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Tuesday 16 August 2016
United States Attorney's Office Announces Successful Results from Overdose Prosecution InitiativeRead the Press Release
A centerpiece of the office’s comprehensive approach to combatting the opioid epidemic, the initiative has resulted in important convictions in three local cases
LEXINGTON, Ky. – As part of a comprehensive approach to combatting the opioid epidemic facing the Commonwealth, in early 2015 the United States Attorney’s Office established an Overdose Prosecution Initiative, which has become an important tool in the battle against illegal drug trafficking in Kentucky.
Under federal law, defendants convicted of drug trafficking involving a Schedule I or Schedule II drug, that results in a death or serious bodily injury (i.e., an overdose), are subject to a mandatory minimum sentence of twenty years or, if they have a qualifying prior conviction, a mandatory term of life imprisonment. This significant penalty has two practical effects on many drug dealers: it gives them an enormous incentive to assist law enforcement in the investigation and prosecution of others, and it represents a potentially enormous deterrent to dealing drugs.
Relying on this impactful sentencing provision, the United States Attorney’s Office, in partnership with the Drug Enforcement Administration, developed a considered plan to increase the use of this penalty provision, to increase the cooperation between federal and state law enforcement and community partners, to train state and local partners on building effective cases for prosecution, and to enhance the law enforcement response to this growing epidemic.
On Monday, three important convictions were obtained in local overdose cases, evidencing the effectiveness of this valuable law enforcement tool. Each of the cases highlights an important aspect of the prosecution initiative and the critical nature of the opioid epidemic.
First, in a case from Woodford County, the initiative resulted in the conviction of both Luis Aguirre-Jerardo and Gill Dewayne Garrett. These men admitted that, in July 2015, they distributed a counterfeit pain pill to a Woodford County woman, who consumed the pill and subsequently died of an overdose. The pill, made to look like Oxycodone, instead contained fentanyl, a powerful opioid as much as 100 times more potent than morphine. The investigation established that Aguirre-Jerardo was a major distributor of these deadly counterfeit pills in Central Kentucky. This case, one of the first to arise from the training provided under the initiative, represents the first time the office has prosecuted not only the street-level dealer, but also his up-the-chain source of supply, for the same overdose. Both men now face more than twenty years in federal prison.
Next, the initiative has now produced the conviction of several members of an organization responsible for trafficking in large amounts of heroin and fentanyl in Madison County. Two of these defendants, Navarius Westberry and Benjamin Fredrick Charles Robinson, both from Michigan, were convicted of distributing drugs that resulted in an overdose – in Westberry’s case, a fatal overdose. Collectively, this organization was responsible for distributing between 750 and 1,000 grams of heroin and 50 grams of fentanyl in Madison County. The investigation revealed that Westberry and Robinson relocated to Kentucky for the sole purpose of establishing a heroin distribution network. Both also face at least twenty years in federal prison.
The Detroit area is a significant source of supply for the growing amounts of heroin, fentanyl, and other narcotics being distributed throughout the Eastern District of Kentucky. This Madison County case marks the first time the office has applied the federal overdose provisions to Michigan defendants who distributed drugs in Kentucky causing an overdose. This case represents an important success in the effort to disrupt the pipeline of illicit drugs that flows from Detroit, into Kentucky.
Finally, in a case from Lexington/Fayette County, the initiative produced the conviction of Fred Rebmann. Rebmann admitted that he distributed fentanyl to a Lexington woman, who was several months pregnant at the time, causing her death. This case places the tragic scope of this epidemic in clear focus and underscores the critical need to continue efforts to educate the public and enhance law enforcement efforts to battle this growing problem.
“We are committed to using every tool available in combatting this terrible epidemic,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “We employ the tough federal law regarding overdoses advisedly, in order to prosecute those who engage in truly predatory behavior, with tragic results. Our initiative is succeeding because of the skill and dedication of our local law enforcement partners, county coroners, and the DEA.”
Since its inception, the Overdose Prosecution Initiative has been the direct source of several important prosecutions and has led to convictions against numerous drug traffickers who, collectively, are responsible for enormous quantities of very dangerous drugs and many overdose deaths in our community. Convictions have been won in every case prosecuted under the initiative that has reached a conclusion. These most recent successes evidence the scope of this growing problem, the effectiveness of the Overdose Prosecution Initiative, and the need for a comprehensive approach to combatting this serious opioid epidemic.
U.S. Attorney's Office and City of Cleveland seek applicants to serve on Community Police CommissionRead the Press Release
The City of Cleveland and the United States Attorney’s Office for the Northern District of Ohio are seeking qualified applicants to serve on the Cleveland Community Police Commission (CPC).
The CPC is a 13-person body created as part of the agreement between the City and the Justice Department to foster police and community communication and understanding and to provide input on reform. It is made up of 10 civilian representatives and one representative from each of the three police unions: the Cleveland Police Patrolmen's Association, the Fraternal Order of Police and the Black Shield.
The appointed members include representatives of faith-based organizations, civil rights advocates, business/philanthropic groups, organizations representing communities of color, advocacy organizations, youth or student organizations, academia and individuals with expertise in the challenges facing people with mental illness or the homeless.
Commission members are picked by an independent Selection Panel appointed by Mayor Frank G. Jackson, in consultation with the U.S. Attorney. The Selection Panel will recommend new CPC members, who will be appointed by the Mayor. The members serve in a volunteer capacity. Applicants to the CPC must live or work in the City of Cleveland.
Applications are due by noon September 6, 2016. For more information about how to apply to become a member of the Cleveland Community Police Commission, go to: http://cpcapplication.org/.
For more information about the CPC’s work, go to: http://www.clecpc.org/
Tohono O’odham Woman Sentenced to Prison for Involuntary ManslaughterRead the Press Release
TUCSON, Ariz. – On Aug. 15, 2016, Monique Pablo-Johnson, 47, of Sells, Ariz., a member of Tohono O’odham Indian Nation, was sentenced by U.S. District Judge Rosemary Marquez to 11 years in custody. Pablo-Johnson had previously pleaded guilty to two counts of involuntary manslaughter.
On June 6, 2013, Pablo-Johnson was under the influence of alcohol and cocaine while driving on SR 86, near Sells, on the Tohono O’odham Nation. Pablo-Johnson had three passengers in the car: her 25-year-old daughter, 7-week-old granddaughter, and adult male cousin. Pablo-Johnson was driving extremely recklessly, well over the speed limit and on the wrong side of the road. As an oncoming vehicle drew near, Pablo-Johnson swerved to her side of the road and lost control. Her car flew off of the road and struck the side of a hill. Pablo-Johnson’s daughter and granddaughter were ejected from the vehicle as they were not wearing seatbelts nor in a child restraint seat, and died from their injuries at the scene. Pablo-Johnson moved from the driver’s seat to the front passenger seat after the crash, and falsely claimed to the police that her daughter was the driver at the time of the crash.
At sentencing, Judge Marquez sentenced the Pablo-Johnson to eight (8) years of imprisonment for the death of Pablo-Johnson’s seven-week-old granddaughter and three (3) more consecutive years for the death of her daughter. In pronouncing the sentence, the Judge noted that her job was to protect the public from incapacitated drivers like Pablo-Johnson and to warn others that that there are consequences for driving while impaired.
The investigation in this case was conducted by Tohono O’odham Police Department. The prosecution was handled by Serra M. Tsethlikai, Assistant U.S. Attorney, District of Arizona, Tucson.
CASE NUMBER: CR-14-1361-TUC-RM
RELEASE NUMBER: 2016-063_ Pablo-Johnson
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three sentenced for hydrocodone, methamphetamine distributionRead the Press Release
ELKINS, WEST VIRGINIA – Three people were sentenced today for their role in the distribution of hydrocodone and methamphetamine, United States Attorney William J. Ihlenfeld, II, announced.
Nelson Joseph Boucher, 33, of Cabins, West Virginia, was sentenced to 21 months in prison for distributing hydrocodone. Boucher pled guilty in April 2016 to one count of “Distribution of Hydrocodone.”
Christina Marie Thompson, 34, of Buckhannon, West Virginia, was sentenced to 78 months in prison for distribution of methamphetamine. Thompson pled guilty in February 2016 to one count of “Possession with Intent to Distribute Methamphetamine – Aiding and Abetting.”
Christopher Ray Thompson, 26, of Beverly, West Virginia, was sentenced to twelve months and one day in prison for distribution of methamphetamine. Thompson pled guilty in April 2016 to one count of “Possession with Intent to Distribute Methamphetamine – Aiding and Abetting.”
Assistant United States Attorney Stephen D. Warner prosecuted the cases on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force investigated the Boucher case. The Mountain Region Drug and Violent Crime Task Force investigated the Thompson cases.
U.S. District Judge John Preston Bailey presided.
Three Men Get 27-30 Years in Prison for Roles in International Sex Trafficking ConspiracyRead the Press Release
HOUSTON – The first three of six men convicted for their varying roles in an international sex trafficking of minors conspiracy have been ordered to federal prison, announced U.S. Attorney Kenneth Magidson.
Jose William Quintanilla, 41, pleaded guilty just as trial testimony was set to begin Nov. 12, 2015. Adelio De Jesus Batres, 53, and Hugo Alexander Melendez-Gonzalez, 38, had pleaded imediately prior to trial. The remaining three - Francis Yuvinni Guerra Pleitez, 34, Walter Alexander Ejcalon Xalcut, 27, and Mariano Quintanilla-Campos, 33 – had previously entered guilty pleas in the case.
Today, U.S. District Judge David Hittner handed Melendez-Gonzalez a sentence of 327 months in federal prison. Quintanilla was ordered to serve a 360-month sentence, while Batres will serve 330 months. Judge Hittner also ordered them to pay $90,110.00 in restitution to the victims. In handing down the sentence, Judge Hittner noted that he wanted each of the defendants to be “thrown out of the country” after serving their prison sentences. All are citizens of El Salvador who had been residing in the Houston area and are expected to face deportation proceedings following release from prison. Pleitz, Quintanilla-Campos and Xalcut are set for sentencing Aug. 17, 18, and 19, respectively. Pleitz and Quintanilla-Campos are also from El Salvador, while Zalcut is from Guatemala.
Court records demonstrated that from late 2010 to the present, the men conspired to cause persons less than 18 years of age to engage in commercial sex acts. The men employed women and underage girls, transported them to various apartments for the purpose of engaging in sex and shared in the proceeds derived from the illegal activity. Most, if not all, of the females were also aliens illegally within the U.S.
With the exception of Melendez-Gonzalez, who admitted to sex trafficking of a particular minor, the remaining defendants were all convicted of engaging in the overall sex trafficking of minors conspiracy.
All of the defendants had been and will remain in custody.
The charges arose from an investigation conducted by the FBI, Harris County Sheriff’s Office, Houston Police Department, U.S. Customs and Immigration Enforcement’s Homeland Security Investigations and Texas Department of Public Safety. Assistant U.S. Attorneys Julie Searle and Douglas Davis are prosecuting the case.
Steve Casaus Sentenced to Ten Years in Federal Prison for Unlawful Possession of FirearmRead the Press Release
ALBUQUERQUE – Steve Casaus, 44, of Albuquerque, N.M., was sentenced today to ten years in federal prison for his conviction on a felon in possession of a firearm and ammunition charge. Casaus will serve his federal sentence consecutive to the 39-year state prison sentence Casaus already is serving for his convictions on state child abuse and drug trafficking charges.
The sentence was announced by U.S. Attorney Damon P. Martinez, 2nd Judicial District Attorney Kari E. Brandenburg, Special Agent in Charge Waldemar Rodriguez of Homeland Security Investigations (HSI) in El Paso, Texas, and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD).
U.S. Attorney Martinez said that Casaus’ federal prosecution was pursued under the federal “worst of the worst” anti-violence initiative. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior felony convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. According to court records, Casaus has been committing crimes since he was 19, and his convictions include DUI, disarming an officer, aggravated assault on a peace officer, receiving stolen property, credit card fraud, cocaine and methamphetamine trafficking, receiving stolen property, and worthless checks. His convictions also include the child abuse conviction arising out of the death of nine-year-old Omaree Varela for which Casaus received a 30-year state sentence and the consecutive nine-year sentence on a drug trafficking conviction .
Casaus was charged in a criminal complaint on April 25, 2014, with unlawfully possessing a firearm and ammunition on April 21, 2014, in Bernalillo County, N.M. Casaus was arrested after APD officers after they observed what they believed to be a drug deal, and based on an outstanding arrest warrant for failing to appear on a pending state court case. At the time of his arrest, Casaus was in possession of $20,790.00 in cash, 1.3 grams of methamphetamine, drug paraphernalia, and a firearm loaded with six rounds of ammunition.
Casaus was indicted on June 11, 2014, and charged with being a felon in possession of firearms and ammunition on April 21, 2014, in Bernalillo County. Casaus was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
The federal prosecution of Casaus was stayed during the pendency of state court proceedings. Casaus was arrested on the federal charge in Jan. 2016, after he was transferred into federal custody from state custody.
