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8 September 2016
Medical Equipment Company Owner and Biller Plead Guilty in Health Care Fraud SchemeRead the Press Release
McALLEN, Texas ‐ The owner of a Rio Grande Valley area durable medical equipment (DME) company has been convicted of conspiracy to commit health care fraud, announced U.S. Attorney Kenneth Magidson. Veronica Vela, 42, of Mission, entered her plea today before U.S. District Judge Micaela Alvarez.
Vela, the owner of ABC DME, admitted to engaging in a scheme with her co-conspirator and biller, Cynthia Zapata, 50, also of Mission, to submit fraudulent claims to Texas Medicaid for incontinence supplies that were not provided as claimed. The defendants also billed for durable equipment that the recipients’ physicians did not authorize.
Zapata pleaded guilty to conspiracy to commit health care fraud for her role in the scheme. As part of their pleas, the defendants admitted they billed for the maximum quantity of pull-ups allowed under Texas Medicaid rules when it was not needed or provided. Further, they also billed for larger sizes of pull-ups than were needed in order to receive higher reimbursements from Texas Medicaid.
Judge Alvarez has set sentencing for Nov. 17, 2016, at 2:00 p.m., at which time both face up to 10 years in federal prison and a possible $250,000 fine for the conspiracy.
The Texas Attorney General’s Medicaid Fraud Control Unit, U.S. Department of Health and Human Services‐Office of Inspector General and the FBI investigated. Assistant U.S. Attorneys Michael Day and Linda Requenez are prosecuting the case.
Maryland MS-13 Member Pleads Guilty to Violent Racketeering ConspiracyRead the Press Release
Greenbelt, Maryland – Jose Rodriguez-Nunez, a/k/a “Killer,” age 27, of Hyattsville, Maryland, pleaded guilty late on September 7, 2016, to conspiracy to participate in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks.
MS-13 is a national and transnational gang composed primarily of immigrants or descendants from El Salvador. Branches or “cliques” of MS-13, one of the largest street gangs in the United States, operate throughout Prince George’s County, Montgomery County, and Frederick County, Maryland. MS-13 members are required to commit acts of violence to maintain membership and discipline within the gang. One of the principal rules of MS-13 is that its members must attack and kill rivals, known as “chavalas,” whenever possible.
According to his plea agreement and court documents, beginning in 2010, Rodriguez-Nunez conspired with members and associates of MS-13 to engage in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering, and witness retaliation. Rodriguez-Nunez was a member of MS-13 and an associate of the Weedons Clique of MS-13.
Specifically, Rodriguez-Nunez admitted that on December 5, 2012, he was the driver in a drive-by shooting in which another MS-13 member shot at three individuals believed to be rival gang members, killing one and wounding another. Rodriguez-Nunez admitted that after the shooting he fled the scene to avoid being identified.
Rodriguez-Nunez and the government have agreed that if the Court accepts the plea agreement, Rodriguez-Nunez will be sentenced to between 216 and 240 months in prison. U.S. District Judge Roger W. Titus has scheduled sentencing for January 9, 2017, at 10:00 a.m. Rodriguez-Nunez remains detained pending sentencing.
In addition to Rodriguez-Nunez, eight other defendants have pleaded guilty and three have been convicted at trial for their roles in the racketeering conspiracy.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department; and the Prince George’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein also recognized the Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force, and the Maryland Department of Corrections Intelligence Unit for their assistance. Mr. Rosenstein thanked Assistant United States Attorneys William D. Moomau, Lindsay Eyler Kaplan, and Trial Attorney Catherine Dick with the Justice Department Criminal Division’s Organized Crime and Gang Section, who are prosecuting this case.
Maryland MS-13 Member Pleads Guilty to Violent Racketeering ConspiracyRead the Press Release
A Hyattsville, Maryland, man pleaded guilty to charges related to his participation in a racketeering enterprise known as La Mara Salvatrucha, or MS-13, including participating in a murder.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; U.S. Attorney Rod J. Rosenstein of the District of Maryland; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Chief Hank Stawinski of the Prince George’s County, Maryland, Police Department; Chief Douglas Holland of the Hyattsville Police Department; and Prince George’s County State’s Attorney Angela D. Alsobrooks made the announcement.
Jose Rodriguez-Nunez, aka Killer, 27, pleaded yesterday before Senior U.S. District Judge Roger W. Titus of the District of Maryland to conspiracy to participate in a racketeering enterprise.
MS-13 is a national and transnational gang with branches or “cliques” operating throughout the United States, including in Prince George’s County, Montgomery County and Frederick County, Maryland. In pleading guilty, Rodriguez-Nunez admitted that he was a member of MS-13 and an associate of the MS-13 Weedons Clique.
According to his plea agreement, beginning in 2010, Rodriguez-Nunez conspired with members and associates of MS-13 to engage in crimes to further the interests of the gang, including murder, assault, robbery, extortion by threat of violence, obstruction of justice, witness tampering and witness retaliation. Specifically, Rodriguez-Nunez admitted to his role as the driver in a drive-by shooting on Dec. 5, 2012, in which another MS-13 member shot at three individuals believed to be gang rivals, killing one and wounding another. After the shooting, Rodriguez-Nunez fled the scene to avoid being identified, he admitted.
In addition to Rodriguez-Nunez, eight other defendants have pleaded guilty and three have been convicted at trial for their roles in the racketeering conspiracy.
HSI Baltimore, the Prince George’s County Police Department, the Hyattsville Police Department and the Prince George’s County State’s Attorney’s Office investigated the case. The Prince George’s County Sheriff’s Office, HSI Baltimore’s Operation Community Shield Task Force and the Maryland Department of Corrections Intelligence Unit provided assistance in the investigation. Trial Attorney Catherine Dick of the Criminal Division’s Organized Crime and Gang Section and Assistant U.S. Attorneys William D. Moomau, Lindsay Eyler Kaplan are prosecuting this case.
Manhattan Man Sentenced in Federal Court for Defrauding the Department of Education of More Than $1 Million in Student LoansRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that FRANK HARRISON was sentenced yesterday to 18 months in prison for defrauding the United States Department of Education of over $1 million by submitting false documents in connection with his requests for financial aid as a graduate student. HARRISON pled guilty on February 19, 2016, before U.S. Magistrate Judge Ronald L. Ellis. Yesterday’s sentence was imposed by U.S. District Judge Richard M. Berman.
According to the allegations contained in the indictment to which HARRISON pled guilty, other documents filed in Manhattan federal court, and statements made in court proceedings:
From at least March 2008 up to and including August 2013, HARRISON, who was a graduate student at a university in New York City (the “University”), submitted documentation to the University in order to obtain additional financial aid that was above the standard cost of attendance. Specifically, HARRISON submitted false letters and other documents purporting to be from doctors, his landlord, and a University professor, which allowed HARRISON to receive more than $1.3 million in federal student loans.
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In addition to his prison term, HARRISON, 48, of New York, New York, was sentenced to three years of supervised release, and ordered to pay restitution in the amount of $1,170,694.
Mr. Bharara praised the investigative work of the Department of Education.
This case is being handled by the Office’s General Crimes Unit. Assistant United States Attorneys Katherine C. Reilly and Jason M. Swergold are in charge of the prosecution.
Lucas County man accused of embezzlementRead the Press Release
A three-count criminal information was filed charging a Waterville man with embezzling hundreds of thousands of dollas from Construction Contractors Employer Group LLC, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
William H. Cook, III, 66, was charged with one count each of conspiracy, wire fraud and mail fraud.
Cook was president of AlphaCare Services Inc., which handled day-to-day operation of Construction Contractors Employer Group LLC. CCEG was formed in 2001 to collect, process and pay employment expenses of its members, such as payroll and worker’s compensation premiums. CCEG’s members were general contractors from Northwest Ohio, according to the information.
Instead of using the members’ money to pay designated expenses, Cook used much of it for his personal benefit. He did this by transferring CCEG funds into AlphaCare Services accounts and then writing checks payable to himself and others. He then used those funds for personal gain, according to the information.
For example, between September 2011 and June 2012, Cook caused wire transfers from CCEG’s account to AlphaCare’s account in excess of $200,000, according to the information.
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.
The investigating agency in this case is the Federal Bureau of Investigation, in Sandusky, Ohio. The case is being handled by Assistant United States Attorney Gene Crawford.
An information 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.
Lower Brule Man Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Lower Brule, South Dakota, man has been indicted by a federal grand jury for Assaulting, Resisting, and Impeding a Federal Officer.
Johnny Walking Bull, age 32, was indicted on August 16, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on September 6, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 8 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on or about May 19, 2016, Walking Bull forcibly assaulted, resisted, opposed, impeded, intimidated, and interfered with an officer from the Bureau of Indian Affairs, while said officer was engaged in the performance of his official duties.
The charge is merely an accusation and Walking Bull is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Lower Brule Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Walking Bull was released on bond pending trial, which has been set for November 1, 2016.
Local Business Leader Sentenced to Two Counts of Wire FraudRead the Press Release
EUGENE, Ore. – On Tuesday, September 6, 2016, U.S. District Judge Ann Aiken sentenced Terry Shockley, 63, to fifty-one months in prison following his April 2016 guilty plea to two counts of wire fraud. Shockley admitted to defrauding clients and investors through his now-defunct property management company, TS Property Management (TSPM).
Over the past two decades, TSPM grew to be a trusted rental and property management resource for Eugene property owners and students alike. When payments Shockley owed his clients began to run late and complaints were made to the Oregon Real Estate Agency, the true financial health of the company began to unravel. The investigation revealed that Shockley struggled with financial issues and was operating under insurmountable debt. He ran TSPM like a Ponzi scheme and also used client money to fund the purchase of a second home in La Pine, Oregon, as well as other lifestyle expenses.
TSPM was an influential local business in Eugene and attracted clients and investors not only from Lane County, Oregon, but from across the country and internationally. U.S. Attorney Billy J. Williams said, “The collapse of TSPM sent shockwaves throughout the Eugene community as property owners learned that a trusted adviser had taken advantage of their faith in his business and in him. This sentence reflects the severity of the defendant’s crimes and the degree to which he exploited individuals in his community and elsewhere for his own financial gain.”
Shockley admitted that his actions resulted in the loss of over $4.5 million to his clients and investors and agreed to entry of a restitution order reflecting those losses. He also admitted to specific details of his scheme, which included operating the company under materially false pretenses while claiming that client money was held in trust and that TSPM was thriving financially.
The case was investigated by the FBI and the Oregon Real Estate Agency and prosecuted by Assistant U.S. Attorney Nancy M. Olson.
Lizella Resident Sentenced for Assaulting Federal OfficersRead the Press Release
G.F. Peterman, III, the United States Attorney for the Middle District of Georgia, announces that Bobby Leon Parrish, of Lizella, Georgia, was sentenced to serve 95 months in Federal prison for assaulting a Federal law enforcement officer and using a firearm in relation to a crime of violence. The sentence was handed down by the Honorable Marc T. Treadwell on September 7, 2016 in Macon.
Through his guilty plea entered on April 20, 2016, Mr. Parrish admitted that on August 24, 2015, Deputy U.S. Marshals attempted to take Mr. Parrish into custody for several outstanding state warrants and failure to report to his state probation officer. Mr. Parrish pulled a firearm from his waistband and aimed it at the officers. A search of Mr. Parrish revealed a small container of marijuana, two digital scales, two shotgun shells and crushed substance Mr. Parrish claimed was Xanax, along with the single shot shotgun.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives. Assistant United States Attorney Kimberly S. Easterling prosecuted the case on behalf of the Government.
