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Monday 3 October 2016
Tenet Healthcare Corporation will pay over $513 Million for defrauding the United States and making illegal payments in exchange for patient referrals – two Tenet Subsidiaries agree to plead guiltyRead the Press Release
ATLANTA – A major U.S. hospital chain, Tenet Healthcare Corporation, and two of its Atlanta-area subsidiaries will pay over $513 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States and to pay kickbacks in exchange for patient referrals
In addition, two Tenet subsidiaries, Atlanta Medical Center Inc. and North Fulton Medical Center Inc., have agreed to plead guilty to conspiracy to defraud the United States and to pay health care kickbacks and bribes in violation of the Anti-Kickback Statute (AKS). The plea agreements remain subject to acceptance by the court. Up until April 2016, Atlanta Medical Center Inc. and North Fulton Medical Center Inc. owned and operated acute-care hospitals located in the greater Atlanta metropolitan area.
“Our Medicaid system is premised on a patient’s ability to make an informed choice about where to seek care without undue interference from those seeking to make a profit,” said U.S. Attorney John Horn. “Tenet cheated the Medicaid system by paying bribes and kickbacks to a pre-natal clinic to unlawfully refer over 20,000 Medicaid patients to the hospitals. In so doing, they exploited some of the most vulnerable members of our community and took advantage of a payment system designed to ensure that underprivileged patients have choices in receiving care.”
“When pregnant women seek medical advice, they deserve to receive care untainted by bribes and illegal kickbacks,” said Principal Deputy Assistant Attorney General Bitkower. “The Tenet case is the first brought through the assistance of the Criminal Division’s corporate health care fraud strike force. This is one of more than a dozen active corporate investigations by the strike force, and we are committed to following evidence of health care fraud wherever it leads – whether it be individual physicians, pharmacy owners or corporate boardrooms.”
“The Department of Justice continues to devote enormous resources to exposing and pursuing alleged misconduct of improper financial relationships between hospitals and referral sources,” said Principal Deputy Assistant Attorney General Mizer. “Such relationships exploit vulnerable populations and threaten to drive up the cost of healthcare for everyone. In addition to yielding a substantial recovery for taxpayers, this settlement reflects the department’s lack of tolerance for these types of abusive arrangements, and the negative effects they can have on our health care system.”
“The global resolution of this complex and sophisticated fraud scheme exemplifies what can be accomplished through the cooperation of federal and state investigative and prosecutorial authorities,” said U.S. Attorney Peterman. “I am particularly proud of the civil attorneys in the U.S. Attorney’s Office for the Middle District of Georgia, working hand in hand with investigators of the U.S. Department of Health and Human Services and attorneys in the Civil Division and the Medicaid Fraud Control Unit of the Office of the Attorney General of Georgia, whose combined efforts greatly contributed to this outstanding result on behalf of the American taxpayers.”
“Tenet took advantage of vulnerable pregnant women in clear violation of the law by paying kickbacks in order to bring their referrals to Tenet hospitals,” said Georgia Attorney General Olens. “Through this scheme, Tenet defrauded the Georgia Medicaid program, and reaped hundreds of millions of dollars. This is an unprecedented settlement for the state of Georgia, and reflects my office’s commitment to protecting Georgia taxpayers by uncovering Medicaid fraud and abuse.”
“The FBI continues to play a significant role in ensuring that federal laws related to the healthcare industry, to include the federally funded Medicare and Medicaid programs, are enforced,” said Acting Special Agent in Charge George Crouch. “The settlement agreements announced today involving Tenet Healthcare Corporation, as well as related guilty pleas by two of its Atlanta-based hospitals, Atlanta Medical Center Inc., and North Fulton Medical Center Inc., are a clear example of those efforts. In addition, the FBI’s Major Provider Response Team (MPRT) assisted the Atlanta Field Office in the civil and criminal investigation of Tenet. The MPRT was created in 2011 in response to numerous healthcare related corporate-level schemes resulting in billions in losses to healthcare plans. The FBI, along with its MPRT, will continue to aggressively address the threat of large-scale corporate healthcare schemes significantly impacting both private and government healthcare benefit plans.”
“OIG continues to emphasize investigation of improper financial relationships between health care providers,” said Special Agent in Charge Jackson. “Using their positions of trust, health providers – after receiving payments from Tenet – sent expectant women specifically to Tenet hospitals. Patients were often directed to Tenet facilities miles and miles from their homes and on their journeys passed other hospitals that could have provided needed care. These women were thereby placed at increased risk during one of the most vulnerable points in their lives. HHS-OIG will continue to protect patients by exposing such illegal arrangements.”
Atlanta Medical Center Inc. and North Fulton Medical Center Inc. were charged in a criminal information filed today in federal court in Atlanta with conspiracy to defraud the United States by obstructing the lawful government functions of HHS and to violate the AKS, which, among other things, prohibits payments to induce the referral of patients for services paid for by federal health care programs. The two Tenet subsidiaries have agreed to plead guilty to the charges alleged in the criminal information and will forfeit over $145 million to the United States – which represents the amount paid to Atlanta Medical Center Inc. and North Fulton Medical Center Inc. by the Medicare and Georgia Medicaid programs for services provided to patients referred as part of the scheme.
Tenet Health System Medical Inc. and its subsidiaries (collectively THSM) entered into a non-prosecution agreement (NPA) with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Georgia related to the charges in the criminal information. THSM is the parent company of Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital, and employed their executives. THSM is a subsidiary of Tenet Healthcare Corporation. Under the terms of the NPA, THSM and Tenet will avoid prosecution if they, among other requirements, cooperate with the government’s ongoing investigation and enhance their compliance and ethics program and internal controls. Tenet has also agreed to retain an independent compliance monitor to address and reduce the risk of any recurrence of violations of the AKS by any entity owned in whole, or in part, by Tenet. The term of THSM’s and Tenet’s obligations under the NPA is three years, but the NPA may be extended for up to one year.
In the civil settlement, Tenet agreed to pay $368 million to the federal government, the state of Georgia and the state of South Carolina to resolve claims asserted in United States ex rel. Williams v. Health Mgmt. Assocs., Tenet Healthcare, et al., a lawsuit filed by Ralph D. Williams, a Georgia resident, in the Middle District of Georgia, under the federal and Georgia False Claims Acts. The acts permit whistleblowers to file suit for false claims against the government entities and to share in any recovery. The federal share of the civil settlement is $244,227,535.30, the state of Georgia will recover $122,880,339.70 and the state of South Carolina will recover $892,125. Mr. Williams’ share of the combined civil settlement amount is approximately $84.43 million.
As alleged in the criminal information as well as civil complaints filed by the department and the state of Georgia in 2014 and 2013, Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital paid bribes and kickbacks to the owners and operators of prenatal care clinics serving primarily undocumented Hispanic women in return for the referral of those patients for labor and delivery medical services at Tenet hospitals. These kickbacks and bribes allegedly helped Tenet obtain more than $145 million in Medicaid and Medicare funds based on the resulting patient referrals.
According to the criminal information, as part of the scheme, expectant mothers were in some cases told at the prenatal care clinics that Medicaid would cover the costs associated with their childbirth and the care of their newborn only if they delivered at one of the Tenet hospitals, and in other cases were simply told that they were required to deliver at one of the Tenet hospitals, leaving them with the false belief that they could not select the hospital of their choice. The criminal information alleges that as a result of these false and misleading statements and representations, many expectant mothers traveled long distances from their homes to deliver at the Tenet hospitals, placing their health and safety, and that of their newborn babies, at risk.
The criminal information also charges Atlanta Medical Center Inc. and North Fulton Medical Center Inc. with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA). The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA. The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.
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Randy S. Chartash, Chief of Economic Crime, and Stephen H. McClain, Deputy Chief of Economic Crime, of the U.S. Attorney’s Office of the Northern District of Georgia, and Deputy Chief Joseph S. Beemsterboer, Assistant Chief Robert A. Zink, and Trial Attorneys Sally B. Molloy, Antonio M. Pozos and A. Brendan Stewart of the Criminal Division’s Fraud Section represented the government in the criminal prosecution.
The FBI’s Atlanta Field Office, HHS-OIG and the FBI Healthcare Fraud Unit MPRT investigated the case.
The criminal information also charges Atlanta Medical Center Inc. and North Fulton Medical Center Inc. with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA). The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA. The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.
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 HHS. 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 $30.9 billion through False Claims Act cases, with more than $18.6 billion of that amount recovered in cases involving fraud against federal health care programs.
If you believe you are a victim of this offense, please visit this website or call (888) 549-3945.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Stafford Springs Man Pleads Guilty to Defrauding U.S. VeteransRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN J. SIMON, JR., also known as “Buzzy Simon,” 69, of Stafford Springs, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of mail fraud and one count of structuring currency transactions.
According to court documents and statements made in court, from March 2009 to August 2010, SIMON, a Vietnam War veteran, engaged in a scheme to defraud four military veterans by representing that, in exchange for money, he could assist them in obtaining increased benefits from the Department of Veterans Affairs (“VA”). The veterans suffer from service-related disabilities and/or are chronically ill. SIMON falsely represented that the money the veterans provided to him would be used to pay for the services of an attorney or other expenses. With respect to one veteran, SIMON also falsely told him that he would assist the veteran in obtaining Social Security benefits.
SIMON did not initiate any claims for the four veterans and he did not incur any legal or other expenses on behalf of the veterans. Rather, he kept the money for his personal use.
As part of the plea agreement, SIMON has agreed that he defrauded 11 other military veterans and one non-veteran by representing that he could obtain new or increased benefits from the VA or Social Security Administration.
In total, SIMON defrauded 16 victims of approximately $525,431.
SIMON also structured approximately $36,000 in cash deposits into his bank account from October 2009 to June 2010. The funds structured were payments he had received from the fraud scheme. At the time, SIMON knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and that by conducting his financial transactions in amounts less than $10,000.01, he intended to evade the transaction reporting requirements.
Federal law requires all financial institutions to file a Currency Transaction Report (“CTR”) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
SIMON was arrested on a criminal complaint on May 15, 2013.
Judge Shea scheduled sentencing for January 10, 2017, at which time SIMON faces a maximum term of imprisonment of 30 years.
SIMON has agreed that $210,085.58 that the IRS seized from his bank account in October 2010 will be used to pay restitution to the victims of his criminal conduct.
SIMON was released on bond pending sentencing.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division and the U.S. Department of Veterans Affairs, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Six Indicted for Carjacking and Series of Armed Robberies in Albemarle and Greene CountiesRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A federal grand jury sitting in the United States District Court for the Western District of Virginia in Charlottesville has indicted six individuals on charges related to a series of violent armed robberies and a carjacking that occurred in Albemarle and Greene counties in recent months, United States Attorney John P. Fishwick Jr. announced.
In an indictment returned last week, the grand jury has charged Terence Tyree, a.k.a. “TJ,” 19, of Ruckersville, Virginia, in counts one and three through seven. Kentarian Jones, a.k.a. “Kentavia,” 19, of Earlysville, Virginia, is charged in counts one and four through seven. Demetrius Steppe, 20, of Ruckersville, is charged in counts one through three. Jacquarius Johnson, a.k.a. “Corey,” 18, of Charlottesville, Virginia, is charged in counts six and seven. Isaiah Wilson, 24, of Charlottesville, is charged in Count two and Chelsea Elizabeth Scott, 24, of Ruckersville, is charged in count four.
All six defendants had their initial court appearances in United States District Court in Charlottesville today and have been held, without bond, pending trial, which has been preliminarily set for December 12, 2016.
According to the indictment, the six individuals are charged with participating in a series of armed robberies of businesses and individuals in Albemarle and Greene counties. Three of these individuals are charged in a violent home invasion, abduction and armed carjacking in Albemarle County.
The indictment charges that on June 9, 2016, Tyree and Jones committed an armed robbery that occurred at the Papa John’s in Greene County, Virginia. Tyree and Steppe are also charged with committing an armed robbery of the same Papa John’s on June 17, 2016.
The indictment further charges that on June 12, 2016, Wilson and Steppe committed an armed robbery of the 7-11 in Albemarle County. Tyree, Jones and Johnson are also charged with committing an armed robbery of this same 7-11 location on July 18, 2016.
The indictment further charges that on June 27, 2016, Tyree, Jones and Scott committed an armed robbery of Domino’s Pizza located in Albemarle County.
The indictment further charges that Tyree and Jones committed an armed robbery of the Domino’s Pizza in Greene County on July 7, 2016.
Finally, the indictment charges that on July 18, 2016, Tyree, Jones and Johnson committed an armed carjacking of Victim A by using force and intimidation, with the intent to cause death and serious bodily harm.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Albemarle County Police Department and the Greene County Sheriff’s Office. Assistant United States Attorneys Ronald M. Huber and Christopher Kavanaugh will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
September 11th Victim Compensation Fund Begins Payments to Group B ClaimantsRead the Press Release
September 11th Victim Compensation Fund (VCF) Special Master Rupa Bhattacharyya announced that the VCF began payments today on Group B claims after the funding to pay became available on Oct. 1 as set forth in the 2015 Reauthorization Act of the VCF. Group A claims are claims for which a loss was determined and a letter notifying the claimant of the award decision on the claim was issued on or before Dec. 17, 2015. Group B claims are those that are not in Group A.
The VCF has been preparing to issue Group B payments for several weeks and the Special Master has authorized more than 500 claims for payment. Payments will be made first to those with exigent circumstances and then in order based on the date the claimant was notified of his or her award. Once the Department of Justice provides the payment information to the U.S. Department of the Treasury, it may take up to three weeks for the payment to be made to the claimant’s designated bank account.
“In the last 10 weeks since I transitioned into the role of Special Master, the VCF has issued determinations on more than 900 compensation claims and amendments and just under 1,200 eligibility claims and amendments,” said Special Master Bhattacharyya. “This reflects the overall hard work done by the VCF team over the last several months and continues to demonstrate our progress and commitment to the 9/11 community and to providing deserved compensation to those who have suffered as a result of the terrorist attacks of Sept. 11, 2001.”
The VCF continues to focus on processing Group B claims that were submitted before Aug. 1, when the new claim form became available. Claims are being processed in priority order, with decisions being rendered on the oldest claims before claims that have been pending for less time. As of early September, there were nearly 1,300 of these claims - approximately 800 of which were submitted more than one year ago. The VCF anticipates that compensation claims that include all information required for review and that were submitted more than two years ago should be completed by year end and hopes to also make substantial progress on similarly situated claims submitted over one year ago.
As of Oct. 3, the VCF has issued more than 10,700 awards over the life of the program, including 9,130 awards in Group A and 1,573 awards in Group B. When combined, these awards total approximately $2.05 billion ($1.822 billion to Group A and $228 million to Group B).
For additional information about how to file a claim, please visit the “How to File a Claim” page on the VCF’s website at www.vcf.gov and information on policies and procedures can be obtained at https://www.vcf.gov/pdf/VCFPolicy.pdf. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555. Individuals who have been diagnosed with a 9/11-related illness that is not currently on the list of eligible conditions should periodically check the World Trade Center Health Program website at http://www.cdc.gov/wtc/conditions.html to see if the condition is added to the list.
Seguin Businessman Sentenced to Federal Prison and Ordered to Pay over $274,000 in Fraudulent S.N.A.P. Benefits SchemeRead the Press Release
In San Antonio this morning, 67-year-old Nasir Ali, manager/owner of J.R. Food Mart in Seguin, TX, was sentenced to one year in federal prison for defrauding the U.S. Department of Agriculture (USDA) Food Stamp Program announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge David A. Ezra ordered that Ali pay $274,349.17 restitution and be placed on supervised release for a period of three years after completing his prison term.
On May 23, 2016, Ali pleaded guilty to four wire fraud counts. By pleading guilty, Ali admitted that from November 2009 until March 2013, he fraudulently traded Supplemental Nutrition Assistance Program (SNAP) benefits for prohibited items and cash. At times, Ali would charge the beneficiaries up to double the amount for cash or for ineligible items including tobacco and alcohol.
This case was investigated by agents with the U.S. Department of Agriculture Office of Inspector General together with the Texas Alcoholic Beverage Commission (TABC) and the Seguin Police Department. Assistant United States Attorney Tom Moore prosecuted this case by the Government.
Second Chicago woman sentenced for credit card fraudRead the Press Release
CHARLESTON, W.Va. – A Chicago woman was sentenced today to six months of home incarceration, to be followed by three years of probation, for credit card fraud, announced United States Attorney Carol Casto. Christine Johnson, 26, previously entered her guilty plea to possession of 15 or more counterfeit access devices. A counterfeit access device is a credit card that has been altered so that it contains stolen information that has been re-encoded on the magnetic strip on the back of the card.
