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4 October 2016
10 Local Residents Among 15 Indicted for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that eight Springfield, Mo., residents and two Willard, Mo., residents are among 15 defendants indicted by a federal grand jury for their roles in a conspiracy to distribute methamphetamine in Greene County, Mo.
Patrick Roger Brigaudin, 54, Timothy Garth Hall, 55, Jennifer Louise Minor, 41, Amber Marie Vantuyl, 35, Gary Lee Driggers, 64, William Frank Eft, 66, Leah Renee Binney, 55, and William David Watts, 58, all of Springfield, Gayla Rochelle Phillips, 41, and Richard Todd Sherwood, 58, both of Willard, Mo., Adrian Ortiz-Corrales, 41, and Eduardo Diaz, 52, both of Las Vegas, Nevada, and Carlos Alberto Luna, 42, Federico Herrera-Preciado, 51, and Maria Zetina-Ortega, 28, who have no known address, were charged in a 37-count second superseding indictment returned by a federal grand jury in Springfield on Wednesday, Sept. 28, 2016. The second superseding indictment replaces an earlier indictment and includes additional charges and defendants.
According to court documents, law enforcement officers in Texas interdicted a shipment of approximately 15 pounds of methamphetamine, of which nine pounds was allegedly being delivered to Brigaudin, in March 2015. Brigaudin was arrested with Hall, Diaz and Ortiz-Corrales on Feb. 29, 2016, when law enforcement officers executed a search warrant at his residence. According to court documents, Diaz and Ortiz-Corrales were in the garage and were in the process of accessing a hidden compartment underneath the bed of a 1994 Dodge pickup. Brigaudin was taken into custody as he exited the back door of the residence. Officers found approximately 12 pounds of methamphetamine and six and half pounds of heroin inside the truck’s hidden compartment. While officers were at Brigaudin’s residence, Hall arrived, driving a motorcycle, and was placed under arrest.
The federal indictment alleges that all of the defendants participated in conspiracy to distribute methamphetamine in Greene County from October 2013 to Feb. 29, 2016. The federal indictment also alleges that Brigaudin, Ortiz-Corrales, Phillips, Luna, Herrera-Preciado and Zetina-Ortega participated in a money-laundering conspiracy during that time by conspiring to conduct financial transactions that involved the proceeds of illegal drug trafficking.
Ortiz-Corrales and Diaz are also charged together in one count of possessing one kilogram or more of heroin with the intent to distribute.
In addition to the drug-trafficking and money-laundering conspiracies, Brigaudin is charged with four counts of distributing methamphetamine and one count of attempting to possess methamphetamine with the intent to distribute. Brigaudin, Ortiz-Corrales and Diaz are charged together in one count of possessing methamphetamine with the intent to distribute.
Brigaudin and Phillips are charged together in one count of money laundering. Ortiz-Corrales and Luna are charged together in two counts of money laundering. Ortiz-Corrales and Herrera-Preciado are charged together in two counts of money laundering. Ortiz-Corrales, Herrera-Preciado and Zetina-Ortega are charged together in two counts of money laundering.
Vantuyl, Hall, Binney, Eft and Sherwood are each also charged with one count of possessing methamphetamine with the intent to distribute.
Minor is also charged with two counts of distributing methamphetamine. Phillips is charged with one count of distributing methamphetamine.
Driggers is also charged with four counts of using a telephone to facilitate the drug-trafficking conspiracy. Binney is charged with two counts of using a telephone to facilitate the drug-trafficking conspiracy. Minor, Eft, Hall, Phillips, Watts and Sherwood are each charged with one count of using a telephone to facilitate the drug-trafficking conspiracy.
Watts is also charged with maintaining a premises that he made available for unlawfully storing, distributing, and using methamphetamine.
The indictment also contains forfeiture allegations, which would require Brigaudin to forfeit to the government any property derived from the proceeds of the alleged drug-trafficking conspiracy, including $5,603, a 2006 Lincoln Mark LT and a 1998 Harley Davidson motorcycle, all of which were seized by law enforcement officers. A forfeiture allegation would require Phillips to forfeit $18,000, which was seized by law enforcement officers. A forfeiture allegation would require Ortiz-Corrales to forfeit $880 that was seized by law enforcement officers.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Timothy A. Garrison. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI), the Springfield, Mo., Police Department, the Missouri State Highway Patrol, the Ozark, Mo., Police Department, the Greene County Sheriff’s Department, the COMET (Combined Ozarks Multijurisdictional Enforcement Team) Task Force and the South Central Drug Task Force.
3 October 2016
Zuni Pueblo Man Pleads Guilty to Federal Statutory Rape ChargeRead the Press Release
ALBUQUERQUE – Dalchimsky Begay, 26, an enrolled member of the Zuni Pueblo who resides in Rio Rancho, N.M., pled guilty today in federal court in Albuquerque, N.M., to a sexual abuse of a minor charge.
Begay was arrested in June 2016, on an indictment charging him with sexually abusing a minor who was between 12 and 16 years of age. According to the indictment, Begay committed the crime on Feb. 14, 2015, on the Navajo Nation in San Juan County, N.M.
During today’s proceedings, Begay pled guilty to the indictment and admitted engaging in a sexual act with the victim who was between 12 and 16 years of age and was four years younger than Begay.
At sentencing, Begay faces a statutory maximum penalty of 15 years in federal prison. He also will be required to register as a sex offender after he completes his prison sentence. Begay was remanded into custody pending his sentencing hearing has yet to be scheduled.
This case was investigated by the Gallup office of the FBI and is being prosecuted by Assistant U.S. Attorney Novaline D. Wilson.
Utah-Based Lenders Agree to Pay Nearly $10 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
Primary Residential Mortgage Inc. (PRMI) and SecurityNational Mortgage Company (SecurityNational) have agreed to pay the United States $5 million and $4.25 million, respectively, to resolve separate allegations that they violated the False Claims Act by knowingly originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, the Justice Department announced today. Both lenders are headquartered in Salt Lake City, Utah.
“The FHA program provides important economic support for homeownership and community development,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The department has and will continue to ensure that program participants adhere to applicable requirements and will pursue those that knowingly misuse the program for their own gain and to the detriment of homeowners and the public.”
“PRMI obtained HUD insurance by intentionally claiming its loans met HUD’s quality standards while knowing many of its loans did not meet those standards,” said Acting U.S. Attorney Bob Troyer for the District of Colorado. “When those loans failed, it was the government who suffered the loss. We will continue our efforts to hold housing lenders accountable for fraudulent conduct.”
“HUD relies on the Direct Endorsement Lenders like SecurityNational to make sure their loans are made only after a rigorous and thorough review,” said U.S. Attorney Paul J. Fishman for the District of New Jersey. “In this case, SecurityNational has admitted it approved loans that it had no business endorsing, potentially damaging a vital FHA program and other potential borrowers.”
Since at least January 2006, SecurityNational and PRMI have participated as Direct Endorsement Lenders (DELs) in the FHA insurance program. A DEL has the authority to originate, underwrite and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance for compliance with FHA’s credit and eligibility standards, but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.
As part of the settlements announced today, both PRMI and SecurityNational admitted they certified loans for FHA mortgage insurance that did not meet HUD underwriting requirements regarding borrower creditworthiness and eligibility.
PRMI admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where:
- PRMI failed to document the assets used to qualify the borrower for FHA mortgage insurance and omitted liabilities owed by the borrower from the underwriting analysis;
- PRMI failed to document income used to qualify the borrower for FHA mortgage insurance;
- PRMI failed to verify the borrower’s earnest money deposit; and
- The borrower was delinquent on a second, pre-existing FHA mortgage.
SecurityNational admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where:
- The borrower was delinquent on federal debt and had an unpaid court-ordered judgment;
- The borrower was four months delinquent on the underlying mortgage SecurityNational refinanced into an FHA loan;
- The mortgage loan amount exceeded HUD’s loan to value requirements;
- SecurityNational failed to document income used to qualify the borrower for FHA mortgage insurance; and
- SecurityNational failed to analyze the borrower’s delinquent credit history.
As a result of PRMI’s and SecurityNational’s conduct and omissions, HUD insured loans endorsed by each lender that were not eligible for FHA mortgage insurance under the DEL program and that HUD would not otherwise have insured. HUD subsequently incurred substantial losses when it paid insurance claims on those loans.
“Today’s settlements resolve allegations that these lenders, entrusted by American taxpayers to abide by FHA rules, failed to comply with certain FHA origination, underwriting and quality control requirements,” said Inspector General David A. Montoya for HUD. “The settlements demonstrate a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants.”
The settlement with SecurityNational is the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch and the U.S. Attorney’s Office for the District of New Jersey. The settlement with PRMI is the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division’s Commercial Litigation Branch, and the U.S. Attorney’s Office for the District of Colorado.
The claims asserted against SecurityNational and PRMI are allegations only and there has been no determination of liability.
Utah-Based Lender Agrees to Pay $4.25 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
NEWARK, N.J. – A lender headquartered in Salt Lake City, Utah, has agreed to pay $4.25 million to resolve allegations that it violated the False Claims Act by originating and underwriting mortgage loans insured by the U.S. Department of Housing and Urban Development’s (HUD) Federal Housing Administration (FHA) that did not meet applicable requirements, U.S. Attorney Paul J. Fishman and the U.S. Department of Justice announced today.
As part of the settlement agreement, SecurityNational Mortgage Co. (SecurityNational) admitted it certified loans for FHA mortgage insurance that did not meet HUD underwriting requirements regarding borrower creditworthiness and eligibility.
Since at least January 2006, SecurityNational has participated as a Direct Endorsement Lender (DEL) in the FHA insurance program. A DEL has the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DEL approves a mortgage loan for FHA insurance and the loan later defaults, the holder of the loan may submit an insurance claim to HUD, FHA’s parent agency, for the losses resulting from the defaulted loan. Under the DEL program, the FHA does not review a loan before it is endorsed for FHA insurance for compliance with FHA’s credit and eligibility standards, but instead relies on the efforts of the DEL to verify compliance. DELs are therefore required to follow program rules designed to ensure that they are properly underwriting and certifying mortgages for FHA insurance.
“HUD relies on the Direct Endorsement Lenders like SecurityNational to make sure their loans are made only after a rigorous and thorough review,” U.S. Attorney Fishman said. “In this case, SecurityNational has admitted it approved loans that it had no business endorsing, potentially damaging a vital FHA program and other potential borrowers.”
“The FHA program provides important economic support for homeownership and community development,” Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division, said. “The Department has and will continue to ensure that program participants adhere to applicable requirements, and will pursue those that knowingly misuse the program for their own gain and to the detriment of homeowners and the public.”
SecurityNational admitted it endorsed loans that were not eligible for FHA mortgage insurance, including loans where:
- the borrower was delinquent on federal debt and had an unpaid court-ordered judgment;
- the borrower was four months delinquent on the underlying mortgage SecurityNational refinanced into an FHA loan;
- the mortgage loan amount exceeded HUD’s loan to value requirements;
- SecurityNational failed to document income used to qualify the borrower for FHA mortgage insurance; and
- SecurityNational failed to analyze the borrower’s delinquent credit history.
As a result of SecurityNational’s conduct and omissions, HUD insured loans endorsed by each lender that were not eligible for FHA mortgage insurance under the DEL program, and that HUD would not otherwise have insured. HUD subsequently incurred substantial losses when it paid insurance claims on those loans.
“Today’s settlements resolve allegations that these lenders, entrusted by American taxpayers to abide by FHA rules, failed to comply with certain FHA origination, underwriting and quality control requirements,” Inspector General David A. Montoya for HUD said. “The settlements demonstrate a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants.”
The settlement with SecurityNational is the result of a joint investigation conducted by HUD, the HUD Office of Inspector General, the Civil Division, and the U.S. Attorney’s Office for the District of New Jersey. The government is represented by Senior Litigation Counsel Anthony J. LaBruna and Assistant U.S. Attorney Mark Orlowski of the Civil Division of the U.S. Attorney’s Office for the District of New Jersey. A similar settlement in a case investigated by HUD, the HUD Office of Inspector General, the Civil Division, and the U.S. Attorney’s Office for the District of Colorado, was also announced today.
The claims asserted against SecurityNational are allegations only, and there has been no determination of liability.
United States Reaches Settlement with Section 8 LandlordsRead the Press Release
DENVER – Bob Troyer, Acting U.S. Attorney for the District of Colorado, today announced that Deborah Conrads and Lawrence Conrads – residential landlords in Cortez, Colorado – have paid $73,650 to resolve allegations that they defrauded the Department of Housing and Urban Development by charging low-income tenants excessive rent in violation of HUD’s Housing Choice Voucher Program.
HUD’s Housing Choice Voucher Program provides low-income families, the elderly, and the disabled with assistance to afford decent, safe and sanitary housing in the private market. Housing choice vouchers are funded by HUD and administered locally by public housing authorities. When a landlord agrees to participate in the Housing Choice Voucher Program, the landlord benefits by receiving housing assistance payments directly from the public housing authority each month to cover a substantial portion of the rent of a unit. In exchange, the landlord agrees, among other things, that the public housing authority will determine the maximum rent for the unit and that the landlord will not receive any payments from the family for rental of the unit other than the family’s portion of the rent authorized by the public housing authority.
In 2001, the Conrads entered into such a housing assistance payment contract with the Housing Authority of the County of Montezuma for one of the Conrads’ rental units in Cortez, Colorado. The United States contends that despite the terms of that agreement, as recently as 2014 the Conrads knowingly charged the tenant family additional unauthorized rent and concealed these side payments from the public housing authority. In one instance, when the housing authority denied the Conrads’ request for a rent increase, the Conrads nonetheless entered into a lease extension that increased the rent paid by the family. Subsequent lease extensions in later years further increased the rent the Conrads were charging the family. The Conrads did not seek approval from the Montezuma Housing Authority for these later increases and did not provide the housing authority with copies of any of the lease extensions. The United States alleges that through this scheme, the Conrads extracted at least $18,000 in excess rent from the family while at the same time the Conrads were cashing housing assistance payments they received from federal funds as Housing Choice Voucher Program landlords.
“When landlords take advantage of the Section 8 program by charging low-income families excessive rent, they undermine HUD’s mission to create strong, sustainable, inclusive communities and quality affordable homes for all,” said Acting U.S. Attorney Troyer. “Landlords who defraud HUD face stiff civil penalties.”
“HUD has been working with the US Attorney’s Office to pursue justice against the abuse of the Housing Choice Voucher Program, a crucial resource intended to assist low income individuals and families with housing costs," said HUD Rocky Mountain Regional Administrator Rick M. Garcia. "Section 8 rental assistance is in high demand in this region, and fraudulent practices within these programs will not be tolerated.”
The claims settled by this agreement are allegations only. In entering into a civil settlement, the Conrads did not admit liability.
The United States Attorney’s Office thanks the Department of Housing and Urban Development, Office of the Inspector General, for their hard work and cooperation that made this recovery possible. The United States was represented in this matter by Assistant United States Attorney Jasand Mock of United States Attorney’s Office in Denver, Colorado.
United States Citizen Extradited to Los Angeles from Tonga to Face Investment Fraud ChargesRead the Press Release
LOS ANGELES – A U.S. citizen who formerly resided in Turlock, California, and Auckland, New Zealand, was returned to the United States by Tonga and is expected to appear in court today to face federal investment fraud charges.
Antone Thomas Pedras, who also went by Chris Pedras, 64, arrived at LAX last Friday in the custody of the United States Marshals Service. Pedras was returned to the United States to face eleven counts of wire fraud in connection with several fraudulent investment schemes.
In a first superseding indictment returned by a federal grand jury on August 6, 2014, Pedras is charged with inducing investors to give money to “Maxum Gold Trade Program,” which he claimed was a “low-risk investment with monthly returns ranging between 4 to 8 percent.” Pedras is also charged with soliciting investments in the “FMP Renal Program,” which he claimed “would be publicly traded and would operate kidney dialysis clinics in New Zealand.” To bolster his false claims to his investors, Pedras created false account statements for the Maxum website, www.maxumgoldbnkpcpt.com.
“Those who commit fraud against residents of the United States will not escape punishment simply by residing overseas,” said United States Attorney Eileen M. Decker. “This case and the extradition demonstrate the commitment of the Department of Justice to holding responsible for their actions criminals both here and outside of the country who commit fraud against U.S. residents.”
If convicted of the charges in the indictment, Pedras faces a statutory maximum sentence of 220 years in prison.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
"The FBI is committed to investigating complex high-yield investment schemes," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "As the return of Mr. Pedras makes clear, we are also committed to seeking justice for victims within the U.S. and beyond its borders."
The U.S. Securities and Exchange Commission has filed a parallel civil case against Pedras.
The investigation into Pedras is being conducted by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Ivy Wang of the Santa Ana office.
United States Attorney Announces Launch of Outreach Program to Address Heroin and Opioid AbuseRead the Press Release
LOS ANGELES – United States Attorney Eileen M. Decker announced today the launch of a new community outreach program to address the growing epidemic of heroin and prescription opioid abuse.
Because of the public health crisis stemming from the abuse of prescription drugs such as OxyContin and Vicodin and in conjunction with the Department of Justice’s recent Heroin and Opioid Awareness campaign, prosecutors and staff from the United States Attorney’s Office, partner law enforcement agencies and public health officials will present programs and panel discussions to area colleges. Over the coming weeks and months, the expert team will discuss this public health threat, highlight a multi-prong approach designed to save lives, and work to reduce the terrible impact these drugs have on individuals and families.
“The increased use of heroin and opioids has infected communities from coast to coast and in many neighborhoods within our district. At the United States Attorney’s Office, we are committed to stemming the flow of illegal opioids and heroin both in the courtroom and in the community,” said United States Attorney Eileen M. Decker. “Prosecutors in my office have targeted drug traffickers who import heroin and doctors who issue prescriptions for addictive painkillers without any medical purpose. We are working with our law enforcement colleagues to develop new strategies to investigate drug trafficking organizations that import and distribute opioids and heroin, to better track prescription drugs that may be diverted to street users, and to confront new challenges that include the increasing abuse and death rates associated with even more powerful narcotics such as fentanyl. Our enforcement efforts have helped reduce the availability of opioids on the street and have had a deterrent effect, particularly in the medical community.”
