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Wednesday 28 September 2016
Wagoner Man Pleads Guilty to Multiple Firearms ChargesRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that WILLIAM HENRY CRAIG, age 26, of Wagoner, Oklahoma, pled guilty to three counts: POSSESSION OF AN UNREGISTERED DESTRUCTIVE DEVICE and POSSESSION OF AN UNREGISTERED FIREARM, both in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by not more than 10 years imprisonment, up to a $10,000 fine or both and POSSESSION OF FIREARM WITH AN OBLITERATED SERIAL NUMBER, in violation of Title 18, United States Code, Sections 922(k) and 924(a)(1)(B), punishable by not more than 5 years imprisonment, up to a $250,000 fine or both.
The Indictment alleged that on or about April 5, 2016, within the Eastern District of Oklahoma, the defendant, WILLIAM HENRY CRAIG, did knowingly possess a destructive device, known as a cricket device, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
It further alleged that on or about April 5, 2016, within the Eastern District of Oklahoma, the defendant did knowingly possess a CGC (Companhia Brasileira de Cartuchos), Model 151, 20 gauge shotgun, with a barrel of less than 18 inches in length and an overall length of less than 26 inches, not registered to him in the National Firearms Registration Transfer Record and the manufacturer’s serial number had been removed, altered and obliterated.
Charges arose from an investigation by the Wagoner Police Department, the Oklahoma Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshals Service, pending sentencing.
Assistant United States Attorney Kristin Harrington represented the United States.
Vibra Healthcare to Pay $32.7 Million to Resolve Claims for Medically Unnecessary ServicesRead the Press Release
Vibra Healthcare LLC (Vibra), a national hospital chain headquartered in Mechanicsburg, Pennsylvania, has agreed to $32.7 million, plus interest, to resolve claims that Vibra violated the False Claims Act by billing Medicare for medically unnecessary services, the Department of Justice announced today.
“Medicare beneficiaries are entitled to receive care that is determined by their clinical needs and not the financial interests of healthcare providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions cause false claims for medically unnecessary services to be submitted.”
Vibra operates approximately 36 freestanding long term care hospitals (LTCHs) and inpatient rehabilitation facilities (IRFs) in 18 states. LTCHs provide inpatient hospital services for patients whose medically complex conditions require long hospital stays and programs of care. IRFs are intended for patients needing rehabilitative services that require hospital-level care. The government alleged that between 2006 and 2013, Vibra admitted numerous patients to five of its LTCHs and to one of its IRFs who did not demonstrate signs or symptoms that would qualify them for admission. Moreover, Vibra allegedly extended the stays of its LTCH patients without regard to medical necessity, qualification and/or quality of care. In some instances, Vibra allegedly ignored the recommendations of its own clinicians, who deemed these patients ready for discharge.
“Pursuing and recovering fraudulent billing for unnecessary services is a priority of my office,” stated U.S. Attorney John E. Kuhn Jr. for the Western District of Kentucky. “This significant case against Vibra Healthcare and today’s settlement agreement is but one example of the vigorous work against healthcare fraud taking place in the Western District of Kentucky and across the nation.”
As part of the settlement, Vibra also agreed to enter into a chain-wide corporate integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.
“Medical necessity is fundamental if health providers wish to claim taxpayer funds for medical care,” said Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “OIG is committed to protecting precious Medicare dollars and ensuring that beneficiaries receive quality, necessary long term care.”
Part of the allegations resolved by this settlement were originally filed under the qui tam or whistleblower provisions of the False Claims Act by Sylvia Daniel, a former health information coder at Vibra Hospital of Southeastern Michigan. Daniel filed her suit in the Southern District of Texas, where one of Vibra’s LTCHs was located. Under the False Claims Act, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Daniel will receive at least $4 million.
This settlement illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.7 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal healthcare programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Southern District of Texas in Houston and for the Western District of Kentucky; and the HHS-OIG. The qui tam case is captioned United States ex rel. Daniel v. Vibra Healthcare, LLC, Civil Action No. 10-5099 (S.D. Tex.).
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Van Buren, Arkansas Man Sentenced to 15 Months, $300 Restitution for Possession of Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that MARK BRANDON WEEKS, age 41, of Van Buren, Arkansas, was sentenced to 15 months of imprisonment and 3 years of supervised release for POSSESSION OF A COUNTERFEIT OBLIGATION, in violation of Title 18, United States Code, Section 472 and 2. The defendant was also ordered to pay restitution in the amount of $300.
The charges are a result of an investigation by the Muskogee Police Department, the Sallisaw Police Department and the United States Secret Service. The defendant was indicted in January, 2016 and pled guilty in April, 2016.
The Indictment alleged that on or about August 10, 2015, in the Eastern District of Oklahoma, the defendant, MARK BRANDON WEEKS, did with intent to defraud, possess counterfeit obligations of the United States, that is: Seventy (70) counterfeit $100 Federal Reserve Notes, which he knew to be falsely made, forged and counterfeited.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Timothy Hammer represented the United States.
Vibra Healthcare to Pay $32.7 Million to Resolve Claims for Medically Unnecessary ServicesRead the Press Release
WASHINGTON - Vibra Healthcare LLC (Vibra), a national hospital chain headquartered in Mechanicsburg, Pennsylvania, has agreed to $32.7 million, plus interest, to resolve claims that Vibra violated the False Claims Act by billing Medicare for medically unnecessary services, the Department of Justice announced today.
“Medicare beneficiaries are entitled to receive care that is determined by their clinical needs and not the financial interests of healthcare providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions cause false claims for medically unnecessary services to be submitted.”
Vibra operates approximately 36 freestanding long term care hospitals (LTCHs) and inpatient rehabilitation facilities (IRFs) in 18 states. LTCHs provide inpatient hospital services for patients whose medically complex conditions require long hospital stays and programs of care. IRFs are intended for patients needing rehabilitative services that require hospital-level care. The government alleged that between 2006 and 2013, Vibra admitted numerous patients to five of its LTCHs and to one of its IRFs who did not demonstrate signs or symptoms that would qualify them for admission. Moreover, Vibra allegedly extended the stays of its LTCH patients without regard to medical necessity, qualification and/or quality of care. In some instances, Vibra allegedly ignored the recommendations of its own clinicians, who deemed these patients ready for discharge.
“Pursuing and recovering fraudulent billing for unnecessary services is a priority of my office,” stated U.S. Attorney John E. Kuhn Jr. for the Western District of Kentucky. “This significant case against Vibra Healthcare and today’s settlement agreement is but one example of the vigorous work against healthcare fraud taking place in the Western District of Kentucky and across the nation.”
As part of the settlement, Vibra also agreed to enter into a chain-wide corporate integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.
“Medical necessity is fundamental if health providers wish to claim taxpayer funds for medical care,” said Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “OIG is committed to protecting precious Medicare dollars and ensuring that beneficiaries receive quality, necessary long term care.”
Part of the allegations resolved by this settlement were originally filed under the qui tam or whistleblower provisions of the False Claims Act by Sylvia Daniel, a former health information coder at Vibra Hospital of Southeastern Michigan. Daniel filed her suit in the Southern District of Texas, where one of Vibra’s LTCHs was located. Under the False Claims Act, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Daniel will receive at least $4 million.
This settlement illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.7 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal healthcare programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Southern District of Texas in Houston and for the Western District of Kentucky; and the HHS-OIG. The qui tam case is captioned United States ex rel. Daniel v. Vibra Healthcare, LLC, Civil Action No. 10-5099 (S.D. Tex.).
The claims resolved by the settlements are allegations only and there has been no determination of liability.
United States Settles Claim Against Summer Camp That Revoked Admission for Young Camper with Insulin-Dependent DiabetesRead the Press Release
Robert L. Capers, United States Attorney for the Eastern District of New York, announced today a settlement with Camp Treetops, a residential summer camp in Lake Placid, New York, under title III of the Americans With Disabilities Act, 42 U.S.C. §§ 12181- 12189 (ADA). Title III prohibits discrimination against people with disabilities in places of public accommodation, including summer camps. Individuals with insulin-dependent diabetes fall within the protection of the ADA.
The settlement resolves claims made by Wenda Celidon, a resident of Valley Stream, New York, that Camp Treetops revoked its acceptance of her minor daughter, L.F., into its summer camp program and revoked a scholarship it had granted L.F. because she had insulin-dependent diabetes. Ms. Celidon alleged that Camp Treetops initially accepted L.F. into the summer program, but one day before she was scheduled to leave for Camp Treetops, the Camp’s director revoked her admission and scholarship due to her insulin-dependent diabetes.
Under the settlement, Camp Treetops will pay $13,500 to L.F., and adopt a written policy that prohibits discrimination on the basis of disability and creates a process for evaluating requests for reasonable modifications. The Camp will also train its employees and staff regarding the disability discrimination provisions of federal, state, and local civil rights laws, including title III of the ADA.
Under the terms of the settlement, Camp Treetops denies violating L.F.’s rights under the ADA.
“Discrimination against individuals, especially children with disabilities, is unacceptable,” stated United States Attorney Capers. “The ADA requires that such children be given an equal opportunity to attend summer camps, an opportunity that was taken away from the child in this case.”
The matter was handled by Assistant U.S. Attorney Rukhsanah Singh.
United States Attorney Announces National Community Policing Week “Justice Forum” at Jackson State UniversityRead the Press Release
Jackson, Miss. —The United States Attorney’s Office for the Southern District of Mississippi, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), United States Marshals Service (USMS), Hinds County Sheriff’s Department (HCSO), Jackson Police Department (JPD), Jackson State University National Pan Hellenic Council (NPHC), along with Jackson State University Department of Criminal Justice, would like to invite the community and local news media to attend the National Community Policing Week "Justice Forum" entitled: "Beyond the Badge: Breaking Barriers and Building Bridges."
The United States Department of Justice has designated October 3rd-7th as National Community Policing Week. In support of this initiative, the United States Attorney’s Office for the Southern District of Mississippi has partnered with local and federal law enforcement agencies and Jackson State University to host a two-part event focusing on Law Enforcement and Community relations.
The community is strongly encouraged to attend this event. Only through these efforts can we gain mutual understanding between law enforcement and the community that will help to make our neighborhoods safer, stronger, and more united. The event is free and open to the public.
United States Attorney Gregory K. Davis, Jackson Police Chief Lee Vance, and Hinds County Sheriff Victor Mason, along with representatives from ATF, DEA, FBI, USMS and JSU will participate.
WHO: United States Attorney’s Office, ATF, DEA, FBI, USMS, JPD, HCSO, JSU NPHC
and JSU Dept. of Criminal Justice
WHAT: National Community Policing Week Justice Forum
WHEN: Monday, October 3, 2016 - 5:00 – 6:30 p.m.
WHERE: Jackson State University Student Center Ballroom - 3rd Floor
U.S. Attorney Files Civil Rights Suit Against Westchester Developer and Obtains Injunction Requiring Complexes Under Construction to Be Fully Accessible to People with DisabilitiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed a federal civil rights lawsuit against GINSBURG DEVELOPMENT COMPANIES (“GINSBURG DEVELOPMENT”) to require it to remedy conditions at two properties in Rockland County to make them accessible to people with disabilities and to ensure that four properties under construction by GINSBURG DEVELOPMENT in Westchester County will be accessible. In connection with that lawsuit, the United States has obtained a court-ordered preliminary injunction, to which GINSBURG DEVELOPMENT consented. The injunction, which was approved and entered today by U.S. District Judge Nelson S. Román, requires GINSBURG DEVELOPMENT to make four Westchester rental complexes currently under development accessible. The lawsuit will continue with respect to the two remaining Rockland County properties, which have already been fully constructed.
U.S. Attorney Preet Bharara said: “With today’s lawsuit and injunction, we seek to ensure that properties constructed by Ginsburg Development are accessible to those with disabilities, as the law requires. Developers in this District should know that this Office will use all available tools to enforce the FHA’s basic mandate that developers construct residential buildings accessible to people with disabilities.”
The Fair Housing Act’s (“FHA”) accessible design and construction provisions require multifamily housing complexes constructed after January 1993 to have basic features accessible to persons with disabilities. According to the allegations in the Complaint, GINSBURG DEVELOPMENT recently designed and constructed rental complexes that have a number of inaccessible features, including excessively high thresholds interfering with accessible routes into and within individual units, insufficient spaces in bathrooms and kitchens for people in wheelchairs, and doors in both individual units and common areas that are not wide enough to accommodate people in wheelchairs.
The Complaint filed by the United States seeks to require GINSBURG DEVELOPMENT to make retrofits at two completed complexes known as Parkside and Riverside, in Haverstraw, New York, to modify its policies, procedures, and training, and to pay a civil penalty. The lawsuit further seeks compensation for persons who have been victims of the inaccessible conditions at Parkside and Riverside. As explained in a letter filed with the Court on September 26, GINSBURG DEVELOPMENT is in settlement negotiations with the United States to resolve these claims against the two properties that have already been constructed.