On Feb. 24, 2016, Casaus pled guilty to the federal indictment. The guilty plea was entered without the benefit of a plea agreement.
The case was investigated by the Albuquerque office of Homeland Security Investigations and APD, with assistance from the 2nd Judicial District Attorney’s Office. Assistant U.S. Attorney David M. Walsh prosecuted the case.
St. Johns County I.T. Specialist Sentenced to More Than 17 Years for Attempting to Meet A Child to Engage in Sadomasochistic Sexual ActivityRead the Press Release
Jacksonville, Florida – United States District Judge Marcia Morales Howard has sentenced Jon Christopher Stoune (45, St. Johns County) to 17 years and 6 months in federal prison for the attempted online enticement of a minor to engage in sexual activity, advertising for child pornography, and attempted production of child pornography. He was also ordered to serve a 10-year term of supervision and to register as a sex offender upon his release. Stoune was found guilty by a federal jury in March 2016.
According to evidence presented at trial, during March and April 2015, Stoune engaged in a series of online conversations with a person he believed to be a 14-year-old child. The "child" was actually a detective from the St. Johns County Sheriff’s Office. During the course of these conversations, Stoune discussed in detail his desire to have sex with and obtain pornographic pictures of the “child.” On April 21, 2015, Stoune drove to St. Augustine Beach to meet the “child” for sex and was subsequently arrested. Officers recovered a digital camera, several sex toys, and condoms from Stoune’s pants pocket. A search of his vehicle revealed, among other things, a backpack containing a leather whip, a wooden paddle, a billy club, nylon restraints, and other devices designed for use in sadomasochistic activity.
This case was investigated by the St. Johns County Sheriff’s Office, the Volusia County Sheriff’s Office, the St. Augustine Beach Police Department, and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Springdale Man Sentenced to 75 Months in Federal Prison for Drug TraffickingRead the Press Release
Fayetteville, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jorge Gonzalez, age 38, of Springdale, was sentenced today to 75 months in federal prison followed by three years of supervised release and was ordered to pay a $2400 fine on one count of Distribution of Methamphetamine. The Honorable Timothy L. Brooks presided over the sentencing hearing in the United States District Court in Fayetteville.
According to the plea agreement, on February 3, 2016, Drug Enforcement Administration agents and task force officers arranged for a controlled purchase of one ounce of methamphetamine from Jorge Gonzalez. On that same day, Gonzalez sold approximately one ounce of methamphetamine for $1,400. The suspected substance was sent to the DEA Laboratory where it was confirmed to be a mixture containing 27.4 grams of actual methamphetamine. Gonzalez was indicted by a federal grand jury on March 16, 2016 and pleaded guilty on May 12, 2016.
This case was investigated by the Drug Enforcement Administration agents and task force members. Assistant United States Attorney Amy Driver prosecuted the case for the United States.
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Related court documents may be found on the Public Access to Electronic Records website @ www.pacer.gov
South Carolina Man Sentenced to More Than Six Years for Tax Fraud ConspiracyRead the Press Release
ASHEVILLE, N.C. – Today, U.S. District Judge Martin Reidinger sentenced a South Carolina man to 75 months in prison on false claims conspiracy and aggravated identity theft charges, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Carmichael Cornilus Hill, 34, of Greenville, S.C. was also ordered to serve three years under court supervision and to pay $219,118 as restitution to the Internal Revenue Service.
Thomas J. Holloman III, Special Agent in Charge of the Internal Revenue Service, Criminal Investigation Division (IRS-CI); Thomas L. Noyes, Inspector in Charge of the Charlotte Division of the U.S. Postal Inspection Service; and Michael Rolin, Special Agent in Charge of the United States Secret Service, Charlotte Field Division, join U.S. Attorney Rose in making today’s announcements.
According to court records and today’s sentencing proceedings, Hill provided his two co-conspirators, Senita Birt Dill and Ronald Jeremy Knowles, with fraudulently-obtained personal identification information of individuals which Dill and Knowles used to file more than 1,000 false tax returns resulting in the collection of more than $3.5 million in fraudulent tax refunds. According to court records, Hill obtained the individuals’ personal information (including names, dates of birth and social security numbers) through a variety of ways, including from an unindicted co-conspirator with access to that information. Hill then provided that information to Dill and Knowles for use in the tax fraud scheme. Court records indicate that Hill provided approximately 26% of the stolen identifications used to file the fraudulent returns.
Court records indicate that Dill and Knowles shared with Hill and other co-conspirators the fraudulently-obtained refunds. Court records also show that, at times, Hill permitted Dill to directly deposit the fraudulent refunds into his bank account.
Hill pleaded guilty in April 2016 to one count of false claims conspiracy and one count of aggravated identity theft. He will be ordered to report the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
Dill and Knowles, formerly of Mill Spring, N.C., were previously sentenced to 324 and 70 months in prison, respectively, for their involvement in the conspiracy. Two additional defendants, Yolanda Kitson and Cara Michelle Banks were sentenced to 72 and 70-month prison terms for their participation in the tax fraud scheme.
The investigation was handled by IRS-CI, USPIS, and the U.S. Secret Service.
Assistant U.S. Attorney Don Gast of U.S. Attorney’s Office in Asheville was in charge of the prosecution.
Seven Luzerne County Residents Charged with Participating in A “Bath Salts” ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania, announced that a federal grand jury in Scranton indicted seven people on August 9, 2016, for participating in a conspiracy to sell the substance alpha-pyrrolidinopentiophenone (a-pvp), commonly referred to as “bath salts.” The indictment was unsealed today following the arrests of defendants.
According to United States Attorney Peter Smith, the indictment alleges that the defendants obtained the bath salts from suppliers in China and distributed it to customers in Luzerne County and elsewhere during March 2014 to January 2016. The grand jury also alleges that the conspirators used violence, intimidation, and possessed firearms in furtherance of the drug trafficking activities.
Those charged in the drug conspiracy are:
--William Wylie, age 47, of Wilkes-Barre;
--Jason Randazzo, age 43, of Mountain Top;
--Daniel Fitzgibbon a/k/a “Diz,” age 46, of Wilkes-Barre;
--Robert Benussi III, age 25, of Kingston;
--Kerry Wylie, age 24, of Wilkes-Barre;
--Kevin Peterson, age 32, of West Pittston;
--David Popish, age 37, of Pittston.
William Wylie, Kerry Wylie and Jason Randazzo are also charged with conspiracy to import a-pvp from China, and an attempt to possess with intent to distribute a-pvp on December 21, 2015.
William Wylie is further charged with possessing a firearm in connection with drug trafficking, and possessing a firearm as a convicted felon.
The charges against the defendants resulted from an investigation by Homeland Security Investigations and the Pennsylvania State Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the cases.
William Wylie faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of life in prison if convicted of the firearms related to drug trafficking charge, up to 10 years in prison if convicted of the felon in possession of a firearm charge, and up to 20 years in prison on each of the conspiracy to distribute and import a-pvp counts.
Kerry Wylie and Jason Randazzo each face up to 40 years in prison if convicted of the conspiracy to import and distribute a-pvp counts. The remaining defendants face up to 20 years in prison if convicted of the conspiracy to distribute a-pvp count.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Schuylkill County Couple Charged with Use of Counterfeit Credit Card and Money Laundering Schemes over Four Year PeriodRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that on July 26, 2016, a federal grand jury in Scranton indicted Carrie F. Aker and Mario M. Valentine, a Shenandoah, Pennsylvania couple, for conspiracy to commit wire fraud using counterfeit credit cards, and with laundering the proceeds of their fraudulent activities. Aker and Valentine also are charged with aggravated identity theft, credit and debit card frauds, and with possessing credit and debit card-making equipment. The indictment was unsealed today following the arrests of the defendants.
According to United States Attorney Peter Smith, the indictment charges Aker, age 44, and Valentine, age 33, with obtaining credit and debit card account information of other individuals from unindicted co-conspirators and from black market internet websites. Aker and Valentine allegedly manufactured counterfeit credit and debit cards using the information, traveled to locations at which the actual cardholders resided, and used the counterfeit cards at retail stores. The couple also allegedly used aliases and forged names and signatures on credit and debit card receipts. The activities took places from in or about November 2011 through September 2015.
The indictment also alleges that Aker and Valentine engaged in money laundering activities with the proceeds of their credit and debit card frauds by purchasing pre-paid gift cards and retail items at retail stores, reselling the cards and items or uploading the card balances to payment processor accounts, and then using and disbursing the funds via cash, checks and bank accounts.
The investigation was conducted by the Federal Bureau of Investigation and by the Pennsylvania State Police. The case is being prosecuted by Assistant United States Attorney Phillip J. Caraballo.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for the most serious charges are up to 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. The aggravated identity theft charges carry a mandatory two-year term of imprisonment, to run consecutive to any other term of imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Santa Fe Man and San Pedro Woman Sentenced for Robbing Bank in EspanolaRead the Press Release
ALBUQUERQUE – Fidel Naranjo, 27, of Santa Fe, N.M., and Kendra Brophy, 29, of San Pedro, N.M., were sentenced today in federal court in Albuquerque, N.M., for convictions arising out of the Dec. 2, 2015 robbery of a bank in Espanola, N.M. Naranjo was sentenced to a 40-month term of incarceration followed by three years of supervised release, and Brophy was sentenced to a year of probation to be served under home confinement with electronic monitoring followed by five years of supervised release. Brophy also was ordered to perform 300 hours community service and complete a 90-day inpatient substance abuse treatment program.
Naranjo and Brophy were arrested in Dec. 2015, on criminal complaints charging them with robbing the New Mexico Bank and Trust branch located at 411 Carr Lane in Espanola, N.M. on Dec. 2, 2015. According to the complaint, Naranjo robbed the bank by approaching a bank teller, threatening to shoot her, and demanding money. Naranjo left the bank and was driven away from the scene by Brophy.
Naranjo and Brophy were subsequently indicted on Dec. 17, 2015, and charged with bank robbery.
In April 25, 2016, Naranjo pled guilty to the indictment and admitted that on Dec. 2, 2015, he robbed the New Mexico Bank and Trust in Espanola, by entering the bank and demanding money from the teller.
Brophy pled guilty to a felony information charging her with misprision of a felony on April 21, 2016. In entering her guilty plea, Brophy admitted that on Dec. 2, 2015, her codefendant Naranjo robbed a bank while she waited nearby. Brophy admitted concealing the identity of the bank robber and the cash he obtained during the robbery, and failing to notify the authorities about her codefendant and the robbery.
This case was investigated by the Albuquerque office of the FBI and was prosecuted by Assistant U.S. Attorney Edward Han.
Salem Man Sentenced to 2 Years of Probation for Making False Statement to A Federal AgencyRead the Press Release
CONCORD, NEW HAMPSHIRE: United States Attorney Emily Gray Rice announced that Steven A. Petrillo, 46, of Salem, New Hampshire, was sentenced to 2 years of probation after a jury found him guilty of making a material false statement to the Department of Veterans’ Affairs.
Petrillo was indicted on February 10, 2016, by a federal grand jury in Concord, New Hampshire. The indictment charged him with providing a false statement to the Department of Veterans’ Affairs in connection with seeking a position as a pharmacist at the VA Medical Center in Manchester, New Hampshire. In his application, Petrillo certified that he had never been discharged from any former employment. During a jury trial in May of 2016, testimony from several witnesses established that Petrillo had been terminated from two prior pharmacist positions.
Petrillo was sentenced by Chief Judge Joseph Laplante of the United States District Court for the District of New Hampshire.
This case was investigated by the Department of Veterans’ Affairs and the Drug Enforcement Administration. Assistant United States Attorney Helen White Fitzgibbon prosecuted the case on behalf of the United States.
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Sacramento Jury Convicts Southern California Man in $5M Unemployment Benefits Fraud SchemeRead the Press Release
SACRAMENTO, Calif. — On Monday, after a six–day trial, a federal jury found Andre Antonio Walters, 36, of Long Beach, guilty of four counts of mail fraud, Acting United States Attorney Phillip A. Talbert announced. The trial was held before United States District Judge Troy L. Nunley.
According to evidence presented at trial, Walters was a “manager” in a scheme to defraud the State of California of unemployment benefits from approximately 2008 to 2011. The scheme involved registering fictitious businesses with the state, listing “employees” as having earned wages at those fictitious businesses when in fact they had never worked there, and then filing for unemployment benefits on behalf of those “employees.” Walters recruited people to pose as these “employees,” managed their unemployment claims once filed, and split the resulting unemployment benefits checks that were mailed out of West Sacramento. According to the indictment, the scheme resulted in at least $5 million in fraudulently obtained unemployment benefits being disbursed by the state.
Acting U.S. Attorney Phillip A. Talbert stated: “The funds set aside for unemployment insurance are intended to benefit hard-working Californians who have earned the right to receive those benefits. Fraud schemes that damage and deplete the fund undermine the benefit system and cheat those that the funds are intended to protect. We will continue to investigate and stop fraud schemes such as this that harm California workers.”
