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Tuesday 25 October 2016
Andover Man Pleads Guilty to Defrauding Union Benefit FundsRead the Press Release
BOSTON – An Andover man pleaded guilty today to paying employees in cash in order to avoid paying union benefits and employment taxes.
Ronald P. Mulcahey, 53, pleaded guilty today to making false statements in documents submitted to benefit plans subject to the provisions of Title I of the Employee Retirement Income Security Act of 1974 (ERISA). Mulcahey also pleaded guilty to tax evasion. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Jan. 19, 2017.
U.S. Attorney Carmen M. Ortiz said, “We remain committed to protecting the rights of union members who rely on ERISA funds which provide them with healthcare, pensions, and other services. The failure of employers to make appropriate contributions to these funds not only violates federal law, it endangers the funds’ fiscal viability and jeopardizes union members who need the services they provide.”
“Ronald Mulcahey used a cash payroll to conceal actual hours worked by his employees in order to avoid paying benefit plan contributions into the Massachusetts Laborer’s Benefit Funds, and to avoid paying federal employment taxes. Actions by employers like Mulcahey have an adverse effect on the American workforce. The Office of Inspector General will continue to work with our law enforcement partners to ensure that employers fulfill their obligations when it comes to remitting benefit plan contributions to employee benefit funds,” stated Michael C. Mikulka, Special Agent in Charge of the New York Regional Office, U.S. Department of Labor, Office of Inspector General.
“IRS Criminal Investigation takes employment tax violations very seriously because the employees are the ultimate victims,” said Joel P. Garland, Special Agent in Charge of the Boston Field Office. “By paying cash wages off the books, Mr. Mulcahey risks future Social Security, Unemployment or Medicare benefits for his employees. The loss of revenue also damages our nation’s system of taxation.”
Mulcahey was the owner and sole corporate officer of Wing Inc. Specialty Trades, EWT-Fireproofing, Inc., and Wing Environmental, Inc. Wing Environmental provided asbestos abatement and demolition services. The company had a collective bargaining agreement with Laborer’s International Union of North America, Local 1421. As a union employer, Wing Environmental was required to accurately report to the union benefit funds the number of hours worked by its union employees and to make the corresponding contributions to the funds. Between January 2008 and June 2011, Mulcahey engaged in a scheme through Wing Environmental to defraud the union benefit funds by paying some of those employees in cash. By keeping the cash payments off-the-books, Mulcahey and Wing Environmental falsely underreported the union workers’ hours in order to avoid making the required hourly payments to the benefit funds. Union benefit funds are used to provide healthcare, pensions and other services to union members.
Wing Specialty Trades and EWT-Fireproofing were non-union companies that provided asbestos abatement, demolition and fireproofing services. All of Mulcahey’s companies were required by federal tax law to accurately report their total payments to employees and to withhold and pay the IRS the applicable employment and income taxes. Between January 2008 and June 2011, Mulcahey defrauded the IRS by paying certain employees of all three of his companies in cash. By keeping the cash payments off-the-books, Mulcahey falsely underreported his workers’ wages to the IRS and avoided paying employment taxes on the unreported wages.
U.S. Attorney Ortiz; DOL-OIG SAC Mikulka; IRS-CI SAC Garland; and Susan A. Hensley, Regional Director of the Employee Benefits Security Administration made the announcement today. Assistant U.S. Attorneys Kristina E. Barclay and Ryan DiSantis of Ortiz’s Public Corruption Unit are prosecuting the case.
Alpine Man Charged with Intentionally Setting U.S. Post Office AblazeRead the Press Release
In Alpine today, federal authorities arrested 59-year-old Karl Henry Peterson for allegedly setting the U.S. Post Office in Alpine ablaze last week announced United States Attorney Richard L. Durbin, Jr. and Inspector in Charge Adrian Gonzalez, U.S. Postal Investigation Service, Houston Division.
A criminal complaint filed today in Alpine charges Peterson with one count of arson involving a federal facility. According to the complaint, Peterson set fire to the U.S. Post Office during the early morning hours on October 20, 2016. As a result, the building suffered extensive damage.
Peterson, who remains in federal custody, will have his initial hearing before U.S. Magistrate Judge David Fannin tomorrow morning at 9:30 at the Federal Courthouse in Alpine. Peterson faces between five and 20 years in federal prison upon conviction.
This case is being investigated by the United States Postal Inspection Service together with the Texas State Fire Marshal’s Office and the Alpine Police Department. Assistant United States Attorney James J. Miller, Jr., is prosecuting this case on behalf of the Government.
A criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is considered innocent until proven guilty in a court of law.
2016 Eastern District Election Officer AppointedRead the Press Release
RALEIGH - United States Attorney John Stuart Bruce announced today that Assistant United States Attorney (AUSA) David A. Bragdon will lead the efforts of the U.S. Attorney’s Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Bragdon has been appointed to serve as the District Election Officer (DEO) for the Eastern District of North Carolina, and in that capacity is responsible for overseeing the District’s handling of any complaints of election fraud or voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Bruce said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice is dedicated to protecting the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise may exercise it if they choose to do so; and that those who seek to corrupt the voting process are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Bruce stated that AUSA/DEO Bragdon will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 919-856-4808.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The Raleigh FBI field office can be reached by the public at 919-380-4500.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
Monday 24 October 2016
Washington Man Pleads Guilty to Possessing an Identification Document with the Intent to Defraud the United StatesRead the Press Release
BOISE – Keith Condict, 42, of Gig Harbor, Washington, pleaded guilty today to misdemeanor possession of an identification document with the intent to defraud the United States, U.S. Attorney Wendy J. Olson announced.
According to the filed plea agreement, Condict applied for a job at Kootenai Health ENT Center, in Kootenai County, Idaho, in June 2012. As part of his application, Condict presented a falsified Idaho audiologist license. As a result of this false information, Kootenai Health allowed Condict to work as an audiologist and to bill health care benefit programs, including Medicare and Medicaid, for treatment. Condict knew that Medicare and Medicaid were federally sponsored health benefit programs and he acted with the intent that the false license be used to defraud the United States. Condict worked under his false license for approximately one month before he was granted an actual license. However, when Kootenai Health learned of the false representation, they fired Condict and paid back the health benefit programs for amounts billed based on the Condict’s unlicensed services. In his plea agreement, Condict agrees to pay restitution to Kootenai Health in the amount of $28,266.58.
The charge of possessing an identification document with the intent to defraud the United States is punishable by not more than one year in prison, not more than one year of supervised release, and a $100,000 maximum fine.
Sentencing is scheduled for January 10, 2017, before Chief U.S. Magistrate Judge Ronald E. Bush.
The case was investigated by the U.S. Department of Health and Human Services, Office of Inspector General / Office of Investigations and the Idaho Bureau of Occupational Licenses.
Vinton Woman Who Provided Rifle Used in Fatal Shooting Sentenced to 46 Months ImprisonmentRead the Press Release
A woman who illegally provided a rifle to her minor child was sentenced today to more than three years in federal prison.
Robyn Lynn Merchant, a/k/a Robyn Lynn Winterroth, 53, from Vinton, Iowa, received the prison term after a May 23, 2016, guilty plea to transferring a firearm to a prohibited person (a drug user).
Evidence at the guilty plea hearing and other court proceedings showed that on February 23, 2015, Merchant provided her 16-year-old son with a Walther HK MP5 .22 caliber rifle. The following day, police responded to Merchant’s residence in Vinton after receiving a 911 call that a shooting had taken place. When police arrived, they discovered that a 14-year-old girl had been shot in an upstairs bedroom. That bedroom belonged to Merchant’s 16-year-old son. Merchant’s son was present in his bedroom at the time of the shooting. Also present in the bedroom were two additional 16-year-old males. The 14-year-old girl eventually passed away as a result of the gunshot wound.
At the time Merchant provided her son with the firearm, he was an unlawful user of marijuana. Her son regularly used marijuana in Merchant’s home, and a urine sample obtained from him the night of the shooting tested positive for marijuana. The night of the shooting, police saw evidence of recent drug and alcohol use in plain view in Merchant’s son’s bedroom. Police eventually seized a marijuana smoking pipe, drug paraphernalia, approximately seven ounces of marijuana individually packaged into eight separate plastic bags, and drug packaging materials from the bedroom.
During the investigation, law enforcement learned that Merchant and her son conspired with each other to distribute marijuana from their residence. Some of their customers included other high school students who were friends of Merchant’s son.
Merchant was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Merchant was sentenced to 46 months imprisonment. A special assessment of $100 was imposed. She must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
“From any perspective, this case is a terrible tragedy,” said U.S. Attorney Kevin W. Techau. “A 14-year-old girl is dead – and a mother is going to prison – because the mother provided her drug-using son with a gun. This case demonstrates why guns and drugs are a deadly combination.”
Merchant is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Vinton Police Department, the Iowa Department of Public Safety, the Department of Homeland Security, United States Immigration and Customs Enforcement, Homeland Security Investigations, and the Bureau of Alcohol Tobacco and Firearms.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-0017.
Follow us on Twitter @USAO_NDIA.
United States Attorneys Announce Election Day ProgramRead the Press Release
United States Attorneys Kevin W. Techau and Kevin E. VanderSchel of the Northern and Southern Districts of Iowa, respectively, announced today that Daniel Tvedt and Virginia Bruner will lead the efforts of their Offices in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. These Assistant United States Attorneys have been appointed to serve as District Election Officers for the Northern and Southern Districts of Iowa, and in that capacity are responsible for overseeing the handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney VanderSchel said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
United States Attorney Techau said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorneys Techau and VanderSchel stated that District Election Officers will be on duty in the Northern and Southern Districts while the polls are open. They can be reached by the public at the following telephone numbers: (319) 363-6333 (Cedar Rapids) and (515) 473-9300 (Des Moines).
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (319) 366-2461 (Cedar Rapids) or (515) 223-4278 (Des Moines).
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Statement Relating to November 2016 ElectionsRead the Press Release
United States Attorney Ripley Rand announced today that Assistant United States Attorney (AUSA) Robert M. Hamilton will lead the efforts of the United States Attorney’s Office for the Middle District of North Carolina in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Hamilton has been appointed to serve as the District Election Officer (DEO) for the Middle District of North Carolina, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Rand said, "Every citizen must be able to vote without interference or discrimination and to have that vote counted fairly and accurately. The Department of Justice will act promptly and aggressively to ensure that the integrity of the election process is protected."
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. United States Attorney Rand stated that AUSA/DEO Hamilton will be on duty in this District while the polls are open on November 8, 2016, to respond to complaints of election fraud or voting rights abuses and to ensure that such complaints are directed to the appropriate authorities. He can be reached by the public at the following telephone number: 336-333-5351.
In addition, the FBI will have Special Agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. The local FBI field office can be reached by the public at 336-855-7770.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Rand said, "Ensuring that our elections are both free and fair depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to our Office, the FBI, or the Civil Rights Division."
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United States Attorney Names District Election OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced today that Assistant U.S. Attorney (AUSA) Kevin Koliner will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Koliner has been appointed to serve as the District Election Officer (DEO) for the District of South Dakota, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses, in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted. The Department of Justice will act promptly and aggressively to protect the integrity of the election process,” said U.S. Attorney Seiler.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Seiler stated that AUSA/DEO Koliner will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: 605-357-2354.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 605-334-6881.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division,” added U.S. Attorney Seiler.
United States Attorney Donald S. Boyce Announces Election Day Anti-Fraud EffortsRead the Press Release
United States Attorney, Donald S. Boyce, announced today that Assistant United States Attorney (AUSA), Norman R. Smith, will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Smith has been appointed to serve as the District Election Officer (DEO) for the Southern District of Illinois, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Boyce said, "Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process."
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it
are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Boyce stated that AUSA/DEO Smith will be on duty in this District while the polls are open. He can be reached by the public at the following telephone numbers: (618) 628-3700, (618) 628-3743 or (618) 799-8775.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (618) 397-4401.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Boyce said, "Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division."
United States Attorney Announces Procedures to Handle Election Fraud and Voting Rights AbusesRead the Press Release
United States Attorney David Rivera announced today that Assistant United States Attorneys (AUSA’s) Henry Leventis and Steve Jordan will lead the efforts of his office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA’s Leventis and Jordan have been appointed to serve as the District Election Officers for the Middle District of Tennessee and in that capacity are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” said U.S. Attorney Rivera. “The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. The Department of Justice will ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, AUSA’s Leventis and Jordan will be on duty in this district while the polls are open. They can be reached by the public at the following telephone number: 615-289-8574.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 615-232-7500.
Complaints about possible violations of the federal voting rights laws can also be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Rivera said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my office, the FBI, or the Civil Rights Division.”
