’s Fraud Section also provided substantial assistance in this matter.
A violation of the Sherman Act, 15 U.S.C. § 1, carries a maximum penalty of ten years in prison and a $1 million fine for individuals. The maximum fine for a Sherman Act violation may be increased to twice the gain derived from the crime or twice the loss suffered by victims if either amount is greater than the statutory maximum.
The charge was brought in connection with the President Obama’s Financial Fraud Enforcement Task Force. The president established the task force to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants.
For more information about the task force, please visit www.StopFraud.gov. Anyone with information concerning price fixing or other anticompetitive conduct in the FX marketplace should contact the New York Office of the Antitrust Division at (212) 335-8000, call the Antitrust Division’s Citizen Complaint Center at (888) 647-3258 or visit www.justice.gov/atr/contact/newcase.html.
Cummins Information
Saint Paul Woman Sentenced to Two Years in Prison for Using Stolen Identities to File Fraudulent Income Tax ReturnsRead the Press Release
United States Attorney Andrew M. Luger today announced the sentencing of EBONY SHANTE YARBROUGH, 28, to two years in prison for aggravated identity theft. YARBROUGH pleaded guilty on August 12, 2016, before U.S. District Judge Patrick J. Schiltz in U.S. District Court in Minneapolis, Minn.
“Tax season is almost here and the sentencing of Ebony Yarbrough for filing false tax returns is a powerful reminder of what can happen when you decide to steal from honest taxpayers,” said Shea Jones, Special Agent in Charge of the St. Paul Field Office. “Through our partnership with the US Attorney’s Office and other law enforcement agencies, IRS Criminal Investigation’s Special Agents will continue the aggressive pursuit of those who would attempt to defraud America's tax system.”
According to the defendant’s guilty plea, between 2013 and 2015, YARBROUGH convinced friends and family members to allow her to file their state and federal income tax returns by claiming she knew how to prepare the returns and would charge less than a tax preparation service.
According to her guilty plea, YARBROUGH prepared taxpayers’ returns by claiming false Schedule C income characterized as “hair stylist,” “cleaner” or “exotic dancer.” Additionally, YARBROUGH included dependents on taxpayers’ returns by using stolen personal identifying information belonging to minors, enabling them to qualify for other tax credits. YARBROUGH’S scheme accounted for more than $500,000 in false state and federal claims.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS. The Minnesota Department of Revenue assisted in the investigation.
Assistant U.S. Attorney Kimberly A. Svendsen prosecuted the case.
Defendant Information: EBONY SHANTE YARBROUGH, 28
Saint Paul, Minn.Convicted: • Aggravated Identity Theft, 1 count
Sentenced: • 24 months in prison
• Restitution in the amount of $298,054.01SRCTec, LLC to Pay over $6.3 Million to Resolve False Claims Act AllegationsRead the Press Release
SYRACUSE, NEW YORK - SRCTec, which manufactures a lightweight counter mortar radar system (the “radar system”) and associated replacement parts pursuant to contracts with the Department of the Army, will pay over $6.3 million in consideration to resolve False Claims Act allegations concerning its invoicing for the radar system and spare parts, announced United States Attorney Richard S. Hartunian. SRCTec has separately agreed to a remediation plan, to be performed at its own expense, with respect to previously delivered products.
The radar system serves an important function for America’s warfighters by providing early warning of incoming mortar and rocket fire and information about the location from which that fire emanated (“source-of-fire”). This source-of-fire data enables a targeted counter-fire response. The radar system provides continuous 360-degree monitoring and source-of-fire data through a non-rotating 24-column array. Among other replacement parts, SRCTec produces column spares for use when a column for the radar system fails or is damaged or destroyed. Pursuant to SRCTec’s contract with the Army, “initial spares and ancillary items shall be form, fit and functionally interchangeable with the parts they are intended to replace.”
