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29 September 2016
Dauphin County Man Pleads Guilty to Federal Charges of Receipt of Child PornographyRead the Press Release
HARRISBURG - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Halifax man pled guilty before U.S. District Court Judge William W. Caldwell, to a two count felony information, charging him with receipt of images depicting the sexual exploitation of children.
According to United States Attorney Peter Smith, David Allen Hoffman, age 68, received images depicting the sexual abuse of children from an international company. After obtaining a warrant, federal law enforcement officers searched the defendant’s home in August 2016 and located hundreds of images and movies containing child pornography Hoffman received in 2011.
This case was investigated by the United States Postal Inspection Service and the Pennsylvania Office of the Attorney General. The case is being prosecuted by Assistant United States Attorney Daryl Bloom.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law for Counts 1 and 2 is 20 years’ imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Counts 1 and 2 both carry a mandatory term of imprisonment of 5 years’ imprisonment. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Columbiana County man indicted for having unregistered silencersRead the Press Release
A federal grand jury returned a one-count indictment charging Brent See, 39, of East Palestine, with possession of unregistered firearms, said Carole S. Rendon, United States Attorney for the Northern District of Ohio.
The indictment alleges that beginning in June 2015 through on or about August 9, 2016, See knowingly possessed silencers not registered to him in the National Firearms Registration and Transfer Record.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the United States Probation Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
College Park Men Convicted in a String of Drug Store RobberiesRead the Press Release
ATLANTA - Lloyd Nathaniel Joyner, a/k/a Zulu, a/k/a Zu, and Dave Montonio Sturgis, Jr., have been convicted in federal district court in connection with a string of armed, drug store robberies in Atlanta and Cobb County, Georgia, in May and June 2015.
“These armed robbers stormed into businesses terrorizing the employees inside,” said U.S. Attorney John Horn. “Through the hard work of the local police, the GBI and the FBI, law enforcement stopped this violent robbery crew, helping to make our community safer.”
“The armed robbery convictions of these two men in federal court signal not only a victory for those many agents and officers working long hours on this matter, but also for those citizens terrorized by their violent robberies. These convictions hold both Joyner and Sturgis fully accountable for their unbridled criminal conduct that spanned several metro Atlanta jurisdictions and their future now rests with a federal judge as they await sentencing,” said George Crouch, Acting Special Agent in Charge, FBI Atlanta Field Office.
“This conviction illustrates the great work of law enforcement in investigating and prosecuting armed robberies in Georgia. The Georgia Bureau of Investigation remains committed to working with our local and federal partners to pursue these vicious crimes,” said Vernon Keenan, Director, Georgia Bureau of Investigation.
“I am pleased with the efforts of several law enforcement agencies working together to bring two violent criminals to justice,” said Randy Johnson, Chief of the Lawrenceville Police Department. Johnson emphasized the need for agencies to work together and share information in order to stop violent crime – “Criminals do not recognize jurisdictional limits, nor do they confine their activities to a single jurisdiction,” he said. He also praised the work of Lawrenceville Police detective Justin Hipps, who recognized the similarity in crimes occurring across metro-Atlanta. Detective Justin Hipps first noticed the robberies were related and put together a task force to solve the incidents. “Detective Hipps did a great job to bring agencies together to share information. We are proud of his tenacious efforts in investigating these crimes,” said Johnson.
According to U.S. Attorney Horn, the charges and other information presented at trial: Joyner and Joseph Stowers, who pleaded guilty prior to the trial, robbed CVS and Walgreens drug stores in Marietta, Smyrna, and Atlanta in May and June 2015. During the robberies, the men were dressed in black, hooded sweatshirts, their faces were masked, and they brandished semiautomatic pistols. They burst into the drug stores near closing time or, in the case of 24-hour stores, after midnight, when the stores were empty. They terrorized the employees by rounding them up and taking them to the store office, demanding that the manager open the store safe while the other employees were kept face-down on the floor. In some robberies, the robbers were limited to taking cash from cash registers. They also took the wallets and cell phones of several employees during the robberies, and then fled.
Joyner was convicted of robbing a CVS in Marietta on May 27, 2015; a CVS in Atlanta on June 4, 2015; and a CVS in Smyrna also on June 4th.
Sturgis joined the robbery crew in mid-June as the driver, and he also went inside the stores before the robberies to scout the target locations. Joyner and Sturgis were convicted of robbing a Walgreens in Smyrna on June 16, 2015; a Walgreens in Marietta on June 18, 2015; and a CVS also in Marietta on June 19, 2015.
Joyner and Sturgis were also convicted on September 27, 2016, of aiding and abetting each other in the brandishing of firearms in the robberies on June 16, 18, and 19, 2015. FBI agents and task force officers arrested Joyner and Sturgis outside of another CVS in Marietta on June 24, 2015.
Sentencing for Lloyd Nathaniel Joyner, a/k/a Zulu, a/k/a Zu, 25, of College Park, Ga., and Dave Montonio Sturgis, Jr., 25, of College Park, Ga., has not yet been scheduled.
This case was investigated by the Federal Bureau of Investigation, the Georgia Bureau of Investigation, and the Lawrenceville, Smyrna, Marietta, and Cobb County police departments.
Assistant U.S. Attorneys Mary Webb and William Traynor are prosecuting the case.
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
Cleveland man faces fentanyl, heroin, firearms chargesRead the Press Release
A Cleveland man was indicted in federal court for possessing with intent to distribute heroin, fentanyl and cocaine, as well as illegally operating a drug house and having a firearm, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Kristopher L. Courtney, 39, was named in the five-count indictment.
Courtney possessed fentanyl, heroin and cocaine on Sept. 2, with the purpose of the distributing the drugs. He also possessed a Mossberg 20-gauge shotgun despite numerous felony convictions which prohibited from having a firearm. He also controlled 2973 East 130th Street in Cleveland for the purpose of distributing heroin, fentanyl and cocaine, according to the indictment.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
This case is being prosecuted by Assistant U.S. Attorney Vasile Katsaros following an investigation by Homeland Security Investigations.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Chicago Futures Trader Charged with Causing $13 Million in Losses from Fraudulent Trading SchemeRead the Press Release
CHICAGO — A federal grand jury in Chicago has indicted a futures trader for allegedly causing $13 million in losses in a fraud scheme that led to the collapse of his trading firm.
THOMAS LINDSTROM used deep out-of-the-money options on ten-year Treasury Note futures to make it fraudulently appear that his trading at Chicago-based Rock Capital Markets LLC was profitable, thereby obtaining greater financial compensation for himself, according to the indictment. His fraud scheme caused a loss of at least $13 million and led to the collapse of Rock Capital, the indictment states. Over a six-month period in 2014 and 2015, Lindstrom obtained compensation of $285,000, the indictment states.
The eight-count indictment was returned yesterday in U.S. District Court in Chicago. It charges Lindstrom, 48, of Winnetka, with four counts of commodities fraud and four counts of wire fraud. U.S. District Judge Harry D. Leinenweber scheduled arraignment for Oct. 4, 2016, at 9:45 a.m.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Michael J. Anderson, Special Agent in Charge of the Chicago office of the Federal Bureau of Investigation. The Commodity Futures Trading Commission, which today filed a civil enforcement lawsuit against Lindstrom, assisted in the investigation. The CFTC complaint seeks injunctive and other equitable relief, as well as civil monetary penalties under the Commodity Exchange Act.
A tick is the minimum price increment at which an option on a futures contract could trade. Prior to 2016, the Chicago Board of Trade set the minimum settlement value of all options on futures contracts at one tick, even if the actual value of the option was considerably less. For options on ten-year Treasury Note futures contracts, one tick was approximately $15.63.
According to the charges, Lindstrom acquired hundreds of thousands of deep out-of-the-money options on ten-year Treasury Note futures, and on certain occasions he used spread transactions to pay effectively less than one tick apiece. Lindstrom made the trades knowing that these options would likely expire worthless – resulting in losses – but would temporarily appear to have substantial value in his trading account because the minimum settlement value was one tick, according to the indictment.
Lindstrom concealed the scheme by telling Rock Capital’s owner that the options were profitable, when in reality Lindstrom’s trading was causing substantial losses, the indictment states.
The public is reminded that an indictment is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. Each count of commodities fraud is punishable by up to 25 years in prison, while the wire fraud counts each carry a maximum sentence of 20 years. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory U.S. Sentencing Guidelines.
The case is being prosecuted by the Securities and Commodities Fraud Section of the U.S. Attorney’s Office in Chicago. The government is represented by Assistant U.S. Attorney Sunil Harjani and Special Assistant U.S. Attorney Lindsey Evans.
IndictmentChemoil Agrees to Pay Civil Penalty of $27 Million and to Retire a Total of More Than $71 Million in Credits from Renewable Fuels Market Under Settlement with United StatesRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) and today announced a settlement with Chemoil Corporation that requires the company to retire 65 million renewable fuel credits to resolve alleged violations of the Renewable Fuel Standard (RFS) program. The current market value of the credits -- along with an additional 7.7 million renewable identification numbers (RINs) already retired by Chemoil in the lead up to this settlement -- is more than $71 million. Chemoil will also pay a $27 million civil penalty under the settlement, the largest in the history of the EPA’s fuel programs.
The Department of Justice and EPA allege that Chemoil exported at least 48.5 million gallons of biodiesel from 2011 to 2013, but failed to retire the more than 72 million RINs that were generated for the exported fuel. RINs are credits created when a company produces or imports renewable fuel and can be traded or sold to refiners and fuel importers or exporters to help them comply with the RFS program requirements.
The RFS program requires exporters to retire RINs for renewable fuel like biodiesel, because the fuel exported is no longer available for blending into United States’ fossil fuel supply and, for that reason, cannot be used to meet the renewable fuel volume mandate established by Congress. If exporters fail to retire the appropriate number and type of RINs associated with the exported fuel, as the United States alleges happened here, it artificially inflates the volume of renewable fuel available for blending in this country and the number of RINs available to meet the renewable fuel volume mandate. Ensuring exporters comply with the regulations for RIN retirement is critical to the proper functioning and integrity of the RFS program.
“Congress adopted the Renewable Fuel Standards program to achieve significant greenhouse gas emissions reductions, reduce the nation’s dependence on foreign oil, and grow our domestic renewable energy industry,” said Assistant Attorney John C. Cruden for the Department of Justice Environment and Natural Resources Division. “By ensuring a level playing field within the industry through vigorous compliance monitoring and enforcement, we help ensure that these important Congressional goals are met.”
“This settlement delivers on the greenhouse gas emissions reduction goals that Congress envisioned for the Renewable Fuel Standard,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “It’s vital that companies retire renewable fuel credits when exporting fuel abroad. Upholding this requirement is a key way EPA is working to maintain program integrity and a level playing field for companies that follow the law.”
EPA discovered the alleged violations as a result of tips from RFS program participants.
EPA is responsible for developing and implementing regulations to ensure that transportation fuel sold in the United States contains a minimum volume of renewable fuel. The RFS program - created under the Energy Policy Act of 2005 - was developed in collaboration with refiners, renewable fuel producers and many other stakeholders. It was expanded and strengthened under the Energy Independence and Security Act of 2007, which was designed to encourage the blending of renewable fuels into our nation’s motor vehicle fuel supply to reduce the nation’s dependence on foreign oil, help grow the nation’s renewable energy industry and achieve greenhouse gas reductions.
Chemoil is based in San Francisco, California, and sells marine, aviation, diesel, renewable fuels and residual oil products.
The proposed settlement, lodged today in the U.S. District Court for the Northern District of California, is subject to a 30-day public comment period and final court approval.
For more information on the settlement and for information on how to submit a comment, visit: https://www.epa.gov/enforcement/chemoil-corporation-renewable-fuel-standard-settlement.
Cheektowaga Man Pleads Guilty to Child Pornography ChargesRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Alexander Burton Blake, 26, of Cheektowaga, NY, pleaded guilty to distributing and possessing child pornography involving prepubescent children, before Chief U.S. District Judge Frank P. Geraci. The charges carry a maximum sentence of 20 years in prison and a fine of $250,000.
Assistant U.S. Attorney, Aaron J. Mango, who is handling the case, stated that on October 16, 2015, a search warrant was executed at the defendant’s residence following an investigation that the defendant was utilizing a peer-to-peer network to distribute child pornography. Several items of computer equipment was seized from the residence. A forensic analysis revealed in excess of 60,000 images of child pornography and 23 videos of child pornography.
The plea is the culmination of an investigation by Special Agents of the Federal Bureau of Investigation, under the direction of Adam Cohen, Special Agent in Charge along with the City of Buffalo Police Department, under the direction of Commissioner Daniel Derenda.
Sentencing is scheduled for January 26, 2017 at 10:30 a.m. before Judge Geraci.Bureau of Prisons inmate convicted, sentenced on assault chargeRead the Press Release
CLARKSBURG, WEST VIRGINIA – Thomas Cuthbertson, 25, formerly incarcerated at the United States Penitentiary Hazelton, was convicted and sentenced to 15 months today for assaulting a correctional officer, U.S. Attorney William J. Ihlenfeld, II, announced.
In October 2014, Cuthbertson intentionally assaulted a correctional officer with the intent to inflict bodily harm. He pled guilty today to one count of “Assault of a Correctional Officer Resulting in Injury.”
Assistant U.S. Attorney Sarah W. Montoro prosecuted the case on behalf of the government. The Federal Bureau of Prisons Special Investigations Services Unit investigated.
U.S. District Judge Irene M. Keeley presided.
Buffalo Man Pleads Guilty to Drug ChargeRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Ronnie Ortiz, 40, of Buffalo, NY, pleaded guilty to conspiracy to possess with intent to distribute cocaine before U.S. District Judge Lawrence J. Vilardo. The charge carries a maximum penalty of 20 years and a $1,000,000.00 fine.