U.S. Department of Justice Nationwide Election Day ProgramRead the Press Release
CHARLOTTE, N.C. – U. S. Attorney Jill Westmoreland Rose announced today that Michael E. “Mike” Savage and Richard Edwards, Assistant United States Attorneys (AUSAs) in the Charlotte and Asheville offices of the U.S. Attorney for the Western District of North Carolina will lead the efforts of this Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSAs Savage and Edwards have been appointed to serve as District Election Officers (DEOs) for the Western District of North Carolina and in that capacity they are responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Rose said, “Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on election day on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, U.S. Attorney Rose stated that AUSA/DEOs Mike Savage and Don Gast will be on duty in this District while the polls are open. They can be reached by the public at the following telephone numbers:
In Charlotte: 704-344-6222 and in Asheville: 828-271-4661
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at 704-672-6100.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Rose said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
U.S. Attorney’s Office, SPLC Hold Student Success ConferenceRead the Press Release
BIRMINGHAM – The U.S. Attorney’s Office for the Northern District of Alabama and the Southern Poverty Law Center will host a day-long conference Thursday, Oct. 27, that will explore strategies to keep children in schools and out of the juvenile and criminal justice systems.
The Student Success Summit will be held at the Harbert Center, 2019 Fourth Ave. North, in Birmingham, from 10 a.m. to 5 p.m. The event is free and open to the public.
Educators, law enforcement personnel, elected officials and stakeholders from across the state are expected to take part in the event. Members of the state’s Prison Reform Task Force and At-risk Youth Task Force have also been invited.
Panels will focus on successful school discipline models; pitfalls that cause children to engage in negative behavior; strategies to limit youth court-involvement; and access to educational services for youth held in detention and correctional facilities.
Speakers will include representatives from the U.S. Attorney’s Office, U.S. Department of Justice, the Southern Poverty Law Center, state and local education agencies, law enforcement and social services.
The conference will focus on curtailing the use of suspensions, expulsions, school-based arrests and excessive-force practices that too often, particularly among African-American students, lead to the school-to-prison pipeline. It will also include a discussion about what to do about children who are trapped in the criminal justice system, as well as the needs of youth held in detention.
For more information, contact Ashley Levett, Southern Poverty Law Center, (334) 296-0084, or at [email protected], or Jeremy Sherer at [email protected].
U.S. Attorney’s Office to Monitor Election Complaints in KansasRead the Press Release
TOPEKA, KAN. - A federal prosecutor will be on duty during election day to respond to complaints of possible election fraud and voting rights violations in Kansas, Acting U.S. Attorney Tom Beall said today.
Assistant U.S. Attorney Leon Patton will be available to the public at 913-551-6730 while the polls are open on Nov. 8.
“Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud,” Beall said. “We will act promptly and aggressively to protect the integrity of the election process.”
Beall said he does not expect any problems during the voting. He noted, however, that there are penalties under federal law for any efforts to fraudulently influence the outcome of the election or to improperly prevent another person from exercising the right to vote.
Patton will join other federal prosecutors nationwide as part of the Justice Department’s election-day monitoring program. They will work in consultation with Justice Department headquarters.
The FBI’s Kansas City Field Office will also have Special Agents available to receive allegations of election fraud, intimidation, suppression, and other election abuses. The public can provide information regarding possible election crimes to the FBI’s Kansas City Field Office’s toll-free hotline, 1-855-527-2847, or email [email protected].
Citizen complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington by phone at 1-800-253-3931 or 202-307-2767, by fax at 202-307-3961, by email to [email protected], or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php .
Any questions involving state or local issues may be referred to the Elections Division of the Kansas Secretary of State’s Office at 1-800-262-8683, or to the pertinent county election office.
U.S. Attorney’s Office Settles Lawsuit Against Ironworkers District Council of New England Pension Fund to Enforce Rights of U.S. Navy ReservistRead the Press Release
BOSTON – The U.S. Attorney’s Office reached a settlement with the Ironworkers District Council of New England Pension and Annuity Funds (Funds) and their trustees, resolving claims that they violated the Uniformed Services Employment and Reemployment Rights Act of 1994 (USERRA) when they refused to give Thomas Shea, a U.S. Navy Reserve Member, credit toward his pension and annuity funds while he served on active duty military service.
“It is our responsibility to ensure that servicemembers who make great sacrifices to protect our country are not disadvantaged because of their military service,” said United States Attorney Carmen Ortiz. “We will continue our vigorous enforcement of USERRA and hold employers who violate those protections accountable.”
Under the terms of the settlement agreement, Shea received a lump sum payment of $180,000 for back pension and annuity payments and monthly pension payments of $2,600.
The settlement agreement resolves the complaint filed by the U.S. Attorney’s Office on behalf of Shea in October 2013 which alleged that the Funds and their Trustees violated USERRA when they refused to credit Shea with service time for his multiple tours of duty in Iraq, Afghanistan, Bahrain, and Kuwait, because he did not satisfy the Ironworker Pension Plan’s reemployment requirements, which were more burdensome than those under USERRA.
USERRA requires that servicemembers who leave their civilian jobs to serve in the military be treated as not having incurred a break in service with regard to their pension plans and other employment benefits. USERRA further provides that each period served by a servicemember shall, upon reemployment, be deemed to constitute service with the employer maintaining the plan for the purpose of determining the non-forfeitability of the person’s accrued benefits and the accrual of benefits under the plan.
In February 2016, the Court found that the Ironworkers’ Pension Plan violated USERRA by imposing additional requirements beyond what is required under USERRA on servicemembers seeking pension credit for military service. Under the Ironworker’s Pension Plan, returning servicemembers could not receive credit for their military service unless they (1) worked at least 300 hours in the one-year period following discharge from the military; and (2) accrued 2.5 pension credits, which is equal to 3,000 hours, in the subsequent five-year period following release from active duty.
This case was investigated by the U.S. Department of Labor and the Veterans’ Employment and Training Service. Assistant U.S. Attorney Jennifer A. Serafyn, Chief of Ortiz’s Civil Rights Unit, and Special Litigation Counsel Andrew Braniff and Trial Attorney Nadia Said of the Justice Department’s Civil Rights Division, Employment Litigation Section, handled the case.
The protection of servicemembers’ rights is a priority for the U.S. Attorney’s Office. Additional information about USERRA can be found at www.usdoj.gov/crt/emp, www.servicemembers.gov and www.dol.gov/vets/programs/userra/main.htm.
The Civil Rights Unit of the U.S. Attorney’s Office was established in 2015 with the mission of enhancing federal civil rights enforcement. For more information on the Office’s civil rights efforts, please visit www.justice.gov/usao-ma/civil-rights.
U.S. Attorney’s Office Launches Program in Elementary Schools to Teach Fifth Graders to Make Good ChoicesRead the Press Release
Assistant U. S. Attorney Marietta Geckos (619) 546-6952
NEWS RELEASE SUMMARY – October 21, 2016
SAN DIEGO - The United States Attorney’s Office, in partnership with San Diego Unified School District, has launched a law-related elementary school program aimed at giving fifth-grade students the tools to sharpen positive decision-making skills and resist pressures to join gangs, take drugs or partake in other harmful behaviors. The program is designed to teach kids that their decisions have consequences.
More than 30 volunteers from the U.S. Attorneys’ Office, including federal prosecutors and administrative staff, and the U.S. Coast Guard, are spending time in local classrooms, teaching a program called “Project LEAD” to 270 fifth graders in nine classes at five schools.
The eight-week curriculum, which includes class discussion, short skits and small-group activities, is designed to help the children develop the skills to reject alcohol, drugs, gang membership, criminal activity, truancy, bigotry, bullying and other behaviors that have extremely negative consequences for youth.
The program also serves as an informal mentoring program where students are guided by volunteers with either government, administrative, community service, criminal justice, or military backgrounds, who encourage the students to reach high for their goals.
“We can’t solve all of society’s problems by prosecuting and incarcerating people,” said U.S. Attorney Laura Duffy. “The best way to stop crime is to prevent it. This is a program that gives children the tools they need to choose a positive path for a productive, happy life. These fifth-graders will be our leaders in 20 years. There is no greater investment our society can make.”
The participating elementary schools for the inaugural launch of this U.S. Attorney-administered program are Valencia Park, Johnson, Emerson-Bandini, Logan and St. Rita’s.
The program is patterned after the original 20-week Project LEAD that goes back to 1993 – and is a collaboration between the Los Angeles District Attorney’s Office and the Constitutional Rights Foundation. Project LEAD is taught in 46 Los Angeles elementary schools and has become a national model.
Project LEAD arrived in San Diego in 2012 at the urging of U.S. District Judge Gonzalo P. Curiel. While a federal prosecutor in Los Angeles from 2002-2006, Judge Curiel was a volunteer for Project LEAD in Los Angeles.
After his appointment to the San Diego Superior Court, he encouraged the San Diego County District Attorney’s Office and La Raza Lawyers Association in San Diego to sponsor classrooms at Laura Rodriguez Elementary and Johnson Elementary schools.
Judge Curiel has supported LEAD since 2002 because it offers positive role models to children who may not have any and helps them avoid bad choices such as using drugs, joining gangs and skipping school. “This program shows kids they can be anything they want to be – a lawyer, a doctor, an engineer, an architect - anything.”
This year, U.S. Attorney Duffy sought to create a federal version of Project LEAD and expand the number of children participating in San Diego by dispatching teams of volunteers to five elementary schools in an effort to replicate the successes of Los Angeles. Duffy credited San Diego Unified Superintendent Cindy Marten, the principals of the five elementary schools and a team of over 30 enthusiastic volunteers with making the program possible.
This implementation of Project LEAD in San Diego is a collaboration between the U.S. Attorney’s Office, the San Diego Unified School system and the San Diego Commission of Gang Intervention and Prevention which adopted this prevention program in July 2016.
Duffy hopes to expand the program to additional school next fall.
Since 2013, President Obama and then-Attorney General Eric Holder have stressed that federal law enforcement entities should make a stronger commitment to prevention and reentry efforts, in addition to the more traditional role of law enforcement through the various facets of the “Smart on Crime” initiatives. Prevention, one of the tenants of Smart on Crime, is the main goal for Project LEAD.
For more information, contact:
Assistant U. S. Attorney Marietta I. Geckos (619) 546-6952
Rosa Vazquez, Guidance Counselor at Logan Elementary School. 619-344-6500 x3055
Mike Candelario, Counselor at Valencia Park Elementary School. 619-344-3500 x 3557
Rev. Rickey Laster, Executive Director of the City of San Diego’s Commission on Gang Prevention and Intervention. 619-533-4873. [email protected]
Lt. Timothy Nicolet, United States Coast Guard Public Affairs. [email protected] 619-278-7020
Jennifer Rodriguez, San Diego Unified School District – Public Affairs – 619-725-5598
Kerry Bigornia, Public Affairs Division Chief, Los Angeles District Attorney’s Office, 213-257-2966
U.S. Attorney's Office, FBI Prepared to Respond to Complaints of Election Fraud, Voting Rights AbusesRead the Press Release
PROVIDENCE - United States Attorney Peter F. Neronha announced today that Assistant United States Attorney (AUSA) Terrence P. Donnelly will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Donnelly has been appointed to serve as the District Election Officer (DEO) for the District of Rhode Island, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Peter F. Neronha announced today that AUSA/DEO Donnelly will be on duty in this District while the polls are open. He can be reached by the public at (401) 709-5068.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (401) 272-8310.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
U.S. Attorney Announces Efforts to Protect Voters and Prevent Fraud in November 2016 ElectionsRead the Press Release
PHOENIX - United States Attorney John S. Leonardo announced today that Assistant United States Attorney (AUSA) Todd M. Allison will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming Nov. 8, 2016, general elections. AUSA Allison has been appointed to serve as the District Election Officer (DEO) for the District of Arizona, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
“Ensuring free and fair elections depends in large part on the cooperation of the American electorate,” stated United States Attorney John S. Leonardo. “It is imperative that those who have specific information about discrimination, voter intimidation, or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
The Department of Justice has an important role in deterring election fraud, voter intimidation, and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The right to vote is the cornerstone of American democracy. We all must ensure that those who are entitled to the electoral franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on Nov. 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, AUSA Allison will be on duty in this District the entire time that the polls are open. He can be reached by the public at the following telephone number: (602) 595-2866.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and any other election abuses on election day. The local FBI field office can be reached by the public at (623) 466-1999.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint format at http://www.justice.gov/crt/complaint/votintake/index.php.
