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Friday 23 September 2016
Miami-Dade County Aviation Department Division Director and Four Others Charged in $5,000,000 Fraud and Kickback SchemeRead the Press Release
The Miami-Dade County Aviation Department Division Director and four others were charged in a $5,000,000 fraud and kickback scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Katherine Fernandez Rundle, State Attorney for Miami-Dade County, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Ivan Valdes, 46, of Miami, the Division Director for the Aviation Terminal Building Maintenance for the Miami-Dade County Aviation Department, was charged in an Information with theft in programs receiving federal funds, in violation of Title 18, United States Code, Section 666. A separate Information charges Roy Jesus Bustillo, 37, Rolando Perez, 57, and Jose Barroso, 51, all of Miami, with conspiracy to commit mail fraud and wire fraud, in violation of Title 18, United States Code, Section 371. Another Information charges Ygnacio Valdez, 45, of Miami, an employee in the Procurement Section of the Miami-Dade County Aviation Department, with misprision of a felony, in violation of Title 18, United States Code, Section 4.
“Taxpayers deserve to have their hard-earned monies fund local government, not the pockets of individuals who deprive South Florida residents of the benefit of honest services,” stated U.S. Attorney Ferrer. “Corruption by those who hold the public’s trust corrodes the practice of fair business dealings. The U.S. Attorney’s Office, the FBI and our partners at the State Attorney’s Office will continue to target for prosecution all corrupt officials, regardless of their position.”
“To most people, Ivan Valdes would have been a “Great American Success Story” as he rose from a simple worker to an upper level manager of one of America’s most dynamic airports,” commented Miami-Dade State Attorney Katherine Fernandez Rundle. “Instead, pure greed and a misplaced sense of self-entitlement led him to believe that he had a right to pocket taxpayer’s money. He was wrong. My public corruption prosecutors, federal prosecutors from the U.S. Attorney’s Office, the Miami-Dade Police department and the FBI are constantly working to arrest and convict any public official who steals from the public.”
“When corrupt officials put self-interest and personal enrichment ahead of their obligation to be good stewards of taxpayer dollars, they breach the public's trust,” said George L. Piro, Special Agent in Charge, FBI Miami. “The FBI will continue to investigate and hold accountable any public official who utilizes their position for personal gain. We encourage anyone who may have information about corruption to come forward and report it. This information is vital to our work.”
As set forth in the charging documents, Bustillo was the exclusive area representative in South Florida for the sale of certain LED light fixtures. In or about 2010, Ivan Valdes told Barroso that he would request that the Miami-Dade County Aviation Department purchase the light fixtures represented by Bustillo, if he was paid a share of the proceeds. Valdes and Barroso agreed and during the period of 2010 through and including 2015, the Miami-Dade County Aviation Department issued approximately twenty requests for Invitations to Quote for the purchase of millions of dollars of LED light fixtures. Bustillo provided a quote to each of the vendors interested in competing for the Invitation to Quote. Global Electrical & Lighting Supplies, Inc., owned by Rolando Perez, submitted bids and was awarded the contracts for each and every Invitation to Quote issued. Perez and Bustillo had a secret agreement wherein Perez would be the only vendor who knew the actual price that Bustillo had agreed upon with the lighting manufacturer for the light fixtures and that a fake mounting accessory was included in the Invitations to Quote. Knowing the additional profit that was to be received from each of the contracts, Bustillo and Perez were able to win the Invitation to Quote by keeping Perez’ bid price low. In order to help ensure that Perez was awarded each of the contracts, Ivan Valdes paid thousands of dollars in cash to Ygnacio Valdez, whose duties in the procurement section in the Miami-Dade County Aviation Department, included collecting and tallying the bids and declaring the lowest responsive bidder on the Invitations to Quote.
On two occasions, Ivan Valdes instructed Barroso to direct Perez to bid on an Invitation to Quote for light fixtures, but he further instructed that the light fixtures should not be ordered from the lighting manufacturer. Instead, on one occasion the conspirators used light fixtures already in stock at the Miami-Dade County Aviation Department to satisfy the purchase. On the other occasion, no light fixtures were ever provided, not even from those already in stock. Perez bid and won the contracts and he and his co-conspirators were paid approximately $500,000 for light fixtures that were never provided to Miami-Dade County Aviation Department.
During the course of the conspiracy, the co-conspirators defrauded the Miami-Dade County Aviation Department of approximately $5,250,000. Barroso and Ivan Valdes split fraudulent proceeds of approximately $2.2 million. Bustillo, through his companies, received fraudulent proceeds of approximately $764,000. Perez received fraudulent proceeds of approximately $1.8 million.
If convicted, the defendants face a range of statutory penalties. Ivan Valdes faces a statutory maximum term of imprisonment of 10 years and fines of up to $250,000. Bustillo, Perez, and Barroso face a statutory maximum term of imprisonment of 5 years and a fine of up to $250,000. Ygnacio Valdez face a statutory maximum term of imprisonment of 3 years and a fine of $250,000.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami-Dade County State Attorney’s Office and its Public Corruption Unit in connection with the investigation of this matter. The case is being prosecuted by Assistant U.S. Attorney Jeffrey N. Kaplan.
An Information is only 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.
Member of Sinaloa Cartel Sentenced to Eight Years for Distributing Cocaine and Laundering Drug Proceeds from Chicago to MexicoRead the Press Release
CHICAGO — A high-ranking member of the Sinaloa Cartel was sentenced today to eight years in federal prison for his role in importing cocaine from Mexico and laundering millions of dollars in drug proceeds through textile, gold and other transactions.
EDGAR MANUEL VALENCIA-ORTEGA, 29, of Mexico, pleaded guilty earlier this year to one count of conspiracy to commit money laundering. He admitted in a plea agreement that he helped broker multi-kilogram cocaine transactions and laundered narcotics proceeds to Mexico.
U.S. District Chief Judge Ruben Castillo imposed the 96-month sentence in federal court in Chicago.
“This case is about drug trafficking at the highest levels,” Assistant U.S. Attorney Michael Ferrara argued in the government’s sentencing memorandum. “The damage that those drugs, and the violence resulting from the drug trade, have caused to communities in Chicago and elsewhere is immeasurable.”
The U.S. Attorney’s Office in Chicago has worked closely with federal and local law enforcement agencies to target senior leadership of the Mexican-based Sinaloa Cartel. Valencia-Ortega is one of more than 20 alleged members of the cartel to be indicted in federal court in Chicago. The indictments include charges against the cartel’s alleged leader, JOAQUIN “CHAPO” GUZMAN, who is in custody in Mexico. The Chicago-based investigation has resulted in seizures of approximately $30.8 million, approximately eleven tons of cocaine, 265 kilograms of methamphetamine and 78 kilograms of heroin.
Valencia-Ortega frequently contacted associates of the Sinaloa Cartel regarding narcotics proceeds that needed to be laundered to Mexico from Chicago and Los Angeles. The drug money was made clean through commodities-based laundering involving textiles, electronics and gold, with Valencia-Ortega receiving a commission on each transaction, according to his plea agreement. In connection with one such transaction, federal authorities in May 2013 seized approximately $149,050 from a courier in Chicago.
Valencia-Ortega acknowledged in the plea agreement that he was directly involved in the laundering of drug proceeds totaling between $1.5 million and $3.5 million.
Valencia-Ortega also admitted brokering multi-kilogram cocaine transactions that resulted in deliveries from Mexico to customers in the Los Angeles area. Federal authorities intercepted one such transaction in June 2013, seizing approximately 41 kilograms of cocaine and $325,000 from a courier. Another federal confiscation in September 2013 resulted in the seizure of approximately 93 kilograms of cocaine from two stash-house operators who were responsible for maintaining and delivering the drugs within the United States.
The sentence was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Dennis A. Wichern, Special Agent-in-Charge of the Chicago Field Division of the Drug Enforcement Administration; James D. Robnett, Special Agent-in-Charge of the Internal Revenue Service Criminal Investigation Division in Chicago; and Chicago Police Superintendent Eddie Johnson.
The government is represented by Mr. Ferrara and Assistant U.S. Attorneys Erika Csicsila, Georgia Alexakis, Kathryn Malizia, and Sean Franzblau.
Manhattan U.S. Attorney Sues Garment Wholesaler, Garment Importers, and Executive for Scheme to Avoid Paying Millions in Import Duties on GarmentsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Robert E. Perez, Director, Field Operations New York, U.S. Customs and Border Protection (CBP), and Angel M. Melendez, Special Agent in Charge of New York, U.S. Immigration and Customs Enforcement (ICE) Homeland Security Investigations (HSI), announced today that the United States has filed a civil complaint (the “Complaint”) alleging violations of the False Claims Act by YINGSHUN GARMENTS, INC. (“YINGHSUN”), an importer of women’s apparel manufactured in China; MARIE ROGERS (“ROGERS”), former Managing Director of YINGSHUN; IMPORT GLOBAL DESIGNS INC. (“IMPORT GLOBAL”) and OLGREM LLC (“OLGREM”), successor entities to YINGSHUN; and NOTATIONS, INC. (“NOTATIONS”), a wholesaler of women’s apparel and YINGSHUN’s biggest customer. The Complaint alleges that defendants conspired to defraud and did defraud CBP by engaging in a double-invoice scheme whereby YINGSHUN (and later IMPORT GLOBAL and OLGREM), presented false and fraudulent invoices to CBP for the purpose of avoiding import duties on garments sold to NOTATIONS. The Complaint further alleges that NOTATIONS took actions to aid YINGSHUN in perpetrating and concealing the fraud.
As set forth in the Complaint, filed yesterday in Manhattan federal court, import duties for merchandise imported into the United States are calculated by multiplying the value of the merchandise by the applicable duty rate. An importer or its agent must therefore disclose to CBP the value of all imported merchandise and furnish an invoice to justify that value. The Complaint alleges that YINGSHUN created false and fraudulent commercial invoices for garments purchased by NOTATIONS, which undervalued the garments by 75% or more. YINGSHUN then submitted these false invoices to CBP and, based upon the gross undervaluations, paid significantly less in import duties than it actually owed. NOTATIONS was aware of YINGSHUN’s fraudulent scheme and benefited from it, as YINGSHUN’s underpaying of import duties resulted in NOTATIONS paying lower prices for the garments it was purchasing from YINGSHUN, among other benefits. Rather than taking steps to prevent the fraud, NOTATIONS agreed to create and accept false and misleading documents in order to perpetuate the false impression that YINGSHUN’s fraudulent invoices reflected actual prices paid for the garments. ROGERS managed all aspects of YINGSHUN’s business and facilitated the double-invoice scheme, including by utilizing a “formula” that generated garment prices for NOTATIONS that incorporated the underpayment of import duties. ROGERS also created IMPORT GLOBAL and OLGREM and continued YINGSHUN’s fraudulent scheme through these entities, in order to avoid detection by CBP.
This matter was initiated by a relator pursuant to the qui tam provisions of the False Claims Act, 31 U.S.C. §§ 3729 et seq.
According to the Complaint, the defendants have subjected CBP to millions of dollars in losses from unpaid import duties as a result of the double-invoice scheme.
* * *
Mr. Bharara thanked CBP and HSI for their efforts and ongoing support and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorney Cristy Irvin Phillips is in charge of the case.
Manhattan Federal Court Permanently Bars Tax Preparer Who Orchestrated Tax Fraud Scheme and Four of His Associates from Engaging in Tax Preparation BusinessRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that U.S. District Judge Alison J. Nathan has permanently enjoined LESTER MORRISON, a tax preparer who pled guilty in 2010 to orchestrating a large-scale tax fraud scheme, from working as a federal income tax return preparer or engaging in any conduct that interferes with the administration and enforcement of federal tax laws. Judge Nathan previously issued permanent injunctions against four of Morrison’s associates who also had pled guilty to tax fraud, Paulette Bullock, Gary Hanna, Joy David, and Kevin Vaden, to bar them from engaging in the tax preparation business.
Manhattan U.S. Attorney Preet Bharara said: “The injunctions against Lester Morrison and his cohorts make clear that tax preparers who defraud the IRS will not only face criminal charges, but will also be barred from working in the tax return preparation business. This Office is committed to using all the enforcement tools at its disposal to protect the integrity of the federal tax system and public funds.”
As alleged in the Complaint and the United States’ filings:
Between 2000 and 2008, MORRISON and his associates orchestrated a tax fraud scheme involving the preparation of thousands of false and fraudulent tax returns through a tax preparation business located in the Bronx and Englewood, New Jersey. The fraudulent tax returns prepared by MORRISON and his associates sought improper deductions by, among other things, using stolen identities of deceased children to claim dependent deductions, and claiming phony business losses for non-existent businesses. In 2010, MORRISON and his four associates pled guilty to tax fraud in federal court. As of April 2016, MORRISON and his associates have all been released from prison.
In connection with entering the injunction against MORRISON, the Court found, among other things, that:
- Morrison was the organizer and leader of a tax preparation fraud scheme;
- Morrison caused loss of tax receipts to the United States in excess of $17 million;
- Morrison lied to the IRS during the course of the IRS’s investigation into his conduct; and
- Enjoining Morrison from acting as a tax return preparer is needed to protect the integrity of the federal tax system.
Based on those findings, the Court permanently enjoined MORRISON, either personally or by acting in concert with others, from acting as a federal income tax preparer for compensation, providing tax advice or services for compensation, or representing any person or entity before the IRS for compensation. The Court also permanently enjoined MORRISON from engaging in conduct that interferes with the administration or enforcement of federal tax laws. The Court further empowered the Government to take appropriate steps to monitor MORRISON’s compliance.
The Court previously made similar findings and imposed similar injunctions against each of MORRISON’s four associates.
The case is being handled by the Office’s Tax and Bankruptcy Unit. Assistant U.S. Attorney Li Yu is in charge of the case.
MS-13 Gangster Convicted of 2014 Murder in Holmes Run ParkRead the Press Release
ALEXANDRIA, Va. – Douglas Duran Cerritos, 20, of Falls Church, was convicted yesterday by a federal jury for his role in a gang murder in Northern Virginia.
According to court records and evidence presented at trial, on March 29, 2014, Cerritos and six other gang members murdered Gerson Adoni Martinez Aguilar, a gang recruit, for breaking gang rules. The gang members lured the victim to Holmes Run Park and brutally killed him by stabbing him repeatedly in the back and the neck, ultimately severing his head. When they were done they buried him in a shallow grave in the park. Cerritos was their leader, and he both planned and directed the murder.