The preliminary injunction, entered on September 28, 2016, requires GINSBURG DEVELOPMENT to retain an experienced accessibility consultant as the FHA Reviewer for the four Westchester developments that are still under construction – Saw Mill Lofts, Harbor Square Crossings, River Tides, and 1177 Warburton Avenue. Pursuant to the injunction, GINSBURG DEVELOPMENT must have all its designs analyzed by the FHA Reviewer for accessibility, arrange for the FHA Reviewer to conduct site visits to identify inaccessible conditions resulting from construction decisions, and allow the United States to monitor its development efforts.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Li Yu, Natasha Teleanu, Jessica Jean Hu, and Jacob Lillywhite are in charge of the case.
Two Return Preparers Charged with Filing False Tax Returns for their ClientsRead the Press Release
Clients were promised large tax refunds from a fictitious government program
Two return preparers are charged with filing false tax returns for their clients by promising large federal tax refunds through a fictitious United States government program called the “Black Investment Tax.''
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 Timothy Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), made the announcement.
Shirley Ann Womble and Tiffany Dawn Williams are each charged with one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286. Womble and Williams are also charged with eight counts and two counts, respectively, of filing false claims with the IRS, in violation of Title 18, United States Code, Section 287. If convicted, the defendants face a maximum statutory sentence of ten years’ imprisonment for the conspiracy charge, and a maximum statutory sentence of five years’ imprisonment for each of the false claims charges.
According to the indictment, Womble and Williams worked as independent tax preparers and solicited clients for their tax preparation business by promising large federal tax refunds through a fictitious United States government program called the “Black Investment Tax'' that provided reparations for slavery to African Americans, and/or other government grants. The defendants knew that a government program called the “Black Investment Tax'' did not actually exist.
Womble and Williams prepared and filed false federal income tax returns with false IRS forms for their clients claiming a $40,000 tax credit from the IRS. None of the clients actually provided the defendants with any documentation or other information to support claiming this tax credit based on any investment in the “Black Investment Tax.” The clients who received a refund from the IRS paid Womble and/or Williams approximately $10,000 as a fee for their services.
We encourage anyone who was solicited to receive a refund related to the fictitious “Black Investment Tax,'' that allegedly provided reparations for slavery to African Americans, to contact IRS-CI at (305) 982-5151.
Mr. Ferrer commended the investigative efforts of IRS-CI and TIGTA. The case is being prosecuted by Assistant U.S. Attorney Joseph M. Schuster.
An indictment is merely an allegation and every defendant is presumed innocent unless and until proven guilty in a court of law.
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
Two Miami Gardens Residents Charged with Armed RobberiesRead the Press Release
Two male Miami Gardens residents have been arrested and charged by criminal complaint with conspiracy to commit Hobbs Act robberies, Hobbs Act robberies, and brandishing firearms in furtherance of crimes of violence.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), made the announcement.
Javon Antwan Lee and Kimani Mario Brown, both 18, of Miami Gardens, Florida, were charged by complaint with engaging in a conspiracy to lure users of internet-based classified advertisement services to an abandoned house and then rob the victims at gunpoint.
According to court records, Lee and Brown, together with other unknown individuals, engaged in multiple armed robberies beginning as early as February of 2016 and continuing through June of 2016, by posting advertisements on internet classified services for the sale of smartphones or other electronic devices. Victims would arrange to meet with the seller in Miami Gardens to purchase the advertised item only to be attacked at gunpoint by three to four men at a time.
The United States Attorney’s Office and the Federal Bureau of Investigation caution all users of internet-based classified advertisement services to be cautious when purchasing items from individuals they do not know. If members of the community have been victimized in a similar scheme, or have information related to the crimes charged in this complaint, they are encouraged to contact the FBI.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami Gardens Police Department. The case is being prosecuted by Assistant U.S. Attorney Benjamin Widlanski.
A complaint is only an accusation and a defendant is presumed innocent until proven guilty.
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.
Twelve people indicted for their roles in Cleveland cocaine conspiracyRead the Press Release
A 30-count indictment was unsealed today, charging a dozen people with conspiring to distribute cocaine throughout Greater Cleveland, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Indicted are: Darrien Smith, 43, of South Euclid; Brandon McKinnie, aka Fat B, 31, of University Heights; Joseph Martin, aka Joe Caddy, 31, of Cleveland; Tristan Ingram, 28, of Parma; Robert Serina, aka Bobby Champagne, 36, of Cleveland; Wesley Ely, 39, of Parma; Christine Hoenie, aka Cali Miles, 34, of Cleveland; Ben May, 23, of Noblesville, Ind.; Luis Cabrera, 27, of Cleveland; Francisco Sanchez, 34, of Brook Park; Kenneth Paden, aka Chop, 38, of Cleveland; and Clifton Coleman, 55, of South Euclid.
Smith obtained large amounts of cocaine and sold it to McKinnie, who in turn sold it to Martin, who sold the cocaine to Ingram. Ely, Cabrera, Sanchez and Paden purchased cocaine from Ingram for distribution. Hoenie arranged cocaine sales for Serina, according to the indictment.
The conspiracy took place between 2013 and 2014, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Margaret Sweeney and Michelle Baeppler following an investigation by the Northern Ohio Law Enforcement Task Force.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Town of Oyster Bay Commissioner Sentenced to 27 Months in Prison for Tax EvasionRead the Press Release
Earlier today in Central Islip, New York, Frederick Ippolito, former Town of Oyster Bay Commissioner of Planning and Development, was sentenced to 27 months’ imprisonment, three years of supervised release, and $548,487.00 in restitution, following his guilty plea on January 26, 2016, to tax evasion. The sentencing proceeding was held before U.S. District Judge Leonard D. Wexler.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS).
In announcing the sentence, United States Attorney Capers stated, “Today’s sentence reinforces that no one is immune from the laws of the United States. The defendant’s position as an influential official within a local municipality did not exempt him from paying his fair share of taxes, just like any other citizen. He has now been held accountable for his actions.” Mr. Capers extended his grateful appreciation to IRS-Criminal Investigation, the agency responsible for leading the government’s investigation.
From 2008 to 2013, Ippolito received over $2 million in consulting fees from Carlo Lizza & Sons Paving, Inc., a company located in Old Bethpage, New York, as well as from a principal of that company. Ippolito evaded taxes on that income by willfully failing to report it on his personal tax returns or the returns of entities he controlled. Ippolito is the President of CAI Associates, LTD, a consulting and snow removal business, and a former officer of CAI Restaurant, Inc., d/b/a Christiano’s, in Syosset, New York.
From 2009 through January 2016, Ippolito served as the Commissioner of Planning and Development for the Town of Oyster Bay (TOB), a municipality in Nassau County, New York. The TOB’s Department of Planning and Development was responsible for the enforcement of all codes, rules, and ordinances pertaining to building and zoning, and supervised the issuance of permits for construction within the TOB. As Commissioner, Ippolito oversaw the TOB Department of Planning and Development’s several divisions, which included, among others, the Building Division, the Code Compliance Bureau, the Division of Administration of Board of Appeals, and the Planning Division. Ippolito’s resignation as a Commissioner was accepted by the TOB following his guilty plea.
The government’s case is being handled by the Office’s Long Island Criminal Section. Assistant United States Attorneys Catherine M. Mirabile and Raymond A. Tierney are in charge of the prosecution.
The Defendant:
FREDERICK IPPOLITO
Age: 77
Syosset, New YorkE.D.N.Y. Docket No. 15-CR-129 (LDW)
Three Individuals Sentenced to Prison in Marriage Fraud ConspiracyRead the Press Release
On September 26, 2016, three individuals were sentenced to prison for their participation in a long-running marriage fraud conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
On July 19, 2016, a Miami federal jury convicted Odalys Marrero, 51, of Kendall, Rolando Mulet, 62, of Kendall and Javier Manejias, 51, of Antioch, Tennessee, of conspiring to defraud the United States. Marrero and Mulet were also convicted of additional counts of unlawfully encouraging an alien to reside in the United States. On September 26, 2016, United States District Court Judge Joan A. Lenard sentenced both Marrero and Mulet above the guideline range, to 48 months’ imprisonment, to be followed by 3 years of supervised release. Judge Lenard sentenced Manejias to 8 months’ imprisonment, to be followed by 1 year of supervised release.
“It is a federal criminal offense to enter into a marriage for the purpose of evading our nation’s immigration rules and regulations,” stated U.S. Attorney Ferrer. “In committing this act, perpetrators exploit the lawful immigration status that the United States has granted. Such conduct thwarts the very objectives of our immigration laws and services, which are predicated on the honesty of the people who apply for immigration benefits. The U.S. Attorney’s Office is grateful for the ongoing efforts of ICE-HSI and USCIS to identify for prosecution those individuals who perpetrate this and other types of immigration fraud.”
“The defendants in this investigation defrauded the government and undermined the integrity of our nation’s legal immigration system” said Mark Selby, special agent in charge of HSI Miami. “These arrests by HSI should send a clear message that we will continue to target those who try to obtain immigration benefits fraudulently.”
“Marriage fraud is a bold violation of our nation’s immigration laws,” said Acting District Director Nicholas Colucci of the USCIS Miami District. “We thank our partners in the U.S. Attorney’s Office and ICE for the opportunity to work together to ensure that these conspirators were brought to justice.”
At trial, the evidence showed that from December 2009 and July 2014, organizers Marrero and Mulet recruited Cuban citizens to enter into fraudulent marriages with undocumented aliens for the purpose of evading the immigration laws of the United States. Manejias was one such Cuban citizen, who, in exchange for receipt of approximately $10,000 cash, participated in the conspiracy by agreeing with Marrero and Mulet to marry a Venezuelan citizen in order to secure her lawful permanent residency in the United States.
The evidence at trial also established that Marrero and Mulet charged these aliens tens of thousands of dollars in cash to arrange the fraudulent marriages, notarize marriage licenses, complete the necessary immigration paperwork, and prepare the co-conspirators for their marriage interviews with United States Citizenship and Immigration Services (“USCIS”). This preparation included Marrero and Mulet directing the couples to conduct a falsified wedding ceremony and submit supporting documents such as joint utility bills and bank statements to make it appear that they couple lived together, though in fact they did not. As part of the scheme, these contrived photos and documents were provided to USCIS.
Mr. Ferrer commended the investigative efforts of ICE-HSI. Mr. Ferrer also recognized USCIS for the significant and valuable support the agency provided the investigation. The case was prosecuted by Assistant United States Attorney Anne P. McNamara and Special Assistant United States Attorney Michele Vigilance.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Columbia Area Residents Sentenced in FHA Mortgage Fraud ConspiracyRead the Press Release
Contact Person: John Potterfield (803) 929-3000
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Robert J. Sellers Jr., age 62, of Columbia, Marlyn Hammett, age 68 of West Columbia, and Amy Wilson, age 51 of Swansea, were sentenced yesterday in federal court in Columbia, for conspiracy to commit loan application fraud, a violation of Title 18, United States Code, Section 371. United States District Judge Margaret B. Seymour of Columbia sentenced Sellers to 12 months and one day imprisonment, 3 years supervised release and ordered him to pay $702,314.47 in restitution to the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA). Hammett was sentenced to 6 months imprisonment, 3 years supervised release, and ordered to pay $702,314.47 in restitution to HUD/FHA. Wilson was sentenced to 6 months imprisonment, 3 years supervised release and ordered to pay $144,640 in restitution to HUD/FHA.
Evidence presented at their change of plea hearings established that Sellers Jr., Hammett and Wilson conspired to defraud lending institutions and HUD/FHA by falsifying documents of FHA loan applicants and fraudulently providing the FHA required 3.5% down payment funds for buyers of their properties. The conspirators concealed the origin of the down payment funds and caused false statements on loan applications and other documents to be filed, resulting in dozens of foreclosures.
The case was investigated by agents of The U.S. Department of Housing and Urban Development, Office of Inspector General and the United States Postal Inspection Service. Assistant United States Attorney John Potterfield of the Columbia office prosecuted the case.#####
Tahlequah Man Pleads Guilty to Possession of Unregistered Destructive DeviceRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that JACOB AUSTIN DUNCAN, age 26, of Tahlequah, Oklahoma, pled guilty to POSSESSION OF UNREGISTERED FIREARM (DESTRUCTIVE DEVICE), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by not more than 10 years imprisonment, up to a $10,000 fine or both.
The Indictment alleged that on or about June 12, 2016, within the Eastern District of Oklahoma, the defendant, JACOB AUSTIN DUNCAN, did knowingly possess a destructive device, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
Charges arose from an investigation by the Cherokee County Sheriff’s Office, the Oklahoma High Patrol, the Oklahoma State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Dean Burris represented the United States.
Syrian Man Affiliated with Syrian Electronic Army Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – Peter Romar, 37, a Syrian national affiliated with the Syrian Electronic Army (SEA), pleaded guilty today to felony charges of conspiring to receive extortion proceeds and conspiring to unlawfully access computers. Romar was previously extradited from Germany on request of the United States.