RELEASE NUMBER: 2016-092_2016 Gen Elections
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Two St. Thomas Men Arrested for Possession with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI- Reinaldo Morone, 44, and Walid John, 37, both of St. Thomas, Virgin Islands, made their initial appearance in court on October 21, 2016, before District Court Judge Curtis V. Gomez on a criminal complaint charging them with one count of possession with intent to distribute cocaine, announced United States Attorney Ronald W. Sharpe. The defendants were released on $10,000 unsecured bonds and to third-party custodians, and were placed on electronic monitoring pending further proceedings, after a detention hearing today before U.S. Magistrate Judge Ruth Miller.
According to the complaint, on October 20, 2016, the men attempted to sell to an individual approximately four kilograms of a white powdery substance that tested positive for cocaine. Possession with the intent to distribute 500 grams or more of cocaine carries a sentence of not less than five years in prison and up to a maximum of 40 years.
The case is being investigated by the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
Two Men Charged with Importing and Selling Counterfeit AirbagsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Raymond Whelan, 47, of Cheektowaga, NY and David Nichols, 66, an American citizen living in China, were charged by criminal complaint with entry of goods by means of false statement, trafficking in counterfeit goods, and conspiracy to traffick in counterfeit goods. The charges carry a maximum penalty of 10 years in prison and a $2,000,000 fine.
“Those who traffick in counterfeit merchandise harm not only legitimate businesses but they potentially put the lives of consumers at grave risk,” said U.S. Attorney Hochul. “For this reason, we will continue to vigorously prosecute all violations pertaining to trademarks and consumer safety.”
“Counterfeit automotive safety components put the driving public at great risk,” said ICE-HIS Special Agent in Charge James C. Spero. “A counterfeit airbag has the potential to deploy and injure a vehicle’s occupants or worse, not deploy after a serious accident.”
Assistant U.S. Attorney Michael DiGiacomo, who is handling the case, stated that according to the complaint, on August 20, 2015, American Honda Motors Co., Inc. (Honda) purchased an air bag for a Honda Accord for $395.00 from an eBay user known as Rayscarparts71. The business contact information contained on the shipping receipt and business card supplied by Rayscarparts71 indicated that the airbag was sold by Raymond Whelan, PEQ · Auto Parts, 125 Beale Avenue, Buffalo, NY 14225. The packaging of the airbag was not consistent with a genuine, properly packaged and shipped airbag sent from Honda.
• The airbag had a serial number, known by Honda to be counterfeit, affixed to the body of the airbag.
• The airbag had labelling that is not consistent with genuine Honda airbag labelling.
• The airbag had connectors that are not consistent with genuine Honda airbag connectors.On October 26, 2015, Honda alerted ICE-HSI about the counterfeit airbags. On December 14, 2015, investigators purchased another airbag from from eBay user Rayscarparts71 for $295. Verification from Honda indicated that the airbag purchased on December 14, 2015 was in fact a counterfeit airbag not manufactured by Honda.
According to the complaint, between February 2015 and March 2016, the defendant sold 403 airbags for $156,057. The counterfeit airbags were from various automakers including Honda, Nissan, Toyota, Mazda, Acura, Subaru, and Hyundai.
On February 25, 2016, investigators executed a search warrant at 3149 Walden Avenue in Depew, NY (Whelan’s business) and 125 Beale Avenue in Cheektowaga, NY (Whelan’s home). They seized 31 airbags, airbag accessory/repair kit, four hard drives, an HP Tower computer, and HP Laptop and miscellaneous business documents. After consulting with the various manufacturers of the brand logos on the airbags, it was determined all 31 airbags were counterfeit.
A forensic examination of the computer and laptop seized revealed various email and Skype conversations between the two defendants. During one email exchange, Whelan wrote to Nichols “It's been a great month! We have sold 50 units totaling approximately 20K! Would like to place another order asap as we are quickly selling out of these.”
During another conversation over Skype, Whelan and Nichols discuss the fact that the airbags are being sent in pieces and require assembly. Whelan to Nichols: “I tried to put some together but will need some instruction on the correct process. These are life saving devices after all.” Whelan goes on to say “I have assembled one with their instruction and it just may work. I can 't see why it wouldn't but....I'm not an airbag expert.”
Raymond Whelan made an initial appearance this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder and was released. He is due back in court on November 1, 2016. David Nichols will make an initial appearance at a later date.
The complaint is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero and Customs and Border Protection, under the direction of Rose Hilmey, Acting Director of Field Operations.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Three Members of the Colorado River Indian Tribes Sentenced to Federal Prison for RobberyRead the Press Release
PHOENIX – Today, Javen Ann Drennan, 31, of Parker, Ariz. was sentenced by U.S. District Judge Steven P. Logan to 51 months in prison, followed by three years of supervised release.
On July 25, 2016, co-defendant Rikki Alison Drennan, 27, of Parker, Ariz. was sentenced by Judge Steven P. Logan to 50 months in prison, followed by three years of supervised release, and on June 27, 2016, co-defendant Arrow Nicholas Lopez, 19, of Parker, Ariz., was sentenced by Judge Logan to 32 months in prison, having received credit for 14 months served in tribal custody. All three defendants, who are members of the Colorado River Indian Tribes, had previously pleaded guilty to robbery.
On the morning of Dec. 2, 2014, J. Drennan’s employment was terminated at Woody’s gas station in Parker, Ariz., which is located on the Colorado River Indian Tribes Reservation. Later that evening J. Drennan drove R. Drennan and Lopez to Woody’s. R. Drennan and A. Lopez wore dark clothing and covered their faces with bandanas, and Lopez had a knife. When they entered the store to commit the robbery, Lopez held the knife inches from the victim’s waist and told the victim to empty the cash register drawers. R. Drennan stole alcohol and cigarettes and she and Lopez fled the store with approximately $850 in cash. R. Drennan and Lopez got into J. Drennan’s vehicle and fled from Woody’s until they were stopped by Parker Police.
The investigation in this case was conducted by the Bureau of Indian Affairs, the CRIT Police Department, and the Parker Police Department. The prosecution was handled by Christina J. Reid-Moore, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-16-0114-PHX-SPL
RELEASE NUMBER: 2016-093_Lopez_etal
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Survey of Community Attitudes towards Seattle Police Department Filed in Federal CourtRead the Press Release
SEATTLE – As part of the consent decree between the Justice Department and the city of Seattle, a scientific poll conducted by national polling firm Anzalone Liszt Grove Research was filed today with the U.S. District Court for the Western District of Washington. The poll, which was commissioned by the federal monitor with input from the parties, measures community attitudes towards the Seattle Police Department (SPD) and found that SPD’s performance ratings continue to improve.
According to the poll, the number of people who approve of SPD has increased to 72 percent, up from 60 percent in 2013 and 64 percent in 2015. Much of that improvement is among African Americans (49 percent approval in 2013 to 62 percent now) and Latinos (54 percent in 2013 to 74 percent now). At the same time, SPD’s disapproval rating has decreased from 34 percent in 2013 to 20 percent in 2016, and fewer people are reporting troubling interactions between officers and Seattle residents.
The poll follows similar surveys conducted in 2013 and 2015, which included input from the Community Police Commission.
“Public trust is a necessary foundation for lasting and effective police reform,” said U.S. Attorney Annette L. Hayes. “The good news is that this most recent survey shows continued positive trends among many Seattle residents. The survey results showing increased approval of SPD, and fewer reported incidents of excessive force and bias policing are especially encouraging in light of the high-profile incidents and difficult community-police relationships in other parts of the country. That said, it is important to recognize the continued differences in attitudes and experience that the survey shows in communities of color here in Seattle. As part of the consent decree driven reform process, the hard work of identifying and addressing any unwarranted disparate impacts on these communities must continue. I am grateful for the continued dedication of so many SPD officers and community members – including the work of the Community Police Commission and other community organizations – to fostering an environment of openness, mutual trust and respect. The work is hard but absolutely essential to the life of our city.”
“Constitutional, community-oriented policing strengthens public trust,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The encouraging signs of improved community-police relations in Seattle, including in communities of color, show what can happen when residents and officers engage in the tough, vital work of rebuilding trust and solving problems. We look forward to working with Seattle as it continues to implement police reform and enhance public trust.”
Anzalone Liszt Grove Research conducted 700 live cellphone and landline telephone interviews with adults 18 and older in Seattle, with an additional 95 interviews among Latinos and 105 interviews among African Americans.
dkt._324_-_1_2016_survey_0.pdfSurvey of Community Attitudes Towards Seattle Police Department Filed in Federal CourtRead the Press Release
Survey Finds Increased Approval Rating for Seattle Police Department
As part of the consent decree between the Justice Department and the city of Seattle, a scientific poll conducted by national polling firm Anzalone Liszt Grove Research was filed today with the U.S. District Court for the Western District of Washington. The poll, which was commissioned by the federal monitor, measures community attitudes towards the Seattle Police Department (SPD) and found that SPD’s performance ratings continue to improve.
According to the poll, the number of people who approve of SPD has increased to 72 percent, up from 60 percent in 2013 and 64 percent in 2015. Much of that improvement is among African Americans (49 percent approval in 2013 to 62 percent now) and Latinos (54 percent in 2013 to 74 percent now). At the same time, SPD’s disapproval rating has decreased from 34 percent in 2013 to 20 percent in 2016, and fewer people are reporting troubling interactions between officers and Seattle residents. The poll follows similar surveys conducted in 2013 and 2015.
“Constitutional, community-oriented policing strengthens public trust,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The encouraging signs of improved community-police relations in Seattle, including in communities of color, show what can happen when residents and officers engage in the tough, vital work of rebuilding trust and solving problems. We look forward to working with Seattle as it continues to implement police reform and enhance public trust.”
“Public trust is a necessary foundation for lasting and effective police reform,” said U.S. Attorney Annette L. Hayes of the Western District of Washington. “The good news is that this most recent survey shows continued positive trends among many Seattle residents. The survey results showing increased approval of SPD, and fewer reported incidents of excessive force and bias policing are especially encouraging in light of the high-profile incidents and difficult community-police relationships in other parts of the country. That said, it is important to recognize the continued differences in attitudes and experience that the survey shows in communities of color here in Seattle. As part of the consent decree driven reform process, the hard work of identifying and addressing any unwarranted disparate impacts on these communities must continue. I am grateful for the continued dedication of so many SPD officers and community members – including the work of the Community Police Commission and other community organizations – to fostering an environment of openness, mutual trust and respect. The work is hard but absolutely essential to the life of our city.”
Anzalone Liszt Grove Research conducted 700 live cellphone and landline telephone interviews with adults 18 and older in Seattle, with an additional 95 interviews among Latinos and 105 interviews among African Americans.
Seattle PD Poll SummarySt. Thomas Man Arrested for Possession with Intent to Distribute CocaineRead the Press Release
St. Thomas, USVI- Rhasheel Charles, 30, of St. Thomas, Virgin Islands, made his initial appearance in District Court today before U.S. Magistrate Judge Ruth Miller after being charged in a criminal complaint with possession with intent to distribute cocaine, United States Attorney Ronald W. Sharpe announced today. Charles was remanded into the custody of the U.S. Marshals Service pending preliminary and detention hearings on October 25, 2016, at 1:30 p.m.
According to the complaint, on October 23, 2016, Charles attempted to carry 3.55 kilograms of cocaine on board an American Airlines flight destined for Miami, Florida, when a Customs and Border Protection canine alerted on the bag Charles was carrying. Possession with the intent to distribute that quantity of cocaine carries a sentence of not less than five years in prison and up to a maximum of 40 years.
The case is being investigated by the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI). It is being prosecuted by Assistant United States Attorney Sigrid M. Tejo-Sprotte.
United States Attorney Sharpe reminds the public that a complaint is merely a formal charging document and is not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
St. Francis Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a St. Francis, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Ennors Abraham Quick Bear, age 28, was indicted on October 12, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on October 19, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, a mandatory minimum of 5 years up to life of supervised release, and a $100 special assessment to the Federal Crime Victims Fund. Restitution may also be ordered.
On September 26, 2012, Quick Bear was convicted of Sexual Abuse of a Minor. As a result of his conviction, he is required to register as a sex offender. It is alleged that between August 12, 2016, and September 15, 2016, Quick Bear, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to properly register as a sex offender.
The charge is merely an accusation and Quick Bear is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Kirk Albertson is prosecuting the case.
Quick Bear was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
St. Croix Man Charged in Firearm Possession CaseRead the Press Release
St. Croix, USVI – Karim Woodley, 39, of St. Croix, Virgin Islands, was arraigned today before U.S. Magistrate Judge George W. Cannon after being charged in a three-count information with possession of a firearm by felon, possession of a firearm near a school and unauthorized firearm possession, United States Attorney Ronald W. Sharpe announced. Judge Cannon ordered the defendant on release pending trial. If convicted, the defendant faces a maximum sentence of ten years in prison and a $250,000.00 fine on the felon in possession and possession near school counts. He also faces a ten year sentence on the unauthorized possession charge and a $15,000.00 fine.
