Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
30 August 2016
Lafayette business owner sentenced to 10 years in prison for defrauding investors out of $2 millionRead the Press Release
ALEXANDRIA, La. – United States Attorney Stephanie A. Finley announced that a Lafayette woman was sentenced Monday to 120 months in prison for defrauding investors out of more than $2 million.
Catherine Doucet Romero, 53, of Lafayette, La., was sentenced by U.S. District Judge Dee Drell on one count of wire fraud and one count of money laundering. She was also sentenced to three years of supervised release and ordered to pay $2,043,007 in restitution. According to the August 31, 2015 guilty plea, from March 2007 to July 2009, Romero convinced victims to invest by telling them that their money was going to be used to purchase a manufacturing facility and tannery for exotic skin products, to include alligator and stingray. Instead, Romero used the money to pay personal bills and expenses of an unrelated business. The amount stolen in the scheme is $2,043,007.
As noted by the Court at sentencing, Romero began the scheme shortly after being released from jail as a result of both a state and federal conviction for engaging in a different scheme to defraud in the early 1990s.
The FBI conducted the investigation. Assistant U.S. Attorney John Luke Walker prosecuted the case.
KC Man Sentenced to 15 Years for Meth, FirearmsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man was sentenced in federal court today for illegally possessing methamphetamine and firearms.
Michael Knight, 36, of Kansas City, was sentenced by U.S. District Judge Roseann Ketchmark to 15 years in federal prison without parole.
On April 4, 2016, Knight pleaded guilty to possessing methamphetamine with the intent to distribute and to possessing a firearm in furtherance of the drug-trafficking crime.
Knight was arrested on Jan. 26, 2015, when the vehicle he was driving was stopped after leaving a residence that was under surveillance. Knight had approximately 1.41 grams of methamphetamine in his front pants pocket. Police officers searched Knight’s vehicle and found a loaded Taurus .44-caliber revolver under the front passenger seat, a Ziploc bag containing approximately 232 grams of methamphetamine, a folded paper containing .1 gram of heroin, a digital scale and two cell phones.
Officers also searched Knight’s hotel room and found a Wesson Arms .44-caliber magnum revolver lying on the bed and ammunition in the nightstand. Investigators found photos of Knight holding the firearms on his cell phone.
This case was prosecuted by Assistant U.S. Attorney Bruce E. Clark. It was investigated by the Kansas City, Mo., Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Justice Department Settles Housing Discrimination Lawsuit Involving Seven Michigan Apartment ComplexesRead the Press Release
The Justice Department and the U.S. Attorneys’ Offices of the Eastern and Western Districts of Michigan today announced an agreement with the owners and operators of seven Michigan apartment complexes to resolve allegations that they discriminated against families with children in violation of the Fair Housing Act.
The lawsuit was filed on Nov. 19, 2015, in the U.S. District Court for the Eastern District of Michigan. The lawsuit alleged that the defendants, including the rental manager Sudi Hopper, as well as the corporate entities that own the complexes, Parkside East Inc., Holt Manor Inc. and Kelly Manor Inc., discriminated against families with children by prohibiting them from renting one-bedroom units in the defendants’ apartment complexes. The allegations were based on evidence generated by the Fair Housing Center of Southeastern Michigan, which had testers posing as prospective residents contact the defendants and ask to rent one-bedroom apartments. Testers who said that they wanted to rent an apartment with their child were told that children were not allowed in one-bedroom units. The Fair Housing Center filed a lawsuit, which was resolved separately.
Under the terms of the consent decree, which still must be approved by the court, the defendants will establish a settlement fund of $20,000 to compensate victims of their discriminatory practices. The defendants will also pay $5,000 in civil penalties to the United States. In addition, the defendants will eliminate the restrictions on children that they previously imposed at the seven complexes that they own and operate. Those complexes are: Parkside East Apartments in East Lansing, Michigan; Holt Manor Apartments and C and H Apartments in Holt, Michigan; Kelly Manor Apartments in Owosso, Michigan; Camelot Apartments in Lansing, Michigan; Pine Cove Apartments in DeWitt, Michigan; and Park Place Apartments in Williamston, Michigan. The agreement also requires that defendants inform tenants of their new nondiscriminatory policies and provide training on the Fair Housing Act to their staff and agents.
“Housing provides a critical foundation for economic security and opportunity,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Families with children deserve access to housing that meets their needs without facing unlawful discrimination. The Justice Department will continue to enforce the Fair Housing Act to ensure that families with children have the same rights to housing within their price range as people without children.”
“The law prohibits landlords from refusing to rent to people with children,” said U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan. “We commend the defendants in this case for agreeing to change their policies and pay damages to victims for their past discriminatory practices. This settlement will further the goal of the Fair Housing Act to protect families from discrimination because they have children.”
“Adequate housing is a fundamental need for families and equal access to that housing must be protected,” said U.S. Attorney Patrick A. Miles Jr. of the Western District of Michigan. “Our ongoing actions to enforce the Fair Housing Act provide that protection.”
This case was handled jointly by the Civil Rights Division’s Housing and Civil Enforcement Section and the U.S. Attorneys’ Offices of the Eastern and Western Districts of Michigan.
The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability. More information about the Civil Rights Division and the laws it enforces is available at www.justice.gov/crt. Individuals who believe that they have been victims of housing discrimination can call the Housing Discrimination Tip Line at 1-800-896-7743, e-mail the Justice Department at [email protected] or contact HUD at 1-800-669-9777. Residents of the Eastern District of Michigan can also contact the U.S. Attorney’s Office of the Eastern District of Michigan’s Civil Rights Hotline at 313-226-9151 or [email protected]. Residents of the Western District of Michigan can contact the U.S. Attorney’s Office of the Western District of Michigan’s Civil Rights Hotline at 616-808-2004 or [email protected].
Parkside East Consent Decree
Jay Man Sentenced to a Year and a Day for Federal Program FraudRead the Press Release
Contact: Donald E. Clark
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Timothy P. Gallagher, 47, of Jay, Maine, was sentenced today in U.S. District Court by Judge Jon D. Levy to a year and a day in prison and three years of supervised release for federal program fraud. He was also ordered to pay $79,639 in restitution. He pled guilty on April 14, 2016.
According to court records, between May and November 2014, the defendant embezzled $79,639 from Stanford Management LLC (“Stanford”), a property management company specializing in affordable housing that received millions of dollars in federal benefits each year under programs administered by the U.S. Department of Housing and Urban Development (“HUD”) and the U.S. Department of Agriculture (“USDA”). While employed as a full-time construction manager at Stanford, Gallagher set up a competing construction company and paid it to hire subcontractors to perform work on Stanford properties, the job he was being paid a wage to perform. He also concealed his ownership of the competing construction company from Stanford and the federal agencies.
The case was investigated by HUD, Office of Inspector General and the USDA, Office of Inspector General, with assistance from the Jay Police Department.
Jackson Park Shooter Sentenced to Statutory MaximumRead the Press Release
A Dubuque man who fired at least seven shots into Jackson Park was sentenced today to 10 years in federal prison.
Cowan Godfrey, 31, from Dubuque, Iowa, received the prison term after a March 8, 2016, guilty plea to felon in possession of ammunition.
Evidence at sentencing showed that on April 1, 2015, Godfrey, and fellow gang members, went to Jackson Street Park, in Dubuque, Iowa. While at the park, Godfrey and his associates became involved in an altercation with another group of individuals. During the altercation Godfrey retrieved a firearm from a nearby car and fired at least seven shots into the park. Numerous children and families were present during the shooting and a least one bullet hit playground equipment. No one was injured.
Godfrey was sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. Godfrey was sentenced to 120 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Godfrey is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-cr-1027.
Follow us on Twitter @USAO_NDIA.
Investment Advisor Pleads Guilty to Stealing from ClientsRead the Press Release
ATLANTA - Robert A. Gist, who defrauded investors by lying about their investments, has pleaded guilty to a charge of mail fraud. The defendant used investors’ money to pay his personal expenses and to fund operations of a company in which he had a personal interest.
“Firms that offer to manage investments for clients have an ethical and fiduciary responsibility to do what they promise,” said U.S. Attorney John Horn. “Sadly, we see outliers like this who steal from their clients. Investors must be careful to do their homework before trusting a financial services firm with their hard-earned money.”
“The number of times we investigate cases like this is overwhelming and discouraging,” said FBI Atlanta Acting Special Agent in Charge George Crouch. “The heartless disregard for the victim’s hard-earned investments cannot be tolerated and we will continue to relentlessly pursue individuals like Mr. Gist.”
According to U.S. Attorney Horn, the charges and other information presented in court: Gist was a registered broker who controlled the investment firm, Gist, Kennedy & Associates, and had more than 30 clients who invested more than $5 million with him. Gist obtained investment funds from his clients by misrepresenting that he would make certain conservative investments for them in corporate bonds and other securities. Instead, he took the funds from his clients and used them for personal expenses, to fund the operations of ENCAP Technologies (an industrial coating company), and to pay other clients purported dividends and proceeds from the investments he falsely claimed to have made for those other clients. Gist perpetrated the fraud by preparing and mailing false account statements to his clients that falsely showed the conservative investments and returns he was supposed to make but never did. The victims lost all of their investments.
Sentencing for Robert A. Gist, 65, of Atlanta, Georgia, is scheduled for December 1, 2016, at 10:00 a.m., before U.S District Judge Eleanor L. Ross.