“Andre Walters conspired to defraud the California Employment Development Department of over $5 million. Walters and his co-conspirators stole money that was intended for American workers in need of relief from the financial effects of unemployment. We will continue to work with our law enforcement partners to safeguard the Unemployment Insurance system from those who exploit benefit programs,” stated Abel Salinas, Special Agent-in-Charge of the Los Angeles Regional Office of the U.S. Department of Labor, Office of Inspector General.
This case is the product of an investigation by the United States Department of Labor, Office of Inspector General and the California Employment Development Department. Assistant United States Attorneys Jared C. Dolan and Matthew M. Yelovich are prosecuting the case.
Walters is the sixth individual to be convicted for participating in this fraud scheme. Kenneth Kim Parks, 54, of Pomona, and of Long Beach, was sentenced to five years in prison. Gregory Bart Martin, 35, of Lakewood, was sentenced to 18 months of probation, Michael Ray Taylor Sr., 51, of Fontana, was sentenced to three years in prison; and Michael Ray Taylor Jr., 31, of El Monte, is scheduled to be sentenced on November 17, 2016.
Walters is scheduled to be sentenced by Judge Nunley on November 3, 2016. Walters faces a maximum statutory penalty of 20 years in prison and a $250,000 fine for each count of conviction. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Rhode Island Man Sentenced to 20 Months for Travelling Interstate to have Sex with a MinorRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that William McNeill, 23, of Cumberland, Rhode Island, was sentenced today in U.S. District Court by Judge George Z. Singal to 20 months in prison and five years of supervised for travelling interstate to engage in sexual conduct with a minor. He will also be required to register as a sex offender, and while on supervised release his access to minors, computers, and the Internet will be restricted.
According to court documents, in the fall of 2014, McNeill met a 14-year-old girl from Cumberland County online. On about October 18, 2014, following several weeks of communicating with the juvenile in a sexually explicit manner, McNeill travelled from North Carolina to Maine to meet and have sexual relations with her.
The case resulted from a joint investigation between the Naval Criminal Investigative Service and the Bridgton, Maine Police Department.Rapid City Woman Sentenced for Mail FraudRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, woman convicted of Mail Fraud was sentenced on August 15, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Danelle Arlene Newman, a/k/a Danelle Marshall, age 36, was sentenced to five years’ probation and ordered to pay a $100 special assessment to the Federal Crime Victims Fund and $23,246.95 in restitution.
Newman was charged on November 17, 2015, and pled guilty on April 29, 2016. The charge related to Newman fraudulently completing and mailing deeds to restricted Indian lands belonging to her mother to the Office of Special Trustee for American Indians and then using the money for her personal benefit.
This case was investigated by the Department of Interior, Office of Inspector General. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Rapid City Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 15, 2016, by U.S. District Judge Roberto A. Lange.
Jeremy Eagle Bear, age 26, was sentenced to 12 months and one day in custody, 5 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Eagle Bear was indicted by a federal grand jury on April 13, 2016. He pled guilty on June 7, 2016.
Eagle Bear was convicted of Sexual Abuse of a Minor in federal court in January 2014. He was sentenced to 18 months of custody, followed by 6 years of supervised release. Eagle Bear is required to register as a sex offender for 25 years following his conviction and to update his registration within three business days of relocating or changing employment. In October 2015 Eagle Bear registered with an address in Rapid City. On December 10, 2015, Eagle Bear was to report to the U.S. Probation Office in Pierre, South Dakota, and he failed to do so. On December 15, 2015, the probation office was unable to locate Eagle Bear at his apartment in Rapid City, and an arrest warrant was issued. In March 2016, Eagle Bear was found living in Parmelee, South Dakota, and he was arrested. Eagle Bear did not update his sex offender registration between December 2015 and March 2016.
This case was investigated by the U.S. Marshals Service and the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Kirk Albertson prosecuted the case.
Eagle Bear was immediately turned over to the custody of the U.S. Marshals Service.
Randolph County man sentenced for possessing counterfeit moneyRead the Press Release
ELKINS, WEST VIRGINIA – Jonathan J. Ross, 30, of Elkins, West Virginia, was sentenced to eight months in prison for possessing counterfeit money, United States Attorney William J. Ihlenfeld, II, announced.
Ross was found in possession of four hundred and fifty dollars in counterfeit currency. He pled guilty in February 2016 to one count of “Uttering Counterfeit Obligations and Securities – Aiding and Abetting.”
Assistant United States Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The United States Secret Service, the West Virginia State Police, and the Clarksburg Police Department investigated.
U.S. District Judge John Preston Bailey presided.
Prime Contractor Employee at U.S. Military Bases Admits $1.4 Million Fraud and Taking KickbacksRead the Press Release
NEWARK, N.J. – A Pennsylvania man employed as a regional manager for a contractor involved with construction projects at Picatinny Arsenal (PICA) and at Joint Base McGuire-Dix- Lakehurst (Ft. Dix) admitted today his role in a fraud scheme that caused losses of $1.4 million, U.S. Attorney Paul J. Fishman announced.
James Conway, 45, pleaded guilty before U.S. District Judge Susan D. Wigenton in Newark federal court to an information charging him with one count of wire fraud and one count of accepting unlawful kickbacks.
According to documents filed in this case and statements made in court:
From September 2009 to August 2015, Conway secretly owned a company called Walsh Construction Services, LLC (Walsh Construction), which purported to provide construction services. Using his position as regional manager for a construction contractor, Conway steered subcontracts to Walsh Construction for jobs at PICA and Ft. Dix. To conceal his ownership of Walsh Construction, Conway signed the subcontracts as Keith Walsh, the purported owner or vice president of Walsh Construction. There was, in fact, no person by that name who owned or was the vice president of Walsh Construction.
Conway used Walsh Construction to obtain payments from the construction contractor by submitting invoices and bills on behalf of Walsh Construction for work purportedly performed at PICA and Ft. Dix. Many of the invoices and bills included charges for work that Walsh Construction only partially did, or for work that was not performed at all by Walsh Construction, causing losses of $1.4 million.
Conway also accepted kickbacks totaling $180,345, from four subcontractors who served as subcontractors to the contractor on various construction projects at PICA and Ft. Dix knowing that the subcontractors expected, in return, to obtain favorable treatment from Conway.
The wire fraud charge to which Conway pleaded guilty carries a maximum potential penalty of 20 years in prison. The charge for accepting unlawful kickbacks to which Conway pleaded guilty carries a maximum potential penalty of 10 years in prison. Both charges carry a maximum fine of $250,000 or twice the gross gain or loss associated with the offense, whichever is greatest. Sentencing is scheduled for Nov. 30, 2016.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher; the U.S. Department of Defense, Defense Criminal Investigative Service, under the direction of Special Agent in Charge Craig Rupert; and the U.S. Army, Major Procurement Fraud Unit, Criminal Investigation Command, under the direction of Special Agent in Charge Larry Scott Moreland, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Barbara R. Llanes and Senior Litigation Counsel Leslie Faye Schwartz of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: James Friedman Esq., New Brunswick, New Jersey
Philadelphia Man Charged with Possession by A Convicted FelonRead the Press Release
An Indictment[1] was filed today charging Anthony Poole, 35, of Philadelphia, Pennsylvania with possession of firearm by a convicted felon, announced United States Attorney Zane D. Memeger.
If convicted, defendant faces a maximum of ten years imprisonment, three years of supervised release, and a substantial fine.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms & Explosives and the Philadelphia Police Department and is being prosecuted by Assistant United States Attorney Ewald Zittlau.
[1]An Indictment or Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Pair Sentenced on Health Care Fraud, Conspiracy ChargesRead the Press Release
ABINGDON, VIRGINIA – A pair of former lab professionals, who were convicted of billing Medicaid, Medicare, TennCare and a variety of other insurance companies following a bench trial earlier this year, were sentenced yesterday in the United States District Court for the Western District of Virginia in Abingdon, United States Attorney John P. Fishwick Jr., Virginia Attorney General Mark R. Herring and HHS Office of Inspector General Special Agent in Charge Nick DiGiulio announced today.
Beth Palin, 50, and Joseph D. Webb, 55, both of Bristol, Tenn., were convicted on April 7, 2016 following a bench trial of one count of conspiracy to commit health care fraud and health care fraud. Yesterday in United States District Court, Palin and Webb were both sentenced to 36 months in federal prison and ordered to pay $1,436,887 in restitution.
“These defendants stole over a million dollars from health care programs designed to provide care to those who need the most help. Medicare and Medicaid are not a means to line the pockets of fraudsters like Ms. Palin and Mr. Webb,” United States Attorney Fishwick said today. “I am thankful for the work of the Virginia AG’s Office, Medicaid Fraud Control Unit and all of our law enforcement partners who worked on this case. It is important for us to keep fraud and abuse out of these very important social programs.”
“Palin and her associates exploited important safety net programs and the prescription drug abuse crisis to benefit themselves to the tune of over a million dollars,” said Attorney General Mark Herring. “We will continue to work with U.S Attorney Fishwick and other local, state, and federal partners to crack down on this kind of theft and fraud, and to address the problem of heroin and prescription drug abuse from every possible angle.”
“Clinical labs play a critical role in providing care for people on Medicare,” said Nick DiGiulio, Special Agent in Charge for the Office of Inspector General at the U.S. Department of Health and Human Services. “Lab professionals who aim to get rich quick by cheating patients and taxpayers, as in this case, can expect to pay a high price for their crimes.”
According to evidence presented during the bench trial by Assistant Attorney General and Special Assistant United States Attorney Janine Myatt, Webb and Palin owned Bristol Labs, which was a lab that specialized in urine drug screen testing. Bristol Labs worked with Dr. Charles Kim Wagner, a medical doctor licensed by the Drug Enforcement Administration to prescribe Suboxone. Wagner opened what purported to be a substance abuse treatment program that involved only medication assisted treatment using Suboxone in Bristol, Virginia. His practice accepted cash payment only and charged $250 for an initial visit and $100-$110 each week thereafter. Wagner’s office was located next to Bristol Labs in an adjacent office suite within the same physical building as Bristol Labs. Drug screenings were required for Wagner’s patients at each weekly visit and Wagner sent 100 percent of his patients to Bristol Labs for their drug screenings.
Although patients paid cash for doctor’s appointments, they could use Medicare or Medicaid to pay Bristol Labs for prescriptions and the cost of urine drug screenings. The type of drug screening Wagner ordered depended solely on the method of payment. If a patient was uninsured or “self-pay,” Wagner ordered a $25 dip-stick or “quick cup” urine drug screen from Bristol Labs. However, if a patient was paying via insurance, Medicaid or Medicare, Wagner ordered two separate, automated screens performed by Bristol Labs and by another confirmation Lab in Denver, Colorado. These patients paid nothing out of pocket, however Medicare, Medicaid or their insurance company would be billed between $120-$1,800 for these tests each week. These tests were medically unnecessary and Wagner did not use the results of the tests to direct patient care.
Palin and Webb eventually opened their own addiction practice in Gate City, Virginia, called Mtn. Empire Medical Care. Palin and Webb instituted a nearly identical drug testing protocol to the one at Wagner’s practice, self-pay patients paid an extra $25 and got a quick cup test while insured patients got two automated screens which were billed to their insurance companies and paid nothing out of pocket. These expensive tests were medically unnecessary.
In total, this conspiracy fraudulently billed Virginia Medicaid, TennCare, Medicare, Aetna, Optum/United Health Care, Anthem/Blue Cross-Blue Shield of Virginia, Anthem/Blue Cross-Blue Shield of Tennessee and Cigna, $14,278,340 for medically unnecessary urine screens.
Dr. Wagner died during the course of this investigation and was therefore not charged in this matter.
The investigation of the case was conducted by Virginia Office of the Attorney General’s Medicaid Fraud Control Unit, United States Health and Human Services-Office of Inspector General, the Tennessee Bureau of Investigation, the Internal Revenue Service, the Bristol, Virginia Police Department, The Virginia State Police, the Bristol, Tennessee Police Department, the Scott County Sheriff’s Office and the United States Marshals Service. Assistant Attorney General and Special Assistant United States Attorney Janine Myatt and Assistant United States Attorney Zachary T. Lee prosecuted the case for the United States.
PNC Bank to Pay $9.5 Million for Failing to Engage in Prudent Underwriting Practices for Loans Guaranteed by the U.S. Small Business AdministrationRead the Press Release
Baltimore, Maryland – PNC Bank N.A. has agreed to pay the United States $9.5 million to settle claims under the False Claims Act in connection with the issuance of loans guaranteed by the U.S. Small Business Administration (SBA). PNC is a national banking association with its principal offices located in Pittsburgh.
The settlement was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; U.S. Small Business Administration Inspector General Peggy E. Gustafson; and SBA General Counsel Melvin F. Williams, Jr.