According to court records, the charges stem from a Gang initiative conducted by the Virgin Islands Police Department (VIPD) and the U.S. Immigration and Customs Enforcement’s (ICE) Department of Homeland Security (HSI) last December. Agents searched Woodley and discovered an unlicensed firearm on his person.
The case was investigated by the VIPD and HSI and is being prosecuted by Assistant U.S. Attorney Alphonso Andrews, Jr. United States Attorney Sharpe emphasized that an information is merely a formal charging document and not evidence of guilt. Every defendant is presumed innocent until and unless proven guilty.
South Jersey Couple Sentenced for Conspiring to Set Fire to Historic DinerRead the Press Release
CAMDEN, N.J. – Two individuals from Cumberland County, New Jersey, were each sentenced today for planning to destroy a historic diner that they owned in Bridgeton, New Jersey, U.S. Attorney Paul J. Fishman announced.
Andrew Webster, 50, of Cedarville, New Jersey, was sentenced to 20 months in prison. His wife, Brenda Webster, 46, also of Cedarville, was sentenced to three years of probation, including six months of home confinement with electronic monitoring. Both defendants previously pleaded guilty before U.S. District Judge Robert B. Kugler to separate informations charging them each with one count of conspiracy to commit arson. Judge Kugler imposed both sentences today in Camden federal court.
According to documents filed in this case and statements made in court:
In March 2012, Andrew and Brenda Webster purchased and operated Angie’s Bridgeton Grill, a nearly 75-year old diner that was listed on the New Jersey and National Register of Historic Places in 2012.
Soon after they began to operate the diner, the Websters experienced several months of poor financial performance. During their plea hearings, Andrew and Brenda Webster admitted that they agreed to destroy the diner by fire. They also admitted that on Oct. 23, 2012, they traveled to the diner in Andrew’s truck.
According to the charges, in the early morning hours of Oct. 24, 2012, the Websters entered the diner, collected combustible materials (including newspapers, paper menus, and other light-weight combustible materials), doused them with gasoline, and ignited them with an open flame. Brenda Webster suffered burns to her body when gasoline vapors inside the diner ignited. The two quickly exited and within a short period of time, the fire destroyed the diner.
In addition to the prison term, Judge Kugler sentenced Andrew Webster to serve three years of supervised release. Both defendants are also responsible for restitution of $36,704.49.
U.S. Attorney Fishman credited the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), under the direction of Special Agent in Charge George P. Belsky; the Cumberland County Prosecutors Office, under the direction of Prosecutor Jennifer Webb-McRae; and the Bridgeton Police Department, under the direction of Chief Michael Gaimari, with the investigation.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel:
Andrew Webster: Richard Coughlin Esq., Assistant Federal Public Defender, Camden
Brenda Webster: Joseph Hoffman III Esq., Turnersville, New Jersey.
Six Indicted in Child Sex Trafficking Conspiracy – Face Life in Prison if ConvictedRead the Press Release
FORT WORTH, Texas — Six individuals, most with ties to the Polywood Crips street gang in Fort Worth, Texas, have been charged in a federal indictment with conspiracy to commit sex trafficking, sex trafficking of children, sex trafficking through force, fraud or coercion and related offenses. Three additional defendants involved in the conspiracy, each charged in a criminal information, have entered guilty pleas. The announcement was made today by U.S. Attorney John Parker of the Northern District of Texas.
Most of the defendants were arrested on July 21, 2016, on related charges, outlined in a criminal complaint following an operation conducted by special agents with the Bureau of Alcohol, Tobacco, Firearms and Explosives, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), the Fort Worth Police Department, and the U.S. Marshals Service.
Each of the below-listed defendants acted as a “pimp” and is charged with one count of conspiracy to commit sex trafficking:
Chad Johnson, a/k/a “Ocho Hood Fame,” 24
Diwone Nobles, a/k/a “Pooh,” 32
Audry Lane, a/k/a “Spud,” 29
Deon Bonner, a/k/a “Spanish Fly,” 26
Stanley Johnson, a/k/a “Pee Wee,” 24
Katelyn Michelle Ward, a/k/a “KD,” 24In addition, Chad Johnson is charged with two counts of sex trafficking through force, fraud or coercion; one count of sex trafficking of children through force, fraud or coercion; and one count of sex trafficking of children. Nobles is charged with one count each of sex trafficking through force, fraud or coercion; one count of sex trafficking of children through force, fraud or coercion; and one count of sex trafficking of children. Audry Lane is also charged with two counts of sex trafficking through force, fraud or coercion and one count of sex trafficking of children. Bonner and Stanley Johnson are also each charged with two counts of sex trafficking of children.
The three defendants who pleaded guilty on October 17, 2016, before U.S. District Judge Reed C. O’Connor, are:
Jessica Arnold, 23
Serrah Arnold, a/k/a “Kristen,” 28
Alvin Lane, a/k/a “Spank,”Alvin Lane pleaded guilty to one count of conspiracy to commit sex trafficking of children. Sisters Jessica and Serrah Arnold each pleaded guilty to one count of use of a facility of interstate commerce in aid of a racketeering enterprise.
The indictment alleges that beginning before June 1, 2013, though approximately July 21, 2016, the six defendants conspired and agreed with others to recruit, entice, harbor, transport, provide, obtain and maintain, female children victims under the age of 18, as well as adult victims, recklessly disregarding that force, threats of force, fraud and coercion and any combination of such means would be used to cause these victims to engage in commercial sex acts.
In the affidavit filed with the criminal complaint, one minor female victim was told by Nobles, Bonner, and Chad Johnson to charge $120 for a half hour and $180 for a full hour of commercial sex acts, and the three kept all of the money she received. The victim feared Nobles and Chad Johnson because she had observed both become violent when angry and had observed Chad Johnson assault another female on several occasions when the female did not follow his instructions.
Another minor female victim engaged in commercial sex acts at the direction of Stanley Johnson, who would post advertisements with her photo on Backpage.com. All of the money she earned by engaging in commercial sex acts was given to Stanley Johnson.
An adult female victim engaged in commercial sex acts at the direction of Nobles, Chad Johnson, Audry Lane, Alvin Lane, and Serrah Arnold. Nobles frequently assaulted her when she made him angry or did not follow his instructions; he also raped her. Nobles kept the money she earned and the contact phone number used in the Backpage.com ad for her services was used by Nobles. In one trip to Austin, this adult female victim made enough money for Nobles to buy a Chevy sedan that he painted bright orange – “Poly Orange” in reference to their neighborhood Polytechnic Heights – that he still owns.
When an adult female victim engaged in commercial sex acts at Chad Johnson’s direction, he physically assaulted her if she did not follow his instructions. On one occasion, Chad Johnson punched her in the ear hard enough to cause her eardrum to burst and bleed. Chad Johnson also raped her, and when he believed she had attempted to “renegade,” he had several friends gang rape her as punishment. “Renegade” is a term used to describe attempting to engage in commercial sex acts for money outside the knowledge or control of a pimp.
When an adult female victim engaged in commercial sex acts at Audry Lane’s direction, he would have Serrah Arnold, his “bottom girl,” supervise the victim and take the money she received.
A minor female victim engaged in commercial sex acts at the direction of Audry Lane, Alvin Lane, Serrah Arnold and Jessica Arnold. Alvin Lane would have his girlfriend/bottom girl, Jessica Arnold post photos of her in ads that she placed on Backpage.com. The minor female victim would give all the money she earned to Jessica or Serrah Arnold, who would then give the money to Audry Lane or Alvin Lane.
Some of the six pimp’s Facebook pages contained online posts, visible to the public, that reference making a lot of money through criminal activity, namely “pimping.” Chad Johnson’s Facebook page contains photos of him posing with large sums of cash while referencing commercial sex. Several of Chad Johnson’s Facebook friends are females observed in Backpage.com ads for commercial sex.
Nobles, Bonner, Chad Johnson, Stanley Johnson, and Audry Lane have several photos on their Facebook pages in which they can be observed flashing gang signs referencing the “Polywood Crips” street gang.
A federal complaint is a written statement of the essential facts of the offenses charged and must be made under oath before a magistrate judge; the government has 30 days to present the matter to a grand jury for indictment. An indictment is an accusation by a federal grand jury, and a defendant is entitled to the presumption of innocence unless proven guilty. If convicted, however, each count in the indictment carries a maximum statutory penalty of life in federal prison and a $250,000 fine.
ATF, ICE HSI and the Fort Worth Police Department are investigating. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
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Sioux Falls Man Convicted on Three Firearms ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that Darren Kyle Stepp-Zafft, age 30, of Sioux Falls, South Dakota, was found guilty of three counts of Possession of Unregistered Firearms as a result of a federal jury trial in Sioux Falls.
The charges carry a maximum penalty of 10 years in custody and/or a $250,000 fine, 3 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Zafft was indicted by a federal grand jury on May 10, 2016. Law enforcement officers searched Zafft’s Sioux Falls residence on December 10, 2015, looking for evidence of a firearm that discharged into an adjoining neighbor’s apartment. During the search, officers found the defendant to be in possession of two illegal firearm silencers, five illegal short rifles, and nine illegal destructive devices that could be readily assembled into grenades.
This case was investigated by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives, the Sioux Falls Police Department, and the South Dakota Division of Criminal Investigation. Assistant U.S. Attorney Jeffrey C. Clapper prosecuted the case.
A presentence investigation was ordered. The defendant was remanded to the custody of the U.S. Marshals Service.
Siblings Found Guilty in Large-Scale Mortgage Fraud SchemeRead the Press Release
PITTSBURGH - After deliberating an hour, a federal jury of four men and eight women found siblings James and Janna Nassida guilty of two counts of Bank Fraud and Conspiracy to Commit Bank and Wire Fraud, United States Attorney David J. Hickton announced today.
James Nassida, age 48, of Pittsburgh, Pennsylvania, and Janna Nassida, age 45, of West Mifflin, Pennsylvania, were tried before Senior United States District Judge Donetta Ambrose in Pittsburgh, Pennsylvania.
According to Assistant United States Attorneys Cindy Chung and Brendan T. Conway, who prosecuted the case, the evidence presented at trial established that James Nassida owned and operated a mortgage broker business called Century III Home Equity (Century III), which assisted borrowers in obtaining loans collateralized by real estate. Janna Nassida was a manager at Century III and also a loan officer. At the time of the events at issue, which was between 2008 and 2008, Century III was one of the largest mortgage broker businesses in the Western District of Pennsylvania, and during the course of that timeframe brokered hundreds of millions of dollars worth of loans using more than a dozen different lenders. Many of those loans, however, involved one or more aspects of fraud.
Some of the aspect of the fraud included the following:
- Appraisals that fraudulently inflated the true value of the properties;
- Settlement statements that falsely reflected that the borrowers made substantial payments associated with the purchases of real estate;
- Settlement statements that failed to disclose secondary financing;
- Settlement statements that failed to include cash payments charged by Century III and paid by the borrowers;
- Settlement statements and closing documents that were backdated to reflect that the settlements had occurred on a date prior to the actual settlement date; and
- Various loan documents, including loan approval forms, good faith estimates, and underwriting transmittal forms, that failed to disclose secondary financing and falsely represented the combined loan to value ratio.
The fraud also involved misrepresentations to some of the borrowers to induce them to enter into the transactions, including concealing the fees Century III received from lenders for the borrowers’ transactions and the impact of those fees on the borrowers’ interest rates; and concealing the nature of the mortgage products, including that some of the mortgage products could negatively amortize. Lastly, the fraud also involved James Nassida’s receipt of kickbacks from the settlement company that he failed to disclosed to the borrowers and lenders, as required.
The evidence at trial established that James and Janna Nassida submitted multiple fraudulent documents associated with loans in which they served as a loan officer, but also that the loan officers working under their direction regularly submitted false information to lenders and borrowers. In addition, the evidence established that James Nassida caused the submission of fake documents to the lender in connection with his purchase of a $300,000 vacation home near Seven Springs, including the following: (1) a settlement statement that overstated the sales price; (2) a loan application that falsely stated his income and assets; and (3) fake statements from an investment company that falsely verified that he had more than $600,000 in investment when he really had about $15,000. In the loan application, James Nassida reported that he earned approximately $980,000 in 2006, but he did not even file his tax returns in 2006, and his reported taxable income in 2004 and 2005 was not even close to that figure.