“Law enforcement agencies throughout the country are seizing record amounts of heroin and other opioids and first responders are witnessing the devastating effects of these substances in numbing proportions,” said DEA Special Agent in Charge John S. Comer. “DEA will continue to target the illicit trafficking organizations responsible for these detriments, but we’re also committed to educating the public about the dangers of drug misuse and reducing demand – awareness is a crucial element in combatting this epidemic.”
Beginning this week, federal prosecutors will be joined by agents from the Drug Enforcement Agency (DEA), expert physicians and public health officials on college campuses. These events are designed to educate students on the dangers of prescription drugs, the presence of counterfeit drugs, and what to do in the event of a potential overdose. Those participating in the discussion will be able to view excerpts from the FBI-produced film “Chasing the Dragon: The Life of an Opioid Addict,” which illustrates the harsh reality of opioid addiction. Following confirmed presentations at Occidental College, Cal State Los Angeles and Chapman University, prosecutors hope to bring the program to other campuses across the region. During these meetings, prosecutors hope to hear ideas from the members of the public on what more the Justice Department can do to combat this problem.
For further information or to schedule a presentation at your college or community organization, please contact the United States Attorney’s Office at [email protected].
Ukrainian Sail Boaters Convicted of Smuggling $10 Million Worth of Cocaine on “Ghost Ship”Read the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury has found Igor Polshyn and Oleskii Tsurkan guilty of conspiring to possess and possession with intent to distribute five kilograms or more of cocaine on a vessel subject to the jurisdiction of the United States. Each faces a maximum penalty of life in federal prison. Their sentencing hearings are scheduled for January 10, 2017.
According to evidence presented at trial, on November 7, 2015, a U.S. Customs and Border Protection P-3 Orion detected a sailboat 56 miles south of the Dominican Republic, traveling at night on the high seas with no lights, and on a course to travel through the Mona Passage between the Dominican Republic and Puerto Rico. The Orion crew alerted the United States Coast Guard, which dispatched the USCG Cutter Bernard C. Webber to interdict the vessel. The Webber interdicted the sailboat 26 miles south of the Dominican Republic, still on a course to take it through the Mona Passage. The sailboat flew the Spanish flag and bore a Spanish registration number on the stern. Polshyn was the master of the vessel and Tsurkan its sole crew member.
The Coast Guard eventually boarded the sailboat and, during an initial safety sweep, found over 100 kilograms of cocaine over the forward most bilge access. Subsequent searching recovered an additional 270 kilograms of cocaine, for a total of 370 kilograms of cocaine (814 lbs.), including cocaine commingled with the food supplies of the sailboat crew. Officials from DEA-Madrid and the Coast Guard Investigative Service traced the vessel registration number back to a real sailboat near Barcelona, Spain. The sailboat interdicted by the Coast Guard was a “ghost ship,” using the stolen identity of a real vessel in Barcelona, to mask its true identity. The recovered cocaine had an approximate wholesale value of $10 million.
This case was investigated by the Federal Bureau of Investigation, the Drug Enforcement Administration, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, U.S. Customs and Border Protection, the Coast Guard Investigative Service, and the United States Coast Guard. It is being prosecuted by Assistant United States Attorneys Thomas N. Palermo and Walter E. Furr.
U.S. Marshal, U.S. Attorney to Lead Community Policing Forum in NampaRead the Press Release
BOISE – The United States Attorney’s Office and the U.S. Marshal Service for the District of Idaho will participate in a community policing forum hosted by the College of Western Idaho on Wednesday, October 5, 2016, from 5:30 p.m. to 7 p.m. The community policing forum is one of more than 400 community policing events the Department of Justice is leading throughout the United States this week, which President Barack Obama has designated as National Community Policing Week. Community members, local and federal law enforcement agencies, and students from CWI’s law enforcement program are invited to attend the event at the Nampa Campus Academic Building, second floor atrium, 5500 E. Opportunity Drive.
“Strengthening the relationship between law enforcement officers and the communities we serve and protect is one of the top priorities of the Department of Justice and for the U.S. Attorney’s Office in the District of Idaho,” said Wendy J. Olson, U.S. Attorney for the District of Idaho. “The purpose of National Community Policing Week and of our forum at the College of Western Idaho is to foster dialogue, promote cooperation, and help citizens and law enforcement officers get to know one another as partners in our shared efforts to build stronger, safer, and more just communities for every American.”
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect and serve. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
Olson and U.S. Marshal Brian Underwood will lead the forum, highlighting outstanding community policing work from throughout the Treasure Valley. They will announce the 14 recipients of the first Excellence in Community Policing Awards, sponsored by their offices.
“We are fortunate in Idaho to have outstanding community policing efforts at every level of law enforcement,” said Underwood. “We are pleased to be recognizing fourteen officers and agents from three different agencies for their excellence in community policing in the Treasure Valley. These officers have demonstrated a commitment to working with community members and making their neighborhoods and their schools safer and stronger.”
Olson and Underwood noted that the Community Policing Forum is the culmination of public meetings and open houses that they have hosted since early August in the three Idaho locations where both have offices, Boise, Pocatello and Coeur d’Alene.
“U.S. Marshal Brian Underwood and I are committed to providing the people we serve with an opportunity to meet and raise concerns with us as federal law enforcement leaders in Idaho,” said Olson. “We hope that Treasure Valley residents will join us on Wednesday evening to learn more about the outstanding efforts in community policing in Idaho and to help us identify where we need improvement and what we can do better.”
U.S. Department of Justice Awards over $22 Million to State of Nevada to Assist Crime VictimsRead the Press Release
LAS VEGAS, Nev. – Daniel G. Bogden, United States Attorney for Nevada, is pleased to announce that the U.S. Department of Justice recently announced grant awards of over $22 million to the State of Nevada to provide financial assistance and services to federal and state victims of crime during federal fiscal year 2016.
On Sept. 8, the Nevada Department of Health and Human Services was awarded $19,981,431 in victim assistance funds, and on Aug. 22, the Nevada Department of Administration was awarded $2,049,000 in victim compensation funds. The awards were made from the Crime Victims Fund, which is supported primarily by fines paid by federal criminal offenders – not taxpayers. The fines are collected by United States Attorney’s Offices, the United States Courts, and the Federal Bureau of Prisons, and over 90 percent of Fund deposits are distributed annually by the Department of Justice to states and territories to support state victim compensation and victim assistance programs. Any remaining funds are used for training and technical assistance, national demonstration projects and to improve handling of child abuse cases in Indian communities. In addition, these funds support victim witness coordinator and advocate positions for U.S. Attorney Offices, victim specialist positions in the FBI and a federal victim notification system.
“This is the highest amount of funding ever provided to the State of Nevada to directly help victims of crimes and programs that support them,” said U.S. Attorney Bogden. “The United States Attorney’s Office is pleased to support both the collection efforts for the Crime Victims Fund, which provides these program dollars, and the allocation of these resources to help Nevada’s crime victims.”
The crime victim assistance funds will be competitively awarded by the State of Nevada to local community-based organizations that provide direct services to crime victims. Funding is provided to domestic violence shelters, rape crisis centers, child abuse victims’ programs and other initiatives that provide counseling, advocacy or emergency transportation to victims. Nevada can also use these funds for sexual assault programs or victim service units in law enforcement agencies, prosecutors’ offices and social service agencies.
The crime victim compensation funds work similarly to private insurance, providing reimbursement to, or on behalf of, crime victims for expenses such as medical costs, mental health counseling, funeral and burial costs, and lost wages, as a result of being a crime victim.
More information on Nevada’s victim compensation and victim assistance efforts is available from the State of Nevada Department of Administration Victims of Crimes Program at (702) 486-2740 in southern Nevada or (775) 688-2900 in northern Nevada, or the State of Nevada Department of Health and Human Services, at (775) 684-7946. Questions may also be directed to OJP’s Office of Communications at (202) 307-0703.
U.S. Department of Justice Awards $13.7 Million to Hire Community Policing Officers in New JerseyRead the Press Release
NEWARK, N.J. – The U.S. Department of Justice, through its Office of Community Oriented Policing Services (COPS Office) COPS Hiring Program (CHP), awarded a total of $13,702,158 to New Jersey police departments for the purposes of creating, or in some cases protecting, 95 law enforcement positions dedicated to improving community policing efforts in the state, U.S. Attorney Paul J. Fishman announced.
The awards were part of $119 million in grants funds announced today by the U.S. Justice Department that were given to 184 law enforcement agencies across the nation. The New Jersey recipients include:
Agency Name
Award Amount
Officers Awarded
Asbury Park Police Department
$474,055
2
Camden County Police Department
$1,875,000
15
East Orange
$1,375,000
11
Essex County Sheriff's Office
$1,875,000
15
Borough of Fort Lee
$125,000
1
Township of Hamilton
$375,000
3
Hudson County Sheriff's Office
$1,500,000
12
Jersey City
$1,875,000
15
City of Orange Township
$1,408,050
6
City of Paterson
$2,820,053
15
CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts. All CHP applicants were asked to identify a specific crime and disorder problem area and how funding would be used to initiate or enhance their capacity to implement community policing approaches to that problem area.
In 2016, the COPS Office gave additional consideration to applicant agencies selecting the category of “Building Trust,” based on the final report of the President’s Task Force on 21st Century Policing. Additional consideration was also given to agencies that selected the areas of school-based policing, homicide or violent crime, and homeland security. Applicants who committed to hiring or rehiring at least one military veteran under CHP also received additional consideration for funding. The full list of recipients can be found here: http://www.cops.usdoj.gov/default.asp?Item=2888.
The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing, including grants awarded to more than 13,000 state, local, and tribal law enforcement agencies to fund the hiring and redeployment of approximately 129,000 officers and provide a variety of knowledge resource products including publications, training, and technical assistance.
U.S. Attorney Rose Announces More Than $2.8 Million in Federal Grants Awarded to Hire Community Policing OfficersRead the Press Release
CHARLOTTE, N.C. – U.S. Attorney Jill Westmoreland Rose announced today that over $2.8 million in grant funding has been awarded in the Western District through the Department of Justice, Office of Community Oriented Policing (COPS office) COPS Hiring Program (CHP), aimed at creating and/or rehiring 23 career law enforcement positions.
“The federal grants awarded build upon the Justice Department’s work to provide our local law enforcement partners with the resources they need to protect and serve their communities. The funds will be used to address specific law enforcement officers’ needs and to advance public safety through community policing and crime prevention efforts,” said U.S. Attorney Rose.
The three agencies awarded the grants in the Western District are the Charlotte Mecklenburg Police Department ($1,875,000), the Mooresville Police Department ($500,000) and the Monroe Department of Public Safety ($500,000).
CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts. The COPS Office is a federal agency responsible for advancing community policing nationwide. Since 1995, COPS has invested over $14 billion to advance community policing The complete list of award recipients can be found here: http://www.cops.usdoj.gov/default.asp?Item=2888.
National Community Policing Week
U.S. Attorney Rose also announced today that the Department of Justice has designated the week of October 3-7, 2016, as the inaugural National Community Policing Week. One of the key priorities of the Justice Department is to support and promote strong relationships between law enforcement and our communities. Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the individuals, families, and communities we serve and protect every day. At the center of community policing is the idea that all members of the community have a stake in the safety of our neighborhoods where we live and work and need to work together in solving the crime challenges our communities face.
“Community policing is about law enforcement partnering with communities to promote public safety and to proactively address the factors that give rise to crime and disorder. When the relationship between law enforcement and civilians is based on mutual trust and respect, our communities are safer, our neighborhoods are stronger and our citizens are more united. Trust, respect and mutual understanding is key to solving community problems. My Office is committed to promoting trust and building strong bonds between law enforcement and the communities we serve,” said U.S. Attorney Rose.
To promote Community Policing Week, the three U.S. Attorney’s Offices for the Western, Middle and Eastern Districts of North Carolina will hold a Community Policing Round Table for Sheriffs, Police Chiefs, and District Attorneys, on Friday, October 7, in Greensboro, N.C. U.S. Attorney Rose will participate on a panel to discuss best practices in community policing and to highlight collaborative programs and policing practices designed to advance public safety, strengthen police-community relations and foster mutual trust between local police officers and neighborhood residents.
For more information regarding National Community Policing Week please visit https://www.justice.gov/ag/community-policing-tour.
U.S. Attorney Patrick Miles Hosts Justice Forum in Grand Rapids to Kickoff National Community Policing WeekRead the Press Release
GRAND RAPIDS, MICHIGAN — President Barack Obama designated the week of October 2-8, 2016 as National Community Policing Week and the U.S. Department of Justice is leading events nationwide to support community policing. Locally, U.S. Attorney Patrick Miles for the Western District of Michigan convened area stakeholders today to discuss police and community relations in Grand Rapids. "The forum provided an opportunity for local community leaders, law enforcement, youth advocates, and state and local officials to establish and maintain trusting relationships, critically examine police-community issues in our city and seek solutions together," said U.S. Attorney Miles. A variety of representatives from local and federal law enforcement, the city of Grand Rapids, community and student groups, service organizations, and religious congregations met together at LINC Up in Grand Rapids with the shared aim of strengthening relationships between law enforcement officers and the community members they serve.
At the outset of the forum, U.S. Attorney Miles, Grand Rapids Chief of Police David M. Rahinsky, and Grand Rapids Mayor Rosalynn Bliss shared their respective observations on local challenges in the area of police-community relations, as well as insights and strategies for making Grand Rapids stronger, safer, and more unified. During the second part of the forum, several stakeholders and area residents spoke briefly about their perception of police-community relations, obstacles to positive police interactions, and ideas for effecting change.
During the third part of the Justice Forum, the entire group (over 25 people) had a conversation about a wide range of topics including officer training and education, community engagement, implicit bias, officer safety, promoting diversity within police departments, crisis response, transparency and officer accountability, and fostering positive police-community encounters. "The working group aspect of the forum was especially valuable," said U.S. Attorney Miles. "Participants spoke candidly with one another about a wide range of topics relating to interactions between the police and the community, and how the community and law enforcement can work together to improve the safety and wellness of all community members."
Copied below is a list of invited organizations and speakers that presented at the Justice Forum in Grand Rapids.
Speakers:
U.S. Attorney Patrick A. Miles, Jr.
City of Grand Rapids Chief of Police David M. Rahinsky
City of Grand Rapids Mayor Rosalynn Bliss
Community Presenters:
Darel Ross II, LINC UP
Dr. Aly Mageed, M.D.
Roberto Torres, Hispanic Center of Western Michigan
Eugene Brown, Todd Harris, Jr., Je’ana Mason, and Danielle McMillon, Students, Am I Next
Cle Jackson, Greater Grand Rapids NAACP
Four Students from Grand Rapids Area Schools
Larry Johnson, Grand Rapids Public Schools
The forum today is just one of several efforts U.S. Attorney Miles has launched or participates in that are designed to strengthen police-community relations and engagement:
• U.S. Attorney Miles co-founded ALPACT (Advocates and Leaders for Police and Community Trust) groups in Grand Rapids and Benton Harbor. ALPACT groups bring together police and community stakeholders on a regular basis to discuss police and community relations, promote community trust, and reduce tension. The meetings provide a forum to discuss police-related shootings and other issues that test police and community relationships. The ongoing communications result in relationships between ALPACT members and law enforcement that foster a trusting environment where tensions can be voiced and diffused.
• For youth, U.S. Attorney Miles created the Justice Scholars program last year, in which middle-school students are exposed to careers in law enforcement and learn about the Constitution and the criminal justice system. The academic year concludes with a mock trial performed by the students.
• U.S. Attorney Miles also meets semi-annually with leaders in the Middle Eastern and Muslim American communities in the Grand Rapids area. The meetings provide a forum to address issues of mutual concern and to foster better understanding on topics ranging from cultural sensitivity to hate crimes; from police and community relations to law enforcement policies and procedures.
• U.S. Attorney Miles also serves as co-chair of the Michigan Alliance Against Hate Crimes (MIAAHC) in Lansing, along with the U.S. Attorney for the Eastern District of Michigan, Barb McQuade. MIAAHC consists of representatives from federal, state, and local law enforcement, civil rights organizations, community groups, educators and anti-violence advocates who work together to establish a coordinated statewide effort against hate crimes.
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U.S. Attorney Parker to Participate in Several Events along with Attorney General Lynch to Launch National Community Policing Week in DallasRead the Press Release
DALLAS – U.S. Attorney John Parker, of the Northern District of Texas, will launch National Community Policing Week by participating in several events in Dallas over a two-day period, October 3 - 4, 2016. Attorney General Loretta E. Lynch will travel to Dallas on Monday, October 3,2016 to hold a 21st Century Community Policing Youth Forum with U.S. Attorney Parker, students, officer cadets, and Jason Witten and Barry Church of the Dallas Cowboys known for their work to bring communities and law enforcement together.
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
“The selection of Dallas to launch National Community Policing Week is both an honor,” said U.S. Attorney John Parker. “We are fortunate to have some of the most proactive and thoughtful police leaders in the country in north Texas. They have not only embraced building trust and mutual respect with their communities, but are eager to share their knowledge and experience with the Attorney General and others as part of this ongoing national conversation.”
As part of the Obama Administration's commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice will lead nearly 400 events in support of community policing efforts around the country. To further that effort, President Obama will designate the week of Oct. 2-8, 2016, as National Community Policing Week. The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
21st CENTURY COMMUNITY POLICING YOUTH FORUM ON FACEBOOK LIVE
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Director Ron Davis of the Office of Community Oriented Policing Services
Jason Witten of the Dallas Cowboys
Barry Church of the Dallas Cowboys
WHEN: MONDAY, OCTOBER 3, 2016
2:30 p.m. CDT OPEN PRESS (Media Gather: 1:30 p.m. CDT//Final Access: 2:00 p.m. CDT)
DOJ FACEBOOK LIVE
WHERE: Sunset High School
2120 W. Jefferson Boulevard
Dallas, TX 75208
NATIONAL NIGHT OUT EVENT WITH THE DALLAS POLICE DEPARTMENT
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Mayor of Dallas Mike Rawlings
Director Ron Davis of the Office of Community Oriented Policing Services
WHEN: TUESDAY, OCTOBER 4, 2016
5:30 p.m. CDT
OPEN PRESS
WHERE: University of North Texas at Dallas
7300 University Hills Boulevard
Dallas, TX 75241
MEDIA AVAILABILITY
WHO: Attorney General Loretta E. Lynch
U.S. Attorney John R. Parker of the Northern District of Texas
Director Ron Davis of the Office of Community Oriented Policing Services
WHEN: TUESDAY, OCTOBER 4, 2016
6:20 p.m. CDT
OPEN PRESS
WHERE: University of North Texas at Dallas
7300 University Hills Boulevard
Dallas, TX 75241
For more information on National Community Policing Week or the Community Policing Tour, please visit https://www.justice.gov/ag/community-policing-tour.