This case is being investigated by the Federal Bureau of Investigation. Considerable assistance was provided by the Atlanta office of the United States Securities and Exchange Commission.
Assistant United States Attorney Christopher J. Huber is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Gladstone Man Sentenced to 18 Years for Child PornRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Gladstone, Mo., man was sentenced in federal court today on charges related to receiving and attempting to distribute child pornography over the Internet.
Jack E. Grubb III, 35, of Gladstone, was sentenced by U.S. Chief District Judge Greg Kays to 18 years and four months in federal prison without parole. The court also sentenced Grubb to supervised release for the rest of his life following incarceration.
On March 23, 2016, Grubb pleaded guilty to receiving child pornography over the Internet on Oct. 27, 2013. Grubb also admitted that he attempted to distribute child pornography over the Internet on Nov. 7, 2013, and that he was in possession of child pornography on Jan. 23, 2014.
Grubb utilized a peer-to-peer file-sharing program to receive and distribute child pornography. Undercover law enforcement officers downloaded a number of child pornography images from Grubb’s computer, which made at least 25 files of interest available. Among the downloaded files were one 13-minute and one 10-minute video that depicted graphic sexual assaults by an adult male on little girls between 8-to-9 and 10-to-12 years old. A search warrant was executed at Grubb’s residence and his computer equipment was seized.
Grubb kept a substantial amount of child pornography on various hard drives and SD cards. Some of the images were of adult males engaged in sexual activity with children who appeared to be as young as two years of age. In addition, one 26-minute video depicted a 9-to-10-year-old female.
This case was prosecuted by Assistant U.S. Attorney Catherine A. Connelly. It was investigated by the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Georgia Man Sentenced to 57 Months in Prison for Immigration Fraud for Failing to Disclose Role in Bosnian Prison CampRead the Press Release
A Loganville, Georgia, man was sentenced to serve 57 months in prison for obtaining his U.S. citizenship by providing false and fraudulent information on his naturalization application.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney John Horn of the Northern District of Georgia and Special Agent in Charge Nick S. Annan of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) in Atlanta made the announcement.
Mladen Mitrovic, 55, who is originally from Bosnia and Herzegovina, was sentenced on Aug. 26, 2016, by U.S. District Judge Amy Totenberg of the Northern District of Georgia. The court also granted a motion to revoke Mitrovic’s citizenship, although the revocation order will not take effect until after a federal court of appeals has reviewed his conviction and sentence. Mitrovic was convicted on May 26, 2016, of failing to disclose his role as a prison guard in a Bosnian Serb Army detention camp as part of the “ethnic cleansing” that occurred during the Bosnian War from 1992 through 1995.
“The defendant tried to game our country’s immigration process to conceal his record of flagrant human rights violations,” said Assistant Attorney General Caldwell. “Together with our partners at the U.S. Attorney’s Office and HSI, however, the Criminal Division was able to ensure that both his immigration crimes and his human rights abuses saw the light of day. Cases like this demonstrate how we ensure that the United States does not become a safe haven for human rights violators.”
“Mitrovic believed he could bury his past and the horrific human rights violations he committed during the Bosnian War,” said U. S. Attorney Horn. “Our immigration system endeavors to flag those who have committed human rights violations, especially for those who seek refugee status from persecution. Mitrovic’s application turned this humanitarian process on its head, and it’s incredibly fitting that he ultimately was discovered by a refugee from Mitrovic’s own abuses.”
“Human rights violators who think they can conceal their past to escape accountability in the United States are sorely mistaken,” said Special Agent in Charge Annan. “This individual tried to cheat our nation’s immigration system by lying about his actions during the Bosnian Civil War. Today's result shows that HSI is firmly committed to investigating and identifying criminals who seek to exploit our nation's welcoming policy toward legitimate war refugees.”
According to evidence presented at trial, in 1996, Mitrovic was permitted to immigrate to the United States based on his statements in his refugee application that he feared persecution if he remained in Bosnia. In 2002, he naturalized as an American citizen. The evidence presented at trial also demonstrated that on his naturalization application, Mitrovic stated, among other things, that he had never persecuted anyone because of their race, religion or membership in a social group; he had never committed a criminal offense for which he had not been arrested; and he had never provided any false or misleading information to obtain an immigration benefit, such as refugee status.
In reality, as the trial evidence established, during the Bosnian War, Mitrovic had been a guard in one of the prison camps that the Bosnian Serb Army (VRS) opened in May 1992 to “ethnically cleanse” northwest Bosnia of non-Serb minorities. At trial, one victim testified that Mitrovic had used a sharp military knife to carve a Christian cross into his chest, saying from that moment on, he “was going to be a Serb.” Others testified that Mitrovic and other soldiers beat non-Serb prisoners into unconsciousness or threatened to kill them with automatic rifles. Bosnian government documents also showed that in February 1996, Mitrovic applied for and was later awarded veterans’ benefits for his later military service in the VRS during the Bosnian War. Trial evidence showed that Mitrovic failed to disclose any of this conduct or military service on his refugee and naturalization applications.
U.S. authorities began investigating based on information provided by a former prisoner from the prison camp where Mitrovic had served. That individual, who came to the United States as a refugee, thought that Mitrovic had died during the war. But in 2011, he learned that Mitrovic was living in the Atlanta area and he contacted U.S. immigration authorities. At the sentencing hearing, that prisoner and another former prisoner, also a refugee in the United States, addressed the court. One said that he would never forget how people looked after Mitrovic and other soldiers had beaten and tortured them. At trial, the other testified how shocked and frightened he had been when Mitrovic, a friend before the war, threatened to kill him with an automatic rifle.
HSI investigated this case. Assistant Deputy Chief Christina Giffin of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorneys William Traynor and Jessica Morris of the Northern District of Georgia prosecuted the case.
If you have information about individuals suspected of engaging in human rights abuses or war crimes, please call the HSI tip line at 866-DHS-2-ICE, or complete its online tip form. Information may also be provided to the Human Rights and Special Prosecutions Section by sending an email to [email protected] or calling 1-800-813-5863. Tips may be reported anonymously.
Four charged in Elite Car Imports racketeering schemeRead the Press Release
Indianapolis – United States Attorney Josh J. Minkler announced today that four defendants who ran two used car dealerships in Indianapolis have been charged in connection with their illegal activities. The indictment charges,
Mohamed Noshi Mahmoud, a/k/a Noshi 39, Fishers
Mahdi Kehlifi, 23, Indianapolis
Issa Kayyali, 28, Indianapolis
Hamza Dridi, a/k/a Alex, 26, Indianapolis
with violations of the RICO statute along with a variety of other violations of federal law including conspiracy to commit mail fraud, conspiracy to commit wire fraud, money laundering, and interstate transportation of stolen property.
“As is so often the case in these fraud cases, the ultimate victims are the ones least that can least afford it,” said Minkler. “Elite Motors abused processes in place that would allow citizens with subprime credit to get back on their feet through legitimate vehicle sales.”
Mohamed Noshi Mahoud (Noshi) was the principal leader and manager of Elite Enterprise which operated two used car dealerships and several “shell” companies in Indianapolis. Noshi allegedly directed other members and associates of the enterprise to engage in activity that assisted him in carrying out unlawful acts. Kehlifi was a managing sales associate involved in the day-to-day operations of the dealership, Kayyali was a sales associate and Dridi was the service manager and mechanic in charge of the chop shop the dealership used to disassemble vehicles that were later alleged to be stolen.
The indictment alleges that Noshi and other Elite managers engaged in three separate but interlocking fraud schemes on behalf of the business enterprise. The first was to procure fraudulent documents and submit them to lending and financial institutions to underwrite the purchase of cars, trucks and motorcycles on behalf of Elite’s customers. The documents included social security numbers, dates of birth and paystubs from the shell companies Elite employees or associates created.
The second scheme was a conspiracy to defraud insurance carriers by submitting false claims of stolen vehicles. The defendants allegedly claimed that certain vehicles were damaged or stolen, thereby causing the insurance carriers to release claim money to the policy and lien holder benefitting Elite. In many cases stolen vehicles and/or parts were located in the chop shop storage unit leased by Noshi.
The third scheme allegedly involved theft from specialty financing companies who gave Elite short term financing and lines of credit for vehicles in inventory. These specialty financing companies were defrauded through a series of steps including false representations made by Elite management.
The case was investigated through a collaborative partnership between federal, state, and local officials. The investigation was led by the Federal Bureau of Investigation, the United States Postal Inspection Service, U.S. Social Security, OIG, the Lawrence Police Department (Indiana), and the Indianapolis Metropolitan Police Department, with assistance provided by the Indiana Secretary of State, Auto Division and the Indiana Attorney General Consumer Fraud Division.
W. Jay Abbott, Special Agent in Charge of the Indianapolis Office of the Federal Bureau of Investigation, stated, “These charges send a clear message that illegal business practices in the form of white collar crime will not be tolerated. The Federal Bureau of Investigation and our law enforcement and regulatory partners will continue to aggressively pursue individuals who steal from honest, hardworking Americans and corporate America.”