“Banks that are trusted to make loans backed by the SBA have a duty to apply proper lending standards, because the United States is obligated to pay when federally-backed loans default,” said U.S. Attorney Rod J. Rosenstein. “The government will vigorously pursue lenders that fail to enforce reasonable lending standards and stick the taxpayers with the bill for bad loans.”
“This case is the latest example of the significant, positive results achieved through the combined efforts of the SBA and the Department of Justice to uncover, and forcefully address, civil fraud committed in connection with SBA's lending programs,” said SBA General Counsel, Melvin F. Williams, Jr. “Rooting out, and vigorously pursuing, instances of civil fraud committed by those who participate in the lending programs of SBA is among the highest priorities of this Agency.”
“The SBA Office of Inspector General will aggressively investigate wrongdoing in SBA programs,” said Inspector General Peggy E. Gustafson. “SBA’s loan programs are designed to provide eligible small businesses access to capital to finance and grow their businesses, and SBA’s preferred lenders have a responsibility to apply prudent lending standards in making these loans.”
The SBA Act allows banks to partner with the SBA to make loans to qualified small businesses. Participants in the SBA’s Preferred Lenders Program (PLP), like PNC, have authority to make and close these loans without obtaining the prior approval of the SBA. Banks are required to comply with terms and conditions, including SBA regulations, standard operating procedures (“SOPs”), and prudent lending standards, when making loans under the Preferred Lenders Program. In the event a borrower defaults on the loan, SBA guarantees to repay the lender 75% of the balance of the loan.
As a PLP lender, PNC approved 74 SBA-guaranteed loans that were brokered by Jade Capital & Investments LLC (“Jade Capital”) through its principals, including Joon Park (“Park”). Beginning in 2006, certain Jade Capital loans went into default. PNC submitted guaranty claims to SBA for payment for many of the defaulted loans. The SBA approved the claims for 24 loans and paid PNC the SBA-guaranteed portion of the unpaid balance of the loans at the time of default, minus any recovery from the liquidation of business assets.
The U.S. Attorney’s Office for the District of Maryland subsequently prosecuted Joon Park and others associated with Jade Capital, for conspiring to commit bank fraud in connection with a scheme to fraudulently obtain business loans guaranteed by the SBA, with resulting losses of over $100 million. Joon Park and other defendants admitted in plea agreements that they created and submitted false and fraudulent documents to secure PNC’s loan approval. For example, Joon Park and others used computer software programs to alter bank statements, and created false management resumes, profit/loss figures, and gift letters, among other documents. PNC in turn approved the loans based on the documentation provided by Joon Park and others. Joon Park and five other defendants were convicted for their roles in the scheme and sentenced to federal prison.
The United States contends that it has civil claims against PNC with regard to the Jade Capital Loans for failing to adhere to requirements as a PLP lender, including demanding adequate bank and IRS tax records from the borrowers, ensuring that the borrowers had the ability to repay the loans, and failing to apply prudent lending standards. Moreover, PNC sought payment on SBA guarantees even though PNC should have known that SBA requirements to recover on the guarantees were not met.
U.S. Attorney Rod J. Rosenstein thanked Assistant U.S. Attorneys Jason D. Medinger and Roann Nichols, the SBA Office of Inspector General and the SBA Office of General Counsel for the collaboration that resulted in the settlement announced today. The claims settled by this agreement are allegations only; there has been no determination of liability. Criminal charges against Jade Capital and its co-owner Loren Park, who is a fugitive, are still pending.
Owner of EMATS Pleads Guilty to Conspiracy and Tax ChargesRead the Press Release
ABINGDON, VIRGINIA – A local business owner, who employed at least one person he knew was receiving federal disability benefits, pled guilty today in the United States District Court for the Western District of Virginia in Abingdon to conspiracy and tax charges, United States Attorney John P. Fishwick Jr. announced.
Jonathan I. Bowerbank, of Rosedale, Va., pled guilty today to one count of conspiracy to defraud the Social Security Administration and one count of impeding internal revenue laws.
“The disability benefit provided by the Social Security Administration is meant to be a source of stability for those too disabled to work. It is not a means for paid employees to supplement their income,” United States Attorney Fishwick said today. “We will continue to devote resources to ridding the system of fraud and abuse, and will continue to hold accountable employers who falsely report wages so that employees may continue to collect disability benefits to which they are not entitled.”
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Jennifer R. Bockhorst, Bowerbank has been the controlling owner and president of EMATS Inc., since November 1998. From 2003 to 2012, Bowerbank employed Billy Vance and Brenda Vance, who were his next door neighbors.
Billy Vance had been collecting disability benefits since 1987. To hide the fact that Billy Vance was gainfully employed, EMATS Inc. reported all of the payments for the work performed by Billy Vance on Brenda Vance’s Form W-2. This had the effect of hiding Billy Vance’s ability to work from the Social Security Administration As a result, Billy Vance received $186,677.10 in disability benefits to which he was not entitled. Billy Vance and Brenda Vance previously pled guilty to disability fraud charges and repaid the government all of the money fraudulently obtained.
Bowerbank also admitted today that he failed to properly report to EMATS bookkeepers which credit card expenses were personal expenses rather than business expenses. As a result, Bowerbank’s income was underreported on three years of his tax returns.
The investigation of the case was conducted by the Internal Revenue Service – Criminal Investigations and the Social Security Administration – Office of Inspector General. Assistant United States Attorneys Jennifer R. Bockhorst and Randy Ramseyer, as well Gregory E. Tortella and Joseph M. Giannullo, trial attorneys for the Department of Justice’s Tax Division, prosecuted the case for the United States.
Orange County Man Who Embezzled Millions of Dollars from Three Different Employers Sentenced to over 10 Years in Federal PrisonRead the Press Release
SANTA ANA, California – An Orange County man who pleaded guilty to embezzling approximately $1.4 million from his employer – while he was pending sentencing in another $2.6 million embezzlement case – has been sentenced to 121 months in federal prison.
Peter Suk Lee, 49, a resident of the City of Orange, was sentenced late yesterday by United States District Judge David O. Carter.
Lee pleaded guilty earlier this year to a bank fraud charge and admitted that he embezzled company funds from Contempo Inc. USA, a family-owned, Los Angeles-based business that imports and distributes fashion accessories.
Judge Carter noted that the founders of Contempo, who had immigrated from South Korea, had grown Contempo into a successful business that “created jobs and hope” for other immigrants. But Lee had destroyed their “great American dream,” Judge Carter said.
From August 2014 through September 2015, Lee was the controller at Contempo. During this time, Lee embezzled money by forging the signatures of the company officers on 92 unauthorized checks that were made out to him and several associates. The total value of these checks was $1.38 million. Lee admitted that he deposited $393,400 embezzled from Contempo into his personal TD Ameritrade account, and caused other embezzled funds to be wired to casinos for his use.
When he embezzled the funds from Contempo, Lee was pending sentencing in another federal case in which he admitted embezzling approximately $2.65 million from Glovis America, Inc., an Irvine-based automotive logistics company where Lee had been employed as the accounting manager. In the Glovis case, Lee pleaded guilty in April 2015 to three counts of wire fraud for the embezzlement that spanned October 2009 through June 2011.
When he pleaded guilty in May in the Contempo case, Lee also admitted that he stole approximately $70,000 from Orion Technology, Inc. in Anaheim, where he worked in 2014, between his stints at Glovis and Contempo.
“Mr. Lee’s crimes caused significant damage to three different employers, one of which was forced to lay off 20 employees and is struggling to keep its doors open,” said United States Attorney Eileen M. Decker. “This defendant went to great lengths to continue his theft, including attempting to hide his second embezzlement from court officers preparing a pre-sentence report regarding his first embezzlement.”
Lee “admitted that he used embezzled Glovis money to pay personal bills, for instance for his auto insurance, his credit cards and his mortgage, as well as for gambling,” prosecutors wrote in a sentencing memorandum filed with the court. “Likewise, defendant used the money he embezzled from Contempo for more than just gambling; he transferred substantial sums to his personal brokerage account and gave large amounts to a female associate who used the money to pay her rent; purchase jewelry, home furnishings and appliances; and cover her living expenses.”
As part of Lee’s sentence, Judge Carter ordered Lee to pay $2,890,527 in restitution to his victims.
Judge Carter yesterday also sentenced another participant in in the Glovis fraud. John Wootae Kim, 46, of Irvine, who opened a fraudulent bank account as part of the embezzlement scheme, was sentenced to 30 months in federal prison.
In relation to the scheme that targeted Contempo, a second defendant has pleaded not guilty and is scheduled to go on trial before Judge Carter in January. Hyemi Kim, 35, of Los Angeles (Mid-Wilshire), is charged in a grand jury indictment with bank fraud and interstate transportation of stolen property.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
These cases were investigated by the Federal Bureau of Investigation. The cases are being prosecuted by Assistant United States Attorneys Ranee Katzenstein of the Major Frauds Section and Mark Takla of the Terrorism and Export Crimes Section.
Ohio man pleads guilty to Federal gun crimesRead the Press Release
CHARLESTON, W.Va. – An Ohio man pleaded guilty today to federal gun charges, announced United States Attorney Carol Casto. Austin Russell Ash, 21, of Belpre, entered his guilty plea today to one count of possession of a firearm with an obliterated serial number and one count of possession of a firearm by an unlawful user of a controlled substance.
As part of an investigation in June 2015, the Parkersburg Police Department conducted a search at the house where Austin Ash resided on Laird Avenue in Parkersburg. During the search, law enforcement discovered a CBC, 715T model, .22 caliber rifle with an obliterated serial number in Ash’s bedroom. Ash admitted to law enforcement that he possessed the gun and that he had removed the serial number. He further admitted to law enforcement that at the time he possessed the gun he was a user of marijuana.
Ash faces up to 15 years in federal prison, up to five years for possession of a firearm with an obliterated serial number and up to 10 years for possession of a firearm by an unlawful user of a controlled substance. His sentencing is scheduled for December 1, 2016.
The Parkersburg Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives conducted the investigation. Assistant United States Attorney Clint Carte is responsible for the prosecution. The plea hearing was held before United States District Judge Thomas E. Johnston.
This case was brought as part of Project Safe Neighborhoods. Project Safe Neighborhoods is a nationwide commitment to reduce gun crime in the United States by working with existing local programs that target gun crime.
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Odessa Lawyer Admits Making False Statement to Federal AuthoritiesRead the Press Release
Rahul Malhotra, 46-year-old principal owner of Malhotra Law Firm, P.C. in Odessa and citizen of Canada, faces up to five years in federal prison after pleading guilty today to making a false statement to federal authorities announced United States Attorney Richard L. Durbin, Jr., and Homeland Security Investigations (HSI) Special Agent in Charge Waldemar Rodriguez, El Paso Division.
Appearing before United States Magistrate Judge Henry J. Bemporad in San Antonio, Malhotra admittedly lied to federal authorities about his ownership of the law firm--a violation of his Visa conditions. According to court records, in March 1997, Malhotra entered the United States as a Non-immigrant “TN” Visa holder to begin working at a law firm in Odessa. In 2000, Malhotra purchased the practice and the office space from its owner. When questioned in October 2014, Malhotra told investigators that another lawyer was the majority shareholder of the Malhotra Law Firm when in fact, he was self-employed as the proprietor of the law firm.
Malhotra remains on bond pending sentencing scheduled for 9:00am on November 17, 2016, before United States District Judge Orlando Garcia.
This investigation was conducted by HSI agents together with U.S. Citizenship and Immigration authorities. Assistant United States Attorney William F. Lewis, Jr., is prosecuting this case on behalf of the Government.
Oakland Resident Sentenced to Nine Years in Prison for Being A Felon in Possession of A FirearmRead the Press Release
OAKLAND – Anton Coker was sentenced to nine years’ imprisonment today after pleading guilty to being a felon in possession of a firearm, announced United States Attorney Brian J. Stretch and Bureau of Alcohol, Tobacco, Firearms, and Explosives (ATF) Special Agent in Charge Jill Snyder. The sentence was handed down by the Honorable Jeffrey S. White, United States District Judge, following a guilty plea entered on April 19, 2016.
As part of his plea agreement, Coker, 42, of Oakland, admitted he had previous felony convictions which prevented him from being entitled to legally possess firearms or ammunition. Nevertheless, between June 30, 2015, and July 31, 2015, Coker possessed and sold to a confidential informant and undercover agents a total of five guns and ammunition. During the same period, Coker also sold crack cocaine from his Oakland residence. On August 17, 2015, agents executed a search warrant at Coker’s residence and the storage unit next to it. In the storage unit, agents seized two more handguns and ammunition that Coker admitted belonged to him.
Coker was indicted on August 27, 2015, and charged with four counts of being a felon in possession of firearms and ammunition, in violation of 18 U.S.C. § 922(g)(1). Pursuant to his plea agreement, he pleaded guilty to one count and admitted the conduct underlying the other three counts, which were dismissed.
Judge White also sentenced Coker to a three-year period of supervised release, to commence after Coker completes his prison sentence. Coker has been in custody since his arrest in January of 2016. He will begin serving his sentence immediately.