“Cybercriminals cannot hide from justice,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “No matter where they are in the world, the United States will vigorously pursue those who commit crimes against U.S. citizens or companies and hold them accountable for their actions.”
“Today’s guilty plea is by the latest international offender who believed that he could operate from abroad, behind the perceived veil of anonymity offered by the Internet, and use computers to threaten the security of our citizens and their property,” said Assistant Attorney General Carlin. “It shows that the Department of Justice and the FBI stand behind their pledge to hold accountable foreign actors who assist in the hacking of U.S. victims.”
“Today, Peter Romar pleaded guilty for his role in conspiring to commit computer intrusions and extort victims on behalf of the Syrian Electronic Army,” said Assistant Director in Charge Paul Abbate. “This case demonstrates the reach and capabilities of the FBI to identify and unmask perpetrators in cyber space and hold them accountable under the law.”
According to the statement of facts filed with the plea agreement, beginning in approximately 2011, co-defendant Firas Dardar, known online as “The Shadow,” and other members of the SEA engaged in a multi-year criminal conspiracy to conduct computer intrusions against perceived detractors of Syrian President Bashar al-Assad, including media entities, the U.S. government, and foreign governments. Dardar remains at large. Beginning in approximately 2013, Romar and Dardar engaged in an extortion scheme that involved hacking online businesses in the United States and elsewhere for personal profit. Court documents further allege that the conspiracy gained unauthorized access to the victims’ computers and then threatened to damage computers, delete data, or sell stolen data unless the victims provided extortion payments to Dardar and/or Romar. If a victim could not make extortion payments to the conspiracy’s Syrian bank accounts due to sanctions targeting Syria, Romar acted as an intermediary in Germany to evade those sanctions.
Romar faces a maximum penalty of five years in prison sentenced on October 21. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; James Trainor, Assistant Director of the FBI’s Cyber Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea before U.S. District Judge Claude M. Hilton.
The case was prosecuted by Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu, Special Assistant U.S. Attorney Brandon L. Van Grack and Trial Attorneys Scott McCulloch and Nathan Charles of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance.
The case was investigated by the FBI’s Washington Field Office, with assistance from the NASA Office of the Inspector General, Department of State Bureau of Diplomatic Security, and other law enforcement agencies.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-00140.
Syrian Electronic Army Hacker Pleads GuiltyRead the Press Release
Peter Romar, 37, a Syrian national affiliated with the Syrian Electronic Army (SEA), pleaded guilty today to felony charges of conspiring to receive extortion proceeds and conspiring to unlawfully access computers. Romar was previously extradited from Germany on request of the U.S.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Assistant Director James Trainor of the FBI’s Cyber Division and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, made the announcement after the sentencing by U.S. District Judge Claude M. Hilton.
“Today’s guilty plea is by the latest international offender who believed that he could operate from abroad, behind the perceived veil of anonymity offered by the Internet, and use computers to threaten the security of our citizens and their property,” said Assistant Attorney General Carlin. “It shows that the Department of Justice and the FBI stand behind their pledge to hold accountable foreign actors who assist in the hacking of U.S. victims.”
According to the statement of facts filed with the plea agreement, beginning in approximately 2011, co-defendant Firas Dardar, known online as “The Shadow,” and other members of the SEA engaged in a multi-year criminal conspiracy to conduct computer intrusions against perceived detractors of Syrian President Bashar al-Assad, including media entities, the U.S. government and foreign governments. Dardar remains at large.
Beginning in approximately 2013, Romar and Dardar engaged in an extortion scheme that involved hacking online businesses in the U.S. and elsewhere for personal profit. Court documents further allege that the conspiracy gained unauthorized access to the victims’ computers and then threatened to damage computers, delete data, or sell stolen data unless the victims provided extortion payments to Dardar and/or Romar. If a victim could not make extortion payments to the conspiracy’s Syrian bank accounts due to sanctions targeting Syria, Romar acted as an intermediary in Germany to evade those sanctions.
“Cybercriminals cannot hide from justice,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “No matter where they are in the world, the United States will vigorously pursue those who commit crimes against U.S. citizens and hold them accountable for their actions.”
Romar faces a maximum penalty of five years in prison and will be sentenced on October 21. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI’s Washington Field Office, with assistance from the NASA Office of the Inspector General, the Department of State Bureau of Diplomatic Security and other law enforcement agencies.
The case was prosecuted by Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu and Special Assistant U.S. Attorney Brandon L. Van Grack of the Eastern District of Virginia, and Trial Attorneys Scott McCulloch and Nathan Charles of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance.
Springfield Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Greene, Polk, Christian, Jasper, Laclede and Webster counties.
Jeffrey M. Gardner, 34, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
On April 14, 2016, Gardner pleaded guilty to participating in a conspiracy to distribute methamphetamine. Gardner admitted that he sold 44 grams of methamphetamine to a confidential law enforcement source for $1,100 on Dec. 20, 2013. Gardner also admitted that he sold 57 grams of methamphetamine to the confidential source for $2,350 on Jan. 9, 2014.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, began investigating a large-scale methamphetamine distribution network in southwest Missouri involving several sources of supply both inside and outside of the state. Co-defendant Kenna Harmon, 37, of Republic, Mo., has pleaded guilty to being the leader of the drug-trafficking conspiracy along with her husband, Daniel Harmon. Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.
In total, the Harmon drug-trafficking organization was responsible for the distribution of over 45 kilograms of methamphetamine from June 1, 2013, through Nov. 29, 2014. The Harmons obtained pound amounts of methamphetamine from sources in Kansas City and St. Louis, Mo., and in Oklahoma for distribution in the Springfield, Mo., area.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Springfield Man Indicted for Heroin, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury today for distributing heroin and illegally possessing a firearm.
Michael Sutton, 33, of Springfield, was charged in a three-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Sutton distributed heroin on April 19, 2016, and again on May 26, 2016.
Sutton is also charged with being a felon in possession of a firearm. According to the indictment, Sutton was in possession of a Colt Night Defender .45-caliber handgun on Aug. 19, 2016. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Jody Larison. It was investigated by the Springfield, Mo., Police Department, the Drug Enforcement Administration, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Springfield Man Indicted for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury today for receiving and distributing child pornography.
Michael V. Lucas, 31, of Springfield, was charged in an indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Lucas on Sept. 21, 2016. Lucas remains in federal custody without bond.
The federal indictment alleges that Lucas received and distributed child pornography from Jan. 1, 2016, to Sept. 22, 2016.
According to an affidavit filed in support of the original criminal complaint, a federal law enforcement agent in Phoenix, Ariz., encountered a person later identified as Lucas among the participants who were live streaming images and videos of child pornography over the Internet on Sept. 15, 2016. During the live streaming session, the affidavit says, Lucas claimed to have molested two 13- and 16-year-old victims and said he would attempt to broadcast a future sexual encounter with the victims.
Lucas was partially visible in a reflection during the live stream, the affidavit says. The federal agent engaged in two additional live streaming sessions that day in which Lucas allegedly participated and continued to share images and videos of child pornography.
On Sept. 19, 2016, according to the affidavit, Lucas was identified by the agent posting messages in a known pedophile group. These messages described the number of videos he possessed as well as advertising his new Skype group. Lucas was live streaming videos of child pornography, the affidavit says, and his reflection could be seen. Lucas also shared two links to a Dropbox account that contained images of child pornography, the affidavit says, and claimed that he was in possession of more than 1,000 videos of child pornography.
On Sept. 20, 2016, Lucas allegedly was live streaming and moved the position of the camera to show his face. Lucas allegedly also displayed a handgun and loaded magazine for the weapon during the course of the stream.
A federal law enforcement agent in Springfield executed a search warrant at Lucas’s residence on Sept. 22, 2016, and Lucas was arrested.
Dickinson cautioned that the charges contained in this indictments is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Spartanburg Man Pleads Guilty to Treasury Check ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Joshua A. Martin, age 29, of Spartanburg, pled guilty yesterday in federal court in Anderson, to conspiracy to pass Treasury checks of the United States bearing falsely made or forged endorsements, a violation of Title 18, United States Code, Section 371. United States District Judge Timothy M. Cain, of Anderson accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Martin and co-defendant Brandy Page (who has already pled guilty) obtained Treasury checks by filing false tax returns and from other sources. They then would create a fraudulent power of attorney form giving them authority to cash the check that falsely purported to be executed by the payee listed on the Treasury check. Law enforcement estimates that the duo cashed over $200,000 in Treasury checks in this manner before her scheme was discovered.
Law enforcement discovered the scheme in March 2014 when the Greer Police Department received a complaint from a Georgia man that someone had stolen and cashed his Treasury check in the Greer Wal-Mart. The driver’s license number and date of birth written on the check came back to Page. The Internal Revenue Service assisted local authorities and uncovered the breadth of Page’s scheme.
Ms. Drake stated the maximum penalty Martin can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Greer Police Department and the Internal Revenue Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
#####Sixteen Charged in Lewis County Drug RaidRead the Press Release
SYRACUSE, NEW YORK – Three people were arrested today and charged in federal court with methamphetamine and listed chemical offenses and thirteen others were arrested and charged in Lewis County for state offenses involving the sale and possession of methamphetamine and other illegal drugs, announced United States Attorney Richard S. Hartunian and Lewis County District Attorney Leanne Moser.
Federal Defendants
Eric Campbell, 35, of Port Leyden, New York, Cayla Wujek, 24, of Port Leyden, New York, and Jessica Bowers, 35, a resident of the state of Alabama, are charged with conspiracy to manufacture methamphetamine in Lewis County in November 2015. The three were also each charged individually with possessing pseudoephedrine, a listed chemical, knowing it would be used to manufacture methamphetamine. The charges carry a maximum term of imprisonment of twenty (20) years, a fine of up to $1,000,000, and a term of supervised release of at least three (3) years.
All three federal defendants were arrested today and are scheduled to be arraigned at 2:00 pm in Syracuse, New York, before United States Magistrate Judge David E. Peebles. A federal 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.
Today’s arrests are part of a joint federal and state investigation into methamphetamine manufacturing and distribution in Lewis County. In addition to the three defendants charged in Federal Court, another thirteen defendants were arrested today in Lewis County on state charges alleging the sale and possession of methamphetamine, methamphetamine precursors, and other illegal drugs.
New York State Defendants
Joshua Alexander, 32, of Copenhagen, New York, is charged with Criminal Sale of a Controlled Substance in the Fourth Degree, Criminal Possession of a Controlled Substance in the Fifth Degree (two counts) and Criminal Possession of a Controlled Substance in the Fifth Degree.
Lucas Boliver, 29, of Lowville, New York, is charged with Criminal Sale of a Controlled Substance in the Third Degree, Criminal Possession of a Controlled Substance in the Third Degree, Criminal Sale of a Controlled Substance in the Fifth Degree, and Criminal Possession of a Controlled Substance in the Fifth Degree.
Sasha Eckelman, 27, of Glenfield, New York, is charged with Criminal Sale of a Controlled Substance in the Third Degree and Criminal Possession of a Controlled Substance in the Third Degree.
Ryan Granger, 36, of Lowville, New York, is charged with Criminal Sale of a Controlled Substance in the Fifth Degree.
Julie Green, 48, of Watertown, New York, is charged with Criminal Sale of a Controlled Substance in the Third Degree (3 counts) and Criminal Possession of a Controlled Substance in the Third Degree (3 counts).
James Lynch, 27, of Old Forge, New York, is charged with Sale of An Imitation Controlled Substance.
Brittany Moshier, 23, of Constableville, New York, is charged with Criminal Sale of a Controlled Substance in the Fifth Degree.
Adam J. Rhoades, 20, of Turin, New York, is charged with Criminal Possession of a Controlled Substance in the Seventh Degree.
Tonia Simmons, 37, of Castorland, New York, is charged with Criminal Sale of a Controlled Substance in the Third Degree and Criminal Possession of a Controlled Substance in the Third Degree, Criminal Sale of a Controlled Substance in the Fifth Degree (2 counts), and Criminal Possession of a Controlled Substance in the Fifth Degree (2 counts).
Dawn Stanley, 39, of Lowville, New York, is charged with Criminal Sale of a Controlled Substance in the Fifth Degree, and Criminal Possession of a Controlled Substance in the Fifth
Degree.
Douglas Tuttle, 21, of Lowville, New York, is charged with Criminal Sale of a Controlled Substance in the Fifth Degree.
Gregory Ward, 31, of Glenfield, New York, is charged with Criminal Sale of a Controlled Substance in the Third Degree and Criminal Possession of a Controlled Substance in the Third Degree.
Kendra Zehr, 20, of Lowville, New York, is charged with Criminal Sale of a Controlled Substance in the Third Degree and Criminal Possession of a Controlled Substance in the Third Degree.