Inquiries regarding this case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Landenberg Man Charged with Illegal ReentryRead the Press Release
Hector Cisneros-Ibarra, a/k/a “Hector Ibarra Cisneros,” 38, of Landenberg, PA, was charged today by Indictment with illegal reentry after deportation, announced United States Attorney Zane David Memeger. The indictment alleges that on or about October 22, 2014, Cisneros-Ibarra, an alien, and native and citizen of Mexico, was found in the United States after having been deported from the United States on or about May 5, 2006, July 6, 2006 and November 4, 2008.
If convicted the defendant faces a maximum possible sentence of ten years.
The case was investigated by Immigration and Customs Enforcement, Enforcement and Removal Operations (“ERO”), and is being prosecuted by Assistant United States Attorney Mary Kay Costello.
An Indictment, Information or Criminal Complaint is an accusation. A defendant is presumed innocent unless and until proven guilty
Kentwood Man Pleads Guilty to Meth PossessionRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ERIC BROWN, age 38, from Kentwood, Louisiana, pled guilty to today to one count of Possession with Intent to Distribute a Quantity of Methamphetamine.
According to court documents, on June 22, 2014, a Tangipahoa Parish Sheriff’s deputy responded to a suspicious person report at 69062 South River Road in Kentwood. When the deputy arrived at the residence, he observed individuals flee the residence. He then noticed several males outside the rear of the residence. As the deputy approached the rear of the residence, he detected an odor consistent with the manufacturing of methamphetamine. Four individuals were outside the rear of the residence, including BROWN, who was sitting in a white Lincoln. The deputy then noticed in plain view of the vehicle twenty-four zip-lock baggies containing approximately three grams of methamphetamine and a Smith and Wesson .38 special revolver on the vehicle’s floorboard.
The deputy then met with a female at the residence who told the deputy that she and BROWN resided at the residence and that BROWN “cooked” methamphetamine in their bedroom the previous night. Deputies and DEA Task Force Officers searched the residence and found three inactive methamphetamine labs in a refrigerator in the master bedroom.
BROWN faces a maximum term of 20 years imprisonment and a fine of $1,000,000. U.S. District Judge Nannette Jolivette Brown set sentencing for
U.S. Attorney Polite praised the work of the U.S. Drug Enforcement Administration and the Tangipahoa Parish Sheriff’s Office in investigating this matter. Assistant U.S. Attorney Andre’ Jones is in charge of the prosecution.
KC Man Pleads Guilty to Laser StrikeRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to aiming his laser pointer at a Kansas City, Mo, Police Department helicopter.
Jordon Clarence Rogers, 26, of Kansas City, pleaded guilty before U.S. Magistrate Judge John T. Maughmer to the charge contained in an Oct 29, 2014, superseding indictment.
By pleading guilty today, Rogers admitted that he aimed the beam of a laser pointer at a Kansas City, Mo., Police Department helicopter on Oct. 8, 2013. Rogers struck the helicopter three times with a green laser light. He twice hit the eye of one of the pilots, causing eye strain that lasted for hours after the incident.
Under federal statutes, Rogers is subject to a sentence of up to five years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Brian P. Casey. It was investigated by the FBI.
KC Brothers Sentenced for PCP ConspiracyRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two Kansas City, Mo., brothers were sentenced in federal court today for their roles in a conspiracy to distribute PCP.
Todd M. Byrd, 36, and his brother, Aaron Byrd, 42, both of Kansas City, were sentenced in separate appearances before U.S. District Judge Gary A. Fenner. Todd Byrd was sentenced to 20 years in federal prison without parole and 10 years of supervised release following incarceration. Aaron Byrd was sentenced to 11 years and three months in federal prison without parole and eight years of supervised release following incarceration.
On April 19, 2016, Todd Byrd pleaded guilty to his role in the conspiracy to distribute one kilogram or more of PCP. On the same date, Aaron Byrd pleaded guilty to a lesser included offense of conspiracy to distribute 100 grams or more of PCP.
Investigators conducted a series of controlled purchases of PCP and seizures of PCP from Jan. 1, 2014, to May 21, 2015. According to court documents, Todd and Aaron Byrd were mid-level distributors with several sources of supply, including co-defendant Leelon L. Williams, 40, of Kansas City, Mo. The Byrd brothers regularly acquired multiple-ounce quantities of PCP to distribute to customers in quantities ranging from PCP-dipped cigarettes, called “sticks,” to half-ounce bottles and full ounce bottles of PCP.
Co-defendant George Hunt, 59, of Kansas City, Mo., traveled to Los Angeles, Calif., in April 2015 to pick up PCP from a supplier and deliver it to Todd Byrd. On his return trip, Hunt was stopped by the Kansas Highway Patrol for a traffic violation. The trooper noticed the overpowering odor of PCP emanating from the vehicle. The trooper conducted a search of Hunt’s vehicle and located a 64-ounce bottle containing PCP on the back seat floorboard.
Todd and Aaron Byrd are the fourth and fifth defendants to be sentenced after pleading guilty to their roles in the drug-trafficking conspiracy. Williams was sentenced to 20 years in federal prison without parole. Hunt was sentenced to four years and six months in federal prison without parole. Michael Lightener, 45, of Kansas City, Mo., was sentenced to two years and two months in federal prison without parole.
Co-defendants Terrence T. Taliferro, 41, and Frank Savory 26, both of Kansas City, Mo., have pleaded guilty and await sentencing.
This case is being prosecuted by Assistant U.S. Attorney Brent Venneman. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Justice Department Moves to Dismiss McDonnell ChargesRead the Press Release
ALEXANDRIA, Va. – Today the United States moved to dismiss the charges against Robert F. McDonnell and his wife Maureen McDonnell.
After carefully considering the Supreme Court’s recent decision and the principles of federal prosecution, we have made the decision not to pursue the case further.
The department thanks the trial team and its investigative partners for their outstanding work on this case.
Justice Department Moves to Dismiss McDonnell ChargesRead the Press Release
Today, the United States moved to dismiss the charges against Robert F. McDonnell and his wife Maureen McDonnell.
After carefully considering the Supreme Court’s recent decision and the principles of federal prosecution, we have made the decision not to pursue the case further.
The department thanks the trial team and its investigative partners for their outstanding work on this case.
Jeffersonville Man Sentenced for Robbery of Huddle HouseRead the Press Release
Brandon Perry, age 24, from Jeffersonville, Georgia was sentenced to 9 years imprisonment by the Honorable Marc T. Treadwell. Mr. Perry previously entered a guilty plea on September 7, 2016 to Interference with Commerce by Robbery and Possession of a Firearm During and in Relation to a Crime of Violence. His co-defendant, Gabriel Bell, age 21, from Warner Robins, Georgia, was sentenced to 5 years and 1 day imprisonment on April 27, 2016, following his guilty plea to the same charges on April 2, 2015.
Through their guilty pleas, Mr. Perry and Mr. Bell both admitted to robbing the Huddle House located at 5218 Highway 96 West in Jeffersonville, Georgia. They entered the store wearing masks and pointed firearms at the employees of the store. Mr. Perry brandished a short-barreled shotgun and stood by the door while Mr. Bell carried a pistol, went behind the counter, and took money from the cash register as well as the purse belonging to an employee which contained a bank bag with money belonging to the store.
They then left the store on foot and ran to Mr. Bell’s vehicle. While approaching his residence, Mr. Bell lost control of the vehicle and crashed. Investigators responded to the scene and observed broken glass and blood on the deployed airbags. Investigators suspected that the vehicle was involved with the burglary and obtained consent to search Mr. Bell’s bedroom. In his bedroom, they located a pair of shorts and a pair of pants that matched those worn by the robbery suspects, both of which contained blood and glass. The shorts also had a large amount of cash and the keys to the wrecked vehicle in the pockets.
Investigators recovered the employee’s purse with the bank bag and the short-barreled shotgun in a path leading from Mr. Bell’s residence to the location from where it was reported Mr. Perry was picked up following the car accident.
This case was investigated by the Bureau of Alcohol Tobacco, Firearms and Explosives, the Georgia Bureau of Investigation, and the Twiggs County Sheriff’s Office. Assistant United States Attorney Beth Howard prosecuted the case for the Government.
Inquiries regarding the case should be directed to Pam Lightsey at the United States Attorney’s Office at 478-752-3511.
Justice Department Sues South Dakota Business for Violating Employment Rights of Air National Guard MemberRead the Press Release
WASHINGTON – The Justice Department filed a complaint late yesterday alleging that BioFusion Health Products Inc., a business with headquarters in Rapid City, South Dakota, violated the employment rights of former South Dakota Air National Guard Senior Airman Amber M. Ishmael under the Uniformed Services Employment and Reemployment Rights Act (USERRA). Ishmael has served her country as part of the Air National Guard since 2010 and is currently a staff sergeant with the Missouri Air National Guard.
According to the complaint, which was filed in the U.S. District Court for the District of South Dakota, Ishmael’s military service was a motivating factor in BioFusion’s decision to both deny her request for reemployment and ultimately terminate her employment. The department claims both actions by BioFusion violated Ishmael’s rights as a servicemember to employment and reemployment under USERRA.
The complaint further alleges that in February 2015, BioFusion fired Ishmael from her position as a receptionist due to her military service and subsequently denied her application for reemployment following her active military duty. Ishmael’s employment was terminated while she was out of state attending Airmen Leadership School, which is professional military education training associated with her military service. When Ishmael requested reemployment upon return, she was explicitly denied based on her previous absence related to her military service.
“BioFusion must be held to account for its alleged wrongful termination of Staff Sgt. Ismael, who proudly serves in our Air National Guard,” said Principal Deputy Associate Attorney General Bill Baer. “The Department of Justice is committed to protecting the employment rights of those who meet their active duty commitments.”
“Staff Sergeant Ishmael served our nation with honor and distinction, and USERRA guarantees her right to return to civilian employment upon returning from military service,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This lawsuit and the department’s Servicemembers and Veterans Initiative demonstrate our steadfast commitment to leverage every resource and tool at the federal government’s disposal to protect the rights of the men and women who defend our freedom and safeguard our way of life.”
“Members of our Air National Guard make many sacrifices, including spending months or years away from their jobs and families,” said U.S. Attorney Randolph J. Seiler of the District of South Dakota. “When our servicemembers are deployed in the service of our country, they are entitled to retain their civilian employment and to the protections of federal law that prevent them from being subject to discrimination based upon their military obligations. We are filing suit on behalf of Staff Sergeant Ishmael, a former member of the South Dakota Air National Guard, to ensure that she does not lose her rights while she was protecting ours.”
USERRA safeguards the rights of uniformed servicemembers to retain their civilian employment following absences due to military service obligations. USERRA also protects servicemembers from discrimination on the basis of their military obligations.
The lawsuit seeks damages equal to the amount of Ishmael’s lost wages and benefits caused by BioFusion’s failure to comply with USERRA. It also seeks orders requiring BioFusion’s compliance with all provisions of USERRA and requiring BioFusion to pay all related litigation fees.