Assistant U.S. Attorney Jonas Lerman is prosecuting the case with assistance from Assistant U.S. Attorney Denise Barton and Jeanne Carstensen. The prosecution is the result of an investigation by the ATF with the assistance of the United States Marshal’s Service.
New Madrid County Man Sentenced on Federal Charges Involving Farm Subsidy and Crop Insurance FraudRead the Press Release
Cape Girardeau, MO – Bobby David Lowrey was sentenced to 24 months in prison on multiple charges involving federal crop insurance fraud, theft of government property and wire fraud.
According to court documents, Bobby David Lowrey owned and operated farms and related businesses in Parma, New Madrid County, Missouri, including Bobby David Lowrey Farms, Lowrey and Lowrey, Inc. of Parma, Missouri, John Radin Farms and Kathy Ellsworth Farms.
Bobby David Lowrey placed farms in other people’s names in order to obtain federal farm subsidy payments that he was not entitled to receive under the Direct and Counter-Cyclical Payment Program. The investigation disclosed that John Radin, the alleged operator of Radin Farms, was employed by Bobby David Lowrey and not actively engaged in farming and did not have any financial interest in the farming operations. Lowery made false statements to the United States Department of Agriculture pertaining to the Federal Crop Insurance Corporation and Direct and Counter-Cyclical Payment Program.
From 2007 to 2012, Bobby David Lowrey obtained $240,367 in direct and counter-cyclical payments in the name of John Radin Farms. Additionally, $207,729 worth of Multiple Peril Crop Insurance Indemnities, premium subsidies and administrative subsidies were paid on behalf of John Radin Farms between 2008 and 2012.
The investigation also disclosed that between 2006 and 2011, Bobby David Lowrey transmitted by wire “Extended Work Search Waivers” to the Missouri Division of Employment Security, and reported that his employees were on a temporary layoff, when in reality they were still working and being paid. The transmissions made to the Missouri Division of Employment Security resulted in more than $60,000 worth of Unemployment Insurance benefits being paid to employees that they were not eligible to receive.
Bobby David Lowrey, Parma, MO, pled guilty in May to two felony counts of making false statements regarding crop insurance benefits, one felony count of theft of government property and one felony count of wire fraud. He appeared today in Cape Girardeau for sentencing before United States District Judge Stephen N. Limbaugh, Jr.
This case was investigated by the United States Department of Agriculture-Office of Inspector General-Investigations, Missouri State Highway Patrol-Rural Crimes Investigative Unit and United States Department of Labor-Office of Inspector General-Investigations. Assistant United States Attorney Anthony L. Franks handled the case for the U.S. Attorney’s Office.
New London Man Charged with Gun, Drug OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that a federal grand jury in New Haven has returned an indictment charging JAMES BOWERS, 30, of New London, with one count of possession of a firearm by a previously convicted felon and one count of possession with intent to distribute marijuana. The indictment was returned on July 20, 2016.
BOWERS appeared today before U.S. Magistrate Judge Robert A. Richardson in Hartford and entered a plea of not guilty to the charges.
It is alleged that on June 30, 2016, BOWERS possessed a stolen .45 caliber handgun and marijuana that he intended to distribute. It is further alleged that, prior to that date, BOWERS was convicted of state and federal felony offenses.
BOWERS has been detained since his arrest on related state charges on June 30.
On October 6, 2008, BOWERS was sentenced in U.S. District Court in New Haven to 120 months of imprisonment and eight years of supervised release for possession of a firearm by a previously convicted felon and possession with intent to distribute crack cocaine. He was released from federal prison in December 2014 and is currently on supervised release.
If convicted of the charges, BOWERS faces a maximum term of imprisonment of 10 years on the firearm charge and a maximum term of imprisonment of five years on the drug charge. He also faces an additional term of imprisonment if he is found to have violated his supervised release.
This case has been assigned to Senior U.S. District Judge Alfred V. Covello in Hartford.
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and a defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration and the Connecticut State Police Statewide Narcotics Task Force-East, which includes members from the Norwich, Groton City and New London Police Departments. The case is being prosecuted by Assistant U.S. Attorney John H. Durham.
New Effington Man Sentenced for Illegal Use of the InternetRead the Press Release
United States Attorney Randolph J. Seiler announced that a New Effington, South Dakota, man convicted of Attempted Trafficking in Involuntary Servitude or Forced Labor was sentenced on August 15, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Toby Magnuson, a/k/a “Scooby,” age 45, was sentenced to 6 years of imprisonment and 3 years of supervised release and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
Magnuson was one of four men who were arrested and federally indicted as a result of an undercover sex trafficking operation conducted during the 2015 Sturgis Motorcycle Rally, targeting persons willing to pay to have sex with underage girls obtained through the Internet. The conviction stemmed from Magnuson responding to an online advertisement posted by Division of Criminal Investigation undercover agents, which purported to offer young girls for sex. Following several messages with a person Magnuson believed to be associated with a 15-year old girl, but who was in fact an undercover agent, he proceeded to negotiate the time and place they would meet, along with the price he would pay, which was $100.
The undercover operation and arrests were a joint effort between the South Dakota Division of Criminal Investigation, the Department of Homeland Security, the Federal Bureau of Investigation, the Rapid City Police Department, and the Pennington County Sheriff’s office. Assistant U.S. Attorney Sarah Collins prosecuted the case.
Magnuson was immediately turned over to the custody of the U.S. Marshal's Service.
Navajo Woman from Arizona Sentenced in New Mexico for Federal Involuntary Manslaughter and Assault ConvictionRead the Press Release
ALBUQUERQUE – Miranda Rentz, 41, an enrolled member of the Navajo Nation who resides in Red Valley, Ariz., was sentenced today in federal court in Albuquerque, N.M., for her conviction on involuntary manslaughter and assault charges. Rentz will serve an 84-month prison sentence followed by three years of supervised release.
Rentz was arrested in Jan. 2015, on a criminal complaint charging her with involuntary manslaughter and assault resulting in serious bodily injury. According to the complaint, Rentz killed one victim and seriously injured another when she crashed her vehicle head-on into the victims’ vehicle. At the time of the crash, Rentz while driving under the influence of alcohol. Court documents indicate that the assault victim suffered fractures to her right collarbone, ribs, upper chest wall and right wrist, had brain bleeding and a bruised left lung. The crash occurred on Jan. 17, 2015, in a location within the Navajo Indian Reservation in San Juan County, N.M. Rentz was subsequently indicted on the same charges on Feb. 25, 2015.
On Jan. 20, 2016, Rentz pled guilty to the indictment and admitted killing one victim and assaulting the second victim, causing her to sustain serious bodily injury, by driving recklessly while under the influence of alcohol. Rentz acknowledged that the alcohol rendered her incapable of exercising clear judgment and a steady hand in operating the vehicle. Rentz admitted that she operated the vehicle without using due caution and with a reckless disregard that imperiled the lives of others.
This case was investigated by the Farmington office of the FBI and the Shiprock office of the Navajo Nation Division of Public Safety, and was prosecuted by Assistant U.S. Attorney Kyle T. Nayback.
Nampa Man Pleads Guilty to Access with Intent to View Child PornographyRead the Press Release
BOISE – Troy A. Paul, 48, of Nampa pleaded guilty today in United States District Court to access with intent to view child pornography, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, agents with the Department of Homeland Security learned that an electronic device at Paul’s residence viewed images of child pornography on a Russian photo-sharing website several times between January and June of 2014. Further investigation revealed that a device at Paul’s residence received an e-mail in March of 2014 which contained images of child pornography. In February of 2015, agents with the Department of Homeland Security interviewed Paul, where he admitted viewing child pornography on the Russian photo-sharing website, and receiving images of child pornography in his e-mail account. Paul admitted viewing images of child pornography in his e-mail account approximately 100 times, using an iPhone assigned to him by his employer. In March of 2015, agents with the Department of Homeland Security served a search warrant for the contents of Paul’s e-mail account, and discovered e-mails containing images of child pornography.
Sentencing is set for November 9, 2016, before Senior U.S. District Judge Edward J. Lodge.
Access with intent to view child pornography is punishable by up to 20 years’ imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, with assistance from the FBI and Ada County Sheriff’s Office, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Morris County, New Jersey, Husband and Wife Sentenced to Prison for Falsifying Thousands of Medical Diagnostic Reports as Part of $4.8 Million Health Care Fraud SchemeRead the Press Release
NEWARK, N.J. – Two Rockaway, New Jersey, residents who owned a mobile diagnostic testing company were each sentenced today to over six years in prison for receiving more than $4.8 million from Medicare and private insurance companies for diagnostic testing and reports that were never interpreted by a licensed physician, U.S. Attorney Paul J. Fishman announced.
Kirtish N. Patel, 54, and Nita K. Patel, 53, were sentenced to 100 and 78 months in prison, respectively. Both defendants previously pleaded guilty before U.S. District Judge William H. Walls to separate informations charging them each with one count of health care fraud. Judge Walls imposed the sentences today in in Newark federal court.
According to the documents filed in the case and statements made in Court:
From 2006 through June 2014, Kirtish and Nita Patel owned and operated Biosound Medical Services Inc. and Heart Solutions (collectively, “Biosound”), of Parsippany, New Jersey, which were mobile diagnostic companies and approved Medicare providers. The companies provided mobile diagnostic testing, including ultrasounds, echocardiograms and nerve conduction studies that were used to diagnose heart defects, blood clots, abdominal aortic aneurysms and other serious medical conditions.
Biosound technicians would travel to the office of a primary care physician in the New York and New Jersey area to conduct diagnostic testing. Biosound was responsible for sending the tests to a “reading physician” – an appropriate specialist who would interpret the results. After the reading physician prepared a report, Biosound was responsible for providing it to the referring physician. Biosound was paid millions of dollars by Medicare and other payors for the diagnostic testing, the reading physician’s interpretation of the results and the reports.
Kirtish Patel admitted to, from October 2008 through June 2014, fraudulently interpreting and writing diagnostic reports produced by Biosound despite having no medical license and knowing that the reports would be used by the referring physicians to make important patient treatment decisions. Nita Patel admitted assisting her husband in forging physician signatures on the fraudulently produced reports to make them appear legitimate. Kirtish and Nita Patel Patel also admitted falsely representing to Medicare that the neurological testing performed by Biosound was being supervised by a licensed neurologist.
More than 10,000 diagnostic reports generated by Biosound between October 2008 and June 2014 were never actually reviewed or interpreted by a physician. Kirtish and Nita Patel were paid more than $4.8 million by Medicare and private insurance companies for the fraudulent reports, which they used for personal expenses, including multiple residences and luxury vehicles.
Judge Walls also ordered Kirtish and Nita Patel to serve three years of supervised release, forfeit $4,803,875.40, and pay restitution of $4,803,875.40.
Pursuant to a civil judgment entered in July 2016, U.S. District Judge Stanley R. Chesler ordered Nita and Kirtish Patel, Biosound Medical Services and Heart solutions to pay the United States $5 million in damages and $2.75 million in civil monetary penalties.
U.S. Attorney Fishman credited special agents of the U.S. Department of Health and Human Services, Office of the Inspector General, under the direction of Special Agent in Charge Scott J. Lampert, and the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation.
The government is represented by Assistant U.S. Attorney Danielle Alfonzo Walsman of the U.S. Attorney’s Health Care and Government Fraud Unit in Newark.
U.S. Attorney Paul J. Fishman reorganized the health care fraud practice at the New Jersey U.S. Attorney’s Office shortly after taking office, including creating a stand-alone Health Care and Government Fraud Unit to handle both criminal and civil investigations and prosecutions of health care fraud offenses. Since 2010, the office has recovered more than $1.31 billion in health care fraud and government fraud settlements, judgments, fines, restitution and forfeiture under the False Claims Act, the Food, Drug, and Cosmetic Act and other statutes.
Defense counsel:
Kirtish Patel: Anthony Fusco Jr. Esq. and Shay Deshpande Esq., Passaic, New Jersey
Nita Patel: Frank Arleo Esq., West Orange, New JerseyMore Than 16-Year Sentence Handed Down to South Carolina Man for Committing Murder on Federal LandRead the Press Release
ASHEVILLE, N.C. – Forrest Dakota Hill, 23, of Easley, South Carolina, was sentenced to federal prison today for 200 months for the 2015 murder of a male victim on federal land, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. U.S. District Judge Martin Reidinger also ordered Hill to serve five years of supervised release upon completion of his prison term.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI), Charlotte Division, Steven Kloster, Chief Ranger of the Great Smoky Mountains National Park, and Chief James Dike Sneed of the Cherokee Indian Police Department (CIPD).
According to court filings, plea documents and today’s sentencing hearing, on March 29, 2015, CIPD received a 911 call alerting officers to a stabbing that had taken place inside Oconaluftee Baptist Church, commonly known as the Smokemont Baptist Church, located within the boundaries of the Great Smoky Mountains National Park. Court records indicate that paramedics responding to the scene determined that the male victim had been stabbed and was deceased. According to court records, Hill, the victim and another individual drove to the church together, and over the course of their visit, Hill stabbed the victim with a knife during an unprovoked attack, causing the victim’s death. Following the fatal stabbing, Hill and his companion left the church and returned to Harrah’s Cherokee Casino where they picked up a companion and then departed for another local hotel.