The charges are merely accusations. The defendants are presumed innocent until proven guilty.
U.S. Attorney Hartunian stated, “Today’s arrests represent the latest accomplishments in a longstanding, collaborative effort between my office, the DEA, and our state and local partners to target and eradicate illegal methamphetamine production in the North Country, Central New York, and the Southern Tier. With our actions today, illegal methamphetamine producers, as well as the “smurfs” who provide them with the pseudoephedrine necessary to manufacture this horribly addictive and destructive drug, continue to be on notice that their illegal activity subjects them to prosecution by both state and federal authorities, and I applaud the work done by Lewis County District Attorney Leanne Moser, the New York State Police, the Lewis County Sheriff’s Office, the Village of Lowville Police Department, and the DEA in this regard.”
"These arrests are an example of one part in the fight against drugs and how the cooperation of multiple law enforcement agencies can make a significant impact in eradicating all types of illegally controlled substances from being bought and sold on the streets of our communities. It is a constant and continual battle that police officers and prosecutors fight every day, and today is the result of a long, worthwhile step in this battle,” said Lewis County District Attorney Leanne Moser.
This case is being investigated by the U.S. Drug Enforcement Agency (DEA), the United States Marshals Service, the New York State Police, the Lewis County Sheriff’s Office, the Lowville Village Police Department and the Department of Corrections and Community Supervision. The defendants charged in federal court are being prosecuted by Assistant U.S. Attorney Carl Eurenius. The defendants charged under New York State Law in Lewis County are being prosecuted by Lewis County District Attorney Leanne Moser and Assistant District Attorney Mark Lemieux.
Shippensburg Man Sentenced to 235 Months in Federal Prison for Heroin Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dominick Pugliese, age 55, Shippensburg, PA, was sentenced today by United States District Court Judge Yvette Kane in Harrisburg to 235 months (19.5 years) in federal prison on heroin trafficking and firearms charges.
According to United States Attorney Peter Smith, Pugliese was charged in August 2015 and pled guilty in May 2016 to conspiring with others to distribute at least 100 grams of heroin since August 2014 and possession of a firearm, specifically, a 22 caliber rifle, in relation to a drug trafficking crime. Pugliese admitted to distributing at least one kilogram of heroin that would have resulted in the sale of close to 34,000 individual packets of heroin on the street.
Pugliese’s co-defendants Ryan Naugle, Dominick Burton and Jason Corman are awaiting sentencing. Pugliese’s wife, Delorie Pugliese, is awaiting trial.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
The case was investigated by the Harrisburg Resident Office of the Drug Enforcement Administration, the Pennsylvania State Police, the Franklin County Drug Task Force, the Cumberland County Drug Task Force, and the Cumberland County Probation Office. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
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Serial Armed Robber Sentenced to 18 Years in Federal PrisonRead the Press Release
DALLAS — A Dallas man, Christopher Dewayne James, who admitted that he and his accomplices, David Ricks and Manuel Howard, committed armed robberies in Dallas in August 2015, was sentenced today by U.S. District David C. Godbey to serve 220 months (18 years) in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
James, 30, pleaded guilty in May 2016 to four counts of interference with commerce by robbery and one count of discharging a firearm during or in relation to a crime of violence. Co-defendant Ricks, 23, also of Dallas, pleaded guilty in February 2016 to the same offenses and was sentenced in June 2016 to 190 months imprisonment. Co-defendant Howard, 19, also of Dallas, pleaded guilty in January 2016 to the same offenses and was sentenced in April 2016 to 120 months imprisonment.
According to documents filed in the case, the three committed armed robberies in Dallas at the following locations:
August 21, 2015 at 2:00 a.m. 7-Eleven store 11441 Shiloh Road
August 21, 2015 at 4:20 a.m. Shell Station 2313 S. Buckner Blvd.
August 21, 2015 at 5:45 a.m. 7-Eleven store 5804 Abrams Road
August 23, 2015 at 2:40 a.m. 7-Eleven store 11441 Shiloh Road
All of these robberies were committed in essentially the same manner, James would pick the robbery location, drive Ricks and Howard to that location, Ricks and Howard would use loaded firearms to threaten and force the store clerks to comply with their demands, while James stayed in the car as the getaway driver.
During the August 23, 2015 robbery, Ricks and Howard ordered the two store clerks to the back of the store, and to lie on the floor on their stomachs. While in the process of searching the store clerks, Ricks punched one of the clerks in the face and Howard pistol-whipped the same clerk causing the gun to discharge and fire one shot.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Andrew Wirmani is prosecuting the case.
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Sears Home Improvement Products Inc. to Improve Public Health Protections from Lead Pollution During Home RenovationsRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Sears Home Improvement Products Inc. that resolves alleged violations of the federal Lead Renovation, Repair and Painting (RRP) Rule for work performed by Sears’ contractors during home renovation projects across the country. Under the settlement, Sears will implement a comprehensive, corporate-wide program to ensure that the contractors it hires to perform work are properly certified and follow required procedures to prevent exposure to lead dust from home renovation activities. Sears will also pay a $400,000 civil penalty.
“This settlement will help prevent children and workers’ exposure to lead during home renovations in communities across the United States by ensuring that Sears’ contractors are fully aware of their obligations under lead safety regulations,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Sears is required to implement system wide changes across the corporation which will provide additional protection for consumers and bring the company into compliance with the law.”
“Today’s settlement will have a widespread impact across the home improvement industry, significantly reducing exposure to lead paint dust among children and vulnerable citizens,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “In order to contract with Sears, a worker must follow lead safe practices. Contractors will carry this certification to every job they do. EPA expects all renovation companies to ensure their contractors follow these critical laws that protect public health.”
EPA discovered the alleged violations through a review of Sears’ records from projects performed by the company’s renovation contractors at numerous projects in cities across California and in Georgia, Minnesota, Nevada, New York and Wisconsin.
The government also alleged that Sears failed to establish, retain, or provide compliance documentation showing that specific contractors had been certified by EPA, had been properly trained, had used lead-safe work practices, or had performed required post-renovation cleaning.
Under the settlement, Sears will implement a company-wide program to ensure that the contractors it hires to perform work for its customers comply with the RRP Rule during renovations of any child-occupied facilities, such as day-care centers and pre-schools and any housing that was built before 1978. For these projects, Sears must contract with only EPA-certified and state-certified firms and renovators, ensure they maintain certification and ensure they use lead safe work practices checklists during renovations.
Sears will also add a link on its website to EPA’s content on lead-safe work practices and use a company-wide system to actively track the RRP firm and renovator certifications of its contractors. In addition, Sears must suspend any contractor that is not operating in compliance with the RRP Rule, investigate all reports of potential noncompliance and ensure that any violations are corrected and reported to EPA.
EPA reached a similar settlement with home improvement retailer Lowe’s Home Centers in 2014 requiring the company to implement a comprehensive, corporate-wide compliance program at its over 1,700 stores nationwide to ensure that the contractors it hires to perform work minimize lead dust from home renovation activities.
The RRP Rule, which is a part of the federal Toxic Substances Control Act, is intended to ensure that owners and occupants of housing built before 1978, as well as any child-occupied facilities, receive information on lead-based paint hazards before renovations begin, that individuals performing such renovations are properly trained and certified by EPA and follow specific work practices to reduce the potential for lead-based paint exposure. Home improvement companies such as Sears that contract with renovators to perform renovation work for their customers must ensure that those contractors comply with all of the requirements of the RRP Rule.
Lead-based paint was banned in 1978 but still remains in many homes and apartments across the country. Lead dust hazards can occur when lead paint deteriorates or is disrupted during home renovation and remodeling activities. Lead exposure can cause a range of health problems, from behavioral disorders and learning disabilities to seizures and death, putting young children at the greatest risk because their nervous systems are still developing. A blood lead test is the only way to determine if a child has a high lead level. Parents who think their child has been in contact with lead dust should contact their child's health care provider.
Renovation firms that are certified under EPA’s RRP Rule are encouraged to display EPA’s “Lead-Safe” logo on worker’s uniforms, signs, websites and other material, as appropriate. Consumers can protect themselves by looking for the logo before hiring a renovation firm. Consumers can learn more about the RRP Rule and hiring a certified firm by calling the National Lead Information Center at 1 (800) 424-LEAD or visiting www.epa.gov/lead.
Sears Home Improvement Products is part of the Sears Home Services division, within Sears Holdings Corporation. The Home Services division makes over 12 million service and installation calls annually through a network of 6,700 technicians and Sears’ 705 retail stores in the United States. Sears Home Improvement Products is headquartered in Longwood, Florida, does business in 45 states, and maintains 58 district offices.
The consent decree was lodged in the U.S. District Court for the Northern District Court of Illinois. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. To view the consent decree: www.justice.gov/enrd/Consent_Decrees.html.
More information about EPA’s enforcement of the RRP Rule: www.epa.gov/lead/enforcing-lead-laws-and-regulations
Violations of the lead-based paint RRP Rule regulations can be reported to EPA: www.epa.gov/enforcement/report-environmental-violations
Rhode Island Nursing Home Operator and Chief Operating Officer to Pay $2.2 Million to Resolve False Claims AllegationsRead the Press Release
BOSTON – Providence-based skilled nursing facility operator Health Concepts, Ltd., and its Chief Operating Officer, John Gage, have agreed to pay $2.2 million to resolve allegations concerning inflated Medicare claims.
“This settlement is another in a series of resolutions involving inflated Medicare billing at skilled nursing facilities,” said United States Attorney Carmen M. Ortiz. “We continue our efforts to ensure that the provision of care in nursing facilities is based on patients’ clinical needs rather than the financial interests of the companies providing care.”
“Veterans have sacrificed so much for this country and deserve the very best we can provide, especially during elderly care. When VA places these veterans in nursing homes, we expect that standard of care to be met. We will continue to investigate any nursing facility that bases their level of care on financial interests rather than the needs of our country’s veterans. We are proud to have contributed to this multi-agency investigation,” said Jeffrey G. Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office.
The agreement announced today resolves allegations concerning rehabilitation therapy that Massachusetts-based Therapy Resources Management (TRM) purportedly provided at Health Concepts facilities in Rhode Island. The settlement resolves allegations that Health Concepts and Mr. Gage failed to take sufficient steps to prevent TRM from engaging in a pattern and practice of fraudulently inflating the reported amounts of therapy provided to Medicare Part A patients in Health Concepts facilities. Specifically, the facilities submitted bills for therapy that allegedly did not occur as reported, because the therapists were actually conducting initial evaluations when they claimed to be providing therapy, and because the therapists reported therapy time using estimates that often were rounded up from the actual minutes of therapy provided, despite Medicare rules specifically prohibiting the reporting of estimated or rounded numbers of minutes.
“Health Concepts put its financial gain ahead of the care of their patients,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The FBI will continue to aggressively investigate skilled nursing facilities that inflate their billing and exploit the nation’s healthcare system.”
“Patients and taxpayers rightly expect nothing less than suitable, high-quality health care,” said Phillip M. Coyne, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office. “Providers more concerned with increasing Medicare profits, though, can expect my agency working with law enforcement partners to aggressively investigate and prosecute.”
HHS Hotline. The government encourages anyone with information about the practices described above, or similar practices involving rehabilitation therapy in nursing facilities, to contact the Department of Health and Human Services Office of Inspector General Hotline via telephone, 1-800-HHS-TIPS (1-800-447-8477), or in writing via https://forms.oig.hhs.gov/hotlineoperations/.
The case was handled by Assistant U.S. Attorney Gregg Shapiro of Ortiz’s Affirmative Civil Enforcement Unit.
Residents of the Dominican Republic Charged with Bulk Cash SmugglingRead the Press Release
Two residents of the Dominican Republic charged with bulk cash smuggling.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Diane J. Sabatino, Director, Office of Field Operations, U.S. Customs and Border Protection, Miami Field Office, made the announcement.
Javier Enrique Santos Castillo, 42, and David Hernandez Guirola, 44, both of the Dominican Republic, were charged in a criminal complaint with conspiracy to commit bulk cash smuggling, in violation of Title 31, United States Code, Section 5332(a)(1) and Title 18, Untied States Code, Section 371. If convicted, the defendants face a statutory maximum sentence of five years in prison and forfeiture of the seized cash. The defendants made their initial appearance yesterday, before U.S. Magistrate Judge Patrick A. White, and are being held without bond pending further court proceedings.
On September 26, 2016, CBP Miami International Airport, Outbound Enforcement Team conducted routine examinations of international passengers boarding American Airlines flight 987, destined for Santo Domingo, Dominican Republic. Federal travel restrictions require passengers traveling abroad, from the United States to report if they are in possession of more than $10,000 in cash. During CBP questioning, passenger Santos Castillo advised he was carrying approximately $1,000. A preliminary search of Santos Castillo’s outer garment of clothing revealed that he was carrying more than the amount disclosed, as he was in possession of eight envelopes, each estimated to contain $5,000 to $10,000. Santos Castillo advised CBP officers that he was carrying the money for a friend, Hernandez Guirola, who when questioned, confirmed the same. The investigation revealed that Hernandez Guirola was traveling domestically to LaGuardia Airport, in New York and had Santos Castillo traveling to the Dominican Republic with the discovered cash. Further examination revealed a total of 17 envelopes in Santos Castillo’s clothing, containing $69,000. An examination of Santos Castillo’s carry-on luggage revealed an additional 13 envelopes, containing $122,340. CBP seized a total of $191,340.