SRCTec became aware of anomalies in source-of-fire accuracy data in certain combinations of initial system columns and column spares in March 2013. At that time, SRCTec summarized the issues in a Problem Report uploaded to a database shared by SRCTec and the Army. SRCTec designated the Problem Report at a priority level that indicated that a work-around existed for the identified problem. Higher level priority designations were available but were not selected, although SRCTec did not know in March 2013 what caused the anomalies or have a solution that would eliminate them. Problem Reports at the priority level selected by SRCTec are part of the normal life cycle of the program, and problem reporting is not the exclusive method (under the applicable contracts or otherwise) for SRCTec to notify the Army of issues with the radar system.
Over the ensuing months after March 2013, SRCTec learned more about the circumstances in which the source-of-fire accuracy anomalies would manifest themselves and how they might be mitigated in the field. By August 2013, SRCTec described an increased risk of degraded source-of-fire accuracy as a “known” problem in an internal memorandum that was not shared with the Army. SRCTec did set forth certain additional material details concerning degraded source-of-fire accuracy in various additional Problem Reports also uploaded to the shared database, all of which were designated at the same priority level as the initial Problem Report, although SRCTec had not actually identified a work-around through at least the summer of 2013. A potential solution was eventually identified by SRCTec in March 2014, and in the fall of 2014 SRCTec began testing what would become the solution for newly manufactured systems and column spares.
In March 2015, SRCTec requested a meeting with the Army, which was held in April 2015. At the meeting, SRCTec disclosed how it learned of and ultimately solved the increased risk of degraded source-of-fire accuracy from the use of column spares and original system columns in certain combinations, explained the circumstances under which the increased risk was such that source-of-fire accuracy could potentially fall outside the required accuracy performance specification, explained how the increased risk of degraded source-of-fire accuracy could be mitigated, and advised that the systems’ ability to perform their sense and warn function was never impacted. Since April 2015, the Army has ensured that all fielded systems are operating without any increased risk of degraded source-of-fire accuracy, and all fielded systems are currently functioning within their source-of-fire performance parameters. There have been no reported field failures.
During the time period covered by the Settlement Agreement, SRCTec invoiced the Army for radar systems and column spares (which were verified as operable by the Army) at a cost of tens of millions of dollars. The increased risk of degraded source-of-fire accuracy from the use of column spares in certain combinations with original system columns would not have been identified by the fielded systems’ self-diagnostic testing nor necessarily been recognized by soldiers.
United States Attorney Hartunian said: “Our office is committed to ensuring that federal programs receive products that perform as paid for, and we pursue False Claims Act claims vigorously. The stakes are particularly high when the procurement involves protection for our nation’s warfighters. This settlement reflects the importance of the case, the fine work of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit and the Defense Criminal Investigative Service, and SRCTec’s disclosure of the problem and cooperation in addressing it.”
“The ability of our equipment to function as required is essential when it comes to purchase of equipment that protects the very lives and limbs of one of our most precious resources - our military members,” said Frank Robey, director of the U.S. Army Criminal Investigation Command’s Major Procurement Fraud Unit.
“This settlement demonstrates the continued commitment of the Defense Criminal Investigative Service (DCIS), partnering with Army CID, Major Procurement Fraud Unit, and the United States Attorney’s Office in the Northern District of New York, to protect the military services and its members from potential failures of warfighting systems,” said Special Agent in Charge Craig W. Rupert, DCIS Northeast Field Office, U.S. Department of Defense Inspector General. “DCIS will continue to tirelessly pursue cases like this in its mission to protect the warfighter and safeguard our national defense.”
The investigation and settlement were the result of a coordinated effort among the United States Attorney’s Office for the Northern District of New York, the United States Army Criminal Investigation Command, and the Defense Criminal Investigative Service. The United States was represented by Assistant U.S. Attorney Michael D. Gadarian.
Rocky River man indicted on methamphetamine and firearms chargesRead the Press Release
A Rocky River man was indicted on drug and firearms charges, said U.S. Attorney Carole S. Rendon and FBI Special Agent in Charge Stephen D. Anthony.
Jamshed Ahmad, 43, was arrested this morning. He was indicted on one count of possession with intent to distribute methamphetamine and one count of being a felon in possession of a firearm.