“The defendants allegedly participated in an illicit organization that affected interstate commerce through the transportation of stolen property, money laundering, mail and wire fraud. In doing so, they utilized the U.S. Mail, which brought to bear the full investigative attention of Postal Inspectors,” said Patricia Armstrong, acting Inspector in Charge of the U.S. Postal Inspection Service’s Detroit Division. “We will continue to collaborate with our law enforcement partners to ensure actions such as these are aggressively investigated and pursued for criminal prosecution.”
Tracey Thanos, Special Agent-in-Charge of the SSA/OIG’s Chicago Field Division, stated, “The Social Security Office of the Inspector General is committed to working with other law enforcement agencies to investigate individuals who misuse Social Security numbers and other personal information to commit various forms of financial fraud. We commend our law enforcement partners for their contributions to this investigation, and we thank the U.S. Attorney’s Office in Southern Indiana for pursuing this case and other cases involving SSN misuse.”
Assistant United States Attorney Cynthia J. Ridgeway is prosecuting the case for the government and said all four defendants face up to 20 years’ imprisonment if convicted.
An indictment is merely a charge and not evidence of guilt. All parties are presumed innocent until proven guilty in federal court.
Former Wesleyan Football Player Who Distributed Synthetic Drug that Caused Overdose is SentencedRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that RYAN WELCH, 22, of Salem, Mass., was sentenced today by U.S. District Judge Victor A. Bolden in Bridgeport to three years of probation, the first six months of which WELCH must spend in home confinement, for distributing a synthetic hallucinogenic drug at Wesleyan University. Judge Bolden also ordered WELCH to perform 200 hours of community service.
According to court documents and statements made in court, on October 31, 2015, the Wesleyan University Department of Public Safety responded to an emergency call from a campus dorm room and found a male student in severe medical distress. The victim was convulsing and struggling to breathe, and his body temperature was significantly elevated. The victim was transported by ambulance to the hospital where he spent several days recovering.
The investigation revealed that the victim had ingested “2C-B,” and that WELCH was the source of the 2C-B that the victim ingested.
The investigation further revealed that WELCH, a member of Wesleyan’s football team, had distributed 2C-B to between 15 and 20 other members of the team during the 2015 season. Initially, he distributed the drug in liquid form, mixing it in a water bottle with a non-alcoholic drink. Later, he distributed it in powder form, in clear capsules. Some teammates referred to the 2C-B distributed by WELCH as “Welchie’s drug” or “Welchie’s special.” Certain players paid WELCH approximately $10 for each single-dose capsule.
The investigation further revealed that WELCH purchased the synthetic drug on the Dark Web using Bitcoin.
WELCH was arrested on a federal criminal complaint on January 21, 2016. On March 8, he pleaded guilty to one count of possession with intent to distribute, and distribution of, 2C-E and 2C-B, Schedule I controlled substances (hallucinogens).
This matter was investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, which includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon, Wilton and Milford Police Departments.
This case was prosecuted by Assistant U.S. Attorney Robert M. Spector and Senior Assistant State’s Attorney Eugene Calistro of the Middlesex State’s Attorney’s Office, who was cross-designated as a Special Assistant U.S. Attorney in this matter.
Former Santa Claus & Magician for Kids' Parties Sentenced for the Manufacturing of Child PornographyRead the Press Release
WILMINGTON – The United States Attorney’s Office for the Eastern District of North Carolina announced that today in federal court, Senior United States District Judge James C. Fox, sentenced LEANDER DEWEY JONES, 65, of Raleigh, to 360 months imprisonment followed by a lifetime of supervised release.
JONES, who was employed as a Santa Claus and magician for kids’ parties, was discovered producing Child Pornography (CP) of his two grandchildren while in his care. On May 29, 2015, Jones brought his desktop computer in for repair to a store in Raleigh, and while examining the computer hard drive for viruses and malware, a computer technician located a folder containing CP. He alerted the store owner who in turn contacted the Raleigh Police Department regarding the CP.
A state search warrant was obtained and a subsequent computer forensics examination of items seized from JONES revealed approximately 4,000 images of CP on the computer and external hard drives. Further, examination of CDs and floppy discs seized, revealed approximately 1,000 images of CP.
On May 9, 2016, JONES pled guilty to one count of the Manufacture of Child Pornography.
The criminal investigation of this case was conducted by the Raleigh Police Department and the Federal Bureau of Investigation. Assistant United States Attorney Ethan A. Ontjes is handling the prosecution on behalf of the Eastern District of North Carolina.
This case was part of the Project Safe Childhood initiative, a national program aimed at ensuring that criminals exploiting children are effectively prosecuted by making full use of all available law enforcement resources at every level. For more information about this important national project, Project Safe Childhood, go to www.projectsafechildhood.gov.
Former Owner and Manager of Miami-Area Home Health Agencies Sentenced to 20 Years in Prison for Role in $57 Million Medicare Fraud SchemeRead the Press Release
The owner and manager of three now-defunct Miami-area home health agencies was sentenced today to 240 months in prison for his role in a $57 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Khaled Elbeblawy, 40, of Miramar, Florida, was sentenced by U.S. District Judge Beth Bloom of the Southern District of Florida, who also ordered Elbeblawy to pay approximately $36,400,957 in restitution and to forfeit the same amount. On Jan. 21, 2016, Elbeblawy was convicted after a two-week trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay health care kickbacks.
According to evidence presented at trial, Elbeblawy managed Willsand Home Health Agency Inc. (Willsand) and owned JEM Home Health Care LLC (JEM) and Healthy Choice Home Services Inc. (Healthy Choice). The evidence showed that through these three entities, from approximately 2006 to 2013, Elbeblawy and his co-conspirators purported to provide home health services to Medicare beneficiaries in the Miami area, which were not medically necessary and often were never even provided. Elbeblawy and his co-conspirators paid kickbacks to doctors, patient recruiters and staffing groups, which, in exchange, referred beneficiaries to Willsand, JEM and Healthy Choice, the evidence showed.
Evidence presented at trial showed that the three agencies submitted a total of approximately $57 million in false and fraudulent claims to Medicare, and received payments totaling approximately $40 million on those claims.
On Oct. 15, 2012, Eulises Escalona, the former owner of Willsand and the former co-owner of JEM, was sentenced to 10 years in prison after pleading guilty to one count of conspiracy to commit health care fraud. Cynthia Vilches, the former co-owner of Healthy Choice, was charged by information and pleaded guilty to one count of conspiracy to commit health care fraud. Vilches is scheduled to be sentenced on Oct. 13, 2016.
The FBI and 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 Southern District of Florida. Assistant Chief Nicholas E. Surmacz and Trial Attorney Vasanth Sridharan of the Fraud Section prosecuted the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,300 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Former Owner and Manager of Miami-Area Home Health Agencies Sentenced to 20 Years in Prison for Role in $57 Million Medicare Fraud SchemeRead the Press Release
The owner and manager of three now-defunct Miami-area home health agencies was sentenced today to 240 months in prison for his role in a $57 million Medicare fraud scheme.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Special Agent in Charge George L. Piro of the FBI’s Miami Field Office and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
Khaled Elbeblawy, 40, of Miramar, Florida, was sentenced by U.S. District Judge Beth Bloom of the Southern District of Florida, who also ordered Elbeblawy to pay approximately $36,400,957 in restitution and to forfeit the same amount. On Jan. 21, 2016, Elbeblawy was convicted after a two-week trial of one count of conspiracy to commit health care fraud and wire fraud and one count of conspiracy to defraud the United States and pay health care kickbacks.
According to evidence presented at trial, Elbeblawy managed Willsand Home Health Agency Inc. (Willsand) and owned JEM Home Health Care LLC (JEM) and Healthy Choice Home Services Inc. (Healthy Choice). The evidence showed that through these three entities, from approximately 2006 to 2013, Elbeblawy and his co-conspirators purported to provide home health services to Medicare beneficiaries in the Miami area, which were not medically necessary and often were never even provided. Elbeblawy and his co-conspirators paid kickbacks to doctors, patient recruiters and staffing groups, which, in exchange, referred beneficiaries to Willsand, JEM and Healthy Choice, the evidence showed.
Evidence presented at trial showed that the three agencies submitted a total of approximately $57 million in false and fraudulent claims to Medicare, and received payments totaling approximately $40 million on those claims.
On Oct. 15, 2012, Eulises Escalona, the former owner of Willsand and the former co-owner of JEM, was sentenced to 10 years in prison after pleading guilty to one count of conspiracy to commit health care fraud. Cynthia Vilches, the former co-owner of Healthy Choice, was charged by information and pleaded guilty to one count of conspiracy to commit health care fraud. Vilches is scheduled to be sentenced on Oct. 13, 2016.
The FBI and 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 Southern District of Florida. Assistant Chief Nicholas E. Surmacz and Trial Attorney Vasanth Sridharan of the Fraud Section prosecuted 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 and Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Former Employee Sentenced for Embezzling over $1.2 Million from Accounting Firm and ClientRead the Press Release
ATLANTA - Pamela B. Lewis has been sentenced for stealing over $1.2 million from her employer, an accounting firm, and her employer's client.
“Small firms depend on their accounting personnel to safeguard the financial health of the company and its clients,” said U.S. Attorney John Horn. “Lewis violated this trust and helped herself to $1.2 million held in the firm’s accounts over eleven years.”
“This is a devastating loss not only for the small business owner, but also for the owner’s client,” said FBI Atlanta Acting Special Agent in Charge George Crouch. “We will continue to diligently investigate anyone who callously preys on innocent victims like this.”