Judge Ambrose scheduled sentencing for March 29, 2017 for both defendants. The law provides for a total sentence of sixty years in prison, a fine of $2,000,000, or both for each defendants. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
The Mortgage Fraud Task Force in conjunction with the Allegheny County District Attorney’s Office, conducted the investigation that led to the prosecution of James and Janna Nassida. The Mortgage Fraud Task Force is comprised of investigators from federal, state and local law enforcement agencies and others involved in the mortgage industry. Federal law enforcement agencies participating in the Mortgage Task Force include the Federal Bureau of Investigation; the Internal Revenue Service, Criminal Investigations; the United States Department of Housing and Urban Development, Office of Inspector General; the United States Postal Inspection Service; and the United States Secret Service. Other Mortgage Fraud Task Force members include the Allegheny County Sheriff's Office; the Allegheny County District Attorney’s Office; the Pennsylvania Attorney General's Office, Bureau of Consumer Protection; the Pennsylvania Department of Banking; the Pennsylvania Department of State, Bureau of Enforcement and Investigation; and the United States Trustee's Office.
Shelby County, Iowa Resident Sentenced for Possession of Child PornographyRead the Press Release
Council Bluffs, IA- On October 20, 2016,Michael Charles Garreans, a 55 year-old resident of Harlan, Iowa was sentenced by United States District Court Judge Stephanie M. Rose, to 60 months in prison for possession of child pornography announced United States Attorney Kevin E. VanderSchel. Garreans’ term of imprisonment is to be followed by seven years of supervised release.
On June 9, 2016, Garreans entered a guilty plea to a federal indictment, charging Garreans with possessing child pornography on or about July 18, 2014. The charge was the result of an investigation into the posting of a video, which contained images of two unclothed minor girls, on a web site being monitored by law enforcement. Law enforcement followed up with a search warrant of Garreans’ residence and located a computer that contained hundreds of images of child pornography.
The investigation was conducted by the Iowa Division of Criminal Investigation, the Harlan, Iowa Police Department and the United States Marshal’s Service. The case was prosecuted by the United States Attorney’s Office for the Southern District of Iowa.
Santa Barbara Criminal Defense Attorney Pleads Guilty to Willfully Failing to File Tax ReturnsRead the Press Release
LOS ANGELES – A Santa Barbara-based criminal defense attorney has pled guilty to three counts of willfully failing to file tax returns and has also admitted, in his plea agreement, to willfully failing to pay his taxes for those three years as well as several additional years, costing the IRS $679,958.
Darryl W. Genis, 60, pleaded guilty this morning to willfully failing to file tax returns for his law practice for the years 2009, 2010, and 2011, federal misdemeanors.
Genis admitted that he made enough money in his law practice to require that he file tax returns in those years, but that he knowingly and intentionally chose to not file his tax returns despite his legal obligation to do so. Genis also admitted that he did not pay the full amount of taxes that he owed for the years 2005-2012.
“As an attorney this defendant had a heightened responsibility to follow the law, and instead he cheated the IRS and every law-abiding taxpayer in the country,” said United States Attorney Eileen M. Decker. “Today’s guilty pleas will deprive the defendant of the fruits of his crimes and send a message that everyone must pay their taxes.”
As part of his plea agreement, Genis agreed to pay restitution to the IRS in the amount of $679,958, representing unpaid taxes for the years 2005 through 2012. Genis also has agreed to the IRS’s assessment of the civil penalties applicable to all 8 tax years in issue.
“This case is a reminder that no one is above the law,” stated Acting Special Agent in Charge Anthony J. Orlando with IRS Criminal Investigation. “Each of us is responsible for filing a tax return when required and for paying the correct amount of tax due. Mr. Genis chose to ignore his duty to file and pay taxes and will now face severe consequences, which may include imprisonment and substantial fines.”
Genis’ sentencing is scheduled for February 13, 2017, at which time he will face a statutory maximum sentence of three years of imprisonment.
The investigation of Genis was conducted by IRS Criminal Investigation in Camarillo, and the prosecution is being handled by Assistant United States Attorneys Valerie Makarewicz and Benjamin Tompkins of the Tax Division.
Rapid City Man Indicted for Escape from CustodyRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man has been indicted by a federal grand jury for Escape from Custody.
Kane Youngman, age 21, was indicted on August 23, 2016. Youngman appeared before U.S. Magistrate Judge Daneta Wollmann on October 12, 2016, and pleaded not guilty to the Indictment.
The maximum penalty upon conviction is 5 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The charge relates to Youngman escaping from the custody of the Bureau of Prisons at the Community Alternatives of the Black Hills, where he was in custody on August 1, 2016.
The charge is merely an accusation and Youngman is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Eric Kelderman is prosecuting the case.
Youngman was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has been set for December 20, 2016.
Queens, New York Woman Convicted for Her Role in $60 Million Wire Fraud ConspiracyRead the Press Release
Erie, PA -After deliberating for little more than an hour, a federal jury has found Bola Peters guilty of one count of conspiracy to commit wire fraud, United States Attorney David J. Hickton announced today.
Peters, 44, of Queens, New York, was tried before United States District Judge David S. Cercone in Pittsburgh, Pennsylvania.
According to Assistant United States Attorney Christian A. Trabold, who prosecuted the case, the evidence presented at trial established that Peters maintained multiple bank accounts which were used as repositories for fraudulently obtained federal tax refunds. After the fraudulently obtained refunds were deposited into accounts under her control, Peters would remove the funds, keep a portion for herself and remit the remainder of the refunds back to her co-conspirators. Evidence presented at trial showed that Peters was in possession of numerous false identification documents. These documents matched the stolen identities listed on the fraudulent federal tax returns that generated the tax refunds deposited into the accounts Peters controlled. Other stolen identity documents found in Peters’ house matched the names on bank accounts Peters opened using stolen identities. Peters was also in possession of handwritten ledgers and lists containing hundreds of stolen identities which were used during the course of the conspiracy to file false federal tax returns.
Judge Cercone scheduled sentencing for March 3, 2017 at 11:30 a.m. The law provides for a total sentence of 20 years in prison, a maximum fine of $250,000 or twice the amount of loss to the victims, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based on the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Pending sentencing, the court revoked Peters’ bond.
The Federal Bureau of Investigation and the Internal Revenue Service, Criminal Investigation conducted the investigation that led to the prosecution of Peters.
Public Access Upheld on Popular Beaverhead-Deerlodge National Forest TrailRead the Press Release
HELENA – Judge Sam E. Haddon issued an order today finding that the United States Forest Service possesses an easement by prescription on behalf of itself and the public for use of Forest Service Trail No. 328, commonly known as the Indian Creek Trail, in the Madison Ranger District of the Beaverhead-Deerlodge National Forest. This popular trail provides public access into the Lee Metcalf Wilderness.
The order comes as a result of litigation filed against the U.S. Department of Agriculture under the Quiet Title Act. The Quiet Title Act allows the United States to be named as a defendant in a civil action “to adjudicate a disputed title to real property in which the United States claims an interest.” Under the terms of the Quiet Title Act, state law governs determinations of property ownership. Under Montana law, a public easement by prescription is established through at least five years of continuous and open use that is adverse (i.e. not by permission) to the interests of the underlying landowner. The Court found that ample precedent existed in Montana law to uphold a prescriptive right of access by the Forest Service and the public for the Indian Creek Trail, and that the right had been established no later than 1973.
The case arose in 2014, when Plaintiff Wonder Ranch, LLC, sued the United States under the Quiet Title Act. Wonder Ranch claimed that the trail, which traverses its 80-acre parcel east of Cameron, Montana, existed and was used by the public by gratuitous permission of the landowner, and that no public right of access existed.
The United States counter-sued, claiming that a prescriptive easement across Wonder Ranch for the public and the Forest Service to use the trail had been clearly established through many decades of stock, recreational, and commercial use. The Court conducted an eight-day bench trial in July and August of 2016. At trial, dozens of witnesses testified to recreational and administrative use of the trail over more than six decades.
In finding for the United States, the Court determined that of the more than 30 witnesses who testified to their use of the trail since 1968, when Plaintiff acquired its property, the vast majority used the trail without ever seeking Plaintiff’s permission. Judge Haddon noted that use of the trail had in fact long-predated Wonder Ranch’s ownership of the property, as evidenced by an 1888 USGS map depicting the trail, a 1940 Forest Service map designating the trail with its current administrative number of #328, and many years of grazing, outfitting, and crossing permits.
Ultimately, the Court found that the United States, on behalf of itself and the public, possesses a prescriptive easement across the Wonder Ranch property for all historical uses of the trail that occurred during the period of prescriptive use (i.e., beginning “no later than” 1968). Based on the Court’s order, such uses include trail maintenance, Forest Service inspection of hunting camps, hiking, horseback riding, and leading strings of pack animals, as well as other historic uses of the trail that regularly occurred during this period. The Court noted that the current location of the trail “has remained unchanged since before the statutory period of prescription” and therefore will become the officially recorded location of the public easement.
“Today’s ruling upholds an important historic route of access to one of the most beautiful parts of Montana, and in so doing vindicates a core Montana value: public access to public land,” said U.S. Attorney for the District of Montana Michael Cotter. “Hats off to the trial team and United States Forest Service staff for preserving the public’s access on a trail used historically by Native Americans, settlers, loggers, ranchers, commercial guides, and recreationists.”
“This federal court decision is an extraordinary win for the public in defending access to public lands all across our nation,” remarked Leanne Martin, the Forest Service Northern Regional Forester. “We will continue to strive to work with landowners regarding other instances of historic access across private lands. We so appreciate the US Attorney’s Office for their support in this case and that of the many people who care about this particular trail.”
This case was litigated by Assistant U.S. Attorneys Mark Smith, Leif Johnson, and Melissa Hornbein, with invaluable support from U.S. Forest Service counsel and staff, and members of the public who testified at trial.
Press Release by United States Attorney Relating to November 2016 ElectionsRead the Press Release
Anchorage, Alaska – United States Attorney Karen L. Loeffler announced today that Assistant United States Attorney (AUSA) Kelly Cavanaugh will lead the efforts of the United States Attorney’s Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Cavanaugh has been appointed to serve as the District Election Officer (DEO) for the District of Alaska, and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Loeffler said, “Every citizen must be able to vote without interference or discrimination, and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process.”
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Loeffler stated that AUSA/DEO Cavanaugh will be on duty in this District while the polls are open. He can be reached by the public at the following telephone number: (907) 271-5071.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (907) 276-4441.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Loeffler said, “Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division.”
President of Telexfree Pleads Guilty to Billion Dollar Pyramid SchemeRead the Press Release
BOSTON – The President of Telexfree, Inc., a pyramid scheme that was disguised as an internet telecom company, pleaded guilty in U.S. District Court in Worcester today.
Merrill, 55, of Ashland, pleaded guilty to one count of wire fraud conspiracy and eight counts of wire fraud. U.S. District Court Judge Timothy S. Hillman scheduled sentencing for Feb. 2, 2017. Merrill’s trial was scheduled to begin today.
“The pyramid scheme Mr. Merrill operated defrauded thousands of victims throughout Massachusetts, and in fact, around the world,” said United States Attorney Carmen M. Ortiz. “Mr. Merrill lined his pockets on the backs of hard working individuals who, in some cases, invested their entire savings. We hope today’s guilty plea brings some degree of justice to the many victims in this case.”
“The significance of a guilty plea in a case of this magnitude cannot be overstated,” said Special Agent in Charge Matthew Etre of Homeland Security Investigations Boston. “James Merrill is finally facing justice for his role in bilking more than $3 billion from innocent investors, in more than 240 countries around the world, for what amounted to little more than greed. HSI special agents will continue to aggressively investigate those who seek to profit by taking advantage of others.”
Between February 2012 and April 2014, Merrill was the President of TelexFree, Inc., which sold a “voice-over-internet-protocol” (VOIP) telephone service, similar to Skype, for which customers could sign up on a website maintained by TelexFree. TelexFree, however, was a pyramid scheme whereby all of the money TelexFree paid out came, not from sales of its product, but from new participants continuously paying TelexFree to sign up as “promoters” for the company.
TelexFree’s website prominently featured Merrill as the leader of the company and as an experienced businessman in the telecom field. As the website advertised at various times, participants paid $1,425 or $339 to sign up with TelexFree, after which they would be paid $100 per week or $20 per week to post classified ads every day on the internet. The company couched those payments in terms of “buying back” unused VOIP packages the participants were unable to sell, but the practical reality was that participants were guaranteed an annual return of over 200% on their money without having to sell anything. Among other things, emails showed Merrill’s awareness that the ad-posting was intended only to ensure that people visited TelexFree’s web site as opposed to generating actual retail sale of the VOIP product. Participants spent minutes a day cutting and pasting ads into various classified ad sites provided by TelexFree, which were already saturated with thousands of ads posted by earlier participants.