Mr. Ferrer commended the investigation efforts of ICE-HSI and CBP. This case is being prosecuted by Assistant United States Attorney Gregory Schiller.
A complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
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.
Removed Alien Pleads Guilty to Re-entering U.S. After DeportationRead the Press Release
PITTSBURGH - An individual found by the U.S. Department of Homeland Security has pleaded guilty in federal court to a charge of Illegal Reentry After Deportation, United States Attorney David J. Hickton announced today.
Glenmore Almando Carey, 45, a citizen of Jamaica, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Carey, an alien, who was previously removed from the United States by U.S. Immigration and Customs Enforcement on May 10, 2005, and was found to be living in Pittsburgh on November 17, 2015, by Immigration and Customs Enforcement, Homeland Security Investigations.
Judge Conti scheduled sentencing for January 6, 2017, at 2:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Immigration and Customs Enforcement – Enforcement Removal Operation conducted the investigation that led to the prosecution of Carey.
Philadelphia Man Sentenced to Eight Years in Prison for Sex Trafficking 15-Year-Old GirlRead the Press Release
TRENTON, N.J. – A Philadelphia man was sentenced today to 96 months in prison for sex trafficking a 15-year-old girl, U.S. Attorney Paul J. Fishman announced.
Samuel Verrier, 38, aka “Dre,” previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of procuring the interstate travel of a person to engage in illicit sexual conduct for the purpose of financial gain. Judge Shipp imposed the sentence in Trenton federal court.
According to the documents filed in this case and statements made in Court:
For approximately two weeks in August 2011, Verrier engaged a 15-year-old girl in prostitution, acting as her pimp. He brought her to various bars and strip clubs, supplied her with drugs and alcohol, and instructed her to have sex with club patrons in exchange for money. On Sept. 1, 2011, Verrier and his co-defendant, Karl Venord, drove the girl from Philadelphia to Bordentown, New Jersey, so that they could use her in an extortion scheme. They directed her to approach a man in a parking lot, seduce him, take pictures of the sexual encounter, and provide those pictures to Verrier and Venord, who would use the pictures to blackmail the man. The scheme went awry when the man declined the girl’s advances and a witness called the police.
In addition to the prison sentence, Judge Shipp sentenced Verrier to a lifetime term of supervised release, the provisions of which restrict his contact with minors, and ordered him to pay $60,000 in restitution to the victim, as well as a $5,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. The N.J. Division of Criminal Justice also provided assistance.
The government is represented by Assistant U.S. Attorneys Sarah M. Wolfe, Molly S. Lorber, and R. Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Paul Casteleiro Esq., West Trenton, New Jersey
Owner of California Company that Falsely Advertised Mortgage Assistance Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN VESCERA, 60, of Dana Point, Calif., was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for false advertising and misusing a government seal in connection with the provision of mortgage modification services.
According to court documents and statements made in court, VESCERA was the President of First One Lending Corporation (“First One”) in San Juan Capistrano, Calif. During the peak of the national mortgage crisis, VESCERA and First One offered home mortgage loan modification assistance to homeowners across the United States, including in Connecticut, who were having difficulty repaying their mortgage loans.
From approximately February 2010 until approximately February 2012, VESCERA and First One solicited clients through television advertisements and infomercials produced by National Media Connection of New London, Conn. These advertisements touted the mortgage modification services of an entity known as the National Mortgage Help Center (“NMHC”).
Matthew Goldreich, of East Lyme, Conn., had incorporated NMHC approximately two months after the U.S. Treasury Department announced that it would partner with financial institutions to reduce struggling homeowners’ monthly mortgage payments through a program called the Home Affordable Modification Program (“HAMP”). HAMP consisted of a number of incentives to encourage homeowners and financial institutions to modify existing loans on owner-occupied primary residences in order to help keep these properties out of foreclosure.
NMHC advertisements misrepresented NMHC as being affiliated with or regulated by the U.S. government and falsely stated that NMHC “help[ed] thousands of homeowners every day.” When viewers called the advertised telephone number, they were connected not to NMHC, which operated only as a front and did not provide mortgage modification services for any homeowners, but to clients of National Media Connection, including First One.
VESCERA and First One used NMHC’s name and logo in First One’s promotional materials, application package and other documents. VESCERA also instructed First One employees to introduce themselves to prospective clients as “with the National Mortgage Help Center.”
First One also misrepresented its status with the U.S. Department of Housing and Urban Development (“HUD”). First One employees were instructed to inform homeowners that “[w]e’re a HUD approved lender and we represent the government loan modification programs.” In addition, certain of First One’s forms claimed that the company provided “HUD . . . Housing Counseling assistance” and bore HUD’s seal. In truth, First One had no affiliation with the government mortgage loan assistance programs and was not licensed or approved by HUD for housing counseling or home mortgage loan modification services.
Through this scheme, 302 victims lost a total of $374,622. Many of these victims were previously compensated after VESCERA and First One paid approximately $1.5 million to the Neighborhood Assistance Corporation of America in March 2013 to resolve a federal lawsuit in the Central District of California. As part of this criminal case, VESCERA paid restitution of $30,320 to 24 of the victims who were not identified at the time the federal lawsuit was settled.
On May 3, 2016, VESCERA pleaded guilty to one count of misuse of a government seal and one count of false advertising.
Goldreich previously pleaded guilty to one count of false advertising. On November 5, 2015, he was sentenced to two years of probation, including three months of home confinement. He also was ordered to pay a $100,000 fine and $75,794 in restitution.
This investigation was conducted by the U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, and Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Avi Perry and Liam Brennan.
Oswego Man Pleads Guilty to Distribution, Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – James M. Moody, 42, of Oswego, New York, pled guilty today in Utica before United States District Judge David N. Hurd to one count of distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography, announced United States Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations, Syracuse Office.
As part of his guilty plea, Moody admitted that he distributed images of child pornography through a Peer-to-Peer file sharing program. On October 23, 2015, investigators searched Moody’s residence, and recovered hundreds of images and numerous videos depicting child pornography.
Moody was ordered held in custody pending his sentencing on January 26, 2017 in Utica, New York. He faces at least five (5) years of imprisonment and up to twenty (20) years of imprisonment on each of the distribution and receipt counts, and up to twenty (20) years of imprisonment on the possession count. Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court. The Court will also impose a term of supervised release of between five (5) years and life, and Moody will be required to register as a sex offender. 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.
This case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to 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 https://www.justice.gov/psc.
Oklahoma Man Pleads Guilty to Federal Narcotics Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Ruben Fuentes, Jr., 38, of Oklahoma City, Okla., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. The charge to which Fuentes pleaded guilty arose out a seizure of more than 13 pounds of methamphetamine during a traffic stop.
Fuentes was arrested on March 22, 2016, on a criminal complaint charging him with possession of methamphetamine with intent to distribute. The criminal complaint alleged that Fuentes committed the crime on March 10, 2016, in Quay County, N.M. According to the criminal complaint, New Mexico State Police (NMSP) officers found approximately 13.45 pounds of methamphetamine in Fuentes’ vehicle during a traffic stop on eastbound Interstate 40 near mile marker 327. Fuentes was subsequently indicted on the same charge on April 12, 2016.
During today’s proceedings, Fuentes pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Fuentes admitted that on March 10, 2016, when he was stopped by the NMSP in Quay County, he was in possession of methamphetamine which he intended to distribute to others.
At sentencing, Fuentes faces a statutory maximum penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the NMSP. Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case.
New York Doctor Sentenced to More Than 13 Years in Prison for Unlawfully Dispensing Nearly 1 Million Oxycodone PillsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MOSHE MIRILASHVILI, a Board-certified, state-licensed doctor, was sentenced today to 160 months in prison for conspiring to distribute oxycodone and unlawful distribution of oxycodone. MIRILASHVILI was also ordered to forfeit $2,046,600.00 in cash fees collected from “patients” during the period of the conspiracy, including more than $1.75 million in cash recovered from MIRILASHVILI’s home at the time of his arrest. MIRLASHVILI was convicted in Manhattan federal court on March 17, 2016, following a three-week trial before United States District Judge Colleen McMahon, who imposed sentence.
Manhattan U.S. Attorney Preet Bharara said: “Moshe Mirilashvili was essentially a drug dealer masquerading as a doctor. Through his sham medical practice in Manhattan where patients and dealers would line up, Mirilashvili wrote more than 10,000 medically unnecessary prescriptions totaling close to a million oxycodone pills. As today’s sentence makes clear, those who abuse their medical licenses to fuel the opioid epidemic that is devastating so many of our communities will be prosecuted and severely punished.”
According to the Indictment, evidence admitted at trial, and statements made at court proceedings and in court filings:
Oxycodone is a highly addictive, prescription-strength narcotic used to treat severe and chronic pain conditions. Every year, more than 13 million Americans abuse oxycodone, with the misuse of prescription painkillers such as oxycodone, leading to as many as 500,000 annual emergency room visits. Oxycodone prescriptions have enormous cash value to street-level drug dealers, who can fill the prescriptions at most pharmacies and resell the pills at vastly inflated rates. Indeed, a single prescription for 90 30-milligram oxycodone pills has an average resale value in New York City of $2,700 or more.
From October 2012 until December 2014, MIRILASHVILI, a board-certified, state-licensed doctor, wrote thousands of medically unnecessary prescriptions for large quantities of oxycodone in exchange for cash payments. MIRILASHVILI did so out of a sham medical office located on West 162nd Street in Manhattan where MIRILASHVILI typically charged $200 to $300 in cash for “patient visits” that typically involved little, if any, actual examination and almost always resulted in the issuance of a prescription for a large quantity of oxycodone, typically 90 30-milligram tablets.
Virtually none of these “patients” had any medical need for oxycodone, nor any legitimate medical records documenting an ailment for which oxycodone would be prescribed. Instead, most of these individuals were members of “crews” – that is, they were recruited and paid by drug traffickers (the “Crew Chiefs”), to pose as “patients” in order to receive medically unnecessary prescriptions. The Crew Chiefs then obtained these prescriptions and arranged for them to be filled at various pharmacies so that the oxycodone pills thereby obtained could be resold on the streets of New York.
As established at trial, MIRILASHVILI worked directly with some of these Crew Chiefs who paid MIRILASHVILI’s cash fees in return for the oxycodone prescriptions MIRILASHVILI guaranteed for their “patients.” As part of the scheme, MIRILASHVILI frequently accepted and even created fraudulent and fake documents – such as MRI and urinalysis reports – ostensibly documenting the medical need for the oxycodone prescriptions MIRILASHVILI was writing. For example, among documents recovered from MIRILASHVILI’s home at the time of his arrest were lab reports in which the name of the “patient” had been cut and pasted onto the document, as well as similar reports in which the name of the patient or other relevant information had been whited out. More than $1.75 million in cash earned from writing these medically unnecessary prescriptions was also recovered from the defendant’s home at the time of his arrest.
In total, between October 2012 and December 2014, MIRILASHVILI wrote more than 10,000 medically unnecessary prescriptions for oxycodone in return for cash payments, comprising nearly a million oxycodone tablets. MIRILASHIVILI collected more than $2 million in cash fees for “doctor visits” during this time period, all of which the defendant is being required to forfeit to the United States.
Ten other participants in the conspiracy have previously pled guilty, including the drug traffickers who oversaw crews of “patients” sent into the clinics to obtain medically unnecessary oxycodone prescriptions, and clinic staff, who profited by selling access to MIRILASHVILI and the fraudulent prescriptions he wrote.
* * *
In addition to the prison sentence and forfeiture, Judge McMahon sentenced MIRILASHVILI, 68, of Great Neck, New York, to 3 years of supervised release and ordered MIRILASHVILI to pay a $300 special assessment.
U.S. Attorney Preet Bharara thanked the Drug Enforcement Administration’s Tactical Diversion Squad (which comprises agents and officers from the DEA, the New York City Police Department, the New York State Police, the Town of Orangetown Police Department, the Rockland County Drug Task Force, and the Westchester County Police Department) for their work in the two-year investigation.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Edward B. Diskant and Brooke E. Cucinella are in charge of the prosecution.
New York City Resident Pleads Guilty to Using Sham Foreign Entity and Secret Foreign Accounts in Switzerland and Israel to Evade TaxesRead the Press Release
Used Secret Foreign Accounts to Hide over $7 Million in Funds and Evade Taxes
A New York City man pleaded guilty today to a criminal information charging him with tax evasion for tax years 2003 through 2005 and 2007 through 2010, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division, and U.S. Attorney Robert L. Capers of the Eastern District of New York.