According to court records, the victim was stabbed at least 16 times in the chest, back, neck and elsewhere. Court records indicate that the victim’s cause of death was “internal hemorrhage due to multiple stab wounds.”
“It takes a depraved person to kill another human being, but an evil one to carry out the murder inside a religious institution founded upon the belief in the sanctity of human life,” said U.S. Attorney Rose. “While we can never replace their loved one, we hope that Hill’s lengthy prison term will bring closure to the victim’s family and friends.”
“Today’s sentence ensures that a killer has been taken off our streets. I want to thank NPS and CIPD for their invaluable assistance with this investigation. This case is an example of federal and tribal law enforcement working together to bring justice to the citizens of western North Carolina,” said FBI Special Agent in Charge Strong.
“The National Park Service appreciates the coordination and cooperation of all involved agencies to bring this case to a successful prosecution,” said Chief Ranger Kloster.
Hill pleaded guilty to a second degree murder charge in April 2016. He is currently in federal custody and will be transferred to the custody of the Federal Bureau of Prisons upon designation of a federal facility. All federal sentences are served without the possibility of parole.
The investigation was handled by the FBI, NPS and CIPD. Assistant U.S. Attorney John Pritchard of the U.S. Attorney’s Office in Asheville prosecuted the case.
Miami Man Pleads Guilty to Fraud Charges for Role in $4.2 Million Home Health Care SchemeRead the Press Release
A Miami man pleaded guilty yesterday to charges related to his role in a $4.2 million home health care fraud scheme.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Miami Regional Office made the announcement.
Ramon Collado Gonzalez, 56, pleaded guilty to one count of conspiracy to defraud the United States and make false statements in connection with a federal health care benefit program before U.S. District Judge Joan A. Lenard of the Southern District of Florida. Sentencing has been scheduled for Oct. 24, 2016.
As part of his guilty plea, Collado Gonzalez admitted that in approximately March 2014, he was recruited by Mildrey Gonzalez and Milka Alfaro, the owners of Golden Home Health Care Inc. (Golden), a home health care agency in Miami, to falsely and fraudulently represent himself to be Golden’s owner. Collado Gonzalez further admitted that in return for hiding Mildrey Gonzalez’s and Alfaro’s ownership interests, he received a monthly payment and periodic bonuses from them, despite the fact that he did not do any actual work for Golden. Instead, he simply signed Medicare applications and other documents for the purpose of facilitating submission of claims to Medicare and concealing Mildrey Gonzalez’s and Alfaro’s ownership interests, he admitted.
According to admissions made as part of the defendant’s plea, Golden received approximately $4.2 million from Medicare as a result of false and fraudulent claims submitted during the time Collado Gonzalez served as its nominee owner.
In June 2016, Mildrey Gonzalez and Alfaro were separately charged in an indictment with conspiracy to commit health care fraud, health care fraud, conspiracy to defraud the United States and pay health care kickbacks, conspiracy to commit money laundering and money laundering, among other charges.
An indictment is merely an allegation and all defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Florida. Fraud Section Trial Attorneys L. Rush Atkinson and Lisa H. Miller are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
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.
Meridian Man Pleads Guilty to Access with Intent to View Child PornographyRead the Press Release
BOISE – Josiah Paul Yeasley, 27, of Meridian pleaded guilty on August 10, 2016, in United States District Court to access with intent to view child pornography, U.S. Attorney Wendy J. Olson announced.
According to the plea agreement, an investigative lead provided by the Child Exploitation Investigations Unit of Immigration and Customs Enforcement indicated suspected child exploitation violations associated with Yeasley’s email account. On May 20, 2015, agents with the Department of Homeland Security, with assistance from the Meridian Police Department, contacted Yeasley at his residence in Meridian, Idaho. Agents with the Department of Homeland Security conducted a consensual forensic examination of the desktop computer used by Yeasley, and recovered subject lines from Yeasley’s email account that were indicative of child pornography as well as image files containing child pornography that Yeasley had saved. Based on this information, agents with the Department of Homeland Security executed a search warrant at Yeasley’s residence on July 23, 2015, seizing a laptop computer. A forensic examination of the laptop computer revealed that Yeasley had used his accounts on the laptop computer to view images containing child pornography on the internet, and had saved a video containing child pornography. In total, agents with the Department of Homeland Security recovered 217 images containing child pornography from the desktop and laptop computers. In the plea agreement, Yeasley admitted accessing with intent to view child pornography on the desktop and laptop computers.
Sentencing is set for November 1, 2016, before Chief U.S. District Judge B. Lynn Winmill.
Access with intent to view child pornography is punishable by up to 20 years’ imprisonment, a $250,000 fine, a term of supervised release of not less than five years and up to life. As part of his plea, Yeasley also agreed to forfeit the desktop and laptop computers used in the commission of the charged offense.
The case was investigated by the Department of Homeland Security, Homeland Security Investigations, with assistance from the Meridian Police Department, and was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab “resources.”
Member and Associates of the Lucchese Crime Family Plead Guilty to Extortion ConspiracyRead the Press Release
On Friday, August 12, 2016, at the federal courthouse in Brooklyn, New York, Carmine Avellino, a member of the Lucchese organized crime family of La Cosa Nostra, pleaded guilty to an extortionate collection of credit conspiracy. The proceeding took place before United States Magistrate Judge Marilyn D. Go. United States District Judge Ann M. Donnelly accepted the guilty plea earlier today. Avellino’s co-defendants, Lucchese crime family associates Michael Capra and Daniel Capra pleaded guilty to the extortion conspiracy in July and August of this year. When sentenced, the defendants each face up to 20 years in prison.
The guilty pleas were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office; and Timothy D. Sini, Commissioner, Suffolk County Police Department. Mr. Capers extended his grateful appreciation to the Suffolk County District Attorney’s Office and the City of New York Business Integrity Commission for their assistance with the case.
“Avellino, relying on his reputation as a member of the Lucchese crime family, and Lucchese associates Michael Capra and Daniel Capra, used intimidation and threats of violence to obtain payment from victims on an outstanding debt,” stated United States Attorney Capers. “These convictions make clear that we hold accountable members of La Cosa Nostra and their associates who use extortion as a tool of their trade.”
“As this case illustrates, members of La Cosa Nostra are still doing business as usual and continue to threaten victims with violence when a loan is not repaid. The FBI, working with our law enforcement partners, stand committed to rooting out organized crime enterprises in our communities,” stated FBI Assistant Director-in-Charge Rodriguez.
“We will not tolerate organized crime operating in our communities. It has no place in a civilized society. This case makes clear that law enforcement is committed more than ever to bringing criminals such as Carmine Avellino to justice,” stated Suffolk County Police Commissioner Sini.
According to prior court filings and facts presented during the guilty plea proceedings, between January and July 2010, the defendants conspired and attempted to collect a loan through the use of threats. Avellino had previously loaned one of the victims $100,000. After making the majority of the payments on the loan, the victim had difficulty repaying the remainder. The defendants then used force and coercive means, including threats of physical violence, in an attempt to collect the outstanding loan amount.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorneys Maria Cruz Melendez and Nadia Moore are in charge of the prosecution.
The Defendants:
CARMINE AVELLINO
Age: 72
Stony Brook, New YorkDANIEL CAPRA
Age: 58
Hauppauge, New YorkMICHAEL CAPRA
Age: 52
Smithtown, New YorkE.D.N.Y. Docket No. 13-CR-632 (AMD)
Maryland Tax Return Preparer Held in Contempt of Court for Violating Court Order Barring Her from Preparing Tax ReturnsRead the Press Release
Court Orders Return Preparer to Return to Her Customers the Portion of Their Refunds Diverted to Her Own Account
A federal court in Greenbelt, Maryland, held Barbara Lynn McCarthy in contempt for preparing federal income tax returns in violation of a prior order that prohibited her from acting as a return preparer. In 2014, the District Court enjoined McCarthy, who formerly operated as Barbara’s Tax Service, from preparing tax returns.
After entry of injunction, the Internal Revenue Service (IRS) discovered that McCarthy continued preparing tax returns despite the court’s order banning her from doing so. The court held a hearing on Aug. 11, to determine whether McCarthy had prepared returns in violation of the court’s injunction. At the hearing the government established that McCarthy violated the court’s order and the court has now ordered McCarthy to return to her customers the portions of their tax refunds McCarthy diverted to herself. The court also ordered McCarthy to pay the United States $2,500 for her actions after the injunction. Finally, the court ordered McCarthy to provide the government with a list of all tax returns she prepared since the injunction was put in place.
Return preparer fraud is one of the IRS’s Dirty Dozen Tax Scams for 2016. The IRS has some tips on their website for choosing a tax preparer and has launched a free directory of federal tax preparers. In the past decade, the Tax Division has obtained injunctions against hundreds of unscrupulous tax preparers. Information about these cases is available on the Justice Department’s website. An alphabetical listing of persons enjoined from preparing returns and promoting tax schemes can be found on this page. If you believe that one of the enjoined persons or businesses may be violating an injunction, please contact the Tax Division with details.
Lower Brule Man Charged with Assaulting, Resisting, and Impeding a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Jade LaRoche, age 36, was indicted on July 19, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on August 15, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about April 18, 2016, LaRoche assaulted, resisted, opposed, and interfered with two agents from the Bureau of Indian Affairs while they were engaged in the performance of their official duties.
The charge is merely an accusation and LaRoche is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Federal Bureau of Investigation, and the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
LaRoche was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Lexington Man Admits Distributing Drugs That Caused Overdose Death of Pregnant Woman in Fayette CountyRead the Press Release
LEXINGTON, Ky. – A Lexington man has admitted that he distributed fentanyl, which caused the overdose death of a Fayette County woman who was several months pregnant.
On Monday, Fred Rebmann, 31, pleaded guilty to distributing a controlled substance that resulted in death. Under federal law, Rebmann will face a minimum of 20 years in prison and a maximum of life imprisonment and must serve at least 85 percent of his sentence.
Rebmann admitted that, in February of this year, he sold the pregnant woman what she thought was heroin. Instead, what he sold her was fentanyl, a powerful opioid as much as 100 times more potent than morphine. She consumed the drugs and died.
Toxicology reports confirmed that she had five times the therapeutic dose of fentanyl in her system and no traces of heroin or other controlled substances. The report also concluded that, had it not been for the fentanyl, she would not have died.
“This case starkly demonstrates the predatory nature of heroin trafficking,” said Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky. “For less than $100, the Defendant sold an obviously pregnant woman the most deadly drug commonly available on our streets. The tragic result was all too predictable.”
U.S. Attorney Harvey, Timothy J. Plancon, Special Agent in Charge, Drug Enforcement Administration, and Mark Barnard, Chief of Police, Lexington Police Department, jointly announced the plea.
The investigation was conducted by DEA and Lexington Police. Assistant U.S. Attorney Todd Bradbury prosecuted this case on behalf of the federal government.
Rebmann is scheduled to be sentenced on November 14, 2016. Any sentence imposed by the Court will come after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Lakewood man sentenced to jail, ordered to pay nearly $1.8 million for tax fraud involving yacht and luxury travelRead the Press Release
A Lakewood man was sentenced to a year in custody and ordered to pay nearly $1.8 million restitution and fines for taking improper write-offs and not reporting taxable income, said Carole S. Rendon, United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Thomas G. Klocker, 47, was previously found guilty of four counts of tax evasion. U.S. District Judge James Gwin sentenced Klocker to six months incarceration followed by six months of home confinement. Klocker was fined $500,000 and has paid nearly $1.3 million in restitution to the IRS.
“This defendant tried to take the government on a ride by claiming costs associated with cruises on his luxury yacht as business expenses,” Rendon said. “Now he has to pay up, both financially and with his freedom.”
“Tax evasion is not a victimless crime," Enstrom said. "We all pay when others swindle the government. Tax evasion and tax fraud of this magnitude and with this degree of trickery, dishonesty and deceit, deserves to be punished."
Klocker was the sole shareholder and operator of All Metal Sales (AMS) in Westlake. He also operated TT Charter Leasing, which was in the business of chartering the luxury yacht “Tommy Time”, according to court documents.
Klocker diverted corporate funds from AMS for his own use to benefit his personal lifestyle and avoid personal income liabilities between 2007 and 2010. For example, Klocker diverted funds from AMS to construct a waterfront residence in Lakewood and to maintain his 68’ Sunseeker yacht, as well as to pay for luxury travel and to make cash withdrawals. He reported substantial business losses arising from the operating costs and expenses arising from the personal use of the TT Charter Leasing yacht, according to court documents.