Ishmael initially filed a complaint with the Department of Labor’s Veterans’ Employment and Training Service (VETS), which investigated this matter and attempted to reach a resolution between the parties. After resolution failed, VETS referred the complaint to the Justice Department’s Civil Rights Division. This lawsuit followed as a collaborative initiative between the Civil Rights Division and the U.S. Attorney’s Office of the District of South Dakota. The Justice Department gives high priority to the enforcement of servicemembers’ rights under USERRA. Additional information about USERRA can be found on the Justice Department’s websites at https://www.justice.gov/crt/employment-litigation-section and https://www.justice.gov/crt-military, as well as on the Department of Labor’s website at www.dol.gov/vets/programs/userra/main.htm.
Insurance Agent Charged with Defrauding Clients, Money LaunderingRead the Press Release
Springfield, Ill. – A federal grand jury has indicted a Decatur, Ill., man who worked as an independent insurance agent. The indictment, returned Sept. 7, charges James P. Smith, 60, of the 5400 block of Traughber Road, with a fraud scheme that allegedly exposed clients to a potential loss of more than $250,000 from February 2011 to July 2016.
Smith is currently in custody on charges filed by the Macon County State’s Attorney’s Office. The U.S. Clerk of the Court will schedule a date for Smith to appear for arraignment in federal court in Urbana.
The Federal Bureau of Investigation and the Macon County Sheriff’s Office are conducting the investigation. Assistant U.S. Attorney Eugene L. Miller is prosecuting the case with the cooperation of the Macon County State’s Attorney’s Office.
According to the indictment, from at least February 2011 through July 2016, Smith represented that he was employed by or owned the Prairie State Insurance Agency in Decatur, Ill., and he acted as an independent agent. Smith solicited clients to purchase insurance, including whole life insurance, and financial products, including annuities. As part of the alleged scheme, Smith falsely represented the minimum rate of return the annuities could obtain for his clients. Instead of investing clients’ money in insurance, annuities, or other financial products, Smith allegedly used the money for his own benefit.
As alleged in the indictment, Smith requested payments be made payable to “MSM, Inc.,” which he represented was the insurance company or the investment company for the annuity the clients were purchasing. In fact, as Smith knew, MSM, Inc., was actually “Main Street Marathon,” a gas station in Mt. Zion, Ill., owned by Smith. Rather than use the clients’ funds as represented, Smith used the money to finance the gas station without his clients’ knowledge. Smith also used his clients’ money to make mortgage payments on his personal residence.
Further, Smith allegedly cancelled or cashed out clients’ insurance policies or annuities without their knowledge or permission, and used the cash value and / or future premiums or payments for his personal benefit, including to pay his personal attorney’s fees, his personal bankruptcy fees, and as purported annuity payments to other clients to prevent them from discovering that he had not purchased their annuities as promised.
If convicted, the statutory maximum penalty for each count of mail fraud (two counts) and wire fraud (one count) is 20 years in prison, and a fine of up to $250,000, and the statutory maximum penalty for the offense of money laundering (one count) is 20 years in prison, and a fine of up to $500,000, or twice the value of property involved in the transactions, whichever is greater.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Inglewood, California Man Sentenced to Five Years in Federal Prison for Conspiracy to Commit Mail and Wire FraudRead the Press Release
Spokane – Michael C. Ormsby, United States Attorney for the Eastern District of Washington, announced Erick Halkier Hansen, age 58, of Inglewood, California, was sentenced today by Chief United States District Judge Thomas O. Rice to five years in federal prison as a result of his conviction for Conspiracy to Commit Wire and Mail Fraud. Chief Judge Rice also ordered Hansen to pay $2,872,300 in restitution to 51 investors who lost money as a result of Hansen’s criminal activity and required Hansen to serve three years of supervised release upon the completion of his sentence. Previously, on June 9, 2016, Chief Judge Rice also sentenced Sean Michael Borzage Boyd of Provo, Utah to 3 years in federal prison for his role in the same conspiracy. Chief Judge Rice ordered Boyd to pay restitution along with Hansen.
On March 24, 2016, the Defendant pled guilty to Conspiracy to Commit Wire and Mail Fraud with regard to his operation of BlueStar Digital Technologies, Inc. (“BlueStar”) and related entities in Spokane, Washington from October, 1, 2010 through January 1, 2014. Hansen was the President and Chief Executive Officer of BlueStar during the timeframe alleged in the indictment. According to information disclosed during court proceedings, the conspiracy involved Hansen’s solicitation of funds from investors across the United States for three separate schemes.
First, in 2010 Hansen took funds from investors based on representations that BlueStar had a contract for the exclusive distribution rights to video footage of a recently deceased celebrity (the “Celebrity Footage”) and that BlueStar would replicate large numbers of Blu-ray Discs containing the Celebrity Footage for profit. Hansen knew, however, that: 1) BlueStar, was not capable of replicating large numbers of Blu-ray Discs at that time and therefore could not perform under the contract regarding the Celebrity Footage; and, 2) BlueStar took no meaningful steps to undertake any production or distribution of the Celebrity Footage on Blu-ray Discs.
Second, in 2012 Hansen took funds from investors based on representations that BlueStar had a contract with a film company to release an animated film that BlueStar would exclusively distribute, including through distribution on Blu-ray Discs. Hansen continued to take funds from investors after the contract with the film company expired based on BlueStar’s failure to perform under the contract.
Third, also in 2012, Hansen signed a non-binding memorandum of understanding with an individual and another film company wherein BlueStar and the film company agreed to explore the possibility of the film company investing in BlueStar. Hansen knew that the memorandum of understanding with the film company was not binding, but continued to collect investor funds as if the deal were imminent. The deal never materialized.
Chief Judge Rice found the total loss from Hansen’s criminal activity to be $2,872,300.
Michael C. Ormsby said, “Today’s sentence reflects the seriousness of this major fraud scheme. I commend the FBI, the IRS-CID, and the Washington State Department of Financial Institutions for their tireless efforts in pursuing the investigation of this case. Prosecuting fraud matters is a priority for the United States Attorney’s Office here in the Eastern District of Washington.”
The investigation of this case was conducted by: (a) the Federal Bureau of Investigation, (b) the Internal Revenue Service, Criminal Investigation, and (c) the Washington State Department of Financial Institutions. The case was prosecuted by James A. Goeke and George J.C. Jacobs III, Assistant U.S. Attorneys for the Eastern District of Washington.
Indictment: Argument with Wife Drove Man to Bank RobberyRead the Press Release
KANSAS CITY, KAN. - A Kansas City, Kan., man who told investigators he preferred jail to living with his wife was indicted Thursday on a federal bank robbery charge, Acting U.S. Attorney Tom Beall said.
Lawrence John Ripple, 70, Kansas City, Kan., was indicted on one count of bank robbery. A criminal complaint filed earlier in the case alleged that on Sept. 2, 2016, Ripple sat down in the lobby and waited for police after robbing the Bank of Labor at 756 Minnesota Ave. in Kansas City, Kan. He told investigators that after an argument with his wife he felt he would rather be in prison than go back home.
If convicted, he faces up to 20 years in federal prison and a fine up to $250,000. The FBI Investigated. Assistant U.S. Attorney Sheri Catania is prosecuting.
OTHER GRAND JURY INDICTMENTS
Elizabeth Watson, 48, is charged with escaping from federal custody at the Heartland Center for Behavioral Change.
If convicted, she faces a maximum penalty of five years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Terra Morehead is prosecuting.
Gabriel Lemus-Miranda, 36, a citizen of Mexico, is charged with unlawfully re-entering the United States after being deported. He was found Aug.18, 2016, in Rush county, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Jose Francisco Cisneros-Orellana, 46, a citizen of Guatemala, is charged with unlawfully re-entering the United States after being deported. He was found Aug.18, 2016, in Cowley County, Kan.
If convicted, he faces up to two years in federal prison and a fine up to $250,000. Immigration and Customs Enforcement’s Enforcement and Removal Operations investigated. Assistant U.S. Attorney Brent Anderson is prosecuting.
Mark Collier, 34, is charged with escaping from federal custody at the Grossman Community Correction Center in Leavenworth, Kan. The crime is alleged to have occurred Aug. 13, 2016.
If convicted, he faces a maximum penalty of five years and a fine up to $250,000. The U.S. Marshals Service investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Gerald Armstrong, 67, Olathe, Kan, is charged with making a false statement on an application for a passport. The crime is alleged to have occurred June 9, 2007, in Johnson County, Kan.
If convicted, he faces up to 10 years in federal prison and a fine up to $250,000. The State Department investigated. Assistant U.S. Attorney Jabari Wamble is prosecuting.
Debbie Jones, 60, Kansas City, Mo., is charged with one count of delaying the delivery of mail that was entrusted to her as a postal service employee, and count of stealing mail. The crimes are alleged to have occurred in July and September 2015 in Wyandotte County, Kan.
If convicted, she up to five years in federal prison and a fine up to $250,000 on each count. The U.S. Postal Service Investigated. Assistant U. S. Attorney Jabari Wamble is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Independence Man Sentenced for Receiving Undeserved Veterans BenefitsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that an Independence, Mo., man was sentenced in federal court today for fraudulently receiving veterans benefits by using the stolen identity of a U.S. Navy veteran.
Eric D. Smith, 63, of Independence, was sentenced by U.S. Chief District Judge Greg Kays to four years and three months in federal prison without parole. The court also ordered Smith to pay $234,461 in restitution, which includes payments to additional agencies that were victimized by Smith when he engaged in similar criminal conduct in Maryland, Georgia and Florida.
On Feb. 3, 2016, Smith pleaded guilty to one count of violating the False Claims Act and one count of student loan fraud. Smith admitted that he assumed the identity of another person, a veteran of the U.S. Navy, from October 2012 through April 2014. Smith fraudulently obtained a VA identification card and VA health care benefits utilizing this stolen identity.
Smith fraudulently received approximately $15,459 in VA health care treatment, $12,956 in Veterans Retraining Assistance Program educational benefits and $656 in travel benefits from the Kansas City VA Medical Center.
This case was prosecuted by Assistant U.S. Attorney Paul S. Becker. It was investigated by the Department of Veterans Affairs, Inspector General, Office of Investigations and the Department of Education, Office of Inspector General.
Hospital Worker Charged with Attack at Fort LeavenworthRead the Press Release
KANSAS CITY, KAN. – A civilian hospital employee was charged Thursday with setting a woman on fire on Fort Leavenworth in an effort to kill her, Acting U.S. Attorney Tom Beall said.
Clifford Currie, 54, Leavenworth, Kan., was charged with one count of assault with intent to commit murder. A criminal complaint filed in U.S. District Court in Kansas City, Kan., alleged that Currie threw gasoline or some other inflammable liquid on his female supervisor, lit on her fire and assaulted her with a straight edge razor. Another hospital worker came to the victim’s aid when she heard screams and saw the victim on fire from the chest up. That woman was injured trying to stop Currie from continuing the assault on the victim. Currie was subdued by hospital employees and then arrested.
If convicted, he faces a penalty of 20 years in federal prison and a fine up to $250,000. The FBI and the U.S. Army Military Police investigated. Assistant U.S. Attorney Kim Flannigan is prosecuting.
In all cases, defendants are presumed innocent until and unless proven guilty. The indictments merely contain allegations of criminal conduct.