Ahmad had more than 50 grams of methamphetamine on July 12, 2016, according to the indictment.
On July 12, he possessed a Ruger LCP 380-caliber pistol and ammunition, despite a 2007 conviction for drug trafficking that made it illegal for him to have a firearm, according to the indictment.
If convicted, the court will determine the defendant’s sentence after a 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.
The case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by the FBI.
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.
Ringleader of Bank Fraud Scheme that Used Information Stolen by Wells Fargo Employees Sentenced to over 7 Years in Federal PrisonRead the Press Release
LOS ANGELES – The organizer of a bank fraud scheme in which Wells Fargo Bank employees stole customer account data – information that was used to impersonate scores of customers and steal well over a half-million dollars from their accounts – was sentenced today to 89 months in federal prison.
Ronald Charles Reed, 70, of Inglewood, was sentenced this afternoon by United States District Judge Fernando M. Olguin. In addition to the prison term, Judge Olguin ordered Reed to pay $580,332 in restitution to Wells Fargo Bank.
Reed pleaded guilty in March 2016 to bank fraud and aggravated identity theft.
Reed, who is also known as “Disco Ronnie,” admitted that he worked with former Wells Fargo employees and “runners” in a scheme that caused Wells Fargo to suffer approximately $580,000 in losses.
Reed recruited four Wells Fargo employees in 2013 and 2014, asked them to access the bank’s computer records, and then purchased personal identifying information belonging to bank customers. The stolen information included dates of birth, account numbers, driver’s license numbers, and social security numbers.
Reed provided this stolen information to the runners. Using fake IDs, the runners impersonated bank customers and made substantial cash withdrawals from the customers’ accounts. In some cases, the runners also used the customer’s account to deposit worthless checks and receive cash back. The fraudulent transactions were made at Wells Fargo branches across Southern California and in other states, including Minnesota and Nevada.
Reed also admitted that in 2014 he purchased personal identifying information for accounts at U.S. Bank. Unbeknownst to Reed, the information he bought was for undercover accounts supplied by a confidential informant who was working with law enforcement.
Over a 13-month period that ended in mid-2014, Reed’s scheme caused runners to withdraw approximately $580,332 from 75 accounts belonging to Wells Fargo customers and $12,000 from two undercover accounts at U.S. Bank.
“This defendant has a lengthy criminal history, much of which involved fraudulent schemes and identity theft, including a counterfeit credit card case in this district that led to a sentence of nearly five years in federal prison,” said United States Attorney Eileen M. Decker. “In the process of committing these crimes, he stole the identities and bank account funds from innocent people, creating unnecessary havoc in their lives. Innocent victims of identity theft deserve the protection of the criminal justice system, and this sentence attempts to achieve that goal.”
“Fraud ringleaders should be deterred by the strong hand of justice delivered in today’s sentence. We are proud to collaborate with our FBI partners by aggressively pursuing criminals attempting to exploit our nation's financial infrastructure, " said Rob Savage, Special Agent in Charge, U.S. Secret Service, Los Angeles Field Office.
“Mr. Reed mercilessly exposed sensitive information, violating his victims personal and financial security and leaving them vulnerable to additional fraud while convincing others to use their official position at the bank to steal from their employer,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “The FBI will continue to work with our partners at the Secret Service and investigators at financial institutions to detect insider crimes and hold the perpetrators accountable.”
The former bank employees who worked with Reed have all pleaded guilty and are pending sentencing. The investigation into the runners – who remain unidentified – remains ongoing. Anyone with information on any of these individuals should contact FBI Special Agent Watkins at (310) 477-6565.
This matter was jointly investigated by the Federal Bureau of Investigation and the United States Secret Service. Wells Fargo Bank and U.S. Bank fully cooperated during the investigation.
The case is being prosecuted by Assistant United States Attorney Christina T. Shay of the Violent and Organized Crime Section.