Assistant U.S. Attorney Patricia Astorga who is handling the case, stated that on July 18, 2016, the United States Postal Inspection Service obtained a federal search warrant for a postal parcel that was addressed to 14 Warren Ave in Buffalo that was mailed from Canovanas, Puerto Rico. The search revealed that the parcel contained approximately nine ounces of cocaine.
On July 20, 2016, an undercover U.S. Postal Inspector, acting as a U.S. Postal Service Mail Carrier, delivered the parcel which had been replaced with sham and an electronic transmitter that would alert agents to the opening of the parcel. The U.S. Postal Inspector was met by Ortiz who signed for the parcel and took it into the residence. Minutes later, the electronic transmitter indicated the parcel had been opened. Agents went into the residence and arrested the defendant.
The plea is the culmination of an investigation by the United States Postal Inspection Service, under the direction of Inspector in Charge Shelly Binkowski, and the Drug Enforcement Administration, under the direction of Special Agent in Charge James J. Hunt, New York Field Division.
Sentencing is scheduled for January 10, 2017 at 10:00 a.m. before Judge Vilardo.Branch Banking & Trust Company, N.A. agrees to pay $83 Million to Resolve False Claims Act Liability arising from FHA-Insured Mortgage LendingRead the Press Release
ATLANTA – Branch, Banking & Trust Company (“BB&T”) has agreed to pay the United States $83 million to resolve allegations that it violated the False Claims Act by falsely certifying that it had complied with critical underwriting and quality control (“QC”) requirements when originating “FHA loans” – i.e., loans insured by the Federal Housing Administration (“FHA”), which is part of the U.S. Department of Housing and Urban Development (“HUD”). In truth, BB&T, over an extended period of time, had failed to comply with key HUD underwriting and QC requirements. HUD only extends insurance to loans where the borrower is creditworthy and demonstrates the ability to repay the loan based upon the FHA’s underwriting standards.
“While profiting from the FHA program, BB&T exposed the taxpayers to losses by failing to comply with HUD guidelines, and then took the additional step of falsely certifying that it had complied with such guidelines” said John A. Horn, the U.S. Attorney for the Northern District of Georgia. “This settlement recovers substantial losses caused by BB&T’s decision to place its own profits above its commitment to adhere to HUD underwriting and quality control requirements.”
“The FHA program depends on Direct Endorsement Lenders endorsing only eligible loans for FHA mortgage insurance, and complying with HUD’s quality control requirements,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Lenders like BB&T that participate in the FHA program must make adherence to the FHA program rules a priority. The Department has and will continue to hold accountable those lenders that prioritize profits over program compliance.”
“Lenders are required to apply FHA’s standards to each mortgage loan we insure and to honestly certify to us that they’ve done so,” said Associate General Counsel Dane M. Narode for HUD’s Program Enforcement. “Today’s settlement reminds all lenders that sound underwriting is the bedrock of a healthy housing market and the financial futures of homeowners we support.”
“Today’s settlement agreement resolves allegations that BB&T, entrusted by American taxpayers to comply with FHA regulations, failed to conform with certain FHA origination, underwriting and quality control requirements,” said Inspector General David A. Montoya for HUD. “This settlement demonstrates a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants.”
Between January 2006 and January 2012, BB&T participated in the FHA insurance program as a Direct Endorsement Lender (“DE Lender”). As a DE Lender, BB&T had the authority to originate, underwrite, and endorse mortgages for FHA insurance. If a DE Lender such as BB&T approves a mortgage loan for FHA insurance, and the loan later defaults, the holder of the loan may submit an insurance claim to the Government to recover its losses on the loan.
Under the DE Program, the Government does not review a loan before it is endorsed for FHA insurance. Instead, FHA and HUD rely upon DE Lenders to follow program rules, which require that a lender: (1) adhere to HUD underwriting guidelines; (2) maintain a QC program that can identify and correct deficiencies in their underwriting practices; and (3) self-report to HUD materially deficient loans identified by their QC program, or otherwise.
The settlement announced today resolves allegations that BB&T failed to comply with FHA origination, underwriting, and QC requirements. As part of the settlement, BB&T admitted to the following facts:
- Between January 1, 2006 and September 30, 2014, BB&T certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements and did not adhere to HUD’s QC requirements. BB&T significantly increased its loan volume between 2006 and 2009 – more than doubling all loan originations, while increasing the number of FHA insured loans six fold. This increase in volume was accompanied by an increase in the number of loans internally rated “Serious-Marketability” – the most significant BB&T QC defect rating, and a defect that rendered a loan ineligible for FHA insurance. Between 2007 and 2011, the percentage of loans underwritten by BB&T each year that were rated Serious-Marketability by its QC department always exceeded 30 percent, and exceeded as much as 50 percent in 2010 and 2011. BB&T nevertheless endorsed many of these loans for FHA insurance and, if they defaulted, sought payment from HUD for the insured loans.
- The monthly reviews and reports that BB&T’s QC department shared with management alerted BB&T to deficiencies in many of its FHA loans. A 2010 BB&T internal memorandum stated that “increased volume of FHA requests and changes to regulatory requirements have resulted in origination, processing and underwriting errors. Some employees are not applying current and accurate FHA guidelines.” A proposal to improve BB&T’s underwriting of FHA loans with additional training as well as a testing and certification process for underwriters was prepared in 2010, but neither recommendation was implemented until after 2014.
- Additionally, between 2006 and 2014, BB&T’s QC process did not satisfy certain FHA requirements. Although loan volume more than doubled from 2006 to 2009, the number of QC employees remained the same. The QC department requested additional employees in 2009, yet new employees were not added until 2013. Because BB&T’s QC department did not have adequate staff, it instituted a cap on the number of loans it reviewed. As a result, between 2009 and 2014, the QC department did not always review the number of loans necessary to comply with HUD’s loan review sampling requirements. Additionally, BB&T did not perform reviews of its lender branch offices, as required by HUD, before beginning the reviews again in late 2014.
- Finally, since at least 2006, HUD has required self-reporting. However, despite internal ratings showing that 30 percent or more of the loans underwritten by BB&T between 2007 and 2011 had Serious-Marketability findings, and were thus ineligible for FHA insurance, BB&T did not self-report any loans containing material underwriting defects until 2013.
BB&T’s conduct caused FHA to insure hundreds of loans that were not eligible for insurance and, as a result, FHA suffered substantial losses when it later paid insurance claims on those loans.
Assistant United States Attorneys David A. O’Neal and Paris A. Wynn handled this matter for the U.S. Attorney’s Office.
The investigation of the allegations in the Government’s complaint was a coordinated effort between the Civil Division of the Department of Justice, the U.S. Attorney’s Office for the Northern District of Georgia, HUD, and HUD’s Office of Inspector General. The claims asserted against BB&T are allegations only, and there has been no determination of liability.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Branch Banking & Trust Company Agrees to Pay $83 Million to Resolve Alleged False Claims Act Liability Arising from FHA-Insured Mortgage LendingRead the Press Release
Branch Banking & Trust Company (BB&T) has agreed to pay the United States $83 million to resolve allegations that it 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. BB&T is headquartered in Winston-Salem, North Carolina.
“The FHA program depends on Direct Endorsement Lenders endorsing only eligible loans for FHA mortgage insurance, and complying with HUD’s quality control requirements,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Lenders like BB&T that participate in the FHA program must make adherence to the FHA program rules a priority. The Department has and will continue to hold accountable those lenders that prioritize profits over program compliance.”
“While profiting from the FHA program, BB&T exposed the taxpayers to losses by failing to comply with HUD guidelines, and then took the additional step of falsely certifying that it had complied with such guidelines,” said U.S. Attorney John Horn of the Northern District of Georgia. “This settlement recovers substantial losses caused by BB&T’s decision to place its own profits above its commitment to adhere to HUD underwriting and quality control requirements.”
Since at least January 2006, BB&T 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.
The settlement announced today resolves allegations that BB&T failed to comply with certain FHA origination, underwriting and quality control requirements. As part of the settlement, BB&T admitted to the following facts: Between Jan. 1, 2006 and Sept. 30, 2014, it certified for FHA insurance mortgage loans that did not meet HUD underwriting requirements and did not adhere to FHA’s quality control requirements. BB&T significantly increased its loan volume between 2006 and 2009—more than doubling all loan originations, while increasing the number of FHA insured loans six fold. This increase in volume was accompanied by an increase in the number of loans internally rated “Serious-Marketability” by BB&T’s quality control department —the most significant quality control defect rating and a defect that rendered a loan ineligible for FHA insurance. Between 2007 and 2011, the percentage of loans underwritten by BB&T each year that were rated Serious-Marketability by its quality control department always exceeded 30 percent, and exceeded as much as 50 percent in 2010 and 2011. BB&T nevertheless endorsed many of these loans for FHA insurance and, if they defaulted, sought payment from HUD for the insured loans.
The monthly reviews and reports that BB&T’s quality control department shared with management alerted BB&T to deficiencies in many of its FHA loans. A 2010 internal memorandum at BB&T stated that “increased volume of FHA requests and changes to regulatory requirements have resulted in origination, processing and underwriting errors. Some employees are not applying current and accurate FHA guidelines.” A proposal to improve BB&T’s underwriting of FHA loans with additional training as well as a testing and certification process for underwriters was prepared in 2010, but neither recommendation was implemented until after 2014.
Additionally, between 2006 and 2014, BB&T’s quality control process did not satisfy certain FHA requirements. Although loan volume more than doubled from 2006 to 2009, the number of quality control employees remained the same. The quality control department requested additional employees in 2009, yet new employees were not added until 2013. Because BB&T’s quality control department did not have adequate staff, it instituted a cap on the number of loans it reviewed. As a result, between 2009 and 2014, the quality control department did not always review the number of loans necessary to comply with HUD’s loan review sampling requirements. Additionally, BB&T did not perform reviews of its lender branch offices, as required by HUD, before beginning the reviews again in late 2014.
Finally, since at least 2006, HUD has required self-reporting. However, despite internal ratings showing that 30 percent or more of the loans underwritten by BB&T between 2007 and 2011 had Serious-Marketability findings, and were thus ineligible for FHA insurance, BB&T did not self-report any loans containing material underwriting defects until 2013.
As a result of BB&T’s conduct and omissions, HUD insured loans endorsed by BB&T 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.
“Lenders are required to apply FHA’s standards to each mortgage loan we insure and to honestly certify to us that they’ve done so,” said Associate General Counsel Dane M. Narode for HUD’s Program Enforcement. “Today’s settlement reminds all lenders that sound underwriting is the bedrock of a healthy housing market and the financial futures of homeowners we support.”
“Today’s settlement agreement resolves allegations that BB&T, entrusted by American taxpayers to comply with FHA regulations, failed to conform with certain FHA origination, underwriting and quality control requirements,” said Inspector General David A. Montoya for HUD. “This settlement demonstrates a continued commitment to address the failures and halt the business practices that potentially harm the FHA program and its participants.”
The settlement was 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 Northern District of Georgia. The claims asserted against BB&T are allegations only, and there has been no determination of liability.
Barrio Azteca Gang Associate Sentenced to 20 Years in Prison for Participating in Racketeering ConspiracyRead the Press Release
A Barrio Azteca (BA) gang associate was sentenced today to 240 months in prison for his participation in a racketeering conspiracy and drug trafficking offenses.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Richard L. Durbin Jr. for the Western District of Texas, Special Agent in Charge Douglas Lindquist of the FBI’s El Paso, Texas, Office and Special Agent in Charge Will Glaspy of the U.S. Drug Enforcement Administration (DEA) El Paso Division made the announcement.
Luis Humberto Hernandez Celis, aka Pac, 32, of El Paso, was sentenced before U.S. District Judge Kathleen Cardone of the Western District of Texas for racketeering conspiracy; conspiracy to distribute and possess with intent to distribute controlled substances; and conspiracy to import heroin, cocaine and marijuana.
According to court documents and information presented in court throughout this case, the BA gang began operating in the late 1980s as a violent prison gang and has expanded into a transnational criminal organization based in West Texas; Juarez, Mexico; and throughout state and federal prisons in the United States and Mexico. The gang relies on a militaristic command structure that includes “captains,” “lieutenants,” “sergeants” and “soldiers” to maintain power and enriches members and associates through drug trafficking, money laundering, extortion, intimidation, violence, threats of violence and murder.
According to court documents, since Jan. 1, 2003, members and associates of the BA have engaged in a host of such criminal activity, including the March 13, 2010, murders in Juarez of U.S. consulate employee Leslie Ann Enriquez Catton, her husband Arthur Redelfs and Jorge Alberto Salcido Ceniceros, the husband of a U.S. consulate employee.
According to admissions made in connection with Hernandez Celis’s plea agreement, BA generates profits by importing heroin, cocaine and marijuana into the United States from Mexico. Hernandez Celis admitted that gang members and associates also allegedly charge a “street tax” or “cuota” on businesses and criminals operating on their turf. These profits are used to support gang members in prison by funneling money into prison commissary accounts of gang leaders and to pay for defense lawyers or fines, and are allegedly reinvested into the organization to purchase drugs, guns and ammunition.
Beginning in or around 2009, Hernandez Celis was an associate of the BA, during which time he used violence or threats of violence to advance BA criminal activities, including stealing cars, managing drug distribution points and collecting cuotas for a BA leader in Juarez, he admitted.