A total of 13 defendants were charged in this case for a series of three murders and one attempted murder that took place in Northern Virginia between October 2013 and June 2014. Of those, six defendants pleaded guilty prior to trial. The remaining six went to trial and were convicted of all charges on May 9. Each defendant convicted at trial faces a mandatory sentence of life in prison. Please see the table at the end of this press release for additional information on each defendant.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; Colonel Edwin C. Roessler Jr., Chief of Fairfax County Police Department; Earl L. Cook, Chief of Alexandria City Police Department; and Barry M. Barnard, Chief of Prince William County Police Department, made the announcement after the verdict was accepted by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorneys Julia K. Martinez and Tobias D. Tobler are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:14-cr-306.
Name
Age, Hometown
Charges Convicted of
Sentencing Info
Pedro Anthony Romero Cruz
30, unknown
Conspiracy to Commit Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
30 years
Jose Lopez Torres
26, Falls Church
Conspiracy, Attempted, and Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
Life sentence plus 20 years
Jaime Rosales Villegas
31, Richmond
Conspiracy and Attempted Murder in Aid of Racketeering; Possession of a Firearm During a Crime of Violence
22 years and 8 months
Juan Carlos Marquez Ayala
23, Falls Church
Murder in Aid of Racketeering
Life sentence
Omar Dejesus Castillo
27, Arlington
Two Counts of Murder in Aid of Racketeering
Two life sentences
Alvin Gaitan Benitez
23, Falls Church
Murder in Aid of Racketeering, Accessory After the Fact
Facing mandatory life sentence plus additional time
Christian Lemus Cerna
20, Falls Church
Murder in Aid of Racketeering
Facing mandatory life sentence
Araely Santiago Villanueva
20, Falls Church
Two Counts of Murder in Aid of Racketeering
Life sentence
Manuel Ernesto Paiz Guevara
21, Falls Church
Murder in Aid of Racketeering
Facing mandatory life sentence
Jose Del Cid
20, Alexandria
Two Counts of Murder in Aid of Racketeering
Two life sentences
Jesus Alejandro Chavez
26, Alexandria
Murder in Aid of Racketeering; Use of a Firearm During a Crime of Violence Resulting in Death; Felon in Possession of a Firearm
Two life sentences plus 10 years
Genaro Sen Garcia
21, unknown
Murder in Aid of Racketeering
Life sentence
MEDIA ADVISORY-- U.S. Attorney Damon P. Martinez to Deliver Luncheon Address During 2nd Annual NAACP Albuquerque Civil Rights & Diversity ConferenceRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez will deliver the luncheon address during today’s session of the 2nd Annual NAACP Albuquerque Civil Rights & Diversity Conference. The U.S. Attorney will deliver his remarks, entitled “Civil Rights in New Mexico: No One is Above the Law, and No One is Below It,” at 12:00 p.m. today, Friday, September 23, 2016, at the Alvarado E Ballroom of the Hotel Albuquerque at Old Town at 800 Rio Grande Blvd. NW in Albuquerque, NM.
WHO:
U.S. Attorney Damon P. Martinez
WHEN:
Friday, September 23, 2016 at 12:00 p.m.
WHERE:
Alvarado E Ballroom
Hotel Albuquerque at Old Town
800 Rio Grande Blvd. NW
Albuquerque, NM 87104
OPEN PRESS
NOTE: All media must present government-issued photo I.D. (i.e., driver’s license) and valid media credentials. Inquiries regarding logistics should be directed to Alyssa Ferda at 505-224-1480 (office), 505-366-1463 (cellphone) or [email protected].
Local Events Educate Students on Dangers of Opiate AbuseRead the Press Release
TALLAHASSEE, FLORIDA – As designated by Presidential proclamation, September 18 through 24 is National Prescription Opioid and Heroin Epidemic Awareness Week. In observance, the United States Attorney’s Office for the Northern District of Florida is participating in several events throughout October to educate students on the rising public health crisis of opiate abuse.
Recently, the Federal Bureau of Investigation (FBI) and the Drug Enforcement Administration (DEA) co-produced a 45-minute documentary titled Chasing the Dragon: The Life of an Opiate Addict. The film features several stark, first-hand accounts of the dangers of opiate addiction.
Beginning this week and continuing through October, the United States Attorney’s Office, the FBI, DEA, the United States Probation Office, and other agencies will host several screenings of Chasing the Dragon at local colleges to educate students on the dangers of opiate abuse and to discuss how the issue could impact their lives and future careers. Events took place this week at Florida State University, the University of West Florida, and Pensacola State College, with additional events to be announced as scheduled.
“The Northern District of Florida is joining United States Attorney’s Offices throughout the nation, as well as law enforcement, health professionals, and concerned citizens in our communities to bring awareness to this important issue,” said United States Attorney Christopher P. Canova. “The heroin and opioid epidemic requires a coordinated response to address prevention, drug enforcement, and treatment.”
In 2014, more than 27,000 lives were lost to heroin and opioids, and reports from the field indicate that this number has increased in 2015 and this year. During this week and beyond, Americans can learn more about the disease of addiction, join with community members to support evidence-based prevention and treatment programs, and stand with those who are suffering or recovering from a substance use disorder to let them know they are not alone.
As part of this initiative, more than 70 U.S. Attorneys around the country have already committed to doing more than 160 different events, and more than 90 events are planned at Bureau of Prison facilities.
For more information and resources about heroin and opioid awareness, visit www.justice.gov/opioidawareness. More information about Chasing the Dragon: The Life of an Opiate Addict can be found at the following link, including a free download of the film and teacher discussion guide: www.fbi.gov/chasingthedragon.
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. To access available public court documents online, please visit the U.S. District Court for the Northern District of Florida website. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact:
Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Last “Bulls Cap Bandit” SentencedRead the Press Release
DALLAS — A Dallas man who admitted to his role in a conspiracy to commit several violent armed robberies in Dallas in 2014, Savalas Christopher Love, 32, was sentenced yesterday afternoon by U.S. District Judge Jane J. Boyle to 147 months in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
Love pleaded guilty in November 2015 to one count of conspiracy to interfere with commerce by robbery and one count of using, carrying and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of a crime of violence.
Love’s coconspirators, Cedric Ray Jones, 27, and his brother, Damien Antoine Jones, 31, were sentenced earlier this month. Judge Boyle sentenced Cedric Jones to 573 months and Damien Jones to 708 months in federal prison. Each pleaded guilty late last year to one count of conspiracy to interfere with commerce by robbery, two counts of using, carry, and brandishing a firearm during and in relation to, and possessing and brandishing a firearm in furtherance of, a crime of violence, and three counts of interference with commerce by robbery.
The FBI dubbed the robbers the “Bulls Cap Bandits,” as Cedric and Damien Jones wore Chicago Bulls caps during the robberies.
According to documents filed in the case, from approximately May 28, 2014, through June 17, 2014, the three defendants conspired together to commit these armed robberies:
May 28, 2014 AutoZone
10418 Garland Road, DallasJune 2, 2014 AutoZone
2842 South Buckner Blvd., DallasJune 12, 2014 Cash Plus Pawn
9103 East R.L. Thornton Freeway, Dallas
June 17, 2014 AutoZone
9711 Plano Road, DallasDuring each of the robberies, Cedric and Damien Jones wore disguises and brandished firearms. In a March 7, 2014, robbery of Cash Plus Pawn, Cedric and Damien Jones stole cash and two semi-automatic rifles, and then fled on foot.
In the May 28, 2014, and June 2, 2014, AutoZone robberies, Cedric and Damien Jones entered the store, brandishing the semi-automatic rifles, while Love remained in the vehicle as the “getaway driver.” The three fled in Love’s vehicle. Love knew they brandished firearms during the robbery.
On June 12, 2014, Cedric and Damien Jones, Love, and another individual traveled to the Cash Plus Pawn store on East R.L. Thornton Freeway in Dallas, in Love’s vehicle, with the specific intent to commit robbery. Upon arriving in the parking lot, Damien Jones and the other individual exited the vehicle and approached the store’s entrance with firearms, but abandoned the robbery when confronted by a store employee. They fled in Love’s vehicle. Love knew they brandished firearms during the robbery.
In the June 17, 2014, AutoZone robbery, Cedric and Damien Jones traveled together in Love’s vehicle to the store with the intent to commit robbery. Love traveled separately to the location with the specific intent to facilitating the commission of the robbery. Love “cased” the store and reported the absence of security personnel to Damien Jones, knowing any information he provided would be used to facilitate the robbery and avoid detection and apprehension by police. Cedric and Damien Jones then entered the store, brandishing semi-automatic rifles, and then fled the robbery in their vehicle. Love knew they brandished firearms during the robbery. During a subsequent chase with law enforcement, Cedric Jones operated the vehicle in a manner to avoid apprehension and created a substantial risk to other motorists on the roads. During the pursuit, shots were fired in the direction of the pursuing officers to further avoid apprehension.
The case was investigated by the FBI and the Dallas Police Department. Assistant U.S. Attorneys Keith Robinson and Brian Poe were in charge of the prosecution.
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Lansing Man Sentenced in Federal Mortgage Fraud ProbeRead the Press Release
Sam Ames Sent to Prison for Role in Mortgage Fraud Conspiracy
GRAND RAPIDS, MICHIGAN — U.S. Attorney Patrick Miles announced today that Sam Ames, 33, of Charlotte, Michigan was sentenced to eight months in prison for his role in a conspiracy to commit mortgage fraud in connection with his dealings with CDC Investments and Hometowne Financial. He was also ordered to pay a fine of $7,500 and restitution in the amount of $285,000 to the financial institutions defrauded. The sentence was imposed by Chief U.S. District Judge Robert J. Jonker.
On March 15, 2016, Ames pled guilty to conspiring with others to commit bank fraud in connection with real estate in and around Lansing, Michigan, from in or about 2006 to 2007. The conspiracy, which resulted in losses to mortgage lenders exceeding $550,000, enabled the perpetrators to use bank funds to enrich themselves as a result of sham real estate transactions.
Judge Jonker decided to sentence Ames below the recommended range of 30-37 months because he felt Ames had turned his life around since committing his crimes. But the Judge rebuffed a defense request for a probationary sentence. While the Judge declared himself persuaded that Ames was a different person than the one who defrauded banks and mortgage companies, the Judge stated that it was important for the public to see that a prison term awaits anyone who engages in mortgage fraud as rampant as the Ames conspiracy was.
Ames’s prosecution is the result of a continuing investigation by the Mortgage Fraud Task Force, comprised of federal investigators including the FBI, U.S. Secret Service, the U. S. Postal Inspection Service and the HUD Office of Inspector General. The task force also includes the Lansing Police Department, investigators employed by the Michigan Attorney General’s Office and other state agencies. To date, eighteen individuals have been convicted of mortgage fraud as part of this effort, resulting in prison sentences for all the defendants and restitution orders exceeding $14,000,000.
U.S. Attorney Miles praised the cooperation between federal, state and local investigators participating in the Mortgage Fraud Task Force. The prosecution was handled by Assistant U.S. Attorney Timothy VerHey.
END
Jury Convicts Shiloh Man of Robbing Gas Station TwiceRead the Press Release
Donald S. Boyce, United States Attorney for the Southern District of Illinois, announced that late Wednesday morning, a federal jury in Benton found Michael L. Jackson, III, 21, of Shiloh, Illinois, guilty of two counts of Interference with Commerce by Robbery and one count of Use of a Firearm in Relation to a Crime of Violence.
Evidence at trial showed that on December 21, 2011, Jackson entered Midwest Petroleum located at 1551 Hartman Lane wielding a knife and demanded money from the clerk. He was wearing a ski mask which covered his entire face, and the clerk was unable to make an identification. He fled southbound on foot and discarded the clothing and ski mask he wore during the robbery in a field adjacent to Midwest Petroleum. On March 13, 2014, Jackson again entered Midwest Petroleum, brandished a firearm, and demanded money and Newport cigarettes from the clerk. He again was wearing a ski mask which covered his entire face, and the clerk was unable to make an identification. He fled southbound on foot and discarded the clothing and ski mask he wore during the robbery in the same field adjacent to Midwest Petroleum. Investigators from the Shiloh Police Department found the clothing after each robbery and collected it as evidence.
In listening to the surveillance videos, Shiloh investigators believed the robber was Jackson based upon the voice. The clothes worn and discarded in the field from both robberies were submitted to the Illinois State Police Crime Laboratory for DNA testing, and Jackson’s DNA was found on all of the clothing tested.
Sentencing has been scheduled for January 24, 2017, in front of the Honorable Stacy Yandle. The investigation was conducted by the Shiloh Police Department. The case was prosecuted by Assistant United States Attorney Laura V. Reppert and Special Assistant United States Attorney Emily Wasserman.
Jamestown Woman Sentenced on Fraud ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul, Jr. announced today that Alicia Wilson, 37, of Jamestown, NY, who was convicted of access device fraud, was sentenced to 12 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also ordered to pay restitution totaling $28,508.44.
Assistant U.S. Attorney Marie Grisanti, who handled the case, stated that Wilson, an in-home health care aid, applied for credit cards in the names of the elderly couple she cared for. The defendant used the credit cards online and at local retail establishments in Jamestown and Erie, Pennsylvania, and withdrew cash from local banks. Losses suffered by Bank of America, Capital One and Citizen’s Bank totaled more than $25,000.
The sentencing is the result of an investigation by the United States Postal Inspection Service under the direction of Inspector in Charge Shelly Binkowski.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Lynch in Missoula on September 22, 2016 and entering pleas of Not Guilty were:
- TERRY LYNN STURDEVANT, JR., a 29-year-old resident of Butte, appeared on charges of felon in possession of a firearm. If convicted of the charge contained in the indictment, STURDEVANT faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. PACER Case Reference. 16-11
Appearing before U.S. Magistrate Johnston in Great Falls on September 19, 2016 and entering pleas of Not Guilty were:
- LEON BOYD MESSERLY, a 55-year-old resident of Harlem, appeared on charges of assault resulting in serious bodily injury and assault with a dangerous weapon. If convicted of the most serious charge contained in the indictment, MESSERLY faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-62
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Independence Woman Pleads Guilty to Murder-for-Hire SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., woman pleaded guilty in federal court today to using a telephone in the commission of a murder-for-hire scheme.