Goodman Company L.P. Agrees to Pay $5.55 Million for Delay and Misrepresentation in Reporting Fire HazardRead the Press Release
Goodman Company L.P. has agreed to pay a $5.55 million civil penalty to settle allegations that it failed to timely inform the Consumer Product Safety Commission (CPSC) of a fire risk posed by certain air conditioning and heating units, many of which were installed in hotels, schools and hospitals, the Department of Justice and the CPSC jointly announced today. The settlement also resolves allegations that, when Goodman ultimately reported the fire risk to the CPSC, it misrepresented the number of fires that had occurred. Goodman is a Delaware corporation based in Houston, Texas.
The delay and misrepresentation violated the Consumer Product Safety Act, the government asserted in a complaint filed today in the U.S. District Court for the Southern District of Texas. To resolve the complaint, Goodman agreed to the $5.55 million civil penalty and other terms of a consent decree, which is subject to judicial approval.
“Goodman knew of a fire risk but waited roughly two years to inform the CPSC,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Companies must report these safety issues immediately, as the law requires, to protect the public from an unnecessary risk of injury. The Department of Justice will continue to take enforcement action against companies that do not meet their consumer product safety obligations.”
“Goodman’s conduct was illegal, dangerous and unacceptable,” said CPSC Chairman Elliot F. Kaye. “Goodman’s decision to hide information about serious fires for years, while continuing to profit from sales, slowed down the announcement of a recall and put the safety of many families at real risk. CPSC will continue to work closely with the Department of Justice to enforce the law and hold violators accountable.”
The government’s complaint concerns through-the-wall air conditioning and heating products known as packaged terminal air conditioner/heaters, or PTACs. The United States alleged that Goodman knew in 2008 that certain PTACs it manufactured between January 2007 and April 2008 (Subject PTACs) had improperly-crimped power cords that could pose a fire risk.
Goodman had been receiving reports about the Subject PTACs catching fire, smoking and overheating. Among the reports, Goodman learned in May 2011 of a fire at a lodging facility in New York. At that hotel, the complaint alleged that Goodman replaced the control boards and power cords for over 100 Subject PTACs. Goodman made similar large-scale replacements in 2013, replacing the power cords and control boards for more than 335 Subject PTACs at seven hotels, following two hotel fires in Indiana and Idaho. But Goodman did not report the fire risk to the CPSC until Nov. 26, 2013, at least six months after it learned of these fires.
When it ultimately reported to the CPSC, Goodman identified only three reports of overheating. In fact, by that time, the complaint alleged that Goodman had received scores of additional reports of overheating, including reports of fire, potentially attributable to the Subject PTACs’ power cord.
After reporting to the CPSC, Goodman learned of additional fires involving the Subject PTACs, but failed to timely report six of them to the CPSC, as set forth in the complaint. At least 10 months passed between when Goodman learned of each of those fires and when the fire was reported to the CPSC.
The consent decree requires Goodman to maintain a compliance program to ensure that the company complies with the Consumer Product Safety Act and to maintain internal controls and procedures designed to ensure timely, truthful, complete, and accurate reporting to the CPSC as required by law. Goodman is subject to liquidated damages if the company is not in compliance with the consent decree.
In agreeing to settle this matter, Goodman has not admitted that it violated the law.
The government is represented by Trial Attorney Daniel Zytnick of the Civil Division’s Consumer Protection Branch, with the assistance of Patricia Vieira of the CPSC’s Office of the General Counsel.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
Four Charged with Marijuana Cultivation Operation in the Domeland WildernessRead the Press Release
FRESNO, Calif. — A federal grand jury returned a four-count indictment today against Juan Carlos Lopez, 32, of Lake Elsinore; Rafael Torres-Armenta (Torres), 32; Javier Garcia-Castaneda (Garcia), 38; Carlos Piedra-Murillo (Piedra), 29, all natives and citizens of Mexico, charging them with conspiring to cultivate marijuana with intent to distribute, cultivating marijuana, and damaging public land and natural resources in connection with a large-scale marijuana cultivation operation in the Domeland Wilderness area in the Sequoia National Forest, Acting United States Attorney Phillip A. Talbert announced.
According to the indictment, between May 1, 2016, and August 26, 2016, Lopez, Torres, Garcia, and Piedra conspired to grow marijuana in a large cultivation operation in the Sequoia National Forest. The cultivation sites contained over 8,000 marijuana plants and were located in the Domeland Wilderness, a federally designated wilderness area about 55 miles northeast of Bakersfield known for its many granite domes and unique geologic formations.
According to court documents, the marijuana cultivation operation caused extensive damage to the land and natural resources. It covered approximately 10 acres and was within the burned area of the 2000 Manter Fire. Some of the new vegetation and trees that sprouted after the fire had been cut and trimmed to make room for the marijuana plants. Water was diverted from a tributary stream of Trout Creek that supports trout. Fertilizer and pesticides were found at the site. Large piles of trash were found near the campsite.
This case is the product of an investigation by the U.S. Forest Service, the Bureau of Land Management, U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), and the California Department of Fish and Wildlife. Assistant United States Attorney Karen Escobar is prosecuting the case.
Lopez is scheduled for arraignment on the indictment on September 8, 2016, in federal court in Fresno. Torres, Garcia, and Piedra are scheduled for arraignment on September 12, 2016.
If convicted of the drug offenses as charged in counts one through three, Lopez faces a mandatory minimum statutory penalty of five years and a maximum statutory penalty of 40 years in prison and a $5 million fine. If convicted of the charged drug offenses, Torres, Garcia, and Piedra face a maximum penalty of 20 years in prison and a fine of up to $1 million. If convicted of the environmental crime, the men face a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Former Temple Police Officer Arrested for Revealing an Ongoing InvestigationRead the Press Release
This morning, FBI agents arrested 24–year-old former Temple police officer Erick French for allegedly revealing an ongoing investigation announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher B. Combs, San Antonio Division.
A two-count federal grand jury indictment returned in Austin and unsealed today charges the Copperas Cove, TX, resident with making false statements to federal investigators. According to the indictment, on March 16, 2016, and again on March 21, 2016, French allegedly provided false information to FBI agents in an attempt to hide the fact that he had previously sent a text message alerting an individual to an ongoing investigation being conducted by the Temple Police Department’s Special Investigations Unit.
Upon conviction of each false statement charge, French faces up to five years in federal prison and a maximum $250,000 fine.
French was released on a $25,000 bond following his initial appearance in Waco this morning before United States Magistrate Judge Jeffrey Manske. French is scheduled for arraignment in Austin at 11:00am on September 19, 2016, before United States Magistrate Judge Andrew Austin.
This indictment resulted from an investigation conducted by the FBI, Drug Enforcement Administration (DEA) and the Temple Police Department.
“San Antonio FBI would like to thank DEA and Temple Police Department for their extraordinary contributions in this joint investigation. By identifying and bringing this matter to the FBI's attention, the Temple Police Department has demonstrated high standards for integrity and accountability within its department,” stated FBI Special Agent in Charge Christopher Combs.
Assistant United States Attorney Dan Guess is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
Former State Employee Sentenced to Federal Prison in Fraudulent Drivers License SchemeRead the Press Release
In San Antonio today, 54-year-old Jose A. Ytuarte, a former Texas Department of Public Safety Customer Service Representative in Hondo, TX, was sentenced to 18 months in federal prison followed by two years of supervised release for his role in a scheme to provide fraudulent drivers’ licenses to undocumented aliens announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation (FBI) Special Agent in Charge Christopher Combs, San Antonio Division.
On March 31, 2016, Ytuarte pleaded guilty to one count of use of interstate communication facility in aid of unlawful activity--bribery. By pleading guilty, Ytuarte admitted that from May 2013 to July 2015, he accepted cash bribes from a co-conspirator in exchange for inputting materially fraudulent information, namely that the individual was born in the United States, into the DPS computer system in order to process and issue a driver’s license to an undocumented alien.
Ytuarte’s co-defendant, 45-year-old Azeez Mistry of San Antonio, is charged in the conspiracy count. He is also charged with three counts of transfer of false identification documents and one count of use of an interstate communication facility in aid of unlawful activity--bribery. According to the indictment in this case, Mistry would direct undocumented and documented aliens who could not get a driver’s license legally to Ytuarte. Mistry would charge between $1,000 and $5,000 for each license and then pay a portion of that fee to Ytuarte as a cash bribe.
Ytuarte remains on bond pending notification of facility designation by the U.S. Bureau of Prisons. Mistry, who is currently on bond, is scheduled for a re-arraignment hearing on Monday at 2:00pm before United States Magistrate Judge John W. Primomo.
This case was investigated by the FBI, Texas Rangers and U.S. Customs and Border Protection. Assistant United States Attorney Christina Playton is prosecuting this case on behalf of the Government.
An indictment is merely a charge and should not be considered as evidence of guilt. Mistry is presumed innocent until proven guilty in a court of law.
Former Professor Sentenced on Two Child Pornography ChargesRead the Press Release
GALVESTON, Texas - A 47-year-old Galveston man formerly employed at Texas A&M University has been ordered to federal prison following his convictions of receipt and possession of child pornography, announced U.S. Attorney Kenneth Magidson. Matthew Irwin pleaded guilty March 22, 2016.
Today, U.S. District Judge George C. Hanks Jr. took into consideration all materials presented including victim impact statements and handed Irwin and 97 months in federal prison. In handing down the sentence, Judge Hanks stated that he needed to protect the members of society who could not protect themselves. Irwin will serve 10 years of supervised release following completion of his prison term, during which time he will have to comply with numerous requirements designed to restrict his access to children and the Internet. Irwin will also be ordered to register as a sex offender.
Irwin was employed as an associate professor for Texas A&M Galveston at the time of his arrest. He had come to the attention of law enforcement after investigators found evidence he was accessing files from a website known to contain child pornography.
Law enforcement executed a search warrant at his residence on Aug. 6, 2015, at which time they seized a laptop and various external storage media devices. The forensic examination revealed more than 4,000 images and two videos of clearly young children engaged in sexually explicit conduct. These movies and images included children under the age of 12 engaged in acts of violence. Some of the images are of known victims as identified through the National Center for Missing and Exploited Children.Irwin admitted he downloaded child pornography from the Internet, thereby receiving and possessing the child pornography found on his computer and external storage media.
Previously released on bond, Irwin was permitted to remain on bond and voluntarily surrender to a U.S. Bureau of Prisons facility to be determined in the near future.
The charges are the result of an investigation by the FBI and the Pearland Police Department.
This case, prosecuted by Assistant U.S. Attorney Kimberly Ann Leo, 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."
Former Executive Director of Kankakee Valley Park District Charged with Fraud SchemeRead the Press Release
Springfield, Ill. – A federal grand jury returned an indictment on Sept. 7, that charges Roy Collins, former executive director of the Kankakee Valley Park District, with defrauding the park district and a related not-for-profit organization for his personal benefit. Collins will be issued a summons to appear in federal court in Urbana for arraignment on a date to be determined by the U.S. Clerk of the Court.
Collins, 46, of Kankakee, Ill., was employed as the Executive Director of the Kankakee Valley Park District from 2011 to 2016. The park district also works with the not-for-profit organization known as the Kankakee Valley Park Foundation.