Thirty-five members and associates of the BA gang, including Hernandez Celis, were charged in a third superseding indictment unsealed in March 2011 with various counts of racketeering, murder, drug offenses, money laundering and obstruction of justice. Of the 35 defendants charged, 33 have been apprehended, of whom 25 have pleaded guilty, one has been convicted at trial and one committed suicide while imprisoned during his trial. Hernandez Celis was among three defendants, including Ricardo Valles De La Rosa, aka Chino, and Alberto Nunez Payan, aka Fresa, recently extradited from Mexico. Trial is currently scheduled for Feb. 6, 2017. Three other defendants are pending extradition from Mexico. U.S. and Mexican law enforcement are actively seeking to apprehend the two remaining fugitives in this case: Luis Mendez and Eduardo Ravelo, an FBI Top 10 Most Wanted Fugitive.
The FBI’s El Paso Field Office and Albuquerque Field Office (Las Cruces Resident Agency); DEA Juarez; and DEA El Paso investigated the case. The Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration and Customs Enforcement; U.S. Marshals Service; U.S. Customs and Border Protection; Federal Bureau of Prisons; U.S. Diplomatic Security Service; Texas Department of Public Safety; Texas Department of Criminal Justice; El Paso Police Department; El Paso County Sheriff’s Office; El Paso Independent School District Police Department; Texas Alcohol and Beverage Commission; New Mexico State Police; Dona Ana County, New Mexico, Sheriff’s Office; Las Cruces, New Mexico, Police Department; Southern New Mexico Correctional Facility; and Otero County Prison Facility New Mexico provided special assistance.
Trial Attorney Joseph A. Cooley of the Criminal Division’s Organized Crime and Gang Section, Trial Attorney Jay Bauer of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney John Gibson of the Western District of Texas-El Paso Division are prosecuting the case. The Criminal Division’s Offices of International Affairs and Enforcement Operations provided valuable assistance.
Bangor Man Sentenced to over 20 Years for Sexual Exploitation of a MinorRead the Press Release
Contact: Andrew McCormack
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Andy Quinn Goodall, 29, most recently of Bangor, was sentenced today in U.S. District Court by Judge John A. Woodcock, Jr. to 20 years and 10 months in prison to be followed by a lifetime of supervised release for sexual exploitation of a minor. The defendant pled guilty to the charge on January 29, 2016.
According to court records and proceedings, the defendant took sexually explicit images of two prepubescent minors, uploaded them to a foreign website, and provided links to the images in emails he sent to others. In addition, the defendant possessed hundreds of images and dozens of videos of child pornography. While announcing his sentence, Judge Woodcock stated: “There is a giant step between viewing images and producing them. … The defendant was in a position of trust. He was babysitting the victims. He consciously and intentionally violated this trust. … The role of a judge in a case like this is to protect the people who can’t protect themselves.”
The investigation was conducted jointly by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Bangor Police Department, and the Penobscot County Sheriff’s Office.
Austin I.S.D. Maintenance Worker and Wife Sentenced to Federal Prison for Undocumented Alien Smuggling SchemeRead the Press Release
In Austin this morning 54-year-old San Juana Valdez Menchaca and her husband, 57-year-old Julian Perez Perez, were sentenced to 70 months and 33 months in federal prison, respectively, for conspiring to smuggle more than 500 undocumented aliens into the United States announced United States Attorney Richard L. Durbin, Jr., Homeland Security Investigations (HSI) Special Agent in Charge Shane Folden in San Antonio, and Austin Police Chief Art Acevedo.
In addition to the prison term, United States District Judge Sam Sparks ordered that the defendants pay a $1.173 million money judgment representing the total amount of criminal proceeds obtained in this case as well as $10,000 in fines ($5,000 for each defendant). Judge Sparks also ordered that the defendants forfeit to the Government their Cedar Creek, TX, residence; approximately $106,390 in cash seized on the day of their arrest; and, approximately $71,000 located in ten bank accounts in an effort to satisfy the money judgment. Judge Sparks also ordered that Valdez Menchaca pay a $2,709 assessment for the cost of her legal representation because she initially told the Court she was indigent. The defendants will also be placed on supervised release for a period of three years after completing their prison terms.
On July 7, 2016, the defendants pleaded guilty to one count of conspiracy to transport undocumented aliens. By pleading guilty, the defendants admitted that for approximately ten years ending in April 2016, they conspired to smuggle and transport undocumented aliens for financial gain. According to court records, the aliens typically crossed into the United States near Laredo, TX, and were transported to the Austin area, before reaching final destinations in Alabama, Kentucky, Virginia, North Carolina, and Florida.
Court records also reflect that the defendants used the U.S. banking system to collect human smuggling fees. Family members of smuggled aliens would go to geographically distant branches of a bank and deposit human smuggling payments directly into “funnel accounts” controlled by the defendants. The defendants retained their portion of the smuggling fees and sent the remainder to co-conspirators in Mexico.
“Homeland Security Investigations special agents often investigate complex financial schemes in order to disrupt and dismantle the operations of transnational criminal organizations,” said Shane Folden, special agent in charge, HSI San Antonio. “These investigations deprive the criminal organizations from enjoying the benefits of the illicit proceeds, and prevent them from furthering the ongoing criminal enterprise. We will continue to aggressively investigate fraudulent financial schemes that put in jeopardy the integrity of our financial system.”
Both defendants were arrested on April 26, 2016. Valdez-Menchaca has remained in federal custody ever since. Perez is currently on bond pending notification of a reporting date by the U.S. Bureau of Prisons.
This investigation was conducted by HSI agents and the Austin Police Department. Assistant United States Attorneys Michael C. Galdo and Daniel M. Castillo prosecuted this case on behalf of the Government.
Augusta Woman Pleads Guilty to Theft of MailRead the Press Release
Contact: Jim Moore
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Julie K. Meek, 56, of Augusta, Maine, pleaded guilty today in U.S. District Court to theft of mail.
Court records reveal that Meek was a contract route carrier for the U.S. Postal Service when she stole more than a dozen envelopes from the mail containing checks, cash and gift cards which she used at a gas station, a convenience store and a restaurant, in Orono, Maine. When she was confronted by a police officer and U.S. Postal Service Inspectors, she confessed and surrendered the envelopes she had stolen.
Meek faces up to five years in prison and a $250,000 fine. She will be sentenced after the completion of a presentence investigation report by the U.S. Probation Office.
The investigation was conducted by the U.S. Postal Inspection Service and the Orono Police Department.
Alma Man Sentenced to 30 Months in Federal Prison for Child PornographyRead the Press Release
Fort Smith, Arkansas - Kenneth Elser, United States Attorney for the Western District of Arkansas, announced that Jacob Bowman, age 39, of Alma, Arkansas, was sentenced to 30 months imprisonment followed by five (5) years of supervised release on one count of Knowing Possession of Images of Child Pornography. The sentencing took place before the Honorable Chief Judge P.K. Holmes, III in the United States District Court in Fort Smith.
According to the plea agreement, on April 14, 2015, law enforcement received a cyber-tip from the National Center for Missing and Exploited Children that a particular Dropbox account contained images and videos depicting minors engaging in sexually explicit conduct. The account was found to have been created by Bowman. An examination of his cell phone revealed that the phone contained images of child pornography. Bowman was indicted by a federal grand jury on December 9, 2015 and pleaded guilty on May 12, 2016.
“The children depicted in these images, that were illegally shared, are victimized time and time again,” said Assistant Special Agent in Charge David Shepard with the FBI in Little Rock. “Today’s sentencing illustrates the FBI’s dedication to rooting out child pornography and demonstrates the commitment of the United States Attorney’s Office to prosecute those who distribute child pornography and those affiliated with Project Safe Childhood to locate and apprehend these individuals.”
This case was investigated by the Federal Bureau of Investigations. Assistant United States Attorney Ashleigh Buckley prosecuted the case for the United States.
The 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 their Criminal Division Child Exploitation and Obscenity Sections (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.
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Related court documents may be found on Public Access to Electronic Records Website @www.Pacer.gov
Albuquerque Couple Arrested on Federal Indictment Alleging Prescription Drug Trafficking SchemeRead the Press Release
ALBUQUERQUE – Two residents of Albuquerque, N.M., have been arrested on a federal indictment alleging prescription drug trafficking charges, announced U.S. Attorney Damon P. Martinez, Special Agent in Charge Will R. Glaspy of DEA’s El Paso Division, and Chief Patrick Gallagher of the Santa Fe Police Department (SFPD).
Yvonne Garcia, 54, and Gerald Roberts, 49, were arrested yesterday on a nine-count indictment charging them with participating in a conspiracy to distribute prescription drugs including oxycodone, oxymorphone and alprazolam. The couple made their initial appearances in federal court this morning, and remain in custody pending arraignment and detention hearings scheduled for Friday morning.
According to the indictment, the defendants distributed prescription drugs on eight separate occasions, twice in Santa Fe County and six times in Bernalillo County, N.M., between May 2016 and Sept. 2016. The indictment includes forfeiture provisions requiring Garcia and Roberts to forfeit $15,500, representing proceeds of their alleged drug trafficking scheme. It also seeks forfeiture of three vehicles – 2016 Toyota Camry, a 2016 Toyota Tacoma and a 2013 BMW motorcycle – which allegedly were used by Garcia and Roberts to facilitate their trafficking activities.
If convicted on the charges in the indictment, Garcia and Roberts each face a statutory maximum penalty of 20 years in federal prison. Charges in indictments are merely accusations, and criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
The Tactical Diversion Squad of the DEA in Albuquerque and the SFPD investigated this case. DEA’s Tactical Diversion Squads combine DEA resources with those of federal, state and local law enforcement agencies in an innovative effort to investigate, disrupt and dismantle those suspected of violating the Controlled Substances Act or other appropriate federal, state or local statutes pertaining to the diversion of licit pharmaceutical controlled substances or listed chemicals.
Assistant U.S. Attorneys Shana B. Long and Peter Eicker are prosecuting this case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
28 September 2016
Woman Charged with Theft and Embezzlement from Philadelphia Non-Profit Serving ChildrenRead the Press Release
Sonja McQuillar, 50, of New Castle, Delaware was charged today by Indictment with two counts of theft from a program that received federal funds and one count of making a material false statement, announced United States Attorney Zane David Memeger and Philadelphia Inspector General Amy Kurland.
McQuillar was the Director of Health and Information Management at Northern Children’s Services (NCS), a nonprofit organization that provides mental and behavioral health treatment services to children. One of her responsibilities at NCS was to verify the accuracy of consultants’ invoices and submit them for payment.
McQuillar allegedly caused to be prepared consulting invoices for relatives and personal friends who were never consultants for NCS, and for individuals who were consultants for NCS, but for work they did not perform. According to the indictment, she then forged the names of the recipients to cash the checks. Between roughly December 2002 and April 2014, McQuillar allegedly obtained approximately $607,067 from NCS through embezzlement and theft.
If convicted the defendant faces a maximum possible sentence of 25 years’ imprisonment, a $750,000 fine, three years’ supervised release and $300 special assessment.
“Every nonprofit that receives taxpayer funding accepts a responsibility to give charitably with integrity. These funds were designated to help some of Philadelphia’s children who are most in need,” said Inspector General Amy L. Kurland. “I'm grateful for our federal law enforcement partners for their close cooperation in this investigation.”
The case was initiated by a tip to the Philadelphia Office of the Inspector General and was also investigated by the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorney Michelle Morgan.
Wagoner Man Pleads Guilty to Multiple Firearms ChargesRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that WILLIAM HENRY CRAIG, age 26, of Wagoner, Oklahoma, pled guilty to three counts: POSSESSION OF AN UNREGISTERED DESTRUCTIVE DEVICE and POSSESSION OF AN UNREGISTERED FIREARM, both in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by not more than 10 years imprisonment, up to a $10,000 fine or both and POSSESSION OF FIREARM WITH AN OBLITERATED SERIAL NUMBER, in violation of Title 18, United States Code, Sections 922(k) and 924(a)(1)(B), punishable by not more than 5 years imprisonment, up to a $250,000 fine or both.
The Indictment alleged that on or about April 5, 2016, within the Eastern District of Oklahoma, the defendant, WILLIAM HENRY CRAIG, did knowingly possess a destructive device, known as a cricket device, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
It further alleged that on or about April 5, 2016, within the Eastern District of Oklahoma, the defendant did knowingly possess a CGC (Companhia Brasileira de Cartuchos), Model 151, 20 gauge shotgun, with a barrel of less than 18 inches in length and an overall length of less than 26 inches, not registered to him in the National Firearms Registration Transfer Record and the manufacturer’s serial number had been removed, altered and obliterated.
Charges arose from an investigation by the Wagoner Police Department, the Oklahoma Highway Patrol, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshals Service, pending sentencing.
Assistant United States Attorney Kristin Harrington represented the United States.
Vibra Healthcare to Pay $32.7 Million to Resolve Claims for Medically Unnecessary ServicesRead the Press Release
Vibra Healthcare LLC (Vibra), a national hospital chain headquartered in Mechanicsburg, Pennsylvania, has agreed to $32.7 million, plus interest, to resolve claims that Vibra violated the False Claims Act by billing Medicare for medically unnecessary services, the Department of Justice announced today.
“Medicare beneficiaries are entitled to receive care that is determined by their clinical needs and not the financial interests of healthcare providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions cause false claims for medically unnecessary services to be submitted.”
Vibra operates approximately 36 freestanding long term care hospitals (LTCHs) and inpatient rehabilitation facilities (IRFs) in 18 states. LTCHs provide inpatient hospital services for patients whose medically complex conditions require long hospital stays and programs of care. IRFs are intended for patients needing rehabilitative services that require hospital-level care. The government alleged that between 2006 and 2013, Vibra admitted numerous patients to five of its LTCHs and to one of its IRFs who did not demonstrate signs or symptoms that would qualify them for admission. Moreover, Vibra allegedly extended the stays of its LTCH patients without regard to medical necessity, qualification and/or quality of care. In some instances, Vibra allegedly ignored the recommendations of its own clinicians, who deemed these patients ready for discharge.