He also misrepresented his personal expenses entered into AMS’ books and records by falsely describing them as legitimate business expenses. Klocker also provided false information to his tax-return preparers about expenses he described as business-related which were, in fact, personal in nature – including luxury travel with his family, according to court documents.
This case is being prosecuted by Assistant U.S. Attorneys Robert J. Patton and Suzana Koch following an investigation by the Internal Revenue Service – Criminal Investigations, with assistance from the Federal Bureau of Investigation – Cleveland Field Office.
Korean Company Fined $275,000 for Second Violation of the Act to Prevent Pollution from ShipsRead the Press Release
HONOLULU -- United States District Court Judge Leslie E. Kobayashi today accepted the guilty plea of Doorae Shipping Co., LTD, a South Korean maritime operations company, and sentenced the company to pay a fine of $275,000, and a term of three years of probation for the failure to maintain an accurate oil record book, in violation of the Act to Prevent Pollution from Ships.
According to the Information to which Doorae pled guilty, the operation of a marine vessel, such as the B. Pacific, a petroleum oil tank ship registered under the flag administration of the Marshall Islands, and operated by Doorae, generates large quantities of waste oil and oil-contaminated waste water. International and U.S. law requires that these vessels use pollution prevention equipment to preclude the discharge of these materials. U.S. law requires that the movement and transfer of oil on board a ship be accurately documented in the ship’s Oil Record Book.
Information produced to the court established that from between July 8, 2016 through July 14, 2016, during a Port State Control examination conducted by the United States Coast Guard, employees of Doorae Shipping presented the B. Pacific’s Oil Record Book to representatives of the United States Coast Guard knowing that it failed to document or acknowledge that approximately 5,400 gallons of oil contaminated bilge water had been placed into and stored in an unapproved void space neither designated nor appropriate for the storage of oil and other ship generated liquids. In addition, the Oil Record Book also failed to document the location of approximately 8,400 gallons of machinery space oil contaminated bilge water.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said "It is unacceptable for a maritime company which was convicted and sentenced to pay $950,000 in fines and penalties four months ago for violating the Act to Prevent Pollution from Ships to commit another criminal violation of the Act. This failure to properly follow the law with respect to maintaining an accurate and truthful Oil Record Book requires another conviction and sentence commensurate with Doorae’s conduct. By this prosecution and today’s sentence, we demonstrate our continuing resolve to keep our ocean environment clean, and the commercial tanker ships which port in Honolulu accountable." Doorae pled guilty and was sentenced to paying a $750,000 fine and making a $200,000 community service payment in April 2016.
"Environmental crimes are a serious threat to the health of our oceans," said Capt. Mike Long, Coast Guard Captain of the Port for Honolulu. "The Coast Guard is dedicated to enforcing all U.S. laws and international requirements to prevent marine pollution in Hawaii and all U.S. waters. This case sends a clear message that violators will be vigorously investigated and prosecuted."
The case was investigated by U.S. Coast Guard Sector Honolulu and the U.S. Coast Guard Investigative Service. The case was prosecuted by Assistant U.S. Attorney Ken Sorenson.
Konawa Woman Pleads Guilty to Theft of Government FundsRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOANNA MARY HARJO, age 62, of Konawa, Oklahoma, pled guilty to an Information charging her with THEFT OF GOVERNMENT FUNDS, in violation of Title 18, United States Code, Section 641.
The charges arose from an investigation by the Social Security Administration, Office of Inspector General.
The Information alleged that from in or about September 2008, to in or about March 2015, in the Eastern District of Oklahoma and elsewhere, the defendant did willfully and knowingly steal, purloin, and knowingly convert to her use, or the use of another, Supplemental Security Income benefits administered by the Social Security Administration, of a value greater than $1,000.00.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, accepted the defendant’s guilty plea, and ordered the completion of a presentence report. Sentencing will be scheduled upon its completion.
The statutory range of punishment is not more than 10 years imprisonment, a fine of up to $250,000.00 or both.
Assistant United States Attorney Kristin Harrington represented the United States.
Kenel Man Sentenced for Aggravated Sexual Abuse and Other Domestic Violence ChargesRead the Press Release
United States Attorney Randolph J. Seiler announced that a Kenel, South Dakota, man was sentenced on August 15, 2016, by U.S. District Judge Charles B. Kornmann.
Denny Johnson, age 31, was sentenced to 360 months in custody, 5 years of Supervised Release, and a special assessment to the Federal Crime Victims Fund in the amount of $410.
Johnson was indicted by a federal grand jury on June 17, 2014. From May 10, 2016, to May 12, 2016, following a 3-day federal jury trial in Aberdeen, South Dakota, Johnson was found guilty of 2 counts of Aggravated Sexual Abuse by Force, Assault with a Dangerous Weapon, Domestic Assault by an Habitual Offender, and Simple Assault.
The convictions stemmed from incidents between December 29, 2013 and January 10, 2014, when Johnson, who had been in a tumultuous and violent relationship since early 2000 with the victim, began to physically and emotionally abuse her. Upon arriving home, Johnson began yelling at her because he had been watching her at work and saw her interacting with a co-worker.
As Johnson was displaying hostility, the victim began to gather her belongings so she could leave. She put her clothes in a suit case and headed out of the house. As she opened the door to leave, Johnson suddenly slammed the door shut, told her she was not leaving, grabbed her by her jacket collar, jerked her to the floor, and assaulted her. As she was lying on the floor, Johnson began to repeatedly kick her on the small of her back. He knew that she had injured her back previously, which is why he was kicking her there.
The victim was able to get up and attempted to escape. Johnson again grabbed her by the jacket, but this time he cut it off of her with a large army knife he had grabbed, chased her into his bedroom, with the knife still in his hand. He also began throwing household items at her, striking her on the forehead.
Johnson retrieved her suitcase, opened it, and started taking her clothing out and cutting it with the knife. The victim tried escape out a window, but she was so nervous she could not unlock the window. Johnson returned and began walking towards her and menaced her with the knife, which was still in his hand. The victim was in a fetal position, and Johnson verbally abused her as she pleaded with him. He used the knife to cut her clothes off. After removing her undergarments with the knife, he threw her to the ground. Thereafter, he threw the knife at her, sticking it in the floor beside her, and he told her to kill herself because he could not do it. The victim refused, stating she had her children to live for so she would not kill herself.
Johnson retrieved the knife, and kicked her as she tried to crawl away from him. When she cried out, he told her to be quiet or he would kill her. Johnson then urinated on the victim. After urinating on her, Johnson told her that she stunk and ordered her to get into the shower. He turned on the cold water only and forced her to stay under the water as he poured shampoo, soap, liquid hand soap, dish soap, a bottle of Mr. Clean, and some Clorox on her head and face. He tried to dilute her with cleaning chemicals. The victim was pleading with him to stop, but Johnson grabbed a mop bucket with dirty water in it and dumped that on her as well. Following this, he ordered her out of the shower and told her to go to a bedroom. Johnson made sure that she did not have any clothes. Johnson came into the room and raped the victim in several ways. During the sexual abuse, he hit her in the face, held a knife to her throat, and forced her to perform oral sex on him.
This case was investigated by the Federal Bureau of Investigation and the Bureau of Indian Affairs, Standing Rock Agency. Assistant U.S. Attorney Troy R. Morley prosecuted the case.
Johnson was immediately turned over to the custody of the U.S. Marshals Service.
Justin Brouillette Sentenced to Eleven Years for Conviction on Federal Carjacking and Firearms ChargesRead the Press Release
ALBUQUERQUE – Justin Brouillette, 22, of Albuquerque, N.M., was sentenced today in federal court for his conviction on carjacking and firearms charges, announced U.S. Attorney Damon P. Martinez, Special Agent in Charge Thomas G. Atteberry of the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), and Chief Gorden Eden, Jr., of the Albuquerque Police Department (APD). Brouillette will serve 132 months in federal prison followed by five years of supervised release.
In announcing the sentence, U.S. Attorney Martinez said, “Although Brouillette was not a violent, repeat offender and therefore not a typical candidate for federal prosecution under our ‘worst of the worst’ anti-violence initiative, everything changed when he discharged his weapon at officers on July 8, 2015. Our message in prosecuting Brouillette in the federal system is very simple: violence against law enforcement officers will not be tolerated.”
“Today’s sentencing of Justin Brouillette, serves as a harsh reminder that the criminal use of firearms will not be tolerated,” said ATF Special Agent in Charge Atteberry. “ATF, along with our law enforcement partners, stands resolute in its commitment to put these trigger pullers behind bars.”
Chief Eden of the APD added, “The effectiveness of our partnership cannot be challenged. Dangerous criminals, especially those who attack our police officers will continue to face the federal criminal justice system. APD is grateful to our federal law enforcement agencies for their dedication and service to keeping our officers and our community safe from dangerous criminals.”
Brouillette was arrested in July 2015, on a criminal complaint after Brouillette used a firearm on July 8, 2015, to shoot at APD officers as they attempted to execute a traffic stop on him as he was driving in southeast Albuquerque. Shortly thereafter Brouillette crashed his vehicle into a Ford, and then attempted to carjack the Ford by brandishing a firearm at the Ford’s owner and ordering him out of the car. While Brouillette was attempting to carjack the Ford, APD officers drove into the area and Brouillette fled on foot after discharging the firearm at the officers for a second time.
Brouillette was indicted on July 30, 2015, and charged with being a felon in possession of a firearm, attempted carjacking, brandishing a firearm during a carjacking, and brandishing and discharging a firearm during a carjacking. According to the indictment, Brouillette committed these crimes on July 8, 2015, in Bernalillo County, N.M. On that day, Brouillette was prohibited from possessing firearms or ammunition because of his status as a convicted felon; he had two felony convictions for receiving or transferring stolen vehicles in the Second Judicial District Court for the State of New Mexico in Bernalillo County.
Brouillette pled guilty to two counts of the indictment charging him with carjacking and discharging a firearm in furtherance of the carjacking on Nov. 6, 2016. In entering the guilty plea, Brouillette admitted that on July 8, 2015, as he attempted to escape from police and collided with another vehicle, he got out of his vehicle, pointed a gun at the other driver and ordered the other driver out of his vehicle. Brouillette also admitted that he attempted to take the other vehicle but it was disabled, he fired shots at the officers who were trying to apprehend him, and then fled on foot.
This case was investigated by the ATF office in Albuquerque and APD. Assistant U.S. Attorney Presiliano A. Torrez prosecuted the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rates, on a per capita basis, are amongst the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, under this initiative.
Justice Department Sues Mississippi for Discriminating AgainstAdults with Mental IllnessRead the Press Release
WASHINGTON – The Justice Department today filed a complaint against the state of Mississippi, alleging that it violates the Americans with Disabilities Act (ADA) and Civil Rights of Institutionalized Persons Act (CRIPA) by failing to provide adults with mental illness with necessary integrated, community-based mental health services. The community integration mandate of the ADA and the Supreme Court’s decision in Olmstead v. L.C. require states to make services available to people with disabilities – including people with mental illness – in the most integrated setting appropriate to their needs.
The state’s failure to provide services in community settings forces adults with mental illness to access services and care in segregated state hospitals, including the Mississippi State Hospital, East Mississippi State Hospital, North Mississippi State Hospital and South Mississippi State Hospital. Under Olmstead, unnecessarily forcing people with disabilities to enter institutions to get services constitutes unlawful discrimination.
In December 2011, after conducting a comprehensive investigation, the department found that the state’s system for serving individuals with mental health disabilities violates the ADA. The department found that the state unnecessarily institutionalizes adults and children with disabilities and fails to ensure that they have access to necessary services and supports in the community. The state has recognized these failures but has not yet implemented the required reforms to meet the needs of persons with disabilities.
“When individuals with mental illness receive the services they need, they are better able to find meaningful work, secure stable housing, build personal relationships, and avoid involvement with the criminal justice system,” said Attorney General Loretta E. Lynch. “For far too long, Mississippi has failed people with mental illness, violating their civil rights by confining them in isolating institutions. Our lawsuit seeks to end these injustices, and it sends a clear signal that we will continue to fight for the full rights and liberties of Americans with mental illness”
“When individuals with mental illness get the services they need and the care they deserve, they can live and work in their own communities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Mississippi violates the ADA by denying residents with disabilities the services the law requires and the support they deserve, forcing them to cycle in and out of state hospitals, emergency rooms and jails. The Justice Department’s lawsuit demonstrates our firm commitment to vindicate the rights of people with mental illness.”
“In Mississippi, adults with mental illness receive inadequate mental health care – care that is too often in segregated, institutional placements,” said U.S. Attorney Gregory Davis of the Southern District of Mississippi. “Mississippi has not developed the necessary supports in the community to prevent unnecessary institutionalization as required by the ADA.”
The complaint alleges that gaps and weaknesses in the state’s mental health system too often subject adults with mental illness to needless trauma, especially during a crisis. According to the complaint, adults with mental illness who experience a crisis in Mississippi often spend days in local emergency rooms and jail holding facilities that are ill-equipped to address their needs, before ultimately being transported to the state’s psychiatric hospitals. This costly and traumatic process could be avoided if adults with mental illness received proven and effective services in the community to prevent and deescalate crises, enable them to maintain safe housing and assist them in finding and holding employment.