Johnson admitted that she, along with three codefendants, Wynesha Wilson-Robinson, Stephanie Stevenson, and Crystal Merritt, possessed over 100 counterfeit access devices. Johnson, along with the other codefendants, drove from Chicago to attempt to use these credit cards. On June 5, 2015, they were observed at the South Charleston Target and Walmart attempting to use the counterfeit cards. The four were arrested by law enforcement after store employees became suspicious of the multiple attempts to use credit cards to complete a purchase.
The South Charleston Police Department and the United States Secret Service conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
Two of Johnson’s codefendants are awaiting sentencing and one has already been sentenced. Crystal Merritt is scheduled to be sentenced on October 19, 2016. Stephanie Stevenson is scheduled to be sentenced on November 3, 2016. Wilson-Robsinson was sentenced to five months in federal prison, to be followed by five years of probation. Wilson-Robinson was further ordered to serve the first five months of her probation on home incarceration.
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Pike County, Ill., Man Convicted for Transportation of a Minor with Intent to Engage in Illegal Sexual ActivityRead the Press Release
Springfield, Ill. - A jury has convicted a New Canton, Ill., man, Ralph David Hathaway, 47, for transportation of a minor with the intent to engage in illegal sexual activity and two counts of travel with intent to engage in illicit sexual conduct. The jury deliberated for approximately one hour on Friday, Sept. 30, before returning the guilty verdicts on all counts. Senior U.S District Judge Richard Mills scheduled sentencing for Hathaway on Feb. 15, 2017.
At trial, which began on Monday, Sept. 26, the government presented evidence that over a two-year period, beginning in 2013, Hathaway traveled on several occasions from his home in Pike county to South Carolina to have illegal sexual activity with a 13-year-old girl whom Hathaway had met online. The jury also heard evidence that in June 2015, Hathaway transported the girl from South Carolina to his camper located in Troy, Missouri.
At sentencing, Hathaway faces statutory penalties of no less than 10 years in prison and up to life in prison. Hathaway has remained in the custody of the U.S. Marshals Service since he was arrested in July 2015 in Troy, Mo.
The charges are the result of an investigation by the Federal Bureau of Investigation, Springfield, Ill., San Francisco, Calif., Charleston, S.C., and St. Louis, Mo. divisions; the Pike County Illinois Sheriff’s Office; St. Charles County (Mo.) Cyber Crime Task Force; the Lincoln County (Mo.) Sheriff’s Office; Horry County (S.C.) Police Department; San Mateo (Calif.) Police Department; and Daly City (Calif.) Police Department. At trial, the government was represented by Assistant U.S. Attorneys Victor Yanz and Gregory M. Gilmore.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Philadelphia Man Gets Two Years in Prison for Fradulently Exchanging over $1.2 Million in Food Stamp Benefits for CashRead the Press Release
CAMDEN, N.J. – A grocery store owner from Philadelphia was sentenced today to 24 months in prison for stealing more than $1.2 million through a food stamp scheme, U.S. Attorney Paul J. Fishman announced.
Kaher Abdullah, 58, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of theft of government funds. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In June 2011, Abdullah opened Express Food Mart on South Broadway in Camden. Express Food Mart was a small grocery store that was authorized to accept Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps). The program is administered by the U.S. Department of Agriculture.
Abdullah admitted he controlled a business bank account at CitiBank to receive the reimbursements for SNAP benefits. He knew that as a SNAP retailer, he was not allowed to exchange food stamps for cash.
From Nov. 1, 2011 through October 2014, he and others under his supervision illegally permitted recipients of SNAP benefits to redeem those benefits at Express Food Mart for cash rather than food. Abdullah admitted that, in general, he and other employees redeemed SNAP benefits for approximately 50 cents on the dollar. He also admitted that from November 2011 through October 2014, Express Food Mart received through its Citibank business account approximately $1,264,006.47 for illegally redeemed SNAP benefits.
Abdullah admitted that shortly after receiving the money in the Express Food Mart account, he transferred the money to another account which he used to pay personal expenses.
In addition to the prison term, Judge Rodriguez ordered Abdullah to serve three years of supervised released and pay restitution of $1,264,006.
U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires in New York; and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence Opiola.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Justin Loughry Esq., Camden
Philadelphia Man Charged with Receiving and Distributing Child PornographyRead the Press Release
Adam Dolceamore, 35 of Philadelphia, PA was charged on September 29, 2016 by Indictment with one count of receiving and one count of distributing child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible, sentence of up to 40 years’ imprisonment, 5 years supervised release, a $500,000 fine, mandatory forfeiture and a $200 special assessment
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Priya T. DeSouza.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parker Businesswoman Pleads Guilty to Embezzling from Employee Benefit PlansRead the Press Release
DENVER – Emily R. Strunk, age 45, of Parker, Colorado, pled guilty last week before U.S. District Court Judge William J. Martinez to wire fraud, money laundering, and embezzlement from an employee benefit plan, the U.S. Attorney’s Office, U.S. Department of Labor Employee Benefits Security Administration and the IRS Criminal Investigation announced. Strunk was indicted by a federal grand jury in Denver on April 7, 2016. Strunk is scheduled to be sentenced by Judge Martinez on January 25, 2017.
According to the facts in the indictment and plea agreement, Strunk was a third-party administrator for employee pension and retirement plans, operating through various businesses including North American Employer Solutions, LLC; BAC Human Resources, LLC; Colorado Benefits Outsourcing, LLC; Benefits Team Administration, LLC; Benefits Administrators & Consultants LLC; and Columbine Employee Benefits Inc. Starting in 2005, and continuing through September 2015, Strunk devised a scheme to fraudulently obtain money from the employee pension or retirement funds of her clients. Strunk would recruit clients, typically small employers, to hire her to be a third-party administrator for the employee pension or retirement plans (“the plans”) the client offered to its employees. Strunk would gain access to the plan assets, either by directly transferring plan assets to bank accounts she controlled or directing her clients to transfer funds to those bank accounts. She also received plan deferrals (or, contributions from plan participants) directly into her checking accounts.
As part of the scheme, Strunk misrepresented the nature of the accounts to which the plan assets were transferred, identifying or representing that the accounts were “trust accounts” in which she kept client funds for purposes of investment in the plans, when in fact the accounts were simply corporate checking accounts. After clients’ funds were deposited into checking accounts Strunk controlled, she did not segregate client funds or track the amounts belonging to her clients. Instead, she used the plan assets for her own personal and business expenses and used her clients’ plan assets to pay off other clients who had terminated her services.
She concealed her fraud by causing a third party record keeper, who provided online account statements to plans and plan participants, to create “tickers” identifying “outside assets” associated with their plans which in fact did not exist. This gave the appearance that funds Strunk stolen from her clients were actually still invested in the plan. Additionally, Strunk filed and/or caused to be filed false Forms 5500 with the Department of Labor for client plans subject to the Employee Retirement Income Security Act (ERISA). She falsely stated the total amount of plan assets and omitted that her fraud and dishonesty caused a loss to the plan, thereby concealing her fraud.
Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000 per count. Money Laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000 per count. Theft from employee benefit plan carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by the Department of Labor Employee Benefits Security Administration (DOL-EBSA) and the Internal Revenue Service – Criminal Investigation (IRS-CI). The case is being prosecuted by the U.S. Attorney’s Office Economic Crimes Section.
Otero County Man Sentenced to 70 Months in Prison for Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – David Ausborn Hiles, 49, of La Luz, N.M., was sentenced today in federal court in Las Cruces, N.M., to 70 months in prison followed by three years of supervised release for being a felon in possession of firearms and ammunition. Hiles was also ordered to forfeit 36 firearms and approximately 15,000 rounds of ammunition.
Hiles was arrested in Feb. 2015, on a criminal complaint charging him with being a felon in possession of firearms and ammunition. The complaint charged Hiles with unlawfully possessing 36 firearms and ammunition at his residence in Otero County, N.M., on Nov. 25, 2014. According to the criminal complaint, the New Mexico State Police found the firearms and ammunition while executing a search warrant at Hiles’ residence.
Hiles was subsequently indicted on the same charge on April 14, 2015. Accorindg to the indictment, Hiles was prohibited from possessing either firearms or ammunition because he previously has been convicted of the felony offenses of attempting to manufacture methamphetamine, tampering with evidence, aggravated assault with a deadly weapon and intimidation of a witness.
On Jan. 14, 2016, Hiles pled guilty to a felony information charging him with being a felon in possession of firearms and ammunition. Hiles admitted that on Nov. 25, 2014, he was in possession of 36 firearms and approximately 15,000 rounds of miscellaneous ammunition.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Mexico State Police, with assistance from the 12th Judicial District Attorney’s Office for the State of New Mexico. Assistant U.S. Attorney Maria Y. Armijo prosecuted the case.
Orthopedic Clinics to Pay $2.39 Million to Settle Allegations of Billing Federal Health Care Programs for Reimported ProductsRead the Press Release
SACRAMENTO, Calif. — Three orthopedic clinics will pay a combined $2.39 million to resolve federal and state False Claims Act allegations that they knowingly billed federal and state health care programs for reimported osteoarthritis medications, known as viscosupplements, Acting United States Attorney Phillip A. Talbert announced today.
Orthopedic Associates of Northern California, located in Chico, California, will pay $815,794; San Bernardino Medical Orthopaedic Group Inc., DBA Arrowhead Orthopaedics, headquartered in Redlands, California, will pay $971,903; and Reno Orthopaedic Clinic, headquartered in Reno, Nevada, will pay $602,335.
Viscosupplements, such as Synvisc, Orthovisc, and Euflexxa are injections approved by the Food and Drug Administration for the treatment of osteoarthritis pain in the knee. Viscosupplements are reimbursed by Medicare, Medicaid and other federal health care programs at a set rate based on the average sales price of the domestic product. The government contended that the clinics knowingly purchased deeply discounted viscosupplements that were reimported from foreign countries and billed them to state and federal health care programs in order to profit from the reimbursement system, when such reimported viscosupplements were not reimbursable by those programs. The reimported products allegedly included labeling in foreign languages and in English for additional uses not approved in the United States, which demonstrated that the product was reimported. Moreover, because the product was reimported, the government alleged there was no manufacturer assurance that it had not been tampered with or that it was stored appropriately.
“We are committed to maintaining the integrity of the health care system to ensure that patients receive drugs and devices that are safe and effective, and will take action against companies that take chances with the health of consumers in order to improve their own bottom lines.” said Acting U.S. Attorney Talbert.
“Medicare will not put the health of its beneficiaries at risk by paying for items that have been ‘reimported’ to this country by foreign suppliers,” said HHS OIG SAC Steven J. Ryan. “Once a product leaves the U.S., there is no accountability for whether it is the actual medication being billed, whether it has been properly stored or whether it could be too old to be useful. We will vigorously pursue providers who use and bill for these substances.”
The allegations resolved by the settlement were first raised in a lawsuit filed against the clinics under the qui tam, or whistleblower, provisions of the False Claims Act by a Senior Musculoskeletal Specialty Manager in the Biosurgery Division of Sanofi S.A., which manufactures Synvisc. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $430,000 of the recovery proceeds.
This case was prosecuted by Assistant United States Attorney Catherine Swann through a coordinated effort with the Department of Health and Human Services Office of Inspector General and Office of General Counsel, the Food and Drug Administration Office of Office of Chief Counsel, the California Department of Justice, Office of the Attorney General, Bureau of Medi-Cal Fraud and Elder Abuse, and the Nevada Attorney General, Medicaid Fraud Control Unit. The claims settled by this agreement are allegations only, and there has been no determination of liability.
October 2-8, 2016 Designated as National Community Policing WeekRead the Press Release
KNOXVILLE, Tenn. –President Obama has designated the week of Oct. 2-8, 2016, as National Community Policing Week. As part of the Obama Administration's commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice will participate in events in support of community policing efforts around the country.
The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
Along with President Obama and Attorney General Lynch, the U.S. Attorney’s Office for the Eastern District of Tennessee is committed to doing its part to support law enforcement and the residents of its communities. U.S. Attorney Nancy Stallard Harr is encouraging local law enforcement to work with federal, state and other local police partners, community organizations, and stakeholders to hold appropriate events and engagement activities not only throughout National Community Policing Week, but on a regular basis. “These collective efforts and participation will ensure the continuation of the critical work being done across the country to make neighborhoods safer, stronger, and more united,” stated U.S. Attorney Harr.
Recently the U.S. Attorney’s office was notified of a number of federal grants which were awarded to local law enforcement and other agencies across east Tennessee to aide them in their efforts to protect and keep our communities safe. Highlights of these grant awards include:
COPS HIRING PROGRAM (CHP)
- Hamilton County Sheriff - $175,000
CHP grants provide matching funding awards to 184 law enforcement agencies across the nation, aimed at creating, or in some cases protecting, more than 900 law enforcement positions. CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts.
FY16 EDWARD BYRNE MEMORIAL ASSISTANCE GRANT (JAG) PROGRAM
- Blount County - $20,161
- City of Cleveland - $39,340
- Cocke County - $10,398
- City of Chattanooga - $138,816
- City of East Ridge - $11,084
- City of Johnson City - $31,122
- City of Kingsport - $22,193
- City of Knoxville (to share with Knox County) - $153,452
- City of Morristown - $13,098
- Sullivan County - $23,069
The JAG program allows states and units of government, including Indian tribes, to support a broad range of activities to prevent and control crime based on their own state and local needs and conditions. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice, including for any one of more of the following program areas: 1) law enforcement programs; 2) prosecution and court programs; 3) prevention and education programs; 4) corrections and community corrections programs; 5) drug treatment and enforcement programs; 6) planning, evaluation, and technology improvement programs; and 7) crime victim and witness programs.
FY 16 ADULT DRUG COURT DISCRETIONARY GRANT PROGRAM
- Morgan County - $300,000
- Sevier County - $300,000
The purpose of the Adult Drug Court Discretionary Grant Program is to provide financial and technical assistance to states, state courts, local courts, units of local government, and Indian tribal governments to develop and implement drug courts that effectively integrate evidence-based substance abuse treatment, mandatory drug testing, sanctions and incentives, and transitional services in a judicially supervised court setting with jurisdiction over substance abuse offenders.
FY16 BODY-WORN CAMERA (BWC) POLICY AND IMPLEMENTATION PROGRAM: IMPLEMENTATION OR EXPANSION OF BWC PROGRAMS FOR LARGE AGENCIES
- City of Chattanooga - $299,992
- City of Morristown - $42,500
The BWC Policy and Implementation Program supports the implementation of body-worn camera programs in law enforcement agencies across the country. The intent of the program is to help agencies develop, implement, and evaluate a BWC program as one tool in a law enforcement agency’s comprehensive problem solving approach to enhance officer interactions with the public and build community trust. Elements of such an approach include: implementation of a BWC program developed in a planned and phased approach; collaboration that leverages partnerships with cross-agency criminal justice stakeholders including prosecutors and advocacy organizations; implementation of appropriate privacy policies; implementation of operational procedures and tracking mechanisms; training of officers, administrators, and associated agencies requiring access to digital multimedia evidence; and adoption of practices and deployment of BWC programs appropriately addressing operational requirements.
IMPROVING CRIMINAL JUSTICE RESPONSE PROGRAM
- Partnership for Families, Children and Adults, Incorporated, Chattanooga - $442,343
The Improving Criminal Justice Response Program implements certain provisions of the Violence Against Women Act (VAWA) which enhances victim safety and offender accountability in cases of sexual assault, domestic violence, dating violence, and stalking by encouraging jurisdictions to implement pro-arrest policies as an effective intervention that is part of a coordinated community response. An integral component of this program is the creation and enhancement of collaborative partnerships between criminal justice agencies, victim services providers, and community organizations which respond to sexual assault, domestic violence, dating violence and stalking.
FY16 INTERNET CRIMES AGAINST CHILDREN TASK FORCE (ICAC)
- City of Knoxville - $381,931
The National Internet Crimes Against Children (ICAC) Task Force consists of state and local law enforcement task forces dedicated to developing effective responses to online enticement of children by sexual predators, child exploitation, and child obscenity and pornography cases.
FY 16 MENTORING OPPORTUNITIES FOR YOUTH INITIATIVE
Knoxville Leadership Foundation - $1,250,000
The Knoxville Area Mentoring Initiative (KAMI) is a collaborative mentoring project built on the resources of the strongest mentoring organizations in east Tennessee. KAMI is led by Knoxville Leadership Foundation through their program Amanchi Knoxville, and with partners Emerald Youth Foundation, Big Brothers Big Sisters of East Tennessee, Joy of Music School and Girls on the Run.