“Pursuing and recovering fraudulent billing for unnecessary services is a priority of my office,” stated U.S. Attorney John E. Kuhn Jr. for the Western District of Kentucky. “This significant case against Vibra Healthcare and today’s settlement agreement is but one example of the vigorous work against healthcare fraud taking place in the Western District of Kentucky and across the nation.”
As part of the settlement, Vibra also agreed to enter into a chain-wide corporate integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.
“Medical necessity is fundamental if health providers wish to claim taxpayer funds for medical care,” said Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “OIG is committed to protecting precious Medicare dollars and ensuring that beneficiaries receive quality, necessary long term care.”
Part of the allegations resolved by this settlement were originally filed under the qui tam or whistleblower provisions of the False Claims Act by Sylvia Daniel, a former health information coder at Vibra Hospital of Southeastern Michigan. Daniel filed her suit in the Southern District of Texas, where one of Vibra’s LTCHs was located. Under the False Claims Act, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Daniel will receive at least $4 million.
This settlement illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.7 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal healthcare programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Southern District of Texas in Houston and for the Western District of Kentucky; and the HHS-OIG. The qui tam case is captioned United States ex rel. Daniel v. Vibra Healthcare, LLC, Civil Action No. 10-5099 (S.D. Tex.).
The claims resolved by the settlements are allegations only and there has been no determination of liability.
Van Buren, Arkansas Man Sentenced to 15 Months, $300 Restitution for Possession of Counterfeit ObligationRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that MARK BRANDON WEEKS, age 41, of Van Buren, Arkansas, was sentenced to 15 months of imprisonment and 3 years of supervised release for POSSESSION OF A COUNTERFEIT OBLIGATION, in violation of Title 18, United States Code, Section 472 and 2. The defendant was also ordered to pay restitution in the amount of $300.
The charges are a result of an investigation by the Muskogee Police Department, the Sallisaw Police Department and the United States Secret Service. The defendant was indicted in January, 2016 and pled guilty in April, 2016.
The Indictment alleged that on or about August 10, 2015, in the Eastern District of Oklahoma, the defendant, MARK BRANDON WEEKS, did with intent to defraud, possess counterfeit obligations of the United States, that is: Seventy (70) counterfeit $100 Federal Reserve Notes, which he knew to be falsely made, forged and counterfeited.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing.
Assistant United States Attorney Timothy Hammer represented the United States.
Vibra Healthcare to Pay $32.7 Million to Resolve Claims for Medically Unnecessary ServicesRead the Press Release
WASHINGTON - Vibra Healthcare LLC (Vibra), a national hospital chain headquartered in Mechanicsburg, Pennsylvania, has agreed to $32.7 million, plus interest, to resolve claims that Vibra violated the False Claims Act by billing Medicare for medically unnecessary services, the Department of Justice announced today.
“Medicare beneficiaries are entitled to receive care that is determined by their clinical needs and not the financial interests of healthcare providers,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “All providers of taxpayer-funded federal healthcare services, whether contractors or direct billers, will be held accountable when their actions cause false claims for medically unnecessary services to be submitted.”
Vibra operates approximately 36 freestanding long term care hospitals (LTCHs) and inpatient rehabilitation facilities (IRFs) in 18 states. LTCHs provide inpatient hospital services for patients whose medically complex conditions require long hospital stays and programs of care. IRFs are intended for patients needing rehabilitative services that require hospital-level care. The government alleged that between 2006 and 2013, Vibra admitted numerous patients to five of its LTCHs and to one of its IRFs who did not demonstrate signs or symptoms that would qualify them for admission. Moreover, Vibra allegedly extended the stays of its LTCH patients without regard to medical necessity, qualification and/or quality of care. In some instances, Vibra allegedly ignored the recommendations of its own clinicians, who deemed these patients ready for discharge.
“Pursuing and recovering fraudulent billing for unnecessary services is a priority of my office,” stated U.S. Attorney John E. Kuhn Jr. for the Western District of Kentucky. “This significant case against Vibra Healthcare and today’s settlement agreement is but one example of the vigorous work against healthcare fraud taking place in the Western District of Kentucky and across the nation.”
As part of the settlement, Vibra also agreed to enter into a chain-wide corporate integrity agreement with the Inspector General of the U.S. Department of Health and Human Services.
“Medical necessity is fundamental if health providers wish to claim taxpayer funds for medical care,” said Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG). “OIG is committed to protecting precious Medicare dollars and ensuring that beneficiaries receive quality, necessary long term care.”
Part of the allegations resolved by this settlement were originally filed under the qui tam or whistleblower provisions of the False Claims Act by Sylvia Daniel, a former health information coder at Vibra Hospital of Southeastern Michigan. Daniel filed her suit in the Southern District of Texas, where one of Vibra’s LTCHs was located. Under the False Claims Act, a private party, known as a relator, can file an action on behalf of the United States and receive a portion of the recovery. Daniel will receive at least $4 million.
This settlement illustrates the government’s emphasis on combating healthcare fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $30.7 billion through False Claims Act cases, with more than $18.5 billion of that amount recovered in cases involving fraud against federal healthcare programs.
This matter was handled by the Civil Division’s Commercial Litigation Branch; the U.S. Attorneys’ Offices for the Southern District of Texas in Houston and for the Western District of Kentucky; and the HHS-OIG. The qui tam case is captioned United States ex rel. Daniel v. Vibra Healthcare, LLC, Civil Action No. 10-5099 (S.D. Tex.).
The claims resolved by the settlements are allegations only and there has been no determination of liability.
United States Settles Claim Against Summer Camp That Revoked Admission for Young Camper with Insulin-Dependent DiabetesRead the Press Release
Robert L. Capers, United States Attorney for the Eastern District of New York, announced today a settlement with Camp Treetops, a residential summer camp in Lake Placid, New York, under title III of the Americans With Disabilities Act, 42 U.S.C. §§ 12181- 12189 (ADA). Title III prohibits discrimination against people with disabilities in places of public accommodation, including summer camps. Individuals with insulin-dependent diabetes fall within the protection of the ADA.
The settlement resolves claims made by Wenda Celidon, a resident of Valley Stream, New York, that Camp Treetops revoked its acceptance of her minor daughter, L.F., into its summer camp program and revoked a scholarship it had granted L.F. because she had insulin-dependent diabetes. Ms. Celidon alleged that Camp Treetops initially accepted L.F. into the summer program, but one day before she was scheduled to leave for Camp Treetops, the Camp’s director revoked her admission and scholarship due to her insulin-dependent diabetes.
Under the settlement, Camp Treetops will pay $13,500 to L.F., and adopt a written policy that prohibits discrimination on the basis of disability and creates a process for evaluating requests for reasonable modifications. The Camp will also train its employees and staff regarding the disability discrimination provisions of federal, state, and local civil rights laws, including title III of the ADA.
Under the terms of the settlement, Camp Treetops denies violating L.F.’s rights under the ADA.
“Discrimination against individuals, especially children with disabilities, is unacceptable,” stated United States Attorney Capers. “The ADA requires that such children be given an equal opportunity to attend summer camps, an opportunity that was taken away from the child in this case.”
The matter was handled by Assistant U.S. Attorney Rukhsanah Singh.
United States Attorney Announces National Community Policing Week “Justice Forum” at Jackson State UniversityRead the Press Release
Jackson, Miss. —The United States Attorney’s Office for the Southern District of Mississippi, Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), Drug Enforcement Administration (DEA), Federal Bureau of Investigation (FBI), United States Marshals Service (USMS), Hinds County Sheriff’s Department (HCSO), Jackson Police Department (JPD), Jackson State University National Pan Hellenic Council (NPHC), along with Jackson State University Department of Criminal Justice, would like to invite the community and local news media to attend the National Community Policing Week "Justice Forum" entitled: "Beyond the Badge: Breaking Barriers and Building Bridges."
The United States Department of Justice has designated October 3rd-7th as National Community Policing Week. In support of this initiative, the United States Attorney’s Office for the Southern District of Mississippi has partnered with local and federal law enforcement agencies and Jackson State University to host a two-part event focusing on Law Enforcement and Community relations.
The community is strongly encouraged to attend this event. Only through these efforts can we gain mutual understanding between law enforcement and the community that will help to make our neighborhoods safer, stronger, and more united. The event is free and open to the public.
United States Attorney Gregory K. Davis, Jackson Police Chief Lee Vance, and Hinds County Sheriff Victor Mason, along with representatives from ATF, DEA, FBI, USMS and JSU will participate.
WHO: United States Attorney’s Office, ATF, DEA, FBI, USMS, JPD, HCSO, JSU NPHC
and JSU Dept. of Criminal Justice
WHAT: National Community Policing Week Justice Forum
WHEN: Monday, October 3, 2016 - 5:00 – 6:30 p.m.
WHERE: Jackson State University Student Center Ballroom - 3rd Floor
U.S. Attorney Files Civil Rights Suit Against Westchester Developer and Obtains Injunction Requiring Complexes Under Construction to Be Fully Accessible to People with DisabilitiesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that the United States has filed a federal civil rights lawsuit against GINSBURG DEVELOPMENT COMPANIES (“GINSBURG DEVELOPMENT”) to require it to remedy conditions at two properties in Rockland County to make them accessible to people with disabilities and to ensure that four properties under construction by GINSBURG DEVELOPMENT in Westchester County will be accessible. In connection with that lawsuit, the United States has obtained a court-ordered preliminary injunction, to which GINSBURG DEVELOPMENT consented. The injunction, which was approved and entered today by U.S. District Judge Nelson S. Román, requires GINSBURG DEVELOPMENT to make four Westchester rental complexes currently under development accessible. The lawsuit will continue with respect to the two remaining Rockland County properties, which have already been fully constructed.
U.S. Attorney Preet Bharara said: “With today’s lawsuit and injunction, we seek to ensure that properties constructed by Ginsburg Development are accessible to those with disabilities, as the law requires. Developers in this District should know that this Office will use all available tools to enforce the FHA’s basic mandate that developers construct residential buildings accessible to people with disabilities.”
The Fair Housing Act’s (“FHA”) accessible design and construction provisions require multifamily housing complexes constructed after January 1993 to have basic features accessible to persons with disabilities. According to the allegations in the Complaint, GINSBURG DEVELOPMENT recently designed and constructed rental complexes that have a number of inaccessible features, including excessively high thresholds interfering with accessible routes into and within individual units, insufficient spaces in bathrooms and kitchens for people in wheelchairs, and doors in both individual units and common areas that are not wide enough to accommodate people in wheelchairs.
The Complaint filed by the United States seeks to require GINSBURG DEVELOPMENT to make retrofits at two completed complexes known as Parkside and Riverside, in Haverstraw, New York, to modify its policies, procedures, and training, and to pay a civil penalty. The lawsuit further seeks compensation for persons who have been victims of the inaccessible conditions at Parkside and Riverside. As explained in a letter filed with the Court on September 26, GINSBURG DEVELOPMENT is in settlement negotiations with the United States to resolve these claims against the two properties that have already been constructed.
The preliminary injunction, entered on September 28, 2016, requires GINSBURG DEVELOPMENT to retain an experienced accessibility consultant as the FHA Reviewer for the four Westchester developments that are still under construction – Saw Mill Lofts, Harbor Square Crossings, River Tides, and 1177 Warburton Avenue. Pursuant to the injunction, GINSBURG DEVELOPMENT must have all its designs analyzed by the FHA Reviewer for accessibility, arrange for the FHA Reviewer to conduct site visits to identify inaccessible conditions resulting from construction decisions, and allow the United States to monitor its development efforts.
The case is being handled by the Office’s Civil Rights Unit. Assistant U.S. Attorneys Li Yu, Natasha Teleanu, Jessica Jean Hu, and Jacob Lillywhite are in charge of the case.
Two Return Preparers Charged with Filing False Tax Returns for their ClientsRead the Press Release
Clients were promised large tax refunds from a fictitious government program
Two return preparers are charged with filing false tax returns for their clients by promising large federal tax refunds through a fictitious United States government program called the “Black Investment Tax.''
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), and Timothy Camus, Deputy Inspector General for Investigations, Treasury Inspector General for Tax Administration (TIGTA), made the announcement.
Shirley Ann Womble and Tiffany Dawn Williams are each charged with one count of conspiracy to defraud the government with respect to claims, in violation of Title 18, United States Code, Section 286. Womble and Williams are also charged with eight counts and two counts, respectively, of filing false claims with the IRS, in violation of Title 18, United States Code, Section 287. If convicted, the defendants face a maximum statutory sentence of ten years’ imprisonment for the conspiracy charge, and a maximum statutory sentence of five years’ imprisonment for each of the false claims charges.
According to the indictment, Womble and Williams worked as independent tax preparers and solicited clients for their tax preparation business by promising large federal tax refunds through a fictitious United States government program called the “Black Investment Tax'' that provided reparations for slavery to African Americans, and/or other government grants. The defendants knew that a government program called the “Black Investment Tax'' did not actually exist.
Womble and Williams prepared and filed false federal income tax returns with false IRS forms for their clients claiming a $40,000 tax credit from the IRS. None of the clients actually provided the defendants with any documentation or other information to support claiming this tax credit based on any investment in the “Black Investment Tax.” The clients who received a refund from the IRS paid Womble and/or Williams approximately $10,000 as a fee for their services.
We encourage anyone who was solicited to receive a refund related to the fictitious “Black Investment Tax,'' that allegedly provided reparations for slavery to African Americans, to contact IRS-CI at (305) 982-5151.