Prior Felon from Roswell Pleads Guilty to Violating Federal Firearms LawsRead the Press Release
ALBUQUERQUE – Nathaniel Eddie Madrid, 39, of Roswell, N.M., pled guilty this afternoon in federal court in Las Cruces, N.M., to violating the federal firearms laws by unlawfully possessing firearms and ammunition.
Madrid was arrested on April 18, 2016, on a criminal complaint charging him with being a felon in possession of firearms and ammunition and possession of a firearm not registered to him in the National Firearms Registration and Transfer Record (NFRTR) in Lincoln County, N.M. According to the complaint, law enforcement officers recovered three firearms, ammunition, marijuana and drug paraphernalia from Madrid’s vehicle. A search of the NFRTR also revealed that Madrid did not have any firearms registered in his name.
Madrid subsequently was indicted on Aug. 17, 2016, and charged with being a felon in possession of firearms and ammunition on Oct. 26, 2015, in Lincoln County. According to the indictment, Madrid was prohibited from possessing firearms or ammunition because of his prior convictions for possession of a controlled substance, contributing to the delinquency of a minor, breaking and entering, armed robbery with a deadly weapon, and being a felon in possession of a firearm. Court documents indicate that Madrid was on probation for a conviction for being a felon in possession of firearms and ammunition when he was arrested.
During today’s proceedings, Madrid pled guilty to the indictment without the benefit of a plea agreement. At sentencing, Madrid 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 Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Mexico State Police. Assistant U.S. Attorney Alfred J. Perez of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Port Orange Pill Mill Doctor Sentenced to More Than Eleven Years in Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Carlos E. Mendoza today sentenced Michael Morgan Dietch (60, Port Orange) to 11 years and 3 months in federal prison for distribution of Schedule II controlled substances outside the usual course of professional practice, without a legitimate medical purpose. He pleaded guilty on October 28, 2016.
According to court documents, Dietch was a licensed physician in Florida who, between June 2011 and August 2012, prescribed Schedule II, III, and IV controlled substances such as oxycodone, hydromorphone, hydrocodone, fentanyl, Morphine, and Methadone to 150 to 200 patients. During this time, he arranged via text message for patients to come to his apartment, where he would provide the prescriptions. Dietch saw as many as 18 patients per day and charged $100 to $150 in cash for an appointment that generally lasted less than 10 minutes.
Many of Dietch’s patients were drug addicts who sold and traded their prescription pills with Dietch’s knowledge. On two occasions, Dietch bonded two of his patients out of a local jail for drug-related charges and then kept them on as patients, writing prescriptions for them for controlled substances. Dietch also wrote prescriptions for some patients who would have them filled but then gave the pills back to him. Dietch would then use some of these pills himself and provide the remaining pills to others.
“This was a fitting sentence for someone who abused his physician’s license to peddle dangerous, deadly, addictive substances without any demonstrated medical need.” said Sheriff Michael Chitwood.
This case was investigated by Drug Enforcement Administration and the Volusia County Sheriff’s Office, in conjunction with the Volusia Bureau of Investigation. It was prosecuted by Assistant United States Attorney Shawn P. Napier.
Pittsburgh Tax Attorney and Owner of Iceoplex Sentenced to Prison for Employment Tax FraudRead the Press Release
A Pittsburgh, Pennsylvania man was sentenced to 48 months in prison today in the U.S. District Court for the Western District of Pennsylvania after being convicted of failing to collect, account for and pay over employment taxes following a jury trial in September 2016, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to court documents and the evidence presented at trial, between 2004 and 2015, Steven Lynch, 61, a tax attorney, co-owned and operated the Iceoplex at Southpointe, a recreational sports facility located in Washington County, Pennsylvania. Iceoplex included a fitness center, ice rink, soccer court, restaurant and bar. Lynch controlled the finances for these businesses and was responsible for collecting, accounting for, and paying over tax withheld from employee wages, and timely filing quarterly employment tax returns. The jury found that between 2012 through 2015, Lynch failed to timely pay over to the Internal Revenue Service (IRS) more than $790,000 in taxes withheld from the wages of the employees for these businesses.