“Mr. Hager concealed over $7.3 million in undeclared foreign accounts in Switzerland and Israel and used a sham British Virgin Island entity in order to evade over $650,000 in U.S. taxes,” said Principal Deputy Assistant Attorney General Ciraolo. “As this case demonstrates, the Department and the Internal Revenue Service (IRS), together with our global partners, are successfully working on a daily basis to locate such undeclared accounts, identify those responsible and hold them accountable.”
According to information presented in court, between 1987 through 2011, Markus Hager, 68, utilized a series of undeclared foreign financial accounts to evade his individual income taxes by concealing assets and income from the IRS in those accounts. Between 1987 and 2008, Hager maintained several undeclared accounts at UBS, including two numbered accounts and an account held in the name of Contactus Partnership Associated S.A. (Contactus), a sham British Virgin Islands entity. By the close of 2004, the value of Hager’s undeclared accounts at UBS exceeded $7.3 million.
Hager closed the UBS accounts in 2008 and transferred the assets to a newly opened account at Clariden Leu, which he controlled and held in the name of Contactus. Shortly thereafter, Hager closed the Contactus account at Clariden Leu and transferred the assets to a newly opened account held in the name of the same sham entity at a different Swiss bank. Hager caused that Swiss bank to falsely record Hager’s Belgian cousin as the owner of the assets in the Contactus account. Approximately six months later, Hager closed the Contactus account at the Swiss bank and transferred the assets to an account at a bank in Israel that Hager caused to be opened in the name of a different Belgian cousin.
From 2005 to 2011, Hager also controlled an undeclared account at Bank Leumi in Israel, which he falsely held under the name of a relative who was not a U.S. person and who resided outside the United States. In February 2010, after obtaining an Israeli Identity Card, Hager opened an account in his own name at Bank Leumi in Israel but falsely reported that he lived in the United Kingdom and signed a document, under the penalties of perjury, on which he falsely claimed that he was not a U.S. citizen.
According to the information filed, Hager repatriated funds from his undeclared foreign financial accounts by having an attorney draft a sham loan agreement between himself and Contactus and wiring funds from some of his undeclared foreign financial accounts into his attorney’s escrow account.
According to the information filed, Hager filed false federal and New York State income tax returns on which he failed to report the income from his foreign financial accounts and failed to pay tax on that income. According to the information, Hager evaded approximately $652,580 in federal taxes for tax years 2003 through 2005 and 2007 through 2010. Hager also failed to report his ownership and control of his foreign financial accounts to the Department of the Treasury on a Report of Foreign Bank and Financial Account even though an accounting firm had informed Hager of his obligation to do so and advised him of the civil and criminal penalties he could suffer for the failure to do so.
“In pleading guilty today, Markus Hager became another example of an individual who attempted to conceal the true source of his money and was caught,” said Chief Richard Weber of IRS-Criminal Investigation (IRS-CI). “IRS-CI will continue to take every step necessary to ferret out those who attempt to avoid their reporting obligations under the law.”
Sentencing has been set for Jan. 4, 2017. Hager faces a statutory maximum sentence of five years in prison, as well as a term of supervised release and monetary penalties. According to the plea agreement, Hager agreed to pay restitution to the IRS.
Principal Deputy Assistant Attorney General Ciraolo and U.S. Attorney Capers commended special agents of IRS-Criminal Investigation, who conducted the investigation, and Senior Litigation Counsel Mark F. Daly and Assistant Chief Andrew Kameros of the Tax Division and Assistant U.S. Attorney Erik Paulsen of the Eastern District of New York, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
New Indictment Charges West L.A. Pharmacy and its Owners with Drug Trafficking and Using Stolen Identities to Conceal the OffenseRead the Press Release
LOS ANGELES – A federal grand jury has issued a superseding indictment that charges a West Los Angeles pharmacy and its owners with operating a years-long narcotic drug trafficking, money laundering, and tax fraud conspiracy.
Under the new indictment, Brentwood residents Berry Kabov, 45, and his brother Dalibor Kabov (also known as “Dabo”), 33, are charged with operating Global Compounding Pharmacy for the purpose “of concealing and growing” their conspiracy to profit from black market sales of narcotics including oxycodone (best known by the brand name OxyContin), hydromorphone (also known as Dilaudid), and hydrocodone (commonly known as Vicodin or Norco).
The prior indictment, as further detailed in a search warrant unsealed on October 1, 2015, charged the Kabov brothers with using Los Angeles as a base to sell bulk shipments of prescription drugs – including oxycodone, which is commonly sold under the brand name OxyContin – to black market customers across the country. Investigators seized parcels containing thousands of hidden oxycodone pills that the Kabov brothers attempted to ship to black market customers in and around Columbus, Ohio, according to the search warrant affidavit, which states that the customers in turn made cash deposits into Kabov-controlled bank accounts or simply shipped bulk cash to the brothers in Southern California.
The new indictment charges that, to conceal those black market drug sales, the Kabovs would use the pharmacy to “generate records” falsely showing that prescriptions “had been filled in the names of identity theft victims, that is, persons who did not in fact receive or fill” the prescriptions. Similarly, the new indictment charges that, from June 2012 through December 2014, the pharmacy ordered nearly 100,000 pills of oxycodone, yet its reported prescription records only account for half of those pills, resulting in a shortfall of more than 45,000 pills of unaccounted oxycodone, along with parallel disparities for the pharmacy’s orders of other narcotic drugs.
“These defendants are charged with using their pharmacy to vastly increase the volume of their drug dealing and multiple bank accounts to hide their illicit proceeds from federal authorities,” said United States Attorney Eileen M. Decker. “Prescription drug abuse is an epidemic in this country that causes harm and in some cases death, and these defendants’ use of their pharmacy in the scheme increased significantly the amount of these types of drugs on the street, posing a serious danger to the community.”
The indictment also charges the Kabovs with laundering more than $1 million in unlawful cash proceeds, which the Kabov brothers attempted to conceal in structured cash deposits into multiple bank accounts that they controlled. New tax counts added to the indictment also charge that the Kabovs falsely underreported this income to the IRS in tax years 2012 through 2014.
“Law enforcement agencies throughout the country are seizing record amounts of heroin and other opioids and first responders are witnessing the devastating effects of these substances in numbing proportions,” said DEA Special Agent in Charge John S. Comer. “DEA will continue to target the illicit trafficking organizations responsible for these detriments, but we’re also committed to educating the public about the dangers of drug misuse and reducing demand – awareness is a crucial element in combatting this epidemic.”
In addition to the charges related to oxycodone and other narcotic drugs, the indictment alleges that the brothers illegally imported anabolic steroids purchased from a wholesale drug distributor located in Hubei, China. The indictment details how the brothers used the pharmacy to illegally order bulk quantities of testosterone, oxandrolone, and nandrolone.
If convicted of the charges in the indictment, Berry Kabov faces a 479-year maximum prison term and Dalibor Kabov faces a 485-year maximum prison term.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The investigation into the Kabov brothers and Global Compounding is being conducted by the Drug Enforcement Administration, the Internal Revenue Service – Criminal Investigation, the United States Postal Inspection Service, the Los Angeles Police Department, and the California Board of Pharmacy.
The case is being prosecuted by Assistant United States Attorneys Benjamin Barron and Ryan Weinstein of the Organized Crime Drug Enforcement Task Force.
Navajo Man from Fruitland Pleads Guilty to Federal Drug Trafficking ChargeRead the Press Release
ALBUQUERQUE – George Begay, 47, an enrolled member of the Navajo Nation who resides in Fruitland, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. The guilty plea was entered without the benefit of a plea agreement.
Begay was arrested on May 11, 2016, on an indictment charging him with distributing methamphetamine on April 29, 2014, in San Juan County, N.M. During today’s proceedings, Begay pled guilty to the indictment.
At sentencing, Begay faces a maximum penalty of 20 years in federal prison. Begay remains in custody pending his sentencing hearing, which has yet to be scheduled.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the HIDTA Region II Narcotics Task Force. Assistant U.S. Attorney Elaine Y. Ramirez is prosecuting the case.
The HIDTA Region II Narcotics Task Force is comprised of officers and investigators from the Farmington Police Department, San Juan County Sheriff’s Office, Bloomfield Police Department, Aztec Police Department and HSI Albuquerque, and is part of the High Intensity Drug Trafficking Areas (HIDTA) program was created by Congress with the Anti-Drug Abuse Act of 1988. HIDTA is a program of the White House Office of National Drug Control Policy (ONDCP) which provides assistance to federal, state, local and tribal law enforcement agencies operating in areas determined to be critical drug-trafficking regions of the United States and seeks to reduce drug trafficking and production by facilitating coordinated law enforcement activities and information sharing.
Muskogee Man Pleads Guilty to Failure to Register as Sex OffenderRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that TIMOTHY RAY CANNON, age 39, of Muskogee, Oklahoma, pled guilty to FAILURE TO REGISTER AS SEX OFFENDER, in violation of Title 18, United States Code, Sections 2250(a)(1), 2250(a)(2)(B) and 2250(a)(3), punishable by not more than 10 years imprisonment, up to a $250,000 fine or both.
The Indictment alleged that on or about September, 2014, until on or about April 13, 2016, in the Eastern District of Oklahoma, and elsewhere, the defendant, TIMOTHY RAY CANNON, an individual required to register as a sex offender under the Sex Offender Registration and Notification Act, after having received felony convictions from the State of California, in Kerns County, on or about July 20, 2000, for Sex with a Minor, and on or about December 10, 2010, for the offense of Sexual Battery: Touch for Sexual Arousal, traveled in interstate commerce and knowingly failed to register and update his registration as required by the Sex Offender Registration and Notification Act.
Charges arose from an investigation by the Muskogee Police Department and the United States Marshals Service.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion.
Assistant United States Attorney Edward Snow represented the United States.
Mosher Man Sentenced for Abusive Sexual ContactRead the Press Release
United States Attorney Randolph J. Seiler announced that a Mosher, South Dakota, man convicted of two counts of Abusive Sexual Contact was sentenced on September 26, 2016, by U.S. District Court Judge Roberto A. Lange.
Tyrone Steven Andrews, age 24, was sentenced to 30 months in custody, 5 years of supervised release, and a $100 special assessment to the Federal Crime Victims Fund.
Andrews was indicted by a federal grand jury on October 14, 2015. He was convicted on July 8, 2016, following a two-day jury trial in Pierre, South Dakota.
The charges stem from an incident that occurred on February 25, 2013, wherein Andrews groped a 15-year-old girl who was at a sleepover at a home in Rosebud, South Dakota. Andrews entered the bedroom where the girl was sleeping and touched her breasts under her clothes while she was asleep. The girl awoke, realized what was happening, and tried to get the attention of her friend who was sleeping next to her in the bed. Andrews then began to rub the girl’s inner thigh and kissed her neck. At that point, the girl was able to awaken her friend and Andrews ran out of the room.
Andrews was acquitted of a separate charge of Aggravated Sexual Abuse. That charge stemmed from an incident involving an adult female that occurred at a home in Okreek, South Dakota, in late May or early June of 2015.
This case was investigated by the Rosebud Sioux Tribe Law Enforcement Services and the Federal Bureau of Investigation. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Andrews was immediately remanded to the custody of the U.S. Marshals Service.
Monmouth County, New Jersey, Sales Representative Sentenced to One Year in Prison for Paying $25,000 in Cash Bribes for Patient ReferralsRead the Press Release
CAMDEN, N.J. – The owner of a marketing and sales company who admitted paying thousands of dollars in cash bribes to a New Jersey physician in return for patient referrals to his clients was sentenced today to 12 months and one day in prison, U.S. Attorney Paul J. Fishman announced.
Daniel Gilman, 63, of Ocean Grove, New Jersey, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of conspiracy to pay kickbacks. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Gilman was a principle of Promed Practice Consultants LLC (Promed), a company specializing in marketing and sales services for testing laboratories. As identified in the information, “Company 1,” a blood testing laboratory, and “Company 2,” a DNA testing laboratory, were two of Promed’s clients. Gilman received monthly commission checks from Company 1 and Company 2 for referrals, which were equal to 10 percent of the reimbursements paid to the companies by various payers, including Medicare.
From March 2014 through May 2015, Gilman paid a physician, Vincent Destasio, 54, of Toms River, New Jersey, thousands of dollars in return for patient lab referrals to Company 1 and Company 2. After receiving the commission checks from Company 1 and Company 2, Gilman would identify Destasio’s patient referrals to those companies and pay him corresponding kickbacks in cash.
Neither Company 1 nor Company 2 had any knowledge of or involvement in the kickback scheme.