Teresa Owen, 62, of Independence, pleaded guilty before U.S. Chief District Judge Greg Kays to the charge contained in a July 7, 2015, federal indictment. Owen has been in federal custody without bail since her arrest on June 18, 2015.
By pleading guilty today, Owen admitted that she had contact with two separate individuals via telephone and offered them money to kill a person identified in court documents as “B.H.” Owen spoke with an acquaintance and later with an undercover police officer to discuss (or arrange to meet to discuss) the murder of B.H.
Owen also admitted that she met with an undercover officer in Independence on June 10 and 11, 2015. During the meetings, Owen asked the undercover officer to kill B.H. and agreed to pay the undercover officer $700 for the murder of B.H. Owen used her phone to access Facebook photos of B.H. in order to identify B.H. to the undercover officer. She also provided written identification and location information for B.H., and made a payment of $200 to the undercover officer on June 11, 2015.
Under the terms of today’s plea agreement, Owen will be sentenced to at least three years in federal prison without parole, up to four years in federal prison without parole. 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Alison D. Dunning. It was investigated by the Independence, Mo., Police Department and the FBI.
Importing Company’s Founder Sentenced to 124 Months’ for His Role in $26 Million Ponzi SchemeRead the Press Release
CENTRAL ISLIP, NY – Earlier today, Eric Aronson, the founder and head of Permapave Industries LLC and Permapave USA Corporation (Permapave), was sentenced to 124 months’ imprisonment to be followed by three years’ supervised release, and ordered to forfeit $26 million in criminal proceeds. Restitution amount to be determined. Aronson pleaded guilty to securities fraud on September 12, 2014.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York. Mr. Capers expressed his grateful appreciation to the Federal Bureau of Investigation, New York Field Office, which led the government’s investigation in this case.
Aronson was charged with securities fraud for orchestrating a multi-million dollar Ponzi scheme which, from approximately August 2006 to December 2010, defrauded more than 200 investors out of approximately $26 million. He and his coconspirators issued promissory notes to investors and promised to use the proceeds to finance shipments of Permapave paving stones from Australia to the United States. In reality, they operated a Ponzi scheme whereby some investors were paid returns on their investment from the funds Aronson obtained from other defrauded investors. Aronson converted millions of dollars of investor funds for personal expenditures, including vacations, watches, jewelry, and automobiles.
Today’s sentencing took place before Senior United States District Judge Arthur D. Spatt.
The government’s case is being handled by the Office’s Business and Securities Fraud Section. Assistant United States Attorney William P. Campos is in charge of the prosecution, with assistance provided by Assistant United States Attorney Brian Morris of the Office’s Civil Division, which is responsible for the forfeiture of assets.
This prosecution was the result of efforts by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated, and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. Attorneys’ Offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory, and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state, and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions, and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, visit http://www.StopFraud.gov.
The Defendant:
ERIC ARONSON
Age: 48
Syosset, New YorkE.D.N.Y. Docket No. 12 - CR - 245 (ADS)
Illegal Alien Pleads Guilty to Possession of a HandgunRead the Press Release
Gulfport, Miss – Pablo Mendoza-Sanchez pled guilty before Chief U.S. District Judge Louis Guirola, on September 20, 2016, to possession of a firearm by an illegal alien, U. S. Attorney Gregory K. Davis announced today.
Mendoza-Sanchez, 26, a native of Mexico, was discovered with the handgun during a traffic stop by Harrison County Deputies. Fingerprints confirmed that Mendoza-Sanchez had been removed three times from the United States. He will be sentenced on December 14, 2016 and faces a maximum penalty of ten years in prison and a $250,000 fine.
The case was investigated by Homeland Security Investigations and the Harrison County Sheriff’s Department. It is being prosecuted by Assistant United States Attorney Annette Williams.
ISIL-Linked Kosovo Hacker Sentenced to 20 Years in PrisonRead the Press Release
WASHINGTON – Ardit Ferizi, aka Th3Dir3ctorY, 20, a citizen of Kosovo, was sentenced today to 20 years in prison for providing material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, and accessing a protected computer without authorization and obtaining information in order to provide material support to ISIL.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office and Special Agent in Charge Charles P. Spencer of the FBI’s Jacksonville Field Office made the announcement after the defendant was sentenced by U.S. District Judge Leonie M. Brinkema.
"This case represents the first time we have seen the very real and dangerous national security cyber threat that results from the combination of terrorism and hacking,” said Assistant Attorney General Carlin. “This was a wake-up call not only to those of us in law enforcement, but also to those in private industry. This successful prosecution also sends a message to those around the world that, if you provide material support to designated foreign terrorist organizations and assist them with their deadly attack planning, you will have nowhere to hide. As this case shows, we will reach half-way around the world if necessary to hold accountable those who engage in this type of activity. I want to thank the corporation that worked with law enforcement to solve this crime, and the agents, analysts and prosecutors who worked on this groundbreaking case."
Ferizi, who was detained by Malaysian authorities on a provisional arrest warrant on behalf of the U.S., was charged by criminal complaint on Oct. 6, 2015. The criminal complaint was unsealed on Oct. 15, 2015. Ferizi subsequently consented to extradition.
Ferizi pleaded guilty on June 15. According to court documents, Ferizi admitted that on or about June 13, 2015, he gained system administrator-level access to a server that hosted the website of a U.S. victim company. The website contained databases with personally identifiable information (PII) belonging to tens of thousands of the victim company’s customers, including members of the military and other government personnel. Ferizi subsequently culled the PII belonging to U.S. military members and other government personnel, which totaled approximately 1,300 individuals. That same day, on June 13, Ferizi provided the PII belonging to the 1,300 U.S. military members and government personnel to Junaid Hussain, a now-deceased ISIL recruiter and attack facilitator. Ferizi and Hussain discussed publishing the PII of those 1,300 victims in a hit list.
According to court documents, on Aug. 11, 2015, in the name of the Islamic State Hacking Division (ISHD), Hussain posted a tweet that contained a document with the PII of the approximately 1,300 U.S. military and other government personnel that Ferizi had taken from the victim company and provided to Hussain. The document stated, in part, that “we are in your emails and computer systems, watching and recording your every move, we have your names and addresses, we are in your emails and social media accounts, we are extracting confidential data and passing on your personal information to the soldiers of the khilafah, who soon with the permission of Allah will strike at your necks in your own lands!” Ferizi admitted that he provided the PII to ISIL with the understanding that ISIL would use the PII to “hit them hard.”
This case is being prosecuted by Special Assistant U.S. Attorney Brandon Van Grack of the Eastern District of Virginia and Trial Attorney Gregory Gonzalez of the National Security Division’s Counterterrorism Section. The Malaysian authorities and the Justice Department’s Office of International Affairs also provided significant assistance.
ISIL-Linked Hacker Sentenced to 20 Years in PrisonRead the Press Release
ALEXANDRIA, Va. – Ardit Ferizi, aka Th3Dir3ctorY, 20, a citizen of Kosovo, was sentenced today to 20 years in prison for providing material support to the Islamic State of Iraq and the Levant (ISIL) and accessing a protected computer without authorization and obtaining information in order to provide material support to ISIL.
According to court documents, Ferizi admitted that on or about June 13, 2015, he gained system administrator-level access to a server that maintained the website of a victim company located in the United States, which also contained databases with personally identifiable information (PII) belonging to tens of thousands of the victim company’s customers, including members of the military and other government personnel. He subsequently culled the PII belonging to United States military members and other government personnel, which totaled approximately 1,300 individuals. That same day, on June 13, 2015, Ferizi admitted that he provided the PII belonging to the 1,300 United States military members and government personnel to Junaid Hussain, aka Abu Hussain al-Britani, a now-deceased member of ISIL.
According to the statement of facts, on Aug. 11, 2015, in the name of the Islamic State Hacking Division (ISHD), Hussain posted a tweet that contained a document with the PII of the approximately 1,300 U.S. military and other government personnel that Ferizi had taken from the victim company and provided to Hussain. The document stated, in part, that “we are in your emails and computer systems, watching and recording your every move, we have your names and addresses, we are in your emails and social media accounts, we are extracting confidential data and passing on your personal information to the soldiers of the khilafah, who soon with the permission of Allah will strike at your necks in your own lands!” Ferizi admitted that he provided the PII to ISIL with the understanding that ISIL would use the PII to “hit them hard.”
Ferizi was detained by Malaysian authorities on a provisional arrest warrant on behalf of the United States and was charged by criminal complaint on Oct. 6, 2015. The criminal complaint was unsealed on Oct. 15, 2015, and Ferizi subsequently waived consent to extradition. Ferizi pleaded guilty on June 15, 2016.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Charles P. Spencer, Special Agent in Charge of the FBI’s Jacksonville, Florida, Division, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema.
This case was prosecuted by Special Assistant U.S. Attorney Brandon Van Grack and Trial Attorney Gregory Gonzalez of the National Security Division’s (NSD) Counterterrorism Section. The Malaysian authorities and the Justice Department’s Office of International Affairs also provided significant assistance.
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-42.
INTERPOL Washington Provides Support to ICE OperationsRead the Press Release
WASHINGTON – U.S. Immigration and Customs Enforcement (ICE) arrested 36 fugitives during concurrent nationwide operations this week – Operation Safe Nation and Operation No Safe Haven III. Of those arrested, 17 were sought because they may pose a threat to public safety or national security, including individuals suspected of providing material support to a terrorist organization and 19 were sought for their known or suspected roles in human rights violations overseas.
During the operations that concluded Wednesday, the ICE National Fugitive Operations Program arrested the fugitives in coordination with the ICE Human Rights Violators and War Crimes Center, the ICE Counterterrorism Section and ICE field offices around the country.
ICE credits the success of this operation to the combined efforts of the U.S. National Central Bureau-Interpol Washington which provided critical support with deconfliction, foreign criminal history, and identity confirmation information.
“Interpol’s investigative tools provide U.S. law enforcement with a suite of databases that provide real-time biometric, travel document, and criminal background information,” according to Interpol Washington Director Geoffrey S. Shank. “These operations exemplify what can be achieved when U.S. and international law enforcement agencies have immediate access to information."
Read full article here: https://www.ice.gov/news/releases/ice-arrests-36-fugitives-across-us-during-operation-safe-nation-and-operation-no-safe
Husband of Former United States Tax Court Judge Pleads Guilty to Obstructing an IRS AuditRead the Press Release
United States Attorney Andrew M. Luger today announced the guilty plea of ROBERT E. FACKLER, 63, with obstructing an IRS audit. FACKLER, who was indicted on April 4, 2016, pleaded guilty today before United States District Judge Wilhelmina M. Wright in U.S. District Court in St. Paul, Minn.
According to the plea agreement and FACKLER’s testimony at the plea hearing, FACKLER was married to Diane Kroupa, a former judge who was appointed to the United States Tax Court on June 13, 2003 for a term of 15 years. During the same period, FACKLER was a self-employed lobbyist and political consultant who owned and operated a business known as Grassroots Consulting. From 2004 to 2013, FACKLER and Kroupa owned a home in Minnesota. From 2007 to 2013, they also leased a second residence in Maryland, where Kroupa lived while fulfilling her duties as a Tax Court Judge in Washington DC.
According to the plea agreement and FACKLER’s testimony at the plea hearing, between 2002 and 2012, FACKLER and Kroupa conspired to obstruct the Internal Revenue Service (IRS) from accurately determining their joint income taxes. As part of the conspiracy, FACKLER and Kroupa worked together each year to compile numerous personal expenses for inclusion as supposed “business expenses” for Grassroots Consulting in their joint tax return. Those expenses included: rent and utilities for the Maryland home; utilities, upkeep and renovation expenses of the Minnesota home; pilates classes; spa and massage fees; jewelry and personal clothing; wine club fees; Chinese language tutoring; music lessons; personal computers; and expenses for vacations to Alaska, Australia, the Bahamas, China, England, Greece, Hawaii, Mexico and Thailand. In total, from 2004 through 2010, the defendants fraudulently deducted at least $500,000 of personal expenses as purported Schedule C business expenses. At times, Kroupa prepared and provided to FACKLER handwritten summaries of personal expenses falsely described according to business expense categories. On other occasions, Kroupa herself compiled and provided to their tax preparer the fraudulent personal expense.
According to the plea agreement and FACKLER’s testimony at the plea hearing, as part of the conspiracy, FACKLER also caused Grassroots Consulting business receipts to be understated by approximately $450,000 by fraudulently deducting purported business expenses which had previously been reimbursed. As a result, the defendants caused the amount of adjusted gross income, taxable income, and total tax shown on their income tax returns to be falsely understated.
According to the plea agreement and FACKLER’s testimony at the plea hearing, FACKLER and Kroupa made a series of other false claims on their tax returns, including failing to report approximately $44,520 that Kroupa received from a 2010 land sale in South Dakota. The defendants falsely claimed financial insolvency to avoid paying tax on $33,031 on cancellation of indebtedness income.
According to the plea agreement and FACKLER’s testimony at the plea hearing, FACKLER and Kroupa purposely concealed documents from their tax preparer and an IRS Tax Compliance Officer during an audit for their 2004 and 2005 tax returns.
According to the plea agreement and FACKLER’s testimony at the plea hearing, during a second audit in 2012, FACKLER and Kroupa caused false and misleading documents to be delivered to an IRS employee in order to convince the IRS employee that certain personal expenses were actually business expenses of Grassroots Consulting. After the IRS requested documents pertaining to their tax returns, Kroupa removed certain items from their personal tax files before FACKLER gave them to their tax preparer because the documents could reveal they had illegally deducted numerous personal expenses. FACKLER and Kroupa together concocted “false explanations” justifying payments questioned by the IRS. Later, when they learned the 2012 audit might progress into a criminal investigation, Kroupa instructed FACKLER to lie to the IRS about her involvement in preparing the portion of their tax returns related to Grassroots Consulting.
According to the plea agreement and FACKLER’s testimony at the plea hearing, between 2004 and 2010, FACKLER and Kroupa purposely understated their taxable income by approximately $1,000,000 and purposely understated the amount of tax they owed by at least $450,000.
This case is the result of an investigation conducted by the Criminal Investigation Division of the IRS and the United States Postal Inspection Service.
Assistant U.S. Attorneys Benjamin Langner and Timothy Rank are prosecuting the case.
Defendant Information:
ROBERT E. FACKLER, 63
Minnetonka, Minn.