“Companies deserve to compete on a level playing field,” said Principal Deputy Assistant Attorney General Ciraolo. “Business owners and operators who choose not to pay over to the United States the taxes that they withheld from their employees’ wages are stealing from the U.S. Treasury and should plan on facing prosecution and incarceration.”
“As the person who controlled the finances on behalf of the different Iceoplex businesses, Steven Lynch, a tax attorney, was entrusted with the significant responsibility to collect and turn over all IRS withholding taxes,” said Special Agent in Charge Akeia Conner of IRS Criminal Investigation (CI). “His failure to pay over the withheld taxes is a violation that IRS Criminal Investigation takes very seriously. Today, justice is served and Mr. Lynch is being held accountable for his criminal actions.”
In addition to the prison term imposed by U.S. District Judge Arthur Schwab, Lynch was ordered to serve three years of supervised release and to pay $793,145 in restitution to the IRS and a $75,000 fine.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office in the Western District of Pennsylvania for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Pittsburgh Tax Attorney and Owner of Iceoplex Sentenced to Prison for Employment Tax FraudRead the Press Release
WASHINGTON – A Pittsburgh, Pennsylvania man was sentenced to 48 months in prison today in the U.S. District Court for the Western District of Pennsylvania after being convicted of failing to collect, account for and pay over employment taxes following a jury trial in September 2016, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
According to court documents and the evidence presented at trial, between 2004 and 2015, Steven Lynch, 61, a tax attorney, co-owned and operated the Iceoplex at Southpointe, a recreational sports facility located in Washington County, Pennsylvania. Iceoplex included a fitness center, ice rink, soccer court, restaurant and bar. Lynch controlled the finances for these businesses and was responsible for collecting, accounting for, and paying over tax withheld from employee wages, and timely filing quarterly employment tax returns. The jury found that between 2012 through 2015, Lynch failed to timely pay over to the Internal Revenue Service (IRS) more than $790,000 in taxes withheld from the wages of the employees for these businesses.
“Companies deserve to compete on a level playing field,” said Principal Deputy Assistant Attorney General Ciraolo. “Business owners and operators who choose not to pay over to the United States the taxes that they withheld from their employees’ wages are stealing from the U.S. Treasury and should plan on facing prosecution and incarceration.”
“As the person who controlled the finances on behalf of the different Iceoplex businesses, Steven Lynch, a tax attorney, was entrusted with the significant responsibility to collect and turn over all IRS withholding taxes,” said Special Agent in Charge Akeia Conner of IRS Criminal Investigation (CI). “His failure to pay over the withheld taxes is a violation that IRS Criminal Investigation takes very seriously. Today, justice is served and Mr. Lynch is being held accountable for his criminal actions.”
In addition to the prison term imposed by U.S. District Judge Arthur Schwab, Lynch was ordered to serve three years of supervised release and to pay $793,145 in restitution to the IRS and a $75,000 fine.
Principal Deputy Assistant Attorney General Ciraolo commended the special agents of IRS-CI, who conducted the investigation, and Trial Attorneys Jeffrey Bender and Brittney Campbell of the Tax Division, who prosecuted the case. Principal Deputy Assistant Attorney General Ciraolo also thanked the U.S. Attorney’s Office in the Western District of Pennsylvania for their substantial assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Physician Sentenced for Illegally Distributing OxycodoneRead the Press Release
PITTSBURGH - A resident of Pittsburgh, has been sentenced in federal court to 5 years of probation, to include eightmonths of home detention, 250 hours community service and fined $50,000 on his conviction of possession with intent to distribute and distribution of Oxycodone, a Schedule II controlled substance, Acting United States Attorney Soo C. Song announced today.
Chief United States District Judge Joy Flowers Conti imposed the sentence yesterday on Dr. Alan Barnett, 69, of Pittsburgh.
According to information presented to the court, Dr. Barnett, a medical doctor, illegally distributed Oxycodone, a controlled substance. On December 1, 2015, Dr. Barnett was interviewed by agents of the Drug Enforcement Administration and Federal Bureau of Investigation and surrendered his Drug Enforcement Administration License.