According to U.S. Attorney Horn, the charges and other information presented in court: Lewis worked as an accounting clerk for a family-owned accounting firm located in Snellville, Georgia. From 2002 through 2013, Lewis forged the signature of the sole authorized account holder and owner of the firm on checks she wrote to herself from the company account. Between 2006 and 2013, Lewis also forged the signature of a trustee on checks she wrote to herself from a client's trust account. To conceal her theft, Lewis used her position as an accounting clerk to create false accounting entries, disguising the forged checks as legitimate business expenses or voided checks. During that time, Lewis embezzled over $1.2 million from her employer and her employer's client.
Pamela Lewis, 60, of Tucker, Georgia was sentenced by U.S. District Judge Mark H. Cohen to three years, one month in prison to be followed by three years of supervised release, and ordered to pay restitution in the amount of $1,230,674.94. Lewis was convicted on these charges on April 21, 2016, after she pleaded guilty to wire fraud.
This case was investigated by the Federal Bureau of Investigation.
Assistant United States Attorney Bernita B. Malloy prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former Church Staff Member Sentenced to 50 years in Prison for Child Sexual Exploitation and Possessing Child PornographyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a Shelby County man and former church staff member to 50 years in prison for sexually abusing a seven-year-old child and possessing child pornography in 2013, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Judge L. Scott Coogler sentenced JASON MICHAEL HANKINS, 35, to 30 years in prison for sexual exploitation of a child, plus 20 more years for possessing child pornography. The judge also ordered Hankins to remain on supervised release for the rest of his life after completing his prison sentence. Hankins pleaded guilty to the charges in January.
Hankins had worked at Shades Crest Baptist Church in Hoover as part of the Family Life Center staff, assisting in the planning and coordinating of recreational activities. Hankins found his young victim by seeking out a single mother on a Christian dating website.
The government, in its sentencing memorandum to the court, recommended a 50-year prison sentence in the case. Such a sentence is reasonable, the government argued, because Hankins “targeted the victim, engaged in a repeated pattern, lasting the entire time he had access to the child, of sexual exploitation of a very young child …” Not only did Hankins sexually abuse the child, but he used his cell phone to memorialize the child’s nightmare, the government said.
The seven-year-old child was not Hankins’ only victim, as he possessed more than 100 videos and more than 1,000 images of child pornography, including a video of a man raping a toddler, according to the sentencing memorandum.
The FBI investigated the case, which Assistant U.S. Attorney Jacquelyn Hutzell prosecuted.
Felon Charged with Illegally Possessing Gun and AmmunitionRead the Press Release
PITTSBURGH – An Allegheny County resident has been indicted by a federal grand jury in Pittsburgh on a federal firearm violation charge, United States Attorney David J. Hickton announced today.
The one-count indictment named Ryan Gainer, 36, as the sole defendant.
According to the indictment, on June 14, 2016, Ryan Gainer, a convicted felon, was in possession of a firearm and ammunition. Federal law prohibits an individual who has been convicted of a felony from possessing a firearm or ammunition.
The law provides for a maximum total sentence of not less than 15 years and up to life in prison, a fine of $250,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offense and the prior criminal history of the defendant.
Assistant United States Attorney Barbara K. Doolittle is prosecuting this case on behalf of the government. This case is being prosecuted as part of Project Safe Neighborhoods, a collaborative effort by federal, state, and local law enforcement agencies, prosecutors, and communities to prevent, deter, and prosecute gun crime.
The Bureau of Alcohol, Tobacco, Firearms and Explosives, and the Pittsburgh Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Federal inmate sentenced for possessing a weapon in prisonRead the Press Release
CHARLESTON, W.Va. – An inmate at the Federal Correctional Institution at McDowell was sentenced today to a year and two months in federal prison for possessing a weapon, announced United States Attorney Carol Casto. Tyruss Jackson, 34, previously pleaded guilty to possession of a weapon by an inmate of a federal prison.
Jackson admitted that on September 18, 2015, he possessed a handcrafted knife while he was serving time in the prison. The handcrafted wooden weapon, commonly referred to as a “shank,” was sharpened to a point, measured slightly over six inches in length, had tape wrapped around one end to serve as a handle, and a had a string tied to the handle to serve as a lanyard. A Bureau of Prisons staff member discovered the item concealed in Jackson’s pants. Jackson will serve the year and two months after he completes his current undischarged sentence.
This case was investigated by the Federal Bureau of Prisons. Assistant United States Attorney John File is handling the prosecution. Senior United States District Judge David A. Faber imposed the sentence.
- Follow us on Twitter: SDWVNews
Federal Judge Sentences Former Teacher to Five Years in Prison for Receiving Child PornographyRead the Press Release
BIRMINGHAM – A federal judge today sentenced a former high school teacher to five years in prison for receiving child pornography in connection with an improper relationship he had with a teenage student he met at the school, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
U.S. District Judge L. Scott Coogler sentenced ROBERT LELAND GRANT JR., 26, of Warrior, on one count of receiving child pornography between March 2013 and November 2013 while Grant was a teacher at John Carroll High School. The judge ordered Grant to remain on supervised release for life after completing his prison sentence.
Grant pleaded guilty to the child pornography charge in April. He admitted that he had an improper relationship with a 17-year-old student that involved sexual contact and sexually explicit videos and images swapped via text message.
Grant “abused his position as a teacher to prey on and sexually exploit his students and received child pornography,” the government said in its sentencing memorandum. The 17-year-old student was not the only student Grant victimized, according to the memorandum, which states that he admitted improper relationships with two other students in 2013 and 2014.
The FBI and the Jefferson County Sheriff’s Office investigated the case, which Assistant U.S. Attorney Jacquelyn Hutzell prosecuted.
Federal Inmate Pleads Guilty to Fraud and Identity Theft ChargesRead the Press Release
JOHNSTOWN, Pa. – A federal prison inmate pleaded guilty in federal court to charges of credit/debit card fraud and identity theft, United States Attorney David J. Hickton announced today.
Jermain R. Stevenson, 26, an inmate at a federal correctional institution, pleaded guilty to the indictment before United States District Court Judge Kim R. Gibson.
In connection with the guilty plea, from Dec. 23, 2013, to March 30, 2014, Stevenson, along with co-defendants, used debit and credit card information to obtain more than $1,000, knowing that the debit cards and credit cards belong to other actual persons.
Judge Gibson scheduled sentencing for Jan. 5, 2017, at 10 a.m. The law provides for a maximum total sentence of 12 years in prison, a fine of $500,000, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history of the defendant.
Assistant United States Attorney John J. Valkovci, Jr., is prosecuting this case on behalf of the government.
The Laurel Highlands Resident Agency of the Federal Bureau of Investigation conducted the investigation that led to the prosecution of Stevenson.
Federal Inmate in Minersville Charged with Possession of Drug ContrabandRead the Press Release
SCRANTON – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Scranton has indicted John Vercusky, age 38, a federal inmate at the United States Penitentiary Schuylkill (“USP Schuylkill”), Minersville, Pennsylvania, charging him with possession of a prohibited object. Specifically, marijuana, at the facility on October 25, 2015.
The investigation was conducted by the Federal Bureau of Investigation and officers from USP Schuylkill. The case is being prosecuted by Assistant United States Attorney Evan Gotlob.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment for Vercusky, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant’s educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Fall River Man Pleads Guilty to Escape from Federal FacilityRead the Press Release
BOSTON – A federal inmate pleaded guilty yesterday in U.S. District Court in Boston in connection with escaping from Coolidge House Residential Reentry Center in Boston.
Jason Barreto, 30, pleaded guilty to one count of escape from federal custody. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 22, 2016.
In September 2011, Barreto was convicted in the U.S. District Court in Rhode Island of one count of conspiracy to distribute oxycodone and was sentenced to 70 months in prison. On May 21, 2015, Barreto was transferred from the U.S. Penitentiary Big Sandy in Kentucky, to Coolidge House Residential Reentry Center in Boston to serve the remainder of his sentence. Barreto was scheduled to be released on Nov. 1, 2015.
On Sept. 17, 2015, following an incident at Coolidge House, Barreto walked out of the facility without authorization and did not return. On April 8, 2016, after receiving information regarding Barreto’s location, the U.S. Marshals Service arrested Barreto at Harrah’s Hotel and Casino in Atlantic City, New Jersey.
United States Attorney Carmen M. Ortiz and U.S. Marshal John Gibbons of the District of Massachusetts made the announcement. The case is being prosecuted by Assistant U.S. Attorney Nicholas Soivilien of Ortiz’s Major Crimes Unit.
Eastern Panhandle man sentenced for sexual abuse of a minorRead the Press Release
MARTINSBURG, WEST VIRGINIA – Joseph Robert Paper, 32, of Ranson, West Virginia, was sentenced to 87 months in prison for traveling across state lines to engage in illicit sexual conduct with a teenage girl, United States Attorney William J. Ihlenfeld, II, announced.
Paper transported a fourteen year old female from Pennsylvania to West Virginia where he had sexual contact with the victim. The crimes occurred in January at a hotel in Berkeley County and at Paper’s home in Jefferson County.
Upon his release from prison, Paper will be supervised for a period of 40 years. He must also register as a sex offender for the rest of his life.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The West Virginia State Police and the Hanover, Pennsylvania Police Department investigated.