Convicted:
- Obstruction of an IRS audit, 1 count
###
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United States Attorney’s Office, District of Minnesota: (612) 664-5600
Huntsville Pill Mill Doctor Charged with Illegal Prescribing and Health Care FraudRead the Press Release
BIRMINGHAM – Federal prosecutors on Thursday charged a former Huntsville physician, who was the nation’s highest Medicare prescriber of opioid painkillers at the height of his practice, with illegally prescribing controlled substances and with a health care fraud involving $9.5 million in unneeded and unused urine tests, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
In a two-count information filed in U.S. District Court, the U.S. Attorney’s Office charged SHELINDER AGGARWAL, 48, of Huntsville, with one count of distributing a controlled substance outside the scope of professional practice and not for a legitimate medical purpose in July 2012, and with one count of conspiring to execute a health care fraud scheme against Medicare and Blue Cross Blue Shield of Alabama between Jan. 1, 2011, and March 31, 2013.
Prosecutors also filed a plea agreement with Aggarwal in which he agrees that he will plead guilty to the charges and forfeit his former clinic on Turner Street Southwest in Huntsville, along with $6.7 million. Aggarwal earlier repaid $2.8 million to Medicare and $45,843 to Blue Cross following audits, according to his plea agreement. The agreement stipulates a 15-year prison sentence. A federal judge must accept the terms of the agreement before it is final.
Aggarwal surrendered his Alabama medical license in 2013, along with his Alabama and federal Drug Enforcement Administration certificates to prescribe controlled substances, after the Alabama Board of Medical Examiners initiated an investigation.
“Shelinder Aggarwal treated his medical license like a license to deal opiate drugs,” Vance said. “He also defrauded Medicare and Blue Cross Blue Shield of more than $9 million dollars by performing drug tests he never used to treat his patients. Thanks to this prosecution, Aggarwal is no longer a drug dealer masquerading as a doctor. His pill mill is closed, he must repay the money he stole from health insurers, and he will serve time for his crimes,” she said. “I am grateful to our prosecutors and the investigators who brought this individual to justice.”
“Aggarwal was trusted with resources to care for others and used that access to defraud the health care system, thus costing tax payers millions of dollars,” Stanton said. “In addition, he directly contributed to the opioid drug epidemic which is plaguing our nation, and potentially endangered the lives of his patients. I applaud the work of my agents and our partners to shut down Aggarwal’s pill mill and hold him accountable for his actions.”
Aggarwal was a pain management doctor who operated Chronic Pain Care Services in Huntsville. His medical practice was a pill mill, according to the charges and plea agreement. The documents state that in 2012, about 80 to 145 patients a day visited Aggarwal’s clinic, with him seeing the majority of patients and writing all prescriptions. Initial patient visits typically lasted five minutes or less, and follow-ups two minutes or less. The documents state that Aggarwal did not obtain prior medical records for his patients, did not treat patients with anything other than controlled substances, often asked patients what medications they wanted and filled their requests, prescribed controlled substances to patients who he knew were using illegal drugs, and did not take appropriate measures to ensure that patients did not divert or abuse controlled substances. The plea agreement summarizes an interaction with a patient, which was captured on video. In it, Aggarwal notes that the DEA viewed him as the “biggest pill-pusher in North Alabama” and that many of his patients were “dropping like flies, they are all dying.”
The documents cite the Prescription Drug Monitoring Program for Alabama, which tracks the dispensing of controlled substances, as well as Medicare data, to document Aggarwal’s prescribing practices.
According to the PDMP, Alabama pharmacies filled about 110,013 of Aggarwal’s prescriptions for controlled substances in 2012. That would equal about 423 prescriptions per day if he worked five days a week, and resulted in about 12.3 million pills. The PDMP rated Aggarwal as the highest prescriber of controlled substances filled in Alabama in 2012, with the next highest prescriber writing a third as many prescriptions.
Medicare data shows Aggarwal was the highest prescriber in the United States of Schedule II controlled substances under Medicare in 2012. Schedule II substances include the opioid painkillers oxycodone, oxymorphone, hydromorphone and morphine.
As to Aggarwal’s health care fraud scheme, he is charged with requiring patients to undergo unreasonable and unnecessary urine drug tests that he did not need or use in their treatment. According to the documents, the tests he ran depended not on patients’ treatment, but on how much he could bill for tests. Aggarwal often ignored urine test results showing patients were using illegal drugs, the documents state.
Between January 2011 and March 2013, urine drug tests accounted for about 80 percent of paid claims Aggarwal submitted to Medicare and Blue Cross, for a total reimbursement of $9.5 million. According to his charges and plea agreement, “Aggarwal’s primary motivation for testing patients’ urine specimens, and submitting those claims for payment, was financial gain.”
The FBI investigated the case, based partly on an investigation conducted by the ABME. Assistant U.S. Attorneys Chinelo Dike-Minor and Russell Penfield are prosecuting.
Harford County Man Sentenced to Five Years in Federal Prison for Distribution and Possession of Child PornographyRead the Press Release
Baltimore, Maryland – U.S. District Judge J. Frederick Motz sentenced Michael Francis Chaney, age 72, of Whiteford, Maryland, today to five years in federal prison, followed by five years of supervised release, for possession and distribution of child pornography. Judge Motz also ordered that upon his release from prison Chaney must register as a sex offender in the place where he resides, where he is an employee, and where he is a student, under the Sex Offender Registration and Notification Act (SORNA).
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Colonel William M. Pallozzi, Superintendent of the Maryland State Police.
According to his plea agreement, over the course of several years Chaney used several email addresses to both send and receive images of child pornography. On February 6, 2015, a search warrant was executed at Chaney’s residence and his laptop, external hard drive, and other digital media were seized. Forensic analysis of the items revealed that all had images depicting minors engaged in sexually explicit conduct, including prepubescent minors, and minors engaged in sadistic and/or masochistic conduct or other depictions of violence. There were approximately 1,941 videos and 23,381 image of child pornography which had been downloaded from internet websites. Chaney admitted that he sought child pornography on the internet and actively traded the images and videos with others, distributing them via the internet.
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.justice.gov/psc. For more information about internet safety education, please visit www.justice.gov/psc and click on the "resources" tab on the left of the page.
United States Attorney Rod J. Rosenstein commended HSI Baltimore and the Maryland State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok, who prosecuted the federal case.
Government Intervenes in Suit Against Energy & Process Corporation Alleging Use of Defective Steel Rebar and Quality Control Failures in Nuclear Waste Treatment FacilityRead the Press Release
The government has intervened in a False Claims Act lawsuit against Energy & Process Corporation (E&P), of Tucker, Georgia, alleging that E&P knowingly failed to perform required quality assurance procedures and supplied defective steel reinforcing bars (rebar) in connection with a contract to construct a Department of Energy (DOE) nuclear waste treatment facility, the Justice Department announced today.
“The Department of Justice is committed to ensuring that construction suppliers who are paid a premium to meet high safety standards actually supply the goods and perform the work for which they are paid,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “When contractors cut corners, they not only cheat American taxpayers, but they also can put public safety at risk, particularly when their misconduct affects a facility that houses and processes nuclear materials.”
The lawsuit alleges that although the DOE paid E&P a premium to supply rebar that met stringent regulatory standards for the Mixed Oxide Fuel Fabrication and Reactor Irradiation Services facility in the DOE’s Savannah River site near Aiken, South Carolina, E&P failed to perform most of the necessary quality assurance measures, while falsely certifying that those requirements had been met. The lawsuit further alleges that one-third of the rebar supplied by E&P and used in the construction was found to be defective.
“To ensure that the nuclear facility would be safe, the government paid E&P a sizable premium for exhaustive quality control procedures,” said U.S. Attorney John Horn of the Northern District of Georgia. “This lawsuit alleges that E&P intentionally failed to perform the quality control work, and then concealed its failing by providing false certifications to the government. In intervening in this lawsuit, the U.S. Attorney’s Office seeks to ensure that entities that defraud the government are identified and held responsible.”
The lawsuit was filed by Deborah Cook, a former employee of the prime contractor building the DOE facility, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act permits the government to intervene in such lawsuits, as it has done in this case. Defendants found liable under the act are subject to treble damages and penalties.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the Northern District of Georgia and the District of South Carolina and the DOE’s Office of Inspector General.
The case is captioned United States ex rel. Cook v. Shaw Areva Mox Services, LLC, et al., Case No. 01:13-cv-4023 (N.D. Ga.).
The claims asserted against E&P are allegations only and there has been no determination of liability.
Government Intervenes in Suit Against Energy & Process Corporation Alleging Use of Defective Steel Rebar and Quality Control Failures in Connection with Construction of Nuclear Processing FacilityRead the Press Release
ATLANTA – The government has intervened in a False Claims Act lawsuit against Energy & Process Corporation (“E&P”), of Tucker, Georgia, alleging that E&P knowingly failed to perform required quality assurance procedures and supplied defective steel reinforcing bars (“rebar”) in connection with a contract to construct a Department of Energy (“DOE”) nuclear processing facility, the Justice Department announced today.
“To ensure that the nuclear facility would be safe, the Government paid E&P a sizable premium for exhaustive quality control procedures,” said U.S. Attorney John Horn of the Northern District of Georgia. “This lawsuit alleges that E&P intentionally failed to perform the quality control work, and then concealed its failing by providing false certifications to the government. In intervening in this lawsuit, the U.S. Attorney’s Office seeks to ensure that entities that defraud the Government are identified and held responsible.”
“The Department of Justice is committed to ensuring that construction suppliers who are paid a premium to meet high safety standards actually supply the goods and perform the work for which they are paid,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “When contractors cut corners, they not only cheat American taxpayers, but they also can put public safety at risk, particularly when their misconduct affects a facility that houses and processes nuclear materials.”
The lawsuit alleges that, although the DOE – in connection with the construction of the Mixed Oxide Fuel Fabrication Facility at the DOE’s Savannah River Site near Aiken, South Carolina – paid E&P a premium to supply rebar meeting the stringent quality assurance standards promulgated by the United States Nuclear Regulatory Commission (“NRC”), E&P failed to perform most of the necessary quality assurance work, and then concealed this failing by falsely certifying that the quality assurance requirements had been met. As a result, one-third of the rebar supplied by E&P and used in the construction was found to be defective.
The lawsuit was filed by Deborah Cook, a former employee of the prime contractor building the DOE facility, under the qui tam, or whistleblower, provisions of the False Claims Act. Under the act, private citizens can bring suit on behalf of the government for false claims and share in any recovery. The act permits the government to intervene in such lawsuits, as it has done in this case. Defendants found liable under the act are subject to treble damages and penalties.
This matter was investigated by the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Offices of the Northern District of Georgia and the District of South Carolina, and the DOE’s Office of Inspector General.
The case is captioned United States ex rel. Cook v. Shaw Areva Mox Services, LLC, et al., Case No. 01:13-cv-4023 (N.D. Ga.).
The claims asserted against E&P are allegations only, and there has been no determination of liability.
This matter is being handled by Assistant United States Attorneys Paris A. Wynn and Gabriel Mendel.
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 home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao-ndga.
Gervais Man Sentenced to Seven Years in Prison in Child Pornography CaseRead the Press Release
PORTLAND, Ore. – On Thursday, September 22, 2016, U.S. District Judge Michael H. Simon sentenced Adam Michael Groat, 28, of Gervais to seven years in federal prison and a life term of supervised release after Groat’s previous pleas of guilty to three counts of distributing child pornography, three counts of receiving child pornography, and one count of possession of child pornography.
Separate investigations by the U.S. Department of Homeland Security, Homeland Security Investigations (HSI) and the Federal Bureau of Investigation (FBI) revealed that Groat repeatedly traded numerous images of child pornography with various people online. The HSI investigation revealed that Groat traded child pornography with an offender in Arizona who was the subject of another investigation. The FBI investigation revealed that Groat traded child pornography with a woman in Texas who was also the subject of another investigation. Forensic examinations of Groat’s computer equipment revealed hundreds of child pornography images and videos, including materials depicting prepubescent minors engaged in bestiality and sadomasochistic conduct.
At the sentencing hearing, Judge Simon noted that trading in child pornography has the effect of normalizing the sexual abuse of children. He recognized the continuing harm to the children depicted in the images and video, and noted that the proliferation of child pornography assures that child sexual abuse will continue. Judge Simon also stated that a civilized society must protect its most vulnerable members – its children.
Judge Simon imposed a lengthy and stringent list of conditions with which Groat must comply while on supervised release. These include limitations on contact with minors, a requirement to undergo mental health and sex offender treatment, restrictions on where Groat may work and reside, and restrictions on computer usage and access to the Internet. Groat will also be required to register as a sex offender. Groat said he was “truly sorry and regretful” for his conduct.
“Trading in images of the sexual abuse of children is criminal, despicable, and cannot be tolerated in a civil society,” said Billy J. Williams, United States Attorney for the District of Oregon. “The children shown in the images are victimized anew each time images of their abuse are uploaded, downloaded, traded, or viewed,” he added. “By actively trading in those images, Adam Groat prolonged the harm each of the victims suffered,” Williams noted. Groat’s sentence “should serve as a stern warning to anyone inclined to trade in child pornography that such actions cause serious harm and will result in serious consequences.”
The investigation was conducted by HSI and the FBI. This case was prosecuted by Special Assistant U.S. Attorney Bumjoon Park and Assistant U.S. Attorney Gary Sussman, Project Safe Childhood Coordinator for the District of Oregon.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and 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 www.projectsafechildhood.gov.
Franklin woman sentenced to 24 months in prison for stealing more than $61,000 from her employerRead the Press Release
LAKE CHARLES – United States Attorney Stephanie A. Finley announced that a Franklin woman was sentenced Thursday to 24 months in prison for stealing more than $61,500 from the company where she worked.
Michelle Leann Berry-Ortemond, 41, of Franklin, La., was sentenced by U.S. District Judge Patricia Minaldi on one count of wire fraud. She was also sentenced to three years of supervised release and ordered to pay $55,346.66 restitution. According to the May 25, 2016 guilty plea, Berry-Ortemond stole $61,696.41 from a Lafayette construction company from February 2010 to April 2011 while employed there. She forged and cashed forged checks, initiated wire transfers and accessed a line of credit in the corporation’s name without consent.
The U.S. Secret Service conducted the investigation. Assistant U.S. Attorney Robert C. Abendroth prosecuted the case.