Participants were also given substantial financial incentives to recruit others to join the scheme. To receive bonuses for recruiting others, in theory each participant needed to have one VOIP customer. But in reality, participants met this requirement simply by buying the product themselves and, in 97% of instances, never using it. In this way, TelexFree created the illusion that it had hundreds of thousands of legitimate VOIP customers. On paper the company sold about 12.4 million VOIP plans, but in reality it had a minute number of legitimate customers, an even smaller number of which had actually paid money to TelexFree for the service. Overall, the nearly 2 million who participated in TelexFree made 96% of their compensation, not from selling the company’s VOIP service, but from ad-posting and recruiting others to join.
TelexFree derived only a fraction of its total revenue in a two-year period from sales of VOIP service – approximately 2%. The remaining 98% came from new people buying into the scheme. TelexFree could only pay the returns it had promised to its existing promoters by bringing in money from newly-recruited promoters.
Beginning in late 2012, involvement in TelexFree spread rapidly, and by April 2014, well over a million people worldwide had signed up with the company. This included over 20,000 people in Worcester, Mass. alone, and thousands more in Boston, Framingham, Chelsea and other communities statewide. Meanwhile, beginning in 2013, Merrill received increasingly frequent warnings that the company was a pyramid scheme. Beginning in August 2013, Merrill began to take steps to change how the company did business, but Merrill never alerted the public, even though over a million people signed up for TelexFree between that month and TelexFree’s collapse.
In December 2013, Merrill wired himself and two co-conspirators a total of $10 million from TelexFree accounts. On April 14, 2014, Telexfree filed for bankruptcy, at which point it owed approximately $5 billion to its participants, while having only about $120 million on hand (about 2% of what it owed). At that point, approximately 965,225 participants lost money in the scheme, with total losses of about $1,755,927,755. Overall, these victims came primarily from the United States (all 50 states), Brazil, China, Portugal, Peru, other Central and South American nations, Italy, and Russia, with smaller victim populations in dozens of other countries.
According to the terms of the plea agreement, Merrill will be sentenced to no more than 10 years in prison. Merrill also agreed to forfeit approximately $140 million, numerous real estate properties, luxury vehicles and boats. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
U.S. Attorney Ortiz and HSI SAC Etre made the announcement today. The U.S. Attorney’s Office also received valuable assistance from the Federal Bureau of Investigation, the Brazilian Federal Police based in Vitoria, Brazil, the Securities & Exchange Commission, and the Massachusetts Securities Division of the Office of the Secretary of the Commonwealth of Massachusetts. Assistant U.S. Attorneys Andrew E. Lelling and Neil J. Gallagher, Jr., of Ortiz’s Economic Crimes Unit are prosecuting the case.
If you believe that you are a victim of the alleged TelexFree, Inc. scheme, please enter a claim for reimbursement on the following site: https://telexfreeclaims.com/
Pastor and Wife Indicted for $1.2 Million Fraud Targeting Church MembersRead the Press Release
ALEXANDRIA, Va. – The senior pastor of Victorious Life Church in Alexandria, along with his wife, were arrested yesterday for their alleged involvement in a $1.2 million fraud scheme that victimized members of their congregation.
Terry Wayne Millender, 52, his wife Brenda Millender, 56, both of Alexandria, and Grenetta Wells, 55, also of Alexandria, were indicted by a federal grand jury on October 20, on charges of conspiracy to commit wire fraud and money laundering conspiracy. The charges were unsealed today after Wells was arrested.
According to the indictment, the defendants operated a company called Micro-Enterprise Management Group (MEMG), a Virginia company that alleged to help poor people in developing countries by providing small, short-term loans to start or expand existing businesses by working with a network of established micro-finance institutions. Terry Millender and Brenda Millender were founding members of MEMG, while Terry Millender served as chief executive officer and Wells served as chief operating officer. The defendants recruited investors by emphasizing its Christian mission and use of the funds to help the poor, promising guaranteed rates of return, assuring investors that the loans’ principal was safe and backed by the assets of MEMG. The indictment alleges that these representations were false and fraudulent, and that the money was actually used by the defendants to conduct risky trading on the foreign exchange currency market, options trading, payments towards the purchase of a $1.75 million residence for Terry and Brenda Millender, and other personal expenses for the defendants. To conceal how they had actually used the money, the defendants are alleged to have falsely assured investors that they would get their money back and blamed delays in repaying investors on the 2008 financial crisis, among other things.
The defendants will make their initial appearances this afternoon at 2 p.m. at the federal courthouse in Alexandria in front of Magistrate Judge Theresa C. Buchanan.
Each defendant faces a maximum penalty of 20 years in prison, if convicted. 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; Thomas Jankowski, Special Agent in Charge, Washington, D.C. Field Office, IRS-Criminal Investigation (IRS-CI), and Terrence P. McKeown, Inspector in Charge of the Washington Division of the U.S. Postal Inspection Service, made the announcement. Assistant U.S. Attorney Katherine L. Wong is prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-239.
Parmelee Man Indicted for Aggravated Sexual AbuseRead the Press Release
United States Attorney Randolph J. Seiler announced that a Parmalee, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse.
Harlan Two Eagle, age 33, was indicted on October 12, 2016. He appeared before U.S. Magistrate Judge Mark Moreno on October 20, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to life in custody and/or a $250,000 fine, 5 years of supervised release, and $100 to the Federal Crime Victims Fund. Upon conviction, unless the Sentencing Court finds Two Eagle to be indigent, an additional mandatory special assessment of $5,000 will be imposed. Restitution may also be ordered.
The indictment alleges that on December 22, 2015, in Mission, South Dakota, Two Eagle knowingly engaged in, and attempted to engage in, a sexual act with the victim by the use of force.
The charge is merely an accusation and Two Eagle is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Two Eagle was released to a third party custodian pending trial. A trial date has not been set.
Orange County Man Pleads Guilty to Flying Private Jet with Passengers Onboard Without Having Properly Issued FAA LicenseRead the Press Release
LOS ANGELES – An Irvine man pleaded guilty today in federal court to charges of illegally flying on two separate occasions turbo-jet powered aircraft with passengers onboard without having a valid license.
Arnold Gerald Leto III, 36, pleaded guilty to a two-count indictment that charged Leto with violations of a federal statute that prohibits the knowing piloting of an aircraft without having the requisite “airman certificate.”
According to his plea agreement, in January 2015, Leto piloted a Cessna Citation aircraft from Santa Monica to Phoenix, and, in April 2016, Leto piloted a Falcon 10 turbo-jet aircraft from Van Nuys Airport to Las Vegas. On both of those occasions, Leto piloted the aircraft with passengers onboard knowing that he did not have the requisite airman certificate to pilot that aircraft.
“Federal laws regarding the operation of passenger aircraft protect the public,” said United States Attorney Eileen M. Decker. “Today’s guilty pleas demonstrate that the defendant willfully disregarded the rules and regulations of the FAA and operated jet aircraft, thereby endangering the passengers on board and the safety of the communities of Santa Monica, Van Nuys, Las Vegas, Phoenix, and everywhere in between.”
Earlier this year, the FAA, after finding various violations of Federal aviation regulations, revoked all of Leto’s airman certificates.
“As evidenced by the guilty plea entered into today by Mr. Arnold Leto related to operating an aircraft without an airman’s certificate, we remain steadfast in our commitment to ensuring the safety of the nation’s air transportation system,” said William Swallow, DOT OIG regional Special Agent-in-Charge. “Working with the Federal Aviation Administration and our prosecutorial partners, we will continue to prevent and detect violations of federal laws and regulations designed to ensure public safety, and punish those who would seek to compromise that safety.”
Sentencing is set before United States District Judge Dale S. Fischer on February 6, 2017. At that time Leto faces a statutory maximum sentence of six years in federal prison.
This case was investigated by the Department of Transportation – Office of Inspector General, with assistance by the Federal Aviation Administration. The prosecution is being handled by Assistant United States Attorney Dennis Mitchell of the Environmental and Community Safety Crimes Section.
Omaha Woman to Federal Prison for Iowa Meth ConspiracyRead the Press Release
A woman who conspired to distribute methamphetamine was sentenced October 24, 2016, to 10 years in federal prison.
Elizabeth Lopez, 30, from Omaha, NE, received the prison term after a May 26, 2016, jury verdict finding her guilty of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine.
Evidence at trial showed that Lopez conspired to distribute 50 grams or more of actual (pure) methamphetamine from 2015 through August 2015 in the Sioux City, Iowa area. The evidence also showed that on August 4, 2015, Lopez had traveled from Omaha, NE to Sioux City, IA to distribute approximately one ounce of actual (pure) methamphetamine. Lopez had hidden the methamphetamine in her bra.
Lopez was sentenced in Sioux City by United States District Court Judge Mark W. Bennett. Lopez was sentenced to 120 months’ imprisonment. A special assessment of $200 was imposed. She must also serve a five-year term of supervised release after the prison term. There is no parole in the federal system. Lopez is being held in the United States Marshal’s custody until she can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Shawn S. Wehde and investigated by the Tri-State Drug Task Force based in Sioux City, Iowa, that consists of law enforcement personnel from the Drug Enforcement Administration; Sioux City, Iowa, Police Department; Homeland Security Investigations; Woodbury County Sheriff’s Office; South Sioux City, Nebraska, Police Department; Nebraska State Patrol; Iowa National Guard; Iowa Division of Narcotics Enforcement; United States Marshals Service; South Dakota Division of Criminal Investigation; and Woodbury County Attorney’s Office.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-4051. Follow us on Twitter @USAO_NDIA.
Okmulgee Man Pleads Guilty to Unregistered Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that BUDDY LYNN VISSER, age 56, of Okmulgee, Oklahoma, pled guilty to FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 924(e)(1), punishable by not more than 10 years imprisonment, up to a $250,000 fine or both; and POSSESSION OF UNREGISTERED FIREARM (MACHINEGUN), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by not more than 10 years imprisonment, up to a $10,000 fine or both.
The Indictment alleged that on or about July 10, 2016, within the Eastern District of Oklahoma, VISSER, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, a firearm, which had been shipped and transported in interstate commerce.
The Indictment further alleged that on or about August 17, 2016, within the Eastern District of Oklahoma, VISSER did knowingly possess a machinegun, to wit: One (1) Seekins Precision, Model SP15; .223 caliber rifle, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
Charges arose from an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshals Service pending sentencing.
Assistant United States Attorney Dean Burris represented the United States.
Nursing Home Chain to Pay $5.3 Million to Resolve False Claims Act AllegationsRead the Press Release
DALLAS - Daybreak Partners, LLC, a holding company for a number of subsidiaries that operate and manage skilled nursing facilities throughout Texas, has agreed to pay $5,300,000.00 to resolve allegations that they billed Medicare and Medicaid for materially substandard nursing services. The skilled nursing facilities are operated as individual limited partnerships owned by Daybreak Venture, LLC and Daybreak Healthcare, Inc. (Daybreak). Daybreak denies the allegations. U.S. Attorney John Parker of the Northern District of Texas made the announcement today.
The settlement resolves allegations that between 2006 and 2010, some of the skilled nursing services provided at four nursing facilities Daybreak owned and managed (Deerings Nursing and Rehabilitation, L.P., Odessa, Texas; Mansfield Nursing and Rehabilitation, L.P., Mansfield, Texas; Marine Creek Nursing and Rehabilitation, L.P. Mineral Wells, Texas; and Mineral Wells Nursing and Rehabilitation, L.P., Mineral Wells, Texas) were materially substandard and/or worthless because Daybreak: (a) failed to follow appropriate fall protocols for several residents; (b) failed to follow appropriate pressure ulcer and infection control protocols for several residents; (c) failed to properly administer medications to several residents to avoid medication errors; (d) failed to follow doctors’ orders for several residents; (e) failed to provide appropriate mental health treatment to several residents; (f) failed to answer several residents’ call lights promptly; (g) failed to institute appropriate infection control measures for several residents; (h) failed to provide a habitable living environment, adequate equipment, and needed capital expenditures; and (i) failed to investigate and report serious incidents to appropriate authorities on several occasions.
“In addition to our responsibility to preserve federal tax dollars, we have a special obligation to protect the most vulnerable members of our community,” said U.S. Attorney Parker. “This settlement reflects our commitment to ensuring that medical providers for our ailing friends and family are not paid for substandard services.”
As part of the settlement, Daybreak entered into a Corporate Integrity Agreement with the Office of Inspector General for Health & Human Services (OIG) that requires an independent monitor and allows the OIG to oversee the quality of care provided at all of Daybreak’s skilled nursing facilities over the next five years. Daybreak cooperated throughout the course of the investigation.