Mr. Ferrer commended the investigative efforts of IRS-CI and TIGTA. The case is being prosecuted by Assistant U.S. Attorney Joseph M. Schuster.
An indictment is merely an allegation and every defendant is presumed innocent unless and until proven guilty in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Two Miami Gardens Residents Charged with Armed RobberiesRead the Press Release
Two male Miami Gardens residents have been arrested and charged by criminal complaint with conspiracy to commit Hobbs Act robberies, Hobbs Act robberies, and brandishing firearms in furtherance of crimes of violence.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), made the announcement.
Javon Antwan Lee and Kimani Mario Brown, both 18, of Miami Gardens, Florida, were charged by complaint with engaging in a conspiracy to lure users of internet-based classified advertisement services to an abandoned house and then rob the victims at gunpoint.
According to court records, Lee and Brown, together with other unknown individuals, engaged in multiple armed robberies beginning as early as February of 2016 and continuing through June of 2016, by posting advertisements on internet classified services for the sale of smartphones or other electronic devices. Victims would arrange to meet with the seller in Miami Gardens to purchase the advertised item only to be attacked at gunpoint by three to four men at a time.
The United States Attorney’s Office and the Federal Bureau of Investigation caution all users of internet-based classified advertisement services to be cautious when purchasing items from individuals they do not know. If members of the community have been victimized in a similar scheme, or have information related to the crimes charged in this complaint, they are encouraged to contact the FBI.
Mr. Ferrer commended the investigative efforts of the FBI and the Miami Gardens Police Department. The case is being prosecuted by Assistant U.S. Attorney Benjamin Widlanski.
A complaint is only an accusation and a defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Twelve people indicted for their roles in Cleveland cocaine conspiracyRead the Press Release
A 30-count indictment was unsealed today, charging a dozen people with conspiring to distribute cocaine throughout Greater Cleveland, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
Indicted are: Darrien Smith, 43, of South Euclid; Brandon McKinnie, aka Fat B, 31, of University Heights; Joseph Martin, aka Joe Caddy, 31, of Cleveland; Tristan Ingram, 28, of Parma; Robert Serina, aka Bobby Champagne, 36, of Cleveland; Wesley Ely, 39, of Parma; Christine Hoenie, aka Cali Miles, 34, of Cleveland; Ben May, 23, of Noblesville, Ind.; Luis Cabrera, 27, of Cleveland; Francisco Sanchez, 34, of Brook Park; Kenneth Paden, aka Chop, 38, of Cleveland; and Clifton Coleman, 55, of South Euclid.
Smith obtained large amounts of cocaine and sold it to McKinnie, who in turn sold it to Martin, who sold the cocaine to Ingram. Ely, Cabrera, Sanchez and Paden purchased cocaine from Ingram for distribution. Hoenie arranged cocaine sales for Serina, according to the indictment.
The conspiracy took place between 2013 and 2014, according to the indictment.
This case is being prosecuted by Assistant U.S. Attorneys Margaret Sweeney and Michelle Baeppler following an investigation by the Northern Ohio Law Enforcement Task Force.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. Defendants are entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Town of Oyster Bay Commissioner Sentenced to 27 Months in Prison for Tax EvasionRead the Press Release
Earlier today in Central Islip, New York, Frederick Ippolito, former Town of Oyster Bay Commissioner of Planning and Development, was sentenced to 27 months’ imprisonment, three years of supervised release, and $548,487.00 in restitution, following his guilty plea on January 26, 2016, to tax evasion. The sentencing proceeding was held before U.S. District Judge Leonard D. Wexler.
The sentence was announced by Robert L. Capers, United States Attorney for the Eastern District of New York, and Shantelle P. Kitchen, Special Agent-in-Charge, Internal Revenue Service-Criminal Investigation, New York (IRS).
In announcing the sentence, United States Attorney Capers stated, “Today’s sentence reinforces that no one is immune from the laws of the United States. The defendant’s position as an influential official within a local municipality did not exempt him from paying his fair share of taxes, just like any other citizen. He has now been held accountable for his actions.” Mr. Capers extended his grateful appreciation to IRS-Criminal Investigation, the agency responsible for leading the government’s investigation.
From 2008 to 2013, Ippolito received over $2 million in consulting fees from Carlo Lizza & Sons Paving, Inc., a company located in Old Bethpage, New York, as well as from a principal of that company. Ippolito evaded taxes on that income by willfully failing to report it on his personal tax returns or the returns of entities he controlled. Ippolito is the President of CAI Associates, LTD, a consulting and snow removal business, and a former officer of CAI Restaurant, Inc., d/b/a Christiano’s, in Syosset, New York.
From 2009 through January 2016, Ippolito served as the Commissioner of Planning and Development for the Town of Oyster Bay (TOB), a municipality in Nassau County, New York. The TOB’s Department of Planning and Development was responsible for the enforcement of all codes, rules, and ordinances pertaining to building and zoning, and supervised the issuance of permits for construction within the TOB. As Commissioner, Ippolito oversaw the TOB Department of Planning and Development’s several divisions, which included, among others, the Building Division, the Code Compliance Bureau, the Division of Administration of Board of Appeals, and the Planning Division. Ippolito’s resignation as a Commissioner was accepted by the TOB following his guilty plea.
The government’s case is being handled by the Office’s Long Island Criminal Section. Assistant United States Attorneys Catherine M. Mirabile and Raymond A. Tierney are in charge of the prosecution.
The Defendant:
FREDERICK IPPOLITO
Age: 77
Syosset, New YorkE.D.N.Y. Docket No. 15-CR-129 (LDW)
Three Individuals Sentenced to Prison in Marriage Fraud ConspiracyRead the Press Release
On September 26, 2016, three individuals were sentenced to prison for their participation in a long-running marriage fraud conspiracy.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), made the announcement.
On July 19, 2016, a Miami federal jury convicted Odalys Marrero, 51, of Kendall, Rolando Mulet, 62, of Kendall and Javier Manejias, 51, of Antioch, Tennessee, of conspiring to defraud the United States. Marrero and Mulet were also convicted of additional counts of unlawfully encouraging an alien to reside in the United States. On September 26, 2016, United States District Court Judge Joan A. Lenard sentenced both Marrero and Mulet above the guideline range, to 48 months’ imprisonment, to be followed by 3 years of supervised release. Judge Lenard sentenced Manejias to 8 months’ imprisonment, to be followed by 1 year of supervised release.
“It is a federal criminal offense to enter into a marriage for the purpose of evading our nation’s immigration rules and regulations,” stated U.S. Attorney Ferrer. “In committing this act, perpetrators exploit the lawful immigration status that the United States has granted. Such conduct thwarts the very objectives of our immigration laws and services, which are predicated on the honesty of the people who apply for immigration benefits. The U.S. Attorney’s Office is grateful for the ongoing efforts of ICE-HSI and USCIS to identify for prosecution those individuals who perpetrate this and other types of immigration fraud.”
“The defendants in this investigation defrauded the government and undermined the integrity of our nation’s legal immigration system” said Mark Selby, special agent in charge of HSI Miami. “These arrests by HSI should send a clear message that we will continue to target those who try to obtain immigration benefits fraudulently.”
“Marriage fraud is a bold violation of our nation’s immigration laws,” said Acting District Director Nicholas Colucci of the USCIS Miami District. “We thank our partners in the U.S. Attorney’s Office and ICE for the opportunity to work together to ensure that these conspirators were brought to justice.”
At trial, the evidence showed that from December 2009 and July 2014, organizers Marrero and Mulet recruited Cuban citizens to enter into fraudulent marriages with undocumented aliens for the purpose of evading the immigration laws of the United States. Manejias was one such Cuban citizen, who, in exchange for receipt of approximately $10,000 cash, participated in the conspiracy by agreeing with Marrero and Mulet to marry a Venezuelan citizen in order to secure her lawful permanent residency in the United States.
The evidence at trial also established that Marrero and Mulet charged these aliens tens of thousands of dollars in cash to arrange the fraudulent marriages, notarize marriage licenses, complete the necessary immigration paperwork, and prepare the co-conspirators for their marriage interviews with United States Citizenship and Immigration Services (“USCIS”). This preparation included Marrero and Mulet directing the couples to conduct a falsified wedding ceremony and submit supporting documents such as joint utility bills and bank statements to make it appear that they couple lived together, though in fact they did not. As part of the scheme, these contrived photos and documents were provided to USCIS.
Mr. Ferrer commended the investigative efforts of ICE-HSI. Mr. Ferrer also recognized USCIS for the significant and valuable support the agency provided the investigation. The case was prosecuted by Assistant United States Attorney Anne P. McNamara and Special Assistant United States Attorney Michele Vigilance.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Columbia Area Residents Sentenced in FHA Mortgage Fraud ConspiracyRead the Press Release
Contact Person: John Potterfield (803) 929-3000
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Robert J. Sellers Jr., age 62, of Columbia, Marlyn Hammett, age 68 of West Columbia, and Amy Wilson, age 51 of Swansea, were sentenced yesterday in federal court in Columbia, for conspiracy to commit loan application fraud, a violation of Title 18, United States Code, Section 371. United States District Judge Margaret B. Seymour of Columbia sentenced Sellers to 12 months and one day imprisonment, 3 years supervised release and ordered him to pay $702,314.47 in restitution to the U.S. Department of Housing and Urban Development (HUD), Federal Housing Administration (FHA). Hammett was sentenced to 6 months imprisonment, 3 years supervised release, and ordered to pay $702,314.47 in restitution to HUD/FHA. Wilson was sentenced to 6 months imprisonment, 3 years supervised release and ordered to pay $144,640 in restitution to HUD/FHA.
Evidence presented at their change of plea hearings established that Sellers Jr., Hammett and Wilson conspired to defraud lending institutions and HUD/FHA by falsifying documents of FHA loan applicants and fraudulently providing the FHA required 3.5% down payment funds for buyers of their properties. The conspirators concealed the origin of the down payment funds and caused false statements on loan applications and other documents to be filed, resulting in dozens of foreclosures.
The case was investigated by agents of The U.S. Department of Housing and Urban Development, Office of Inspector General and the United States Postal Inspection Service. Assistant United States Attorney John Potterfield of the Columbia office prosecuted the case.#####
Tahlequah Man Pleads Guilty to Possession of Unregistered Destructive DeviceRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma announced today that JACOB AUSTIN DUNCAN, age 26, of Tahlequah, Oklahoma, pled guilty to POSSESSION OF UNREGISTERED FIREARM (DESTRUCTIVE DEVICE), in violation of Title 26, United States Code, Sections 5861(d), 5841 and 5871, punishable by not more than 10 years imprisonment, up to a $10,000 fine or both.
The Indictment alleged that on or about June 12, 2016, within the Eastern District of Oklahoma, the defendant, JACOB AUSTIN DUNCAN, did knowingly possess a destructive device, which is a firearm, as defined in Title 26, United States Code, Section 5845, not registered to him in the National Firearms Registration and Transfer Record.
Charges arose from an investigation by the Cherokee County Sheriff’s Office, the Oklahoma High Patrol, the Oklahoma State Bureau of Investigation, and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
The Honorable Steven P. Shreder, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the guilty plea and ordered the completion of a presentence report. Sentencing will be scheduled following its completion. The defendant will remain in the custody of the United States Marshal Service pending sentencing.
Assistant United States Attorney Dean Burris represented the United States.
Syrian Man Affiliated with Syrian Electronic Army Pleads GuiltyRead the Press Release
ALEXANDRIA, Va. – Peter Romar, 37, a Syrian national affiliated with the Syrian Electronic Army (SEA), pleaded guilty today to felony charges of conspiring to receive extortion proceeds and conspiring to unlawfully access computers. Romar was previously extradited from Germany on request of the United States.
“Cybercriminals cannot hide from justice,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “No matter where they are in the world, the United States will vigorously pursue those who commit crimes against U.S. citizens or companies and hold them accountable for their actions.”
“Today’s guilty plea is by the latest international offender who believed that he could operate from abroad, behind the perceived veil of anonymity offered by the Internet, and use computers to threaten the security of our citizens and their property,” said Assistant Attorney General Carlin. “It shows that the Department of Justice and the FBI stand behind their pledge to hold accountable foreign actors who assist in the hacking of U.S. victims.”
“Today, Peter Romar pleaded guilty for his role in conspiring to commit computer intrusions and extort victims on behalf of the Syrian Electronic Army,” said Assistant Director in Charge Paul Abbate. “This case demonstrates the reach and capabilities of the FBI to identify and unmask perpetrators in cyber space and hold them accountable under the law.”
According to the statement of facts filed with the plea agreement, beginning in approximately 2011, co-defendant Firas Dardar, known online as “The Shadow,” and other members of the SEA engaged in a multi-year criminal conspiracy to conduct computer intrusions against perceived detractors of Syrian President Bashar al-Assad, including media entities, the U.S. government, and foreign governments. Dardar remains at large. Beginning in approximately 2013, Romar and Dardar engaged in an extortion scheme that involved hacking online businesses in the United States and elsewhere for personal profit. Court documents further allege that the conspiracy gained unauthorized access to the victims’ computers and then threatened to damage computers, delete data, or sell stolen data unless the victims provided extortion payments to Dardar and/or Romar. If a victim could not make extortion payments to the conspiracy’s Syrian bank accounts due to sanctions targeting Syria, Romar acted as an intermediary in Germany to evade those sanctions.
Romar faces a maximum penalty of five years in prison sentenced on October 21. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; John P. Carlin, Assistant Attorney General for National Security; James Trainor, Assistant Director of the FBI’s Cyber Division; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea before U.S. District Judge Claude M. Hilton.