Chief U.S. District Judge Gina M. Groh presided.
Dubuque Couple Sentenced to Probation for Illegally Possessing a FirearmRead the Press Release
A husband and wife who illegally possessed a firearm were each sentenced yesterday to a five year term of probation.
Willie Earl Horsley, Sr., 30, and Raven Javay Harris, 26, from Dubuque, Iowa, received the sentence after an April 20, 2016, guilty plea to possession of a firearm and ammunition by a prohibited person. Both individuals were prohibited from possessing a firearm because of their illegal drug use.
Evidence during the proceedings showed that Horsley and Harris were both unlawful users of marijuana and kept in their residence a .45 caliber pistol. On January 3, 2016, police responded to their residence after receiving a 911 call regarding a shooting. Horsley and Harris’ had left the firearm in their bedroom, accessible to their minor children. The children began playing with the firearm, which led to the shooting of Horsley and Harris’ two year old son. The child suffered multiple injuries and was airlifted to the University of Iowa Hospitals for treatment.
Horsley and Harris were sentenced in Cedar Rapids by United States District Court Chief Judge Linda R. Reade. A special assessment of $100 was imposed.
The case was prosecuted by Assistant United States Attorney Lisa C. Williams and investigated by the Dubuque Police Department.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-cr-1006.
Follow us on Twitter @USAO_NDIA.
District Man Found Guilty of Sexually Abusing 11-Year-Old GirlRead the Press Release
WASHINGTON - Robert Kelsey, 28, of Washington, D.C., has been found guilty of sexually abusing an 11-year-old girl he met through Instagram when he was 26 years old, U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Cathy L. Lanier, Chief of the Metropolitan Police Department (MPD), announced today.
Kelsey was found guilty by a jury on Aug. 29, 2016, following a trial in the U.S. District Court for the District of Columbia, of transportation of a minor with intent to engage in criminal sexual activity, aggravated sexual abuse of a child, and first-degree child sexual abuse with aggravating circumstances. The Honorable Reggie B. Walton scheduled sentencing for Nov. 18, 2016. Kelsey, a convicted felon, faces a potential sentence of up to life in prison without the possibility of release, and a mandatory minimum sentence of 30 years in prison.
According to the government’s evidence, Kelsey met the girl during the summer of 2014 on Instagram, concealing his true identity, posing as a 19-year-old and using a fictitious name. He suggested that they begin communicating by text via Kik Messenger. He flirted with her and told her that he wanted to have sex with her. On July 25, 2014, Kelsey arranged to pick up the girl from her summer camp, which was held at an elementary school in Bowie, Md. He told the camp staff that he was the child’s cousin so that he could take her from camp early that day.
Kelsey drove the victim to his house in Washington, D.C., where he sexually abused her, and then returned her to the vicinity of the camp. By that time, the victim’s father, who was at the camp to pick up his daughter, learned that she had been taken from the camp by a man, and the father summoned police. The victim disclosed what happened and Prince George’s County, Md. Police began an investigation. The case was referred to the Metropolitan Police Department, and an investigation by MPD and the FBI’s Child Exploitation Task Force led to Kelsey’s arrest. DNA analysis of evidence obtained from a medical examination of the victim also linked Kelsey to the crime.
This case was brought as part of the Department of Justice's Project Safe Childhood initiative and investigated by the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD. In February 2006, the Attorney General created Project Safe Childhood, a nationwide initiative designed to protect children from online exploitation and abuse. Led by the U.S. Attorney's Offices, 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 identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov
In announcing the verdict, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Chief Lanier commended the work of those who investigated the case from the FBI's Child Exploitation Task Force, which includes members of the FBI's Washington Field Office and MPD’s Youth Investigations Division. They also expressed appreciation for the assistance provided by the Prince George’s County, Md. Police Department. They acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Michael Ambrosino, Special Counsel for DNA and Forensic Evidence Litigation; Elizabeth Trosman, Chief of the Appellate Division; Assistant U.S. Attorney Sharon Donovan; Victim/Witness Advocate Lezlie Richardson; Paralegal Specialists Joyce Arthur, Troy Griffith, and Tiffany Jones; Litigation Technology Specialists Aneela Bhatia and Anisha Bhatia, and Intern Wendy Acquazzino. Finally, they commended the work of Assistant U.S. Attorneys Andrea L. Hertzfeld and Kenya Davis, who prosecuted the case.
16-156
Deputy Attorney General Sally Q. Yates Statement on the President’s Recent Clemency DecisionsRead the Press Release
Deputy Attorney General Sally Q. Yates released the following statement following President Obama’s clemency announcement today:
"The clemency initiative is about more than the 111 people who learned today that their sentences have been commuted; it's also about the families and communities who will welcome them home as they work to build a new life. With today's announcement, the President has given a second chance to over 300 individuals in the month of August and we expect many more men and women will receive that same opportunity in the months to come. We remain hopeful that Congress will come to a bipartisan and lasting solution for much needed sentencing reforms before the end of the year."
Cleveland attorney sentenced to nearly four years in prison for money launderingRead the Press Release
A Cleveland attorney was sentenced to nearly four years in prison for accepting $20,000 in purported drug proceeds and agreeing to launder the money, said Carole Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Matthew J. King, 45, was convicted earlier this year of one count of attempted money laundering and two counts of money laundering following a weeklong jury trial. U.S. District Judge Donald C. Nugent sentenced King to 44 months in prison
King accepted $20,000 in cash purported to be the proceeds of the sale of narcotics. He then wrote two checks totaling $4,000 in early 2014, according to trial testimony and court documents.
This case was prosecuted by Assistant U.S. Attorneys Michelle M. Baeppler and Margaret A. Sweeney following an investigation by the Northern Ohio Law Enforcement Task Force. The NOLETF is a task force comprised of investigators from the Federal Bureau of Investigation, Cleveland Division of Police, Cuyahoga Metropolitan Housing Authority, Drug Enforcement Administration, Internal Revenue Service, Cuyahoga County Sheriff’s Office, Ohio Bureau of Criminal Investigation and the police departments of Cleveland Heights, Euclid, Lakewood, the Regional Transit Authority, Westlake and Shaker Heights. The NOLETF is also one of the initial Ohio High Intensity Drug Trafficking Area initiatives, which supports and helps coordinate numerous Ohio drug task forces in their efforts to eliminate or reduce drug trafficking in Ohio.
Carthage Man Sentenced for Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Carthage, Mo., man was sentenced in federal court today for receiving and distributing child pornography over the Internet.
Jerry Batchelor, 52, of Carthage, was sentenced by U.S. District Judge M. Douglas Harpool to 10 years in federal prison without parole. The court also sentenced Batchelor to supervised release for the rest of his life following incarceration.
On Jan. 11, 2016, Batchelor pleaded guilty to receiving and distributing child pornography over the Internet. Batchelor utilized a peer-to-peer file-sharing network to obtain and trade images and videos of child pornography between Aug. 10, 2012, and April 4, 2014.
A search warrant was executed at Batchelor’s residence on April 7, 2014, and a desktop computer was seized along with three portable hard drives, a thumb drive and an SD card. Images and videos of child pornography included prepubescent minors and sado-masochistic images. Investigators also found videos taken by Batchelor, who secretly videotaped adults in the bathroom.
This case was prosecuted by Assistant U.S. Attorney James J. Kelleher. It was investigated by Immigration and Customs Enforcement's (ICE) Homeland Security Investigations (HSI) and the Southwest Missouri Cybercrimes Task Force.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Boise Man Pleads Guilty to Destruction of Historic Trapper CabinRead the Press Release
BOISE – Jason Reed, 22, of Boise, Idaho, pleaded guilty today in United States Magistrate Court to destruction of government property, U.S. Attorney Wendy J. Olson announced. Reed was charged by an information filed by the U.S. Attorney’s Office.
Reed admitted that in August of 2015, he caused extensive damage to the Trapper Cabin. The Trapper Cabin is a government owned historic property located at the French Creek Trailhead on the McCall Ranger District of the Payette National Forest, in Valley County, Idaho. Reed advised Chief U.S. Magistrate Judge Ronald E. Bush that he broke out the cabin’s windows, wrapped a winch cable from his father’s ATV around the deck of the cabin, and pulled the deck off its foundation. He then admitted to wrapping the winch cable around a log on the corner of the cabin and pulled the two bottom logs, causing the cabin to partially collapse.
The Trapper Cabin was built in 1936 and is one of two cabins left in Idaho that were built and utilized for predatory control by the U.S. Fish and Wildlife Service. It was built in the Rocky Mountain style log cabin, using peeled lodge pole pine logs and mud chinking. It is the only cabin on the Payette National Forest that was built in this style. Prior to the damage caused by Reed, the cabin was in good condition and was eligible to be listed on the National Register of Historic Places. The cost to restore the cabin is $31,919.20. Reed has agreed to provide restitution in full.
The charge of destruction of government property is a class A misdemeanor and is punishable by up to one year in prison, one year of supervised release, and a fine of up to $100,000.
Reed is scheduled to be sentenced on November 14, 2016, before Chief U.S. Magistrate Judge Ronald E. Bush at the federal courthouse in Boise.
The case was investigated by the U.S. Forest Service.