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U.S. Attorney Announces Community Policing Grants in KansasRead the Press Release
TOPEKA, KAN. - Police departments in Wichita and Shawnee, Kan., have been chosen to receive Justice Department grants to pay for community policing officers, Acting U.S. Attorney Tom Beall said Monday.
The Wichita Police Department will receive $875,000 and the Shawnee Police Department will receive $625,000. The grants are part of $119 million the Justice Department’s Office of Community Policing Services is distributing nationally to 184 law enforcement agencies to create new -- or sustain existing --community policing positions.
“Kansas is a leader in the drive to build trust between law enforcement officers and the communities they serve,” Beall said. “These funds will help us keep it that way.”
The announcement comes during the national observance of Community Policing Week. Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities they are sworn to protect and serve. For more information see www.cops.usdoj.gov or read the 21st Century Policing Task Force Report at http://www.cops.usdoj.gov/pdf/taskforce/taskforce_finalreport.pdf
Beall will address community policing at 1 p.m. Wednesday when he speaks at the Kansas Peace Officers Association’s conference at the Doubletree by Hilton Airport, 2098 Airport Road in Wichita.
Tuskegee Man Charged in 10 Armed RobberiesRead the Press Release
Montgomery, AL--A federal grand jury returned a 23-count indictment against Tariq Khalil Jones, 34, of Tuskegee, Alabama, charging him with committing ten armed robberies in Alabama and Georgia while brandishing and discharging a firearm, and an attempted carjacking, announced George L. Beck, Jr., U.S. Attorney for the Middle District of Alabama. Jones is alleged to have robbed various convenience stores and other cash-heavy businesses, including:
- Dollar General on Notasulga Road in Tallassee, Alabama;
- Tiger Spirits on Webster Road, in Auburn, Alabama;
- Chevron Store 10 on West Longleaf Drive in Auburn, Alabama;
- QuickTrip convenience store on East Highway 34 in Newnan, Georgia;
- Marathon Service Station on Lafayette Parkway in LaGrange, Georgia;
- Wing N’ Burger Factory on Hogansville Road in LaGrange, Georgia;
- Papa John’s restaurant on South Memorial Drive in Prattville, Alabama;
- Family Dollar on 2nd Avenue in Opelika, Alabama;
- Family Dollar on Broadnax Street in Dadeville, Alabama; and
- Family Dollar on County Road 89 in Camp Hill, Alabama.
During each of these crimes, Jones is alleged to have pointed a firearm at victims. After the Prattville robbery, he is accused of firing the weapon at an occupied vehicle. Upon exiting the Family Dollar in Camp Hill, Alabama, Jones attempted to carjack a Volkswagen Beetle.
Jones was formally arraigned September 30, 2016 and entered a plea of not guilty to all charges. Jones faces a sentence of up to 15 years for each robbery count, a minimum of 7 years on each count charging brandishing a firearm, up to 15 years for the attempted carjacking, and a minimum of 10 years for the count of discharging a firearm. Jones is being held in custody pending his trial.
An indictment is merely a method of charging an individual with a crime and the defendant is presumed innocent until proven guilty at trial.
This case was investigated by the Federal Bureau of Investigation, the Auburn Police Division, the Camp Hill Police Department, the Coweta County Sheriff's Office (Newnan, GA), the Dadeville Police Department, the LaGrange, Georgia Police Department, the Opelika Police Department, the Prattville Police Department, and the Tallassee Police Department. Central Alabama CrimeStoppers was an instrumental part in identifying the subject accused of these crimes. Assistant United States Attorneys John Geer and Kevin Davidson are prosecuting the case.
The United States Announces Settlement to Remedy Federal Leak Prevention Violations at Gas Stations on Long IslandRead the Press Release
Robert L. Capers, United States Attorney for the Eastern District of New York, and Judith A. Enck, Regional Administrator, United States Environmental Protection Agency (EPA) Region 2, today announced that the United States has entered into a settlement with Rachelann Yetim and five corporate entities through which she owned or operated three gas stations on Long Island that contain underground storage tanks (USTs). These USTs typically hold large quantities of gasoline and can cause significant environmental damage if allowed to leak. The settlement requires defendants to maintain strict compliance with regulations pertaining to the operation of USTs at those stations, submit reports to EPA demonstrating such compliance, and pay a civil penalty, which was calculated based on defendants’ financial condition. The settlement also provides for a series of penalties – including escalating monetary fines – if defendants engage in additional violations of the Resource Conservation and Recovery Act (RCRA). Earlier today, the Consent Judgment memorializing the settlement was approved by United States District Judge Joseph F. Bianco.
In 2014, the United States filed a federal civil environmental complaint against Ms. Yetim, her father Nedjet Yetim, and 15 related corporate entities for widespread violations of the federal leak prevention requirements for USTs at four gas stations on Long Island. As alleged in the complaint, defendants had, among other RCRA violations, failed to: monitor for leaks, provide for adequate protection against corrosion and overflows, adequately secure tanks when facilities were temporarily closed, maintain records of release detection monitoring, and provide necessary information to EPA about the tank systems. As additionally alleged in the complaint, the Yetims have been the principals of several corporate entities and have personally managed, directed, or conducted matters related to pollution and environmental compliance at the facilities. The corporate defendants, all of which are directly related to the individual defendants or were tenants at the relevant facilities, owned and/or operated the gas stations during the periods of the violations alleged in the complaint.
The evidence of public record with the New York State Department of Conservation demonstrates that there were releases from the tanks at all four facilities, each of which is located above a federally-designated Sole Source Aquifer. As set forth in the complaint, among other criteria, a Sole Source Aquifer is an aquifer that supplies 50% of the drinking water consumed within the Sole Source Aquifer’s boundaries. The Sole Source Aquifer designation is a tool to protect drinking water supplies in areas with few or no alternative sources to the groundwater resources, and where, if contamination occurred, using an alternative source would be extremely expensive. Nevertheless, defendants repeatedly failed to comply with numerous federal leak prevention requirements under RCRA.
Since the filing of the federal complaint, one of the gas stations has been permanently closed. Rachelann Yetim sought to bring the remaining three stations into compliance and cooperated with the EPA to effectuate necessary measures, which included several significant upgrades to the facilities and providing necessary information to EPA. The consent judgment with Rachelann Yetim and the five corporate entities through which she has owned and/or operated the USTs is the culmination of those efforts. Defendant Nedjet Yetim has not settled with the government and is the subject of a pending motion for summary judgment filed by the United States.
“The Consent Judgment entered by the Court is the product of a longstanding effort by the EPA and by this Office to ensure that the residents of Long Island would not be harmed by defendants’ disregard of their obligations under federal law to safeguard the public from gasoline and waste oil leaks at their underground storage tanks,” stated United States Attorney Capers. “We are committed to vigorous enforcement of the laws protecting the environment from hazardous wastes.”
“These defendants showed a disregard for underground storage tank regulations that are designed to protect against petroleum leaks,” said EPA’s Regional Administrator Enck. “Under this agreement, the residents of Long Island will be better protected from the threat of petroleum contamination to groundwater. Groundwater is the major source of drinking water for millions of residents of Long Island. It is imperative that petroleum storage tanks fully comply with all environmental regulations to ensure that drinking water is not polluted and people’s health is protected.”
The government’s case is being prosecuted by Assistant United States Attorney Kenneth M. Abell. EPA is represented by Assistant Regional Counsel Karen Taylor.
Settling Defendants:
RACHELANN YETIM
Age: 30
Residence: Floral Park, NYFast Gasoline, Inc.
Black Realty, Inc.
TAG Gasoline, Inc.
NGRV Realty Co., Inc.
Venus Bukey Realty, Inc.Other Defendants:
NEDJET YETIM
Age: 52
Residence: Patchogue, NYHempstead Gasoline Station, Inc.
Elmont Gasoline Corp.
102 Elmont Realty Corp.
Target Petroleum, Inc.
Liberty Petroleum, Inc., (d/b/a as Liberty Petroleum – RGV Petroleum, Inc.)
ASLI & Gizem Realty Corp.
S&B Petroleum, Inc.
Gizem Realty Corp.
PDE Island Park, Inc.
T-Maxx @ Petro Gas, IncGas Stations:
653 Hempstead Turnpike, Elmont NY
725 Wyandanch Avenue North Babylon, NY
4305 Austin Boulevard, Island Park, NY
1278 Hempstead Turnpike Elmont, NY (closed)Texas Man Pleads Guilty to over $9.5 Million Fraud SchemeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Texas man pleaded guilty in federal court today to his role in an elaborate, multi-million-dollar fraud scheme in which conspirators impersonated North Kansas City-based Cerner Corporation in a series of business and legal activities.
Albert Davis, 56, of Richardson, Texas, pleaded guilty before U.S. Chief District Judge Greg Kays to participating in a conspiracy to commit wire fraud.
By pleading guilty today, Davis admitted that he was the leader of a conspiracy to commit wire fraud in which more than 10 victims suffered losses exceeding $9.5 million from Aug. 25, 2008, to Feb. 19, 2015. Conspirators engaged in a scheme to use Cerner Corporation’s reputation and standing in the medical field to manipulate business transactions and court proceedings in their favor.
Davis is the fifth defendant to plead guilty. Co-defendants David Hernon, 55, of Fishers, Ind. (formerly of Richardson, Texas), David Tayce, 67, of Lucas, Texas, and Richard Bryant, 41, and his wife, Christina Bryant, 41, both of Sachse, Texas, have also pleaded guilty to their roles in the conspiracy.
In order to impersonate Cerner Corporation, Davis and his co-conspirators created a fake Cerner business entity for a similarly-named company, Cerner, LLC. Conspirators opened a fake Cerner bank account, registered a fake Cerner Internet domain and leased virtual office space for a fake Cerner address in Kansas City, Mo. They created fictitious employees from Cerner Corporation – including both fictitious identities and impersonating actual employees – to communicate with others. Conspirators fabricated documents, price quotes, agreements and invoices, which were all made to appear to be authentic Cerner Corporation documents, when they were not.
For example, conspirators sent e-mails to doctors at Summit Medical Center in Oklahoma, which falsely represented Cerner Corporation in negotiations by containing a quote for the sale of a MRI to Summit Medical Center. Conspirators also created fraudulent invoices for the sale of an MRI to Dallas Medical Center.
Davis also admitted that conspirators provided false and misleading information and testimony during the litigation of several lawsuits. The false and misleading testimony was regarding business deals where the conspirators had impersonated Cerner Corporation.
For example, Davis received a jury award of $24 million following the 2014 trial in LBDS Holding Company, LLC v. ISOL Technology, Inc., et al., Case No. 6:11-CV-428-LED, in the Eastern District of Texas. When the fraud was discovered, attorneys for ISOL Technology filed an emergency motion for sanctions against LBDS (Davis’s company). Davis admitted that similar false and misleading testimony was provided by conspirators in iHeart Care DMC Holdings, LLC. v. Dallas Medical Center, LLC., et al., Cause No. 13-09460, in Dallas County, Texas; and Alice George, et al., v. Albert Davis, et al., Case No. 3:13-CV-03058-PKH, in the Western District of Arkansas.
In addition to impersonating Cerner Corporation, Davis admitted, conspirators used additional e-mail accounts to impersonate business entities and physicians in order to send communications designed to manipulate others in business transactions.
For example, conspirators forged signatures and misled doctors into guaranteeing over $8 million in loans from Community Trust Bank in Texas. Davis admitted that he and his co-conspirators fraudulently obtained five individual loans from Community Trust Bank.
Conspirators also impersonated bondholders in order to file an involuntary bankruptcy petition against their own company, CMI Holding Company, Inc., in Case no. 10-38011-SGJ-7, in the Northern District of Texas. Conspirators continued to impersonate those bondholders throughout the litigation in phone calls and email communications, and by signing as the bondholders in a settlement agreement. Davis and his co-conspirators concealed their ownership of Eureka Group, LLC and used that entity to receive and disburse the monies received from the $1.8 million settlement of the involuntary bankruptcy.
Additionally, Davis admitted, conspirators solicited investments using fabricated communications and documents from entities they created, including the entity created to impersonate Cerner Corporation. Those misrepresentations included false financial documents, altered MRI images and false claims that used MRI systems were newly developed technology.
This case is being prosecuted by Assistant U.S. Attorney Matthew P. Wolesky, in cooperation with Assistant U.S. Attorney Nathaniel Kummerfeld of the Eastern District of Texas and Assistant U.S. Attorney Kimberly Davis of the Western District of Arkansas. It was investigated by the FBI.
Tenet Healthcare Corporation will pay over $513 Million for defrauding the United States and making illegal payments in exchange for patient referrals – two Tenet Subsidiaries agree to plead guiltyRead the Press Release
ATLANTA – A major U.S. hospital chain, Tenet Healthcare Corporation, and two of its Atlanta-area subsidiaries will pay over $513 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States and to pay kickbacks in exchange for patient referrals
In addition, two Tenet subsidiaries, Atlanta Medical Center Inc. and North Fulton Medical Center Inc., have agreed to plead guilty to conspiracy to defraud the United States and to pay health care kickbacks and bribes in violation of the Anti-Kickback Statute (AKS). The plea agreements remain subject to acceptance by the court. Up until April 2016, Atlanta Medical Center Inc. and North Fulton Medical Center Inc. owned and operated acute-care hospitals located in the greater Atlanta metropolitan area.
“Our Medicaid system is premised on a patient’s ability to make an informed choice about where to seek care without undue interference from those seeking to make a profit,” said U.S. Attorney John Horn. “Tenet cheated the Medicaid system by paying bribes and kickbacks to a pre-natal clinic to unlawfully refer over 20,000 Medicaid patients to the hospitals. In so doing, they exploited some of the most vulnerable members of our community and took advantage of a payment system designed to ensure that underprivileged patients have choices in receiving care.”
“When pregnant women seek medical advice, they deserve to receive care untainted by bribes and illegal kickbacks,” said Principal Deputy Assistant Attorney General Bitkower. “The Tenet case is the first brought through the assistance of the Criminal Division’s corporate health care fraud strike force. This is one of more than a dozen active corporate investigations by the strike force, and we are committed to following evidence of health care fraud wherever it leads – whether it be individual physicians, pharmacy owners or corporate boardrooms.”
“The Department of Justice continues to devote enormous resources to exposing and pursuing alleged misconduct of improper financial relationships between hospitals and referral sources,” said Principal Deputy Assistant Attorney General Mizer. “Such relationships exploit vulnerable populations and threaten to drive up the cost of healthcare for everyone. In addition to yielding a substantial recovery for taxpayers, this settlement reflects the department’s lack of tolerance for these types of abusive arrangements, and the negative effects they can have on our health care system.”
“The global resolution of this complex and sophisticated fraud scheme exemplifies what can be accomplished through the cooperation of federal and state investigative and prosecutorial authorities,” said U.S. Attorney Peterman. “I am particularly proud of the civil attorneys in the U.S. Attorney’s Office for the Middle District of Georgia, working hand in hand with investigators of the U.S. Department of Health and Human Services and attorneys in the Civil Division and the Medicaid Fraud Control Unit of the Office of the Attorney General of Georgia, whose combined efforts greatly contributed to this outstanding result on behalf of the American taxpayers.”
“Tenet took advantage of vulnerable pregnant women in clear violation of the law by paying kickbacks in order to bring their referrals to Tenet hospitals,” said Georgia Attorney General Olens. “Through this scheme, Tenet defrauded the Georgia Medicaid program, and reaped hundreds of millions of dollars. This is an unprecedented settlement for the state of Georgia, and reflects my office’s commitment to protecting Georgia taxpayers by uncovering Medicaid fraud and abuse.”
“The FBI continues to play a significant role in ensuring that federal laws related to the healthcare industry, to include the federally funded Medicare and Medicaid programs, are enforced,” said Acting Special Agent in Charge George Crouch. “The settlement agreements announced today involving Tenet Healthcare Corporation, as well as related guilty pleas by two of its Atlanta-based hospitals, Atlanta Medical Center Inc., and North Fulton Medical Center Inc., are a clear example of those efforts. In addition, the FBI’s Major Provider Response Team (MPRT) assisted the Atlanta Field Office in the civil and criminal investigation of Tenet. The MPRT was created in 2011 in response to numerous healthcare related corporate-level schemes resulting in billions in losses to healthcare plans. The FBI, along with its MPRT, will continue to aggressively address the threat of large-scale corporate healthcare schemes significantly impacting both private and government healthcare benefit plans.”
“OIG continues to emphasize investigation of improper financial relationships between health care providers,” said Special Agent in Charge Jackson. “Using their positions of trust, health providers – after receiving payments from Tenet – sent expectant women specifically to Tenet hospitals. Patients were often directed to Tenet facilities miles and miles from their homes and on their journeys passed other hospitals that could have provided needed care. These women were thereby placed at increased risk during one of the most vulnerable points in their lives. HHS-OIG will continue to protect patients by exposing such illegal arrangements.”
Atlanta Medical Center Inc. and North Fulton Medical Center Inc. were charged in a criminal information filed today in federal court in Atlanta with conspiracy to defraud the United States by obstructing the lawful government functions of HHS and to violate the AKS, which, among other things, prohibits payments to induce the referral of patients for services paid for by federal health care programs. The two Tenet subsidiaries have agreed to plead guilty to the charges alleged in the criminal information and will forfeit over $145 million to the United States – which represents the amount paid to Atlanta Medical Center Inc. and North Fulton Medical Center Inc. by the Medicare and Georgia Medicaid programs for services provided to patients referred as part of the scheme.