The case was prosecuted by Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu, Special Assistant U.S. Attorney Brandon L. Van Grack and Trial Attorneys Scott McCulloch and Nathan Charles of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance.
The case was investigated by the FBI’s Washington Field Office, with assistance from the NASA Office of the Inspector General, Department of State Bureau of Diplomatic Security, and other law enforcement agencies.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-00140.
Syrian Electronic Army Hacker Pleads GuiltyRead the Press Release
Peter Romar, 37, a Syrian national affiliated with the Syrian Electronic Army (SEA), pleaded guilty today to felony charges of conspiring to receive extortion proceeds and conspiring to unlawfully access computers. Romar was previously extradited from Germany on request of the U.S.
Assistant Attorney General for National Security John P. Carlin, U.S. Attorney Dana J. Boente for the Eastern District of Virginia, Assistant Director James Trainor of the FBI’s Cyber Division and Assistant Director in Charge Paul M. Abbate of the FBI’s Washington Field Office, made the announcement after the sentencing by U.S. District Judge Claude M. Hilton.
“Today’s guilty plea is by the latest international offender who believed that he could operate from abroad, behind the perceived veil of anonymity offered by the Internet, and use computers to threaten the security of our citizens and their property,” said Assistant Attorney General Carlin. “It shows that the Department of Justice and the FBI stand behind their pledge to hold accountable foreign actors who assist in the hacking of U.S. victims.”
According to the statement of facts filed with the plea agreement, beginning in approximately 2011, co-defendant Firas Dardar, known online as “The Shadow,” and other members of the SEA engaged in a multi-year criminal conspiracy to conduct computer intrusions against perceived detractors of Syrian President Bashar al-Assad, including media entities, the U.S. government and foreign governments. Dardar remains at large.
Beginning in approximately 2013, Romar and Dardar engaged in an extortion scheme that involved hacking online businesses in the U.S. and elsewhere for personal profit. Court documents further allege that the conspiracy gained unauthorized access to the victims’ computers and then threatened to damage computers, delete data, or sell stolen data unless the victims provided extortion payments to Dardar and/or Romar. If a victim could not make extortion payments to the conspiracy’s Syrian bank accounts due to sanctions targeting Syria, Romar acted as an intermediary in Germany to evade those sanctions.
“Cybercriminals cannot hide from justice,” said U.S. Attorney Dana J. Boente for the Eastern District of Virginia. “No matter where they are in the world, the United States will vigorously pursue those who commit crimes against U.S. citizens and hold them accountable for their actions.”
Romar faces a maximum penalty of five years in prison and will be sentenced on October 21. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory Sentencing Guidelines and other statutory factors.
The case was investigated by the FBI’s Washington Field Office, with assistance from the NASA Office of the Inspector General, the Department of State Bureau of Diplomatic Security and other law enforcement agencies.
The case was prosecuted by Assistant U.S. Attorneys Maya D. Song and Jay V. Prabhu and Special Assistant U.S. Attorney Brandon L. Van Grack of the Eastern District of Virginia, and Trial Attorneys Scott McCulloch and Nathan Charles of the National Security Division’s Counterintelligence and Export Control Section. The Justice Department’s Office of International Affairs also provided significant assistance.
Springfield Man Sentenced to 15 Years for Meth ConspiracyRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was sentenced in federal court today for his role in a conspiracy to distribute methamphetamine in Greene, Polk, Christian, Jasper, Laclede and Webster counties.
Jeffrey M. Gardner, 34, of Springfield, was sentenced by U.S. District Judge M. Douglas Harpool to 15 years in federal prison without parole.
On April 14, 2016, Gardner pleaded guilty to participating in a conspiracy to distribute methamphetamine. Gardner admitted that he sold 44 grams of methamphetamine to a confidential law enforcement source for $1,100 on Dec. 20, 2013. Gardner also admitted that he sold 57 grams of methamphetamine to the confidential source for $2,350 on Jan. 9, 2014.
Beginning in 2012, the Drug Enforcement Administration, assisted by other agencies, began investigating a large-scale methamphetamine distribution network in southwest Missouri involving several sources of supply both inside and outside of the state. Co-defendant Kenna Harmon, 37, of Republic, Mo., has pleaded guilty to being the leader of the drug-trafficking conspiracy along with her husband, Daniel Harmon. Daniel Harmon was indicted in the Eastern District of Missouri and pleaded guilty to possessing methamphetamine with the intent to distribute and to being a felon in possession of a firearm.
In total, the Harmon drug-trafficking organization was responsible for the distribution of over 45 kilograms of methamphetamine from June 1, 2013, through Nov. 29, 2014. The Harmons obtained pound amounts of methamphetamine from sources in Kansas City and St. Louis, Mo., and in Oklahoma for distribution in the Springfield, Mo., area.
This case is being prosecuted by Assistant U.S. Attorneys Randall D. Eggert, Nhan D. Nguyen and Cynthia J. Hyde. It was investigated by the Drug Enforcement Administration, IRS-Criminal Investigation, the Missouri State Highway Patrol, the Springfield, Mo., Police Department and Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI).
Springfield Man Indicted for Heroin, Illegal FirearmRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury today for distributing heroin and illegally possessing a firearm.
Michael Sutton, 33, of Springfield, was charged in a three-count indictment returned by a federal grand jury in Springfield.
Today’s indictment alleges that Sutton distributed heroin on April 19, 2016, and again on May 26, 2016.
Sutton is also charged with being a felon in possession of a firearm. According to the indictment, Sutton was in possession of a Colt Night Defender .45-caliber handgun on Aug. 19, 2016. Under federal law, it is illegal for anyone who has been convicted of a felony to be in possession of any firearm or ammunition.
Dickinson cautioned that the charges contained in this indictment are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Special Assistant U.S. Attorney Jody Larison. It was investigated by the Springfield, Mo., Police Department, the Drug Enforcement Administration, the Missouri State Highway Patrol and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Springfield Man Indicted for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Springfield, Mo., man was indicted by a federal grand jury today for receiving and distributing child pornography.
Michael V. Lucas, 31, of Springfield, was charged in an indictment returned by a federal grand jury in Springfield. Today’s indictment replaces a federal criminal complaint that was filed against Lucas on Sept. 21, 2016. Lucas remains in federal custody without bond.
The federal indictment alleges that Lucas received and distributed child pornography from Jan. 1, 2016, to Sept. 22, 2016.
According to an affidavit filed in support of the original criminal complaint, a federal law enforcement agent in Phoenix, Ariz., encountered a person later identified as Lucas among the participants who were live streaming images and videos of child pornography over the Internet on Sept. 15, 2016. During the live streaming session, the affidavit says, Lucas claimed to have molested two 13- and 16-year-old victims and said he would attempt to broadcast a future sexual encounter with the victims.
Lucas was partially visible in a reflection during the live stream, the affidavit says. The federal agent engaged in two additional live streaming sessions that day in which Lucas allegedly participated and continued to share images and videos of child pornography.
On Sept. 19, 2016, according to the affidavit, Lucas was identified by the agent posting messages in a known pedophile group. These messages described the number of videos he possessed as well as advertising his new Skype group. Lucas was live streaming videos of child pornography, the affidavit says, and his reflection could be seen. Lucas also shared two links to a Dropbox account that contained images of child pornography, the affidavit says, and claimed that he was in possession of more than 1,000 videos of child pornography.
On Sept. 20, 2016, Lucas allegedly was live streaming and moved the position of the camera to show his face. Lucas allegedly also displayed a handgun and loaded magazine for the weapon during the course of the stream.
A federal law enforcement agent in Springfield executed a search warrant at Lucas’s residence on Sept. 22, 2016, and Lucas was arrested.
Dickinson cautioned that the charges contained in this indictments is simply an accusation, and not evidence of guilt. Evidence supporting the charge must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Custom Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Spartanburg Man Pleads Guilty to Treasury Check ConspiracyRead the Press Release
Contact Person: Bill Watkins (864) 282-2100
Columbia, South Carolina ---- Acting United States Attorney Beth Drake stated today that Joshua A. Martin, age 29, of Spartanburg, pled guilty yesterday in federal court in Anderson, to conspiracy to pass Treasury checks of the United States bearing falsely made or forged endorsements, a violation of Title 18, United States Code, Section 371. United States District Judge Timothy M. Cain, of Anderson accepted the plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that Martin and co-defendant Brandy Page (who has already pled guilty) obtained Treasury checks by filing false tax returns and from other sources. They then would create a fraudulent power of attorney form giving them authority to cash the check that falsely purported to be executed by the payee listed on the Treasury check. Law enforcement estimates that the duo cashed over $200,000 in Treasury checks in this manner before her scheme was discovered.
Law enforcement discovered the scheme in March 2014 when the Greer Police Department received a complaint from a Georgia man that someone had stolen and cashed his Treasury check in the Greer Wal-Mart. The driver’s license number and date of birth written on the check came back to Page. The Internal Revenue Service assisted local authorities and uncovered the breadth of Page’s scheme.
Ms. Drake stated the maximum penalty Martin can receive is a fine of $250,000 and/or imprisonment for 5 years, plus a special assessment of $100.
The case was investigated by agents of the Greer Police Department and the Internal Revenue Service. Assistant United States Attorney Bill Watkins of the Greenville office handled the case.
#####Sixteen Charged in Lewis County Drug RaidRead the Press Release
SYRACUSE, NEW YORK – Three people were arrested today and charged in federal court with methamphetamine and listed chemical offenses and thirteen others were arrested and charged in Lewis County for state offenses involving the sale and possession of methamphetamine and other illegal drugs, announced United States Attorney Richard S. Hartunian and Lewis County District Attorney Leanne Moser.
Federal Defendants
Eric Campbell, 35, of Port Leyden, New York, Cayla Wujek, 24, of Port Leyden, New York, and Jessica Bowers, 35, a resident of the state of Alabama, are charged with conspiracy to manufacture methamphetamine in Lewis County in November 2015. The three were also each charged individually with possessing pseudoephedrine, a listed chemical, knowing it would be used to manufacture methamphetamine. The charges carry a maximum term of imprisonment of twenty (20) years, a fine of up to $1,000,000, and a term of supervised release of at least three (3) years.
All three federal defendants were arrested today and are scheduled to be arraigned at 2:00 pm in Syracuse, New York, before United States Magistrate Judge David E. Peebles. A federal defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Today’s arrests are part of a joint federal and state investigation into methamphetamine manufacturing and distribution in Lewis County. In addition to the three defendants charged in Federal Court, another thirteen defendants were arrested today in Lewis County on state charges alleging the sale and possession of methamphetamine, methamphetamine precursors, and other illegal drugs.
New York State Defendants
Joshua Alexander, 32, of Copenhagen, New York, is charged with Criminal Sale of a Controlled Substance in the Fourth Degree, Criminal Possession of a Controlled Substance in the Fifth Degree (two counts) and Criminal Possession of a Controlled Substance in the Fifth Degree.
Lucas Boliver, 29, of Lowville, New York, is charged with Criminal Sale of a Controlled Substance in the Third Degree, Criminal Possession of a Controlled Substance in the Third Degree, Criminal Sale of a Controlled Substance in the Fifth Degree, and Criminal Possession of a Controlled Substance in the Fifth Degree.
Sasha Eckelman, 27, of Glenfield, New York, is charged with Criminal Sale of a Controlled Substance in the Third Degree and Criminal Possession of a Controlled Substance in the Third Degree.
Ryan Granger, 36, of Lowville, New York, is charged with Criminal Sale of a Controlled Substance in the Fifth Degree.
Julie Green, 48, of Watertown, New York, is charged with Criminal Sale of a Controlled Substance in the Third Degree (3 counts) and Criminal Possession of a Controlled Substance in the Third Degree (3 counts).
James Lynch, 27, of Old Forge, New York, is charged with Sale of An Imitation Controlled Substance.
Brittany Moshier, 23, of Constableville, New York, is charged with Criminal Sale of a Controlled Substance in the Fifth Degree.
Adam J. Rhoades, 20, of Turin, New York, is charged with Criminal Possession of a Controlled Substance in the Seventh Degree.
Tonia Simmons, 37, of Castorland, New York, is charged with Criminal Sale of a Controlled Substance in the Third Degree and Criminal Possession of a Controlled Substance in the Third Degree, Criminal Sale of a Controlled Substance in the Fifth Degree (2 counts), and Criminal Possession of a Controlled Substance in the Fifth Degree (2 counts).
Dawn Stanley, 39, of Lowville, New York, is charged with Criminal Sale of a Controlled Substance in the Fifth Degree, and Criminal Possession of a Controlled Substance in the Fifth
Degree.
Douglas Tuttle, 21, of Lowville, New York, is charged with Criminal Sale of a Controlled Substance in the Fifth Degree.
Gregory Ward, 31, of Glenfield, New York, is charged with Criminal Sale of a Controlled Substance in the Third Degree and Criminal Possession of a Controlled Substance in the Third Degree.
Kendra Zehr, 20, of Lowville, New York, is charged with Criminal Sale of a Controlled Substance in the Third Degree and Criminal Possession of a Controlled Substance in the Third Degree.
The charges are merely accusations. The defendants are presumed innocent until proven guilty.
U.S. Attorney Hartunian stated, “Today’s arrests represent the latest accomplishments in a longstanding, collaborative effort between my office, the DEA, and our state and local partners to target and eradicate illegal methamphetamine production in the North Country, Central New York, and the Southern Tier. With our actions today, illegal methamphetamine producers, as well as the “smurfs” who provide them with the pseudoephedrine necessary to manufacture this horribly addictive and destructive drug, continue to be on notice that their illegal activity subjects them to prosecution by both state and federal authorities, and I applaud the work done by Lewis County District Attorney Leanne Moser, the New York State Police, the Lewis County Sheriff’s Office, the Village of Lowville Police Department, and the DEA in this regard.”