The Mentoring Opportunities for Youth Initiative provides funding to support organizations that form a collaborative of at least three and as many as five mentoring organizations in their efforts to strengthen and/or expand their existing mentoring programs to reduce juvenile delinquency, drug abuse, truancy, and other problem and high-risk behaviors. FY 2016 funding addresses the factors that can lead to or serve as a catalyst for delinquency or other problem behaviors for at-risk and high-risk youth.
TRANSITIONAL HOUSING GRANT ASSISTANCE PROGRAM
- Helen Ross McNabb Center, Incorporated - $350,000
The primary purpose of the Transitional Housing Assistance Program is to provide aid to victims of sexual assault, domestic violence, dating violence, and stalking who are homeless, or in need of transitional housing or other housing assistance, including short-term housing assistance and supportive services; and for whom emergency shelter services or other crisis intervention services are unavailable or insufficient. The program also focuses on supporting a holistic, victim-centered approach to provide transitional housing services that move individuals into permanent housing. It is critical that successful transitional housing programs provide a wide range of flexible and optional services that reflect the differences and individual needs of victims and that allow victims to choose the course of action that is best for them.
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North Carolina Couple Sentenced for Government Contract FraudRead the Press Release
GREENEVILLE, Tenn. – On Oct. 3, 2016, Ricky Anthony Lanier, 49, and his wife Katrina Reshina Lanier, 43, both of LaGrange, N.C., were sentenced to serve federal prison terms of 48 months and 30 months, respectively, for conspiracy to commit wire fraud, wire fraud, and major fraud against the United States. The couple were found guilty of these offenses on Dec. 17, 2015, following a 13-day jury trial in U.S. District Court.
According to evidence presented at trial, the Laniers conspired from November 2005 to April 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Department of Veterans Affairs’ (VA) Service-Disabled Veteran-Owned Small Business (SDVOSB) program and the Small Business Administration’s (SBA) 8(a) Business Development program. They falsely represented that JMR Investments was eligible as an 8(a) business and Kylee Construction was eligible as an SDVOSB and an 8(a) business.
Ricky Lanier, who had previously owned and operated an 8(a) business receiving government contracts, became ineligible to participate in the 8(a) program after that business graduated from that program in 2008. Lanier used a friend and service-disabled veteran as the purported owner of Kylee Construction, representing that the friend was involved in the daily management of the business, even while the friend was working for a government contractor in Afghanistan. The Laniers used a business owned by Ricky Lanier’s college roommate, JMR Investments, as a front to obtain construction contracts from the National Park Service and other federal agencies under the 8(a) program, misrepresenting the friend’s involvement in the management and operation of the business. The scheme also involved sub-contracting out all or almost all of the work on the contracts in violation of program requirements.
Ricky Lanier also defrauded the National Park Service in connection with a contract to replace a wastewater treatment facility at the Tremont Institute in the Great Smoky Mountains National Park, falsely representing subcontractor costs by over $400,000, resulting in the award of a $1.1 million contract for work on the project that was actually performed by a subcontractor for only $550,000. Lanier also fraudulently obtained a $1.3 million construction contract at the James H. Quillen VA Medical Center which had been set aside for SDVOSBs.
As a result of the false representations, Kylee Construction was awarded over $5 million in government contracts and JMR Investments was awarded over $9 million in government contracts. The Laniers received almost $2 million in financial benefit from the scheme, using accounts of the shell companies for payment of personal expenses.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Ricky and Katrina Lanier included the VA-Office of Inspector General (OIG), SBA- OIG; and Department of the Interior, OIG, with assistance from the U.S. Secret Service. Former Assistant U.S. Attorney Neil Smith and Assistant U.S. Attorney David L. Gunn represented the United States.
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National Community Policing Week EventsRead the Press Release
United States Attorney Emily Gray Rice announced that the United States Attorney’s Office for the District of New Hampshire will be participating in the Department of Justice’s recognition of National Community Policing Week, October 3-7, 2016.
“Supporting and promoting strong relationships between our communities and the law enforcement agencies that serve the public is one of our most important priorities. Community policing is a comprehensive philosophy which embodies the principle that trust and mutual respect between police and the communities that they serve, insures that police and community stakeholders are true partners in preventing and fighting crime,” stated United States Attorney Rice. “We are very proud to support the law enforcement agencies across our state who protect the public safety with unfailing dedication, and an unwavering commitment to excellence, and to recognize that these partnerships result in stronger and safer communities.”
The Office of the United States Attorney will be participating in several special events in connection with Community Policing Week in New Hampshire. On Tuesday, October 4, 2016, United States Attorney Rice will join Concord, New Hampshire Police Chief Osgood for “Coffee with a Cop” at 9 a.m. at the Newell Post, 125 Fisherville Road, Concord, New Hampshire. Then, on Wednesday, October 5, 2016 at 7 p.m., United States Attorney Rice will participate in a crime prevention meeting conducted by the Nashua Police Department at Temple Beth Abraham, 4 Raymond Street, Nashua, New Hampshire. Both events are open to the public.
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Mission Viejo Man Agrees to Plead Guilty to $2.3 Million Real Estate Investment Fraud SchemeRead the Press Release
LOS ANGELES – A Mission Viejo man has agreed to plead guilty to taking more than $2,300,000 from investors in a fraudulent real estate investment scheme in which he used investor funds to pay for personal expenses, including travel and cosmetic surgery, to make cash withdrawals, and to make Ponzi-style payments to other investors.
Francisco “Frank” Hobson, 39, was named in a criminal information last Friday charging him with wire fraud. A plea agreement in the case was also filed, and, in the plea agreement, Hobson has agreed to plead guilty to the information and pay at least $1,584,941 to the victims of his crime. Hobson is expected to appear to be arraigned on the charge in the information this afternoon.
The information charges Hobson, who was at the time a licensed real estate agent, in connection with his scheme of luring victims to give him money, between December 2010 and June 2016, with his promises that their investments would be used to purchase properties. In reality, the properties that Hobson advertised to his victims were not actually for sale or simply did not exist, and Hobson sent victims purported purchase agreements for the properties which were fraudulent or forged.
Hobson continued to engage in the scheme for months after being interviewed in November 2015 by the Federal Bureau of Investigation in connection with complaints from two of his victims.
“The defendant made simple promises to his victims, promises he never intended to fulfill,” said United States Attorney Eileen M. Decker. “The defendant then used his victims’ hard-earned money to fund his personal lifestyle. That he continued to do so after law enforcement had interviewed him was all the more egregious.”
As detailed in the plea agreement, Hobson would tell investors to transfer money to “escrow accounts,” which were, in reality, his own bank accounts that he alone controlled. After the investors’ money was deposited in his accounts, Hobson used the money for personal purchases at grocery stores, chain restaurants, and retail stores, as well as making cash withdrawals. Hobson also used their money to pay his landlord, and for travel, laser hair removal, and plastic surgery. Furthermore, Hobson paid approximately $757,031 of the $2,339,473 he collected in the scheme to his victims as Ponzi-style payments designed to conceal and extend the length of the scheme.
“The defendant targeted Hispanic individuals and presented himself as someone they could trust in a classic affinity scheme, only to spend their money to live lavishly,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Mr. Hobson’s chronic criminal behavior even after an investigation was underway is a reminder that caution should be exercised before handing over large sums of money, even when someone appears to be in a position of trust, or when someone with a similar background is offering an investment opportunity.”
Wire fraud carries a statutory maximum penalty of 20 years in federal prison. The case against Hobson was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Anil J. Antony of the Cyber and Intellectual Property Crimes Section.
Maryland Man Charged with Attempting to Provide Material Support to Isil for Plan to Kill U.S. Military MemberRead the Press Release
Greenbelt, Maryland – Nelash Mohamed Das, age 24, a citizen of Bangladesh residing in Landover Hills, Maryland, has been charged by federal criminal complaint with attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization, in connection with a plan to attack a U.S. military member. Das had an initial appearance at 2:00 p.m. today in U.S. District Court in Greenbelt, before U.S. Magistrate Judge Timothy J. Sullivan. Das was ordered to be detained pending a detention hearing, which is scheduled for Thursday, October 6, 2016, at 3:15 p.m. before Magistrate Judge Sullivan in U.S. District Court in Greenbelt. The complaint was filed on October 1, 2016.
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
“Our goal is to catch dangerous suspects before they strike, while respecting constitutional rights,” said U.S. Attorney Rod J. Rosenstein. “That is what the American people expect of the Justice Department, and that is what we aim to deliver.”
“The danger posed by Mr. Das during this investigation was very real. He was committed to carrying out an attack against a military member,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. “Through our proactive investigative stance, we were able to ensure the citizens of Maryland were protected. The covert nature of the defendant’s alleged actions is a stark reminder of the challenges we face in preventing attacks, and underscores the critical need for those with knowledge about terror plots to come forward.”
According to the affidavit filed in support of the criminal complaint, Das was admitted to the United States in 1995 and is a legal permanent resident.
The affidavit alleges that from September 28, 2015 to early 2016, Das used social media to express his support for ISIL, including support for terrorist attacks in Paris, France, and San Bernardino, California.
On October 26, 2015, Das tweeted the name of an individual and the city where they lived, stating that the individual “aspires to kill Muslims.” Das knew that the individual hoped to become a member of the U.S. military. ISIL members and supporters have posted identifying information about United States military personnel in hopes that those inspired by ISIL would carry out attacks against them. The affidavit alleges that Das was advertising the individual’s identity and whereabouts in order to inspire violence against that individual.
On January 30, 2016, Das tweeted a picture of an AK-47 assault rifle along with the text, “This is more than just a gun. This is a ticket to Jannah.” “Jannah” is a reference to the Islamic concept of paradise.
According to the affidavit, on April 30, 2016, Das attended the Handgun Qualification License class at a firing range in Prince George’s County, Maryland. After the class, Das told another individual that he wanted to buy a Glock 9mm handgun and an AK-47. Over the next five months, Das returned to the firing range to practice firing weapons, and submitted his fingerprints to obtain a handgun permit.
During May 2016, DAS met a confidential source working for the FBI. Das believed the source to be a like-minded supporter of ISIL. On May 24, 2016, Das told the source that he knew people overseas in Al Dawla (a common name for ISIL), and communicated with the Al Dawla members through online communications.
On July 23, 2016, Das told the source that he wanted to kill a particular military member who lived in Prince George’s County, Maryland, and whose identifying information Das had obtained the prior year from a list posted online by ISIL. Das stated that he could acquire a firearm from an individual he knows and stated his desire to travel overseas for ISIL if he had the opportunity. On July 30, 2016, Das advised the source that he could no longer find the ISIL list from the year before and asked the source if he had any ISIL contacts who could re-send the list.
According to the affidavit, on August 19, 2016, even though Das had stated that he could acquire a firearm, the confidential source told Das that he could acquire weapons for both of them. In subsequent meetings with the confidential source, Das continued to state that he was looking for names of targets for them to kill. In a meeting on September 11, 2016, Das confirmed that he was committed “100%” to conducting an attack and, “That’s like my goal in life.” In a meeting the following day Das stated that he wanted to get paid by ISIL for future killings, but would do it for free as well. Das further confirmed that he specifically wanted to target United States military personnel.
On September 28, 2016, Das and the source drove from Maryland to a firearms store in Virginia, where Das purchased one box (50 rounds) of 9mm ammunition and one box (50 rounds) of .40 caliber ammunition. At Das’ request, that same day, the confidential source provided Das with the identifying information of a target, who the source claimed was a member of the U.S. military. The confidential source told Das he received the information from an ISIL contact in Iraq. In reality, the source provided false information on behalf of the FBI. Based on discussions with the source, Das also believed that the ISIL contact in Iraq would facilitate the payment of approximately $80,000 in exchange for Das and the source conducting the attack. After purchasing the ammunition, Das and the source traveled from the Virginia firearms store to the Maryland address of the target in order to conduct surveillance.
The affidavit alleges that on September 30, 2016, while the confidential source was en route to pick up Das so they could conduct the attack, Das sent a text to the source that stated, “I’m ready.” When the confidential source arrived at the residence, Das loaded ammunition into the magazine of one of the two firearms previously acquired by the confidential source, with DAS’s knowledge and support. Das inserted the magazine into the firearm and loaded a bullet in the chamber. The firearms were then placed into the trunk of the vehicle. Although Das believed that the firearms could fire ammunition; in reality, they had been rendered inert by the FBI. Das and the source then traveled to the address of the target, where Das exited the vehicle and approached the trunk, where the firearms were located. When Das was standing next to the trunk, FBI agents approached and Das ran away. Das was taken into custody by FBI agents a short distance away from the vehicle.
Das faces a maximum sentence of 20 years in prison.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI’s Joint Terrorism Task Force for its work in the investigation Mr. Rosenstein thanked his office’s national security prosecutors that are handling the matter, and recognized the Justice Department’s National Security Division, Counterterrorism Section, for its support.
Maryland Man Charged with Attempting to Provide Material Support to ISIL for Plan to Kill U.S. Military MemberRead the Press Release
Nelash Mohamed Das, 24, a citizen of Bangladesh residing in Hyattsville, Maryland, has been charged by federal criminal complaint with attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, in connection with a plan to kill a U.S. military member.
The charges were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office. Das had an initial appearance at 2:00 p.m. today in U.S. District Court in Greenbelt before U.S. Magistrate Judge Timothy J. Sullivan. Das was ordered to be detained pending a detention hearing, which is scheduled for Thursday, Oct. 6, 2016, at 3:15p.m. before Magistrate Judge Sullivan in U.S. District Court in Greenbelt. The complaint was filed on Oct. 1, 2016.
“Nelash Mohamed Das is alleged to have plotted to kill a U.S. service member on behalf of ISIL,” said Assistant Attorney General Carlin. “Individuals intent on carrying out violence in the name of foreign terrorist organizations pose one of the most concerning threats that law enforcement faces today and stopping these offenders before they are able to act is our highest priority.”
“Our goal is to catch dangerous suspects before they strike, while respecting constitutional rights,” said U.S. Attorney Rod J. Rosenstein for the District of Maryland. “That is what the American people expect of the Justice Department, and that is what we aim to deliver.”
“The danger posed by Mr. Das during this investigation was very real. He was committed to carrying out an attack against a military member,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. “Through our proactive investigative stance, we were able to ensure the citizens of Maryland were protected. The covert nature of the defendant’s alleged actions is a stark reminder of the challenges we face in preventing attacks, and underscores the critical need for those with knowledge about terror plots to come forward.”
According to the affidavit filed in support of the criminal complaint, Das was admitted to the U.S. in 1995 and is a legal permanent resident.
The affidavit alleges that from Sept. 28, 2015 to early 2016, Das used social media to express his support for ISIL, including support for terrorist attacks in Paris, France, and San Bernardino, California.
On Oct. 26, 2015, Das tweeted the name of an individual and the city where they lived, stating that the individual “aspires to kill Muslims.” Das knew that the individual hoped to become a member of the U.S. military. ISIL members and supporters have posted identifying information about U.S. military personnel in hopes that those inspired by ISIL would carry out attacks against them. The affidavit alleges that Das was advertising the individual’s identity and whereabouts in order to inspire violence against that individual.
On Jan. 30, 2016, Das tweeted a picture of an AK-47 assault rifle along with the text, “This is more than just a gun. This is a ticket to Jannah.” “Jannah” is a reference to the Islamic concept of paradise.
According to the affidavit, on April 30, 2016, Das attended the Handgun Qualification License class at a firing range in Prince George’s County, Maryland. After the class, Das told another individual that he wanted to buy a Glock 9mm handgun and an AK-47. Over the next five months, Das returned to the firing range to practice firing weapons, and submitted his fingerprints to obtain a handgun permit.
During May 2016, Das met a confidential human source (CHS) working for the FBI. Das believed the CHS to be a like-minded supporter of ISIL. On May 24, 2016, Das told the CHS that he knew people overseas in Al Dawla (a common name for ISIL) and communicated with them through online communications.
On July 23, 2016, Das told the CHS that he wanted to kill a particular military member who lived in Prince George’s County, Maryland, and whose identifying information Das had obtained the prior year from a list posted online by ISIL. Das stated that he could acquire a firearm from an individual he knows and stated his desire to travel overseas for ISIL if he had the opportunity. On July 30, 2016, Das advised the CHS that he could no longer find the ISIL list from the year before and asked the CHS if he had any ISIL contacts who could re-send the list.