Tenet Health System Medical Inc. and its subsidiaries (collectively THSM) entered into a non-prosecution agreement (NPA) with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Georgia related to the charges in the criminal information. THSM is the parent company of Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital, and employed their executives. THSM is a subsidiary of Tenet Healthcare Corporation. Under the terms of the NPA, THSM and Tenet will avoid prosecution if they, among other requirements, cooperate with the government’s ongoing investigation and enhance their compliance and ethics program and internal controls. Tenet has also agreed to retain an independent compliance monitor to address and reduce the risk of any recurrence of violations of the AKS by any entity owned in whole, or in part, by Tenet. The term of THSM’s and Tenet’s obligations under the NPA is three years, but the NPA may be extended for up to one year.
In the civil settlement, Tenet agreed to pay $368 million to the federal government, the state of Georgia and the state of South Carolina to resolve claims asserted in United States ex rel. Williams v. Health Mgmt. Assocs., Tenet Healthcare, et al., a lawsuit filed by Ralph D. Williams, a Georgia resident, in the Middle District of Georgia, under the federal and Georgia False Claims Acts. The acts permit whistleblowers to file suit for false claims against the government entities and to share in any recovery. The federal share of the civil settlement is $244,227,535.30, the state of Georgia will recover $122,880,339.70 and the state of South Carolina will recover $892,125. Mr. Williams’ share of the combined civil settlement amount is approximately $84.43 million.
As alleged in the criminal information as well as civil complaints filed by the department and the state of Georgia in 2014 and 2013, Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital paid bribes and kickbacks to the owners and operators of prenatal care clinics serving primarily undocumented Hispanic women in return for the referral of those patients for labor and delivery medical services at Tenet hospitals. These kickbacks and bribes allegedly helped Tenet obtain more than $145 million in Medicaid and Medicare funds based on the resulting patient referrals.
According to the criminal information, as part of the scheme, expectant mothers were in some cases told at the prenatal care clinics that Medicaid would cover the costs associated with their childbirth and the care of their newborn only if they delivered at one of the Tenet hospitals, and in other cases were simply told that they were required to deliver at one of the Tenet hospitals, leaving them with the false belief that they could not select the hospital of their choice. The criminal information alleges that as a result of these false and misleading statements and representations, many expectant mothers traveled long distances from their homes to deliver at the Tenet hospitals, placing their health and safety, and that of their newborn babies, at risk.
The criminal information also charges Atlanta Medical Center Inc. and North Fulton Medical Center Inc. with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA). The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA. The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.
* * *
Randy S. Chartash, Chief of Economic Crime, and Stephen H. McClain, Deputy Chief of Economic Crime, of the U.S. Attorney’s Office of the Northern District of Georgia, and Deputy Chief Joseph S. Beemsterboer, Assistant Chief Robert A. Zink, and Trial Attorneys Sally B. Molloy, Antonio M. Pozos and A. Brendan Stewart of the Criminal Division’s Fraud Section represented the government in the criminal prosecution.
The FBI’s Atlanta Field Office, HHS-OIG and the FBI Healthcare Fraud Unit MPRT investigated the case.
The criminal information also charges Atlanta Medical Center Inc. and North Fulton Medical Center Inc. with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA). The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA. The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of HHS. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.9 billion through False Claims Act cases, with more than $18.6 billion of that amount recovered in cases involving fraud against federal health care programs.
If you believe you are a victim of this offense, please visit this website or call (888) 549-3945.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga
Stafford Springs Man Pleads Guilty to Defrauding U.S. VeteransRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN J. SIMON, JR., also known as “Buzzy Simon,” 69, of Stafford Springs, pleaded guilty today before U.S. District Judge Michael P. Shea in Hartford to one count of mail fraud and one count of structuring currency transactions.
According to court documents and statements made in court, from March 2009 to August 2010, SIMON, a Vietnam War veteran, engaged in a scheme to defraud four military veterans by representing that, in exchange for money, he could assist them in obtaining increased benefits from the Department of Veterans Affairs (“VA”). The veterans suffer from service-related disabilities and/or are chronically ill. SIMON falsely represented that the money the veterans provided to him would be used to pay for the services of an attorney or other expenses. With respect to one veteran, SIMON also falsely told him that he would assist the veteran in obtaining Social Security benefits.
SIMON did not initiate any claims for the four veterans and he did not incur any legal or other expenses on behalf of the veterans. Rather, he kept the money for his personal use.
As part of the plea agreement, SIMON has agreed that he defrauded 11 other military veterans and one non-veteran by representing that he could obtain new or increased benefits from the VA or Social Security Administration.
In total, SIMON defrauded 16 victims of approximately $525,431.
SIMON also structured approximately $36,000 in cash deposits into his bank account from October 2009 to June 2010. The funds structured were payments he had received from the fraud scheme. At the time, SIMON knew that the bank was required to issue a report for a currency transaction in excess of $10,000, and that by conducting his financial transactions in amounts less than $10,000.01, he intended to evade the transaction reporting requirements.
Federal law requires all financial institutions to file a Currency Transaction Report (“CTR”) for currency transactions that exceed $10,000. To evade the filing of a CTR, individuals will often structure their currency transactions so that no single transaction exceeds $10,000. Structuring involves the repeated depositing or withdrawal of amounts of cash less than the $10,000 limit, or the splitting of a cash transaction that exceeds $10,000 into smaller cash transactions in an effort to avoid the reporting requirements. Even if the deposited funds are derived from a legitimate means, financial transactions conducted in this manner are still in violation of federal criminal law.
SIMON was arrested on a criminal complaint on May 15, 2013.
Judge Shea scheduled sentencing for January 10, 2017, at which time SIMON faces a maximum term of imprisonment of 30 years.
SIMON has agreed that $210,085.58 that the IRS seized from his bank account in October 2010 will be used to pay restitution to the victims of his criminal conduct.
SIMON was released on bond pending sentencing.
This matter has been investigated by the Internal Revenue Service, Criminal Investigation Division and the U.S. Department of Veterans Affairs, Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Peter S. Jongbloed.
Six Indicted for Carjacking and Series of Armed Robberies in Albemarle and Greene CountiesRead the Press Release
CHARLOTTESVILLE, VIRGINIA – A federal grand jury sitting in the United States District Court for the Western District of Virginia in Charlottesville has indicted six individuals on charges related to a series of violent armed robberies and a carjacking that occurred in Albemarle and Greene counties in recent months, United States Attorney John P. Fishwick Jr. announced.
In an indictment returned last week, the grand jury has charged Terence Tyree, a.k.a. “TJ,” 19, of Ruckersville, Virginia, in counts one and three through seven. Kentarian Jones, a.k.a. “Kentavia,” 19, of Earlysville, Virginia, is charged in counts one and four through seven. Demetrius Steppe, 20, of Ruckersville, is charged in counts one through three. Jacquarius Johnson, a.k.a. “Corey,” 18, of Charlottesville, Virginia, is charged in counts six and seven. Isaiah Wilson, 24, of Charlottesville, is charged in Count two and Chelsea Elizabeth Scott, 24, of Ruckersville, is charged in count four.
All six defendants had their initial court appearances in United States District Court in Charlottesville today and have been held, without bond, pending trial, which has been preliminarily set for December 12, 2016.
According to the indictment, the six individuals are charged with participating in a series of armed robberies of businesses and individuals in Albemarle and Greene counties. Three of these individuals are charged in a violent home invasion, abduction and armed carjacking in Albemarle County.
The indictment charges that on June 9, 2016, Tyree and Jones committed an armed robbery that occurred at the Papa John’s in Greene County, Virginia. Tyree and Steppe are also charged with committing an armed robbery of the same Papa John’s on June 17, 2016.
The indictment further charges that on June 12, 2016, Wilson and Steppe committed an armed robbery of the 7-11 in Albemarle County. Tyree, Jones and Johnson are also charged with committing an armed robbery of this same 7-11 location on July 18, 2016.
The indictment further charges that on June 27, 2016, Tyree, Jones and Scott committed an armed robbery of Domino’s Pizza located in Albemarle County.
The indictment further charges that Tyree and Jones committed an armed robbery of the Domino’s Pizza in Greene County on July 7, 2016.
Finally, the indictment charges that on July 18, 2016, Tyree, Jones and Johnson committed an armed carjacking of Victim A by using force and intimidation, with the intent to cause death and serious bodily harm.
The investigation of the case was conducted by the Federal Bureau of Investigation, the Albemarle County Police Department and the Greene County Sheriff’s Office. Assistant United States Attorneys Ronald M. Huber and Christopher Kavanaugh will prosecute the case for the United States.
A Grand Jury Indictment is only a charge and not evidence of guilt. The defendants are entitled to a fair trial with the burden on the government to prove guilt beyond a reasonable doubt.
September 11th Victim Compensation Fund Begins Payments to Group B ClaimantsRead the Press Release
September 11th Victim Compensation Fund (VCF) Special Master Rupa Bhattacharyya announced that the VCF began payments today on Group B claims after the funding to pay became available on Oct. 1 as set forth in the 2015 Reauthorization Act of the VCF. Group A claims are claims for which a loss was determined and a letter notifying the claimant of the award decision on the claim was issued on or before Dec. 17, 2015. Group B claims are those that are not in Group A.
The VCF has been preparing to issue Group B payments for several weeks and the Special Master has authorized more than 500 claims for payment. Payments will be made first to those with exigent circumstances and then in order based on the date the claimant was notified of his or her award. Once the Department of Justice provides the payment information to the U.S. Department of the Treasury, it may take up to three weeks for the payment to be made to the claimant’s designated bank account.
“In the last 10 weeks since I transitioned into the role of Special Master, the VCF has issued determinations on more than 900 compensation claims and amendments and just under 1,200 eligibility claims and amendments,” said Special Master Bhattacharyya. “This reflects the overall hard work done by the VCF team over the last several months and continues to demonstrate our progress and commitment to the 9/11 community and to providing deserved compensation to those who have suffered as a result of the terrorist attacks of Sept. 11, 2001.”
The VCF continues to focus on processing Group B claims that were submitted before Aug. 1, when the new claim form became available. Claims are being processed in priority order, with decisions being rendered on the oldest claims before claims that have been pending for less time. As of early September, there were nearly 1,300 of these claims - approximately 800 of which were submitted more than one year ago. The VCF anticipates that compensation claims that include all information required for review and that were submitted more than two years ago should be completed by year end and hopes to also make substantial progress on similarly situated claims submitted over one year ago.
As of Oct. 3, the VCF has issued more than 10,700 awards over the life of the program, including 9,130 awards in Group A and 1,573 awards in Group B. When combined, these awards total approximately $2.05 billion ($1.822 billion to Group A and $228 million to Group B).
For additional information about how to file a claim, please visit the “How to File a Claim” page on the VCF’s website at www.vcf.gov and information on policies and procedures can be obtained at https://www.vcf.gov/pdf/VCFPolicy.pdf. If you have any questions about the claim form, the website, or the VCF process, please contact the VCF’s toll-free Helpline at 1-855-885-1555. Individuals who have been diagnosed with a 9/11-related illness that is not currently on the list of eligible conditions should periodically check the World Trade Center Health Program website at http://www.cdc.gov/wtc/conditions.html to see if the condition is added to the list.
Seguin Businessman Sentenced to Federal Prison and Ordered to Pay over $274,000 in Fraudulent S.N.A.P. Benefits SchemeRead the Press Release
In San Antonio this morning, 67-year-old Nasir Ali, manager/owner of J.R. Food Mart in Seguin, TX, was sentenced to one year in federal prison for defrauding the U.S. Department of Agriculture (USDA) Food Stamp Program announced United States Attorney Richard L. Durbin, Jr.
In addition to the prison term, United States District Judge David A. Ezra ordered that Ali pay $274,349.17 restitution and be placed on supervised release for a period of three years after completing his prison term.
On May 23, 2016, Ali pleaded guilty to four wire fraud counts. By pleading guilty, Ali admitted that from November 2009 until March 2013, he fraudulently traded Supplemental Nutrition Assistance Program (SNAP) benefits for prohibited items and cash. At times, Ali would charge the beneficiaries up to double the amount for cash or for ineligible items including tobacco and alcohol.
This case was investigated by agents with the U.S. Department of Agriculture Office of Inspector General together with the Texas Alcoholic Beverage Commission (TABC) and the Seguin Police Department. Assistant United States Attorney Tom Moore prosecuted this case by the Government.
Second Chicago woman sentenced for credit card fraudRead the Press Release
CHARLESTON, W.Va. – A Chicago woman was sentenced today to six months of home incarceration, to be followed by three years of probation, for credit card fraud, announced United States Attorney Carol Casto. Christine Johnson, 26, previously entered her guilty plea to possession of 15 or more counterfeit access devices. A counterfeit access device is a credit card that has been altered so that it contains stolen information that has been re-encoded on the magnetic strip on the back of the card.
Johnson admitted that she, along with three codefendants, Wynesha Wilson-Robinson, Stephanie Stevenson, and Crystal Merritt, possessed over 100 counterfeit access devices. Johnson, along with the other codefendants, drove from Chicago to attempt to use these credit cards. On June 5, 2015, they were observed at the South Charleston Target and Walmart attempting to use the counterfeit cards. The four were arrested by law enforcement after store employees became suspicious of the multiple attempts to use credit cards to complete a purchase.
The South Charleston Police Department and the United States Secret Service conducted the investigation. Assistant United States Attorney Erik S. Goes is in charge of the prosecution. United States District Judge John T. Copenhaver, Jr., imposed the sentence.
Two of Johnson’s codefendants are awaiting sentencing and one has already been sentenced. Crystal Merritt is scheduled to be sentenced on October 19, 2016. Stephanie Stevenson is scheduled to be sentenced on November 3, 2016. Wilson-Robsinson was sentenced to five months in federal prison, to be followed by five years of probation. Wilson-Robinson was further ordered to serve the first five months of her probation on home incarceration.
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Pike County, Ill., Man Convicted for Transportation of a Minor with Intent to Engage in Illegal Sexual ActivityRead the Press Release
Springfield, Ill. - A jury has convicted a New Canton, Ill., man, Ralph David Hathaway, 47, for transportation of a minor with the intent to engage in illegal sexual activity and two counts of travel with intent to engage in illicit sexual conduct. The jury deliberated for approximately one hour on Friday, Sept. 30, before returning the guilty verdicts on all counts. Senior U.S District Judge Richard Mills scheduled sentencing for Hathaway on Feb. 15, 2017.
At trial, which began on Monday, Sept. 26, the government presented evidence that over a two-year period, beginning in 2013, Hathaway traveled on several occasions from his home in Pike county to South Carolina to have illegal sexual activity with a 13-year-old girl whom Hathaway had met online. The jury also heard evidence that in June 2015, Hathaway transported the girl from South Carolina to his camper located in Troy, Missouri.
At sentencing, Hathaway faces statutory penalties of no less than 10 years in prison and up to life in prison. Hathaway has remained in the custody of the U.S. Marshals Service since he was arrested in July 2015 in Troy, Mo.
The charges are the result of an investigation by the Federal Bureau of Investigation, Springfield, Ill., San Francisco, Calif., Charleston, S.C., and St. Louis, Mo. divisions; the Pike County Illinois Sheriff’s Office; St. Charles County (Mo.) Cyber Crime Task Force; the Lincoln County (Mo.) Sheriff’s Office; Horry County (S.C.) Police Department; San Mateo (Calif.) Police Department; and Daly City (Calif.) Police Department. At trial, the government was represented by Assistant U.S. Attorneys Victor Yanz and Gregory M. Gilmore.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys= Offices and the Criminal Division=s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Philadelphia Man Gets Two Years in Prison for Fradulently Exchanging over $1.2 Million in Food Stamp Benefits for CashRead the Press Release
CAMDEN, N.J. – A grocery store owner from Philadelphia was sentenced today to 24 months in prison for stealing more than $1.2 million through a food stamp scheme, U.S. Attorney Paul J. Fishman announced.
Kaher Abdullah, 58, previously pleaded guilty before U.S. District Judge Joseph H. Rodriguez to an information charging him with one count of theft of government funds. Judge Rodriguez imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
In June 2011, Abdullah opened Express Food Mart on South Broadway in Camden. Express Food Mart was a small grocery store that was authorized to accept Supplemental Nutrition and Assistance Program (SNAP) benefits (formerly known as food stamps). The program is administered by the U.S. Department of Agriculture.
Abdullah admitted he controlled a business bank account at CitiBank to receive the reimbursements for SNAP benefits. He knew that as a SNAP retailer, he was not allowed to exchange food stamps for cash.
From Nov. 1, 2011 through October 2014, he and others under his supervision illegally permitted recipients of SNAP benefits to redeem those benefits at Express Food Mart for cash rather than food. Abdullah admitted that, in general, he and other employees redeemed SNAP benefits for approximately 50 cents on the dollar. He also admitted that from November 2011 through October 2014, Express Food Mart received through its Citibank business account approximately $1,264,006.47 for illegally redeemed SNAP benefits.
Abdullah admitted that shortly after receiving the money in the Express Food Mart account, he transferred the money to another account which he used to pay personal expenses.
In addition to the prison term, Judge Rodriguez ordered Abdullah to serve three years of supervised released and pay restitution of $1,264,006.
U.S. Attorney Fishman credited special agents of the U.S. Department of Agriculture, Office of Inspector General, under the direction of Special Agent in Charge William G. Squires in New York; and U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence Opiola.
The government is represented by Senior Litigation Counsel Jason M. Richardson of the U.S. Attorney’s Office Criminal Division in Camden.
Defense counsel: Justin Loughry Esq., Camden
Philadelphia Man Charged with Receiving and Distributing Child PornographyRead the Press Release
Adam Dolceamore, 35 of Philadelphia, PA was charged on September 29, 2016 by Indictment with one count of receiving and one count of distributing child pornography, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible, sentence of up to 40 years’ imprisonment, 5 years supervised release, a $500,000 fine, mandatory forfeiture and a $200 special assessment
The case was investigated by Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Priya T. DeSouza.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty.