In addition to the prison term, Judge Rodriguez sentenced Gilman to two years of supervised release, fined him $1,000, and entered a forfeiture judgment of $25,000. Destasio pleaded guilty on June 23, 2016, to an indictment charging him with one count of conspiracy to accept cash bribes and is scheduled to be sentenced Sept. 29, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, and the U.S. Department of Health and Human Services, Office of Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, with the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorney R. David Walk Jr. of the U.S. Attorney’s Office Health Care and Government Fraud Unit in Camden.
U.S. Attorney Fishman reorganized the health care fraud practice shortly after taking office, creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.3 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug and Cosmetic Act and other statutes.
Defense counsel: Vincent C. Scoca Esq., Bloomfield, New Jersey
Miller Man Sentenced for Attempted Sex TraffickingRead the Press Release
United States Attorney Randolph J. Seiler announced that a Miller, South Dakota, man convicted of Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor was sentenced on September 26, 2016, by U.S. District Judge Roberto A. Lange.
Joseph Raleigh, age 34, was sentenced to 46 months in custody, 3 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Raleigh was indicted by a federal grand jury on October 20, 2015, for Attempted Commercial Sex Trafficking of Children and Attempted Enticement of a Minor Using the Internet. He pled guilty to Attempted Trafficking with Respect to Involuntary Servitude and Forced Labor on July 5, 2016.
The conviction arose from an undercover operation conducted in the Pierre, South Dakota, area by the Internet Crimes Against Children Task Force (ICAC). Raleigh responded to an advertisement of a minor available for sexual activities in exchange for money posted on Craigslist on October 16, 2015. Through email conversations with the undercover ICAC agents, Raleigh negotiated a price and arranged to have a sexual encounter with a 15-year-old girl in Blunt, South Dakota, on October 16, 2015. Raleigh then met with an undercover agent, who was posing as someone who could provide the girl for sex. The negotiated price was $400, which Raleigh had in his possession.
This case was investigated by the South Dakota Division of Criminal Investigation, the United States Marshals Service, the South Dakota ICAC Task Force, and the Pierre Police Department. Assistant U.S. Attorneys Kirk Albertson and Tim Maher prosecuted the case.
Raleigh was immediately turned over to the custody of the U.S. Marshals Service.
McAllen Man Convicted of Downloading Hundreds of Child Pornography Videos and ImagesRead the Press Release
McALLEN, Texas – A 27-year old resident of McAllen has entered a guilty plea to one count of receipt of child pornography, announced U.S. Attorney Kenneth Magidson along with Special Agent in Charge Shane Folden of Immigration and Customs Enforcement’s Homeland Security Investigations (HSI).
Jorge Trevino-Blanco came to the attention of law enforcement following an investigation which began on Oct. 16, 2015, into persons using the Internet to traffic in child pornography. A special agent with HSI was able to locate and identify a computer as offering to participate in the receipt of child pornography movies and images through the peer-to-peer network on the Internet. Through the investigation, it was determined that the computer was located in a residence in McAllen.
On July 8, 2016, authorities executed a federal search warrant at that residence, during which time they seized two laptop computers and an external hard drive. A forensic examination on the devices revealed a total of 123 videos and 282 images of child pornography involving clearly young children engaged in sexually explicit conduct. These videos and images included children under the age of 12 engaged in sadistic conduct and acts of violence. Some of the videos and images are of known victims as identified through the National Center for Missing and Exploited Children.
Trevino-Blanco admitted he downloaded child pornography from the Internet, thereby receiving the child pornography found on his computers and external hard drive. He further admitted he had been doing so for approximately four years.
U.S. District Judge Micaela Alvarez, who accepted the guilty plea today, has set sentencing for Dec. 8, 2016. At that time, Trevino-Blanco faces a minimum of five and up to 20 years in federal prison and a possible $250,000 fine. He will remain in custody pending that hearing.
HSI conducted the investigation.
This case, prosecuted by Assistant U.S. Attorney Alex Benavides, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Massachusetts State Representative Visits INTERPOL WashingtonRead the Press Release
On September 27, 2016, Massachusetts State Representative Harold P. Naughton, Jr., (D-MA), and Chairman of the Joint Committee on Public Safety and Homeland Security, met with INTERPOL Washington leadership to discuss matters of mutual interest.
The visit included an overview of INTERPOL Washington operations as well as a discussion of how Massachusetts’ law enforcement agencies can benefit from federation. This process enables investigators to query both domestic and INTERPOL indices in a single search transaction, and to make real-time, concurrent determination of the domestic and/or international criminal or terrorist threat posed by persons of investigative interest. Federated searches can be conducted from both fixed and mobile platforms, including vehicle mounted and hand-held devices. Currently, 12 states and the District of Columbia have federated their search queries.
The decision to federate rests with individual states. U.S. law enforcement agencies can gain more information about federation by contacting INTERPOL Washington’s Office of the Chief Information Officer at 202-616-9000 or on-line at Nlets at http://www.nlets.org .
Louisville Man Pleads Guilty to Participating in Kickback Scheme with Former Secretary of Kentucky’s Personnel CabinetRead the Press Release
LEXINGTON, Ky — Lawrence J. O’Bryan, a business owner from Louisville, Ky., admitted in federal court today that he participated in a kickback scheme involving the former Secretary of the Kentucky Personnel Cabinet, Timothy Longmeyer.
O’Bryan, 57, pleaded guilty to three counts charging bribery of a public official, before U.S. District Judge Karen Caldwell. O’Bryan waived his right to be indicted by a grand jury and pleaded guilty to the charges brought by Kerry B. Harvey, U.S. Attorney for the Eastern District of Kentucky.’
O’Bryan admitted that he worked with Longmeyer to formulate the kickback scheme beginning in 2009. Longmeyer agreed to use his position to persuade Humana, Inc., to hire MC Squared Consulting, LLC for consulting services related to the Kentucky Employees’ Health Plan, which Longmeyer oversaw. The owner of MC Squared agreed to pay O’Bryan approximately half of MC Squared’s proceeds from its contracts with Humana. Upon receiving payments from MC Squared and withholding the portions he believed were payable as taxes, O’Bryan would then kick back fifty percent of the remaining funds to Longmeyer.
Between October 2011 and March 2014, O’Bryan accepted $642,201.50 in payments from the owner of MC Squared. O’Bryan withheld a portion of each such payment and then used various methods to pay Longmeyer fifty percent of the remaining funds. O’Bryan’s role as the intermediary for money paid by MC Squared to Longmeyer ended in approximately March 2014. O’Bryan owned Proactive Media, a consulting business in Louisville.
United States Attorney Harvey and Howard Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly announced the guilty plea. The U.S. Attorney’s Office was represented by Assistant U.S. Attorneys Andrew T. Boone and Kathryn M. Anderson.
O’Bryan is scheduled to be sentenced on January 19, 2017. He faces up to 10 years in prison and a maximum fine of $250,000 for each count. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Lehigh County Couple Sentenced for Scheme to Defraud NASARead the Press Release
A federal judge today sentenced Yujie Ding to a year and a day in prison for his role in defrauding NASA’s Small Business Innovation Research (SBIR) Program. U.S. District Court Judge Harvey Bartle III also ordered Ding to pay a fine of $3,000 and restitution of $72,000. Last week, Ding's co-defendant and wife, Yuliya Zotova, was sentenced to 3 months in prison, along with a fine and restitution.
In August 2009 and July 2010, Ding and Zotova submitted proposals to NASA, seeking funding for scientific research. The defendants’ proposals claimed they would conduct the research at their business, ArkLight, and would subcontract some of the work to Lehigh University, where Ding was employed as a professor. Instead, the defendants used ArkLight as a front to funnel federal grant money to themselves for research performed by students and others working under Ding’s supervision at his university lab. The defendants sent invoices to NASA, via interstate electronic transmissions, for research in which the jury found that ArkLight had not participated.
The case was investigated by the National Aeronautics and Space Administration's Office of Inspector General, the Defense Criminal Investigative Service, and the United States Air Force Office of Special Investigations. It was prosecuted by Assistant United States Attorneys Elizabeth F. Abrams and Gregory B. David.
Lee's Summit Woman Sentenced for Oxycodone ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lee’s Summit, Mo., woman was sentenced in federal court today for her role in a conspiracy that used hundreds of fraudulent prescriptions to obtain tens of thousands of oxycodone pills.
Amy M. Alley, 31, of Lee’s Summit, was sentenced by U.S. District Judge Howard F. Sachs to seven years in federal prison without parole.
On May 18, 2016, Alley pleaded guilty to participating in a conspiracy to distribute oxycodone that began in January 2010 and lasted until she was indicted on July 28, 2015.
According to court documents, Alley was involved in a large scale, wide ranging drug conspiracy to obtain oxycodone by way of fraud, then use or sell those fraudulently-obtained pills to further support their drug habits. Conspirators used stolen prescription pads, stolen identifications and fraudulently created prescriptions to obtain the oxycodone from area pharmacies. A number of fraud “script” ledgers were recovered in this case that showed Alley and her co-conspirators had fraudulently passed and attempted to pass hundreds of fraud prescriptions and obtained approximately 30,155 pills before their arrests.
Alley’s twin sister and co-defendant Amanda F. Alley, 31, of Lee’s Summit, pleaded guilty to her role in the conspiracy on June 3, 2016, and awaits sentencing. Co-defendant Heather J. Martinez, 28, of Kansas City, Mo., pleaded guilty to her role in the conspiracy and was sentenced to seven years in federal prison without parole.
This case is being prosecuted by Assistant U.S. Attorney Joseph M. Marquez. It was investigated by the Independence, Mo., Police Department.
Justice Department Settles Housing Discrimination Lawsuit Against Pennsylvania LandlordRead the Press Release
WASHINGTON – The Justice Department announced today that a Johnstown, Pennsylvania, landlord has agreed to pay $30,000 to resolve allegations that he discriminated against families with children in violation of the Fair Housing Act.
The department’s lawsuit was filed in the U.S. District Court for the Western District of Pennsylvania and alleged that Robert Kormanik, the rental manager for Kinamrok Apartments, and Kinamrok Inc., the corporate entity that owns the complex, discriminated against families with children by prohibiting them from renting one- and two-bedroom units. The allegations were based on evidence generated by the department’s Fair Housing Testing Unit, in which individuals pose as prospective renters to gather information about possible discriminatory practices. The department’s testing revealed that Kormanik told testers children were not allowed in one-bedroom units. He also refused to inform testers about available two-bedroom units until the testers assured him that no children would reside there.
“Although it may appear in discrete forms, housing discrimination against families with children remains a persistent problem,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the department’s Civil Rights Division. “Around the country, the Justice Department will continue to aggressively enforce the Fair Housing Act, as we did here in Johnstown, to ensure that families with children can obtain housing without facing unlawful, discriminatory barriers.”
“We are dedicated to ensuring that families with children are not discriminated against when seeking housing here in Western Pennsylvania,” said U.S. Attorney David J. Hickton of the Western District of Pennsylvania. “Today’s settlement demonstrates our commitment to making sure that owners of rental properties understand their obligations under the Fair Housing Act, and follow the law.”
Under the terms of the consent order, which still must be approved by the court, Kormanik and Kinamrok will establish a settlement fund of $20,000 to compensate victims of their alleged discriminatory practices. The defendants will also pay a $10,000 civil penalty to the United States. The agreement prohibits the defendants from engaging in further acts of discrimination and requires them to implement a non-discrimination policy and submit reports to the United States for three years. Kormanik and any other employee involved in the management of, or the rental of units at, Kinamrok Apartments must also receive training on the Fair Housing Act.
Individuals who believe they may have been discriminated against at Kinamrok Apartments because they sought to reside there with children should contact the department toll-free at 1-800-896-7743, mailbox 995, or e-mail [email protected]. Kinamrok Apartments are located at 400 Luray Avenue, 1001 Tener Street, 1010 Tener Street and 105 Kinamrok Avenue in Johnstown.
The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777.
Justice Department Settles Housing Discrimination Lawsuit Against Pennsylvania LandlordRead the Press Release
The Justice Department announced today that a Johnstown, Pennsylvania, landlord has agreed to pay $30,000 to resolve allegations that he discriminated against families with children in violation of the Fair Housing Act.
The department’s lawsuit was filed in the U.S. District Court for the Western District of Pennsylvania and alleged that Robert Kormanik, the rental manager for Kinamrok Apartments, and Kinamrok Inc., the corporate entity that owns the complex, discriminated against families with children by prohibiting them from renting one- and two-bedroom units. The allegations were based on evidence generated by the department’s Fair Housing Testing Unit, in which individuals pose as prospective renters to gather information about possible discriminatory practices. The department’s testing revealed that Kormanik told testers children were not allowed in one-bedroom units. He also refused to inform testers about available two-bedroom units until the testers assured him that no children would reside there.
“Although it may appear in discrete forms, housing discrimination against families with children remains a persistent problem,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the department’s Civil Rights Division. “Around the country, the Justice Department will continue to aggressively enforce the Fair Housing Act, as we did here in Johnstown, to ensure that families with children can obtain housing without facing unlawful, discriminatory barriers.”