Former New York City Public School Teacher Pleads Guilty to Receiving Child PornographyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that JON CRUZ, a former teacher and debate coach at the Bronx High School for Science, pled guilty today to one count of receiving child pornography. CRUZ, who was arrested on March 5, 2015, entered his plea before United States District Judge P. Kevin Castel.
U.S. Attorney Preet Bharara said: “Crimes that sexually exploit and victimize children are some of the most disturbing and harmful. It is particularly so when those entrusted to teach and guide our children in our schools, instead lure and then sexually exploit them. Jon Cruz, a public school teacher and well-known debate coach, has admitted to doing just that, having now pled guilty to receiving child pornography.”
According to the Complaint, the Indictment, and other documents filed in the case, as well as statements made during the plea proceedings:
From July 2014 through December 2015, JON CRUZ, while employed as a teacher and debate coach at Bronx High School for Science, engaged in multiple chats over a mobile communication application and social media service with at least five minor victims from different states. In those chats, CRUZ, who was aware of the ages of the victims, provided payments to the victims in exchange for sexually explicit photographs of themselves.
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CRUZ, 33, of New York, New York, pled guilty to one count of receiving child pornography, which carries a mandatory minimum sentence of five years in prison and a maximum sentence of 20 years in prison. The maximum potential sentence in this case is prescribed by Congress and is provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI in this matter.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorney Shawn G. Crowley is in charge of the prosecution.
Former Joplin Police Officer Pleads Guilty to Civil Rights ViolationRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a former Joplin, Mo., police officer has pleaded guilty in federal court to violating the civil rights of a woman he arrested by attempting to get her case dismissed in exchange for a sexual relationship.
Brian Rogers, 30, of Joplin, pleaded guilty before U.S. Magistrate Judge David P. Rush on Monday, Sept. 19, 2016, to the deprivation of rights under color of law.
According to his plea agreement, Rogers – who was a Joplin police officer at the time – arrested a woman identified in court documents as Jane Doe for driving under the influence in October 2015. She was subsequently charged with DUI by the Joplin Prosecuting Attorney’s Office.
Rogers admitted that he communicated with Jane Doe via texts and Facebook Messenger in December 2015 and offered to get the charge dismissed. Rogers said he would like to see Jane Doe’s body and asked her to send him pictures, which she refused to do. Rogers asked Jane Doe what she was offering and said he wanted her to “show me one hell of a time!” Rogers also asked her to come by his office, which she also refused to do.
On Dec. 28, 2015, Rogers approached city prosecutor Becky Seidl and suggested she dismiss the case. Rogers stated that he had experienced a maintenance issue with the breathalyzer that he had used to take the sample from Jane Doe. Rogers told Seidl they would have a hard time of making the case stick and he was inclined to give Jane Doe the benefit of the doubt.
Seidl told Rogers she agreed and the case would need to be dismissed. After speaking with Rogers, Seidl spoke to police officials, who contacted the FBI. When federal agents interviewed Jane Doe, she agreed to place a recorded phone call to Rogers. During the call Rogers stated he had spoken with the city prosecutor and he believed the charges would be dropped. Rogers also stated he would check up on the status of the case the following day.
On Jan. 25, 2016, federal agents interviewed Rogers. Rogers admitted that he had hoped his actions in helping to dismiss Jane Doe’s case would lead to him and Jane Doe developing a friendship and then a sexual relationship. Rogers had hoped that after getting the charges dropped Jane Doe would meet with him.
Under federal statutes, Rogers is subject to a sentence of up to one year in federal prison without parole. 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. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Ami Harshad Miller. It was investigated by the FBI and the Joplin, Mo., Police Department.
Former Emergency Room Nurse Sentenced to 45 Months in Prison for Sexually Abusing Three PatientsRead the Press Release
WASHINGTON –Jared Kline a former emergency room staff nurse, was sentenced today to 45 months in prison for sexually abusing three patients in separate incidents at area hospitals, announced U.S. Attorney Channing D. Phillips and Peter Newsham, Interim Chief of the Metropolitan Police Department (MPD).
Kline, 39, of Springfield, Va., was found guilty by a jury in June 2016 of three counts of second-degree sexual abuse of a patient, including two with aggravating circumstances. The verdicts followed a trial in the Superior Court of the District of Columbia. He was sentenced by the Honorable Michael Ryan. The judge sentenced Kline to a total of 86 months in prison, but suspended all but 45 months of that time on the condition he successfully complete five years of probation. Judge Ryan also imposed a period of 10 years of supervised release. During his supervised release, he may not work in any field involving contact with patients. Additionally, he must register as a sex offender for the rest of his life. Kline was taken into custody today.
“This defendant sexually abused victims at especially vulnerable times, when they were turning to him for treatment in hospital emergency rooms,” said U.S. Attorney Phillips. “Hopefully today’s sentence will deter this defendant and others from engaging in similar conduct and bring some relief to the women who were traumatized by his reprehensible acts.”
According to the government’s evidence, between 2013 and 2014, Kline was a traveling nurse in the Washington, D.C. area, taking shifts in the emergency departments at various hospitals. In three separate instances, he intentionally thrust his penis against the victims’ hands while purporting to provide them with medical care. Two came forward soon after their release from the hospitals, while one reported while she was still at the hospital. All were interviewed by the Metropolitan Police Department.
One incident took place early May 12, 2013, at the George Washington University Hospital. Another occurred on the evening of Dec. 28, 2013 at the Washington Hospital Center. The third incident took place late Aug. 23, 2014 at United Medical Center. According to the government’s evidence, each victim was very ill, alone, and extremely vulnerable in the emergency room. Each was under the medical care of the defendant. Kline was responsible for taking the victims’ vital signs, inserting their IV’s, and administering their medications. On each occasion, he began flirting with the victim. While it may have seemed inappropriate, the victims believed the flirting was meant to calm them and reduce their anxiety. Then, while inserting an IV or affixing a blood pressure cuff, Kline sexually assaulted the victim.
In announcing the sentence, U.S. Attorney Phillips and Interim Chief Newsham commended the work of those who investigated the case from the Metropolitan Police Department and its Sexual Assault Unit. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jodi Lazarus, Christopher Macchiaroli, Chrisellen Kolb, Katherine Kelly, and Deborah Sines; Elizabeth Trosman, Chief of the Appellate Division; Victim/Witness Advocate Tracey Hawkins; Paralegal Specialists D’Yvonne Key and Tiffany Jones, and Litigation Technology Specialist Leif Hickling. Finally, they expressed appreciation for the work of Assistant U.S. Attorneys Jason Park and John B. Timmer, who investigated and prosecuted the case.
Federal Jury Convicts Drug TraffickerRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced that the eighth and final defendant arising from Operation Road Block, an extensive investigation into a drug trafficking network operation in the Baton Rouge region, has been convicted following a federal jury trial. The other seven defendants had already been convicted.
Yesterday evening, a federal jury unanimously convicted WILBERT MATHES, age 41, of Baton Rouge, Louisiana, on seven counts of conspiracy to distribute and possess with the intent to distribute 500 grams ore more of cocaine and cocaine base; distribution of cocaine; possession with the intent to distribute 500 grams or more of cocaine; and unlawful use of a communications facility. The verdict followed a four day jury trial before U.S. District Judge Shelly Dick. MATHES was remanded into custody following his conviction and awaits sentencing.
The evidence at trial established that, between August 2010 and July 2011, MATHES had mult-kilogram shipments of cocaine transported from Houston, Texas to Baton Rouge and sold that cocaine for profit throughout the Baton Rouge area and elsewhere. This drug enterprise included MATHES, Joell Leggins, Marcus Thornton, Damond Reynard Lockett, Lamont Jackson, and Broderick Mathes.
U.S. Attorney Green stated: “This jury verdict and today’s conviction is a strong reminder of my office’s commitment to fighting the drug trade and those who traffic cocaine for profit. I appreciate the hard work of the DEA, our dedicated state and local law enforcement partners, and our prosecutors, who are working hard to keep cocaine and other dangerous drugs out of our community.”
DEA Assistant Special Agent in Charge Brad L. Byerley stated, “This guilty verdict signifies that law enforcement will not tolerate drug dealing in our communities. The DEA and our law enforcement partners are committed to identifying every individual within a drug trafficking organization who is responsible for purveying our city with illegal narcotics.”
This matter was investigated by the United States Drug Enforcement Administration, with valuable assistance from Baton Rouge Police Departmant, West Baton Rouge Parish Sheriff’s Office, East Baton Rouge Parish Sheriff’s Office and Federal Bureau of Alchol, Tobacco and Firearms. It is being prosecuted by Assistant United States Attorneys Jennifer Kleinpeter and Jessica Thornhill.
Federal Grand Jury in Austin Indicts Three on Racketeering and Fraud Charges in Connection with the Attempted Capital Murder of State District Court Judge Julie KocurekRead the Press Release
A federal grand jury in Austin has indicted three individuals, including 28-year-old Chimene Hamilton Onyeri of Houston, for their roles in fraud and racketeering schemes that involved the attempted capital murder of State District Court Judge Julie Kocurek in November of last year.
That announcement was made today by United States Attorney Richard L. Durbin, Jr.; Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division; Internal Revenue Service-Criminal Investigation (IRS-CI) Special Agent in Charge William Cotter; Austin Police Chief Art Acevedo; Travis County Criminal District Attorney Rosemary Lehmberg; United States Postal Inspection Service (USPIS) Inspector in Charge Adrian Gonzalez, Houston Division; and, U.S. Secret Service Special Agent in Charge Cynthia Marble, Houston Division.
An 11-count indictment, unsealed in Austin today, charges Onyeri, 26-year-old Marcellus Antoine Burgin of Cypress, TX and 24-year-old Rasul Kareem Scott of Marrera, LA, with one count of conspiracy to participate in an enterprise engaged in a pattern of racketeering activity; one count of conspiracy to commit wire fraud; and, one count of aggravated identity theft. Onyeri is also charged with conspiracy to commit mail fraud; an additional count of conspiracy to commit wire fraud; and, six additional counts of aggravated identity theft.
The indictment alleges that from January 2012 to November 2015, Onyeri and others carried out various fraudulent schemes for financial gain in Austin, Houston, the state of Louisiana and surrounding areas. The racketeering enterprise is alleged to have engaged in mail fraud, bribery of a public official, wire fraud, document fraud, access device fraud and money laundering as well as offenses involving murder.
According to the indictment, the defendants carried out a wire fraud scheme whereby they used debit card readers, or “skimmers,” and cameras placed on ATMs to steal personal identification information (PII) from, and identify PIN #’s used by, unsuspecting individuals. The defendants then used the stolen PII and debit card PIN #’s to “cash out,” or deplete, those bank accounts.
The indictment also alleges that from December 2011 to November 2013, Onyeri and others carried out a credit card skimming scheme whereby they captured unsuspecting individuals’ credit card information at various restaurants and retail stores. They would then transfer the stolen information onto gift cards and subsequently use those gift cards to purchase retail items or money orders which could then be sold or converted to cash.
The indictment further alleges that Onyeri and others were involved in a Stolen Identity Refund Fraud (SIRF) scheme. Onyeri and others used stolen PII to create and file fraudulent income tax returns seeking refunds. Once the refund checks were mailed, Onyeri and others would use the checks to open up bank accounts and then access the fraudulently obtained funds through cash or ATM withdrawals. The indictment also alleges that Onyeri bribed bank employees to create false bank accounts to facilitate access to the funds and agreed to pay $1,500 to an individual who he believed was a U.S. Postal Letter Carrier in exchange for intercepting mailed income tax refund checks.
According to the indictment, when the existence of the criminal enterprise was threatened, the defendants responded with violence. The indictment alleges that on the night of November 6, 2015, the defendants attempted to murder State District Court Judge Julie Kocurek, whom Onyeri believed was going to sentence him to prison, by shooting Judge Kocurek while she sat in her car outside her home in Austin. As a result of the incident, Kocurek suffered serious bodily injury from multiple gunshots and resulting shrapnel.
“This multi-agency investigation uncovered a diabolical scheme that went from multi-faceted fraud to an attempt on the life of a State judicial officer,” stated United States Attorney Richard L. Durbin, Jr. “I commend the extraordinary efforts of Assistant U.S. Attorney Gregg N. Sofer, Special Assistant U.S. Attorney Dayna Blazey, and the agents of the Internal Revenue Service-Criminal Investigation, Federal Bureau of Investigation, U.S. Postal Inspection Service, Austin Police Department and the U.S. Secret Service who brought this case to indictment.”
“A violent attack against a judge doesn't just threaten our justice system; it's an assault to the bedrock of our democracy which upholds the laws protecting our freedom. This case should send a strong message to those who threaten or harm members of our judiciary; the FBI will work day and night, with our law enforcement partners, to ensure they are held accountable for their actions,” stated FBI Special Agent in Charge Christopher Combs.
“Once again, this investigation proves that greed knows no bounds,” said William J. Cotter, IRS-CI Special Agent in Charge for the San Antonio Field Office. “What began as a seemingly small financial crime grew into an organization willing to use violent acts to shield their financial fraud schemes from discovery. IRS-CI Special Agents used financial tracing techniques to assist in unraveling the complex web of violence and fraud."
“The Postal Inspection Service has sought for hundreds of years those who use the Postal Service for illegal gain,” said U. S. Postal Inspection Service Inspector in Charge Adrian Gonzalez. “This investigation was an excellent example of a partnership between law enforcement agencies working together to bring down this fraud conspiracy. I fully commend the hard work and countless hours put forth which resulted in bringing these individuals to justice.”
Upon conviction, the defendants face up to life in federal prison for the RICO conspiracy charge; up to 20 years in federal prison for conspiracy to commit mail or wire fraud charge; and, a mandatory two years in federal prison for each aggravated identity theft charge.
Yesterday, authorities arrested Scott in New Orleans. Scott remains in federal custody pending transfer to the Western District of Texas. Burgin remains a fugitive and should be considered armed and dangerous. Crime Stoppers of Houston is offering up to $5,000 for information leading to the arrest of Burgin. If you have information about him or his whereabouts, please call the Crime Stoppers tip line at 713-222-TIPS (8477) or the FBI San Antonio Field Office at 210-225-6741. Tips may also be submitted to the FBI online at https://tips.fbi.gov/. Onyeri has remained in custody since his arrest on May 18, 2016, on unrelated state charges.