The indictment alleges that Collins accessed and used park district equipment, labor, and funds to benefit himself, including that he used park district equipment and labor to build a pond on his personal property; that he solicited at least one independent contractor to perform work for the park district and on his residence and that he suggested the contractor falsely bill all of the work to the park district; that Collins issued a foundation check to purchase a tarp or pond liner for use on his personal property; that he caused a mower belonging to the park district be kept and used at his personal property; and that he kept and used a park district golf cart at his personal property.
Between about 2013 and 2015, the indictment further alleges that Collins converted park district and park foundation funds intended for annual “BBQ Fest” events to his personal use, including his demand for and receipt of approximately $6,000 in kickback payments from an individual hired in connection with the 2014 and 2015 BBQ Fests; his request that the individual who made the kickback payments falsely represent the purpose of the payments to law enforcement; and his false representations that certain cash withdrawals he controlled were used to pay BBQ Fest expenses, when in fact, a portion of that cash was converted to his personal use.
In addition, Collins allegedly caused false representations to be made to the Kankakee Valley Park District board regarding the park district’s credit card expenses, and he allegedly used the park district credit card to make unauthorized personal purchases.
The charges are the result of investigation by the Illinois State Police, the Federal Bureau of Investigation, and the Federal Deposit Insurance Corporation Office of Inspector General. The case is being prosecuted by Assistant U.S. Attorney Katherine V. Boyle.
If convicted, the offenses of wire and mail fraud (one count each) carries a maximum statutory penalty of 20 years in prison and fines of up to $250,000.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Former Chief Financial Officer of American Realty Capital Partners (“ARCP”) Charged with Accounting FraudRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and William F. Sweeney Jr., the Assistant Director-in-Charge of the New York Office of the Federal Bureau of Investigation (“FBI”), announced today the unsealing of an Indictment in Manhattan federal court charging BRIAN BLOCK, the former chief financial officer of the publicly traded real estate investment trust (“REIT”) formerly known as American Realty Capital Partners (“ARCP”). BLOCK was charged with fraudulently inflating a key metric used to evaluate the financial performance of publicly traded REITS in ARCP’s filings with the U.S. Securities and Exchange Commission (the “SEC”). BLOCK was arrested on conspiracy, securities fraud, and other charges this morning at his home in Hatfield, Pennsylvania. The case is assigned to U.S. District Judge J. Paul Oetken.
Manhattan U.S. Attorney Preet Bharara said: “As alleged, Brian Block knowingly misled the investing public through material misrepresentations about a key metric that was used to evaluate ARCP’s financial performance. All market investors are entitled to be told the truth from publicly traded companies when those investors are making decisions about where to invest their funds. And when investors are lied to about material information, as is alleged to have happened here, the perpetrators need to be investigated and prosecuted.”
FBI Assistant Director-in-Charge William F. Sweeney Jr. said: “Inflating the performance of publicly traded companies places investors at a disadvantage. Block overstated adjusted funds from operations by millions of dollars and underestimated the consequences he would face as a result. Today’s charges outline the FBI’s continued determination to root out those who unlawfully interfere with the principles of supply and demand in free-market trading.”
According to the Indictment[1] unsealed today in Manhattan federal court:
In 2014, ARCP was a publicly traded REIT headquartered in Manhattan, New York. ARCP’s securities traded under the symbol “ARCP” on the National Association of Securities Dealers Automated Quotations (“NASDAQ”) exchange.
ARCP, like many REITs, measured its financial performance through metrics besides, or in addition to, traditional measurements of company performance calculated using Generally Accepted Accounting Principles (“GAAP”). ARCP calculated and reported to the investing public a non-GAAP measure called adjusted funds from operations, or AFFO, which was designed to more accurately reflect ARCP’s cash flow and financial performance by presenting ARCP’s income before consideration of non-cash depreciation and amortization expense and by excluding certain one-time charges and expenses. REITs such as ARCP commonly reported their AFFO figures, including AFFO per share, to the investing public and in filings with the SEC. ARCP also provided forward-looking guidance to the investing public regarding their anticipated AFFO performance in upcoming time periods.
Prior to the filing of ARCP’s Form 10-Q setting forth ARCP’s financial statements for the second quarter of 2014 (the “Second Quarter 10-Q”), BRIAN BLOCK, along with Lisa McAlister and others, came to understand that the method used by ARCP to calculate AFFO in the first quarter of 2014 and in certain previous quarters was erroneously inflated. Another employee of ARCP (“CC-1”) had brought this methodological error to the attention of BLOCK, McAlister, and others shortly before the filing of ARCP’s first quarter 2014 10-Q (the “First Quarter 10-Q”), but no corrective change was made to the First Quarter 10-Q while the issue was under review. Following the filing of the First Quarter 10-Q, CC-1 concluded, and advised BLOCK, McAlister, and others, that the reported AFFO per share calculation for the first quarter of 2014 was overstated by approximately $0.03 per share. Instead of $0.26 per share, which was publicly reported by ARCP to its shareholders and the investing public, and which placed ARCP on track to meet its full-year AFFO per-share guidance, the correct AFFO for the first quarter of 2014 was $0.23 per share.
Despite his knowledge of a material error in ARCP’s previous filings with the SEC, BRIAN BLOCK took no steps to advise the Audit Committee of ARCP’s Board of Directors, or ARCP’s outside auditors, of the error in the First Quarter 10-Q. Moreover, BLOCK, McAlister, and CC-1 then knowingly facilitated the use of the same materially misleading calculations in ARCP’s Second Quarter 10-Q. For example, on or about July 24, 2014, a draft of ARCP’s Second Quarter 10-Q was circulated to members of ARCP’s Audit Committee. The draft included an AFFO calculation for the six-month period ending June 30, 2014, that incorporated AFFO figures from the first quarter of 2014 that BLOCK, McAlister, and CC-1 knew to be falsely inflated.
On or about July 28, 2014, BLOCK met with McAlister and CC-1 in his office in Manhattan for the purpose of finalizing the financial figures that were to be included in ARCP’s Second Quarter 10-Q. Utilization of a proper method to calculate ARCP’s second quarter 2014 AFFO would have exposed that the reported AFFO and AFFO per share figures from the first quarter were inflated. Accordingly, during the meeting, BLOCK, McAlister, and CC-1 inserted into a spreadsheet BLOCK was using to calculate AFFO and AFFO per share for the first and second quarters of 2014 and for the first six months of 2014 (“YTD 2014”) figures that fraudulently inflated the AFFO and AFFO per share calculations that were to be included in the Second Quarter 10-Q and the related ARCP press release. The fraudulent numbers BLOCK, McAlister, and CC-1 used to inflate the AFFO and AFFO per share figures had no basis in fact, were without documentary support, and did not tie to ARCP’s general ledger accounting system, as BLOCK knew and understood at the time. The fraudulent numbers included in the spreadsheet prepared by BLOCK were then incorporated into ARCP’s Second Quarter 10-Q, which was filed with the SEC the following day. As a result of the manipulative efforts of BLOCK, McAlister, and CC-1, ARCP’s SEC filings included AFFO and AFFO per share figures for the second quarter of 2014 and for the first six months of 2014 that were fraudulently inflated.
The Second Quarter 10-Q was signed by, among others, BRIAN BLOCK. Additionally, on a certification accompanying the 10-Q, BLOCK falsely certified, among other things, that the Second Quarter 10-Q did not contain any materially untrue statements or material omissions. He further falsely certified that he had disclosed to ARCP’s auditors and the audit committee of its board of directors: “Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.” In a second certification accompanying the 10-Q, BLOCK falsely certified that: “The quarterly report on Form 10-Q of the Company, which accompanies this Certificate, fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934, and all information contained in this quarterly report fairly presents, in all material respects, the financial condition and results of operations of the Company.”
With regard to YTD 2014 specifically, the fraud resulted in an intended overstatement of AFFO by approximately $13 million and an intended overstatement of AFFO per share by approximately $0.03, or approximately 5% of total AFFO per share. By reporting AFFO per share of $0.24 in the second quarter, after having reported AFFO per share of $0.26 in the first quarter, BRIAN BLOCK and his co-conspirators misled ARCP’s shareholders and the investing public by falsely representing that ARCP’s AFFO per share for the first six months of 2014 was consistent with analysts’ expectations and on track to meet ARCP’s guidance for AFFO per share for calendar year 2014, when in fact, they were not.
* * *
BRIAN BLOCK, 44, of Hatfield, Pennsylvania, was charged in the Indictment with one count of conspiracy to commit securities fraud and other offenses (Count One), one count of securities fraud (Count Two), two counts of making false filings with the SEC (Counts Three and Four), and two counts of submitting false certifications along with required filings with the SEC (Counts Five and Six). The securities fraud, false filings charges, and false certification charges each carry a maximum prison term of 20 years. The charge of conspiracy carries a maximum prison term of five years.
Lisa McAlister, 52, of Arlington, Massachusetts, pled guilty on June 29, 2016, before U.S. District Judge Alvin K. Hellerstein to one count of conspiracy to commit securities fraud and other offenses, one count of securities fraud, one count of making false filings with the SEC, and one count of making false statements in a matter within the jurisdiction of the executive branch of the United States Government. The securities fraud and false filings charges each carry a maximum prison term of 20 years. The conspiracy and false statements charges each carry a maximum prison term of five years.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendants will be determined by a judge.
Mr. Bharara praised the investigative work of the FBI and also thanked the Securities and Exchange Commission, which has brought a civil action against the defendants.
The charges were brought in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it is the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
This case is being handled by the Office’s Securities and Commodities Fraud Task Force. Assistant U.S. Attorneys Brian Blais, Jason Cowley, and Edward Imperatore are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the description of the Indictment set forth below constitute only allegations and every fact described should be treated as an allegation.
Former Baton Rouge Tax Preparer IndictedRead the Press Release
United States Attorney Walt Green announced today that a federal grand jury returned an indictment on September 7, 2016, charging BELVIN F. TYSON, 60, of Liberty, Mississippi with interfering with the administration of the IRS laws, access device fraud and aggravated identity theft.
The Indictment alleges that TYSON impeded the due administration of the IRS laws, by fraudulently manipulating her clients’ Schedule A deductions, Schedule C income and by adding fraudulent dependents to increase their tax refunds. The Indictment alleges that in addition to exaggerating her clients’ deductions and income, TYSON also sold the personal identifiable information of others to her clients. She used this information to claim fraudulent dependents on her client’s tax returns, which increased their tax refund. Her actions in tax year 2011 and 2012 resulted in a loss of approximately $100,000 to the United States Treasury.
The investigation of TYSON was conducted by the Internal Revenue Service Criminal Investigation. The case is being prosecuted by Assistant United States Attorney Jessica M.P. Thornhill.
NOTE: An indictment is an accusation by the Grand Jury. The defendants are presumed innocent until and unless adjudicated guilty at trial or through a guilty plea.
Florida Man Admits Role in $65 Million Stolen Identity Income Tax Refund SchemeRead the Press Release
NEWARK, N.J. – A Miami man today admitted that he was responsible for depositing over $4.7 million in fraudulently obtained tax refund checks as part of a massive stolen identity income tax scheme, U.S. Attorney Paul J. Fishman announced.
Roberto Diaz, 47, formerly of Demarest, New Jersey, pleaded guilty before U.S. District Judge Claire C. Cecchi in Newark federal court to an information charging him with one count of conspiracy to commit theft of government funds, one count of theft of government funds, and one count of aggravated identity theft.