Parker Businesswoman Pleads Guilty to Embezzling from Employee Benefit PlansRead the Press Release
DENVER – Emily R. Strunk, age 45, of Parker, Colorado, pled guilty last week before U.S. District Court Judge William J. Martinez to wire fraud, money laundering, and embezzlement from an employee benefit plan, the U.S. Attorney’s Office, U.S. Department of Labor Employee Benefits Security Administration and the IRS Criminal Investigation announced. Strunk was indicted by a federal grand jury in Denver on April 7, 2016. Strunk is scheduled to be sentenced by Judge Martinez on January 25, 2017.
According to the facts in the indictment and plea agreement, Strunk was a third-party administrator for employee pension and retirement plans, operating through various businesses including North American Employer Solutions, LLC; BAC Human Resources, LLC; Colorado Benefits Outsourcing, LLC; Benefits Team Administration, LLC; Benefits Administrators & Consultants LLC; and Columbine Employee Benefits Inc. Starting in 2005, and continuing through September 2015, Strunk devised a scheme to fraudulently obtain money from the employee pension or retirement funds of her clients. Strunk would recruit clients, typically small employers, to hire her to be a third-party administrator for the employee pension or retirement plans (“the plans”) the client offered to its employees. Strunk would gain access to the plan assets, either by directly transferring plan assets to bank accounts she controlled or directing her clients to transfer funds to those bank accounts. She also received plan deferrals (or, contributions from plan participants) directly into her checking accounts.
As part of the scheme, Strunk misrepresented the nature of the accounts to which the plan assets were transferred, identifying or representing that the accounts were “trust accounts” in which she kept client funds for purposes of investment in the plans, when in fact the accounts were simply corporate checking accounts. After clients’ funds were deposited into checking accounts Strunk controlled, she did not segregate client funds or track the amounts belonging to her clients. Instead, she used the plan assets for her own personal and business expenses and used her clients’ plan assets to pay off other clients who had terminated her services.
She concealed her fraud by causing a third party record keeper, who provided online account statements to plans and plan participants, to create “tickers” identifying “outside assets” associated with their plans which in fact did not exist. This gave the appearance that funds Strunk stolen from her clients were actually still invested in the plan. Additionally, Strunk filed and/or caused to be filed false Forms 5500 with the Department of Labor for client plans subject to the Employee Retirement Income Security Act (ERISA). She falsely stated the total amount of plan assets and omitted that her fraud and dishonesty caused a loss to the plan, thereby concealing her fraud.
Wire fraud carries a penalty of not more than 20 years in federal prison, and a fine of up to $250,000 per count. Money Laundering carries a penalty of not more than 10 years in federal prison, and a fine of up to $250,000 per count. Theft from employee benefit plan carries a penalty of not more than 5 years in federal prison, and a fine of up to $250,000 per count.
This case was investigated by the Department of Labor Employee Benefits Security Administration (DOL-EBSA) and the Internal Revenue Service – Criminal Investigation (IRS-CI). The case is being prosecuted by the U.S. Attorney’s Office Economic Crimes Section.
Otero County Man Sentenced to 70 Months in Prison for Violating the Federal Firearms LawsRead the Press Release
ALBUQUERQUE – David Ausborn Hiles, 49, of La Luz, N.M., was sentenced today in federal court in Las Cruces, N.M., to 70 months in prison followed by three years of supervised release for being a felon in possession of firearms and ammunition. Hiles was also ordered to forfeit 36 firearms and approximately 15,000 rounds of ammunition.
Hiles was arrested in Feb. 2015, on a criminal complaint charging him with being a felon in possession of firearms and ammunition. The complaint charged Hiles with unlawfully possessing 36 firearms and ammunition at his residence in Otero County, N.M., on Nov. 25, 2014. According to the criminal complaint, the New Mexico State Police found the firearms and ammunition while executing a search warrant at Hiles’ residence.
Hiles was subsequently indicted on the same charge on April 14, 2015. Accorindg to the indictment, Hiles was prohibited from possessing either firearms or ammunition because he previously has been convicted of the felony offenses of attempting to manufacture methamphetamine, tampering with evidence, aggravated assault with a deadly weapon and intimidation of a witness.
On Jan. 14, 2016, Hiles pled guilty to a felony information charging him with being a felon in possession of firearms and ammunition. Hiles admitted that on Nov. 25, 2014, he was in possession of 36 firearms and approximately 15,000 rounds of miscellaneous ammunition.
This case was investigated by the Las Cruces office of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the New Mexico State Police, with assistance from the 12th Judicial District Attorney’s Office for the State of New Mexico. Assistant U.S. Attorney Maria Y. Armijo prosecuted the case.
Orthopedic Clinics to Pay $2.39 Million to Settle Allegations of Billing Federal Health Care Programs for Reimported ProductsRead the Press Release
SACRAMENTO, Calif. — Three orthopedic clinics will pay a combined $2.39 million to resolve federal and state False Claims Act allegations that they knowingly billed federal and state health care programs for reimported osteoarthritis medications, known as viscosupplements, Acting United States Attorney Phillip A. Talbert announced today.
Orthopedic Associates of Northern California, located in Chico, California, will pay $815,794; San Bernardino Medical Orthopaedic Group Inc., DBA Arrowhead Orthopaedics, headquartered in Redlands, California, will pay $971,903; and Reno Orthopaedic Clinic, headquartered in Reno, Nevada, will pay $602,335.
Viscosupplements, such as Synvisc, Orthovisc, and Euflexxa are injections approved by the Food and Drug Administration for the treatment of osteoarthritis pain in the knee. Viscosupplements are reimbursed by Medicare, Medicaid and other federal health care programs at a set rate based on the average sales price of the domestic product. The government contended that the clinics knowingly purchased deeply discounted viscosupplements that were reimported from foreign countries and billed them to state and federal health care programs in order to profit from the reimbursement system, when such reimported viscosupplements were not reimbursable by those programs. The reimported products allegedly included labeling in foreign languages and in English for additional uses not approved in the United States, which demonstrated that the product was reimported. Moreover, because the product was reimported, the government alleged there was no manufacturer assurance that it had not been tampered with or that it was stored appropriately.
“We are committed to maintaining the integrity of the health care system to ensure that patients receive drugs and devices that are safe and effective, and will take action against companies that take chances with the health of consumers in order to improve their own bottom lines.” said Acting U.S. Attorney Talbert.
“Medicare will not put the health of its beneficiaries at risk by paying for items that have been ‘reimported’ to this country by foreign suppliers,” said HHS OIG SAC Steven J. Ryan. “Once a product leaves the U.S., there is no accountability for whether it is the actual medication being billed, whether it has been properly stored or whether it could be too old to be useful. We will vigorously pursue providers who use and bill for these substances.”
The allegations resolved by the settlement were first raised in a lawsuit filed against the clinics under the qui tam, or whistleblower, provisions of the False Claims Act by a Senior Musculoskeletal Specialty Manager in the Biosurgery Division of Sanofi S.A., which manufactures Synvisc. The Act allows private citizens with knowledge of fraud to bring civil actions on behalf of the government and to share in any recovery. The whistleblower in this matter will receive approximately $430,000 of the recovery proceeds.
This case was prosecuted by Assistant United States Attorney Catherine Swann through a coordinated effort with the Department of Health and Human Services Office of Inspector General and Office of General Counsel, the Food and Drug Administration Office of Office of Chief Counsel, the California Department of Justice, Office of the Attorney General, Bureau of Medi-Cal Fraud and Elder Abuse, and the Nevada Attorney General, Medicaid Fraud Control Unit. The claims settled by this agreement are allegations only, and there has been no determination of liability.
October 2-8, 2016 Designated as National Community Policing WeekRead the Press Release
KNOXVILLE, Tenn. –President Obama has designated the week of Oct. 2-8, 2016, as National Community Policing Week. As part of the Obama Administration's commitment to building stronger relationships between law enforcement and the communities they serve, the Department of Justice will participate in events in support of community policing efforts around the country.
The week is also an extension of the Attorney General’s 12-city Community Policing Tour that highlighted collaborative programs and policing practices designed to advance public safety, strengthen police-community relations, and foster mutual trust and respect between law enforcement and citizens. National Community Policing Week builds on President Obama’s efforts to engage with law enforcement and other members of the community to implement key recommendations from the 21st Century Policing Task Force report.
Community policing is a public safety philosophy based on partnership and cooperation between law enforcement and the communities that they are sworn to protect. At the center of community policing is the idea that all members of the community, both officer and civilian, have a stake in the safety of their neighborhoods where they live and work.
Along with President Obama and Attorney General Lynch, the U.S. Attorney’s Office for the Eastern District of Tennessee is committed to doing its part to support law enforcement and the residents of its communities. U.S. Attorney Nancy Stallard Harr is encouraging local law enforcement to work with federal, state and other local police partners, community organizations, and stakeholders to hold appropriate events and engagement activities not only throughout National Community Policing Week, but on a regular basis. “These collective efforts and participation will ensure the continuation of the critical work being done across the country to make neighborhoods safer, stronger, and more united,” stated U.S. Attorney Harr.
Recently the U.S. Attorney’s office was notified of a number of federal grants which were awarded to local law enforcement and other agencies across east Tennessee to aide them in their efforts to protect and keep our communities safe. Highlights of these grant awards include:
COPS HIRING PROGRAM (CHP)
- Hamilton County Sheriff - $175,000
CHP grants provide matching funding awards to 184 law enforcement agencies across the nation, aimed at creating, or in some cases protecting, more than 900 law enforcement positions. CHP provides funding directly to state, local and tribal law enforcement agencies for the hiring and rehiring of entry-level career law enforcement officers in an effort to create and preserve jobs and increase community policing capacity and crime prevention efforts.
FY16 EDWARD BYRNE MEMORIAL ASSISTANCE GRANT (JAG) PROGRAM
- Blount County - $20,161
- City of Cleveland - $39,340
- Cocke County - $10,398
- City of Chattanooga - $138,816
- City of East Ridge - $11,084
- City of Johnson City - $31,122
- City of Kingsport - $22,193
- City of Knoxville (to share with Knox County) - $153,452
- City of Morristown - $13,098
- Sullivan County - $23,069
The JAG program allows states and units of government, including Indian tribes, to support a broad range of activities to prevent and control crime based on their own state and local needs and conditions. Grant funds can be used for state and local initiatives, technical assistance, training, personnel, equipment, supplies, contractual support, and information systems for criminal justice, including for any one of more of the following program areas: 1) law enforcement programs; 2) prosecution and court programs; 3) prevention and education programs; 4) corrections and community corrections programs; 5) drug treatment and enforcement programs; 6) planning, evaluation, and technology improvement programs; and 7) crime victim and witness programs.
FY 16 ADULT DRUG COURT DISCRETIONARY GRANT PROGRAM
- Morgan County - $300,000
- Sevier County - $300,000
The purpose of the Adult Drug Court Discretionary Grant Program is to provide financial and technical assistance to states, state courts, local courts, units of local government, and Indian tribal governments to develop and implement drug courts that effectively integrate evidence-based substance abuse treatment, mandatory drug testing, sanctions and incentives, and transitional services in a judicially supervised court setting with jurisdiction over substance abuse offenders.
FY16 BODY-WORN CAMERA (BWC) POLICY AND IMPLEMENTATION PROGRAM: IMPLEMENTATION OR EXPANSION OF BWC PROGRAMS FOR LARGE AGENCIES
- City of Chattanooga - $299,992
- City of Morristown - $42,500
The BWC Policy and Implementation Program supports the implementation of body-worn camera programs in law enforcement agencies across the country. The intent of the program is to help agencies develop, implement, and evaluate a BWC program as one tool in a law enforcement agency’s comprehensive problem solving approach to enhance officer interactions with the public and build community trust. Elements of such an approach include: implementation of a BWC program developed in a planned and phased approach; collaboration that leverages partnerships with cross-agency criminal justice stakeholders including prosecutors and advocacy organizations; implementation of appropriate privacy policies; implementation of operational procedures and tracking mechanisms; training of officers, administrators, and associated agencies requiring access to digital multimedia evidence; and adoption of practices and deployment of BWC programs appropriately addressing operational requirements.
IMPROVING CRIMINAL JUSTICE RESPONSE PROGRAM
- Partnership for Families, Children and Adults, Incorporated, Chattanooga - $442,343
The Improving Criminal Justice Response Program implements certain provisions of the Violence Against Women Act (VAWA) which enhances victim safety and offender accountability in cases of sexual assault, domestic violence, dating violence, and stalking by encouraging jurisdictions to implement pro-arrest policies as an effective intervention that is part of a coordinated community response. An integral component of this program is the creation and enhancement of collaborative partnerships between criminal justice agencies, victim services providers, and community organizations which respond to sexual assault, domestic violence, dating violence and stalking.
FY16 INTERNET CRIMES AGAINST CHILDREN TASK FORCE (ICAC)
- City of Knoxville - $381,931
The National Internet Crimes Against Children (ICAC) Task Force consists of state and local law enforcement task forces dedicated to developing effective responses to online enticement of children by sexual predators, child exploitation, and child obscenity and pornography cases.
FY 16 MENTORING OPPORTUNITIES FOR YOUTH INITIATIVE
Knoxville Leadership Foundation - $1,250,000
The Knoxville Area Mentoring Initiative (KAMI) is a collaborative mentoring project built on the resources of the strongest mentoring organizations in east Tennessee. KAMI is led by Knoxville Leadership Foundation through their program Amanchi Knoxville, and with partners Emerald Youth Foundation, Big Brothers Big Sisters of East Tennessee, Joy of Music School and Girls on the Run.
The Mentoring Opportunities for Youth Initiative provides funding to support organizations that form a collaborative of at least three and as many as five mentoring organizations in their efforts to strengthen and/or expand their existing mentoring programs to reduce juvenile delinquency, drug abuse, truancy, and other problem and high-risk behaviors. FY 2016 funding addresses the factors that can lead to or serve as a catalyst for delinquency or other problem behaviors for at-risk and high-risk youth.
TRANSITIONAL HOUSING GRANT ASSISTANCE PROGRAM
- Helen Ross McNabb Center, Incorporated - $350,000
The primary purpose of the Transitional Housing Assistance Program is to provide aid to victims of sexual assault, domestic violence, dating violence, and stalking who are homeless, or in need of transitional housing or other housing assistance, including short-term housing assistance and supportive services; and for whom emergency shelter services or other crisis intervention services are unavailable or insufficient. The program also focuses on supporting a holistic, victim-centered approach to provide transitional housing services that move individuals into permanent housing. It is critical that successful transitional housing programs provide a wide range of flexible and optional services that reflect the differences and individual needs of victims and that allow victims to choose the course of action that is best for them.
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North Carolina Couple Sentenced for Government Contract FraudRead the Press Release
GREENEVILLE, Tenn. – On Oct. 3, 2016, Ricky Anthony Lanier, 49, and his wife Katrina Reshina Lanier, 43, both of LaGrange, N.C., were sentenced to serve federal prison terms of 48 months and 30 months, respectively, for conspiracy to commit wire fraud, wire fraud, and major fraud against the United States. The couple were found guilty of these offenses on Dec. 17, 2015, following a 13-day jury trial in U.S. District Court.
According to evidence presented at trial, the Laniers conspired from November 2005 to April 2013 to defraud the United States government through a scheme to fraudulently obtain federal contracts intended to be awarded to businesses lawfully participating in the Department of Veterans Affairs’ (VA) Service-Disabled Veteran-Owned Small Business (SDVOSB) program and the Small Business Administration’s (SBA) 8(a) Business Development program. They falsely represented that JMR Investments was eligible as an 8(a) business and Kylee Construction was eligible as an SDVOSB and an 8(a) business.
Ricky Lanier, who had previously owned and operated an 8(a) business receiving government contracts, became ineligible to participate in the 8(a) program after that business graduated from that program in 2008. Lanier used a friend and service-disabled veteran as the purported owner of Kylee Construction, representing that the friend was involved in the daily management of the business, even while the friend was working for a government contractor in Afghanistan. The Laniers used a business owned by Ricky Lanier’s college roommate, JMR Investments, as a front to obtain construction contracts from the National Park Service and other federal agencies under the 8(a) program, misrepresenting the friend’s involvement in the management and operation of the business. The scheme also involved sub-contracting out all or almost all of the work on the contracts in violation of program requirements.
Ricky Lanier also defrauded the National Park Service in connection with a contract to replace a wastewater treatment facility at the Tremont Institute in the Great Smoky Mountains National Park, falsely representing subcontractor costs by over $400,000, resulting in the award of a $1.1 million contract for work on the project that was actually performed by a subcontractor for only $550,000. Lanier also fraudulently obtained a $1.3 million construction contract at the James H. Quillen VA Medical Center which had been set aside for SDVOSBs.
As a result of the false representations, Kylee Construction was awarded over $5 million in government contracts and JMR Investments was awarded over $9 million in government contracts. The Laniers received almost $2 million in financial benefit from the scheme, using accounts of the shell companies for payment of personal expenses.
Law enforcement agencies participating in the joint investigation which led to indictment and subsequent conviction of Ricky and Katrina Lanier included the VA-Office of Inspector General (OIG), SBA- OIG; and Department of the Interior, OIG, with assistance from the U.S. Secret Service. Former Assistant U.S. Attorney Neil Smith and Assistant U.S. Attorney David L. Gunn represented the United States.
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National Community Policing Week EventsRead the Press Release
United States Attorney Emily Gray Rice announced that the United States Attorney’s Office for the District of New Hampshire will be participating in the Department of Justice’s recognition of National Community Policing Week, October 3-7, 2016.
“Supporting and promoting strong relationships between our communities and the law enforcement agencies that serve the public is one of our most important priorities. Community policing is a comprehensive philosophy which embodies the principle that trust and mutual respect between police and the communities that they serve, insures that police and community stakeholders are true partners in preventing and fighting crime,” stated United States Attorney Rice. “We are very proud to support the law enforcement agencies across our state who protect the public safety with unfailing dedication, and an unwavering commitment to excellence, and to recognize that these partnerships result in stronger and safer communities.”