“In coordination with federal authorities, and as a result of the overlapping issues presented in these prosecutions, Dayna Blazey, a Travis County Assistant District Attorney, has been cross-designated as a Special Assistant United States Attorney in order to assist with the federal prosecution of this important case. This office will continue to work with federal authorities until all prosecutions are concluded,” stated Travis County District Attorney Rosemary Lehmberg.
This case is being investigated by the FBI, IRS-Criminal Investigation, U.S. Postal Inspection Service, United States Secret Service, Austin Police Department and the Travis County Criminal District Attorney’s Office. The 14th Judicial District Attorney’s Office in (Calcasieu Parish) Lake Charles, Louisiana; Fort Bend County District Attorney’s Office; United States Attorney’s Offices for the Southern District of Texas and the Eastern District of Louisiana; the United States Marshals Service; Travis County Sheriff’s Office; and, the Houston Police Department have also provided valuable assistance during this investigation. Assistant United States Attorney Gregg N. Sofer and Special Assistant United States Attorney Dayna Blazey are prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendants are considered innocent until proven guilty in a court of law.
Falls Church Man Sentenced for Smuggling Fake Apple and Samsung ProductsRead the Press Release
ALEXANDRIA, Va. – Bao Doan, 32, Falls Church, was sentenced today to one year and one day in prison for conspiring to traffic in counterfeit Apple and Samsung products and smuggling. Doan was also ordered to forfeit over $115,000 in proceeds and to pay Apple and Samsung over $20,000 in restitution.
Doan was found guilty by a federal jury on June 16, after a three-day trial. According to evidence presented at trial and sentencing, Doan operated the conspiracy from his store, called iFaifo, in Falls Church. Over the course of approximately two years, Doan received hundreds of shipments containing counterfeit Apple and Samsung products from co-conspirators in China and Hong Kong, and then distributed these items wholesale to stores in the area. Since October 2014, Doan received several warnings to cease and desist from both U.S. Customs and Border Protection and representatives from Apple and Samsung. Rather than heed these warnings, Doan developed new ways to evade customs, such as by having counterfeit goods sent to his home address under his mother’s name.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Clark E. Settles, Special Agent in Charge of the Department of U.S. Immigrations and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) Washington, made the announcement after sentencing by U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorney Kellen S. Dwyer and Special Assistant U.S. Attorney Timothy C. Flowers of the Computer Crime and Intellectual Property Section of the Department of Justice prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-56.
El Paso, Texas, Man Pleads Guilty to Federal Drug Trafficking Charge Arising Out of 41 Pound Cocaine Seizure in New MexicoRead the Press Release
ALBUQUERQUE – Gerry Billy Olivas, 39, of El Paso, Texas, pled guilty today in federal court in Las Cruces, N.M., to a cocaine trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Olivas was arrested on Aug. 3, 2016, on a criminal complaint alleging that he possessed approximately 18.8 kilograms (41.44 pounds) of cocaine in Otero County, N.M. According to the complaint, Olivas was arrested on Aug. 3, 2016, after U.S. Border Patrol agents at the U.S. Border Patrol checkpoint south of Alamogordo, N.M., allegedly seized approximately 16.2 kilograms (35.71 pounds) of cocaine from Olivas’ vehicle. The agents also seized approximately 2.6 kilograms (5.73 pounds) of cocaine from a storage unit located in El Paso that was allegedly owned by Olivas.
During today’s proceedings, Olivas pled guilty to a felony information charging him with possession of cocaine with intent to distribute. In entering the guilty, Olivas admitted that on Aug. 3, 2016, he transported approximately 16.2 kilograms of cocaine with the intention of delivering the cocaine to another person. Olivas further admitted that he also possessed 2.6 kilograms of cocaine in a storage unit which he intended to deliver to another person.
At sentencing, Olivas faces a 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 Alamogordo station of the U.S. Border Patrol and the Las Cruces office of the DEA. Assistant U.S. Attorney Brock Taylor of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
El Dorado Hills Woman Pleads Guilty in Bogus Tax Refund Scheme Involving More Than $1.8 Million in Illegitimate RefundsRead the Press Release
SACRAMENTO, Calif. — Sherry Taggart, 56, of El Dorado Hills, pleaded guilty today to conspiring to file false claims and filing false claims, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, Taggart and her co-conspirator, Barbara Antonucci, an unlicensed tax preparer, prepared tax returns for clients seeking to maximize their refunds from the Internal Revenue Service. In 2008, Antonucci began a scheme to obtain false refunds by preparing and filing false claims on behalf of clients with the IRS. After May 2010, Taggart joined Antonucci’s scheme and together the two conspired to prepare and file hundreds of false claims with the IRS between June 2012 and March 2014, seeking refunds totaling approximately $1.4 million. As a result of the conspiracy, the IRS issued more than $757,000 in illegitimate refunds. In total, including the period in which Antonucci operated the scheme by herself, the IRS issued more than $1.8 million in illegitimate refunds from more than $2.5 million illegitimate claims filed during the scheme. On August 19, 2016, Antonucci pleaded guilty to conspiracy to file false claims and filing false claims.
The fraudulent returns Taggart and Antonucci prepared and caused to be filed reported false wages and dependents for their clients and, in many cases, qualified the clients for the refundable Earned Income Credit (“EIC”) when the client’s true wages or family situation would have qualified the client for no credit or a lower credit. Most of the fraudulent returns listed wages associated with self-employment not documented by a Form W-2, such as “housekeeper.” The defendants obtained the names, social security numbers, and other personal identifying information of minors and falsely listed those minors as dependents on tax returns for clients who were unrelated to those minors. Taggart and Antonucci also filed false claims on their own behalf. They filed the false federal tax returns with the IRS through the mail and via the internet from Sacramento, Yuba and Placer Counties.
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the United States Postal Inspection Service, and the Sacramento County Sheriff’s Office. Assistant United States Attorney André M. Espinosa is prosecuting the case.
Taggart is scheduled to be sentenced by U.S. District Judge Garland E. Burrell Jr. on December 9, 2016. Antonucci is scheduled to be sentenced by Judge Burrell on December 2, 2016. Taggart and Antonucci face a maximum statutory penalty of up to 10 years in prison and a $250,000 fine for conspiracy to file false claims. The maximum penalty for filing false claims is up to five years in prison and a $250,000 fine. The actual sentences, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
East St. Louis Man Sentenced for Firearm OffenseRead the Press Release
DeShawn C. Carlisle, 20, of East St. Louis, Illinois, was sentenced in federal district court on September 22, 2016, in East St. Louis, Illinois, to 21 months imprisonment, to be followed by three years of supervised release, a $100 special assessment, and a $250 fine, for unlawful possession of a firearm by a previously convicted felon, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Court proceedings revealed that on December 18, 2015, Carlisle ran from police officers at the Roosevelt Housing complex in East St. Louis, Illinois, after officers attempted to question him. Carlisle had previously been banned from the complex. While running from the officers, Carlisle threw a 9mm semi-automatic weapon into a wooded area. Carlisle was arrested by the officers, and the weapon was then recovered.
This case was investigated by the United States Marshals Service and prosecuted by Assistant United States Attorney Daniel T. Kapsak.
District Man Sentenced to 9 1/2-Year Prison Term for Armed Home InvasionRead the Press Release
WASHINGTON – Jeffery Wood, 20, of Washington, D.C., was sentenced today to a prison term of 9 ½-years on charges stemming from an armed home invasion that took place earlier this year in Northeast Washington, U.S. Attorney Channing D. Phillips announced.
Wood pled guilty in June 2016, in the Superior Court of the District of Columbia, to charges of first-degree burglary and assault with a dangerous weapon. He was sentenced by the Honorable Zoe Bush. Upon completion of his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, the victim and her 11-month-old son were at her boyfriend’s apartment in the 5000 block of Jay Street NE at about 2:05 p.m. on Feb. 24, 2016. While her boyfriend was gone, the victim heard a knock on the bedroom door. When she opened the door, she was confronted by three men, each dressed in black, wearing a black mask, and armed with a black firearm. She recognized Woods as one of the assailants. He ordered her and her son to enter and remain in the bathroom, as one of the other men stood guard at gunpoint. During the 20-minute ordeal, this man pointed his firearm at the child’s head, leading the victim to place him in the bathtub and close a shower curtain to protect him. The three men finally left. A flat-screen television, shoes, and a Sony PlayStation4 were then determined to be missing from the apartment.
Wood was arrested on March 10, 2016, still in possession of a black mask. He has remained in custody ever since. No one else has been arrested in the case.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Sixth District of the Metropolitan Police Department (MPD). He also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocate Jennifer Allen and Assistant U.S. Attorneys Ahmed M. Baset and Alicia Long, who investigated and prosecuted the case.
District Man Sentenced to 15 Years in Prison for Shooting Former Girlfriend, and Another Man, Wounding Her and Killing HimRead the Press Release
WASHINGTON – Tavon Moore, 27, of Washington, D.C., was sentenced today to 15 years in prison for a domestic violence incident in which he shot his former girlfriend and another man, wounding her and killing him, U.S. Attorney Channing D. Phillips announced.
Moore pled guilty in July 2016, in the Superior Court of the District of Columbia, to charges of voluntary manslaughter while armed and assault with a dangerous weapon. The plea agreement, which was contingent upon the Court’s approval, called for a sentence of 15 years in prison, to be followed by five years of supervised release. The Honorable Lynn Leibovitz accepted the plea today and sentenced Moore accordingly. At the hearing today, Judge Leibovitz noted that the shooting was the culmination of a lengthy history of domestic violence.
According to the government’s evidence on March 4, 2016, just before 3 p.m., Moore’s ex-girlfriend and a friend, Noel Rezene, 26, drove to Moore’s apartment in the 3300 block of 23rd Street SE. Also in the car was the 2-year-old child of the ex-girlfriend and Moore. Shortly after arriving, Moore’s ex-girlfriend brought their child to the apartment. She then came across Moore outside the apartment building, and the two argued. During the course of the argument, Mr. Rezene displayed a firearm and asked Moore to stop speaking in a disrespectful manner. The ex-girlfriend then went to retrieve the child from the apartment. Moore also proceeded to return to his apartment. Mr. Rezene followed them both into the building.
The ex-girlfriend then retrieved the child and fled with her to her car, which was parked in a nearby parking lot. Mr. Rezene then began shooting through the door of Moore’s apartment and into the apartment that was then occupied by the defendant and his family.
Moore retrieved a firearm from within the apartment and began shooting back through the door at Mr. Rezene, striking him at least once. Mr. Rezene fled towards the car, which by then was occupied by Moore’s ex-girlfriend and the child. As Mr. Rezene neared the car, Moore shot him again, causing Mr. Rezene to stumble and drop his firearm. Mr. Rezene got into the car and Moore’s ex-girlfriend backed the vehicle away, trying to flee. Moore chased after the car, firing multiple shots into it, striking both Mr. Rezene and the ex-girlfriend. At least one shot went through the front windshield on the driver’s side. The child was not struck by any gunfire.
Moore’s ex-girlfriend drove to a nearby hospital, where Mr. Rezene was pronounced dead from the gunshot wounds inflicted by the defendant. She received treatment for multiple gunshot wounds to her right arm and the right side of her torso.
During his plea, Moore acknowledged that he was not acting in self-defense when shooting his ex-girlfriend, and even if his actions against Mr. Rezene were taken in self-defense, by following him outside and continuing to shoot, he used excessive force.
Moore has been convicted of multiple prior domestic violence assaults against his ex-girlfriend, and was on probation for one of those assaults at the time of the shooting. That probation has since been revoked.
In announcing the sentence, U.S. Attorney Phillips commended the work of the detectives of the Criminal Investigations Division Homicide Branch, crime scene officers, and the Seventh Police District of the Metropolitan Police Department. He also expressed appreciation to those who worked on the case from the U.S. Attorney’s Office, including Marcia Rinker of the Victim/Witness Assistance Unit; Paralegal Specialist Stephanie Siegerist; Criminal Investigator John Marsh, and Intern Anthony Jankowski. He also commended the efforts of Assistant U.S. Attorneys Christopher Bruckmann and Akhi Johnson, who investigated and prosecuted the case.
Cuban Native Sentenced to Prison for Transporting Illegal AliensRead the Press Release
Gulfport, Miss – Yunier Hurtado-de-Armas, 30, a resident of Houston and native of Cuba, was sentenced on Monday, September 19, 2016, to 13 months in federal prison followed by three years of supervised release for transportation of six illegal aliens, U. S. Attorney Gregory K. Davis announced today. Hurtado was also ordered to pay a $5,000 fine.
The case was investigated by United States Customs and Border Patrol and prosecuted by Assistant United States Attorney Annette Williams.
Chicago Businessman Sentenced to Two Years in Prison for Grant Fraud SchemeRead the Press Release
Springfield, Ill. – A Chicago businessman has been ordered to serve 24 months in prison for a fraud scheme that resulted in two state agencies awarding separate, but nearly identical, grants to his not-for-profit entity in September 2008. U.S. District Court Judge Sue E. Myerscough sentenced George E. Smith, 66, and ordered that Smith pay restitution of nearly $500,000 to the state. Judge Myerscough allowed Smith to self-report as directed by the federal Bureau of Prisons to begin serving his prison sentence. Smith waived indictment and pled guilty in March 2016, to two counts of mail fraud and one count of money laundering.
In rendering today’s sentence, Judge Myerscough noted that Smith exploited his personal relationship with a former director of the Illinois Department of Children and Family Services related to a grant in the amount of $450,000 awarded by the agency on Sept. 2, 2008, under the Students at Risk Program. On Sept. 8, 2008, the Illinois Board of Education awarded Smith’s not-for-profit a similar grant in the amount of $342,000. According to the terms of the grants, both provided for similar services to be provided to the same at-risk population in the Chicago area during fiscal year 2009. The populations served, sources of referral, services to be provided, and the goals for each grant were essentially identical. Neither DCFS nor ISBE were aware of the issuance of an identical grant by the other state agency. Smith then converted the duplicate funding to his personal and business use.
Both grants were awarded to Diversified Behavioral Comprehensive Care, a not-for-profit entity owned and operated by Smith. In addition, Smith owned and operated three for-profit entities: Diversified Behavioral Services, Inc., Management Planning Institute, Inc., and the Institute for Positive Child and Family Development. From 2005 through 2011, Smith, through both his not-for-profit and for-profit entities, received millions of dollars in funding from agencies of the state of Illinois, including DCFS, ISBE, and the Illinois Department of Human Services.