According to documents filed in the case and statements made in court:
Members of the conspiracy obtained personal identifiers, such as dates of birth and Social Security numbers, belonging to Puerto Rican citizens. Afterwards, they completed Individual Income Tax Return 1040 Forms using the fraudulently obtained information and made it appear that the “taxpayers” listed on the fraudulent returns were entitled to refunds. They also directed the U.S. Treasury Department to issue refunds to locations they could control or access in various ways.
At his plea hearing, Diaz admitted that he received fraudulently obtained refund checks and deposited them into banks accounts he controlled or were in the names of his associates or their companies. Diaz also admitted that he and others conspired to bribe a mail carrier to intercept refund checks before they were delivered to the people who had their identity stolen as part of the scheme.
Diaz admitted that during the course of the conspiracy, he was responsible for depositing or causing the deposit of over $4.7 million in fraudulently obtained tax refund checks.
Diaz is facing potential penalties of five years in prison for the conspiracy charge and 10 years in prison for the theft of government funds charge, both of which are also punishable by a $250,000 fine or twice the gain or loss resulting from the offense. For the aggravated identity theft charge, Diaz is facing a mandatory two years in prison which must run consecutive to any other term imposed. Sentencing is scheduled for Jan. 27, 2017.
Diaz was previously charged in September 2012 along with 13 other defendants in multiple, separate criminal complaints. The $65 million scheme involved more than 8,000 fraudulent income tax returns and losses to the United States of over $12 million.
By tracing the specific IP addresses from which the returns were submitted, law enforcement officers identified that only a handful of IP addresses were responsible for filing the fraudulent returns. During the course of the investigation, law enforcement identified certain “hot spots” of activity and intercepted more than $22 million in fraudulently claimed refunds before they were delivered to members of the conspiracy.
U.S. Attorney Fishman credited special agents of IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; the U.S. Postal Inspection Service, under the direction of Acting Inspector in Charge Cynthia Shoffner; the U.S. Secret Service, under the direction of Special Agent in Charge Mark Mckevitt; the Drug Enforcement Administration, under the direction of Special Agent in Charge Carl J. Kotowski, and U.S. Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation.
The government is represented by Assistant U.S. Attorneys Mala Ahuja Harker of the U.S. Attorney’s Office Special Prosecutions Division, and Zach Intrater, Deputy Chief of the Economic Crimes Unit.
Defense counsel: Paul Brickfield, River Edge, New Jersey
Florida Doctor Indicted for Role in $13.8 Million Medicare Fraud SchemeRead the Press Release
The medical director of a clinic in Orlando, Florida, was charged in a superseding indictment filed today for his alleged participation in a $13.8 million health care fraud scheme involving claims for expensive prescription drugs and physical therapy.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney A. Lee Bentley III of the Middle District of Florida and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Miguel Burgos, M.D., 60, of Gotha, Florida, was charged with one count of conspiracy to commit health care fraud, one count of health care fraud and one count of conspiracy to make false statements relating to health care matters. He is charged along with Yosbel Marimon, 39, of Winter Park, Florida, who was charged in the original indictment filed in this case on June 15, 2016. Marimon faces one new count of health care fraud in connection with false claims submitted for physical therapy. A trial date on the superseding indictment has not yet been set.
Burgos was the medical director of several Orlando-area clinics, including Legend Medical & Rehabilitation Inc., Incare Medical & Rehab Center Inc., Assisting Health Center Inc. and CKD Health Care Inc. (collectively, the clinics). The superseding indictment alleges that from approximately July 2008 through December 2011, Burgos conspired with Marimon, one of the clinics’ owners, to defraud Medicare by causing the submission and concealment of false and fraudulent claims to Medicare. According to the indictment, Burgos allegedly signed fraudulent medical records that authorized the unnecessary treatment of Medicare beneficiaries and did so without examining the Medicare beneficiaries or the documents themselves. These documents were allegedly used to support fraudulent claims to Medicare for expensive prescription drugs and physical therapy that were not provided and were not medically necessary.
The indictment alleges that during the scheme, Burgos and his co-conspirators billed Medicare approximately $13.8 million based on the false and fraudulent claims.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Middle District of Florida. Fraud Section Trial Attorney Timothy Loper is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Florida Doctor Indicted for Role in $13.8 Million Medicare Fraud SchemeRead the Press Release
Tampa, FL – The medical director of a clinic in Orlando, Florida, was charged in a superseding indictment filed today for his alleged participation in a $13.8 million health care fraud scheme involving claims for expensive prescription drugs and physical therapy.
U.S. Attorney A. Lee Bentley III of the Middle District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Miguel Burgos, M.D., 60, of Gotha, Florida, was charged with one count of conspiracy to commit health care fraud, one count of health care fraud and one count of conspiracy to make false statements relating to health care matters. He is charged along with Yosbel Marimon, 39, of Winter Park, Florida, who was charged in the original indictment filed in this case on June 15, 2016. Marimon faces one new count of health care fraud in connection with false claims submitted for physical therapy. A trial date on the superseding indictment has not yet been set.
Burgos was the medical director of several Orlando-area clinics, including Legend Medical & Rehabilitation Inc., Incare Medical & Rehab Center Inc., Assisting Health Center Inc. and CKD Health Care Inc. (collectively, the clinics). The superseding indictment alleges that from approximately July 2008 through December 2011, Burgos conspired with Marimon, one of the clinics’ owners, to defraud Medicare by causing the submission and concealment of false and fraudulent claims to Medicare. According to the indictment, Burgos allegedly signed fraudulent medical records that authorized the unnecessary treatment of Medicare beneficiaries and did so without examining the Medicare beneficiaries or the documents themselves. These documents were allegedly used to support fraudulent claims to Medicare for expensive prescription drugs and physical therapy that were not provided and were not medically necessary.
The indictment alleges that during the scheme, Burgos and his co-conspirators billed Medicare approximately $13.8 million based on the false and fraudulent claims.
An indictment is merely an allegation and the defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Middle District of Florida. Fraud Section Trial Attorney Timothy Loper is prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
Fire Chief of the United States Air Force Indicted for Procurement Violation and Wire FraudRead the Press Release
United States Attorney Gregory J. Haanstad of the Eastern District of Wisconsin, announced that on September 7, 2016, a federal grand jury returned an indictment against James E. Podolske Jr. (age: 59) of Panama City, Florida charging him with Procurement Fraud in violation of Title 41, United States Code, Section 2102 and Wire Fraud in violation of Title 18, United States Code, Section 1343. If convicted of these offenses, Podolske Jr. faces up to 25 years imprisonment, $500,000 in fines, and 3 years of supervised release. The government is also seeking forfeiture of assets equivalent to the proceeds of any criminal activity.
According to the indictment, in February of 2013, Podolske Jr. while employed as an official with the United States Air Force, knowingly disclosed defense department contract bid or proposal information to give a competitive advantage to a corporate defense contractor identified in the indictment as “Company A.”
The indictment further alleges that between 2009 and 2013, Podolske Jr. used his position as Chief of Air Force Fire Services to defraud approximately 25 business entities or individuals out of over $133,000 intended for charity. Podolske Jr. organized an awards banquet and “charity” golf outing to coincide with a conference sponsored by the International Association of Fire Chiefs. Podolske Jr. is alleged to have actively solicited donations for his golf outing from contractors and subcontractors seeking to do business with the Air Force and Department of Defense, including several in the Eastern District of Wisconsin. Some of the donations were forwarded to charities as intended, many donations, however, were deposited in Podolske Jr.’s personal bank account. He is alleged to have converted these charitable donations for his personal use to pay off credit card debt, pay for vacations, and for gambling at Gulf Shore casinos.
This case was investigated by the U.S. Air Force Office of Special Investigations, the Federal Bureau of Investigation, the Defense Criminal Investigation Service, and the Naval Criminal Investigation Service. The case is being prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
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Federal Authorities Announce Closure Without Prosecution of San Antonio Civil Rights Investigation Involving the Arrest of Rogelio CarlosRead the Press Release
U.S. Attorney Richard L. Durbin, Jr., announced today that after a lengthy and comprehensive investigation, the U.S. Attorney’s Office, together with the Civil Rights Division of the Department of Justice, and the Federal Bureau of Investigation have concluded that there is not sufficient evidence to prosecute San Antonio Police Officers based on the arrest of Rogelio Carlos in May 2014. The investigation did not develop sufficient evidence to prove beyond a reasonable doubt that police officers knowingly and willfully used excessive force to deprive Mr. Carlos of his civil rights. The investigation has been closed.
Fair Oaks Man Pleads Guilty to Bank Fraud, Aggravated Identity Theft, and Illegal Possession of Identification DocumentsRead the Press Release
SACRAMENTO, Calif. — Trevor Kintaro Lichnock-Gembe, 28, of Fair Oaks, pleaded guilty today to bank fraud, aggravated identity theft, and unlawful possession of identification documents of others, Acting United States Attorney Phillip A. Talbert announced.
According to court documents, between June 14, 2105, and June 1, 2016, Lichnock-Gembe and co-defendant Shellby L. Moore, 29, of Sacramento, stole mail and obtained other stolen property containing personal and financial information of victims from residential and vehicle burglaries in Placer County, Sacramento County, and El Dorado County. Lichnock-Gembe and Moore used stolen mail and victim identification and financial information to alter and manufacture checks that were cashed at the expense of local banks and credit unions. Lichnock-Gembe possessed over five different stolen victim identifications, and he and Moore opened bank accounts using the stolen personal and financial information in order to deposit stolen checks and withdraw cash. Lichnock-Gembe was arrested on June 1, 2016, while fleeing a Sacramento apartment complex at which he had just stolen mail.
This case is the product of an investigation of the United States Postal Inspection Service, with assistance from the Sacramento County Sheriff’s Office and the Placer County Sheriff's Office. Assistant United States Attorney Michelle Rodriguez is prosecuting the case.
Lichnock-Gembe is scheduled to be sentenced by U.S. District Judge Morrison C. England Jr. on December 1, 2016. Lichnock-Gembe faces up to 30 years for bank fraud conviction and up to 15 additional years for the false documents conviction. Lichnock-Gembe will receive two additional consecutive years in prison for his use of another's identity to commit the bank fraud offenses. The actual sentence, however, will be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables.
Moore is scheduled for a status conference on October 6, 2016, before Judge England. The charges against her are only allegations; she is presumed innocent until and unless proven guilty beyond a reasonable doubt.
East St. Louis Man Sentenced to Prison for Gun PossessionRead the Press Release
Damian D. Kelly, 21, of East St. Louis, IL, was sentenced today in the U.S. District Court for the Southern District of Illinois to 30 months in prison and 3 years of supervised release on one count of Possession of a Weapon by a Felon. Kelly had been in possession of a .22 caliber revolver and had previously been convicted of Attempted Armed Robbery and Residential Burglary. He was on mandatory supervised release for those offenses when he was caught with the firearm.
The case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives and was prosecuted by Assistant United States Attorney Laura Reppert.
East Lyme Fisherman Sentenced to Federal Prison for Tax EvasionRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that PETER TORRES, 48, of East Lyme, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to three months of imprisonment, followed by three years of supervised release, for tax evasion.
According to court documents and statements made in court, from 2006 to 2011, TORRES failed to file tax returns and report to the Internal Revenue Service approximately $1.27 million in gross income generated through his work as a commercial fishing boat captain.