According to the affidavit, on Aug. 19, 2016, even though Das had stated that he could acquire a firearm, the CHS told Das that he could acquire weapons for both of them. In subsequent meetings with the CHS, Das continued to state that he was looking for names of targets for them to kill. In a meeting on Sept. 11, 2016, Das confirmed that he was committed “100%” to conducting an attack and, “That’s like my goal in life.” In a meeting the following day, Das stated that he wanted to get paid by ISIL for future killings, but would do it for free as well. Das further confirmed that he specifically wanted to target U.S. military personnel.
On Sept. 28, 2016, Das and the CHS drove from Maryland to a firearms store in Virginia, where Das purchased one box (50 rounds) of 9mm ammunition and one box (50 rounds) of .40 caliber ammunition. At Das’ request, that same day, the CHS provided Das with the identifying information of a target, who the CHS claimed was a member of the U.S. military. The CHS told Das he received the information from an ISIL contact in Iraq. In reality, the CHS provided false information on behalf of the FBI. Based on discussions with the CHS, Das also believed that the ISIL contact in Iraq would facilitate the payment of approximately $80,000 in exchange for Das and the CHS conducting the attack. After purchasing the ammunition, Das and the CHS traveled from the Virginia firearms store to the Maryland address of the target in order to conduct surveillance.
The affidavit alleges that on Sept. 30, 2016, while the CHS was en route to pick up Das so they could conduct the attack, Das sent a text to the CHS that stated, “I’m ready.” When the CHS arrived at the residence, Das loaded ammunition into the magazine of one of the two firearms previously acquired by the CHS, with Das’ knowledge and support. Das inserted the magazine into the firearm and loaded a bullet in the chamber. The firearms were then placed into the trunk of the vehicle. Although Das believed that the firearms could fire ammunition, in reality, they had been rendered inert by the FBI. Das and the CHS then traveled to the address of the target, where Das exited the vehicle and approached the trunk, where the firearms were located. When Das was standing next to the trunk, FBI agents approached and Das attempted to run away. Das was taken into custody by FBI agents a short distance from the vehicle.
Das faces a maximum sentence of 20 years in prison.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
U.S. Attorney Rosenstein and Assistant Attorney General Carlin thanked the FBI for its work in the investigation.
MS-13 Member Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A member of MS-13 pleaded guilty on Friday, Sept. 30, 2016, in connection with the stabbing of a rival gang member in Chelsea in December 2015.
Mauricio Sanchez, also known as “Tigre,” 29, of Chelsea, pleaded guilty in U.S. District Court in Boston to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as racketeering conspiracy. U.S. District Court Judge Dennis Saylor IV scheduled sentencing for Dec. 22, 2016.
After a three-year investigation, Sanchez was one of 61 persons named in a January 2016 superseding indictment targeting the criminal activities of alleged leaders, members, and associates of Mara Salvatrucha (MS-13) in Massachusetts. As alleged in court documents, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including in the District of Massachusetts. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder gang rivals whenever possible.
In court filings and at Friday’s plea hearing, Sanchez was identified as a member of MS-13’s Eastside Loco Salvatrucha (ESLS) clique. As an ESLS member, Sanchez “jumped in” new members and paid dues to fund MS-13 activities in Massachusetts and in El Salvador. As part of his plea agreement, Sanchez admitted that he and other MS-13 members stabbed a gang rival, believed to be a member of 18th Street, near Bellingham Square in Chelsea on Dec. 27, 2015.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Sanchez is the sixth defendant to plead guilty. Other defendants pleaded guilty to drug trafficking and immigration offenses.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Sheriff Frank Cousins of the Essex County Sheriff’s Department; Sheriff Steven W. Thompkins of the Suffolk County Sheriff’s Department; Daniel F. Conley, Suffolk County District Attorney; Marian T. Ryan, Middlesex County District Attorney; Jonathan Blodgett, Essex County District Attorney; Boston Police Commissioner William Evans; Chief Brian A. Kyes of the Chelsea Police Department; Chief Steven A. Mazzie of the Everett Police Department; Chief Kevin Coppinger of the Lynn Police Department; Chief Joseph Cafarelli of the Revere Police Department; and Chief David Fallon of the Somerville Police Department, made the announcement today.
Jacksonville Man Federally Charged for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Richard Daniel Lord (57, Jacksonville) has been arrested and charged in a federal criminal complaint with receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a potential life term of supervision. His detention hearing is scheduled for October 5, 2016, at 3:30 p.m., in Jacksonville.
According to the complaint, on September 30, 2016, FBI agents executed a federal search warrant at Lord’s residence in Jacksonville. During an interview with agents, he admitted that he had used his cellphones to search for, download, and view child pornography. He stated that he was most interested in images and videos of children who were between 10 and 12 years of age, that he searched for child pornography “constantly,” and that he was unable to control himself. A forensic examination of one of Lord’s cellphones revealed a video that had been downloaded by Lord on September 16, 2016, depicting a child being sexually abused.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Identity Thief Who Used Citizen’s Identity to Try to Obtain Passport ConvictedRead the Press Release
HOUSTON – A 37-year-old undocumented immigrant who had been using the identity of a United States citizen for almost a decade has been convicted, announced U.S Attorney Kenneth Magidson. Martina Azucena Melendrez Acevez was caught when she attempted to use the other woman’s identity to obtain a passport. Today, she pleaded guilty to making false claims to U.S. citizenship and making false statements in a passport application.
Since 2004, Acevez had been using the Social Security card and birth certificate of a 29-year-old Nebraska woman who was born in Houston to obtain driver’s licenses, identification cards and employment in the United States.
In late 2014, Aceves applied for a passport with the Department of State using the victim’s identity. Authorities discovered her true identity by comparing her fingerprints to those provided when obtaining driver’s licenses and identification cards in her real name prior to 2004. In addition, the photographs on her passport application as well as the driver’s licenses and identification cards in her real name and in the name of the victim all matched.
Authorities tracked down the mother, father, two siblings, two children and common-law husband of the victim who all confirmed Aceves was an imposter. In fact, Aceves provided the victim’s mother’s information in her passport application.
In connection with that passport application, Aceves submitted documents which she claimed established that she attended Sutton Elementary in the Houston Independent School District (HISD) under the name of the victim. However, HISD had no record of either the victim or Aceves ever attending and the photographic records of Sutton Elementary School contained no record of Aceves or the victim.
Furthermore, Customs and Border Protection had a record of the victim returning to the United States after spending time abroad. Those records further established that Aceves was an imposter.
The victim in the case has three children residing in Mexico and has been attempting to obtain a passport herself in order to bring her children to the United States. Due to the actions of Aceves, this process has been stalled and the victim has not seen her children for more than two years.
U.S. District Judge Lynn Hughes accepted the plea today and has set sentencing for Nov, 28, 2016. At that time, Aceves faces up to 10 years in federal prison. She will remain in custody pending that hearing.
The Department of State Diplomatic - Security Service conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.
Hospital Chain Will Pay over $513 Million for Defrauding the United States and Making Illegal Payments in Exchange for Patient Referrals; Two Subsidiaries Agree to Plead GuiltyRead the Press Release
A major U.S. hospital chain, Tenet Healthcare Corporation, and two of its Atlanta-area subsidiaries will pay over $513 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States and to pay kickbacks in exchange for patient referrals.
Principal Deputy Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division; U.S. Attorney John Horn of the Northern District of Georgia; Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division; U.S. Attorney G.F. Peterman III of the Middle District of Georgia; Georgia Attorney General Samuel S. Olens; Acting Special Agent in Charge George Crouch of the FBI’s Atlanta Field Office; and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) in Atlanta made the announcement.
In addition, two Tenet subsidiaries, Atlanta Medical Center Inc. and North Fulton Medical Center Inc., have agreed to plead guilty to conspiracy to defraud the United States and to pay health care kickbacks and bribes in violation of the Anti-Kickback Statute (AKS). The plea agreements remain subject to acceptance by the court. Up until April 2016, Atlanta Medical Center Inc. and North Fulton Medical Center Inc. owned and operated acute-care hospitals located in the greater Atlanta metropolitan area.
Atlanta Medical Center Inc. and North Fulton Medical Center Inc. were charged in a criminal information filed today in federal court in Atlanta with conspiracy to defraud the United States by obstructing the lawful government functions of HHS and to violate the AKS, which, among other things, prohibits payments to induce the referral of patients for services paid for by federal health care programs. The two Tenet subsidiaries have agreed to plead guilty to the charges alleged in the criminal information and will forfeit over $145 million to the United States – which represents the amount paid to Atlanta Medical Center Inc. and North Fulton Medical Center Inc. by the Medicare and Georgia Medicaid programs for services provided to patients referred as part of the scheme.
Tenet HealthSystem Medical Inc. and its subsidiaries (collectively THSM) entered into a non-prosecution agreement (NPA) with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Georgia related to the charges in the criminal information. THSM is the parent company of Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital, and employed their executives. THSM is a subsidiary of Tenet Healthcare Corporation. Under the terms of the NPA, THSM and Tenet will avoid prosecution if they, among other requirements, cooperate with the government’s ongoing investigation and enhance their compliance and ethics program and internal controls. Tenet has also agreed to retain an independent compliance monitor to address and reduce the risk of any recurrence of violations of the AKS by any entity owned in whole, or in part, by Tenet. The term of THSM’s and Tenet’s obligations under the NPA is three years, but the NPA may be extended for up to one year.
In the civil settlement, Tenet agreed to pay $368 million to the federal government, the state of Georgia and the state of South Carolina to resolve claims asserted in United States ex rel. Williams v. Health Mgmt. Assocs., Tenet Healthcare, et al., a lawsuit filed by Ralph D. Williams, a Georgia resident, in the Middle District of Georgia, under the federal and Georgia False Claims Acts. The acts permit whistleblowers to file suit for false claims against the government entities and to share in any recovery. The federal share of the civil settlement is $244,227,535.30, the state of Georgia will recover $122,880,339.70 and the state of South Carolina will recover $892,125. Mr. Williams’ share of the combined civil settlement amount is approximately $84.43 million.
“When pregnant women seek medical advice, they deserve to receive care untainted by bribes and illegal kickbacks,” said Principal Deputy Assistant Attorney General Bitkower. “The Tenet case is the first brought through the assistance of the Criminal Division’s corporate health care fraud strike force. This is one of more than a dozen active corporate investigations by the strike force, and we are committed to following evidence of health care fraud wherever it leads – whether it be individual physicians, pharmacy owners or corporate boardrooms.”
“Our Medicaid system is premised on a patient’s ability to make an informed choice about where to seek care without undue interference from those seeking to make a profit,” said U.S. Attorney Horn. “Tenet cheated the Medicaid system by paying bribes and kickbacks to a pre-natal clinic to unlawfully refer over 20,000 Medicaid patients to the hospitals. In so doing, they exploited some of the most vulnerable members of our community and took advantage of a payment system designed to ensure that underprivileged patients have choices in receiving care.”
“The Department of Justice continues to devote enormous resources to exposing and pursuing alleged misconduct of improper financial relationships between hospitals and referral sources,” said Principal Deputy Assistant Attorney General Mizer. “Such relationships exploit vulnerable populations and threaten to drive up the cost of healthcare for everyone. In addition to yielding a substantial recovery for taxpayers, this settlement reflects the department’s lack of tolerance for these types of abusive arrangements, and the negative effects they can have on our health care system.”
“The global resolution of this complex and sophisticated fraud scheme exemplifies what can be accomplished through the cooperation of federal and state investigative and prosecutorial authorities,” said U.S. Attorney Peterman. “I am particularly proud of the civil attorneys in the U.S. Attorney’s Office for the Middle District of Georgia, working hand in hand with investigators of the U.S. Department of Health and Human Services and attorneys in the Civil Division and the Medicaid Fraud Control Unit of the Office of the Attorney General of Georgia, whose combined efforts greatly contributed to this outstanding result on behalf of the American taxpayers.”
“Tenet took advantage of vulnerable pregnant women in clear violation of the law by paying kickbacks in order to bring their referrals to Tenet hospitals,” said Georgia Attorney General Olens. “Through this scheme, Tenet defrauded the Georgia Medicaid program, and reaped hundreds of millions of dollars. This is an unprecedented settlement for the state of Georgia, and reflects my office’s commitment to protecting Georgia taxpayers by uncovering Medicaid fraud and abuse.”
“The FBI continues to play a significant role in ensuring that federal laws related to the healthcare industry, to include the federally funded Medicare and Medicaid programs, are enforced,” said Acting Special Agent in Charge Crouch. “The settlement agreements announced today involving Tenet Healthcare Corporation, as well as related guilty pleas by two of its Atlanta-based hospitals, Atlanta Medical Center Inc., and North Fulton Medical Center Inc., are a clear example of those efforts. In addition, the FBI’s Major Provider Response Team (MPRT) assisted the Atlanta Field Office in the civil and criminal investigation of Tenet. The MPRT was created in 2011 in response to numerous healthcare related corporate-level schemes resulting in billions in losses to healthcare plans. The FBI, along with its MPRT, will continue to aggressively address the threat of large-scale corporate healthcare schemes significantly impacting both private and government healthcare benefit plans.”
“OIG continues to emphasize investigation of improper financial relationships between health care providers,” said Special Agent in Charge Jackson. “Using their positions of trust, health providers – after receiving payments from Tenet – sent expectant women specifically to Tenet hospitals. Patients were often directed to Tenet facilities miles and miles from their homes and on their journeys passed other hospitals that could have provided needed care. These women were thereby placed at increased risk during one of the most vulnerable points in their lives. HHS-OIG will continue to protect patients by exposing such illegal arrangements.”
As alleged in the criminal information as well as civil complaints filed by the department and the state of Georgia in 2014 and 2013, Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital paid bribes and kickbacks to the owners and operators of prenatal care clinics serving primarily undocumented Hispanic women in return for the referral of those patients for labor and delivery medical services at Tenet hospitals. These kickbacks and bribes allegedly helped Tenet obtain more than $145 million in Medicaid and Medicare funds based on the resulting patient referrals.
According to the criminal information, as part of the scheme, expectant mothers were in some cases told at the prenatal care clinics that Medicaid would cover the costs associated with their childbirth and the care of their newborn only if they delivered at one of the Tenet hospitals, and in other cases were simply told that they were required to deliver at one of the Tenet hospitals, leaving them with the false belief that they could not select the hospital of their choice. The criminal information alleges that as a result of these false and misleading statements and representations, many expectant mothers traveled long distances from their homes to deliver at the Tenet hospitals, placing their health and safety, and that of their newborn babies, at risk.
The criminal information also charges Atlanta Medical Center Inc. and North Fulton Medical Center Inc. with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA). The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA. The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.
* * *
Deputy Chief Joseph S. Beemsterboer, Assistant Chief Robert A. Zink and Trial Attorneys Sally B. Molloy, Antonio M. Pozos and A. Brendan Stewart of the Criminal Division’s Fraud Section and Chief Randy S. Chartash and Deputy Chief Stephen McClain of the Northern District of Georgia’s Economic Crime Section represented the government in the criminal prosecution. The U.S. Attorney’s Office of the Middle District of Georgia and the Civil Division’s Commercial Litigation Branch represented the federal government in the civil case. The HHS Office of Counsel to the Inspector General, the FBI and the Georgia and South Carolina Medicaid Fraud Control Units provided assistance in this matter.
The FBI’s Atlanta Field Office, HHS-OIG and the FBI Healthcare Fraud Unit MPRT investigated the case.
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 HHS. 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 $30.9 billion through False Claims Act cases, with more than $18.6 billion of that amount recovered in cases involving fraud against federal health care programs.
If you believe you are a victim of this offense, please visit this website or call (888) 549-3945.
Hospital Chain Will Pay over $513 Million for Defrauding the United States and Making Illegal Payments in Exchange for Patient Referrals; Two Subsidiaries Agree to Plead GuiltyRead the Press Release
WASHINGTON – A major U.S. hospital chain, Tenet Healthcare Corporation, and two of its Atlanta-area subsidiaries will pay over $513 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States and to pay kickbacks in exchange for patient referrals.
Principal Deputy Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division; U.S. Attorney John Horn of the Northern District of Georgia; Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division; U.S. Attorney G.F. Peterman III of the Middle District of Georgia; Georgia Attorney General Samuel S. Olens; Acting Special Agent in Charge George Crouch of the FBI’s Atlanta Field Office; and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) in Atlanta made the announcement.