Armed Savannah Drug Dealer Sentenced to 14 Years in PrisonRead the Press Release
SAVANNAH, GA: Tyrone Anwan Broadnax, 35, a multi-convicted felon who has sold drugs and perpetrated violence in Savannah for many years, was sentenced yesterday by Chief U.S. District Judge Lisa Godbey Wood to 168 months in prison for trafficking cocaine, crack cocaine, and ethylone, a Schedule I psychedelic controlled substance.
According to court documents and evidence presented at hearings, Broadnax was stopped by police on July 22, 2015 after undercover officers saw him engage in a hand-to-hand drug transaction in Savannah’s Victorian District. A search of Broadnax’s car revealed 95 baggies of drugs packaged for sale and a 9 mm semiautomatic pistol equipped with a high-capacity magazine. An infant girl was in the backseat of the car as Broadnax drove through Savannah with his drugs and gun. Following his arrest, Broadnax gave a full confession to police and bragged, “I sell every drug. . . . Every drug was in there today.”
Broadnax’s criminal history and involvement with guns and drugs stretches over two decades. In 1995, at the age of 14, Broadnax and two accomplices mugged a man at gunpoint in downtown Savannah. In 2002, shortly after Broadnax was released from prison, he was arrested for selling cocaine within 1,000 feet of a housing project. He served less than half of a seven-year prison sentence. In 2005, Broadnax was arrested for trafficking crack cocaine and unlawfully possessing a stolen firearm. Although he was sentenced in 2007 to a 10-year term of incarceration, Broadnax was paroled in April 2008. Seven months later, he committed a shooting in Savannah’s Hitch Village neighborhood.
U.S. Attorney Ed Tarver stated, “Too often, career criminals like Tyrone Broadnax come to believe that serving a short stint in state prison is simply the cost of doing business. This United States Attorney’s Office is committed to stopping the revolving door and ensuring that felons who terrorize our community with gun violence and pollute our streets with drugs bear the full weight of their misdeeds. Gun-using drug dealers in this District should expect to be sentenced to long sentences that will be served without parole in federal prisons far away.”
The U.S. Attorney’s Office prosecuted Broadnax as part of Project Ceasefire, a joint federal, state and local initiative to combat gun violence and ensure that repeat offenders are subjected to stiff federal prison sentences, all of which must be served without the possibility of parole.
The case was investigated by the ATF and the Undercover Narcotics Investigation Team of the Savannah-Chatham Metropolitan Police Department (“SCMPD”). SCMPD’s K-9 Unit and the Georgia State Board of Pardons and Parole provided support. Assistant United States Attorney Theodore S. Hertzberg prosecuted the case on behalf of the United States.
Antioch Man Sentenced to 20 Years in Prison for Child Pornography OffensesRead the Press Release
Christopher N. Bonick, 31, Antioch, Tennessee, was sentenced on August 26, 2016, to serve 20 years in prison, to be followed by 30 years of supervised release, for attempting to entice a minor to engage in sexual activity and possession of child pornography, announced David Rivera, United States Attorney for the Middle District of Tennessee. Bonick was sentenced by U.S. District Court Judge Aleta Trauger after having been found guilty by a federal jury following a March 2016 trial.
The evidence at trial showed that in July 2010, Bonick began communicating on-line with an individual that he initially believed to be a 13-year-old girl. In July 2011, Bonick engaged in a lengthy, sexually explicit chat with this person, who, unknown to him, was actually an undercover law enforcement officer in Louisiana. Bonick asked this individual if she would be willing to engage in sexual activity with him and told her that he had previously met a 15-year-old girl online and had traveled to have sex with her. Bonick discussed traveling to see her and continued the sexually explicit conversation.
Other evidence introduced at trial also showed that Bonick had previously communicated with numerous minors online and had solicited child pornography from them and had traded child pornography with other individuals via email.
Bonick was in possession of dozens of images of child pornography when a search warrant was served at his home in Antioch in January 2012, at which time he admitted that he was sexually attracted to minor teenagers.
Testimony presented to the Court during the sentencing hearing revealed that Bonick also had been talking on teen oriented websites to as many as 21 minors between July 2010 and July 2011 and had engaged young girls in chat conversations before turning the conversations to a sexual nature and sending and soliciting explicit images.
The case was investigated by the Metropolitan Nashville Police Department and prosecuted by Assistant U.S. Attorneys Carrie Daughtrey and Henry Leventis.
An Illegal Immigrant from Mexico Sentenced to Prison After Being Deported Five Times and ReturningRead the Press Release
A Mexican man who had previously been deported five times was sentenced today to more than three years in federal prison.
Manuel Sanchez-Rojas, 47, a citizen of Mexico who had been living in Waterloo, Iowa, received the prison term after a June 2, 2016, guilty plea to one count of illegal reentry of a removed alien after an aggravated felony conviction.
At the guilty plea, Sanchez-Rojas admitted he illegally reentered the United States without permission after having been deported from the United States in 1992, 1997, 2000, 2004, and 2005. Sanchez-Rojas was found by immigration authorities in Iowa on April 14, 2016, after Sanchez-Rojas had been arrested in Waterloo on a theft charge. After being arrested by immigration agents, Sanchez-Rojas threatened to return to the United States and shoot the agents. Sanchez-Rosa had previously been convicted 11 times in the United States, including convictions for assault with a deadly weapon, possession of a firearm, and burglary four times.
Sanchez-Rojas was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Sanchez-Rojas was sentenced to 37 months’ imprisonment. A special assessment of $100 was imposed. He must also serve a three-year term of supervised release after the prison term. There is no parole in the federal system.
Sanchez-Rojas is being held in the United States Marshal’s custody until he can be transported to a federal prison.
The case was prosecuted by Assistant United States Attorney Daniel C. Tvedt and investigated by the Department of Homeland Security, Immigration and Customs Enforcement, Enforcement and Removal Operations.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-2021.
Follow us on Twitter @USAO_NDIA.
Akron men indicted in federal court for shooting woman in Cuyahoga Valley National ParkRead the Press Release
Two Akron men were charged in a federal indictment with attempted murder and related charges for shooting a woman in the Cuyahoga Valley National Park, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI’s Cleveland Office.
DeZay M. Ely, 27, and Raymond T. Moore III, 26, are both charged with attempted murder and using and discharging a firearm during a crime of violence. Ely is also charged with being a felon in possession of ammunition.
Ely and Moore attempted to kill a woman on July 3 by shooting her in the head, according to court documents.
Attempted murder carries a maximum potential penalty of 20 years in prison. The charge of using and discharging a firearm during a crime of violence carries a mandatory minimum consecutive term of 10 years in prison.
If convicted, a defendant’s sentence will be determined by the court after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The case is being prosecuted by Assistant U.S. Attorneys Kevin Filiatraut and Kelly L. Galvin following an investigation by the FBI and Cuyahoga Valley National Park Police.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
14 Retailers Facing Federal Indictment for $16 Million Food Stamp FraudRead the Press Release
Baltimore, Maryland - A federal grand jury has returned nine separate indictments charging a total of 14 retail store operators for committing food stamp fraud and wire fraud in connection with schemes to illegally redeem food stamp benefits in exchange for cash. The indictments allege the retailers received over $16 million in federal payments for transactions in which they did not provide any food, a fraud scheme commonly known as “food stamp trafficking.” Stores allegedly split the proceeds with food stamp recipients. The indictments were unsealed today upon the arrests of the defendants.
Over 300 members of law enforcement participated in the arrests and execution of a total of 26 search warrants at the stores and related locations this morning. In addition, 46 bank accounts were seized.
The indictments were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge William G. Squires, Jr. of the U.S. Department of Agriculture Office of Inspector General, Northeast Region; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation.
“The food stamp program is intended to put food on the tables of needy recipients, not to put money in the pockets of greedy criminals,” said U.S. Attorney Rod J. Rosenstein. “Honest storeowners work hard to earn a profit by actually selling food, and food producers and distributors also benefit. People who play by the rules deserve to know that criminals who defraud them will be held accountable.”
“Far from being a victimless crime, the offenders in this investigation defrauded a combined amount of approximately $16 million from taxpayer funded programs,” stated Kevin Perkins, Special Agent in Charge of the FBI Baltimore Office. “These programs are intended to provide assistance for those in need—not a means of abuse or selfish enrichment. The FBI Baltimore Division, along with our federal, state and local partners, remain steadfast in our commitment to root out those who steal from taxpayers and defraud our government programs.”
The Supplemental Nutrition Assistance Program (SNAP), previously known as the Food Stamp Program, is administered by the Food and Nutrition Service (FNS) of the United States Department of Agriculture (USDA), together with state agencies. The program funds low-income individuals to allow them to obtain a more nutritious diet. In Maryland, the program provides eligible individuals with an electronic benefit transfer (EBT) card called the Independence Card, which operates like a debit card. Recipients obtain EBT cards through the state Department of Human Resources, then use the EBT card to purchase approved food items from participating retailers.
Retailers must apply to and be approved by FNS to participate in the program. Authorized retailers use a point-of-sale terminal that checks the EBT card information and deducts the cash value of the purchase from the customer’s SNAP benefit balance. SNAP reimbursements are paid to retailers through electronic funds transfers. Retailers must bill the government only in return for providing approved food items.