Smith further admitted that in February 2009, he caused Illinois DHS to award a third grant of $200,000 to DBCC to provide community services relating to the prevention, intervention, treatment and rehabilitation of alcohol and other drug abuse and dependency. In fact, Smith admitted that he submitted and caused to be submitted false and fraudulent documentation to DHS falsely representing the amount of community services DBCC actually provided under the DHS grant and fraudulently caused DHS to pay DBCC a total of $138,901.
Smith was ordered to pay restitution in the amount of $342,000 to the Illinois State Board of Education and $138,901 to the Illinois Department of Human Services – Division of Alcoholism and Substance Abuse.
Assistant U.S. Attorney Timothy A. Bass prosecuted the case on behalf of the U.S. Attorney’s Office for the Central District of Illinois. The investigation was conducted by the Federal Deposit Insurance Corporation, Office of Inspector General (FDIC-OIG) with the assistance and cooperation of the Office of Inspector General, Illinois Department of Children and Family Services; the Illinois Attorney General; the Illinois Board of Education, and the Illinois Department of Human Services.
Cheko’s Crew/7th Street Gang Member Sentenced on Rico Charge for His Role in Two MurdersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051Buffalo, N.Y. -- U.S. Attorney William J. Hochul, Jr. announced today that Jordan Hildalgo, 25, who was convicted of Racketeering Influenced Corrupt Organizations (RICO) conspiracy, was sentenced to 262 months in prison by U.S. District Judge Richard J. Arcara. The defendant was also sentenced to 240 months for assaulting a federal officer while in custody. The sentences will be served concurrently.
Assistant U.S. Attorney Joseph M. Tripi, who is handling the case, stated that the defendant was a member of the Cheko’s Crew/7th Street Gang which was responsible for multiple acts of violence and the distribution of illegal narcotics on the West Side of Buffalo between 2000 and 2012. The narcotics included heroin, crack cocaine, cocaine, and marijuana. Hildalgo was involved in the murders of two people:
• On November 6, 2008, Hidalgo and co-defendant Ritchie Juarbe went to Raquan Lloyd’s house where Hidalgo shot and killed Lloyd. After the murder, Juarbe discarded the murder weapon, throwing it into the Niagara River.
• On August 11, 2009, Hidalgo participated in the murder of Eric Morrow, a rival 10th Street Gang member, who was shot and killed at the corner of West and Auburn Avenues in Buffalo. Following the murder, Hidalgo got into a getaway vehicle driven by co-defendant Ritchie Juarbe.A total of 18 defendants have been charged and convicted in the 7th Street case.
On September 17, 2013, the defendant was being held at the Buffalo Federal Detention Facility in Batavia, NY. Assistant U.S. Attorney Wei Xiang, who handled that case, stated that on that day two deputy United States Marshals went to the facility to transfer Hidalgo to another facility. The defendant refused to leave his jail cell and began cursing and threatening the deputies. As the deputies went inside the jail cell to remove Hidalgo, the defendant punched one of the deputies multiple times in the head causing several cuts and a broken nose.
The sentencing is the culmination of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, the New York State Police, under the direction of Major Michael Cerretto, the Buffalo Police Department, under the direction of Commissioner Daniel Derenda, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Acting Special Agent in Charge Charlie J. Patterson.
Cheektowaga Man Arrested and Charged with Enticing A Minor for SexRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Andrew Reiner, 28, of Cheektowaga, NY, was arrested and charged by criminal complaint with enticing a minor for sexual activity. The charge carries a mandatory minimum penalty of 10 years, a maximum of life in prison, and a fine of $250,000.
“This case is yet another example of why it is so important for parents and guardians to monitor the technology used by their children,” said U.S. Attorney Hochul. “This is key in the battle against predators lurking online.”
Assistant U.S. Attorney Scott S. Allen, Jr., who is handling the case, stated that according to the complaint, in September 2016, the mother and grandparents of a 15 year old girl alerted the Federal bureau of Investigation that their daughter and granddaughter was possibly enticed online by the defendant into sexual activity.
The family turned over the victim’s cellular telephone and tablet to special agents. A search of the devices found that beginning in June 2016, Reiner communicated with the victim via cellphone applications Kik and Skout. After learning the victim’s age, the defendant texted the victim messages of a sexual nature in order to entice her into sexual activity. Through communications via the cellphone applications and email, Reiner convinced the victim to sneak out of her home late at night to meet him for sexual activity on more than one occasion. The defendant also attempted to entice the victim to ask her friends to participate in sexual activity. After the victim’s cellular service was turned off, Reiner continued to attempt to contact the victim through early September.
If any members of the public have any information regarding this defendant, please call the Federal Bureau of Investigation at 716-856-7800 and ask for a member of the Child Exploitation Task Force.
Reiner made an initial appearance this afternoon before U.S. Magistrate Judge Michael J. Roemer and is being held pending a detention hearing on September 27, 2016.
The criminal complaint is the result of an investigation by the Federal Bureau of Investigation, Violent Crimes Against Children program.
The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Career Offender Sentenced to 10 Years in Federal Prison for Robbing Queenstown Diamond StoreRead the Press Release
Baltimore, Maryland – Chief U.S. District Judge Catherine C. Blake sentenced Roy Lee Tolbert, age 43, of Washington, D.C., today to 10 years in federal prison, followed by five years of supervised release, for the armed robbery of a diamond store in Queenstown, Maryland.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent Kevin Perkins of the Federal Bureau of Investigation; Colonel William M. Pallozzi, Superintendent of the Maryland State Police; Queen Anne’s County Sheriff Gary Hofmann; and Queen Anne’s County State’s Attorney Lance G. Richardson.
According to the facts agreed to at the plea hearing, on May 19, 2013, Roy Lee Tolbert, entered a diamond store in Queenstown wearing a ball cap, wig, fake beard, sunglasses, an oversized suit jacket, jeans, and dark colored shoes. Tolbert went to the back of the store, removed a handgun from his waistband and pointed it at employees of the store, demanding the diamonds that were in the display case. An employee complied with his demands and Tolbert stole approximately 59 engagement-style diamond rings worth an estimated $362,000, placing them into a gray backpack that he was wearing over his stomach.
The robbery was witnessed by an off-duty Maryland State Police sergeant, who provided Tolbert’s description to a 9-1-1 operator, then followed Tolbert as he left the store. The State Police sergeant saw Tolbert run behind a building to a waiting motorcycle. Tolbert removed his disguise and placed it into the backpack, then put on a black and neon motorcycle helmet and a black and neon motorcycle jacket. The State Police sergeant continued to follow Tolbert and saw him flee onto a section of Nesbit Road in Grasonville, Maryland, that is a dead-end street. The State Police Sergeant blocked the road until uniformed troopers arrived on the scene. They located Tolbert running through a nearby open field. Tolbert was able to reach the wood line in the area and escape capture. Found hidden on the property of a nearby residence was the motorcycle, the motorcycle helmet and jacket, and the disguise worn by Tolbert in the robbery.
Tolbert’s DNA was recovered from the fake beard and helmet. The owner of the motorcycle, which had been reported stolen in 2010, was Tolbert’s girlfriend. In July 2013, she had filed a request for a protection order, in which she mentioned that Tolbert had a gun, and further described him in a confrontation “pacing the lot with something silver in his hand”. This matches the description of the weapon used during the robbery, which was a semi-automatic handgun with a silver slide.
Tolbert told another person that he committed the robbery, and showed this individual the diamonds. Tolbert also offered to sell diamonds to a co-worker.
United States Attorney Rod J. Rosenstein praised the FBI, Maryland State Police, Queen Anne’s County Sheriff’s Office, and Queen Anne’s County State’s Attorney’s Office for their work in the investigation and prosecution. Mr. Rosenstein thanked Assistant U.S. Attorney Bonnie S. Greenberg, who prosecuted the case.
Camden County, New Jersey, Man Sentenced to More Than Five Years in Prison for Illegal Sale of 16 GunsRead the Press Release
CAMDEN, N.J. – A Pennsauken, New Jersey, man was sentenced today to 71 months in prison for illegally selling 16 guns, including firearms with high-capacity magazines and obliterated serial numbers, U.S. Attorney Paul J. Fishman announced.
Ammie Steward, a/k/a “Beav,” a/k/a “B,” 41, previously pleaded guilty before U.S. District Judge Renée Marie Bumb to an information charging him with one count of dealing firearms without a license and one count of possession of a firearm by a previously convicted felon. Judge Bumb imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Between May 2012 and Aug. 15, 2012, Steward sold 16 firearms on nine separate occasions for profit and without a license. The 16 firearms included 12 pistols and two rifles. Steward also admitted to using a power tool to obliterate the serial numbers on 14 of the 16 guns.
Steward sold them near Canal’s Liquors at 5360 Route 38 in Pennsauken to a witness who was cooperating with the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). Seven of the guns were sold along with high-capacity magazines. On at least one occasion, Steward sold a Kel Tec PLR-16 .223 caliber pistol along with a 30-round magazine and a box of ammunition. Steward also sold a Romarm/Cugir, WASR 10/63 .762 caliber rifle with two high-capacity magazines and a bayonet. All 16 weapons are now in the custody of law enforcement.
In addition to the prison term, Judge Bumb sentenced Steward to serve three years of supervised release.
U.S. Attorney Fishman credited special agents of the ATF, under the direction of Special Agent in Charge George P. Belsky, with the investigation leading to today’s sentencing. He also thanked the Pennsauken Police Department for their important role.
The government is represented by Assistant U.S. Attorney Matthew T. Smith of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Maggie Moy Esq., Assistant Federal Public Defender, Camden
Breaux Bridge woman pleads guilty to stealing more than $64,000 from a New Iberia companyRead the Press Release
LAFAYETTE – United States Attorney Stephanie A. Finley announced that a Breaux Bridge woman pleaded guilty Tuesday to stealing more than $64,000 from a New Iberia company.
Joan C. Edgar, 66, of Breaux Bridge, La., pleaded guilty before U.S. Magistrate Judge Patrick Hanna to one count of wire fraud. The plea will become final when accepted by U.S. District Judge Dee D. Drell. According to the guilty plea, Edgar worked as an office manager for a New Iberia company. The company’s sole stockholder began negotiating with Edgar for her to buy the company in 2011, and while still working for the company, she stole $64,860. She concealed her actions by altering company records.
Edgar faces up to 20 years in prison, three years of supervised release, restitution and a $250,000 fine. A sentencing date was not set.
The FBI conducted the investigation. Assistant U.S. Attorney Kelly P. Uebinger is prosecuting the case.
Bay St. Louis Man Pleads Guilty to Possession of FirearmsRead the Press Release
Gulfport, Miss – Russell Gene Clack, 35, of Bay St. Louis, pled guilty on September 20, 2016 to possession of firearms by a convicted felon in a case involving the undercover purchase of four firearms, U. S. Attorney Gregory K. Davis announced today.
Clack will be sentenced by Chief U.S. District Judge Louis Guirola, Jr. on December 13, 2016 and faces a maximum penalty of 10 years in prison and $250,000 fine.
This case was investigated by Homeland Security Investigations, the Drug Enforcement Administration and the Bureau of Alcohol Tobacco Firearms and Explosives. Assistant United States Attorney Annette Williams is prosecuting the case.
Bailey Boys Gang Member Pleads Guilty for His Role in Two MurdersRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that Tyrone Brown, 24, of Buffalo, NY, pleaded guilty to RICO Conspiracy in connection with two deadly shootings before Senior U.S. District Judge William M. Skretny. The charges carry a maximum penalty of life in prison and a $250,000 fine. The charges carry a maximum penalty of life in prison and a $250,000 fine.
According to Assistant U.S. Attorney Meghan A. Tokash, who is handling the prosecution of this case, Brown was a member of the Bailey Boys Gang, a violent criminal gang which operates in an area of the City of Buffalo bounded by Winspear Avenue, the Kensington Expressway, Eggert Road and Main Street.
• On January 11, 2011, the defendant shot and killed Harold McCain inside a store on Genesee Street in Buffalo.
• On June 14, 2011, Brown shot and killed Kevin Wilkins in a drive by shooting on Minnesota Avenue in Buffalo.
• On November 9, 2011, the defendant, co-defendant Eddie Allen, and other members of the Bailey Boys Gang robbed several people at a house party on Rounds Avenue in Buffalo. During the course of these robberies, Brown participated in the attempted murder of Omego Stafford who was shot and wounded.
• On June 28, 2011, Brown and other co-defendants went to Shirley Avenue in Buffalo and opened fire on rival gang members. One person was shot and wounded.
• Between 2004 and April 23, 2013, the defendant and other members of the Bailey boys Gang distributed cocaine in the territory controlled by the gang.
As a result of the ongoing investigation into the Bailey Boys Gang, members now stand accused of four murders, 14 attempted murders, including four drive-by shootings. The attempted murders include a shooting that occurred during a neighborhood party with numerous children present and a shooting that occurred during a robbery. A total of 11 were arrested and to date, eight defendants have been convicted. The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.Today’s plea is the result of an ongoing investigation on the part of the United States Attorney’s Office in close cooperation with the Erie County District Attorney’s Office, under the direction of Acting District Attorney Michael Flaherty, the Buffalo Police Department, under direction of Police Commissioner Daniel Derenda, the Federal Bureau of Investigation’s Safe Streets Task Force, under the Direction of Special Agent in Charge Adam S. Cohen, the Erie County Sheriff’s Office, under the direction of Sheriff Timothy B. Howard, the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division, and the Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Special Agent in Charge Delano A. Reid, New York Field Division. The Safe Streets Task Force includes the Amherst Police Department, the Buffalo Police Department, the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Erie County Sheriff’s Department, the Hamburg Police Department, the Niagara Frontier Transportation Authority Police, the New York State Police, Town of Tonawanda Police Department, the U.S. Border Patrol, the U.S. Immigration and Customs Enforcement, Homeland Security Investigations, the U.S. Immigration and Customs Enforcement, Office of Enforcement & Removal Operations.
Sentencing is scheduled for January 25, 2017 at 11:00 a.m. before Judge Skretney.