"These arrests are an example of one part in the fight against drugs and how the cooperation of multiple law enforcement agencies can make a significant impact in eradicating all types of illegally controlled substances from being bought and sold on the streets of our communities. It is a constant and continual battle that police officers and prosecutors fight every day, and today is the result of a long, worthwhile step in this battle,” said Lewis County District Attorney Leanne Moser.
This case is being investigated by the U.S. Drug Enforcement Agency (DEA), the United States Marshals Service, the New York State Police, the Lewis County Sheriff’s Office, the Lowville Village Police Department and the Department of Corrections and Community Supervision. The defendants charged in federal court are being prosecuted by Assistant U.S. Attorney Carl Eurenius. The defendants charged under New York State Law in Lewis County are being prosecuted by Lewis County District Attorney Leanne Moser and Assistant District Attorney Mark Lemieux.
Shippensburg Man Sentenced to 235 Months in Federal Prison for Heroin Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced that Dominick Pugliese, age 55, Shippensburg, PA, was sentenced today by United States District Court Judge Yvette Kane in Harrisburg to 235 months (19.5 years) in federal prison on heroin trafficking and firearms charges.
According to United States Attorney Peter Smith, Pugliese was charged in August 2015 and pled guilty in May 2016 to conspiring with others to distribute at least 100 grams of heroin since August 2014 and possession of a firearm, specifically, a 22 caliber rifle, in relation to a drug trafficking crime. Pugliese admitted to distributing at least one kilogram of heroin that would have resulted in the sale of close to 34,000 individual packets of heroin on the street.
Pugliese’s co-defendants Ryan Naugle, Dominick Burton and Jason Corman are awaiting sentencing. Pugliese’s wife, Delorie Pugliese, is awaiting trial.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
The case was investigated by the Harrisburg Resident Office of the Drug Enforcement Administration, the Pennsylvania State Police, the Franklin County Drug Task Force, the Cumberland County Drug Task Force, and the Cumberland County Probation Office. Prosecution of the case has been assigned to Assistant United States Attorney William A. Behe.
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Serial Armed Robber Sentenced to 18 Years in Federal PrisonRead the Press Release
DALLAS — A Dallas man, Christopher Dewayne James, who admitted that he and his accomplices, David Ricks and Manuel Howard, committed armed robberies in Dallas in August 2015, was sentenced today by U.S. District David C. Godbey to serve 220 months (18 years) in federal prison, announced U.S. Attorney John Parker of the Northern District of Texas.
James, 30, pleaded guilty in May 2016 to four counts of interference with commerce by robbery and one count of discharging a firearm during or in relation to a crime of violence. Co-defendant Ricks, 23, also of Dallas, pleaded guilty in February 2016 to the same offenses and was sentenced in June 2016 to 190 months imprisonment. Co-defendant Howard, 19, also of Dallas, pleaded guilty in January 2016 to the same offenses and was sentenced in April 2016 to 120 months imprisonment.
According to documents filed in the case, the three committed armed robberies in Dallas at the following locations:
August 21, 2015 at 2:00 a.m. 7-Eleven store 11441 Shiloh Road
August 21, 2015 at 4:20 a.m. Shell Station 2313 S. Buckner Blvd.
August 21, 2015 at 5:45 a.m. 7-Eleven store 5804 Abrams Road
August 23, 2015 at 2:40 a.m. 7-Eleven store 11441 Shiloh Road
All of these robberies were committed in essentially the same manner, James would pick the robbery location, drive Ricks and Howard to that location, Ricks and Howard would use loaded firearms to threaten and force the store clerks to comply with their demands, while James stayed in the car as the getaway driver.
During the August 23, 2015 robbery, Ricks and Howard ordered the two store clerks to the back of the store, and to lie on the floor on their stomachs. While in the process of searching the store clerks, Ricks punched one of the clerks in the face and Howard pistol-whipped the same clerk causing the gun to discharge and fire one shot.
The case was investigated by the Federal Bureau of Investigation. Assistant U.S. Attorney Andrew Wirmani is prosecuting the case.
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Sears Home Improvement Products Inc. to Improve Public Health Protections from Lead Pollution During Home RenovationsRead the Press Release
The Department of Justice and the U.S. Environmental Protection Agency (EPA) today announced a settlement with Sears Home Improvement Products Inc. that resolves alleged violations of the federal Lead Renovation, Repair and Painting (RRP) Rule for work performed by Sears’ contractors during home renovation projects across the country. Under the settlement, Sears will implement a comprehensive, corporate-wide program to ensure that the contractors it hires to perform work are properly certified and follow required procedures to prevent exposure to lead dust from home renovation activities. Sears will also pay a $400,000 civil penalty.
“This settlement will help prevent children and workers’ exposure to lead during home renovations in communities across the United States by ensuring that Sears’ contractors are fully aware of their obligations under lead safety regulations,” said Assistant Attorney General John C. Cruden for the Justice Department’s Environment and Natural Resources Division. “Sears is required to implement system wide changes across the corporation which will provide additional protection for consumers and bring the company into compliance with the law.”
“Today’s settlement will have a widespread impact across the home improvement industry, significantly reducing exposure to lead paint dust among children and vulnerable citizens,” said Assistant Administrator Cynthia Giles for EPA’s Office of Enforcement and Compliance Assurance. “In order to contract with Sears, a worker must follow lead safe practices. Contractors will carry this certification to every job they do. EPA expects all renovation companies to ensure their contractors follow these critical laws that protect public health.”
EPA discovered the alleged violations through a review of Sears’ records from projects performed by the company’s renovation contractors at numerous projects in cities across California and in Georgia, Minnesota, Nevada, New York and Wisconsin.
The government also alleged that Sears failed to establish, retain, or provide compliance documentation showing that specific contractors had been certified by EPA, had been properly trained, had used lead-safe work practices, or had performed required post-renovation cleaning.
Under the settlement, Sears will implement a company-wide program to ensure that the contractors it hires to perform work for its customers comply with the RRP Rule during renovations of any child-occupied facilities, such as day-care centers and pre-schools and any housing that was built before 1978. For these projects, Sears must contract with only EPA-certified and state-certified firms and renovators, ensure they maintain certification and ensure they use lead safe work practices checklists during renovations.
Sears will also add a link on its website to EPA’s content on lead-safe work practices and use a company-wide system to actively track the RRP firm and renovator certifications of its contractors. In addition, Sears must suspend any contractor that is not operating in compliance with the RRP Rule, investigate all reports of potential noncompliance and ensure that any violations are corrected and reported to EPA.
EPA reached a similar settlement with home improvement retailer Lowe’s Home Centers in 2014 requiring the company to implement a comprehensive, corporate-wide compliance program at its over 1,700 stores nationwide to ensure that the contractors it hires to perform work minimize lead dust from home renovation activities.
The RRP Rule, which is a part of the federal Toxic Substances Control Act, is intended to ensure that owners and occupants of housing built before 1978, as well as any child-occupied facilities, receive information on lead-based paint hazards before renovations begin, that individuals performing such renovations are properly trained and certified by EPA and follow specific work practices to reduce the potential for lead-based paint exposure. Home improvement companies such as Sears that contract with renovators to perform renovation work for their customers must ensure that those contractors comply with all of the requirements of the RRP Rule.
Lead-based paint was banned in 1978 but still remains in many homes and apartments across the country. Lead dust hazards can occur when lead paint deteriorates or is disrupted during home renovation and remodeling activities. Lead exposure can cause a range of health problems, from behavioral disorders and learning disabilities to seizures and death, putting young children at the greatest risk because their nervous systems are still developing. A blood lead test is the only way to determine if a child has a high lead level. Parents who think their child has been in contact with lead dust should contact their child's health care provider.
Renovation firms that are certified under EPA’s RRP Rule are encouraged to display EPA’s “Lead-Safe” logo on worker’s uniforms, signs, websites and other material, as appropriate. Consumers can protect themselves by looking for the logo before hiring a renovation firm. Consumers can learn more about the RRP Rule and hiring a certified firm by calling the National Lead Information Center at 1 (800) 424-LEAD or visiting www.epa.gov/lead.
Sears Home Improvement Products is part of the Sears Home Services division, within Sears Holdings Corporation. The Home Services division makes over 12 million service and installation calls annually through a network of 6,700 technicians and Sears’ 705 retail stores in the United States. Sears Home Improvement Products is headquartered in Longwood, Florida, does business in 45 states, and maintains 58 district offices.
The consent decree was lodged in the U.S. District Court for the Northern District Court of Illinois. Notice of the lodging of the consent decree will appear in the Federal Register allowing for a 30-day public comment period before the consent decree can be entered by the court as final judgment. To view the consent decree: www.justice.gov/enrd/Consent_Decrees.html.
More information about EPA’s enforcement of the RRP Rule: www.epa.gov/lead/enforcing-lead-laws-and-regulations
Violations of the lead-based paint RRP Rule regulations can be reported to EPA: www.epa.gov/enforcement/report-environmental-violations
Rhode Island Nursing Home Operator and Chief Operating Officer to Pay $2.2 Million to Resolve False Claims AllegationsRead the Press Release
BOSTON – Providence-based skilled nursing facility operator Health Concepts, Ltd., and its Chief Operating Officer, John Gage, have agreed to pay $2.2 million to resolve allegations concerning inflated Medicare claims.
“This settlement is another in a series of resolutions involving inflated Medicare billing at skilled nursing facilities,” said United States Attorney Carmen M. Ortiz. “We continue our efforts to ensure that the provision of care in nursing facilities is based on patients’ clinical needs rather than the financial interests of the companies providing care.”
“Veterans have sacrificed so much for this country and deserve the very best we can provide, especially during elderly care. When VA places these veterans in nursing homes, we expect that standard of care to be met. We will continue to investigate any nursing facility that bases their level of care on financial interests rather than the needs of our country’s veterans. We are proud to have contributed to this multi-agency investigation,” said Jeffrey G. Hughes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office.
The agreement announced today resolves allegations concerning rehabilitation therapy that Massachusetts-based Therapy Resources Management (TRM) purportedly provided at Health Concepts facilities in Rhode Island. The settlement resolves allegations that Health Concepts and Mr. Gage failed to take sufficient steps to prevent TRM from engaging in a pattern and practice of fraudulently inflating the reported amounts of therapy provided to Medicare Part A patients in Health Concepts facilities. Specifically, the facilities submitted bills for therapy that allegedly did not occur as reported, because the therapists were actually conducting initial evaluations when they claimed to be providing therapy, and because the therapists reported therapy time using estimates that often were rounded up from the actual minutes of therapy provided, despite Medicare rules specifically prohibiting the reporting of estimated or rounded numbers of minutes.
“Health Concepts put its financial gain ahead of the care of their patients,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “The FBI will continue to aggressively investigate skilled nursing facilities that inflate their billing and exploit the nation’s healthcare system.”
“Patients and taxpayers rightly expect nothing less than suitable, high-quality health care,” said Phillip M. Coyne, Special Agent in Charge, Office of Inspector General of the U.S. Department of Health and Human Service’s Boston Regional Office. “Providers more concerned with increasing Medicare profits, though, can expect my agency working with law enforcement partners to aggressively investigate and prosecute.”
HHS Hotline. The government encourages anyone with information about the practices described above, or similar practices involving rehabilitation therapy in nursing facilities, to contact the Department of Health and Human Services Office of Inspector General Hotline via telephone, 1-800-HHS-TIPS (1-800-447-8477), or in writing via https://forms.oig.hhs.gov/hotlineoperations/.
The case was handled by Assistant U.S. Attorney Gregg Shapiro of Ortiz’s Affirmative Civil Enforcement Unit.
Residents of the Dominican Republic Charged with Bulk Cash SmugglingRead the Press Release
Two residents of the Dominican Republic charged with bulk cash smuggling.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Mark Selby, Special Agent in Charge, U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (ICE-HSI), Miami Field Office, and Diane J. Sabatino, Director, Office of Field Operations, U.S. Customs and Border Protection, Miami Field Office, made the announcement.
Javier Enrique Santos Castillo, 42, and David Hernandez Guirola, 44, both of the Dominican Republic, were charged in a criminal complaint with conspiracy to commit bulk cash smuggling, in violation of Title 31, United States Code, Section 5332(a)(1) and Title 18, Untied States Code, Section 371. If convicted, the defendants face a statutory maximum sentence of five years in prison and forfeiture of the seized cash. The defendants made their initial appearance yesterday, before U.S. Magistrate Judge Patrick A. White, and are being held without bond pending further court proceedings.
On September 26, 2016, CBP Miami International Airport, Outbound Enforcement Team conducted routine examinations of international passengers boarding American Airlines flight 987, destined for Santo Domingo, Dominican Republic. Federal travel restrictions require passengers traveling abroad, from the United States to report if they are in possession of more than $10,000 in cash. During CBP questioning, passenger Santos Castillo advised he was carrying approximately $1,000. A preliminary search of Santos Castillo’s outer garment of clothing revealed that he was carrying more than the amount disclosed, as he was in possession of eight envelopes, each estimated to contain $5,000 to $10,000. Santos Castillo advised CBP officers that he was carrying the money for a friend, Hernandez Guirola, who when questioned, confirmed the same. The investigation revealed that Hernandez Guirola was traveling domestically to LaGuardia Airport, in New York and had Santos Castillo traveling to the Dominican Republic with the discovered cash. Further examination revealed a total of 17 envelopes in Santos Castillo’s clothing, containing $69,000. An examination of Santos Castillo’s carry-on luggage revealed an additional 13 envelopes, containing $122,340. CBP seized a total of $191,340.