In addition, two Tenet subsidiaries, Atlanta Medical Center Inc. and North Fulton Medical Center Inc., have agreed to plead guilty to conspiracy to defraud the United States and to pay health care kickbacks and bribes in violation of the Anti-Kickback Statute (AKS). The plea agreements remain subject to acceptance by the court. Up until April 2016, Atlanta Medical Center Inc. and North Fulton Medical Center Inc. owned and operated acute-care hospitals located in the greater Atlanta metropolitan area.
Atlanta Medical Center Inc. and North Fulton Medical Center Inc. were charged in a criminal information filed today in federal court in Atlanta with conspiracy to defraud the United States by obstructing the lawful government functions of HHS and to violate the AKS, which, among other things, prohibits payments to induce the referral of patients for services paid for by federal health care programs. The two Tenet subsidiaries have agreed to plead guilty to the charges alleged in the criminal information and will forfeit over $145 million to the United States – which represents the amount paid to Atlanta Medical Center Inc. and North Fulton Medical Center Inc. by the Medicare and Georgia Medicaid programs for services provided to patients referred as part of the scheme.
Tenet HealthSystem Medical Inc. and its subsidiaries (collectively THSM) entered into a non-prosecution agreement (NPA) with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Georgia related to the charges in the criminal information. THSM is the parent company of Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital, and employed their executives. THSM is a subsidiary of Tenet Healthcare Corporation. Under the terms of the NPA, THSM and Tenet will avoid prosecution if they, among other requirements, cooperate with the government’s ongoing investigation and enhance their compliance and ethics program and internal controls. Tenet has also agreed to retain an independent compliance monitor to address and reduce the risk of any recurrence of violations of the AKS by any entity owned in whole, or in part, by Tenet. The term of THSM’s and Tenet’s obligations under the NPA is three years, but the NPA may be extended for up to one year.
In the civil settlement, Tenet agreed to pay $368 million to the federal government, the state of Georgia and the state of South Carolina to resolve claims asserted in United States ex rel. Williams v. Health Mgmt. Assocs., Tenet Healthcare, et al., a lawsuit filed by Ralph D. Williams, a Georgia resident, in the Middle District of Georgia, under the federal and Georgia False Claims Acts. The acts permit whistleblowers to file suit for false claims against the government entities and to share in any recovery. The federal share of the civil settlement is $244,227,535.30, the state of Georgia will recover $122,880,339.70, and the state of South Carolina will recover $892,125. Mr. Williams’ share of the combined civil settlement amount is approximately $84.43 million.
“When pregnant women seek medical advice, they deserve to receive care untainted by bribes and illegal kickbacks,” said Principal Deputy Assistant Attorney General Bitkower. “The Tenet case is the first brought through the assistance of the Criminal Division’s corporate health care fraud strike force. This is one of more than a dozen active corporate investigations by the strike force, and we are committed to following evidence of health care fraud wherever it leads – whether it be individual physicians, pharmacy owners or corporate boardrooms.”
“Our Medicaid system is premised on a patient’s ability to make an informed choice about where to seek care without undue interference from those seeking to make a profit,” said U.S. Attorney Horn. “Tenet cheated the Medicaid system by paying bribes and kickbacks to a pre-natal clinic to unlawfully refer over 20,000 Medicaid patients to the hospitals. In so doing, they exploited some of the most vulnerable members of our community and took advantage of a payment system designed to ensure that underprivileged patients have choices in receiving care.”
“The Department of Justice continues to devote enormous resources to exposing and pursuing alleged misconduct of improper financial relationships between hospitals and referral sources,” said Principal Deputy Assistant Attorney General Mizer. “Such relationships exploit vulnerable populations and threaten to drive up the cost of healthcare for everyone. In addition to yielding a substantial recovery for taxpayers, this settlement reflects the department’s lack of tolerance for these types of abusive arrangements, and the negative effects they can have on our health care system.”
“The global resolution of this complex and sophisticated fraud scheme exemplifies what can be accomplished through the cooperation of federal and state investigative and prosecutorial authorities,” said U.S. Attorney Peterman. “I am particularly proud of the civil attorneys in the U.S. Attorney’s Office for the Middle District of Georgia, working hand in hand with investigators of the U.S. Department of Health and Human Services and attorneys in the Civil Division and the Medicaid Fraud Control Unit of the Office of the Attorney General of Georgia, whose combined efforts greatly contributed to this outstanding result on behalf of the American taxpayers.”
“Tenet took advantage of vulnerable pregnant women in clear violation of the law by paying kickbacks in order to bring their referrals to Tenet hospitals,” said Georgia Attorney General Olens. “Through this scheme, Tenet defrauded the Georgia Medicaid program, and reaped hundreds of millions of dollars. This is an unprecedented settlement for the state of Georgia, and reflects my office’s commitment to protecting Georgia taxpayers by uncovering Medicaid fraud and abuse.”
“The FBI continues to play a significant role in ensuring that federal laws related to the healthcare industry, to include the federally funded Medicare and Medicaid programs, are enforced,” said Acting Special Agent in Charge Crouch. “The settlement agreements announced today involving Tenet Healthcare Corporation, as well as related guilty pleas by two of its Atlanta-based hospitals, Atlanta Medical Center Inc., and North Fulton Medical Center Inc., are a clear example of those efforts. In addition, the FBI’s Major Provider Response Team (MPRT) assisted the Atlanta Field Office in the civil and criminal investigation of Tenet. The MPRT was created in 2011 in response to numerous healthcare related corporate-level schemes resulting in billions in losses to healthcare plans. The FBI, along with its MPRT, will continue to aggressively address the threat of large-scale corporate healthcare schemes significantly impacting both private and government healthcare benefit plans.”
“OIG continues to emphasize investigation of improper financial relationships between health care providers,” said Special Agent in Charge Jackson. “Using their positions of trust, health providers – after receiving payments from Tenet – sent expectant women specifically to Tenet hospitals. Patients were often directed to Tenet facilities miles and miles from their homes and on their journeys passed other hospitals that could have provided needed care. These women were thereby placed at increased risk during one of the most vulnerable points in their lives. HHS-OIG will continue to protect patients by exposing such illegal arrangements.”
As alleged in the criminal information as well as civil complaints filed by the department and the state of Georgia in 2014 and 2013, Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital paid bribes and kickbacks to the owners and operators of prenatal care clinics serving primarily undocumented Hispanic women in return for the referral of those patients for labor and delivery medical services at Tenet hospitals. These kickbacks and bribes allegedly helped Tenet obtain more than $145 million in Medicaid and Medicare funds based on the resulting patient referrals.
According to the criminal information, as part of the scheme, expectant mothers were in some cases told at the prenatal care clinics that Medicaid would cover the costs associated with their childbirth and the care of their newborn only if they delivered at one of the Tenet hospitals, and in other cases were simply told that they were required to deliver at one of the Tenet hospitals, leaving them with the false belief that they could not select the hospital of their choice. The criminal information alleges that as a result of these false and misleading statements and representations, many expectant mothers traveled long distances from their homes to deliver at the Tenet hospitals, placing their health and safety, and that of their newborn babies, at risk.
The criminal information also charges Atlanta Medical Center Inc. and North Fulton Medical Center Inc. with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA). The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA. The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.
Deputy Chief Joseph S. Beemsterboer, Assistant Chief Robert A. Zink and Trial Attorneys Sally B. Molloy, Antonio M. Pozos and A. Brendan Stewart of the Criminal Division’s Fraud Section and Chief Randy S. Chartash and Deputy Chief Stephen McClain of the Northern District of Georgia’s Economic Crime Section represented the government in the criminal prosecution. The U.S. Attorney’s Office of the Middle District of Georgia and the Civil Division’s Commercial Litigation Branch represented the federal government in the civil case. The HHS Office of Counsel to the Inspector General, the FBI and the Georgia and South Carolina Medicaid Fraud Control Units provided assistance in this matter.
The FBI’s Atlanta Field Office, HHS-OIG and the FBI Healthcare Fraud Unit MPRT investigated the case.
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 HHS. 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 $30.9 billion through False Claims Act cases, with more than $18.6 billion of that amount recovered in cases involving fraud against federal health care programs.
If you believe you are a victim of this offense, please visit this website or call (888) 549-3945.
Harrison County man pleads guilty to unlawful purchase of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Plaugher, 26, of Clarksburg, West Virginia pled guilty to providing a false statement while attempting to purchase a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Plaugher pled guilty to one count of “False Statement During the Purchase of a Firearm.” He admitted to falsely representing that he was the actual buyer of a .40 caliber pistol when he was actually attempting to purchase the firearm on behalf of another buyer.
He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan Charged with Re-Entry After Previous DeportationRead the Press Release
BINGHAMTON, NEW YORK – Edison Lopez-Raymundo, 26, a citizen of Guatemala, made his initial appearance before a United States Magistrate Judge today in Syracuse, New York. He is charged by a criminal compliant with Re-Entry of a Removed Alien, pursuant to Title 8 U.S.C. § 1326(a), announced United States Attorney Richard S. Hartunian.
According to the criminal complaint, Edison Lopez-Raymundo was found on September 7, 2016 in Cortland, New York, after he was previously removed from the United States and having returned without the consent of the Secretary of Homeland Security to apply for readmission. If convicted, he faces a maximum of 2 year’s imprisonment, 1 year of supervised release, a $250,000 fine, and deportation to Guatemala. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by Department of Homeland Security, Immigration & Customs Enforcement, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Green Bay Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, announced that Moises Alcazar (age: 34) of Green Bay has plead guilty to assisting and advising in the preparation and filing of a false income tax returns in violation of 26 United States Code Section 7206(2). Alcazar faces a maximum term of imprisonment of three years, a maximum term of supervised release of one year, a maximum fine of $100,000, and restitution to be ordered by the court.
Alcazar ran Alcazar Tax Services from 2006 to 2012 and acknowledged as part of a plea agreement that he had perpetrated a pair of related tax fraud schemes that caused a total loss to the government of over $766,000. In the first scheme, Alcazar would assist clients in artificially and illegally inflating their tax refunds. In the second scheme, Alcazar used documents supplied by foreign co-conspirators to file fabricated tax returns.
The case was investigated by the Internal Revenue Service Criminal Investigation and prosecuted by Assistant United States Attorneys Richard Frohling and Benjamin Taibleson.
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Georgia Woman Sentenced to over 3.5 Years in Prison for Laundering and Structuring more than $200,000 for California Drug Trafficking OrganizationRead the Press Release
FRESNO, Calif. — Ashley Starling Thomas, 29, of Atlanta, Georgia, was sentenced today to three and a half years in prison by U.S. District Judge Lawrence J. O’Neill after being convicted by a jury in May 2016 of conspiring to launder money, conspiring to structure cash transactions, five counts of money laundering, and four counts of structuring cash transactions, Acting United States Attorney Phillip A. Talbert announced.
According to the evidence presented at trial, Thomas moved more than $200,000 in drug money through her bank accounts in a 22-day period in the summer of 2013. Thomas, who resided in Houston, Texas at the time, flew to Northern California on airline tickets paid for by a drug trafficking organization and made cash withdrawals of drug money from her bank accounts at dozens of bank branches in Sacramento, Eureka, and San Francisco. Thomas also traveled to Fresno where the drug trafficking organization was located. All of the cash withdrawals made by Thomas were in amounts less than $10,000 for the purpose of preventing her banks from filing Currency Transaction Reports on her cash withdrawals.
“Ashley Thomas participated in a drug conspiracy by funneling illegal drug proceeds through the financial banking system,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Cash deposits were made from Florida into Thomas’ personal bank account and she would then travel to California to make the cash withdrawals. The cash withdrawals represented profits earned by the drug organization. IRS-CI is committed to stopping funnel account activity and other methods of money laundering being used by drug trafficking organizations.”
Thomas was remanded into custody following her trial in May 2016 and was ordered to remain in custody to serve her sentence.
Co-defendants Chad Riffle, Peter Capodieci, Jeremy Murphy, and Aseel Al-Saber have been sentenced and are currently serving their prison terms. Co-defendants Miguel Gonzalez, Brandon Thomas, and Bree Ann Benson have pleaded guilty to conspiring to structure cash transactions and are awaiting sentencing.
This case was brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service-Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case was also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations in the U.S. by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorneys Grant B. Rabenn and Vincente A. Tennerelli are prosecuting the case.
Former medical practice manager sentenced for obtaining prescription opioids by fraudRead the Press Release
CHARLESTON, W.Va. – A Nicholas County woman who issued herself prescriptions without authorization from a doctor was sentenced today after being convicted of obtaining the prescription opioid pain medication tramadol by fraud, announced United States Attorney Carol Casto. Cary Lynn Eades, 47, of Mount Nebo, was sentenced to three years of probation.
On numerous occasions between January 2012 and March 2015, Eades took advantage of her position as a medical practice manager to issue herself prescriptions for tramadol using the names and DEA registration numbers of doctors for whom she worked. Eades filled prescriptions at pharmacies in Nicholas, Fayette, and Kanawha counties. The Central West Virginia Drug Task Force became involved in February 2015 when one of the medical practices reported suspicious prescriptions being issued to Eades.
Eades was indicted in Fayette and Nicholas counties in 2015 on more than 30 felony counts of obtaining a prescription by fraud. Her guilty plea in federal court reflects a consolidation of those charges as well as potential charges in Kanawha County.
This case was investigated by the Central West Virginia Drug Task Force. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Former Stanislaus County Resident Pleads Guilty to Obstructing Tax LawsRead the Press Release
FRESNO, Calif. — Frank A. Bilan, 68, formerly of Newman, pleaded guilty today to one count of corrupt endeavor to obstruct and impede the administration of the internal revenue laws, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Bilan earned income as a salaried engineer and through his engineering consulting business. Between 2005 and 2009, Bilan received over $900,000 in income from his employment, consulting business, and withdrawals from his retirement accounts. Bilan, however, did not timely file true and accurate tax returns for tax years 2001 through 2009. When the IRS sent correspondence to Bilan regarding past due taxes, Bilan responded by, among other things, attempting to file false purported income tax returns that did not report any of his gross income for 2001 through 2005, and filing a fictitious form that purported to discharge monies owed by him to the IRS.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
“Mr. Bilan intentionally failed to file tax returns with over $900,000 of income,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Once the IRS notified him, he sent in erroneous and fictitious forms in his continued attempt to avoid paying his fair share. These kinds of cases are at the core CI’s mission and we will continue to pursue those who undermine the integrity of the U.S. tax system.”
Bilan is scheduled to be sentenced on March 6, 2017, by U.S. District Judge Lawrence J. O’Neill. Bilan faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Fairfield PD Custodian Pleads Guilty as Felon in Possession of FirearmsRead the Press Release
BIRMINGHAM – A former Fairfield Police Department custodian pleaded guilty today to being a felon in possession of firearms, which he stole from the police department’s evidence room and was selling from his home, announced U.S. Attorney Joyce White Vance and Alcohol, Tobacco, Firearms and Explosives Assistant Special Agent in Charge David Hyche.
ROY ELLIS HUNTER, 70, entered his guilty plea before U.S. District Judge Madeline Hughes Haikala to one count of a July indictment that charged him with being a convicted felon in possession of four handguns on June 4, 2015. As part of his plea, Hunter agrees to forfeit 50 firearms, acknowledging they were connected to his crime. Hunter is scheduled for sentencing March 7.
“Roy Hunter is no longer stealing and selling guns,” Vance said. “ATF and the Alabama Law Enforcement Agency shut down his conversion of evidence in a police locker into inventory for his illegal home-based gun store. Their fine work and this prosecution help make our communities safer.”
“The collaborative efforts of ATF, the U.S. Attorney’s Office and our law enforcement partners prevented the potential for firearms to illegally enter into commerce,” Hyche said. “Reducing the flow of illegal firearms into our communities aids in providing a safe environment for the public.”
According to the indictment and Hunter’s plea agreement, Hunter was convicted on federal racketeering and cocaine distribution charges in 1984 and on federal counterfeiting charges in 1983.
On June 4, 2015, Hunter sold four handguns, a Cobra .380-caliber pistol, an FIE .32-caliber revolver, an Iberia .40-caliber pistol and a Norinco 9 mm pistol, for $800 to an informant working undercover with ATF agents, according to the plea agreement. The transaction took place at Hunter’s Fairfield home and was monitored and recorded. In the course of that sale, Hunter and the informant planned a future purchase.
On July 8, in another monitored transaction at Hunter’s residence, the informant paid Hunter $4,000 to buy 15 firearms, which he selected from 30 that Hunter retrieved from his basement, according to the plea agreement. One of the guns was in a clear plastic bag that was marked “Evidence.” Agents arrested Hunter the next day and recovered 31 firearms, ammunition, narcotics and a decorative sword “that were all presumed to be stolen from the Fairfield Police Department,” according to the plea agreement.