The indictments allege that the defendants exchanged EBT benefits for cash, in violation of the food stamp program rules. The indictments allege that the defendants typically paid half the value of the EBT benefits in cash. To avoid detection, the defendants often debited the funds from the card in multiple transactions over a period of hours or days, or called a different store where the transaction was processed manually. As a result of unlawful cash transactions, the defendants obtained more than $16,482,270 in EBT deposits for transactions in which food sales never occurred or were substantially inflated.
According to the indictments, the defendants listed below owned and/or operated stores in the Baltimore area that were authorized to accept SNAP. The defendants received instruction regarding the requirements and regulations of the food stamp program, including that only eligible food items could be exchanged for EBT benefits and that a retailer may never exchange EBT benefits for cash or non-food items.
Walayat Khan, age 36, of Reisterstown, Maryland; and
Barbara Ann Duke, age 50, of Owings Mills, Maryland; Maria’s Market Place, 307 S. Broadway in Baltimore; and Royals Food Market, 921 E. Patapsco Avenue in Brooklyn, Maryland. From October 2013 to June 2016, Khan and Duke allegedly obtained more than $1,486,118 in payments for food sales that never occurred.Shaheen Tasewar Hussain, age 60, of Ellicott City, Maryland; Shop & Save, 301 Crain Highway South, Suite D, Glen Burnie, Maryland. From July 2014 through October 2015, Hussain allegedly obtained more than $778,183 in payments for food sales that never occurred.
Kelym Novas Perez, age 34, of Baltimore; and
Jose Remedio Gonzalez Reyes, age 50, of Baltimore; Kelym Grocery, 2734 Pennsylvania Avenue in Baltimore. From August 2013 through March 2016, Perez and her husband, Gonzalez Reyes, allegedly obtained more than $879,500 in payments for food sales that never occurred.Mulazam Hussain, age 54, of Windsor Mill, Maryland; Monroe Food Mart and Y&J Grocery in Baltimore. From March 2013 through July 2016 Hussain allegedly obtained more than $1,242,745 in payments for food sales that never occurred.
Mohammad Shafiq, age 50, of Gwynn Oak, Maryland; and his daughter, Alia Shaheen, age 24, of Baltimore; Quick Stop Convenience Store, 237 N. Patterson Park Avenue; New York Food Mart, 1201 N. Patterson Park Avenue; and Barclay Food Mart, 2454 Barclay Street, all in Baltimore; and Shafiq Corporation, 6929 Holabird Avenue, in Dundalk, Maryland. From about October 2010 through July 2016, Mohammad Shafiq and his daughter, Alia Shaheen, allegedly obtained more than $3,712,353 in payments for food sales that never occurred or were substantially inflated.
Mohammad Irfan, age 59; and
Muhammad Sarmad, age 40, both of Nottingham, Maryland; New Sherwood Market, 6324 Sherwood Road in Northwood, Maryland; Martin Mart, 1504 Martin Boulevard in Middle River, Maryland; Rosedale Mart, 6326 Kenwood Avenue in Rosedale, Maryland; and M&A Mart 7400-A Belair Road in Baltimore. From October 2010 through August 2016, Irfan and Sarmad allegedly obtained more than $3,550,662 in payments for food sales that never occurred.Mahmood Hussain Shah, age 57, of Catonsville, Maryland; and
Muhammad Rafiq, age 58, of Reisterstown; Corner Groceries, 1242 Darley Avenue in Baltimore. From October 2010 through August 2016, Shah and Rafiq allegedly obtained more than $1,610,556 in payments for food sales that never occurred.Rizwan Pervez, age 38, of Essex, Maryland; M&N Mini Mart, 1846 W. North Avenue; and Mega Mart1, 1522 Ellamont Street, both in Baltimore. From April 2014 through July 2016, Pervez, allegedly obtained more than $1,689,511 in payments for food sales that never occurred.
Kassem Mohammad Hafeed, a/k/a Kassam Mohammad Hafeed, age 51, Baltimore; C&C Market, 4752 Park Heights Avenue in Baltimore. From November 2010 through April 2013, Hafeed allegedly obtained more than $1,532,642 in payments for food sales that never occurred.
The defendants face a maximum sentence of 20 years in prison for each count of wire fraud; a maximum of five years in prison for conspiracy to commit food stamp fraud and wire fraud; and a maximum of five years in prison for food stamp fraud. The defendants are expected to have initial appearances today in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein praised the USDA Office of Inspector General and FBI for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Matthew C. Sullivan; Jason D. Medinger; Peter J. Martinez, Rachel M. Yasser, Kathleen O. Gavin, Aaron S.J. Zelinsky; Patricia C. McLane, and Sean R. Delaney, who are prosecuting these cases.
29 August 2016
“YGz” Gang Member Pleads Guilty to Attempted Murders in Connection with Racketeering ConspiracyRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that MICHAEL BROWN, a/k/a “Mighty,” pled guilty late last Friday to engaging in a racketeering conspiracy that involved his participation in two attempted murders in connection with his membership in a racketeering enterprise known as the “Young Gunnaz” (“YGz”), a violent street gang that operated in and around several housing developments in the South Bronx. As part of his guilty plea, BROWN admitted to participating in: (a) an attempted murder of a member of the rival “Murda Moore Gangstas” gang (“MMG”) in which a lower-ranking YGz member shot and seriously injured a rival MMG member at the direction of BROWN, and (b) an attempted murder of members of the rival Lyman Place gang (“LPG”) in which BROWN fired gunshots that struck and injured at least two bystanders. BROWN faces a maximum term of 20 years in prison, and will be sentenced before United States District Judge Valerie E. Caproni on November 28, 2016.
Manhattan U.S. Attorney Preet Bharara said: “The YGz gang turned the Bronx neighborhoods in which it operated into a war zone – terrorizing residents and innocent bystanders with violence stemming from its feuds with rivals, and flooding the streets with drugs. Michael Brown’s guilty plea shows that law enforcement won’t give up until the perpetrators of gang violence are brought to justice.”
According to the controlling Indictment and other documents filed in the case, as well as statements made during the plea proceedings:
BROWN was a member of the Bronx-based street gang known as the YGz, a leading member of a set of the YGz based in the Mitchell Houses in the Bronx, and committed acts of violence with other gang members to further the interests of the gang. From at least 2005 to June 2016, members and associates of the YGz enriched themselves by selling drugs, such as “crack” cocaine, heroin, and marijuana, and committed acts of violence, including murder and attempted murder, against various people, including rival gang members, rival drug traffickers, and innocent bystanders. As part of this enterprise, members and associates of the YGz killed and attempted to kill other individuals.
As part of his involvement in the YGz gang, BROWN participated in at least two attempted murders of members of rival gangs. First, in or about 2008, BROWN himself fired gunshots at and attempted to murder rival LPG gang members and ended up hitting and injuring two bystanders in the vicinity of Lyman Place in the Bronx. Second, on or about November 15, 2011, at the direction of BROWN, a lower-ranking member of the Millbrook set of the YGz shot and seriously injured a rival MMG gang member near the Moore Houses in the Bronx in an attempt to kill the victim of this shooting.
* * *
Mr. Bharara praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Drug Enforcement Administration, and the New York City Police Department. He also thanked the Bronx County District Attorney’s Office for their support in this case.
This case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Samson Enzer, James McDonald, Andrew Adams, and Dina McLeod are in charge of the prosecution.
Unlawful Alien Sentenced for Possession of Firearms and AmmunitionRead the Press Release
Orlando, Florida– U.S. District Judge John Antoon, II has sentenced Hamid Mohamed Ahmed Ali Rehaif (25, Melbourne, and a citizen of the United Arab Emirates) to 18 months in federal prison for possession of a firearm and ammunition by an unlawful alien. Following his prison term, he will be deported back to the United Arab Emirates. Rehaif was found guilty by a federal jury in May 2016.
According to evidence presented at trial, Rehaif was admitted into the United States in 2013 under a student visa in order to attend the Florida Institute of Technology (FIT). After completing three semesters at FIT, he was academically dismissed in December 2014. As a result, Rehaif became an unlawful alien when he failed to immediately depart the United States. During that time, Rehaif possessed firearms and ammunition at a local shooting range in Melbourne, Florida. In addition, he provided ammunition to two hotel employees as “gifts.” At the sentencing hearing, the Court found that Rehaif had illegally purchased three other firearms.
Law enforcement agents originally made contact with Rehaif in December 2015, at a hotel in Melbourne where he had been living for two months. According to court documents, Rehaif stayed at the hotel for 53 straight days and paid over $11,000 in room fees. Law enforcement found rounds of handgun and rifle ammunition in his hotel room and in a storage unit that Rehaif had rented, but did not locate any firearms.
This case was investigated by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Federal Bureau of Investigation, and the Melbourne Police Department. It was prosecuted by Assistant United States Attorney Shawn P. Napier and Special Assistant United States Attorney Christina R. Downes.
United States Attorney's Office Assembles a Team of Specialists to Assist Former Patients/Family Members of Dr. Farid FataRead the Press Release
United States Attorney Barbara McQuade today announced that her office has put together a team of specialists to assist former patients and family members of Dr. Farid Fata in completing the restitution claim form. Fata was sentenced to 45 years in federal prison for providing medically unnecessary chemotherapy treatments to patients. The government has seized approximately $11.9 million and is encouraging and reminding victims to file claims before the filing deadline of October 5, 2016.