Assistant United States AttorneyRobert S. Cessar prosecuted this case on behalf of the government.
Acting United States Attorney Song commended the Federal Bureau of Investigation and Drug Enforcement Administration for the investigation leading to the successful prosecution of Barnett.
Philadelphia Man Found Guilty of Defrauding the Federal Supplemental Nutrition Assistance ProgramRead the Press Release
Philadelphia - a federal jury in Philadelphia convicted Abdoulaye Diallo on all counts of an indictment charging him with defrauding the federal Supplemental Nutrition Assistance Program (SNAP), formerly known as the Food Stamp Program, and with conspiring to do so, announced Acting United States Attorney Louis D. Lappen. Diallo owned and operated the Brothers Food Market, a grocery store on Germantown Avenue near Venango Street in Philadelphia. The jury convicted Diallo of conspiring with another individual to buy SNAP benefits for cash from those who had SNAP benefit cards (also known as PA Access cards) between September 2011 and February 2015. The jury also found Diallo guilty of exchanging SNAP benefits for cash on five different dates during that period, each of which constituted wire fraud and SNAP benefit fraud. The amount of money charged to the SNAP Program varied from $300 to almost $600 for each transaction.
The case was tried before United States District Judge Cynthia M. Rufe. Judge Rufe will sentence the defendant at a later date. The court did not set a sentencing date.
Diallo’s convictions were on six counts of wire fraud, six counts of defrauding the SNAP Program, and one count of conspiracy to do so. Diallo faces a maximum sentence of 20 years on each wire fraud count, and five years imprisonment on each SNAP fraud count and on the one conspiracy count. The court could also impose a fine, order forfeiture and order that Diallo pay restitution.
The SNAP Program is administered by the Food and Nutrition Service of the United States Department of Agriculture. It is intended to provide funds to assist low income families in purchasing food.
The case was investigated by the Office of Inspector General, United States Department of Agriculture and by Homeland Security Investigations, with the assistance of the Philadelphia Police Department. The case was tried by Assistant United States Attorneys Floyd J. Miller and Albert S. Glenn.
Philadelphia Man Charged with Bank FraudRead the Press Release
An Indictment[1] was returned today charging Ansu Sanoe, 26, of Philadelphia, Pennsylvania, with 2 counts of bank fraud, announced Acting United States Attorney Louis D. Lappen.
The Indictment alleges that Sanoe and his co-schemers posed as other people using false identification documents, opened up false business bank accounts at TD Bank and Citizens Bank, made deposits of counterfeit checks into those bank accounts, wired funds between the accounts, and withdrew the funds before the banks realized that the checks were fraudulent.
Sanoe faces a maximum sentence of 60 years’ incarceration, a five-year period of supervised release, a fine of $2,000,000, and restitution of at least $125,000.
The case was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
[1] An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty
Orlando Man Convicted of Credit Card FraudRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Akeitha Mumtaz Warner (29, Orlando) guilty of possessing 15 or more counterfeit access devices (credit cards) with the intent to defraud. He faces a maximum penalty of 10 years in federal prison. His sentencing hearing is scheduled for April 3, 2017. Warner and his co-defendant, Ricardo Delgado-George (29, Kissimmee), were indicted on October 12, 2016. Delgado-George pleaded guilty to fraud-related charges on December 19, 2016, and is scheduled to be sentenced on March 13, 2017.
According to court documents and evidence presented at trial, Warner and Delgado-George were stopped by an Osceola County Sheriff’s deputy and found to be in possession of more than 100 counterfeit credit and debit cards, hundreds of account numbers, and equipment that could be used to re-encode cards. Both men admitted to using counterfeit cards at various central Florida stores and gas stations.
This case was investigated by the United States Secret Service and the Osceola County Sheriff’s Office. It is being prosecuted by Assistant United States Attorney Embry J. Kidd.
New Orleans Man Sentenced for Heroin DistributionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DELRONE MOORE, age 39, of New Orleans, was sentenced today after previously pleading guilty to two counts of distribution of heroin.