The maximum penalty for the charge of felon in possession of a firearm is 10 years in prison and a $250,000 fine. ATF, with assistance from ALEA, investigated the case, which Assistant U.S. Attorney Michael A. Royster is prosecuting.
Former Bakersfield Police Department Detective Sentenced to 5 Years in Prison for Bribery, Drug Trafficking, and Filing a False Tax ReturnRead the Press Release
FRESNO, Calif. — Damacio Diaz, 44, of McFarland, formerly a detective with the Bakersfield Police Department, was sentenced today to five years in prison for bribery, possession and attempted possession with the intent to distribute methamphetamine, and making and subscribing a false income tax return, Acting United States Attorney Phillip A. Talbert announced.
U.S. District Judge Lawrence J. O’Neill ordered Diaz to begin serving his sentence on December 5, 2016. Diaz pleaded guilty to the charges on May 31, 2016. Diaz’s former partner, Patrick Mara, 36, of Bakersfield pleaded guilty to related charges on June 20, 2016, and is scheduled to be sentenced on October 17, 2016.
According to court documents, between April 2012 and February 2015, while employed as a police officer with the Bakersfield Police Department (BPD), Diaz handled a criminal informant who was involved in the large-scale sale and distribution of methamphetamine. Diaz continued to operate the informant even though he was fully aware of the informant’s ongoing criminal activity. During this time, Diaz received bribes from the informant in return for intelligence on law enforcement activities as well as protection from investigation and arrest.
In addition to accepting illegal bribes, Diaz also engaged in drug trafficking while with the BPD. On September 20, 2012, while on duty, Diaz stopped a vehicle operated by two individuals from Yakima, Washington and used a BPD dog handler and police dog to search the vehicle. The search uncovered an ice chest containing approximately 10 pounds of methamphetamine divided into multiple bags. The BPD dog handler did not seize any of the drugs from the vehicle, but turned the scene over to Diaz and Mara to secure the methamphetamine and oversee the investigation of the incident. A week later, Diaz booked approximately one pound of methamphetamine from the vehicle stop into evidence. Diaz and Mara maintained possession of the remaining nine pounds of methamphetamine, and they ultimately sold it for their own personal gain.
According to the plea agreement, Diaz also filed a joint income tax return for the calendar year 2012 that falsely reported total income of $168,485 and did not include additional income of at least $97,900.
Acting U.S. Attorney Talbert stated: “Diaz had a life that afforded him many opportunities, including the opportunity to serve and protect his community as an officer of the law. Diaz turned his back on those opportunities and broke the trust his community placed in him, violating the very laws he was sworn to enforce. Public corruption takes a heavy toll on our communities, and our office remains committed to prosecuting such conduct.”
Bakersfield Chief of Police Williams stated: “I appreciate the efforts of all agencies involved in this lengthy and exhaustive investigation and I am thoroughly satisfied with the ultimate conviction of Damacio Diaz. The behavior and criminal activity that was exposed during this comprehensive investigation is in no way reflective of the commitment and remarkable public service the over 500 employees of the Bakersfield Police Department provide to our community on a consistent basis. Diaz violated not only the trust of this organization but that of this community. The Bakersfield Police Department is committed to building and maintaining public trust by holding our employees accountable for their actions and we will continue to provide quality service to our community. We appreciate the support we have been given throughout this investigation and wish to thank the community for their patience and understanding.”
DEA Special Agent in Charge John J. Martin stated, “Damacio Diaz committed crimes in a community he took an oath to serve and protect. In doing so, he betrayed the trust of the public and his fellow officers.”
“Damacio Diaz used his lawful authority as a sworn peace officer with the Bakersfield Police Department to illegally enrich his self-interests,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Greed was a major motivation for Diaz to begin making unfortunate decisions that brought him to conspire with drug dealers and accept bribes for money. IRS-CI will continue to work with our law enforcement partners and the United States Attorney’s Office to investigate these types of crimes that have a negative impact on our communities and the American Taxpayer.”
“Diaz's illegal activity caused irreparable damage to his reputation, put the lives of others at risk, undermined public trust in the Bakersfield Police Department, and facilitated criminal activity,” said Special Agent in Charge Monica M. Miller of the FBI Sacramento field office. “The FBI and its federal law enforcement partners will continue to identify and investigate individuals who violate their oath of service and ignore the commitment they made to their communities.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Bakersfield Police Department. Assistant United States Attorneys Brian K. Delaney and Angela Scott prosecuted the case.
FBI Citizens Academy Alumni Visit INTERPOL WashingtonRead the Press Release
INTERPOL Washington FBI Academy Alumni from Birmingham, Alabama, Visit INTERPOL Washington's International Operations and Command Center.On September 29, 2016, members of the Birmingham Chapter of the Federal Bureau of Investigation (FBI) Citizens Academy Alumni Association (FBICAAA) visited INTERPOL Washington, the U.S. National Central Bureau (USNCB).
The visit was one of several the group took to federal law enforcement organizations in the Washington, D.C. area this week. The group received an overview of the operations and capabilities of the USNCB followed by an opportunity to ask questions of USNCB staff. They also toured the INTERPOL Operations and Command Center (IOCC).
FBI Citizens Academy programs give business, religious, civic, and community leaders around the United States a six-to-eight week look inside the FBI. Classes meet in the evening in FBI offices.
The mission of the Academies is to foster greater understanding of the role of federal law enforcement in the community through frank discussion and education. Candidates are selected by the special agent in charge of the local FBI field office. To find out more about the FBI Citizens Academy in your area, contact your local field office at https://www.fbi.gov/contact-us .
Elgin Man Sentenced on Federal Fraud ChargesRead the Press Release
ROCKFORD — An Elgin resident was sentenced today by U.S. District Judge Frederick J. Kapala on federal fraud charges.
STEPHEN T. ANGERMAN, 48, of Elgin, was sentenced to 26 months in federal prison, to be followed by 3 years of supervised release. A hearing to determine the amount of restitution has been set for Oct. 21, 2016, at 2:30 p.m. before Judge Kapala.
Angerman pleaded guilty on June 24, 2016, to bank fraud, money laundering, and testifying falsely in a bankruptcy case.
In his written plea agreement, Angerman admitted that from December 2009 through March 31, 2010, he schemed to fraudulently obtain a $510,000 loan from Alliant Credit Union and a $64,590 loan from Prairie Community Bank in order to purchase a home on Wrenwood Circle in Elgin. Angerman admitted to making false statements on his loan application to Alliant about his employment, assets, and liabilities. He further admitted to submitting fictitious bank account statements, pay stubs, a W-2 earnings form, and a fraudulent Certificate of Gift form to the credit union in support of his application. Alliant issued the loan based upon Angerman’s false representations.
Angerman also admitted that in December 2009 and January 2010, he applied for and obtained a $64,590 loan from Prairie Community Bank by pledging a 2008 Chevrolet Corvette as collateral without disclosing that the Corvette was subject to a prior lien of approximately $40,000 held by another bank. Angerman further admitted in his plea agreement that he schemed to defraud PNC Bank and Consumers Credit Union in order to obtain a $69,200 loan from PNC Bank and a $69,000 loan from Consumers Credit Union by secretly double pledging his home on Wrenwood Circle in Elgin as security for both loans.
With regard to the money laundering charge, Angerman admitted that on March 23, 2010, he transferred most of the proceeds - $64,500 - from his checking account at Alliant Credit Union to an account in the name of a relative at a different bank in an attempt to conceal his bank fraud against Prairie Community Bank.
On Jan. 3, 2011, Angerman filed for bankruptcy in Rockford. Angerman admitted that on Feb. 7, 2011, he falsely testified under oath at a meeting of creditors by stating he did not own any real estate other than what he had listed in his bankruptcy schedules, and that he did not own a car, when in fact he owned the home on Wrenwood Circle in Elgin and a 2008 Chevrolet Corvette.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; and James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service - Criminal Investigation Division in Chicago.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Department of Justice Awards $119 Million to Hire Community Policing OfficersRead the Press Release
Attorney General Loretta E. Lynch today announced $119 million in grant funding through the Department of Justice, Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). The Attorney General announced funding awards to 184 law enforcement agencies across the nation, aimed at creating, or in some cases protecting, more than 900 law enforcement positions. The Attorney General made today’s announcement in Dallas, where the Dallas Police Department will receive $3.1 million through the COPS Hiring Program to hire 25 officers.
CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts. All CHP applicants were asked to identify a specific crime and disorder problem area and how funding would be used to initiate or enhance their capacity to implement community policing approaches to that problem area.
In 2016, the COPS Office gave additional consideration to applicant agencies selecting the category of “Building Trust,” based on the final report of the President’s Task Force on 21st Century Policing. Additional consideration was also given to agencies that selected the areas of school-based policing, homicide or violent crime, and homeland security. Applicants who committed to hiring or rehiring at least one military veteran under CHP also received additional consideration for funding. The complete list of award recipients can be found here: http://www.cops.usdoj.gov/default.asp?Item=2888.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 129,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
Department of Justice Announces National Community Policing WeekRead the Press Release
Attorney General Lynch, Dallas Cowboys to hold 21st Century Community Policing Youth Forum on Facebook Live!
Justice Department to Announce nearly $119 million in Grant Awards to Advance Community Policing Efforts
As part of the Obama Administration’s commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice will lead nearly 400 events in support of community policing efforts around the country. To further that effort, President Obama has designated the week of Oct. 2-8, 2016, as National Community Policing Week. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
“Strengthening the relationship between law enforcement officers and the communities we serve and protect is one of my top priorities,” said Attorney General Loretta E. Lynch. “During National Community Policing Week, we will be hosting hundreds of events around the country designed to foster dialogue, promote cooperation, and help citizens and law enforcement officers get to know one another as partners in our shared efforts to build stronger, safer, and more just communities for every American.”
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect and serve. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
To launch the national week of engagement, Attorney General Lynch will visit Dallas, Texas on MONDAY, OCT. 3, hold a 21st Century Community Policing Youth Forum with students, officer cadets, and Jason Witten and Barry Church of the Dallas Cowboys known for their work to bring communities and law enforcement together. The forum will also be featured on the Department of Justice Facebook Live page.
While in Dallas, the Attorney General will announce $119 million in grant funding through the Department of Justice, Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP). These grants will provide matching funding awards to 184 law enforcement agencies across the nation, aimed at creating, or in some cases protecting, more than 900 law enforcement positions. CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts.
The following day, TUESDAY, OCT. 4, the Attorney General will join Dallas Mayor Mike Rawlings and Deputy Mayor Pro Tem Erik Wilson at a National Night Out event at the University of North Texas at Dallas. National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement, to promote crime prevention efforts, and to foster collaborative engagement amongst neighbors who are committed to working together to keep each other safe. The Attorney General also attended National Night Out earlier in the summer during her visit to Detroit for the Justice Department’s first Justice Forum.
Also while in Dallas, the Attorney General will attend several meetings with rank-and-file officers, hold a roundtable discussion with local police chiefs, and pay respects to the families of those officers who tragically lost their lives in the line of duty this past July.
Later in the week, Attorney General Lynch will participate in a Town Hall on diversity in law enforcement hosted by Howard University. This discussion is part of the Engaging College Students in 21st Century Law Enforcement Project that resulted from a grant provided by the DOJ Office of Community Oriented Policing Services (COPS) to explore strategies that encourage recruitment among diverse millennials for law enforcement positions.
On THURSDAY, OCT. 6, Attorney General Lynch and Deputy Attorney General Sally Q. Yates will deliver remarks at the inaugural Attorney General’s Awards for Distinguished Service in Community Policing, along with Director Ronald Davis of the COPS Office. The Attorney General’s Award for Distinguished Service in Community Policing recognizes individual state, local or tribal sworn police officers and deputies who exemplify remarkable achievements in innovative community policing strategies, criminal investigations, and field operations.
Attorney General Lynch will conclude National Community Policing week in Newark, New Jersey, where she will hold the last in a series of regional Justice Forums on FRIDAY, OCT. 7. In the wake of the recent events, including both the tragic officer-involved deaths of civilians and appalling, premeditated attacks on police officers, the Department of Justice launched a series of convenings—Justice Forums—in cities across the nation to provide a forum for local community leaders, youth advocates, law enforcement, and state and local officials to critically examine police-community issues in their respective cities and regions in order to seek solutions together. Thus far, Attorney General Lynch has hosted a Justice Forum in Detroit, and Deputy Attorney General Yates has hosted a Justice Forum in Denver.
Additionally, Deputy Attorney General Yates will hold a Justice Forum in Atlanta on MONDAY, OCTOBER 3, to commence National Community Policing Week. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Civil Rights Division, and Director Paul Monteiro of the Community Relations Service (CRS) will join Deputy Attorney General Yates at the Atlanta Justice Forum. Assistant Attorney General Karol Mason of the Office of Justice Programs (OJP) will also attend the Newark Justice Forum, along with Principal Deputy Assistant Attorney General Gupta and Director Davis of the COPS Office.
For more information on National Community Policing Week or the Attorney General’s Community Policing Tour, please visit https://www.justice.gov/ag/community-policing-tour.
21st CENTURY COMMUNITY POLICING YOUTH FORUM ON FACEBOOK LIVE
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Jason Witten of the Dallas Cowboys
Barry Church of the Dallas Cowboys
WHEN: MONDAY, OCTOBER 3, 2016
2:30 p.m. CDT
WHERE: Sunset High School
2120 W. Jefferson Boulevard
Dallas, TX 75208
OPEN PRESS (Media Gather: 1:30 p.m. CDT // Final Access: 2:00 p.m. CDT)
DOJ FACEBOOK LIVE
NOTE: Please RSVP to [email protected] by Sunday, Oct. 2, at 8:00 p.m. CDT. Media inquiries regarding logistics should be directed to [email protected] and [email protected].
NATIONAL NIGHT OUT EVENT WITH THE DALLAS POLICE DEPARTMENT
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Mayor of Dallas Mike Rawlings
Director Ronald Davis of the Office of Community Oriented Policing Services
WHEN: TUESDAY, OCTOBER 4, 2016
5:30 p.m. CDT
WHERE: University of North Texas at Dallas
7300 University Hills Boulevard
Dallas, TX 75241
OPEN PRESS
NOTE: Following the Attorney General’s remarks at National Night Out, Attorney General Lynch will participate in a media availability. Media interested in attending National Night Out and the media availability should RSVP to [email protected] by Monday, Oct. 3, at 5:00 p.m. CDT. Media inquiries regarding logistics should be directed to [email protected] and [email protected].
DIVERSITY IN LAW ENFORCEMENT TOWN HALL WITH THE ATTORNEY GENERAL AT HOWARD UNIVERSITY
WHO: Attorney General Loretta E. Lynch
WHEN: WEDNESDAY, OCTOBER 5, 2016
3:30 p.m. EDT
WHERE: Howard University
Armour J. Blackburn University Center
2397 Sixth Street, NW
Washington, DC 20059
OPEN PRESS (Media Access: 2:30 p.m. EDT // Final Access: 3:15 p.m. EDT)
INAUGURAL ATTORNEY GENERAL’S AWARD FOR DISTINGUISHED SERVICE IN COMMUNITY POLICING CEREMONY
WHO: Attorney General Loretta E. Lynch
Deputy Attorney General Sally Q. Yates
Director Ronald Davis of the Office of Community Oriented Policing Services
WHEN: THURSDAY, OCTOBER 6, 2016
2:00 p.m. EDT
WHERE: U.S. Department of Justice
Great Hall
950 Pennsylvania Avenue, NW
Washington, DC 20530
OPEN PRESS (Media Access: 1:00 p.m. EDT // Final Access: 1:45 p.m. EDT)
LIVESTREAMED AT WWW.JUSTICE.GOV/LIVE-STREAM.
REGIONAL JUSTICE FORUM IN NEWARK
WHO: Attorney General Loretta E. Lynch
U.S. Attorney Paul Fishman of the District of New Jersey
Assistant Attorney General Karol Mason of the Office of Justice Programs
Head of the Civil Rights Division Vanita Gupta
Director Ronald Davis of the Office of Community Oriented Policing Services
WHEN: FRIDAY, OCTOBER 7, 2016
10:30 a.m. EDT
WHERE: Newark Public Library
5 Washington Street
Newark, NJ 07102
OPEN PRESS (Media Access: 9:30 a.m.EDT //Final Access 10:10 a.m. EDT)
NOTE: Additional details for each event will be issued as they become available. Media inquiries regarding logistics should be directed to [email protected] and [email protected].