The Office of the United States Attorney will be participating in several special events in connection with Community Policing Week in New Hampshire. On Tuesday, October 4, 2016, United States Attorney Rice will join Concord, New Hampshire Police Chief Osgood for “Coffee with a Cop” at 9 a.m. at the Newell Post, 125 Fisherville Road, Concord, New Hampshire. Then, on Wednesday, October 5, 2016 at 7 p.m., United States Attorney Rice will participate in a crime prevention meeting conducted by the Nashua Police Department at Temple Beth Abraham, 4 Raymond Street, Nashua, New Hampshire. Both events are open to the public.
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Mission Viejo Man Agrees to Plead Guilty to $2.3 Million Real Estate Investment Fraud SchemeRead the Press Release
LOS ANGELES – A Mission Viejo man has agreed to plead guilty to taking more than $2,300,000 from investors in a fraudulent real estate investment scheme in which he used investor funds to pay for personal expenses, including travel and cosmetic surgery, to make cash withdrawals, and to make Ponzi-style payments to other investors.
Francisco “Frank” Hobson, 39, was named in a criminal information last Friday charging him with wire fraud. A plea agreement in the case was also filed, and, in the plea agreement, Hobson has agreed to plead guilty to the information and pay at least $1,584,941 to the victims of his crime. Hobson is expected to appear to be arraigned on the charge in the information this afternoon.
The information charges Hobson, who was at the time a licensed real estate agent, in connection with his scheme of luring victims to give him money, between December 2010 and June 2016, with his promises that their investments would be used to purchase properties. In reality, the properties that Hobson advertised to his victims were not actually for sale or simply did not exist, and Hobson sent victims purported purchase agreements for the properties which were fraudulent or forged.
Hobson continued to engage in the scheme for months after being interviewed in November 2015 by the Federal Bureau of Investigation in connection with complaints from two of his victims.
“The defendant made simple promises to his victims, promises he never intended to fulfill,” said United States Attorney Eileen M. Decker. “The defendant then used his victims’ hard-earned money to fund his personal lifestyle. That he continued to do so after law enforcement had interviewed him was all the more egregious.”
As detailed in the plea agreement, Hobson would tell investors to transfer money to “escrow accounts,” which were, in reality, his own bank accounts that he alone controlled. After the investors’ money was deposited in his accounts, Hobson used the money for personal purchases at grocery stores, chain restaurants, and retail stores, as well as making cash withdrawals. Hobson also used their money to pay his landlord, and for travel, laser hair removal, and plastic surgery. Furthermore, Hobson paid approximately $757,031 of the $2,339,473 he collected in the scheme to his victims as Ponzi-style payments designed to conceal and extend the length of the scheme.
“The defendant targeted Hispanic individuals and presented himself as someone they could trust in a classic affinity scheme, only to spend their money to live lavishly,” said Deirdre Fike, the Assistant Director in Charge of the FBI’s Los Angeles Field Office. “Mr. Hobson’s chronic criminal behavior even after an investigation was underway is a reminder that caution should be exercised before handing over large sums of money, even when someone appears to be in a position of trust, or when someone with a similar background is offering an investment opportunity.”
Wire fraud carries a statutory maximum penalty of 20 years in federal prison. The case against Hobson was investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant United States Attorney Anil J. Antony of the Cyber and Intellectual Property Crimes Section.
Maryland Man Charged with Attempting to Provide Material Support to Isil for Plan to Kill U.S. Military MemberRead the Press Release
Greenbelt, Maryland – Nelash Mohamed Das, age 24, a citizen of Bangladesh residing in Landover Hills, Maryland, has been charged by federal criminal complaint with attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a foreign terrorist organization, in connection with a plan to attack a U.S. military member. Das had an initial appearance at 2:00 p.m. today in U.S. District Court in Greenbelt, before U.S. Magistrate Judge Timothy J. Sullivan. Das was ordered to be detained pending a detention hearing, which is scheduled for Thursday, October 6, 2016, at 3:15 p.m. before Magistrate Judge Sullivan in U.S. District Court in Greenbelt. The complaint was filed on October 1, 2016.
The charges were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; and Special Agent in Charge Gordon B. Johnson of the Federal Bureau of Investigation, Baltimore Field Office.
“Our goal is to catch dangerous suspects before they strike, while respecting constitutional rights,” said U.S. Attorney Rod J. Rosenstein. “That is what the American people expect of the Justice Department, and that is what we aim to deliver.”
“The danger posed by Mr. Das during this investigation was very real. He was committed to carrying out an attack against a military member,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. “Through our proactive investigative stance, we were able to ensure the citizens of Maryland were protected. The covert nature of the defendant’s alleged actions is a stark reminder of the challenges we face in preventing attacks, and underscores the critical need for those with knowledge about terror plots to come forward.”
According to the affidavit filed in support of the criminal complaint, Das was admitted to the United States in 1995 and is a legal permanent resident.
The affidavit alleges that from September 28, 2015 to early 2016, Das used social media to express his support for ISIL, including support for terrorist attacks in Paris, France, and San Bernardino, California.
On October 26, 2015, Das tweeted the name of an individual and the city where they lived, stating that the individual “aspires to kill Muslims.” Das knew that the individual hoped to become a member of the U.S. military. ISIL members and supporters have posted identifying information about United States military personnel in hopes that those inspired by ISIL would carry out attacks against them. The affidavit alleges that Das was advertising the individual’s identity and whereabouts in order to inspire violence against that individual.
On January 30, 2016, Das tweeted a picture of an AK-47 assault rifle along with the text, “This is more than just a gun. This is a ticket to Jannah.” “Jannah” is a reference to the Islamic concept of paradise.
According to the affidavit, on April 30, 2016, Das attended the Handgun Qualification License class at a firing range in Prince George’s County, Maryland. After the class, Das told another individual that he wanted to buy a Glock 9mm handgun and an AK-47. Over the next five months, Das returned to the firing range to practice firing weapons, and submitted his fingerprints to obtain a handgun permit.
During May 2016, DAS met a confidential source working for the FBI. Das believed the source to be a like-minded supporter of ISIL. On May 24, 2016, Das told the source that he knew people overseas in Al Dawla (a common name for ISIL), and communicated with the Al Dawla members through online communications.
On July 23, 2016, Das told the source that he wanted to kill a particular military member who lived in Prince George’s County, Maryland, and whose identifying information Das had obtained the prior year from a list posted online by ISIL. Das stated that he could acquire a firearm from an individual he knows and stated his desire to travel overseas for ISIL if he had the opportunity. On July 30, 2016, Das advised the source that he could no longer find the ISIL list from the year before and asked the source if he had any ISIL contacts who could re-send the list.
According to the affidavit, on August 19, 2016, even though Das had stated that he could acquire a firearm, the confidential source told Das that he could acquire weapons for both of them. In subsequent meetings with the confidential source, Das continued to state that he was looking for names of targets for them to kill. In a meeting on September 11, 2016, Das confirmed that he was committed “100%” to conducting an attack and, “That’s like my goal in life.” In a meeting the following day Das stated that he wanted to get paid by ISIL for future killings, but would do it for free as well. Das further confirmed that he specifically wanted to target United States military personnel.
On September 28, 2016, Das and the source drove from Maryland to a firearms store in Virginia, where Das purchased one box (50 rounds) of 9mm ammunition and one box (50 rounds) of .40 caliber ammunition. At Das’ request, that same day, the confidential source provided Das with the identifying information of a target, who the source claimed was a member of the U.S. military. The confidential source told Das he received the information from an ISIL contact in Iraq. In reality, the source provided false information on behalf of the FBI. Based on discussions with the source, Das also believed that the ISIL contact in Iraq would facilitate the payment of approximately $80,000 in exchange for Das and the source conducting the attack. After purchasing the ammunition, Das and the source traveled from the Virginia firearms store to the Maryland address of the target in order to conduct surveillance.
The affidavit alleges that on September 30, 2016, while the confidential source was en route to pick up Das so they could conduct the attack, Das sent a text to the source that stated, “I’m ready.” When the confidential source arrived at the residence, Das loaded ammunition into the magazine of one of the two firearms previously acquired by the confidential source, with DAS’s knowledge and support. Das inserted the magazine into the firearm and loaded a bullet in the chamber. The firearms were then placed into the trunk of the vehicle. Although Das believed that the firearms could fire ammunition; in reality, they had been rendered inert by the FBI. Das and the source then traveled to the address of the target, where Das exited the vehicle and approached the trunk, where the firearms were located. When Das was standing next to the trunk, FBI agents approached and Das ran away. Das was taken into custody by FBI agents a short distance away from the vehicle.
Das faces a maximum sentence of 20 years in prison.
A criminal complaint is not a finding of guilt. An individual charged by criminal complaint is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI’s Joint Terrorism Task Force for its work in the investigation Mr. Rosenstein thanked his office’s national security prosecutors that are handling the matter, and recognized the Justice Department’s National Security Division, Counterterrorism Section, for its support.
Maryland Man Charged with Attempting to Provide Material Support to ISIL for Plan to Kill U.S. Military MemberRead the Press Release
Nelash Mohamed Das, 24, a citizen of Bangladesh residing in Hyattsville, Maryland, has been charged by federal criminal complaint with attempting to provide material support and resources to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization, in connection with a plan to kill a U.S. military member.
The charges were announced by Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Rod J. Rosenstein for the District of Maryland and Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Field Office. Das had an initial appearance at 2:00 p.m. today in U.S. District Court in Greenbelt before U.S. Magistrate Judge Timothy J. Sullivan. Das was ordered to be detained pending a detention hearing, which is scheduled for Thursday, Oct. 6, 2016, at 3:15p.m. before Magistrate Judge Sullivan in U.S. District Court in Greenbelt. The complaint was filed on Oct. 1, 2016.
“Nelash Mohamed Das is alleged to have plotted to kill a U.S. service member on behalf of ISIL,” said Assistant Attorney General Carlin. “Individuals intent on carrying out violence in the name of foreign terrorist organizations pose one of the most concerning threats that law enforcement faces today and stopping these offenders before they are able to act is our highest priority.”
“Our goal is to catch dangerous suspects before they strike, while respecting constitutional rights,” said U.S. Attorney Rod J. Rosenstein for the District of Maryland. “That is what the American people expect of the Justice Department, and that is what we aim to deliver.”
“The danger posed by Mr. Das during this investigation was very real. He was committed to carrying out an attack against a military member,” said Special Agent in Charge Gordon B. Johnson of the FBI’s Baltimore Division. “Through our proactive investigative stance, we were able to ensure the citizens of Maryland were protected. The covert nature of the defendant’s alleged actions is a stark reminder of the challenges we face in preventing attacks, and underscores the critical need for those with knowledge about terror plots to come forward.”
According to the affidavit filed in support of the criminal complaint, Das was admitted to the U.S. in 1995 and is a legal permanent resident.
The affidavit alleges that from Sept. 28, 2015 to early 2016, Das used social media to express his support for ISIL, including support for terrorist attacks in Paris, France, and San Bernardino, California.
On Oct. 26, 2015, Das tweeted the name of an individual and the city where they lived, stating that the individual “aspires to kill Muslims.” Das knew that the individual hoped to become a member of the U.S. military. ISIL members and supporters have posted identifying information about U.S. military personnel in hopes that those inspired by ISIL would carry out attacks against them. The affidavit alleges that Das was advertising the individual’s identity and whereabouts in order to inspire violence against that individual.
On Jan. 30, 2016, Das tweeted a picture of an AK-47 assault rifle along with the text, “This is more than just a gun. This is a ticket to Jannah.” “Jannah” is a reference to the Islamic concept of paradise.
According to the affidavit, on April 30, 2016, Das attended the Handgun Qualification License class at a firing range in Prince George’s County, Maryland. After the class, Das told another individual that he wanted to buy a Glock 9mm handgun and an AK-47. Over the next five months, Das returned to the firing range to practice firing weapons, and submitted his fingerprints to obtain a handgun permit.
During May 2016, Das met a confidential human source (CHS) working for the FBI. Das believed the CHS to be a like-minded supporter of ISIL. On May 24, 2016, Das told the CHS that he knew people overseas in Al Dawla (a common name for ISIL) and communicated with them through online communications.
On July 23, 2016, Das told the CHS that he wanted to kill a particular military member who lived in Prince George’s County, Maryland, and whose identifying information Das had obtained the prior year from a list posted online by ISIL. Das stated that he could acquire a firearm from an individual he knows and stated his desire to travel overseas for ISIL if he had the opportunity. On July 30, 2016, Das advised the CHS that he could no longer find the ISIL list from the year before and asked the CHS if he had any ISIL contacts who could re-send the list.
According to the affidavit, on Aug. 19, 2016, even though Das had stated that he could acquire a firearm, the CHS told Das that he could acquire weapons for both of them. In subsequent meetings with the CHS, Das continued to state that he was looking for names of targets for them to kill. In a meeting on Sept. 11, 2016, Das confirmed that he was committed “100%” to conducting an attack and, “That’s like my goal in life.” In a meeting the following day, Das stated that he wanted to get paid by ISIL for future killings, but would do it for free as well. Das further confirmed that he specifically wanted to target U.S. military personnel.
On Sept. 28, 2016, Das and the CHS drove from Maryland to a firearms store in Virginia, where Das purchased one box (50 rounds) of 9mm ammunition and one box (50 rounds) of .40 caliber ammunition. At Das’ request, that same day, the CHS provided Das with the identifying information of a target, who the CHS claimed was a member of the U.S. military. The CHS told Das he received the information from an ISIL contact in Iraq. In reality, the CHS provided false information on behalf of the FBI. Based on discussions with the CHS, Das also believed that the ISIL contact in Iraq would facilitate the payment of approximately $80,000 in exchange for Das and the CHS conducting the attack. After purchasing the ammunition, Das and the CHS traveled from the Virginia firearms store to the Maryland address of the target in order to conduct surveillance.
The affidavit alleges that on Sept. 30, 2016, while the CHS was en route to pick up Das so they could conduct the attack, Das sent a text to the CHS that stated, “I’m ready.” When the CHS arrived at the residence, Das loaded ammunition into the magazine of one of the two firearms previously acquired by the CHS, with Das’ knowledge and support. Das inserted the magazine into the firearm and loaded a bullet in the chamber. The firearms were then placed into the trunk of the vehicle. Although Das believed that the firearms could fire ammunition, in reality, they had been rendered inert by the FBI. Das and the CHS then traveled to the address of the target, where Das exited the vehicle and approached the trunk, where the firearms were located. When Das was standing next to the trunk, FBI agents approached and Das attempted to run away. Das was taken into custody by FBI agents a short distance from the vehicle.
Das faces a maximum sentence of 20 years in prison.
A criminal complaint is merely an allegation, and the defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes. If convicted of any offense, the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
U.S. Attorney Rosenstein and Assistant Attorney General Carlin thanked the FBI for its work in the investigation.
MS-13 Member Pleads Guilty to Racketeering ConspiracyRead the Press Release
BOSTON – A member of MS-13 pleaded guilty on Friday, Sept. 30, 2016, in connection with the stabbing of a rival gang member in Chelsea in December 2015.
Mauricio Sanchez, also known as “Tigre,” 29, of Chelsea, pleaded guilty in U.S. District Court in Boston to conspiracy to conduct enterprise affairs through a pattern of racketeering activity, more commonly referred to as racketeering conspiracy. U.S. District Court Judge Dennis Saylor IV scheduled sentencing for Dec. 22, 2016.
After a three-year investigation, Sanchez was one of 61 persons named in a January 2016 superseding indictment targeting the criminal activities of alleged leaders, members, and associates of Mara Salvatrucha (MS-13) in Massachusetts. As alleged in court documents, MS-13 was identified as a violent transnational criminal organization whose branches or “cliques” operate throughout the United States, including in the District of Massachusetts. MS-13 members are required to commit acts of violence to maintain membership and discipline within the group. Specifically, MS-13 members are required to attack and murder gang rivals whenever possible.
In court filings and at Friday’s plea hearing, Sanchez was identified as a member of MS-13’s Eastside Loco Salvatrucha (ESLS) clique. As an ESLS member, Sanchez “jumped in” new members and paid dues to fund MS-13 activities in Massachusetts and in El Salvador. As part of his plea agreement, Sanchez admitted that he and other MS-13 members stabbed a gang rival, believed to be a member of 18th Street, near Bellingham Square in Chelsea on Dec. 27, 2015.
The charging statute provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
Sanchez is the sixth defendant to plead guilty. Other defendants pleaded guilty to drug trafficking and immigration offenses.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police; Commissioner Thomas Truco of the Massachusetts Department of Corrections; Sheriff Frank Cousins of the Essex County Sheriff’s Department; Sheriff Steven W. Thompkins of the Suffolk County Sheriff’s Department; Daniel F. Conley, Suffolk County District Attorney; Marian T. Ryan, Middlesex County District Attorney; Jonathan Blodgett, Essex County District Attorney; Boston Police Commissioner William Evans; Chief Brian A. Kyes of the Chelsea Police Department; Chief Steven A. Mazzie of the Everett Police Department; Chief Kevin Coppinger of the Lynn Police Department; Chief Joseph Cafarelli of the Revere Police Department; and Chief David Fallon of the Somerville Police Department, made the announcement today.
Jacksonville Man Federally Charged for Receiving Child Pornography over the InternetRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announced today that Richard Daniel Lord (57, Jacksonville) has been arrested and charged in a federal criminal complaint with receiving child pornography over the Internet. He faces a mandatory minimum penalty of 5 years, up to 20 years, in federal prison, and a potential life term of supervision. His detention hearing is scheduled for October 5, 2016, at 3:30 p.m., in Jacksonville.
According to the complaint, on September 30, 2016, FBI agents executed a federal search warrant at Lord’s residence in Jacksonville. During an interview with agents, he admitted that he had used his cellphones to search for, download, and view child pornography. He stated that he was most interested in images and videos of children who were between 10 and 12 years of age, that he searched for child pornography “constantly,” and that he was unable to control himself. A forensic examination of one of Lord’s cellphones revealed a video that had been downloaded by Lord on September 16, 2016, depicting a child being sexually abused.