On November 30, 2015, TORRES pleaded guilty to one count of attempted tax evasion, admitting that he was issued Forms 1099 that documented the income paid to him for each tax year, but he failed to timely file his tax returns as required and report the income and tax due to the IRS. In his plea agreement, TORRES agreed that the tax loss for this period is between $250,000 and $550,000.
TORRES also admitted that, in an effort to conceal his income from the IRS, he negotiated checks he received as payment for his fishing services by depositing them in the bank and, on the same day, withdrawing cash or obtaining bank checks in varying amounts under $10,000.
As part of his guilty plea, TORRES acknowledged that he attempted to evade the assessment and payment of his taxes for the 2006 through 2011 tax years. He will enter into a payment plan with the IRS to repay the back taxes and applicable penalties and interest.
This case was investigated by the Internal Revenue Service – Criminal Investigation Division, and was prosecuted by Assistant U.S. Attorney Anastasia E. King.
Eagle Butte Man Sentenced for Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Failure to Register as a Sex Offender was sentenced on August 30, 2016, by U.S. District Judge Roberto A. Lange.
Cletis Creek, age 54, was sentenced to 12 months and one day in custody, followed by 5 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Fund.
Creek was indicted by a federal grand jury on May 17, 2016. He pled guilty on June 14, 2016.
Creek was convicted of Sexual Contact with a Person Incapable of Consenting in Sixth Judicial Circuit, Hughes County, South Dakota, in January 2008. He was sentenced to 4 years in the State Penitentiary. Creek is required to register quarterly as a sex offender for the rest of his life. In October 2015, Creek registered with an address in Eagle Butte. He was to register next in January 2016. On January 8, 2016, a sex offender registry compliance officer met with Creek and inquired when he would be coming in to register. Creek became irate and advised the he would not be coming in to register and that he was going to register only once a year. Creek did not register in January or before the end of April 2016, the end of the next three-month cycle.
This case was investigated by the U.S. Marshals Service and the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Creek was immediately turned over to the custody of the U.S. Marshals Service.
District Man Pleads Guilty to Shooting at Man Outside Southeast Washington Carry-Out RestaurantRead the Press Release
WASHINGTON - Tyarn Thompson, 36, of Washington, D.C., has pled guilty to charges stemming from a shooting that took place in broad daylight last spring outside a Southeast Washington carry-out restaurant, U.S. Attorney Channing D. Phillips announced today.
Thompson pled guilty on Sept. 7, 2016, in the Superior Court of the District of Columbia, to one count of assault with intent to kill. The plea, which is contingent upon the Court’s approval, calls for a prison term of four to six years. The Honorable Florence Pan scheduled sentencing for Nov. 18, 2016.
According to the government’s evidence, on May 12, 2016, at approximately 11:40 a.m., Thompson encountered the victim at a carry-out restaurant in the 2900 block of Naylor Road SE. Thompson then confronted the victim regarding a fight they had earlier in the week over the victim’s girlfriend. As the victim was leaving the restaurant, Thompson approached him, brandished a gun, and fired several shots at him as the victim tried to run away. The victim stumbled and fell and Thompson fired additional shots. The victim’s sweatshirt was grazed by one of the bullets Thompson fired. Thompson then fled the scene before officers arrived.
Officers with the Metropolitan Police Department (MPD) identified Thompson as the shooter and an arrest warrant was issued on May 13, 2016. Thompson has been in custody since his arrest on June 6, 2016. As part of his plea, Thompson admitted to shooting at the victim and placing a call the day beforehand informing a witness that he intended to kill the victim.
In announcing the plea, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Victim/Witness Advocates Elsa Maltese and Lu Lan; Supervisor Security Specialist Michael Hailey; and Paralegal Specialist Tiffany Jones. Finally, he acknowledged the efforts of Assistant U.S. Attorney Sumit Mallick, who investigated and prosecuted the case.
Chiropractor Sentenced to Prison for Filing False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that PAUL CARPENTER, 65, of Easton, was sentenced yesterday by U.S. District Judge Victor A. Bolden in Bridgeport to two months of imprisonment, followed by one year of supervised release, for filing false tax returns. Judge Bolden also ordered CARPENTER to perform 100 hours of community service and pay a $30,000 fine.
According to court documents and statements made in court, CARPENTER operated a chiropractic practice in Bridgeport. For the 2008 and 2009 tax years, CARPENTER intentionally mischaracterized almost $500,000 in personal expenses as deductible business expenses on his Schedule C relating to his chiropractic practice, including college tuition for his children, luxury items such as oriental rugs and paintings, designer clothing, and foreign and domestic travel. He also deducted the cost of groceries, expenses at hair salons and other retail purchases.
For the 2008 tax year, CARPENTER took false deductions totaling $308,084, resulting in a tax loss of $106,395, and for the 2009 tax year, he took false deductions totaling $183,283, resulting in a tax loss of $81,199.
CARPENTER has paid all back taxes, plus interest and penalties.
On May 20, 2016, CARPENTER pleaded guilty to one count of filing a false tax return.
This matter was investigated by the Internal Revenue Service, Criminal Investigation Division. The case was prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
Child Sexual Predator Sentenced to 60 Years in Federal PrisonRead the Press Release
PORTLAND, Ore. – On Thursday, September 8, 2016, U.S. District Judge Michael H. Simon sentenced Steven Douglas Rockett to 60 years in federal prison followed by a life term of supervised release. Rockett, 47, was convicted by a federal jury in Portland, Oregon for producing child pornography outside the United States, engaging in illicit sexual conduct in foreign places, producing and attempting to produce child pornography (five counts), and possession of child pornography after a seven-day trial in May of this year.
Prosecutors presented victim impact statements from Filipino child victims as well as statements from Rockett’s victims in Oregon. The prosecutors urged the Court to impose a sentence of no less than 60 years – 45 consecutive to Rockett’s 52.5-year sentence in Oregon State court for crimes committed against a number of different victims. Rockett’s attorneys requested the mandatory minimum sentence of 15 years, imposed to run concurrently with Rockett’s state sentence, which is presently on appeal. “One of civil society’s most important duties and obligations is to protect the most vulnerable among us. Children are the most vulnerable,” observed Judge Simon before agreeing with the prosecution’s recommendation and sentencing Rockett to 60 years – 45 to be served consecutive to the Rockett’s state sentence.
Judge Simon noted that these were “extremely serious offenses.” He expressed doubt that Rockett could refrain from committing further crimes if released from prison. Judge Simon imposed a sentence designed to ensure that Rockett would not harm any other children stating, “I don’t think you are capable of restraining yourself.”
The evidence presented at trial established that Rockett traveled to the Philippines, where he sexually abused Filipino children, and produced or attempted to produce child pornography depicting them. The evidence also established that Rockett solicited children (either directly or through a parent) both in the Philippines and in Oregon, to take and send him sexually explicit images of themselves. In addition, Rockett surreptitiously recorded children undressing and showering at his residence in Forest Grove, at a former residence in Aloha, and in hotel rooms in the Philippines.
The investigation was a collaborative effort on the part of the Forest Grove Police Department, the Washington County Sheriff’s Office, and the FBI. Investigators executed search warrants at Rockett’s residence, and seized computer equipment and digital data storage devices. Investigators found a pin-hole camera hidden in a wall in a guest bathroom, which Rockett used to record images of naked children. Another spy camera, hidden inside a clock radio, contained surreptitious video recordings of naked Filipino children in the bathroom and shower of Rockett’s hotel room. Rockett appeared in some of the videos.
FBI Special Agents traveled to Cebu City, Philippines, where they identified and interviewed some of the victims depicted in the videos, and some of the children who Rockett solicited to send him sexually explicit images. The jury heard testimony from seven victims who were sexually abused or exploited by Rockett in Oregon and overseas. The jury deliberated several hours before reaching their verdict.
“This sentence is a just and deserving punishment for a dangerous sexual predator, and reflects the life-long impact his conduct will have on his victims,” said Billy J. Williams, U.S. Attorney for the District of Oregon. “I am grateful for the dedication and collaboration between the federal government and our state and local partners who diligently followed the evidence in this case, and for their continued efforts to keep children safe here in Oregon and outside the United States.” Williams added, “We will not tolerate American citizens traveling abroad to sexually abuse children. Child sexual predators like Steven Rockett must understand that the sexual exploitation of children carries severe consequences, as Judge Simon’s sentence clearly demonstrates.”
“Effectively, Steven Rockett will, rightfully, live the rest of his life behind bars. I would ask the community to remember that the innocent children who suffered his abuse will also pay a heavy price for many years to come,” said Greg Bretzing, Special Agent in Charge of the FBI in Oregon. “No child deserves to live a life of violence and violation, and it is our responsibility to bring justice to them and their families.”
This case was investigated by the Forest Grove Police Department, the Washington County Sheriff’s Office, the FBI, the Northwest Regional Computer Forensics Laboratory, and the Washington County District Attorney’s Office. Assistant U.S. Attorneys Paul T. Maloney and Gary Y. Sussman prosecuted the case in federal court.
This case stemmed from a coordinated investigation by members of the FBI Child Exploitation Task Force and was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse. Launched in May 2006 by the U.S. Department of Justice and led by United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to better locate, apprehend, and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
Anyone who has information about the physical or online exploitation of children are encouraged to call the FBI at (503) 224-4181 or submit a tip online at www.fbi.gov/tips.
Child Pornography Charges Filed Against Montegut ManRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TYLER DAVIS, age 21, of Montegut, Louisiana, was indicted today for crimes involving the sexual exploitation of children.
According to today’s Indictment, beginning at an unknown time to on or about July 13, 2015, DAVIS knowingly possessed images and videos depicting the sexual victimization of minors. DAVIS is charged in a two-count Indictment with possessing a Samsung Galaxy cell phone and a Dell Inspiron laptop computer, both containing pre-pubescent images and videos of children less than twelve-years-old.
If convicted, DAVIS faces a maximum sentence of up to twenty (20) years imprisonment, followed by up to a lifetime term of supervised release, and a $250,000 fine.
U. S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
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."
U.S. Attorney Polite praised the work of the U.S. Department of Homeland Security, Homeland Security Investigations (HSI Houma), HSI Ottawa, and the York Regional Police Special Victim’s Unit, Ottawa, Canada, in investigating this matter. Project Safe Childhood Coordinator and Fraud Section Chief, Assistant U.S. Attorney Brian M. Klebba is in charge of the prosecution.
Chicago-Area Man Sentenced for Heroin DistributionRead the Press Release
Dwayne K. Thompson, 38, of Oak Park, Illinois, was sentenced on September 7, 2016 in U.S. District Court for the Southern District of Illinois to 121 months in prison and 3 years of supervised release on two counts of Conspiracy to Distribute Heroin and Attempted Distribution of Heroin.
Thompson pled guilty to the federal charges on September 4, 2015. At his change of plea hearing, Thompson admitted that he had supplied heroin for re-sale in Belleville, Illinois to his co-defendants Mario McCarter, Fetara D. McCarter and Ronald G. Murphy between 2013 and 2015. All three of Thompson’s co-defendants were previously sentenced to terms in federal prison for their part in the conspiracy.
The investigation which resulted in the arrests and convictions of Thompson and his co-defendants was conducted by the Drug Enforcement Administration (DEA). The case was prosecuted by Assistant United States Attorney Robert L. Garrison.