Additionally, the event information for Deputy Attorney General Yates National Community Policing Week events can be found below:
REGIONAL JUSTICE FORUM IN ATLANTA
WHO: Deputy Attorney General Sally Q. Yates
Head of the of the Civil Rights Division Vanita Gupta
Director Paul Monteiro of the Community Relations Service
U.S. Attorney John A. Horn of the Northern District of Georgia
WHEN: MONDAY, OCTOBER 3, 2016
10:30 a.m. EDT
WHERE: National Center for Civil and Human Rights
100 Ivan Allen Jr Boulevard NW
Atlanta, GA 30313
OPEN PRESS AT THE TOP (Media Gather: 9:45 a.m. EDT // Final Access: 10:15 a.m. EDT)
NOTE: All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Space is limited and not guaranteed. Press inquiries regarding logistics should be directed to Robert Page at [email protected].
EVENT ANNOUNCING A NEW INTERAGENCY REPORT ON ADVANCING DIVERSITY IN LAW ENFORCEMENT
WHO: Deputy Attorney General Sally Q. Yates
Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division
Equal Employment Opportunity Commission Chair Jenny R. Yang
WHEN: WEDNESDAY, OCT. 5, 2016
9:30 a.m. EDT
WHERE: U.S. Department of Justice
7th Floor Press Conference Room
950 Pennsylvania Avenue, NW
Washington, DC 20530
OPEN PRESS (Media Access: 8:45 a.m. EDT // Final Access: 9:15 a.m. EDT)
NOTE: Press inquiries regarding logistics should be directed to the Office of Public Affairs at [email protected] or 202-514-2007.
DOJ Grants Support Local Law Enforcement and State of Iowa: Will Strengthen Community Policing & Prevention EffortsRead the Press Release
CEDAR RAPIDS, IOWA—Local law enforcement and the State of Iowa received Department of Justice grants designed to better serve the community, enhance transparency, and support prevention and intervention efforts.
The Cedar Rapids Police Department (CRPD) and the Linn County Sheriff’s Office were jointly awarded an Edward Byrne Memorial Justice Assistance Grant for fiscal year 2016. The $50,045 grant will be shared equally between the two agencies. The CRPD is committed to strengthening its partnership with local and federal prosecutors by conducting thorough investigations. The grant will be used to enhance existing surveillance and technology equipment and will benefit both investigative efforts and bring clarity to evidentiary matters in court proceedings. The Sheriff’s Office better serves the greater Cedar Rapids community by having the ability to timely respond to, and report on, potential criminal activity. The grant will be used to outfit patrol vehicles with up-to-date mobile equipment, which will improve efficiency and accuracy in responding and reporting.
The Edward Byrne Memorial Justice Assistance Grant (JAG) Program is the primary provider of federal criminal justice funding to state and local jurisdictions. The JAG Program provides states and units of local governments with critical funding necessary to support a range of program areas including law enforcement; prosecution and court programs; prevention and education programs; corrections and community corrections; drug treatment and enforcement; crime victim and witness initiatives; and planning, evaluation, and technology improvement programs.
The State of Iowa’s Criminal and Justice Planning Agency (JJAC) received a grant from the Formula Grants Program under the Juvenile Justice and Delinquency Prevention Act in the amount of $412,161 for fiscal year 2016. JJAC will use the grant to enhance priority areas such as: evidence-based practices; support gender equality in justice system services; continue to work on a reduction in the disparate number of minority youth involved in the juvenile justice system; and collaborate with local and state initiatives to address mental health and substance abuse issues for justice involved juveniles.
The Formula Grants Program supports state and local delinquency prevention and intervention efforts and juvenile justice system improvements. The Office of Juvenile Justice Delinquency Prevention, a component of DOJ’s Office of Justice Programs, accomplishes its mission by supporting states, local communities, and tribal jurisdictions in their efforts to develop and implement effective programs for juveniles. The office strives to strengthen the juvenile justice system’s efforts to protect public safety, hold justice-involved youth appropriately accountable, and provide services that address the needs of youth and their families.
United States Attorney for the Northern District of Iowa, Kevin W. Techau, stated, “These grants support the common federal, state and local goal of strengthening law enforcement capabilities, enhance transparency, and strengthen the goals of community policing.”
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Columbus, Ohio man pleads guilty to transporting stolen items across state linesRead the Press Release
WHEELING, WEST VIRGINIA – Maurice L. Whyte, II, 23, of Columbus, Ohio pled guilty to transporting stolen goods across state lines, United States Attorney William J. Ihlenfeld, II, announced.
Whyte pled guilty to one count of “Conspiracy to Transport Stolen in Interstate Commerce.” He admitted to conspiring to steal primarily smart phones, tablets, head phones, games stations, and computers from Walmart, Target, and Meijer stores in eight different states, including West Virginia and Ohio. The value of the stolen goods are estimated to be in excess of $500,000.
He faces up to five years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Robert H. McWilliams, Jr. prosecuted the case on behalf of the government. The Federal Bureau of Investigation and the Columbus, Ohio Police Department investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Colorado Couple Pays $30,000 to Settle Allegations of Trespass and Cutting of 230 Trees from U.S. Government Property Near Keystone LakeRead the Press Release
TULSA, Okla.—A Colorado couple has paid $30,000 to resolve allegations that they trespassed and either cut down or had another person cut down trees on property owned by the United States government, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma.
Charles and Meegon Reilly own property in Mannford, Okla., that was occupied by Johnny Bozarth. Their property is adjacent to property owned by the United States Army Corps of Engineers, as part of the Keystone Lake Project.
According to the settlement agreement, the United States alleged that, on or before April 1, 2015, the Reilly’s and/or Bozarth trespassed and either cut down or had another person cut down approximately 230 trees in violation of Federal and Oklahoma laws.
The case was handled by Assistant United States Attorney Marianne Hardcastle.
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Chico Man Found Guilty of Receipt, Distribution, and Conspiracy to Produce Child PornographyRead the Press Release
SACRAMENTO, Calif. — After a three–day trial, a federal jury found Jesse Davenport, aka Draco John Flama, 41, of Chico, guilty today of conspiracy to sexually exploit a child, two counts of receipt of child pornography, and one count of distribution of child pornography, Acting United States Attorney Phillip A. Talbert announced. The trial was held before United States District Judge Morrison C. England Jr.
According to evidence presented at trial, in September of 2013, Davenport was on parole for a prior offense. During a parole search, his parole agent seized a micro-SD card from a phone he possessed. Several days later, Davenport cut off his electronic monitor and fled from parole. A subsequent search of the seized micro-SD card revealed a video of a woman engaged in sexually explicit conduct with a child approximately 2-3 years old. Additional investigation identified the woman in the sexually explicit video as a resident of Connecticut. She was later arrested and admitted that she conspired with Davenport to produce the video after meeting Davenport in an online chat room focused on bondage, domination, sadism, and masochism. After the Connecticut woman sent the sexually explicit video of the minor to him, Davenport distributed the video to another person. Later, the Connecticut woman sent the video to Davenport a second time.
This case is the product of an investigation by the Federal Bureau of Investigation, the Redding Police Department, and the California Department of Corrections and Rehabilitation. Assistant United States Attorney André M. Espinosa is prosecuting the case.
Davenport is scheduled to be sentenced by Judge England on January 5, 2017. Because of his prior conviction, Davenport faces a mandatory minimum sentence of 25 years in prison and a maximum possible penalty of 50 years in prison and a $250,000 fine on the conspiracy conviction. Similarly, because of his prior conviction he faces a mandatory minimum sentence of 15 years in prison and a maximum possible penalty of 40 years in prison and a $250,000 fine on each of the receipt and the distribution convictions. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet safety education.
Charleston woman sentenced to prison for federal drug crimeRead the Press Release
Charleston, W.Va. – A Charleston woman was sentenced today to a year and a day in prison for a federal drug crime, announced United States Attorney Carol Casto. Alisha Watts, 33, previously pleaded guilty to maintaining a drug-involved premises.
On March 18, 2016, officers with the Metropolitan Drug Enforcement Network Team executed a search warrant at 1210 Stonebrook Road in Charleston. Upon entering the residence, officers found Watts asleep in the bedroom. Watts admitted to being the occupant of the residence. Beside the bed, officers found a loaded handgun, over 600 grams of methamphetamine in the kitchen cabinets, and over 100 pounds of marijuana packaged in one-pound blocks throughout the residence. Additionally, officers located approximately $34,000 cash. Watts admitted that the drugs were being stored at her residence and were intended for distribution by a codefendant, Terrus Carter.
Carter was previously sentenced to eight years in federal prison for a methamphetamine charge. As part of Carter’s plea agreement, he agreed to forfeit a St. Albans residence and over $79,000 in cash.
The investigation was conducted by the Metropolitan Drug Enforcement Network Team. Assistant United States Attorney Monica D. Coleman is responsible for the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
These cases were brought as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat illegal drugs in our communities. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of heroin and other drugs in communities across the Southern District.
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Charleston felon sentenced to federal prison for illegal gun possessionRead the Press Release
CHARLESTON, W.Va. – A Charleston man was sentenced today to three and a half years in federal prison for illegal possession of a firearm, announced United States Attorney Carol Casto. Dereck Skylar Brown, 33, previously pleaded guilty to being a felon in possession of a firearm.
On July 4, 2015, Charleston Police Detectives responded to a shooting at a bar on Leon Sullivan Way and observed Brown leaving the bar immediately after they heard several gunshots from inside the bar. Brown appeared to be concealing something in his waistband as he exited the front door of the bar. Brown ignored the detectives’ commands to stop until after he briefly leaned into an unoccupied vehicle parked with its driver side door open. One detective detained Brown while another looked into the vehicle and observed a Colt .380 semiautomatic pistol on the passenger seat of the vehicle.
The West Virginia State Police Forensic Laboratory later identified a fingerprint lifted from the pistol’s magazine as having been made by Brown’s right thumb. Brown was prohibited from possessing any firearm under federal law because of his numerous felony convictions, including armed robbery, attempted possession with intent to distribute cocaine, and malicious wounding.
Three people inside the bar suffered non-fatal gunshot wounds. Through law enforcement’s forensic analysis, Brown was excluded as a suspect in the shooting.
The case against Brown was investigated by the Charleston Police Department’s Street Crimes Unit, and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The West Virginia State Police Forensic Laboratory also provided invaluable assistance to the investigation. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by networking existing local programs targeting gun crime.
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Cantor Fitzgerald Affiliate to Pay More Than $16 Million in Penalties and Forfeiture for Engaging in Illegal Gambling and Money Laundering SchemesRead the Press Release
CG Technology, LP, formerly doing business as Cantor Gaming (CG Technology and Cantor Gaming),[1] one of the largest race and sports book operators in the United States, has entered into a non-prosecution agreement and agreed to pay $16.5 million in penalties and forfeiture to the federal government to resolve a criminal investigation into the company’s past involvement in illegal gambling and money laundering schemes. In addition, pursuant to the agreement, CG Technology will provide continuing cooperation and has undertaken far-reaching reforms to its business and compliance operations. Michael Colbert, a former senior executive officer at Cantor Gaming, who was the Director of Risk Management, previously pleaded guilty in the United States District Court for the Eastern District of New York to conspiring to participate in an illegal gambling business. Colbert faces up to five years’ imprisonment for his involvement in criminal activity at Cantor Gaming.
The resolution was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Daniel G. Bogden, United States Attorney for the District of Nevada; Philip Bartlett, Inspector in Charge, United States Postal Inspection Service, New York Division (USPIS); Richard Weber, Chief, Internal Revenue Service, Criminal Investigation (IRS-CI); and James P. O’Neill, Commissioner, New York City Police Department (NYPD).
“Cantor Gaming quickly grew into one of the largest race and sports book operators in the United States. Unacceptably, this growth came at the expense of compliance with the law, and as a result Cantor Gaming became a place where at least two large-scale illegal bookmakers could launder their ill-gotten proceeds. The Cantor Gaming senior officer who oversaw the illegal conduct has pleaded guilty for his involvement in this criminal activity. The non-prosecution agreement recognizes Cantor Gaming’s decision to accept full responsibility, provide complete cooperation, and take remedial measures to enforce best industry practices going forward,” stated U.S. Attorney Capers. Mr. Capers thanked the investigative agencies for their outstanding commitment and dedication over the course of this investigation. Mr. Capers also thanked the District Attorney’s Office for Queens County, the Financial Crimes Enforcement Network of the Department of the Treasury, and the Nevada Gaming Control Board, Enforcement Division for their assistance with the investigation.
“CG Technology’s admissions that it violated federal laws by accepting messenger betting, out-of-state betting, and processing large amounts of monies which were the proceeds of illegal activities, are significant victories for the government,” said U.S. Attorney Bogden.
“CG Technology, formerly Cantor Gaming, ran its enterprise with total disregard for government regulations and the penalties associated with breaking the law. As Postal Inspectors and their law enforcement partners continue to prove, greed and eagerness to ‘game’ the system will never be tolerated, and those who choose to ignore the law will be brought to justice,” said USPIS Inspector Bartlett.
“Cantor Gaming bet on never getting caught but this wager didn’t pay off,” said Chief Weber, IRS Criminal Investigation. “Financial transactions always leave a money trail and IRS-CI Special Agents relentlessly follow that trail. This large scale illegal bookmaking investigation uncovered the kind of widespread corruption that is too often associated with criminal enterprises. Working with our law enforcement partners, we will continue to pursue these types of investigations to keep the books clean for consumers and corporations who are following the law.”
“Illegal sports betting is a multi-million-dollar business often involving other illicit activity. There is good reason why this activity needs to be regulated and operated according to the law and industry standards. The illegal conduct forming the basis for this investigation was clearly motivated by greed and deliberate disregard for the rules of the gaming industry. This settlement should serve as a message to those who try to beat the system,” stated NYPD Commissioner O’Neill.
Pursuant to the non-prosecution agreement signed today, Cantor Gaming, which is now known as CG Technology, acknowledged and accepted responsibility for aiding and abetting the operation of an illegal gambling business and money laundering from approximately 2009 through 2013. Cantor Gaming, an affiliate of the financial services company Cantor Fitzgerald, LP, operates race and sports books in the following eight casinos all located in Las Vegas, Nevada: the Venetian, the Palazzo, the M Resort Spa Casino, the Hard Rock Hotel and Casino, the Tropicana, the Cosmopolitan, the Palms Casino Resort, and the Silverton Casino Hotel.
Cantor Gaming’s strategy to grow its business required it to attract and retain bettors who frequently placed large wagers on sporting contests. To do so, Cantor Gaming offered higher betting limits than other sports books and gave the important bettors preferential treatment, including direct access to Michael Colbert, whose job was to set the lines and odds for the betting contests. Important bettors interacted with Colbert and his staff rather than the “front of the house” staff that was under the supervision of Cantor Gaming’s chief operating officer, which normally handled interactions with bettors. To accommodate some of the important bettors, Colbert and his staff facilitated violations of state and federal laws, including: (a) knowingly accepting and facilitating “messenger betting”[2] in its sports books on repeated occasions; (b) knowingly accepting and facilitating out-of-state betting activity through wire communications; and (c) processing large cash deposits and withdrawals and third-party wire transfers, knowing that the property involved represented the proceeds of some form of illegal activity. As set forth in the Statement Facts, which is attached to the non-prosecution agreement, two of these important high volume bettors ran illegal bookmaking operations and were able to launder their illegal proceeds through Cantor Gaming wagering accounts.
On or about August 21, 2013, Michael Colbert pleaded guilty in the Eastern District of New York to conspiracy to conduct an illegal gambling business, in violation of Title 18, United States Code, Section 371, and faces a term of imprisonment of up to five years when sentenced.
In light of CG Technology’s complete acceptance of responsibility for the full breadth of its unlawful conduct, cooperation, and far-reaching remedial measures, the government has agreed not to prosecute CG Technology for its criminal conduct, provided that CG Technology complies for two years with all the terms of the agreement executed today.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorneys James P. Loonam and Matthew Amatruda are in charge of the case, with assistance from Assistant United States Attorney Brian Morris of the Office’s Civil Division, which is responsible for the forfeiture of assets, as well as Assistant United States Attorney Nicholas Dickinson of the District of Nevada.
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This resolution was the result of efforts by the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
[1] Cantor Gaming changed its name to CG Technology, LP in January 2014. The conduct which was the subject of the criminal investigation occurred while the company was doing business as Cantor Gaming.
[2] The practice of having an agent or “runner” place a bet on behalf of a third-party in exchange for compensation is known as “messenger betting.” It is illegal for a licensed sports book in Nevada to knowingly accept wagers from compensated agents.