This case was investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Identity Thief Who Used Citizen’s Identity to Try to Obtain Passport ConvictedRead the Press Release
HOUSTON – A 37-year-old undocumented immigrant who had been using the identity of a United States citizen for almost a decade has been convicted, announced U.S Attorney Kenneth Magidson. Martina Azucena Melendrez Acevez was caught when she attempted to use the other woman’s identity to obtain a passport. Today, she pleaded guilty to making false claims to U.S. citizenship and making false statements in a passport application.
Since 2004, Acevez had been using the Social Security card and birth certificate of a 29-year-old Nebraska woman who was born in Houston to obtain driver’s licenses, identification cards and employment in the United States.
In late 2014, Aceves applied for a passport with the Department of State using the victim’s identity. Authorities discovered her true identity by comparing her fingerprints to those provided when obtaining driver’s licenses and identification cards in her real name prior to 2004. In addition, the photographs on her passport application as well as the driver’s licenses and identification cards in her real name and in the name of the victim all matched.
Authorities tracked down the mother, father, two siblings, two children and common-law husband of the victim who all confirmed Aceves was an imposter. In fact, Aceves provided the victim’s mother’s information in her passport application.
In connection with that passport application, Aceves submitted documents which she claimed established that she attended Sutton Elementary in the Houston Independent School District (HISD) under the name of the victim. However, HISD had no record of either the victim or Aceves ever attending and the photographic records of Sutton Elementary School contained no record of Aceves or the victim.
Furthermore, Customs and Border Protection had a record of the victim returning to the United States after spending time abroad. Those records further established that Aceves was an imposter.
The victim in the case has three children residing in Mexico and has been attempting to obtain a passport herself in order to bring her children to the United States. Due to the actions of Aceves, this process has been stalled and the victim has not seen her children for more than two years.
U.S. District Judge Lynn Hughes accepted the plea today and has set sentencing for Nov, 28, 2016. At that time, Aceves faces up to 10 years in federal prison. She will remain in custody pending that hearing.
The Department of State Diplomatic - Security Service conducted the investigation. Assistant U.S. Attorney Adam Goldman is prosecuting the case.
Hospital Chain Will Pay over $513 Million for Defrauding the United States and Making Illegal Payments in Exchange for Patient Referrals; Two Subsidiaries Agree to Plead GuiltyRead the Press Release
A major U.S. hospital chain, Tenet Healthcare Corporation, and two of its Atlanta-area subsidiaries will pay over $513 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States and to pay kickbacks in exchange for patient referrals.
Principal Deputy Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division; U.S. Attorney John Horn of the Northern District of Georgia; Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division; U.S. Attorney G.F. Peterman III of the Middle District of Georgia; Georgia Attorney General Samuel S. Olens; Acting Special Agent in Charge George Crouch of the FBI’s Atlanta Field Office; and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) in Atlanta made the announcement.
In addition, two Tenet subsidiaries, Atlanta Medical Center Inc. and North Fulton Medical Center Inc., have agreed to plead guilty to conspiracy to defraud the United States and to pay health care kickbacks and bribes in violation of the Anti-Kickback Statute (AKS). The plea agreements remain subject to acceptance by the court. Up until April 2016, Atlanta Medical Center Inc. and North Fulton Medical Center Inc. owned and operated acute-care hospitals located in the greater Atlanta metropolitan area.
Atlanta Medical Center Inc. and North Fulton Medical Center Inc. were charged in a criminal information filed today in federal court in Atlanta with conspiracy to defraud the United States by obstructing the lawful government functions of HHS and to violate the AKS, which, among other things, prohibits payments to induce the referral of patients for services paid for by federal health care programs. The two Tenet subsidiaries have agreed to plead guilty to the charges alleged in the criminal information and will forfeit over $145 million to the United States – which represents the amount paid to Atlanta Medical Center Inc. and North Fulton Medical Center Inc. by the Medicare and Georgia Medicaid programs for services provided to patients referred as part of the scheme.
Tenet HealthSystem Medical Inc. and its subsidiaries (collectively THSM) entered into a non-prosecution agreement (NPA) with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Georgia related to the charges in the criminal information. THSM is the parent company of Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital, and employed their executives. THSM is a subsidiary of Tenet Healthcare Corporation. Under the terms of the NPA, THSM and Tenet will avoid prosecution if they, among other requirements, cooperate with the government’s ongoing investigation and enhance their compliance and ethics program and internal controls. Tenet has also agreed to retain an independent compliance monitor to address and reduce the risk of any recurrence of violations of the AKS by any entity owned in whole, or in part, by Tenet. The term of THSM’s and Tenet’s obligations under the NPA is three years, but the NPA may be extended for up to one year.
In the civil settlement, Tenet agreed to pay $368 million to the federal government, the state of Georgia and the state of South Carolina to resolve claims asserted in United States ex rel. Williams v. Health Mgmt. Assocs., Tenet Healthcare, et al., a lawsuit filed by Ralph D. Williams, a Georgia resident, in the Middle District of Georgia, under the federal and Georgia False Claims Acts. The acts permit whistleblowers to file suit for false claims against the government entities and to share in any recovery. The federal share of the civil settlement is $244,227,535.30, the state of Georgia will recover $122,880,339.70 and the state of South Carolina will recover $892,125. Mr. Williams’ share of the combined civil settlement amount is approximately $84.43 million.
“When pregnant women seek medical advice, they deserve to receive care untainted by bribes and illegal kickbacks,” said Principal Deputy Assistant Attorney General Bitkower. “The Tenet case is the first brought through the assistance of the Criminal Division’s corporate health care fraud strike force. This is one of more than a dozen active corporate investigations by the strike force, and we are committed to following evidence of health care fraud wherever it leads – whether it be individual physicians, pharmacy owners or corporate boardrooms.”
“Our Medicaid system is premised on a patient’s ability to make an informed choice about where to seek care without undue interference from those seeking to make a profit,” said U.S. Attorney Horn. “Tenet cheated the Medicaid system by paying bribes and kickbacks to a pre-natal clinic to unlawfully refer over 20,000 Medicaid patients to the hospitals. In so doing, they exploited some of the most vulnerable members of our community and took advantage of a payment system designed to ensure that underprivileged patients have choices in receiving care.”
“The Department of Justice continues to devote enormous resources to exposing and pursuing alleged misconduct of improper financial relationships between hospitals and referral sources,” said Principal Deputy Assistant Attorney General Mizer. “Such relationships exploit vulnerable populations and threaten to drive up the cost of healthcare for everyone. In addition to yielding a substantial recovery for taxpayers, this settlement reflects the department’s lack of tolerance for these types of abusive arrangements, and the negative effects they can have on our health care system.”
“The global resolution of this complex and sophisticated fraud scheme exemplifies what can be accomplished through the cooperation of federal and state investigative and prosecutorial authorities,” said U.S. Attorney Peterman. “I am particularly proud of the civil attorneys in the U.S. Attorney’s Office for the Middle District of Georgia, working hand in hand with investigators of the U.S. Department of Health and Human Services and attorneys in the Civil Division and the Medicaid Fraud Control Unit of the Office of the Attorney General of Georgia, whose combined efforts greatly contributed to this outstanding result on behalf of the American taxpayers.”
“Tenet took advantage of vulnerable pregnant women in clear violation of the law by paying kickbacks in order to bring their referrals to Tenet hospitals,” said Georgia Attorney General Olens. “Through this scheme, Tenet defrauded the Georgia Medicaid program, and reaped hundreds of millions of dollars. This is an unprecedented settlement for the state of Georgia, and reflects my office’s commitment to protecting Georgia taxpayers by uncovering Medicaid fraud and abuse.”
“The FBI continues to play a significant role in ensuring that federal laws related to the healthcare industry, to include the federally funded Medicare and Medicaid programs, are enforced,” said Acting Special Agent in Charge Crouch. “The settlement agreements announced today involving Tenet Healthcare Corporation, as well as related guilty pleas by two of its Atlanta-based hospitals, Atlanta Medical Center Inc., and North Fulton Medical Center Inc., are a clear example of those efforts. In addition, the FBI’s Major Provider Response Team (MPRT) assisted the Atlanta Field Office in the civil and criminal investigation of Tenet. The MPRT was created in 2011 in response to numerous healthcare related corporate-level schemes resulting in billions in losses to healthcare plans. The FBI, along with its MPRT, will continue to aggressively address the threat of large-scale corporate healthcare schemes significantly impacting both private and government healthcare benefit plans.”
“OIG continues to emphasize investigation of improper financial relationships between health care providers,” said Special Agent in Charge Jackson. “Using their positions of trust, health providers – after receiving payments from Tenet – sent expectant women specifically to Tenet hospitals. Patients were often directed to Tenet facilities miles and miles from their homes and on their journeys passed other hospitals that could have provided needed care. These women were thereby placed at increased risk during one of the most vulnerable points in their lives. HHS-OIG will continue to protect patients by exposing such illegal arrangements.”
As alleged in the criminal information as well as civil complaints filed by the department and the state of Georgia in 2014 and 2013, Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital paid bribes and kickbacks to the owners and operators of prenatal care clinics serving primarily undocumented Hispanic women in return for the referral of those patients for labor and delivery medical services at Tenet hospitals. These kickbacks and bribes allegedly helped Tenet obtain more than $145 million in Medicaid and Medicare funds based on the resulting patient referrals.
According to the criminal information, as part of the scheme, expectant mothers were in some cases told at the prenatal care clinics that Medicaid would cover the costs associated with their childbirth and the care of their newborn only if they delivered at one of the Tenet hospitals, and in other cases were simply told that they were required to deliver at one of the Tenet hospitals, leaving them with the false belief that they could not select the hospital of their choice. The criminal information alleges that as a result of these false and misleading statements and representations, many expectant mothers traveled long distances from their homes to deliver at the Tenet hospitals, placing their health and safety, and that of their newborn babies, at risk.
The criminal information also charges Atlanta Medical Center Inc. and North Fulton Medical Center Inc. with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA). The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA. The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.
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Deputy Chief Joseph S. Beemsterboer, Assistant Chief Robert A. Zink and Trial Attorneys Sally B. Molloy, Antonio M. Pozos and A. Brendan Stewart of the Criminal Division’s Fraud Section and Chief Randy S. Chartash and Deputy Chief Stephen McClain of the Northern District of Georgia’s Economic Crime Section represented the government in the criminal prosecution. The U.S. Attorney’s Office of the Middle District of Georgia and the Civil Division’s Commercial Litigation Branch represented the federal government in the civil case. The HHS Office of Counsel to the Inspector General, the FBI and the Georgia and South Carolina Medicaid Fraud Control Units provided assistance in this matter.
The FBI’s Atlanta Field Office, HHS-OIG and the FBI Healthcare Fraud Unit MPRT investigated the case.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of HHS. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.9 billion through False Claims Act cases, with more than $18.6 billion of that amount recovered in cases involving fraud against federal health care programs.
If you believe you are a victim of this offense, please visit this website or call (888) 549-3945.
Hospital Chain Will Pay over $513 Million for Defrauding the United States and Making Illegal Payments in Exchange for Patient Referrals; Two Subsidiaries Agree to Plead GuiltyRead the Press Release
WASHINGTON – A major U.S. hospital chain, Tenet Healthcare Corporation, and two of its Atlanta-area subsidiaries will pay over $513 million to resolve criminal charges and civil claims relating to a scheme to defraud the United States and to pay kickbacks in exchange for patient referrals.
Principal Deputy Assistant Attorney General David Bitkower of the Justice Department’s Criminal Division; U.S. Attorney John Horn of the Northern District of Georgia; Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division; U.S. Attorney G.F. Peterman III of the Middle District of Georgia; Georgia Attorney General Samuel S. Olens; Acting Special Agent in Charge George Crouch of the FBI’s Atlanta Field Office; and Special Agent in Charge Derrick L. Jackson of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) in Atlanta made the announcement.
In addition, two Tenet subsidiaries, Atlanta Medical Center Inc. and North Fulton Medical Center Inc., have agreed to plead guilty to conspiracy to defraud the United States and to pay health care kickbacks and bribes in violation of the Anti-Kickback Statute (AKS). The plea agreements remain subject to acceptance by the court. Up until April 2016, Atlanta Medical Center Inc. and North Fulton Medical Center Inc. owned and operated acute-care hospitals located in the greater Atlanta metropolitan area.
Atlanta Medical Center Inc. and North Fulton Medical Center Inc. were charged in a criminal information filed today in federal court in Atlanta with conspiracy to defraud the United States by obstructing the lawful government functions of HHS and to violate the AKS, which, among other things, prohibits payments to induce the referral of patients for services paid for by federal health care programs. The two Tenet subsidiaries have agreed to plead guilty to the charges alleged in the criminal information and will forfeit over $145 million to the United States – which represents the amount paid to Atlanta Medical Center Inc. and North Fulton Medical Center Inc. by the Medicare and Georgia Medicaid programs for services provided to patients referred as part of the scheme.
Tenet HealthSystem Medical Inc. and its subsidiaries (collectively THSM) entered into a non-prosecution agreement (NPA) with the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Northern District of Georgia related to the charges in the criminal information. THSM is the parent company of Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital, and employed their executives. THSM is a subsidiary of Tenet Healthcare Corporation. Under the terms of the NPA, THSM and Tenet will avoid prosecution if they, among other requirements, cooperate with the government’s ongoing investigation and enhance their compliance and ethics program and internal controls. Tenet has also agreed to retain an independent compliance monitor to address and reduce the risk of any recurrence of violations of the AKS by any entity owned in whole, or in part, by Tenet. The term of THSM’s and Tenet’s obligations under the NPA is three years, but the NPA may be extended for up to one year.
In the civil settlement, Tenet agreed to pay $368 million to the federal government, the state of Georgia and the state of South Carolina to resolve claims asserted in United States ex rel. Williams v. Health Mgmt. Assocs., Tenet Healthcare, et al., a lawsuit filed by Ralph D. Williams, a Georgia resident, in the Middle District of Georgia, under the federal and Georgia False Claims Acts. The acts permit whistleblowers to file suit for false claims against the government entities and to share in any recovery. The federal share of the civil settlement is $244,227,535.30, the state of Georgia will recover $122,880,339.70, and the state of South Carolina will recover $892,125. Mr. Williams’ share of the combined civil settlement amount is approximately $84.43 million.
“When pregnant women seek medical advice, they deserve to receive care untainted by bribes and illegal kickbacks,” said Principal Deputy Assistant Attorney General Bitkower. “The Tenet case is the first brought through the assistance of the Criminal Division’s corporate health care fraud strike force. This is one of more than a dozen active corporate investigations by the strike force, and we are committed to following evidence of health care fraud wherever it leads – whether it be individual physicians, pharmacy owners or corporate boardrooms.”
“Our Medicaid system is premised on a patient’s ability to make an informed choice about where to seek care without undue interference from those seeking to make a profit,” said U.S. Attorney Horn. “Tenet cheated the Medicaid system by paying bribes and kickbacks to a pre-natal clinic to unlawfully refer over 20,000 Medicaid patients to the hospitals. In so doing, they exploited some of the most vulnerable members of our community and took advantage of a payment system designed to ensure that underprivileged patients have choices in receiving care.”
“The Department of Justice continues to devote enormous resources to exposing and pursuing alleged misconduct of improper financial relationships between hospitals and referral sources,” said Principal Deputy Assistant Attorney General Mizer. “Such relationships exploit vulnerable populations and threaten to drive up the cost of healthcare for everyone. In addition to yielding a substantial recovery for taxpayers, this settlement reflects the department’s lack of tolerance for these types of abusive arrangements, and the negative effects they can have on our health care system.”
“The global resolution of this complex and sophisticated fraud scheme exemplifies what can be accomplished through the cooperation of federal and state investigative and prosecutorial authorities,” said U.S. Attorney Peterman. “I am particularly proud of the civil attorneys in the U.S. Attorney’s Office for the Middle District of Georgia, working hand in hand with investigators of the U.S. Department of Health and Human Services and attorneys in the Civil Division and the Medicaid Fraud Control Unit of the Office of the Attorney General of Georgia, whose combined efforts greatly contributed to this outstanding result on behalf of the American taxpayers.”
“Tenet took advantage of vulnerable pregnant women in clear violation of the law by paying kickbacks in order to bring their referrals to Tenet hospitals,” said Georgia Attorney General Olens. “Through this scheme, Tenet defrauded the Georgia Medicaid program, and reaped hundreds of millions of dollars. This is an unprecedented settlement for the state of Georgia, and reflects my office’s commitment to protecting Georgia taxpayers by uncovering Medicaid fraud and abuse.”
“The FBI continues to play a significant role in ensuring that federal laws related to the healthcare industry, to include the federally funded Medicare and Medicaid programs, are enforced,” said Acting Special Agent in Charge Crouch. “The settlement agreements announced today involving Tenet Healthcare Corporation, as well as related guilty pleas by two of its Atlanta-based hospitals, Atlanta Medical Center Inc., and North Fulton Medical Center Inc., are a clear example of those efforts. In addition, the FBI’s Major Provider Response Team (MPRT) assisted the Atlanta Field Office in the civil and criminal investigation of Tenet. The MPRT was created in 2011 in response to numerous healthcare related corporate-level schemes resulting in billions in losses to healthcare plans. The FBI, along with its MPRT, will continue to aggressively address the threat of large-scale corporate healthcare schemes significantly impacting both private and government healthcare benefit plans.”
“OIG continues to emphasize investigation of improper financial relationships between health care providers,” said Special Agent in Charge Jackson. “Using their positions of trust, health providers – after receiving payments from Tenet – sent expectant women specifically to Tenet hospitals. Patients were often directed to Tenet facilities miles and miles from their homes and on their journeys passed other hospitals that could have provided needed care. These women were thereby placed at increased risk during one of the most vulnerable points in their lives. HHS-OIG will continue to protect patients by exposing such illegal arrangements.”
As alleged in the criminal information as well as civil complaints filed by the department and the state of Georgia in 2014 and 2013, Atlanta Medical Center Inc., North Fulton Medical Center Inc., Spalding Regional Medical Center Inc. and Hilton Head Hospital paid bribes and kickbacks to the owners and operators of prenatal care clinics serving primarily undocumented Hispanic women in return for the referral of those patients for labor and delivery medical services at Tenet hospitals. These kickbacks and bribes allegedly helped Tenet obtain more than $145 million in Medicaid and Medicare funds based on the resulting patient referrals.