This case was handled by Assistant U.S. Attorney Clay Mahaffey.
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November 2016 General ElectionRead the Press Release
United States Attorney Christopher A. Crofts announced today that Assistant United States Attorney (AUSA) Stephanie I. Sprecher will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Sprecher has been appointed to serve as the District Election Officer (DEO) for the District of Wyoming and in that capacity is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses in consultation with Justice Department Headquarters in Washington.
United States Attorney Crofts said, "Every citizen must be able to vote without interference or discrimination and to have that vote counted without it being stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the election process."
The Department of Justice has an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact within the Department for the public to report possible election fraud and voting rights violations while the polls are open on election day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. For example, actions of persons designed to interrupt or intimidate voters at polling places by questioning or challenging them, or by photographing or videotaping them, under the pretext that these are actions to uncover illegal voting may violate federal voting rights law. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
The franchise is the cornerstone of American democracy. We all must ensure that those who are entitled to the franchise exercise it if they choose, and that those who seek to corrupt it are brought to justice. In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Crofts stated that AUSA/DEO Sprecher will be on duty in this District while the polls are open. She can be reached by the public at the following telephone number: (307)261-5542.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on election day. The local FBI field office can be reached by the public at (303)630-6916.
Complaints about possible violations of the federal voting rights laws can be made directly to the Civil Rights Division’s Voting Section in Washington, DC by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected] or by complaint form at http://www.justice.gov/crt/complaint/votintake/index.php.
United States Attorney Crofts said, "Ensuring free and fair elections depends in large part on the cooperation of the American electorate. It is imperative that those who have specific information about discrimination or election fraud make that information available immediately to my Office, the FBI, or the Civil Rights Division."
November 2016 ElectionsRead the Press Release
Tampa, FL - United States Attorney A. Lee Bentley, III announced today that Assistant United States Attorney (AUSA) Robert Mosakowski will lead the efforts of his Office in connection with the Justice Department’s nationwide Election Day Program for the upcoming November 8, 2016, general elections. AUSA Mosakowski has been appointed to serve as the District Election Officer (DEO) for the Middle District of Florida. In that capacity, he is responsible for overseeing the District’s handling of complaints of election fraud and voting rights abuses, in consultation with Justice Department Headquarters in Washington.
United States Attorney Bentley said, “Every citizen should be free to vote without interference and to have his or her vote count, without the fear that it will be stolen because of fraud. The Department of Justice will act promptly and aggressively to protect the integrity of the electoral process.”
The Department of Justice plays an important role in deterring election fraud and discrimination at the polls, and combating these violations whenever and wherever they occur. The Department’s long-standing Election Day Program furthers these goals, and also seeks to ensure public confidence in the integrity of the election process by providing local points of contact for the public to report possible violations on Election Day.
Federal law protects against such crimes as intimidating or bribing voters, buying and selling votes, impersonating voters, altering vote tallies, stuffing ballot boxes, and marking ballots for voters against their wishes or without their input. It also contains special protections for the rights of voters and provides that they can vote free from acts that intimidate or harass them. Such acts may include questioning, challenging, photographing, or videotaping voters at polling places, under the pretext of uncovering violations of federal voting rights laws. Further, federal law protects the right of voters to mark their own ballot or to be assisted by a person of their choice.
In order to respond to complaints of election fraud or voting rights abuses on November 8, 2016, and to ensure that such complaints are directed to the appropriate authorities, United States Attorney Bentley stated that AUSA/DEO Mosakowski will be on duty in this District while the polls are open. Public complaints may be reported to him at (813) 274-6129.
In addition, the FBI will have special agents available in each field office and resident agency throughout the country to receive allegations of election fraud and other election abuses on Election Day. Local FBI field offices can be reached by the public at either (813) 253-1000 (Tampa Division) or (904) 248-7000 (Jacksonville Division).
Complaints about possible violations of the federal voting rights laws also may be made directly to the Civil Rights Division’s Voting Section in Washington, DC either by phone at 1-800-253-3931 or (202) 307-2767, by fax at (202) 307-3961, by email to [email protected], or by complaint form at www.justice.gov/crt/complaint/votintake.
“Ensuring free and fair elections depends, in large part, on the cooperation of the American public,” said U.S. Attorney Bentley. “It is imperative that anyone with specific information about discrimination or election fraud immediately contact my Office, the FBI, or the Civil Rights Division.”
Niagara Falls Man Sentenced for Being A Felon in Possession of A FirearmRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Josue Ortiz, 35, of Niagara Falls, NY, who was convicted of being a felon in possession of a firearm, was sentenced to time served and three years supervised release by U.S. District Judge Lawrence J. Vilardo.
Assistant U.S. Attorney Michael J. Adler, who handled the case, stated that on December 23, 2015, the Niagara Falls Police Department was dispatched to a residence on Niagara Avenue. A resident living in the lower apartment told officers that she believed a resident living upstairs had a gun.
Officers went upstairs and made contact with the defendant through a closed door and asked Ortiz if he had a gun. The officers talked Ortiz into putting down the gun (a 12 gauge shotgun) and putting his hands up. Officers then placed the defendant in handcuffs and secured the gun.
Josue Ortiz served 10 years in state prison for the murders of Nelson and Miguel Camacho. His conviction was vacated by an Erie County Court judge based on the findings of another federal investigation.
The sentencing is the culmination of an investigation by the Niagara Falls Police Department, under the direction of Chief Bryan DalPorto and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Ashan M. Benedict, New York Field Division.
Life Care Centers of America, Inc. Agrees to Pay $145 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Rehabilitation CareRead the Press Release
KNOXVILLE, Tenn. – Cleveland, Tennessee-based Life Care Centers of America, Inc. (Life Care) and its owner, Forrest L. Preston, have agreed to pay $145 million to resolve a government lawsuit alleging that Life Care violated the False Claims Act by knowingly causing skilled nursing facilities (SNFs) to submit false claims to Medicare and TRICARE for rehabilitation therapy services that were not reasonable, necessary, and/or skilled, the Department of Justice announced today. This resolution is the largest settlement with a skilled nursing facility chain in the Department’s history, and the largest civil False Claims Act settlement in the Eastern District of Tennessee.
As part of this settlement, Life Care has also been required to enter into a five year chain-wide Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). Life Care owns and operates more than 220 skilled nursing facilities across the country.
“Billing federal healthcare programs for medically unnecessary rehabilitation services not only undermines the viability of those programs, it exploits our most vulnerable citizens,” said Nancy Stallard Harr, U.S. Attorney for the Eastern District of Tennessee. “We are committed to working with our federal partners to protect both.”
The settlement, which was based on the company’s ability to pay, resolves allegations that between January 1, 2006 and February 1, 2013, Life Care submitted false claims for rehabilitation therapy by engaging in a systematic effort to increase its Medicare and TRICARE billings. Specifically, Life Care instituted corporate-wide policies and practices designed to place as many beneficiaries in the highest reimbursement category for therapy irrespective of the clinical needs of the patients, resulting in the provision of unreasonable and unnecessary therapy to many beneficiaries. Life Care also sought to keep patients longer than was necessary in order to continue billing for rehabilitation therapy, even after the treating therapists felt that therapy should be discontinued. Life Care carefully tracked the minutes of therapy provided to each patient and number of days in therapy to ensure that as many patients as possible were at the highest level of reimbursement for the longest possible period. The settlement also resolves allegations, brought in a separate lawsuit by the United States, that Forrest L. Preston, as the sole shareholder of Life Care, was unjustly enriched by Life Care’s fraudulent scheme.
“This resolution is the largest settlement with a skilled nursing facility chain in the Department’s history,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “It is critically important that we protect the integrity of government health care programs by ensuring that services are provided based on clinical rather than financial considerations.”
“The resolution announced today demonstrates the commitment of the U.S. Attorney’s Office to aggressively pursue providers who utilize fraudulent practices to knowingly put their own financial self-interest over a duty to patients,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “It is imperative that providers make healthcare decisions based upon a patient’s need for services rather than a self-serving desire to maximize financial profit. Our office will continue to investigate fraud allegations, in order to ensure that providers do not compromise the integrity of our public health care programs.”
“Therapy provided in skilled nursing facilities must be medically reasonable and necessary for the individual patient, and we will continue to vigorously investigate companies to prevent fraud and abuse,” said Inspector General Daniel R. Levinson for the U.S. Department of Health and Human Services. “The corporate integrity agreement with Life Care is designed to ensure that Life Care’s provision of therapy services in the future will be determined by the needs of its patients.”
U.S. Attorney Harr noted that the settlement with Life Care resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Tammie Taylor and Glenda Martin, former employees of Life Care. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The government may intervene and file its own complaint in such a lawsuit, as it has done in this case. The relator share of the recovery in this matter is $29 million.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs. Over the same period of time, the U.S. Attorney’s Office for the Eastern District of Tennessee has recovered more than $90 million through False Claims Act cases, with more than $81 million of that amount recovered in cases involving fraud against federal health care programs.
U.S. Attorney Harr commended and expressed her deep appreciation for the dedication and diligence of the large team that handled this complex and lengthy investigation and litigation, including current and former attorneys, paralegals, investigators and support staff from the Department of Justice’s Civil Division, Commercial Litigation Branch; the U.S. Attorney’s Offices for the Eastern District of Tennessee, the Southern District of Florida, the District of Colorado, the District of Massachusetts, the District of South Carolina, and the District of the District of Columbia; and HHS Office of Inspector General.
The two qui tam cases are docketed as United States ex rel. Taylor v. Life Care Centers of America, Inc., No. 1:12-cv-64 (E.D. Tenn) and United States ex rel. Martin v. Life Care Centers of America, Inc., No. 1:08-cv-251 (E.D. Tenn). The case against Forrest L. Preston is captioned United States v. Preston, No. 1:16-cv-113 (E.D. Tenn). The claims resolved by the settlement are allegations only; there has been no determination of liability.
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Life Care Centers of America Inc. Agrees to Pay $145 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
Life Care Centers of America Inc. (Life Care) and its owner, Forrest L. Preston, have agreed to pay $145 million to resolve a government lawsuit alleging that Life Care violated the False Claims Act by knowingly causing skilled nursing facilities (SNFs) to submit false claims to Medicare and TRICARE for rehabilitation therapy services that were not reasonable, necessary or skilled, the Department of Justice announced today. Life Care, based in Cleveland, Tennessee, owns and operates more than 220 skilled nursing facilities across the country.
“This resolution is the largest settlement with a skilled nursing facility chain in the department’s history,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “It is critically important that we protect the integrity of government health care programs by ensuring that services are provided based on clinical rather than financial considerations.”
This settlement resolves allegations that between Jan. 1, 2006 and Feb. 28, 2013, Life Care submitted false claims for rehabilitation therapy by engaging in a systematic effort to increase its Medicare and TRICARE billings. Medicare reimburses skilled nursing facilities at a daily rate that reflects the skilled therapy and nursing needs of their qualifying patients. The greater the skilled therapy and nursing needs of the patient, the higher the level of Medicare reimbursement. The highest level of Medicare reimbursement for skilled nursing facilities is for “Ultra High” patients who require a minimum of 720 minutes of skilled therapy from two therapy disciplines (e.g., physical, occupational, speech), one of which has to be provided five days a week.
The United States alleged in its complaint that Life Care instituted corporate-wide policies and practices designed to place as many beneficiaries in the Ultra High reimbursement level irrespective of the clinical needs of the patients, resulting in the provision of unreasonable and unnecessary therapy to many beneficiaries. Life Care also sought to keep patients longer than was necessary in order to continue billing for rehabilitation therapy, even after the treating therapists felt that therapy should be discontinued. Life Care carefully tracked the minutes of therapy provided to each patient and number of days in therapy to ensure that as many patients as possible were at the highest level of reimbursement for the longest possible period. The settlement also resolves allegations brought in a separate lawsuit by the United States that Forrest L. Preston, as the sole shareholder of Life Care, was unjustly enriched by Life Care’s fraudulent scheme.
“Billing federal healthcare programs for medically unnecessary rehabilitation services not only undermines the viability of those programs, it exploits our most vulnerable citizens,” said U.S. Attorney Nancy Stallard Harr for the Eastern District of Tennessee. “We are committed to working with our federal partners to protect both.”
“The resolution announced today demonstrates the commitment of the U.S. Attorney’s Office to aggressively pursue providers who utilize fraudulent practices to knowingly put their own financial self-interest over a duty to patients,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “It is imperative that providers make healthcare decisions based upon a patient’s need for services rather than a self-serving desire to maximize financial profit. Our office will continue to investigate fraud allegations, in order to ensure that providers do not compromise the integrity of our public health care programs.”