U.S. District Judge Nannette Jolivette Brown sentenced MOORE to serve 45 months imprisonment to be followed by 3 years of supervised release.
According to court documents, in the fall of 2015, a Jefferson Parish Sheriff’s Office detective conducted controlled undercover purchases of heroin from MOORE. On October 14, 2015, the undercover detective met with MOORE in Kenner, buying approximately half of an ounce of heroin from MOORE. On November 12, 2015, the undercover detective again met with MOORE in Kenner and conducted a second controlled undercover purchase, buying approximately one ounce of heroin from MOORE. Both of the hand-to-hand transactions took place in the undercover detective’s vehicle and were captured on that vehicle’s audio and video recording system.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Jefferson Parish Sheriff’s Office. Assistant United States Attorney Nicholas D. Moses was in charge of the prosecution.
New Orleans Man Indicted on Murder, Carjacking, Robbery, Drug and Firearms ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that KWAME FLEMING, age 26, of New Orleans, was indicted today for charges of committing murder through use of a firearm, conspiracy to commit carjackings, conspiracy to commit Hobbs Act robbery, conspiracy to distribute and possess with intent to distribute marijuana, brandishing and discharging firearms during crimes of violence, and other offenses.
According to the Indictment, FLEMING and others known to the Grand Jury conspired to distribute and possess with intent to distribute marijuana. In furtherance of that conspiracy, FLEMING and others murdered Jacquez Young in Gretna, Louisiana, on June 1, 2015.
FLEMING is also charged with conspiring to commit carjackings, and for brandishing firearms during those carjackings. The Indictment outlines four separate carjackings or attempted carjackings that FLEMING or his co-conspirators committed. First, on May 31, 2015, FLEMING’s co-conspirators carjacked a 2015 white Dodge Ram in New Orleans. The next day, on June 1, 2015, FLEMING and his co-conspirators attempted to carjack a 2013 gold Ford F-250 in New Orleans, but were unsuccessful. Shortly after that, on the same day, FLEMING and his co-conspirators successfully carjacked a 2014 Chevrolet Cruze in New Orleans. On June 4, 2015, FLEMING and his co-conspirators carjacked a 2004 GMC Yukon in Baton Rouge, Louisiana, which they drove back to New Orleans. FLEMING is also charged separately for his participation in three of the carjackings or attempted carjackings.
FLEMING is also charged with committing a Hobbs Act robbery on June 4, 2015, and for discharging a firearm during that robbery. According to the Indictment, FLEMING and his co-conspirators, while in the New Orleans area, arranged to steal a quantity of marijuana and synthetic marijuana from a person through the use of actual and threatened violence, which later occurred in Mississippi.
If convicted of murder through use of a firearm, FLEMING faces a maximum sentence of life imprisonment. If convicted of carjacking or attempted carjacking, FLEMING faces a maximum sentence of 15 years imprisonment on each count. If convicted of brandishing a firearm during a crime of violence, FLEMING faces a minimum of 7 years to a maximum of life imprisonment on each count. If convicted of Hobbs Act robbery, FLEMING faces a maximum sentence of 20 years imprisonment. If convicted of discharging a firearm during a crime of violence, he faces a minimum of 10 years to a maximum of life imprisonment. If convicted of conspiracy to distribute and possess with intent to distribute marijuana, FLEMING faces a maximum sentence of 5 years imprisonment. If convicted of conspiracy to commit carjackings, he faces a maximum sentence of 5 years imprisonment. If convicted of conspiracy to use firearms during drug trafficking and crimes of violence, he faces a maximum sentence of 20 years imprisonment.
U.S. Attorney Polite reiterated that the Indictment is merely an allegation and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Jefferson Parish District Attorney’s Office, the Jefferson Parish Sheriff’s Office, the Zachary Police Department, and the Wilkinson County Sheriff’s Office for investigating this matter. Assistant United States Attorney Jonathan L. Shih and Trial Attorney Joseph K. Wheatley from the Department of Justice are in charge of the prosecution.