Attorney General Loretta E. Lynch to Deliver Remarks at Violence Reduction Network Fall Summit Opening CeremonyRead the Press Release
WASHINGTON—Attorney General Loretta E. Lynch will deliver opening remarks on the Violence Reduction Network (VRN) and the Justice Department’s work to address violent crime at the VRN Summit in Little Rock, Arkansas, on MONDAY, SEPTEMBER 26, AT 8:30 A.M. CDT. Assistant Attorney General Karol V. Mason of the Justice Department’s Office of Justice Programs and U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas will also participate in the VRN Summit.
Background on the Violence Reduction Network (VRN):
The VRN, launched in 2014, is an effort through the Department of Justice, Office of Justice Programs and Bureau of Justice Assistance to leverage lessons learned, existing government resources, and an all-hands approach to deliver strategic, intensive training and technical assistance to reduce violence. The VRN is specifically designed to complement existing local antiviolence efforts. The sites considered for VRN have violence levels that exceed national averages. They also represent jurisdictions with unique law enforcement and local government structures, enabling implementation and assessment of VRN in distinctly different organizational contexts to help the department create a model for delivery of training and technical assistance.
WHAT: The Justice Department’s 2016 Violence Reduction Network Summit
WHO: Attorney General Loretta E. Lynch
Asst. Attorney General Karol V. Mason of the Office of Justice Programs
U.S. Attorney Christopher R. Thyer of the Eastern District of Arkansas
Little Rock Police Chief Kenton Buckner
WHEN: MONDAY, SEPTEMBER 26, 2016
8:30 a.m. CDT
WHERE: Statehouse Convention Center
3rd Floor, Wally Allen Ballroom D
1 Statehouse Plaza
Little Rock, AR 72201
OPEN PRESS (Media Access: 7:30 a.m. CDT / Preset By: 8:15 a.m. CDT)
NOTE: The summit’s opening session is open to the media. All media must present government-issued photo I.D. (such as a driver’s license) as well as valid media credentials. Please note that media may begin arriving at 7:30 a.m. CDT, and all cameras must be pre-set by 8:15 a.m. For inquiries related to on-site media logistics, contact [email protected] or 202-307-6873.
Alabama Pill Mill Doctor Charged with Illegal Prescribing and Health Care FraudRead the Press Release
Federal prosecutors on Thursday charged a former north Alabama physician, who was the nation’s highest Medicare prescriber of opioid painkillers at the height of his practice, with illegally prescribing controlled substances and with a health care fraud involving $9.5 million in unneeded and unused urine tests, announced U.S. Attorney Joyce White Vance for the Northern District of Alabama and Special Agent in Charge Roger C. Stanton for the Federal Bureau of Investigations (FBI).
In a two-count information filed in U.S. District Court, the U.S. Attorney’s Office for the Northern District of Alabama charged Shelinder Aggarwal, 48, of Huntsville, Alabama, with one count of distributing a controlled substance outside the scope of professional practice and not for a legitimate medical purpose in July 2012 and with one count of conspiring to execute a health care fraud scheme against Medicare and Blue Cross Blue Shield of Alabama between Jan. 1, 2011, and March 31, 2013.
Prosecutors also filed a plea agreement with Aggarwal in which he agrees that he will plead guilty to the charges and forfeit his former clinic on Turner Street Southwest in Huntsville, along with $6.7 million. Aggarwal earlier repaid $2.8 million to Medicare and $45,843 to Blue Cross following audits, according to his plea agreement. The agreement stipulates a 15-year prison sentence. A federal judge must accept the terms of the agreement before it is final.
Aggarwal surrendered his Alabama medical license in 2013, along with his Alabama and federal Drug Enforcement Administration certificates to prescribe controlled substances, after the Alabama Board of Medical Examiners initiated an investigation.
“Shelinder Aggarwal treated his medical license like a license to deal opiate drugs,” said U.S. Attorney Vance. “He also defrauded Medicare and Blue Cross Blue Shield of more than $9 million dollars by performing drug tests he never used to treat his patients. Thanks to this prosecution, Aggarwal is no longer a drug dealer masquerading as a doctor. His pill mill is closed, he must repay the money he stole from health insurers and he will serve time for his crimes. I am grateful to our prosecutors and the investigators who brought this individual to justice.”
“Aggarwal was trusted with resources to care for others and used that access to defraud the health care system, thus costing tax payers millions of dollars,” said Special Agent in Charge Stanton. “In addition, he directly contributed to the opioid drug epidemic which is plaguing our nation, and potentially endangered the lives of his patients. I applaud the work of my agents and our partners to shut down Aggarwal’s pill mill and hold him accountable for his actions.”
Aggarwal was a pain management doctor who operated Chronic Pain Care Services in Huntsville. His medical practice was a pill mill, according to the charges and plea agreement. The documents state that in 2012, about 80 to 145 patients a day visited Aggarwal’s clinic, with Aggarwal seeing the majority of the patients and writing all prescriptions. Initial patient visits typically lasted five minutes or less, and follow-ups two minutes or less. The documents state that Aggarwal did not obtain prior medical records for his patients, did not treat patients with anything other than controlled substances, often asked patients what medications they wanted and filled their requests, prescribed controlled substances to patients who he knew were using illegal drugs and did not take appropriate measures to ensure that patients did not divert or abuse controlled substances. The plea agreement summarizes an interaction with a patient, which was captured on video. In it, Aggarwal notes that the DEA viewed him as the “biggest pill-pusher in North Alabama” and that many of his patients were “dropping like flies, they are all dying.”
The documents cite the Prescription Drug Monitoring Program (PDMP) for Alabama, which tracks the dispensing of controlled substances, as well as Medicare data, to document Aggarwal’s prescribing practices.
According to the PDMP, Alabama pharmacies filled about 110,013 of Aggarwal’s prescriptions for controlled substances in 2012. That would equal about 423 prescriptions per day if he worked five days a week, and resulted in about 12.3 million pills. The PDMP rated Aggarwal as the highest prescriber of controlled substances filled in Alabama in 2012, with the next highest prescriber writing a third as many prescriptions.
Medicare data shows Aggarwal was the highest prescriber in the United States of Schedule II controlled substances under Medicare in 2012. Schedule II substances include the opioid painkillers oxycodone, oxymorphone, hydromorphone and morphine.
As to Aggarwal’s health care fraud scheme, he is charged with requiring patients to undergo unreasonable and unnecessary urine drug tests that he did not need or use in their treatment. According to the documents, the tests he ran depended not on patients’ treatment, but on how much he could bill for tests. Aggarwal often ignored urine test results showing patients were using illegal drugs, the documents state.
Between January 2011 and March 2013, urine drug tests accounted for about 80 percent of paid claims Aggarwal submitted to Medicare and Blue Cross, for a total reimbursement of $9.5 million. According to his charges and plea agreement, “Aggarwal’s primary motivation for testing patients’ urine specimens, and submitting those claims for payment, was financial gain.”
The FBI investigated the case, based partly on an investigation conducted by the ABME. Assistant U.S. Attorneys Chinelo Dike-Minor and Russell Penfield are prosecuting.
Acting U.S. Attorney: No Overstatement to Call Opioids and Heroin a National EpidemicRead the Press Release
If you do not have a family member, friend or co-worker who suffers from a prescription opioid or heroin addiction problem, consider yourself lucky. A growing number of your fellow Kansans, on the other hand, are feeling the painful effects of America’s newest and most frightening drug epidemic.
The National Heroin Task Force’s Final Report published in December 2015 outlined the problems that law enforcement officers and public health workers in Kansas and across the nation are facing every day:
-- More than 1.9 million people in America had a prescription opioid use disorder in 2014, and nearly 600,000 had a heroin use disorder.
-- More than 27,000 overdose deaths in this country in 2014 involved prescription opioid medications or heroin. That is one death every 20 minutes.
-- Heroin is more accessible and less costly than prescription opioids. In fact, nearly 80 percent of new heroin users reported that they started through the nonmedical misuse of prescription opioid pain medicines.
-- The United States leads the world in the consumption of prescription opioid medications.
The U.S. Attorney’s Office for the District of Kansas is prioritizing prosecution of drug traffickers who deal in heroin, especially those who can be tied to fatal drug overdoses. High purity heroin presents a deadly threat of overdose to young people and individuals suffering from chronic pain. In Kansas, we have seen heroin packaged as “buttons” made of heroin whipped with lactose that caused massive overdoses immediately after ingestion. Our office has prosecuted cases involving overdose deaths of adults and teenage victims in Wyandotte, Johnson and Leavenworth counties. We are working with the Kansas Narcotics Officers Association and other organizations to educate law enforcement officers about the heroin and opioid epidemic.
We are prosecuting criminal pill mill operators, too. Two dozen defendants went to federal prison last year, for instance, when our office prosecuted a Lenexa doctor who unlawfully prescribed prescription pain medicines to a network of users and distributors on the streets of metropolitan Kansas City. Such prosecutions are aimed not only at taking specific offenders off the streets but also at sending a message that will deter others from doing the same.
Tough law enforcement alone, however, will not make this problem go away. The opioid crisis is fundamentally a public health problem. We all need to work together, including law enforcement, public health officials and medical professionals, youth leaders, parents, faith-based organizations, social service providers and educational institutions. Our goals should include slowing the flow of opioids into the community, reducing the number of overdose deaths, educating young people on the dangers of nonmedical opioid use, increasing access to treatment and recovery services and educating practitioners on safe and appropriate prescribing.
We have done some good things in Kansas already. K-TRACS, the state’s prescription monitoring system, is providing physicians and pharmacists with valuable information to help them manage their patients who are prescribed controlled substances. Drug Take Back Day events allowing consumers to safely dispose of prescription medications that might otherwise be diverted onto the streets are catching on in communities across the state. We need to build on those initiatives. Kansas should continue to be a leader in the nation’s fight against heroin and opioid abuse.
Tom Beall is the Acting U.S. Attorney for the District of Kansas.
Acting U.S. Attorney Announces Results of Ongoing Efforts to Reduce Herion Trafficking in Southwestern OhioRead the Press Release
KETTERING, Ohio – In the past year, federal, state and local law enforcement partnerships in the southwestern Ohio have seized more than 35 kilograms of heroin and ten kilograms of fentanyl, and charged 96 people federally in 47 cases with trafficking heroin, including charging two people with providing the heroin that killed someone.
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Angela L. Byers, Special Agent in Charge, Federal Bureau of Investigation (FBI), Cincinnati Field Division,Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration (DEA), Detroit Field Division, and members of the Montgomery County Drug Free Coalition announced the results today.
“We’ve opened a new federal case involving heroin trafficking roughly once every eight days,” Glassman said. “Unfortunately we’re still seeing a fatal heroin overdose in the region roughly once every two days. So we’re not announcing victory, but a reaffirmation of our commitment to continuing to fight the opioid problem in southwestern Ohio through enforcement, treatment and prevention.”
Investigators received almost $250,000 from the National Heroin Initiative in October 2015 to support officers and technology to investigate heroin and opiate trafficking crimes. Most of the cases are still working their way through the courts, but so far, 38 people have been convicted of heroin or opioid trafficking crimes during that period. Charges are pending against the remainder. Twenty-one have been sentenced to date with sentences ranging from one to five years. Trafficking heroin is punishable by up to 20 years in prison. Two people face federal charges of providing a heroin/fentanyl mixture that resulted in the death of the victim, a crime punishable by at least 20 years and up to life in prison, if convicted.
“We will continue to work with our law enforcement partners to attempt to eradicate the supply of harmful drugs,” stated FBI Cincinnati Division Special Agent in Charge Angela L. Byers. “We must also work with the community to try to prevent more people from becoming addicted to these substances. The Chasing the Dragon documentary is one good tool that can be used to better educate people about the dangers of heroin and other opiates.”
“A critical component to reducing the opiate and heroin abuse epidemic in this country is to continue to find effective ways to communicate the dangers of drug use. The ‘Chasing the Dragon’ documentary provides an up close look at the perils of abusing prescription painkillers and heroin, and should serve as a wakeup call for people to understand the danger and potential lethality of that behavior.”
U.S. Attorney General Loretta Lynch designated the week of September 19-23 as National Heroin and Opioid Awareness Week. Glassman made the announcement after a panel discussion with students at Fairmont High School in Kettering who had viewed the documentary “Chasing the Dragon: The Life of an Opiate Addict.”
“Because of the growing epidemic of prescription drug and heroin use among our young people in every community and every neighborhood across the U.S., we here in Kettering feel that it is imperative that schools step up and actively partner with law enforcement agencies and prevention and recovery agencies to educate our students about the dangers and life-changing consequences of opioid addiction,” said Scott Inskeep, Superintendent of Schools for the Kettering School District.
The FBI and DEA produced the video which is available for viewing at the FBI website, https://www.fbi.gov/video-repository/newss-chasing-the-dragon-the-life-of-an-opiate-addict/view, the DEA website, https://www.dea.gov/media/chasing-dragon.shtml, or on YouTube.
Thursday 22 September 2016
Winchester Therapist Agrees to Pay $110,000 to Resolve False Medicare Billing AllegationsRead the Press Release
BOSTON – The U.S. Attorney’s Office reached a $110,000 settlement today with David Margolis, a clinical social worker with an office in Winchester, to resolve allegations that he submitted false claims to Medicare.
“This settlement is part of the government’s ongoing efforts to fight Medicare fraud, whether on a large or small scale,” said United States Attorney Carmen M. Ortiz. “Providers who bill for services they never rendered is fraud, plain and simple.”
“Health care providers who try to make a quick buck by billing taxpayers for services never provided will be held accountable for their greedy behavior,” said Special Agent in Charge Phillip M. Coyne of the U.S. Department of Health and Human Services Office of Inspector General. “Working with our law enforcement partners, our agency is dedicated to protecting government health care programs.”
The government’s investigation revealed evidence that Margolis billed Medicare for therapy sessions that he knew never took place, either because he never actually scheduled the sessions or because his clients cancelled or missed the appointments. Margolis did not deny the government’s allegations of fraudulent billing and admitted that the government could prove its case at trial.
The U.S. Attorney’s Office initiated the investigation after the U.S. Department of Health and Human Services, Office of Inspector General, received a complaint from a Medicare beneficiary who had ceased receiving treatment from Margolis but noticed that the billing continued.
U.S. Attorney Ortiz and HHS-OIG SAC Coyne made the announcement today. The case was handled by Assistant U.S. Attorneys Deana K. El-Mallawany and Lisa Asiaf Schlatz.