As part of this settlement, Life Care has also entered into a five-year chain-wide Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.
“Therapy provided in skilled nursing facilities must be medically reasonable and necessary, and we will continue to vigorously investigate companies that subject their residents to needless and unreasonable therapy,” said HHS Inspector General Daniel R. Levinson. “The corporate integrity agreement with Life Care is designed to ensure that it only provides therapy based on the individual needs of each resident.”
The settlement, which was based on the company’s ability to pay, resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Tammie Taylor and Glenda Martin, former Life Care employees. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The government may intervene and file its own complaint in such a lawsuit, as it has done in this case. The whistleblower reward in this case will be $29 million.
The settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Eastern District of Tennessee and the Southern District of Florida, and the HHS-OIG, with assistance from the U.S. Attorneys’ Offices for the District of Colorado, the Middle District of Florida, the Northern District of Georgia, the District of Massachusetts and the District of South Carolina and NCI/AdvanceMed, a Medicare Zone Program Integrity Contractor.
The two qui tam cases are docketed as United States ex rel. Taylor v. Life Care Centers of America, Inc., No. 1:12-cv-64 (E.D. Tenn) and United States ex rel. Martin v. Life Care Centers of America, Inc., No. 1:08-cv-251 (E.D. Tenn). The case against Forrest L. Preston is captioned United States v. Preston, No. 1:16-cv-113 (E.D. Tenn). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Life Care Centers of America Inc. Agrees to Pay $145 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
Contact: Office of Public Affairs (202) 514-2007
WASHINGTON – Life Care Centers of America Inc. (Life Care) and its owner, Forrest L. Preston, have agreed to pay $145 million to resolve a government lawsuit alleging that Life Care violated the False Claims Act by knowingly causing skilled nursing facilities (SNFs) to submit false claims to Medicare and TRICARE for rehabilitation therapy services that were not reasonable, necessary or skilled, the Department of Justice announced today. Life Care, based in Cleveland, Tennessee, owns and operates more than 220 skilled nursing facilities across the country.
“This resolution is the largest settlement with a skilled nursing facility chain in the department’s history,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “It is critically important that we protect the integrity of government health care programs by ensuring that services are provided based on clinical rather than financial considerations.”
This settlement resolves allegations that between Jan. 1, 2006 and Feb. 28, 2013, Life Care submitted false claims for rehabilitation therapy by engaging in a systematic effort to increase its Medicare and TRICARE billings. Medicare reimburses skilled nursing facilities at a daily rate that reflects the skilled therapy and nursing needs of their qualifying patients. The greater the skilled therapy and nursing needs of the patient, the higher the level of Medicare reimbursement. The highest level of Medicare reimbursement for skilled nursing facilities is for “Ultra High” patients who require a minimum of 720 minutes of skilled therapy from two therapy disciplines (e.g., physical, occupational, speech), one of which has to be provided five days a week.
The United States alleged in its complaint that Life Care instituted corporate-wide policies and practices designed to place as many beneficiaries in the Ultra High reimbursement level irrespective of the clinical needs of the patients, resulting in the provision of unreasonable and unnecessary therapy to many beneficiaries. Life Care also sought to keep patients longer than was necessary in order to continue billing for rehabilitation therapy, even after the treating therapists felt that therapy should be discontinued. Life Care carefully tracked the minutes of therapy provided to each patient and number of days in therapy to ensure that as many patients as possible were at the highest level of reimbursement for the longest possible period. The settlement also resolves allegations brought in a separate lawsuit by the United States that Forrest L. Preston, as the sole shareholder of Life Care, was unjustly enriched by Life Care’s fraudulent scheme.
“Billing federal healthcare programs for medically unnecessary rehabilitation services not only undermines the viability of those programs, it exploits our most vulnerable citizens,” said U.S. Attorney Nancy Stallard Harr for the Eastern District of Tennessee. “We are committed to working with our federal partners to protect both.”
“The resolution announced today demonstrates the commitment of the U.S. Attorney’s Office to aggressively pursue providers who utilize fraudulent practices to knowingly put their own financial self-interest over a duty to patients,” said U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida. “It is imperative that providers make healthcare decisions based upon a patient’s need for services rather than a self-serving desire to maximize financial profit. Our office will continue to investigate fraud allegations, in order to ensure that providers do not compromise the integrity of our public health care programs.”
As part of this settlement, Life Care has also entered into a five-year chain-wide Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.
“Therapy provided in skilled nursing facilities must be medically reasonable and necessary, and we will continue to vigorously investigate companies that subject their residents to needless and unreasonable therapy,” said HHS Inspector General Daniel R. Levinson. “The corporate integrity agreement with Life Care is designed to ensure that it only provides therapy based on the individual needs of each resident.
The settlement, which was based on the company’s ability to pay, resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Tammie Taylor and Glenda Martin, former Life Care employees. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The government may intervene and file its own complaint in such a lawsuit, as it has done in this case. The whistleblower reward in this case will be $29 million.
The settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Eastern District of Tennessee and the Southern District of Florida, and the HHS-OIG, with assistance from the U.S. Attorneys’ Offices for the District of Colorado, the Middle District of Florida, the Northern District of Georgia, the District of Massachusetts and the District of South Carolina and NCI/AdvanceMed, a Medicare Zone Program Integrity Contractor.
The two qui tam cases are docketed as United States ex rel. Taylor v. Life Care Centers of America, Inc., No. 1:12-cv-64 (E.D. Tenn) and United States ex rel. Martin v. Life Care Centers of America, Inc., No. 1:08-cv-251 (E.D. Tenn). The case against Forrest L. Preston is captioned United States v. Preston, No. 1:16-cv-113 (E.D. Tenn). The claims resolved by the settlement are allegations only; there has been no determination of liability.# # #
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Life Care Centers of America Inc. Agrees to Pay $145 Million to Resolve False Claims Act Allegations Relating to the Provision of Medically Unnecessary Rehabilitation Therapy ServicesRead the Press Release
Tampa, FL - Life Care Centers of America Inc. (Life Care) and its owner, Forrest L. Preston, have agreed to pay $145 million to resolve a government lawsuit alleging that Life Care violated the False Claims Act by knowingly causing skilled nursing facilities (SNFs) to submit false claims to Medicare and TRICARE for rehabilitation therapy services that were not reasonable, necessary or skilled, the Department of Justice announced today. Life Care, based in Cleveland, Tennessee, owns and operates more than 220 skilled nursing facilities across the country, including the Middle District of Florida.
“This resolution is the largest settlement with a skilled nursing facility chain in the department’s history,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “It is critically important that we protect the integrity of government health care programs by ensuring that services are provided based on clinical rather than financial considerations.”
This settlement resolves allegations that between Jan. 1, 2006 and Feb. 28, 2013, Life Care submitted false claims for rehabilitation therapy by engaging in a systematic effort to increase its Medicare and TRICARE billings. Medicare reimburses skilled nursing facilities at a daily rate that reflects the skilled therapy and nursing needs of their qualifying patients. The greater the skilled therapy and nursing needs of the patient, the higher the level of Medicare reimbursement. The highest level of Medicare reimbursement for skilled nursing facilities is for “Ultra High” patients who require a minimum of 720 minutes of skilled therapy from two therapy disciplines (e.g., physical, occupational, speech), one of which has to be provided five days a week.
The United States alleged in its complaint that Life Care instituted corporate-wide policies and practices designed to place as many beneficiaries in the Ultra High reimbursement level irrespective of the clinical needs of the patients, resulting in the provision of unreasonable and unnecessary therapy to many beneficiaries. Life Care also sought to keep patients longer than was necessary in order to continue billing for rehabilitation therapy, even after the treating therapists felt that therapy should be discontinued. Life Care carefully tracked the minutes of therapy provided to each patient and number of days in therapy to ensure that as many patients as possible were at the highest level of reimbursement for the longest possible period. The settlement also resolves allegations brought in a separate lawsuit by the United States that Forrest L. Preston, as the sole shareholder of Life Care, was unjustly enriched by Life Care’s fraudulent scheme.
As part of this settlement, Life Care has also entered into a five-year chain-wide Corporate Integrity Agreement with the Department of Health and Human Services Office of Inspector General (HHS-OIG) that requires an independent review organization to annually assess the medical necessity and appropriateness of therapy services billed to Medicare.
“This settlement addresses troubling conduct by a nationwide provider of rehabilitation services,” said United States Attorney A. Lee Bentley, III. “We will not tolerate this kind of fraud and abuse in skilled nursing facilities in our district.”
“Therapy provided in skilled nursing facilities must be medically reasonable and necessary, and we will continue to vigorously investigate companies that subject their residents to needless and unreasonable therapy,” said HHS Inspector General Daniel R. Levinson. “The corporate integrity agreement with Life Care is designed to ensure that it only provides therapy based on the individual needs of each resident.”
The settlement, which was based on the company’s ability to pay, resolves allegations originally brought in lawsuits filed under the qui tam, or whistleblower, provisions of the False Claims Act by Tammie Taylor and Glenda Martin, former Life Care employees. The act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The government may intervene and file its own complaint in such a lawsuit, as it has done in this case. The whistleblower reward in this case will be $29 million.
The settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $31.6 billion through False Claims Act cases, with more than $19.2 billion of that amount recovered in cases involving fraud against federal health care programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch, the U.S. Attorneys’ Offices for the Eastern District of Tennessee and the Southern District of Florida, and the HHS-OIG, with assistance from the U.S. Attorneys’ Offices for the District of Colorado, the Middle District of Florida, the Northern District of Georgia, the District of Massachusetts and the District of South Carolina and NCI/AdvanceMed, a Medicare Zone Program Integrity Contractor. In the Middle District of Florida, Assistant United States Attorneys Randy Harwell and Michael Kenneth assisted with the case.
The two qui tam cases are docketed as United States ex rel. Taylor v. Life Care Centers of America, Inc., No. 1:12-cv-64 (E.D. Tenn) and United States ex rel. Martin v. Life Care Centers of America, Inc., No. 1:08-cv-251 (E.D. Tenn). The case against Forrest L. Preston is captioned United States v. Preston, No. 1:16-cv-113 (E.D. Tenn). The claims resolved by the settlement are allegations only; there has been no determination of liability.
Licensed Occupational Therapist Pleads Guilty to $2.6 Million Medicare Fraud ConspiracyRead the Press Release
A licensed occupational therapist pleaded guilty today in Los Angeles for his role in a $2.6 million Medicare fraud scheme that involved billing for occupational therapy services that were not provided.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California and Special Agent in Charge Christian Schrank of the U.S. Department of Health and Human Services-Office of the Inspector General’s (HHS-OIG) Los Angeles Region made the announcement.
Keith Canlapan, 38, of West Covina, California, pleaded guilty to one count of conspiracy to commit health care fraud before U.S. District Judge George H. Wu of the Central District of California. Sentencing is scheduled for Feb. 16, 2017, before Judge Wu.
As part of his guilty plea, Canlapan admitted that he was a licensed occupational therapist employed with JH Physical Therapy, an occupational therapy clinic located in Walnut, California. Canlapan further admitted that through JH Physical Therapy, he billed Medicare for occupational therapy services when no such services were provided to the Medicare beneficiaries. Instead, the Medicare beneficiaries received massage and acupuncture services, which are not reimbursable under Medicare rules, he admitted. In fact, on dates that Canlapan purportedly provided occupational services to Medicare beneficiaries at JH Physical Therapy, Canlapan was admittedly not present at JH Physical and instead was either out of the country or at his other places of employment on some of those dates.
Between approximately October 2009 and approximately December 2012, Canlapan, through JH Physical Therapy, billed Medicare $2,669,618 in false and fraudulent claims, of which Medicare paid $1,860,786, he admitted.
Canlapan was charged in an indictment returned on June 16, 2016, along with co-defendants Simon Hong, 54, and Grace Hong, 50, husband and wife, both of Brea, California. Simon Hong is the owner and Grace Hong is the co-operator of JH Physical Therapy, and they are charged with one count of conspiracy to commit health care fraud and three counts of health care fraud. Both are pending trial, which is scheduled for Jan. 17, 2017. An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Co-conspirator Roderick Belmonte Concepcion, a licensed occupational therapist, was also previously indicted in a separate related case and pleaded guilty in April 2016. His sentencing is scheduled for Jan. 23, 2017.
The case was investigated by the Los Angeles Region of HHS-OIG, and was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. The case is being prosecuted by Trial Attorney Blanca Quintero of the Fraud Section.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,900 defendants who collectively have billed the Medicare program for over $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.