“We are dedicated to ensuring that families with children are not discriminated against when seeking housing here in Western Pennsylvania,” said U.S. Attorney David J. Hickton of the Western District of Pennsylvania. “Today’s settlement demonstrates our commitment to making sure that owners of rental properties understand their obligations under the Fair Housing Act, and follow the law.”
Under the terms of the consent order, which still must be approved by the court, Kormanik and Kinamrok will establish a settlement fund of $20,000 to compensate victims of their alleged discriminatory practices. The defendants will also pay a $10,000 civil penalty to the United States. The agreement prohibits the defendants from engaging in further acts of discrimination and requires them to implement a non-discrimination policy and submit reports to the United States for three years. Kormanik and any other employee involved in the management of, or the rental of units at, Kinamrok Apartments must also receive training on the Fair Housing Act.
Individuals who believe they may have been discriminated against at Kinamrok Apartments because they sought to reside there with children should contact the department toll-free at 1-800-896-7743, mailbox 995, or e-mail [email protected]. Kinamrok Apartments are located at 400 Luray Avenue, 1001 Tener Street, 1010 Tener Street and 105 Kinamrok Avenue in Johnstown.
The Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact the Department of Housing and Urban Development at 1-800-669-9777.
Kormanik and Kinamrok Complaint Kormanik and Kinamrok Consent DecreeJustice Department Reaches Settlement with Charter Bank to Resolve Allegations of Lending DiscriminationRead the Press Release
Settlement Provides Over $165,000 in Compensation to Hispanic Borrowers Who Obtained Consumer Loans in Texas
The Justice Department announced today that Charter Bank of Corpus Christi, Texas, will maintain uniform pricing policies and pay more than $165,000 as part of a settlement to resolve allegations that it engaged in a pattern or practice of discrimination on the basis of national origin.
The settlement, which is subject to court approval, was filed today along with the department’s complaint in the U.S. District Court for the Southern District of Texas. The complaint alleges that Charter violated the Equal Credit Opportunity Act (ECOA) between 2009 and 2014 by charging higher interest rates to Hispanic borrowers than to similarly situated non-Hispanic borrowers on vehicle-secured consumer loans. The discrimination affected approximately 500 loans made through the bank’s branches. A vehicle-secured consumer loan allows a customer to borrow from the bank by tapping the equity in a car the customer already owns. The complaint alleges that the discrimination occurred because Charter gave its employees discretion to adjust interest rates upward or downward by approximately three percentage points, which was not based on the borrower’s credit risk.
“Lending practices that discriminate against customers because of their national origin violate the law and threaten the foundation of a free and fair economy,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Working families rely on access to credit to borrow money so they can meet the demands of their daily lives. This settlement will ensure Charter Bank complies with the law, provides relief to consumers and safeguards against discrimination going forward.”
“Fair lending by banks, regardless of national origin, is guaranteed by law,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “This case involving Charter Bank shows our commitment to ensure its reality.”
The lawsuit originated from a 2014 referral by the Federal Deposit Insurance Corporation (FDIC) to the department’s Civil Rights Division. Charter is regulated by the FDIC.
Under the settlement, Charter will pay $165,820 to Hispanic victims of discrimination, monitor its loans for potential disparities based on national origin and provide equal credit opportunity training to its employees. Prior to the settlement, Charter revised its loan pricing policies to include objective, non-discretionary and non-discriminatory standards for determining interest rates for consumer loans. This settlement requires Charter to maintain the revised policies for at least four years.
The Justice Department’s enforcement of fair lending laws is conducted by the Civil Rights Division’s Housing and Civil Enforcement Section. Since 2010, the Civil Rights Division has provided over $1.5 billion in monetary relief for individual borrowers and impacted communities through its enforcement of the Fair Housing Act, ECOA and Servicemember’s Civil Relief Act. The Attorney General’s annual reports to Congress on ECOA enforcement highlight the department’s accomplishments in fair lending and are available at www.justice.gov/crt/publications/.
The Civil Rights Division and the U.S. Attorney’s Office of the Southern District of Texas are members of the Financial Fraud Enforcement Task Force, established by President Obama to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. The task force includes representatives from a broad range of federal agencies, regulatory authorities, inspectors general and state and local law enforcement who, working together, bring to bear a powerful array of criminal and civil enforcement resources. The task force is working to improve efforts across the federal executive branch, and with state and local partners, to investigate and prosecute significant financial crimes, ensure just and effective punishment for those who perpetrate financial crimes, combat discrimination in the lending and financial markets and recover proceeds for victims of financial crimes. For more information on the task force, visit www.StopFraud.gov.
Additional information about fair lending enforcement by the Justice Department can be found on the department’s website at www.justice.gov/fairhousing.
Charter Bank Complaint Charter Bank Consent OrderJustice Department Files Discrimination Lawsuit Against Owners and Operators of Houston BarRead the Press Release
The Justice Department filed a lawsuit today against the owners and operators of 360 Midtown, a bar and nightclub located in Houston, alleging that the defendants discriminated against African-American, Hispanic and Asian-American patrons in violation of Title II of the Civil Rights Act of 1964.
The lawsuit, filed today in the U.S. District Court for the Southern District of Texas, alleges that Ayman Jarrah and his company Land Guardian Inc. discriminated against African-American, Hispanic and Asian-American patrons at 360 Midtown, which formerly operated as Gaslamp, by charging such persons a cover charge to enter the establishment, while not imposing such a charge on similarly situated white persons, and denying such persons the right to enter the establishment while admitting similarly situated white patrons.
“When going out to eat at a restaurant or relaxing at bar, no one should ever suffer discrimination because of the color of their skin,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Justice Department will continue to vigorously protect the rights of all people to go about their daily lives free from discrimination at bars, restaurants and other public accommodations around the country.”
“A bar’s cover charge based on skin color is prohibited by law,” said U.S. Attorney Kenneth Magidson of the Southern District of Texas. “All places of public accommodation should treat their customers equally. If not, justice will be sought in our courts of law.”
Title II of the Civil Rights Act of 1964 prohibits discrimination on the basis of race, color, religion or national origin in places of public accommodation, such as restaurants, hotels, movie theaters, nightclubs, stadiums and other places of exhibition or entertainment. Under Title II, the Civil Rights Division can obtain injunctive relief that changes policies and practices to remedy customer discrimination. Title II does not authorize the division to obtain monetary damages for customers who are victims of discrimination.
More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Persons who believe they have experienced or witnessed unlawful discrimination in public accommodations may contact the Housing and Civil Enforcement Section at (202) 514-4713.
Gaslamp ComplaintJustice Department Awards nearly a Half-Million Dollars to DeKalb Police Task Force in Project Safe Neighborhoods ProgramRead the Press Release
ATLANTA – The Office of Justice Programs’ Bureau of Justice Assistance awarded grants totaling $499,899 to create safer neighborhoods through a reduced in gang violence and gun crime. The awards are funded under the 2016 Violent Gang and Gun Crime Reduction (Project Safe Neighborhoods) Program. The goal of PSN is to create safer neighborhoods by focusing on in gang violence and gun crime.
“Gang violence and gun crime are two of the most formidable obstacles we face in ensuring that every American lives in safe and secure communities,” said U.S. Attorney General Loretta E. Lynch. “These vital grants give jurisdictions the resources they need to develop comprehensive, collaborative responses to the most serious and destructive crimes. By combining more effective enforcement with closer cooperation, better data and expanded prevention initiatives, Project Safe Neighborhoods helps communities make meaningful strides towards ending violence, promoting peace, and restoring hope.”
“The PSN grant will enable the DeKalb Task Force to implement a multi-faceted approach to reduce gang violence and gun-related crimes,” said U.S. Attorney John Horn. “The Task Force’s collaborative approach, which relies on the expertise of our federal, state and local law enforcement partners as well as key community leaders, will help communities that struggle with gang and gun violence to implement meaningful and proven anti-gang and anti-violence measures.”
The program’s effectiveness is based on a cooperative approach and unified strategies led by the U.S. Attorney, a collaborative PSN task force of federal, state, and local law enforcement, community members, and other key partners. The partners work to implement gang crime and gun violence enforcement, intervention, and prevention initiatives, using data and research with a local research partner.
The U.S. Attorney’s Office DeKalb PSN Task Force will implement a highly refined and proven strategy to mitigate gun and gang violence within three target areas in DeKalb County including Brookhaven, Chamblee, and the South DeKalb County area. The grant funds also will help the task force agencies exchange intelligence information with other agencies in the Atlanta area.
The 2016 DeKalb PSN Task Force is comprised of the DeKalb County, Brookhaven, and the Chamblee Police Departments. The Task Force will develop and enhance initiatives focusing on crime suppression, education, and prevention. The law enforcement partners will form a Gang Task Force that will work jointly in each of the three jurisdictions. In conjunction with the DeKalb County District Attorney’s Office, training will be conducted for officers on gang recognition and on best practices for compiling evidence for successful gang prosecutions.
Additionally, Rehoboth Baptist Church in Tucker, Georgia, will provide training on a variety of topics to youth in the target areas, and will conduct community outreach to build strong and lasting relationships within the communities. The outreach programs are designed to closely implement the recommendations of the President’s 21st Century Task Force on Policing, and specifically the Implementation Guide issued by the Department of Justice last year.
The efforts of the PSN Task Force will be guided by data collected by members of the task force, and analyses of that data conducted by Applied Research Services, Inc., a national consulting firm based in Atlanta that has extensive experience and a proven track record with PSN initiatives.
“We're excited and honored to participate with all partners involved in this grant to assist us in the reduction of violent crime and making our areas safer for our residents and businesses,” said Gary Yandura, Chief of Police, City of Brookhaven, Georgia.
“We look forward to working with our partners in this initiative to make our communities safer,” said Donny Williams, Chief of Police, Chamblee, Georgia, Police Department.
“We are grateful for the U.S. Attorney's Office for the Northern District of Georgia and their desire to improve our neighborhoods through local partnerships,” said Dr. Troy Bush, Senior Pastor, Rehoboth Baptist Church. “This grant and the partnership of federal, state, and local law enforcement along with community partners invests resources in one of the greatest law enforcement needs we have—crime prevention. This initiative is a strategic and timely effort that will make our neighborhoods and communities safer.”
Each applicant addressed the required PSN design features in its application: (1) Partnerships; (2) Strategic Planning, Crime Analysis, and Research Integration; (3) Training; (4) Outreach; and (5) Accountability and Data-Driven efforts.
In addition to the three participating police departments, the DeKalb County District Attorney’s office and Peace Baptist Church in Decatur, Georgia, made invaluable contributions to the grant application.
The Office of Justice Programs (OJP) provides federal leadership in developing the nation’s capacity to prevent and control crime, administer justice, and assist victims. OJP has six bureaus and offices: The Bureau of Justice Assistance; the Bureau of Justice Statistics; the National Institute of Justice; the Office of Juvenile Justice and Delinquency Prevention; the Office for Victims of Crime, and the Office of Sex Offender Sentencing, Monitoring, Apprehending, Registering, and Tracking (SMART). More information about OJP and its components can be found at www.ojp.gov.
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.
Jury Convicts Northern Ohio Felon of Illegally Possessing a FirearmRead the Press Release
COLUMBUS, Ohio – A U.S. District Court jury convicted Richard Jerel Doyle, 32, of Brooklyn, Ohio of illegally possessing a firearm when Columbus Police arrested him in March 2016.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Brad Earman, Acting Special Agent in Charge, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Columbus Police Chief Kimberley Jacobs announced the verdict returned September 27 following a two-day trial before Chief U.S. District Judge Edmund A. Sargus Jr.
A Columbus Police officer arrested Doyle on March 18, 2016 after a victim called police and said that Doyle drove up next to her while she was walking along Cleveland Avenue. The victim told officers that Doyle assaulted her with a loaded firearm and that she was able to run away from him. She telephoned 911 and reported the incident. An officer met with the victim and asked for a description of the man. According to testimony, the victim looked up, saw Doyle in his 1994 Cadillac Deville and said “That’s him! Oh my God.”
Doyle drove away and officers followed him before stopping him without incident along I-71. They searched his car and found a .380 caliber handgun and ammunition.
On July 27, 2016, a grand jury indicted Doyle, who had been convicted in Cuyahoga County in 2010 on charges of drug trafficking and drug possession and in 2005 on charges of sexual battery and robbery. Federal law prohibits people convicted of felonies from owning, possessing or controlling firearms. The same restrictions apply to ammunition.
Possession of a firearm by a convicted felon is punishable by up to ten years in prison. Judge Sargus will schedule a sentencing hearing following a pre-sentence investigation by the court. Doyle has been in custody since his arrest.
Acting U.S. Attorney Glassman commended the investigation by agencies on the ATF task force, as well as Assistant U.S. Attorneys Salvador A. Dominguez and Jonathan J.C. Grey who represented the United States in this case.