Mr. Ferrer commended the investigation efforts of ICE-HSI and CBP. This case is being prosecuted by Assistant United States Attorney Gregory Schiller.
A complaint is merely an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Removed Alien Pleads Guilty to Re-entering U.S. After DeportationRead the Press Release
PITTSBURGH - An individual found by the U.S. Department of Homeland Security has pleaded guilty in federal court to a charge of Illegal Reentry After Deportation, United States Attorney David J. Hickton announced today.
Glenmore Almando Carey, 45, a citizen of Jamaica, pleaded guilty to one count before Chief United States District Judge Joy Flowers Conti.
In connection with the guilty plea, the court was advised that Carey, an alien, who was previously removed from the United States by U.S. Immigration and Customs Enforcement on May 10, 2005, and was found to be living in Pittsburgh on November 17, 2015, by Immigration and Customs Enforcement, Homeland Security Investigations.
Judge Conti scheduled sentencing for January 6, 2017, at 2:00 p.m. The law provides for a total sentence of 20 years in prison, a fine of $250,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offense and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Shardul S. Desai is prosecuting this case on behalf of the government.
The Immigration and Customs Enforcement – Enforcement Removal Operation conducted the investigation that led to the prosecution of Carey.
Philadelphia Man Sentenced to Eight Years in Prison for Sex Trafficking 15-Year-Old GirlRead the Press Release
TRENTON, N.J. – A Philadelphia man was sentenced today to 96 months in prison for sex trafficking a 15-year-old girl, U.S. Attorney Paul J. Fishman announced.
Samuel Verrier, 38, aka “Dre,” previously pleaded guilty before U.S. District Judge Michael A. Shipp to an information charging him with one count of procuring the interstate travel of a person to engage in illicit sexual conduct for the purpose of financial gain. Judge Shipp imposed the sentence in Trenton federal court.
According to the documents filed in this case and statements made in Court:
For approximately two weeks in August 2011, Verrier engaged a 15-year-old girl in prostitution, acting as her pimp. He brought her to various bars and strip clubs, supplied her with drugs and alcohol, and instructed her to have sex with club patrons in exchange for money. On Sept. 1, 2011, Verrier and his co-defendant, Karl Venord, drove the girl from Philadelphia to Bordentown, New Jersey, so that they could use her in an extortion scheme. They directed her to approach a man in a parking lot, seduce him, take pictures of the sexual encounter, and provide those pictures to Verrier and Venord, who would use the pictures to blackmail the man. The scheme went awry when the man declined the girl’s advances and a witness called the police.
In addition to the prison sentence, Judge Shipp sentenced Verrier to a lifetime term of supervised release, the provisions of which restrict his contact with minors, and ordered him to pay $60,000 in restitution to the victim, as well as a $5,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, with the investigation leading to today’s sentencing. The N.J. Division of Criminal Justice also provided assistance.
The government is represented by Assistant U.S. Attorneys Sarah M. Wolfe, Molly S. Lorber, and R. Joseph Gribko of the U.S. Attorney’s Office Criminal Division in Trenton.
Defense counsel: Paul Casteleiro Esq., West Trenton, New Jersey
Owner of California Company that Falsely Advertised Mortgage Assistance Sentenced to PrisonRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JOHN VESCERA, 60, of Dana Point, Calif., was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 12 months and one day of imprisonment, followed by three years of supervised release, for false advertising and misusing a government seal in connection with the provision of mortgage modification services.
According to court documents and statements made in court, VESCERA was the President of First One Lending Corporation (“First One”) in San Juan Capistrano, Calif. During the peak of the national mortgage crisis, VESCERA and First One offered home mortgage loan modification assistance to homeowners across the United States, including in Connecticut, who were having difficulty repaying their mortgage loans.
From approximately February 2010 until approximately February 2012, VESCERA and First One solicited clients through television advertisements and infomercials produced by National Media Connection of New London, Conn. These advertisements touted the mortgage modification services of an entity known as the National Mortgage Help Center (“NMHC”).
Matthew Goldreich, of East Lyme, Conn., had incorporated NMHC approximately two months after the U.S. Treasury Department announced that it would partner with financial institutions to reduce struggling homeowners’ monthly mortgage payments through a program called the Home Affordable Modification Program (“HAMP”). HAMP consisted of a number of incentives to encourage homeowners and financial institutions to modify existing loans on owner-occupied primary residences in order to help keep these properties out of foreclosure.
NMHC advertisements misrepresented NMHC as being affiliated with or regulated by the U.S. government and falsely stated that NMHC “help[ed] thousands of homeowners every day.” When viewers called the advertised telephone number, they were connected not to NMHC, which operated only as a front and did not provide mortgage modification services for any homeowners, but to clients of National Media Connection, including First One.
VESCERA and First One used NMHC’s name and logo in First One’s promotional materials, application package and other documents. VESCERA also instructed First One employees to introduce themselves to prospective clients as “with the National Mortgage Help Center.”
First One also misrepresented its status with the U.S. Department of Housing and Urban Development (“HUD”). First One employees were instructed to inform homeowners that “[w]e’re a HUD approved lender and we represent the government loan modification programs.” In addition, certain of First One’s forms claimed that the company provided “HUD . . . Housing Counseling assistance” and bore HUD’s seal. In truth, First One had no affiliation with the government mortgage loan assistance programs and was not licensed or approved by HUD for housing counseling or home mortgage loan modification services.
Through this scheme, 302 victims lost a total of $374,622. Many of these victims were previously compensated after VESCERA and First One paid approximately $1.5 million to the Neighborhood Assistance Corporation of America in March 2013 to resolve a federal lawsuit in the Central District of California. As part of this criminal case, VESCERA paid restitution of $30,320 to 24 of the victims who were not identified at the time the federal lawsuit was settled.
On May 3, 2016, VESCERA pleaded guilty to one count of misuse of a government seal and one count of false advertising.
Goldreich previously pleaded guilty to one count of false advertising. On November 5, 2015, he was sentenced to two years of probation, including three months of home confinement. He also was ordered to pay a $100,000 fine and $75,794 in restitution.
This investigation was conducted by the U.S. Postal Inspection Service, Office of the Special Inspector General for the Troubled Asset Relief Program (SIGTARP), U.S. Department of Housing and Urban Development – Office of Inspector General, and Federal Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorneys Avi Perry and Liam Brennan.
Oswego Man Pleads Guilty to Distribution, Receipt and Possession of Child PornographyRead the Press Release
SYRACUSE, NEW YORK – James M. Moody, 42, of Oswego, New York, pled guilty today in Utica before United States District Judge David N. Hurd to one count of distribution of child pornography, one count of receipt of child pornography, and one count of possession of child pornography, announced United States Attorney Richard S. Hartunian and Brian Devine, Resident Agent in Charge, Homeland Security Investigations, Syracuse Office.
As part of his guilty plea, Moody admitted that he distributed images of child pornography through a Peer-to-Peer file sharing program. On October 23, 2015, investigators searched Moody’s residence, and recovered hundreds of images and numerous videos depicting child pornography.
Moody was ordered held in custody pending his sentencing on January 26, 2017 in Utica, New York. He faces at least five (5) years of imprisonment and up to twenty (20) years of imprisonment on each of the distribution and receipt counts, and up to twenty (20) years of imprisonment on the possession count. Sentences of imprisonment may be concurrent or consecutive at the discretion of the Court. The Court will also impose a term of supervised release of between five (5) years and life, and Moody will be required to register as a sex offender. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case was investigated by Homeland Security Investigations, and is being prosecuted by Assistant United States Attorney Geoffrey J. L. Brown.
Launched in May 2006 by the Department of Justice, Project Safe Childhood is led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS). Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit https://www.justice.gov/psc.
Oklahoma Man Pleads Guilty to Federal Narcotics Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Ruben Fuentes, Jr., 38, of Oklahoma City, Okla., pled guilty today in federal court in Albuquerque, N.M., to a methamphetamine trafficking charge. The charge to which Fuentes pleaded guilty arose out a seizure of more than 13 pounds of methamphetamine during a traffic stop.
Fuentes was arrested on March 22, 2016, on a criminal complaint charging him with possession of methamphetamine with intent to distribute. The criminal complaint alleged that Fuentes committed the crime on March 10, 2016, in Quay County, N.M. According to the criminal complaint, New Mexico State Police (NMSP) officers found approximately 13.45 pounds of methamphetamine in Fuentes’ vehicle during a traffic stop on eastbound Interstate 40 near mile marker 327. Fuentes was subsequently indicted on the same charge on April 12, 2016.
During today’s proceedings, Fuentes pled guilty to a felony information charging him with possession of methamphetamine with intent to distribute. In entering the guilty plea, Fuentes admitted that on March 10, 2016, when he was stopped by the NMSP in Quay County, he was in possession of methamphetamine which he intended to distribute to others.
At sentencing, Fuentes faces a statutory maximum penalty of 20 years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque office of Homeland Security Investigations and the NMSP. Assistant U.S. Attorney Paul Mysliwiec is prosecuting the case.
New York Doctor Sentenced to More Than 13 Years in Prison for Unlawfully Dispensing Nearly 1 Million Oxycodone PillsRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MOSHE MIRILASHVILI, a Board-certified, state-licensed doctor, was sentenced today to 160 months in prison for conspiring to distribute oxycodone and unlawful distribution of oxycodone. MIRILASHVILI was also ordered to forfeit $2,046,600.00 in cash fees collected from “patients” during the period of the conspiracy, including more than $1.75 million in cash recovered from MIRILASHVILI’s home at the time of his arrest. MIRLASHVILI was convicted in Manhattan federal court on March 17, 2016, following a three-week trial before United States District Judge Colleen McMahon, who imposed sentence.
Manhattan U.S. Attorney Preet Bharara said: “Moshe Mirilashvili was essentially a drug dealer masquerading as a doctor. Through his sham medical practice in Manhattan where patients and dealers would line up, Mirilashvili wrote more than 10,000 medically unnecessary prescriptions totaling close to a million oxycodone pills. As today’s sentence makes clear, those who abuse their medical licenses to fuel the opioid epidemic that is devastating so many of our communities will be prosecuted and severely punished.”
According to the Indictment, evidence admitted at trial, and statements made at court proceedings and in court filings:
Oxycodone is a highly addictive, prescription-strength narcotic used to treat severe and chronic pain conditions. Every year, more than 13 million Americans abuse oxycodone, with the misuse of prescription painkillers such as oxycodone, leading to as many as 500,000 annual emergency room visits. Oxycodone prescriptions have enormous cash value to street-level drug dealers, who can fill the prescriptions at most pharmacies and resell the pills at vastly inflated rates. Indeed, a single prescription for 90 30-milligram oxycodone pills has an average resale value in New York City of $2,700 or more.
From October 2012 until December 2014, MIRILASHVILI, a board-certified, state-licensed doctor, wrote thousands of medically unnecessary prescriptions for large quantities of oxycodone in exchange for cash payments. MIRILASHVILI did so out of a sham medical office located on West 162nd Street in Manhattan where MIRILASHVILI typically charged $200 to $300 in cash for “patient visits” that typically involved little, if any, actual examination and almost always resulted in the issuance of a prescription for a large quantity of oxycodone, typically 90 30-milligram tablets.
Virtually none of these “patients” had any medical need for oxycodone, nor any legitimate medical records documenting an ailment for which oxycodone would be prescribed. Instead, most of these individuals were members of “crews” – that is, they were recruited and paid by drug traffickers (the “Crew Chiefs”), to pose as “patients” in order to receive medically unnecessary prescriptions. The Crew Chiefs then obtained these prescriptions and arranged for them to be filled at various pharmacies so that the oxycodone pills thereby obtained could be resold on the streets of New York.
As established at trial, MIRILASHVILI worked directly with some of these Crew Chiefs who paid MIRILASHVILI’s cash fees in return for the oxycodone prescriptions MIRILASHVILI guaranteed for their “patients.” As part of the scheme, MIRILASHVILI frequently accepted and even created fraudulent and fake documents – such as MRI and urinalysis reports – ostensibly documenting the medical need for the oxycodone prescriptions MIRILASHVILI was writing. For example, among documents recovered from MIRILASHVILI’s home at the time of his arrest were lab reports in which the name of the “patient” had been cut and pasted onto the document, as well as similar reports in which the name of the patient or other relevant information had been whited out. More than $1.75 million in cash earned from writing these medically unnecessary prescriptions was also recovered from the defendant’s home at the time of his arrest.
In total, between October 2012 and December 2014, MIRILASHVILI wrote more than 10,000 medically unnecessary prescriptions for oxycodone in return for cash payments, comprising nearly a million oxycodone tablets. MIRILASHIVILI collected more than $2 million in cash fees for “doctor visits” during this time period, all of which the defendant is being required to forfeit to the United States.
Ten other participants in the conspiracy have previously pled guilty, including the drug traffickers who oversaw crews of “patients” sent into the clinics to obtain medically unnecessary oxycodone prescriptions, and clinic staff, who profited by selling access to MIRILASHVILI and the fraudulent prescriptions he wrote.
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In addition to the prison sentence and forfeiture, Judge McMahon sentenced MIRILASHVILI, 68, of Great Neck, New York, to 3 years of supervised release and ordered MIRILASHVILI to pay a $300 special assessment.
U.S. Attorney Preet Bharara thanked the Drug Enforcement Administration’s Tactical Diversion Squad (which comprises agents and officers from the DEA, the New York City Police Department, the New York State Police, the Town of Orangetown Police Department, the Rockland County Drug Task Force, and the Westchester County Police Department) for their work in the two-year investigation.
The case is being prosecuted by the Office’s Narcotics Unit. Assistant U.S. Attorneys Edward B. Diskant and Brooke E. Cucinella are in charge of the prosecution.