Since issuing its findings letter, the department engaged in discussions with the state to reach a settlement resolving the violations the department identified. The parties, however, were ultimately unable to come to an agreement that would ensure the needed services and supports for people with disabilities in Mississippi. In order to vindicate the rights of adults with mental illness under the ADA, the United States has filed this lawsuit under the ADA and CRIPA. The United States is also participating as amicus in ongoing litigation against Mississippi in Troupe v. Barbour, a case that addresses the state’s ADA obligations toward children with mental health disabilities. The United States remains committed to resolving all of the violations the department identified in its findings letter.
For more information on the department’s Civil Rights Division, please visit www.justice.gov/crt.
Justice Department Releases 2016 Federal Interagency Reentry Council ReportRead the Press Release
The Department of Justice today released A Record of Progress and a Roadmap for the Future – a report of the Federal Interagency Reentry Council (Reentry Council) that provides an overview of the Council’s accomplishments to date and lays out a path forward. Originally an informal collaboration among federal agencies, President Barack Obama formally established the Reentry Council in 2016 with a mission to make communities safer by reducing recidivism and victimization; help those who return from prison and jail to become productive citizens; and save taxpayer dollars by lowering the direct and collateral costs of incarceration. The report charts a course for implementing policy changes and ensuring the council’s efforts continue to serve as a guide to the reentry field.
“All too often, returning citizens face enormous barriers that persist long after they have paid their debts to society – and with over 600,000 people released from federal and state prisons every year, how we treat reentering individuals is a question with far-reaching implications for all of us,” said Attorney General Loretta E. Lynch. “That’s why the Reentry Council is dedicated to expanding access to the foundations of a stable life – employment, education, housing, healthcare, and civic participation – so that formerly incarcerated individuals can receive a true second chance, and so that every American can enjoy stronger and safer communities.”
Comprised of more than 20 federal agencies, the Reentry Council works to improve outcomes related to employment, education, housing, health and child welfare. Reentry Council agencies coordinate and leverage existing federal resources; dispel myths and clarify policies; elevate programs and policies that work; and reduce the policy barriers to successful reentry.
The Justice Department first convened the Reentry Council in 2011, in an effort to engage a wide range of federal agencies in developing and advancing innovative and comprehensive approaches to reentry. Over the last five years the Reentry Council has continued to meet in order to expand the range of tools that the government uses to ensure that individuals returning to the community from prison or jail have a meaningful chance to rebuild their lives and reclaim their futures. On April 29, 2016, President Obama issued a Presidential Memorandum formally establishing the Reentry Council, recognizing the work that the council has achieved thus far, and enabling the council to continue its work going forward. The Reentry Council is co-chaired by Attorney General Lynch and Domestic Policy Council Director Cecilia Muñoz.
In addition to the Reentry Council report, the department is issuing a Reentry Week After Action Report. During the inaugural National Reentry Week the department sponsored over 550 events designed to improve reentry outcomes and raise awareness of the importance of successful reentry. U.S. Attorney’s Offices alone hosted over 200 events, and Bureau of Prisons facilities held more than 370 events. Partners across the federal government also held events – as did state, local and nonprofit agencies across the country. Events took place in all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands. National Reentry Week took place on April 23 – April 30, 2016.
Justice Department Reaches Settlement with Ecorse, MI Regarding Polling Place Access for People with DisabilitiesRead the Press Release
The U.S. Attorney’s Office for the Eastern District of Michigan today announced a settlement under the Americans with Disabilities Act (ADA) with the city of Ecorse, Michigan, to ensure accessibility for individuals with disabilities at all of the city’s polling places. The case was commenced under the Justice Department’s compliance review authority.
Under the terms of the settlement, the city of Ecorse will make temporary and permanent changes to all of its polling places to make them accessible on Election Day before the November 2016 election. The settlement also requires that accessibility based on ADA standards will be a major criterion in the city’s selection of future polling places and so going forward, the city of Ecorse will select only polling place locations that are accessible on Election Day. The city of Ecorse will also provide training to poll workers.
“The ADA requires that people with disabilities have an equal opportunity to cast their votes at their neighborhood polling place. We are pleased that this agreement will ensure that the citizens of Ecorse can take an active part in our democracy.” said Barbara L. McQuade, U.S. Attorney for the Eastern District of Michigan.
Title II of the ADA prohibits public entities, such as the city of Ecorse, from discriminating against people with disabilities in their programs, services and activities. With respect to polling places, public entities are required to select and use polling places that are accessible. More information about this settlement and the ADA is available at the Justice Department’s toll-free ADA Information line at (800) 514-0301 or (800) 514-0383 (TTY) and via the ADA website at http://www.ada.gov or the U.S. Attorney’s civil rights hotline at 313-226-9151.
Jesse Denver Hanes, Alleged Shooter of Hatch Police Officer, Charged with Federal Firearms and Carjacking OffensesRead the Press Release
ALBUQUERQUE –Jesse Denver Hanes has been charged with federal firearms and carjacking offenses arising out of an Aug. 12, 2016 traffic stop in Hatch, N.M., during which Hanes allegedly shot and killed Hatch Police Officer Jose Chavez and Hanes’ efforts to evade arrest following the shooting. The federal charges against Hanes are contained in a criminal complaint filed this morning in the U.S. District Court for the District of New Mexico.
The federal charges were announced by U.S. Attorney Damon P. Martinez and Special Agent in Charge Terry Wade of the FBI’s Albuquerque Division. Joining them in making the announcement were Third Judicial District Attorney Mark D’Antonio, Chief James Gimler of the Hatch Police Department, Chief Pete N. Kassetas of the New Mexico State Police, and Doña Ana County Sheriff Enrique Vigil.
Hanes, 38, a resident of Columbus, Ohio, is charged with being a felon in possession of a firearm, carjacking, and discharging a firearm during a crime of violence. The criminal complaint alleges that Hanes committed these crimes in Doña Ana County, N.M., on Aug. 12, 2016. At the time, Hanes was prohibited from possessing firearms or ammunition because of his status as a convicted felon.
Hanes was arrested this afternoon on the federal charges by the FBI at a hospital in El Paso, Texas, where he is recuperating from a self-inflicted gunshot wound. His initial appearance in federal court in Las Cruces, N.M., has yet to be scheduled.
In addition to the charges in the federal criminal complaint, Hanes has been charged with the first-degree murder of Officer Chavez in a criminal complaint filed in the Third Judicial District Court for the State of New Mexico in Doña Ana County. The state’s murder investigation is continuing. Hanes also is facing an unrelated murder charge in Ohio.
According to the federal criminal complaint, on the afternoon of Aug. 12, 2016, Officer Chavez executed a traffic stop in Hatch, N.M., on a Lexus driven by Hanes and in which two other men were passengers. During the traffic stop, Hanes allegedly shot Officer Chavez in the upper torso. Officer Chavez died later that night as a result of the gunshot wound.
The criminal complaint alleges that after Hanes and his passengers fled from the scene of the shooting in the Lexus, Hanes shot himself in the leg/groin-area. After Hanes and his passengers parted company, Hanes stopped at a rest area near Radium Springs, N.M., where he allegedly shot a motorist and carjacked the motorist’s vehicle, a Chevrolet. The motorist suffered a serious injury and remains hospitalized in stable condition.
Deputies of the Doña Ana County Sheriff’s Office located the Chevrolet allegedly carjacked by Hanes based on information provided by witnesses and gave chase. The chase ended when Hanes crashed the Chevrolet. After Hanes was taken into custody, a handgun, believed to be the firearm used to shoot Officer Chavez and the motorist, was recovered from the Chevrolet.
If convicted of the crimes charged in the federal criminal complaint, Hanes faces a statutory maximum penalty of ten years in prison for unlawfully possessing a firearm and 25 years in prison on the carjacking charge. If convicted for discharging a firearm during the carjacking, Hanes faces a mandatory minimum penalty of ten years in prison , which must be served consecutive to any sentence imposed on the other charges. These potential penalties apply only to the federal charges and are beyond any penalties that may be imposed under state laws.
Charges in criminal complaints are merely accusations, and criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The case was investigated by the Las Cruces office of the FBI, Hatch Police Department, Doña Ana County Sheriff’s Office and New Mexico State Police, with assistance from the 3rd Judicial District Attorney’s Office. The following agencies also assisted in the investigation: Albuquerque and El Paso offices of the FBI, ATF, DEA, U.S. Marshals Service, Homeland Security Investigations, U.S. Border Patrol, Las Cruces Police Department, El Paso (Texas) County Sheriff’s Office and El Paso (Texas) Police Department.
Assistant U.S. Attorneys Aaron O. Jordan and Marisa A. Ong of the U.S. Attorney’s Las Cruces Branch Office are prosecuting the case as part of a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their felony conviction records for federal prosecution with the goal of removing violent, repeat offenders from communities in New Mexico for as long as possible.
Indictment: Car Stop Turned up 22 Pounds of Meth Bound for WichitaRead the Press Release
WICHITA, KAN. – Two men were indicted Tuesday on federal charges of trying to smuggle more than 22 pounds of methamphetamine into Wichita, Acting U.S. Attorney Tom Beall said.
Hector Daniel Vazquez, 26, Wichita, Kan., and Pedro Ruben Garibay, 28, Wichita, Kan., are charged with one count of possession with intent to distribute methamphetamine.
An affidavit filed in the case alleges that on Aug. 12, 2016, a deputy with the Clark County (Kansas) Sheriff’s Office stopped a gray 2016 Volkswagen Jetta in Minneola, Kan., for a traffic violation. The officer found a .40 caliber pistol and a black gym bag containing more than 22 pounds of methamphetamine in the car. When investigators learned the methamphetamine was to be delivered to buyers in Wichita, they set up a sting operation to deliver part of the shipment. In Wichita, Vazquez and Garibay were arrested when they met the load in the parking lot of a Super 8 Motel.
If convicted, the defendants face a penalty of up to 20 years in federal prison and a fine up to $1 million. Investigating agencies include the Clark County Sheriff’s Office, the Haysville Police Department, the Drug Enforcement Administration, Homeland Security Investigations, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Wichita Police Department. Assistant U.S. Attorney Mona Furst is prosecuting.
OTHER GRAND JURY INDICTMENTS
Bill L. Miller, 56, Wichita, Kan., and Tjay B. Miller, 28, Wichita, Kan., are charged with one count of possession with intent to distribute methamphetamine. In addition, Tjay Miller is charged with one count of unlawfully possessing a firearm following a felony conviction, one count of unlawfully possessing a firearm while being a user of controlled substances and a second count of possession with intent to distribute methamphetamine. The crimes are alleged to have occurred in 2015 and 2016 in Wichita.
Upon conviction, the crimes carry the following penalties:
Possession with intent to distribute methamphetamine: Not less than five years and not more than 40 years in federal prison and a fine up to $5 million.
Unlawful possession of a firearm by a felon or a user of controlled substances: A maximum penalty of 10 years and a fine up to $250,000.
The Wichita Police Department and the Sedgwick County Sheriff’s Office investigated. Assistant U.S. Attorney Lanny Welch is prosecuting.
John J. O’Neill, 62, Wichita, Kan., president of Omni Aerospace, Inc., is charged with making a false statement on a federal tax return. The crime is alleged to have occurred April 13, 2011, in Sedgwick County, Kan.
If convicted, he faces up to three years in federal prison and a fine up to $100,000. The Internal Revenue Service investigated. Assistant U.S. Attorney Alan Metzger is prosecuting.
Paulo Ivan Garcia, 39, a citizen of Mexico, is charged with one count of unlawfully re-entering the United States after being deported, one count of assaulting a federal office, one count of document fraud, one count of misusing a Social Security number, one count of producing a false identification document and one count of aggravated identity theft. The crimes are alleged to have occurred in 2012 and 2016 in Ford County, Kan.
Upon conviction, the alleged crimes carry the following penalties:
Unlawful re-entry: A maximum of two years in federal prison and a fine up to $250,000.
Assaulting a federal officer: Up to eight years and a fine up to $250,000.
Document fraud: Up to 10 years and a fine up to $250,000.
Misuse of a Social Security number: Up to five years and a fine up to $250,000.
Unlawful production of an identity document: Up to 15 years and a fine up to $250,000.
Aggravated identity theft: A mandatory two years to run consecutively to other sentences.
Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Lorenzo Mejia-Juarez, 33, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. He was found Aug. 3, 2016, in Ford County, Kan.
If convicted, he faces a penalty of up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Angelica M. Mendoza-Lopez, 37, Wichita, Kan., is charged with one count of possession with intent to distribute methamphetamine. The crime is alleged to have occurred July 16, 2016, in Sedgwick County, Kan.
If convicted, she faces up to 20 years in federal prison and a fine up to $1 million. The Wichita Police Department investigated. Assistant U.S. Attorney Mona Furst is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.