Braymer Man Sentenced for $262,000 Cattle FraudRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Braymer, Mo., man was sentenced in federal court today for a cattle fraud scheme that resulted in losses of more than $262,000 to his victims.
Garland Joseph “Joey” Nelson, 22, of Braymer, was sentenced by U.S. District Judge Howard F. Sachs to two years in federal prison without parole. The court also ordered Nelson to pay $262,450 in restitution to his victims, including the USDA Farm Service Agency, Cyclone Cattle Company and individual victims. The government may enforce restitution and the recovery of government property under lien at any time. Nelson must report to the Bureau of Prisons on Nov. 21, 2016, to begin serving his sentence.
On Nov. 30, 2015, Nelson pleaded guilty to a fraud scheme using property mortgaged or pledged to farm credit agencies. Nelson engaged in a three-part fraud scheme that caused a combined loss of $262,450.
Loan Fraud: $138,452
Nelson admitted that he engaged in a scheme to sell at least 114 mortgaged head of cattle that were pledged to the Farm Service Agency (FSA), without notifying FSA of the sales, from April 1, 2013, through June 2014. He did not instruct purchasers to address proceeds checks to the FSA as well as to him, and he did not remit the bulk of the sale proceeds to FSA, as was required by the terms of his loans. Instead, Nelson admitted that he kept the funds for his personal use.
Nelson received two livestock operating loans in April 2013 totaling $158,000 for the limited purpose of buying and raising cattle. In violation of the express terms of his loans, and with fraudulent intent, Nelson conducted livestock sales from April 2013 to July 2014 under the name “Joey Nelson” to avoid detection. He conducted other sales in the name of a friend to further conceal his involvement. His friend then transferred the proceeds to Nelson.
Nelson ceased making repayments on his FSA loans as of Jan. 12, 2015. His outstanding principal balance is $138,452, plus applicable interest and penalties. Nelson filed for Chapter 7 bankruptcy on June 25, 2015.
Livestock Sales: $124,000
Nelson also schemed to remove identification from cattle that was owned by others but placed in his care to graze. Nelson removed identification tags from 646 head of cattle that belonged to others, and commingled these cattle with his own and with those owned by his neighbor and landlord, in order to sell livestock undetected. He sold those cattle for his own benefit, for a total loss to three victims of $124,000.
This case was prosecuted by Special Litigation Counsel Gregg R. Coonrod. It was investigated by the U.S. Department of Agriculture, Office of Inspector General.
Belle Glade Resident Sentenced in Stolen Identity Tax Refund Fraud Conspiracy Involving Students and Other Individuals’ Personal Identifying InformationRead the Press Release
A Palm Beach County resident was sentenced to 48 months in prison, to be followed by two years of supervised release, and was ordered to pay restitution in the amount of $188,570 for his participation in a stolen identity tax refund fraud conspiracy involving students and other individuals’ personal identifying information (PII).
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Terry L. Rhodes, Executive Director, Florida Highway Patrol (FHP), made the announcement.
Oniel Winston Scarlett, 27, of Belle Glade, previously pled guilty to one count of conspiracy to commit wire fraud, to retain and conceal monies stolen from the United States, and to commit identity theft, all in violation of Title 18, United States Code, Section 371; one count of wire fraud, in violation of Title 18, United States Code, Section 1343; and one count of aggravated identity theft, in violation of Title 18, United States Code, Section 1028A.
According to court documents, Scarlett and his co-conspirators fraudulently obtained and exchanged amongst themselves the PII of other individuals, filed fraudulent income tax returns with the IRS using the stolen PII, and directed fraudulent refunds to be deposited onto pre-paid debit cards in the names of other individuals using the stolen PII.
Scarlett was in possession of stolen PII during a traffic stop on September 20, 2011. During the traffic stop, the FHP trooper conducted a consent search of Scarlett’s vehicle and found 92 Wal-Mart pre-paid debit cards; printouts of hundreds of peoples’ PII; pre-paid debit card information and money amounts for the cards; more than fifty Palm Beach County School Board’s mainframe database printouts with students’ names, Social Security numbers, and dates of birth; two laptop/notebook computers with accessories; two memory sticks; a cell phone; and a phone book for the Belle Glade, Florida area. The trooper also found bank account information, where it was later determined that nearly $77,000 in federal tax refunds were direct deposited from fifty-two separate fraudulent tax returns filed with the IRS.
Scarlett admitted he had been recruited to help register pre-paid debit cards that were to be used to accept the fraudulent IRS refunds. He also admitted his role in agreeing to accept money for his role in helping complete the crime. Some of the PII was also used to file false tax returns with the IRS. On the computer, law enforcement found 228 separate login user identifications used to file false income tax returns claiming approximately $290,000.
Mr. Ferrer commended the investigative efforts of IRS-CI and the FHP. The case is being prosecuted by Assistant U.S. Attorney Stephen Carlton.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Bank Robber Sentenced to Lengthy Prison TermRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced today that Anthony Oliphant, Jr. of Brown Deer, Wisconsin, was sentenced by the Honorable J.P. Stadtmueller to 114 months’ imprisonment for his role in committing the March 4, 2016, armed robbery of the Tri City National Bank in Brown Deer. Oliphant’s prison sentence will be followed by 60 months of supervised release. He has also been ordered to pay restitution to the bank.
During the robbery, Oliphant entered the bank, loudly tapped a revolver on the counter in front of a teller, and demanded money. He then began pacing the bank lobby and angrily confronted another teller when he mistakenly believed she had pressed the silent alarm button. A total of seven bank employees were present during the robbery. Oliphant fled the bank on foot carrying a backpack, into which a teller had deposited money. A Brown Deer Police K-9 unit was used to track his flight path and led law enforcement to items Oliphant discarded following the robbery. Those items and other investigative steps led law enforcement to identify Oliphant as the bank robber.
The successful prosecution of this case was the result of a joint investigation by the Brown Deer Police Department and the Federal Bureau of Investigation. Assistant United States Attorneys Benjamin Taibleson and Kelly B. Watzka prosecuted the case.
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Atlanta Man Sentenced on Wire Fraud ChargeRead 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 Rodney Walker, 46, of Atlanta, Georgia, who was convicted of wire fraud, was sentenced to 15 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay $ 175,000 in restitution.
Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that the defendant defrauded investors in an advance fee scheme, which resulted in $175,000 dollars in financial losses to a film production company, Applecreek Productions, located in England. Walker represented to the victim film production company that he could obtain a standby letter of credit from banks outside the United States. The defendant assured representatives of the company that he could monetize the stand by letter of credit which would provide the film production company with $100 million dollars in loans. As part of the scheme, Walker required the company to provide him with $175,000 which would purportedly cover the costs associated with the financial transaction. The film production company provided the funds but instead of using the money to obtain financing, the defendant, and his co-conspirators, used the funds for their own purposes.
Co-conspirators John Nielson, Robert Storey, Rhett Shepard, Nick Mussolini have also been convicted in this case.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen.
Saturday 1 October 2016
Attorney General Lynch to Launch National Community Policing Week in DallasRead the Press Release
WASHINGTON – Attorney General Loretta E. Lynch will launch National Community Policing Week by traveling to Dallas on MONDAY, OCT. 3, to hold a 21st Century Community Policing Youth Forum with students, officer cadets, and Jason Witten and Barry Church of the Dallas Cowboys known for their work to bring communities and law enforcement together. The forum will also be featured on the Department of Justice Facebook Live page.
“Strengthening the relationship between law enforcement officers and the communities we serve and protect is one of my top priorities,” said Attorney General Lynch. “During National Community Policing Week, we will be hosting hundreds of events around the country designed to foster dialogue, promote cooperation, and help citizens and law enforcement officers get to know one another as partners in our shared efforts to build stronger, safer, and more just communities for every American.”
The following day, TUESDAY, OCT. 4, the Attorney General will join Dallas Mayor Mike Rawlings at a National Night Out event led by the Dallas Police Department. National Night Out is an annual community-building campaign that promotes police-community partnerships and neighborhood camaraderie to make our neighborhoods safer, better places to live. Established in 1984 from a Department of Justice Bureau of Justice Assistance (BJA) grant, the goal of National Night Out is to build relationships with and between communities and law enforcement, to promote crime prevention efforts, and to send a message to criminals that neighbors are paying attention and are prepared to work together to keep each other safe. Attorney General also attended National Night Out earlier in the summer during her visit to Detroit for the first Justice Forum.
Also while in Dallas, the Attorney General will also attend several meetings with rank-and-file officers, hold a roundtable discussion with local police chiefs, and pay respects to the families of those officers that tragically lost their lives in the line of duty last July.
As part of the Obama Administration's commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice will lead nearly 400 events in support of community policing efforts around the country. To further that effort, President Obama will designate the week of Oct. 2-8, 2016, as Community Policing Week. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
For more information on National Community Policing Week or the Community Policing Tour, please visit https://www.justice.gov/ag/community-policing-tour.
21st CENTURY COMMUNITY POLICING YOUTH FORUM ON FACEBOOK LIVE
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Director Ron Davis of the Office of Community Oriented Policing Services
Jason Witten of the Dallas Cowboys
Barry Church of the Dallas Cowboys
WHEN: MONDAY, OCTOBER 3, 2016
2:00 p.m. CDT
OPEN PRESS (Media Gather: 1:30 p.m. CDT//Final Access: 2:00 p.m. CDT)
DOJ FACEBOOK LIVE
WHERE: Sunset High School
2120 W. Jefferson Boulevard
Dallas, TX 75208
NATIONAL NIGHT OUT EVENT WITH THE DALLAS POLICE DEPARTMENT
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Mayor of Dallas Mike Rawlings
Director Ron Davis of the Office of Community Oriented Policing Services
WHEN: TUESDAY, OCTOBER 4, 2016
5:30 p.m. EDT
OPEN PRESS
WHERE: University of North Texas at Dallas
7300 University Hills Boulevard
Dallas, TX 75241
MEDIA AVAILABILITY
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Director Ron Davis of the Office of Community Oriented Policing Services
WHEN: TUESDAY, OCTOBER 4, 2016
6:00 p.m. EDT
OPEN PRESS
WHERE: University of North Texas at Dallas
7300 University Hills Boulevard
Dallas, TX 75241
NOTE: Time and location are subject to change for the events listed above. An updated advisory with final times for each event will be issued at the beginning of next week. Media inquiries regarding logistics should be directed to [email protected] and [email protected].
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Friday 30 September 2016
Virginia Man Sentenced to 20 Years to Life in Prison for 1984 Slaying of Woman in Southeast WashingtonRead the Press Release
WASHINGTON – Joe Anthony Barber, 58, formerly of Woodbridge, Va., was sentenced today to a term of 20 years to life in prison for the 1984 slaying of a woman at her apartment in Southeast Washington, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Barber was found guilty by a jury in June 2016 of first-degree murder while armed, following a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Robert E. Morin.
According to the government’s evidence, on Jan. 1, 1984, the body of the victim, Rachel Cox, 43, was found at 6:30 a.m., when her daughter came home to their apartment in the 3300 block of Sixth Street SE. Ms. Cox was found on the floor, partially covered with a comforter, with her hands tied behind her back, her underwear at her feet, and 12 stab wounds to her torso, which injured her liver and heart. The victim’s daughter had last seen her mother on New Year’s Eve just before midnight. Ms. Cox planned to stay in her home, watching TV, dressed for bed.
Vaginal swabs taken from the body during the 1984 autopsy were submitted for DNA analysis in April 2013. Semen was found on the swabs and a profile was developed. Barber was identified as a suspect through the Combined DNA Index System (CODIS), a web of state and national databases containing DNA profiles from convicted offenders and crime scenes that is used as an investigative tool.
Barber’s profile was in the CODIS system as a result of a 1984 conviction in an unrelated rape case in which the victim was 10 years old; in that case, he pled guilty to rape and indecent acts with a minor for an attack that took place on Oct. 11, 1984. He served nearly 20 years in prison before his release in 2004.
Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation, and Paralegal Specialist Benjamin Kagan-Guthrie, of the U.S. Attorney’s Office, initially identified this murder case for further investigation and DNA analysis. That investigation of Ms. Cox’s murder led to Barber’s arrest in November 2013, and he has been in custody since that time.
In announcing the sentence, U.S. Attorney Phillips and Interim Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department. They also acknowledged the efforts of those who also worked on the case from the U.S. Attorney’s Office, including Litigation Technology Specialists Leif Hickling and Paul Howell; Paralegal Specialists Alesha Matthews Yette, Debra Joyner, and Stephanie Siegerist; Victim/Witness Advocates Jennifer Clark and Karen Giannakoulias, and Victim/Witness Services Coordinators Tonya Jones and Katina Adams-Washington. Finally, they commended the work of Assistant U.S. Attorney S. Vinét Bryant, who investigated, indicted and prosecuted the matter.
Virginia Man Known as “the Flip Flop Bandit” Indicted for Bank RobberyRead the Press Release
Savannah, GA: Leonard Riddle 46, of Bumpass, Virginia, was indicted this month by a federal grand jury sitting in Savannah on charges related to the July 29, 2016 robbery of the First Chatham Bank in Pooler, Georgia. Known as “The “Flip Flop Bandit,” Riddle was wanted by the FBI at the time of his arrest for a series of bank robberies and attempted bank robberies in North Carolina, Pennsylvania, Maryland, Tennessee, Arkansas, Oklahoma and Florida. Riddle is alleged to have carried out the various robberies with either a BB gun or a fake explosive device. Riddle’s alleged robbery spree ended on July 29, however, when was apprehended by the Pooler Police Department following a high-speed vehicle chase.
Riddle is charged with one count of bank robbery in the Southern District of Georgia, and also has federal bank robbery indictments pending in the Western District of Oklahoma and the Eastern District of Tennessee.
Riddle attended an arraignment on September 28, 2016, where he entered a not guilty plea and was detained without bond. If convicted of the sole count in the indictment, Riddle faces a maximum sentence of 20 years in prison. U.S. Attorney Ed Tarver emphasized that an indictment is only an accusation and is not evidence of guilt. The defendant is entitled to a fair trial, during which it will be the Government’s burden to prove guilt beyond a reasonable doubt.
The investigation of this case was led by the FBI with assistance from the Pooler Police Department. Assistant United States Attorney Jennifer G. Solari is prosecuting the case on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Versailles Man Sentenced to 20 Years for Distributing Fentanyl That Caused Overdose DeathRead the Press Release
The defendant sold fentanyl that was disguised as a pain pill
LEXINGTON, Ky. — A Lexington, Ky., man, who previously admitted to distributing fentanyl, that was disguised as a pain pill and caused the overdose death of a Woodford County woman, has been sentenced to 20 years in federal prison.
On Thursday, U.S. District Judge Karen Caldwell sentenced Gill Dewayne Garrett for distribution of a controlled substance resulting in death. Under federal law, anyone convicted of this offense faces a minimum of 20 years and a maximum of life in prison, without parole. Garrett’s drug supplier and co-defendant, Luis Aguierre-Jerardo has entered into a binding plea agreement with the federal government that will result in a sentence of at least 28 years and no more than 33 years. He will be sentenced on December 8, 2016.
“Mr. Garrett sold the fentanyl, a deadly drug, that killed a woman who was seeking a pain pill,” said Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky. “He exploited her addiction in order to make a few dollars without regard for the tragic consequences of his criminal behavior. His sentence is entirely appropriate and demonstrates the powerful impact of our Overdose Prosecution Initiative which brings together state, local and federal authorities to prosecute professional drug dealers who cause death and serious injury.”
Garrett, pleaded guilty to the offense in April and admitted that, in July 2015, Aguirre-Jerardo had provided him with a counterfeit pain pill. The pill looked like Oxycodone, but contained fentanyl, and Garrett distributed it to Jolene Bowman knowing it was fentanyl. Bowman consumed the pill, and subsequently died of an overdose. Illicitly manufactured fentanyl is increasingly the cause of overdose deaths in Kentucky.
Versailles Police used Ms. Bowman’s cell phone to trace the source of the fentanyl pill to Garrett and later found that Aguirre-Jerardo had supplied Garrett with the fentanyl pill.
An autopsy confirmed that the cause of death was a drug overdose and toxicologists concluded that had it not been for the fentanyl in the pill, Bowman would not have died.
U.S. Attorney Harvey, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, and James Fugate, Chief of Police, Versailles Police Department, jointly made the announcement.
The investigation was conducted by the Versailles Police and the DEA. Assistant U.S. Attorney Todd Bradbury prosecuted this case on behalf of the federal government.