Charleston Man Charged with Embezzling from Former EmployerRead the Press Release
Springfield, Ill. – A Charleston, Ill., man, James Michael Hill, 39, has been charged by indictment with embezzling from his former employer, a Mattoon restaurant. The indictment, returned Sept. 7, charges Hill, of the 2700 block of Krishire Dr., with embezzling approximately $150,000 from the Stadium Grill restaurant in Mattoon, Ill., when he was employed as a general manager.
According to the indictment, as general manager of the restaurant, Hill could access the restaurant’s accounting system to correct errors made by other employees in entering purchases. From 2009 to August 2013, the indictment alleges that Hill made materially false representations in the Check Adjustment Reports that represented that certain cash sales had not occurred or occurred for a lesser amount, and then took and used the cash generated for his personal use. Further, Hill allegedly falsely represented that certain sales were incorrectly entered into the accounting system as purchases made with cash and fraudulently entered them as purchases made with gift cards. Hill then allegedly took and used the cash generated by those sales for his personal use and benefit.
If convicted, each count of wire fraud (four counts) carries a penalty of up to 20 years in prison and a fine of up to $250,000.
Hill will be issued a summons to appear in federal court in Urbana for arraignment on a date to be determined by the U.S. Clerk of the Court.
The charges are the result of an investigation by the Federal Bureau of Investigation and the Mattoon Police Department. U.S. Attorney Eugene L. Miller is prosecuting the case.
Members of the public are reminded that an indictment is merely an accusation; the defendant is presumed innocent unless proven guilty.
Charges Brought Against Two Allenwood Federal Prison Inmates in Separate CasesRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced that a federal grand jury in Williamsport has indicted two federal inmates in cases resulting from separate incidents.
In March 2016 while incarcerated at the United States Penitentiary at Allenwood, Gelnvert Green, age 25, approached a female corrections officer, exposed himself to her, and began making obscene gestures while continuing to move towards her.
Joshua Grant, age 28, was found with an improvised shank during a search in February 2016, while he was incarcerated at the United States Penitentiary at Allenwood.
The investigations were conducted by the Federal Bureau of Investigation, and the Bureau of Prisons Special Investigative Service. Special Assistant United States Attorney Michael Figgsganter has been assigned to prosecute the case.
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 statues and the Federal Sentencing Guidelines. In the Green case, the maximum penalty is 2 years’ imprisonment, a term of supervised release following imprisonment, and a fine of $5,000. In the Grant case, the maximum penalty for each count is 5 years’ imprisonment, a term of supervised release following imprisonment, and a fine of $250,000.
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 necessarily an accurate indicator of the potential sentence for a specific defendant.
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Cary Man Sentenced to Federal Prison for Bank Robberies in Crystal Lake and WoodstockRead the Press Release
ROCKFORD — A Cary, Ill. man was sentenced Wednesday in federal court by U.S. District Judge Frederick J. Kapala for the robberies of the Fifth Third Bank branch located at 265 West Virginia, Crystal Lake, Illinois, on March 30, 2015, and the Fifth Third Bank branch located 1745 South Eastwood Drive, Woodstock, Ill., on April 15, 2015.
MICHAEL L. FETERICK, 46, was sentenced to 49 months in federal prison, to be followed by 3 years of supervised release, and was ordered to pay restitution of $7,062. Feterick, who pleaded guilty on May 25, 2016, admitted that when he entered each bank he presented a note stating, “Money, no dye pack,” to a bank teller. Both tellers provided Feterick with money from the tellers’ drawers and Feterick then left the banks. Feterick was arrested on April 15, 2015, by the FBI and officers of the Crystal Lake and Woodstock Police Departments, at a hotel in Algonquin, Ill. Feterick has remained in federal custody since his arrest.
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of Federal Bureau of Investigation; John L. Lieb, Chief of the Woodstock, Illinois Police Department; and James R. Black, Chief of the Crystal Lake, Illinois Police Department. The U.S. Marshals Service, and law enforcement officers of the McHenry County Sheriff’s Department and the Algonquin, Illinois Police Department assisted in the investigation.
The government is represented by Assistant U.S. Attorney Joseph C. Pedersen.
Canby Man Sentenced to Prison for Stealing More Than $294,000 in Social Security BenefitsRead the Press Release
PORTLAND, Ore. – On Wednesday, September 7, 2016, the grandson of a deceased Social Security beneficiary was sentenced to prison for stealing more than $294,000 of benefits mistakenly paid to his grandmother following her death. Ricky Lee Carlson, 63, pled guilty to theft of government funds in May, and was sentenced by U.S. District Court Judge Marco A. Hernandez to 12 months and one day in prison.
According to court records, Carlson’s grandmother was using two different names and Social Security numbers at the time of her death in 1986. The Social Security Administration (SSA) was notified of the death under one identity, but her benefits continued to be paid each month under the other identity. In April 1995, Carlson opened a bank account in his grandmother’s name, and directed SSA to deposit her benefits into that account. Carlson then converted the funds to his own use by writing checks payable to himself, paying bills, and making ATM withdrawals. Between March 1986 and December 2013, Social Security benefits in the amount of $303,960.60 were improperly paid on the grandmother’s behalf. When SSA discovered the theft, only $9,518 remained in the account.
Carlson was ordered to surrender to the Bureau of Prisons to begin his sentence on January 17, 2017. The court also ordered him to pay restitution to SSA for the full amount of benefits stolen, and to serve a three-year term of supervised release.
The case was investigated by the SSA Office of the Inspector General, Office of Investigations, and was prosecuted by Special Assistant U.S. Attorney Helen Cooper as part of a partnership venture between the SSA Seattle Region, SSA Office of the General Counsel, and the U.S. Attorney’s Office in Portland, Oregon.
California Woman Sentenced to Prison for Federal Cocaine Trafficking Conviction in New MexicoRead the Press Release
ALBUQUERQUE – Neisha Necel Williams, 36, of Los Angeles, Calif., was sentenced today in federal court in Albuquerque, N.M., to 70 months in prison followed by three years of supervised release for her cocaine trafficking conviction.
Williams was arrested in May 2015, on a criminal complaint charging her with a cocaine trafficking offense after the DEA seized .70 kilograms (1.54 pounds) of cocaine from her during an interdiction investigation at the Greyhound Bus Station in Albuquerque on May 18, 2015. The cocaine was concealed in a bundle underneath Williams’ clothes. Williams was indicted on June 9, 2015, and charged with possession of cocaine with intent to distribute.
On April 18, 2016, Williams pled guilty to a felony information charging her with possession of cocaine with intent to distribute. In entering the guilty plea, Williams admitted that on May 18, 2015, while traveling through Albuquerque on a Greyhound bus, she possessed .70 kilograms of cocaine, which was wrapped in a bundle and concealed underneath her clothes. Williams further admitted that she was to be paid for transporting the cocaine from Los Angeles to Macon, Ga.
This case was investigated by the Albuquerque office of the DEA and was prosecuted by Assistant U.S. Attorney Kimberly A. Brawley.
Boise Doctor Convicted of Controlled Substance DeliveryRead the Press Release
BOISE – Michael Minas, 50, of Boise, Idaho, was sentenced today to eight years in federal prison on 80 counts of unlawfully distributing controlled substances outside the usual course of professional practice and not for a legitimate medical purpose, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Minas to pay an $80,000 fine and to forfeit proceeds of $8,000. During the sentencing hearing, Judge Lodge stated that “doctors must be part of the solution, not the source of the problem.” Minas was convicted in May at the end of a 14-day federal jury trial in Boise.
"The lengthy prison sentence imposed by the Court well serves the interests of justice in this case," said Olson. "Medical doctors who knowingly prescribe powerful and addictive painkillers without a legitimate medical purpose are no different than drug dealers. They abuse the trust of their patients, and they create both a public safety and a public health problem.”
In April 2015, a federal grand jury charged Minas with 146 counts of distributing a controlled substance. On May 6, 2016, the jury returned a verdict of 80 counts guilty and 59 counts not guilty. The United States dismissed seven counts during trial.
Evidence at trial showed that Minas knowingly and intentionally prescribed controlled substances outside the usual course of professional practice and not for a legitimate medical purpose. The controlled substance Minas illegally distributed was primarily oxycodone 30 mg, but the jury also found Minas guilty of distributing fentanyl and hydromorphone. The jury heard evidence that Minas wrote prescriptions for extraordinary dosages, such as 240, 300, and even 420 oxycodone 30 mg. It also heard evidence that he often wrote prescriptions at intervals of two or three weeks, but wrote dosage instructions on the prescriptions indicating that it was a month’s supply. The jury also heard evidence that Minas wrote prescriptions for drugs that present a risk of negative interaction with oxycodone, such as benzodiazepines, sedatives, and muscle relaxers. Minas generally charged $100 cash for an appointment. Several former employees testified that Minas’s practice transitioned over time from a standard family practice to one catering to patients claiming chronic pain and seeking opioid narcotics. Many of Minas’s patients testified that the prescriptions issued by the defendant fed the patients’ addiction and resulted in substantial negative effects on their lives.'
Minas operated the River Medical Family Practice in Eagle until his arrest in June of 2014. He had been released pending trial. During that time, Minas has been prohibited from writing prescriptions and from engaging in the practice of medicine except for the limited purpose of transferring patient records so that patients may see other providers. He also was required to relinquish any prescription pads in his possession. Minas has been in custody since his conviction at trial.
The case was investigated by the Drug Enforcement Administration (DEA) led Tactical Diversion Squad which is comprised of law enforcement personnel from the DEA, Ada County Sheriff’s Office, Boise Police Department, Idaho State Police, Meridian Police Department, Nampa Police Department and U.S. Department of Health and Human Services Office of Inspector General.
Beaver County Drug Dealer Goes Back to Federal PrisonRead the Press Release
PITTSBURGH - A resident of Beaver County, Pennsylvania, has been sentenced in federal court to another 36 months of incarceration as a result of violating his federal supervision, United States Attorney David J. Hickton announced today.
United States District Judge T. McVerry imposed the sentence on Lawrence Poe Williams, formerly of New Brighton, Pennsylvania.
According to information presented to the court, Williams was on both federal supervision and state parole during March and April of 2015. Within that one-month period, he was charged with four different drug-related cases. On March 11, 2015, members of the Pennsylvania Attorney General’s Task Force placed calls to the defendant in an effort to make a controlled purchase of drugs. Williams’ girlfriend later actually delivered the drugs. On March 27, 2015, police stopped the defendant in a vehicle and found him to possess $1,923.00 in cash and a key to a hotel. A scan of the money revealed high levels of drugs. On April 6, 2015, police stopped individuals coming from Williams’ residence. They possessed crack cocaine they admitted to buying from Williams. On April 10, 2015, the defendant’s residence was searched and police located: cocaine; MDEA (a methamphetamine-like drug); heroin; electronic scales, cellphones; pills; and approximately $641.00 in cash.
Prior to imposing sentence, Judge T. McVerry considered Williams’ eleven prior convictions and determined that the 36 month sentence was “sufficient, but not greater than necessary”.
Assistant United States Attorney Ross E. Lenhardt of the Violent Crime Section prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended The United States Probation Office, The Pennsylvania Board of Probation and Parole, The Pennsylvania Office of the Attorney General, the New Brighton Area Police Department, The Center Township Police Department and the Drug Enforcement Administration (DEA) for the investigation leading to the successful prosecution ofWilliams.