According to the criminal information, as part of the scheme, expectant mothers were in some cases told at the prenatal care clinics that Medicaid would cover the costs associated with their childbirth and the care of their newborn only if they delivered at one of the Tenet hospitals, and in other cases were simply told that they were required to deliver at one of the Tenet hospitals, leaving them with the false belief that they could not select the hospital of their choice. The criminal information alleges that as a result of these false and misleading statements and representations, many expectant mothers traveled long distances from their homes to deliver at the Tenet hospitals, placing their health and safety, and that of their newborn babies, at risk.
The criminal information also charges Atlanta Medical Center Inc. and North Fulton Medical Center Inc. with conspiring to defraud HHS in its administration and oversight of the Medicare and Medicaid Programs, including HHS-OIG’s enforcement of Tenet’s September 2006 corporate integrity agreement (the CIA). The criminal information and the civil complaint allege that many of the unlawful payments happened while Tenet was under the CIA. The criminal information further alleges that certain executives of Atlanta Medical Center Inc., North Fulton Medical Center Inc. and others concealed these unlawful payments from HHS-OIG during the pendency of the CIA by, among other things, falsely certifying compliance with the requirements of the CIA and failing to disclose reportable events relating to the unlawful relationship under the CIA.
Deputy Chief Joseph S. Beemsterboer, Assistant Chief Robert A. Zink and Trial Attorneys Sally B. Molloy, Antonio M. Pozos and A. Brendan Stewart of the Criminal Division’s Fraud Section and Chief Randy S. Chartash and Deputy Chief Stephen McClain of the Northern District of Georgia’s Economic Crime Section represented the government in the criminal prosecution. The U.S. Attorney’s Office of the Middle District of Georgia and the Civil Division’s Commercial Litigation Branch represented the federal government in the civil case. The HHS Office of Counsel to the Inspector General, the FBI and the Georgia and South Carolina Medicaid Fraud Control Units provided assistance in this matter.
The FBI’s Atlanta Field Office, HHS-OIG and the FBI Healthcare Fraud Unit MPRT investigated the case.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of HHS. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.9 billion through False Claims Act cases, with more than $18.6 billion of that amount recovered in cases involving fraud against federal health care programs.
If you believe you are a victim of this offense, please visit this website or call (888) 549-3945.
Harrison County man pleads guilty to unlawful purchase of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Christopher Plaugher, 26, of Clarksburg, West Virginia pled guilty to providing a false statement while attempting to purchase a firearm, United States Attorney William J. Ihlenfeld, II, announced.
Plaugher pled guilty to one count of “False Statement During the Purchase of a Firearm.” He admitted to falsely representing that he was the actual buyer of a .40 caliber pistol when he was actually attempting to purchase the firearm on behalf of another buyer.
He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney David J. Perri prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives and the Greater Harrison Drug and Violent Crime Task Force investigated.
U.S. Magistrate Judge Michael John Aloi presided.
Guatemalan Charged with Re-Entry After Previous DeportationRead the Press Release
BINGHAMTON, NEW YORK – Edison Lopez-Raymundo, 26, a citizen of Guatemala, made his initial appearance before a United States Magistrate Judge today in Syracuse, New York. He is charged by a criminal compliant with Re-Entry of a Removed Alien, pursuant to Title 8 U.S.C. § 1326(a), announced United States Attorney Richard S. Hartunian.
According to the criminal complaint, Edison Lopez-Raymundo was found on September 7, 2016 in Cortland, New York, after he was previously removed from the United States and having returned without the consent of the Secretary of Homeland Security to apply for readmission. If convicted, he faces a maximum of 2 year’s imprisonment, 1 year of supervised release, a $250,000 fine, and deportation to Guatemala. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
The charges in the complaint are merely accusations. The defendant is presumed innocent until proven guilty.
This case is being investigated by Department of Homeland Security, Immigration & Customs Enforcement, and is being prosecuted by Assistant U.S. Attorney Miroslav Lovric.
Green Bay Tax Preparer Pleads Guilty to Tax FraudRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, announced that Moises Alcazar (age: 34) of Green Bay has plead guilty to assisting and advising in the preparation and filing of a false income tax returns in violation of 26 United States Code Section 7206(2). Alcazar faces a maximum term of imprisonment of three years, a maximum term of supervised release of one year, a maximum fine of $100,000, and restitution to be ordered by the court.
Alcazar ran Alcazar Tax Services from 2006 to 2012 and acknowledged as part of a plea agreement that he had perpetrated a pair of related tax fraud schemes that caused a total loss to the government of over $766,000. In the first scheme, Alcazar would assist clients in artificially and illegally inflating their tax refunds. In the second scheme, Alcazar used documents supplied by foreign co-conspirators to file fabricated tax returns.
The case was investigated by the Internal Revenue Service Criminal Investigation and prosecuted by Assistant United States Attorneys Richard Frohling and Benjamin Taibleson.
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Georgia Woman Sentenced to over 3.5 Years in Prison for Laundering and Structuring more than $200,000 for California Drug Trafficking OrganizationRead the Press Release
FRESNO, Calif. — Ashley Starling Thomas, 29, of Atlanta, Georgia, was sentenced today to three and a half years in prison by U.S. District Judge Lawrence J. O’Neill after being convicted by a jury in May 2016 of conspiring to launder money, conspiring to structure cash transactions, five counts of money laundering, and four counts of structuring cash transactions, Acting United States Attorney Phillip A. Talbert announced.
According to the evidence presented at trial, Thomas moved more than $200,000 in drug money through her bank accounts in a 22-day period in the summer of 2013. Thomas, who resided in Houston, Texas at the time, flew to Northern California on airline tickets paid for by a drug trafficking organization and made cash withdrawals of drug money from her bank accounts at dozens of bank branches in Sacramento, Eureka, and San Francisco. Thomas also traveled to Fresno where the drug trafficking organization was located. All of the cash withdrawals made by Thomas were in amounts less than $10,000 for the purpose of preventing her banks from filing Currency Transaction Reports on her cash withdrawals.
“Ashley Thomas participated in a drug conspiracy by funneling illegal drug proceeds through the financial banking system,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Cash deposits were made from Florida into Thomas’ personal bank account and she would then travel to California to make the cash withdrawals. The cash withdrawals represented profits earned by the drug organization. IRS-CI is committed to stopping funnel account activity and other methods of money laundering being used by drug trafficking organizations.”
Thomas was remanded into custody following her trial in May 2016 and was ordered to remain in custody to serve her sentence.
Co-defendants Chad Riffle, Peter Capodieci, Jeremy Murphy, and Aseel Al-Saber have been sentenced and are currently serving their prison terms. Co-defendants Miguel Gonzalez, Brandon Thomas, and Bree Ann Benson have pleaded guilty to conspiring to structure cash transactions and are awaiting sentencing.
This case was brought as part of Operation Footprint, a nationwide law enforcement initiative led by the U.S. Attorney’s Offices, the Internal Revenue Service-Criminal Investigation, the Drug Enforcement Administration, and the United States Postal Inspection Service. Operation Footprint targets large drug trafficking organizations by identifying the transfer of drug proceeds through financial institutions, bulk cash smuggling and other forms of money transfers. Operation Footprint is focused on bringing criminal charges based on Bank Secrecy Act violations in addition to violations of the Controlled Substances Act and the Money Laundering Control Act.
This case was also the product of the Organized Crime Drug Enforcement Task Force (OCDETF), a focused multi-agency, multi-jurisdictional task force investigating and prosecuting the most significant drug trafficking organizations in the U.S. by leveraging the combined expertise of federal, state and local law enforcement agencies. Assistant U.S. Attorneys Grant B. Rabenn and Vincente A. Tennerelli are prosecuting the case.
Former medical practice manager sentenced for obtaining prescription opioids by fraudRead the Press Release
CHARLESTON, W.Va. – A Nicholas County woman who issued herself prescriptions without authorization from a doctor was sentenced today after being convicted of obtaining the prescription opioid pain medication tramadol by fraud, announced United States Attorney Carol Casto. Cary Lynn Eades, 47, of Mount Nebo, was sentenced to three years of probation.
On numerous occasions between January 2012 and March 2015, Eades took advantage of her position as a medical practice manager to issue herself prescriptions for tramadol using the names and DEA registration numbers of doctors for whom she worked. Eades filled prescriptions at pharmacies in Nicholas, Fayette, and Kanawha counties. The Central West Virginia Drug Task Force became involved in February 2015 when one of the medical practices reported suspicious prescriptions being issued to Eades.
Eades was indicted in Fayette and Nicholas counties in 2015 on more than 30 felony counts of obtaining a prescription by fraud. Her guilty plea in federal court reflects a consolidation of those charges as well as potential charges in Kanawha County.
This case was investigated by the Central West Virginia Drug Task Force. Assistant United States Attorney Joshua Hanks handled the prosecution. United States District Judge Thomas E. Johnston imposed the sentence.
This prosecution is part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of pills and heroin in communities across the Southern District.
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Former Stanislaus County Resident Pleads Guilty to Obstructing Tax LawsRead the Press Release
FRESNO, Calif. — Frank A. Bilan, 68, formerly of Newman, pleaded guilty today to one count of corrupt endeavor to obstruct and impede the administration of the internal revenue laws, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Bilan earned income as a salaried engineer and through his engineering consulting business. Between 2005 and 2009, Bilan received over $900,000 in income from his employment, consulting business, and withdrawals from his retirement accounts. Bilan, however, did not timely file true and accurate tax returns for tax years 2001 through 2009. When the IRS sent correspondence to Bilan regarding past due taxes, Bilan responded by, among other things, attempting to file false purported income tax returns that did not report any of his gross income for 2001 through 2005, and filing a fictitious form that purported to discharge monies owed by him to the IRS.
This case is the product of an investigation by the Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Henry Z. Carbajal III is prosecuting the case.
“Mr. Bilan intentionally failed to file tax returns with over $900,000 of income,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Once the IRS notified him, he sent in erroneous and fictitious forms in his continued attempt to avoid paying his fair share. These kinds of cases are at the core CI’s mission and we will continue to pursue those who undermine the integrity of the U.S. tax system.”
Bilan is scheduled to be sentenced on March 6, 2017, by U.S. District Judge Lawrence J. O’Neill. Bilan faces a maximum statutory penalty of three years in prison and a $250,000 fine. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Former Fairfield PD Custodian Pleads Guilty as Felon in Possession of FirearmsRead the Press Release
BIRMINGHAM – A former Fairfield Police Department custodian pleaded guilty today to being a felon in possession of firearms, which he stole from the police department’s evidence room and was selling from his home, announced U.S. Attorney Joyce White Vance and Alcohol, Tobacco, Firearms and Explosives Assistant Special Agent in Charge David Hyche.
ROY ELLIS HUNTER, 70, entered his guilty plea before U.S. District Judge Madeline Hughes Haikala to one count of a July indictment that charged him with being a convicted felon in possession of four handguns on June 4, 2015. As part of his plea, Hunter agrees to forfeit 50 firearms, acknowledging they were connected to his crime. Hunter is scheduled for sentencing March 7.
“Roy Hunter is no longer stealing and selling guns,” Vance said. “ATF and the Alabama Law Enforcement Agency shut down his conversion of evidence in a police locker into inventory for his illegal home-based gun store. Their fine work and this prosecution help make our communities safer.”
“The collaborative efforts of ATF, the U.S. Attorney’s Office and our law enforcement partners prevented the potential for firearms to illegally enter into commerce,” Hyche said. “Reducing the flow of illegal firearms into our communities aids in providing a safe environment for the public.”
According to the indictment and Hunter’s plea agreement, Hunter was convicted on federal racketeering and cocaine distribution charges in 1984 and on federal counterfeiting charges in 1983.
On June 4, 2015, Hunter sold four handguns, a Cobra .380-caliber pistol, an FIE .32-caliber revolver, an Iberia .40-caliber pistol and a Norinco 9 mm pistol, for $800 to an informant working undercover with ATF agents, according to the plea agreement. The transaction took place at Hunter’s Fairfield home and was monitored and recorded. In the course of that sale, Hunter and the informant planned a future purchase.
On July 8, in another monitored transaction at Hunter’s residence, the informant paid Hunter $4,000 to buy 15 firearms, which he selected from 30 that Hunter retrieved from his basement, according to the plea agreement. One of the guns was in a clear plastic bag that was marked “Evidence.” Agents arrested Hunter the next day and recovered 31 firearms, ammunition, narcotics and a decorative sword “that were all presumed to be stolen from the Fairfield Police Department,” according to the plea agreement.
The maximum penalty for the charge of felon in possession of a firearm is 10 years in prison and a $250,000 fine. ATF, with assistance from ALEA, investigated the case, which Assistant U.S. Attorney Michael A. Royster is prosecuting.
Former Bakersfield Police Department Detective Sentenced to 5 Years in Prison for Bribery, Drug Trafficking, and Filing a False Tax ReturnRead the Press Release
FRESNO, Calif. — Damacio Diaz, 44, of McFarland, formerly a detective with the Bakersfield Police Department, was sentenced today to five years in prison for bribery, possession and attempted possession with the intent to distribute methamphetamine, and making and subscribing a false income tax return, Acting United States Attorney Phillip A. Talbert announced.
U.S. District Judge Lawrence J. O’Neill ordered Diaz to begin serving his sentence on December 5, 2016. Diaz pleaded guilty to the charges on May 31, 2016. Diaz’s former partner, Patrick Mara, 36, of Bakersfield pleaded guilty to related charges on June 20, 2016, and is scheduled to be sentenced on October 17, 2016.
According to court documents, between April 2012 and February 2015, while employed as a police officer with the Bakersfield Police Department (BPD), Diaz handled a criminal informant who was involved in the large-scale sale and distribution of methamphetamine. Diaz continued to operate the informant even though he was fully aware of the informant’s ongoing criminal activity. During this time, Diaz received bribes from the informant in return for intelligence on law enforcement activities as well as protection from investigation and arrest.
In addition to accepting illegal bribes, Diaz also engaged in drug trafficking while with the BPD. On September 20, 2012, while on duty, Diaz stopped a vehicle operated by two individuals from Yakima, Washington and used a BPD dog handler and police dog to search the vehicle. The search uncovered an ice chest containing approximately 10 pounds of methamphetamine divided into multiple bags. The BPD dog handler did not seize any of the drugs from the vehicle, but turned the scene over to Diaz and Mara to secure the methamphetamine and oversee the investigation of the incident. A week later, Diaz booked approximately one pound of methamphetamine from the vehicle stop into evidence. Diaz and Mara maintained possession of the remaining nine pounds of methamphetamine, and they ultimately sold it for their own personal gain.
According to the plea agreement, Diaz also filed a joint income tax return for the calendar year 2012 that falsely reported total income of $168,485 and did not include additional income of at least $97,900.
Acting U.S. Attorney Talbert stated: “Diaz had a life that afforded him many opportunities, including the opportunity to serve and protect his community as an officer of the law. Diaz turned his back on those opportunities and broke the trust his community placed in him, violating the very laws he was sworn to enforce. Public corruption takes a heavy toll on our communities, and our office remains committed to prosecuting such conduct.”
Bakersfield Chief of Police Williams stated: “I appreciate the efforts of all agencies involved in this lengthy and exhaustive investigation and I am thoroughly satisfied with the ultimate conviction of Damacio Diaz. The behavior and criminal activity that was exposed during this comprehensive investigation is in no way reflective of the commitment and remarkable public service the over 500 employees of the Bakersfield Police Department provide to our community on a consistent basis. Diaz violated not only the trust of this organization but that of this community. The Bakersfield Police Department is committed to building and maintaining public trust by holding our employees accountable for their actions and we will continue to provide quality service to our community. We appreciate the support we have been given throughout this investigation and wish to thank the community for their patience and understanding.”
DEA Special Agent in Charge John J. Martin stated, “Damacio Diaz committed crimes in a community he took an oath to serve and protect. In doing so, he betrayed the trust of the public and his fellow officers.”
“Damacio Diaz used his lawful authority as a sworn peace officer with the Bakersfield Police Department to illegally enrich his self-interests,” said Michael T. Batdorf, Special Agent in Charge, IRS Criminal Investigation. “Greed was a major motivation for Diaz to begin making unfortunate decisions that brought him to conspire with drug dealers and accept bribes for money. IRS-CI will continue to work with our law enforcement partners and the United States Attorney’s Office to investigate these types of crimes that have a negative impact on our communities and the American Taxpayer.”
“Diaz's illegal activity caused irreparable damage to his reputation, put the lives of others at risk, undermined public trust in the Bakersfield Police Department, and facilitated criminal activity,” said Special Agent in Charge Monica M. Miller of the FBI Sacramento field office. “The FBI and its federal law enforcement partners will continue to identify and investigate individuals who violate their oath of service and ignore the commitment they made to their communities.”
This case was the product of an investigation by the Federal Bureau of Investigation, the Drug Enforcement Administration, the Internal Revenue Service-Criminal Investigation, and the Bakersfield Police Department. Assistant United States Attorneys Brian K. Delaney and Angela Scott prosecuted the case.
FBI Citizens Academy Alumni Visit INTERPOL WashingtonRead the Press Release
INTERPOL Washington FBI Academy Alumni from Birmingham, Alabama, Visit INTERPOL Washington's International Operations and Command Center.On September 29, 2016, members of the Birmingham Chapter of the Federal Bureau of Investigation (FBI) Citizens Academy Alumni Association (FBICAAA) visited INTERPOL Washington, the U.S. National Central Bureau (USNCB).
The visit was one of several the group took to federal law enforcement organizations in the Washington, D.C. area this week. The group received an overview of the operations and capabilities of the USNCB followed by an opportunity to ask questions of USNCB staff. They also toured the INTERPOL Operations and Command Center (IOCC).
FBI Citizens Academy programs give business, religious, civic, and community leaders around the United States a six-to-eight week look inside the FBI. Classes meet in the evening in FBI offices.
The mission of the Academies is to foster greater understanding of the role of federal law enforcement in the community through frank discussion and education. Candidates are selected by the special agent in charge of the local FBI field office. To find out more about the FBI Citizens Academy in your area, contact your local field office at https://www.fbi.gov/contact-us .