The U.S. Attorney’s Office has been working with the Crimes Services Commission for the State of Michigan and a team of Certified Public Accountants (CPAs) and CPA organizations to offer assistance to victims at no charge. The assistance will be provided starting on September 6, 2016 from 9:00 am – 5:00 pm, Monday-Friday and will take place at Common Ground, located at 1200 North Telegraph Road, Building 32 East, Pontiac, Michigan 48341. While walk-ins will be accepted, victims are encouraged to schedule an appointment and can do so by calling the current Fata claims toll free number at 1-877-202-3282. The toll free line will begin accepting calls to schedule appointments on Thursday, September 1 at 3:00pm. Depending on the complexity of the claim victims will be assisted by either a victim advocate specialist or a CPA or both.
The U.S. Attorney’s Office would like to thank Director James McCurtis and Program Specialist Leslie O’Reilly of the Crimes Services Commission of Michigan, Mark Davidoff, CPA, Michigan managing partner Deloitte LLC, Marshall Hunt, Director of Tax Policy and Advocacy at the Accounting Aid Society and Jean Jernigan, Vice President of Business Development at the Michigan Association of CPAs for their assistance in this effort.
In addition, we have prepared two information sheets to help claimants understand how to complete the Claim Forms as efficiently as possible and to make the filing process easier. Those can be accessed through the website www.fataclaims.com on the homepage. The two documents are:
- How to Prove What Victim Paid or Owed
- Listing Multiple Expenses
If you have questions about these documents, please call the phone staff at 1-877-202-3282. You can also view and download copies of these documents on the website at www.fataclaims.com.
We are also reminding victims that they can file claims for their out-of-pocket physical and mental health remedial treatments needed as a result of the treatment they received from Fata. The last date you can be reimbursed for remedial treatment is September 6, 2016. We are encouraging physicians who are currently treating former patients of Fata to sign the necessary forms regarding remediation in an effort to help victims pay for the cost of their treatment.
United States Attorney McQuade stated, “We recognize that the process of filling out a restitution claim form can be an extremely difficult process both emotionally and physically for victims and their families. While no amount of money can restore what has been taken away by the actions of Fata, we hope that with the added assistance we can attempt to give back as much of the seized funds as we can.”
U.K. Citizen Sentenced for Role in Overseas Investment ScamRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Martin Rhys-Jones, 52, a citizen of the United Kingdom, who was convicted of laundering money derived in a wire fraud conspiracy, was sentenced to 72 months in prison by U.S. District Judge Elizabeth A. Wolford. The defendant was also ordered to pay $2,897,130 in restitution.
Assistant U.S. Attorney Russell T. Ippilito, who along with retired Assistant U.S. Attorney John E. Rogowski, handled the case, stated that Jones, who was extradited from Spain, oversaw a “boiler room” scam in Barcelona, Spain, which conned investors in the United Kingdom and Canada into buying nearly worthless shares of restricted stock at severely inflated prices. Customers were told they were buying more valuable, regular shares of stock.
Approximately 250 investors lost more than $2,900,000 in the scam. A portion of the criminal proceeds were funneled through a bank account in Western New York before being sent to numerous overseas accounts controlled by Jones and his co-conspirator, Arnold Wrobel, a former resident of Buffalo. Wrobel was convicted in December 2015 and is awaiting sentencing.
A total of 12 defendants were arrested in the case, four have been convicted.
The sentencing is the result of an investigation on the part of Department of Homeland Security, Homeland Security Investigations, under the direction of James S. Spero, Special Agent in Charge of the Buffalo Office, and the Internal Revenue Service, Criminal Investigations Division, under the direction of Shantelle P. Kitchen, Special Agent in Charge.
Two sex offenders headed to prison for federal crimesRead the Press Release
CHARLESTON, W.Va. – Two sex offenders were sentenced to prison for federal crimes, announced United States Attorney Carol Casto.
Jeremy L. Kelley, 39, of Parkersburg, was sentenced in federal court in Charleston to 15 years in prison for attempted production of child pornography and possession of child pornography. Following his release from federal prison, he will be placed on supervised release for 30 years and will also be required to register as a sex offender. Kelley admitted that on September 6, 2014, he intentionally placed a cell phone in a vent located above a shower in a bathroom. Kelley further admitted that he placed the cell phone in the vent so that he could secretly record a minor in the shower. Law enforcement located a removable media device at Kelley’s Parkersburg residence in November 2015, and an analysis of that device revealed over 600 images of child pornography. More than 600 images of child pornography were also located on another cell phone and a computer used by Kelley at his place of employment in Pleasants County, located in the Northern District of West Virginia. Kelley also admitted to sharing some of the child pornography over the Internet. Kelley’s prosecution was the result of federal, state, and local law enforcement agencies working together in both the Northern and Southern Districts of West Virginia.
In a separate prosecution, James Roy Arthur, 45, formerly of Charleston, was sentenced in federal court in Huntington to three years and five months in prison, followed by 10 years of supervised release, for failing to register as a sex offender. Arthur was convicted in 1996 in Kanawha County Circuit Court of Second Degree Sexual Assault. As a result of this conviction, Arthur was required to register as a sex offender. Around January 1, 2016, Arthur moved to Fort Gay in Wayne County, and did not register as a sex offender, despite knowing it was required by law. Arthur continued to reside in Wayne County until his arrest on January 31, 2016.
The investigation of Kelley was conducted by Homeland Security Investigations, the West Virginia State Police, the West Virginia Internet Crimes Against Children Task Force, and the Parkersburg Police Department. Assistant United States Attorneys Lisa G. Johnston and Sarah W. Montoro are in charge of the prosecution of Kelley. United States District Judge John T. Copenhaver, Jr., imposed Kelley’s sentence.
The United States Marshals Service and the West Virginia State Police conducted the investigation of Arthur. Assistant United States Attorney Jennifer Rada Herrald is in charge of Arthur’s prosecution. Chief United States District Judge Robert C. Chambers imposed Arthur’s sentence.
These cases were brought as part of an ongoing initiative of the United States Attorney’s Office to combat child sexual exploitation and abuse in the Southern District of West Virginia.
-
Follow us on Twitter: SDWVNews
-
Two Doctors Face Federal Charges of Illegally Writing Prescriptions for Addictive Narcotics Connected to Gang’s Drug TraffickingRead the Press Release
LOS ANGELES – Two doctors who each operated medical offices in Lynwood have been arrested on federal drug charges that allege they issued prescriptions for narcotics and sedatives without a medical purpose.
The two doctors were charged by the United States Attorney’s Office in conjunction with an operation conducted by the Torrance Police Department and the Los Angeles District Attorney’s Office that targeted members and associates of the East Coast Crips criminal street gang.
The two doctors – Sonny Oparah, 75, of Long Beach, and Edward Ridgill, 64, of Ventura – surrendered to federal authorities on Friday and were released on bond that afternoon after making their first appearances in United States District Court. Both men were ordered to again appear in federal court for arraignments on September 15.
Two criminal complaints unsealed on Friday charge Oparah and Ridgill with illegally prescribing the powerful painkillers hydrocodone (best known as Vicodin or Norco) and codeine (for example, promethazine with codeine cough syrup, which is known on the street as purple drank), alprazolam (commonly known as Xanax), and carisoprodol (a muscle relaxer best known as Soma). According to the affidavit filed in the cases, Oparah issued nearly 13,000 prescriptions for those drugs in a one-year period between July 2014 and July 2015, and Ridgill issued more than 21,000 such prescriptions in a three-year period between July 2011 and July 2014. All of the prescribed drugs were at or near maximum strength.
The affidavit describes 12 undercover operations during which Oparah or Ridgill sold prescriptions in exchange for cash fees. In most instances, the doctors sold the prescriptions without ever examining the undercover officer or cooperating witness. A medical expert’s independent review of the undercover recordings and seized patient files confirmed that there was no legitimate medical basis for the prescriptions. The expert, writing about Oparah, said his “actions are very alarming” and the evidence reflects “extreme departures from the standard of care,” according to the affidavit.
“The powerful drugs in this case, which include addictive painkillers, can kill users who abuse them,” said United States Attorney Eileen M. Decker. “The investigation determined that these doctors were significant suppliers of drugs to a street gang. As the charges in the indictments demonstrate, these doctors enabled the gang’s criminal activity just like street-level drug dealers.”
The arrests of Oparah and Ridgill occurred jointly with a sweep that targeted the East Coast Crips street gang in “Operation Money Bags.” The charges against gang members and their associates are being unsealed today. As described in the federal affidavit, the investigation into Oparah and Ridgill originated when the investigation into the East Coast Crips revealed evidence that “Oparah and Ridgill served as large-scale sources of supply to [gang] members and associates via their issuance of medically unnecessary controlled drug prescriptions.”
“These arrests demonstrate DEA’s resolve to target all drug traffickers regardless of their standing in the community,” said Anthony A. Chrysanthis, Assistant Special Agent in Charge of the DEA’s Los Angeles Field Division. “With our law enforcement partners, we will continue our pursuit of those that contribute to the opioid addiction crisis and poison our society under the guise of the medical profession.”
The federal investigation into Oparah and Ridgill showed that they operated cash businesses. Federal authorities made cash seizures from both doctors, and bank records showing that Ridgill deposited $500,000 in cash into his bank accounts over a period of less than three years.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed innocent until and unless proven guilty.
The investigation in the federal cases against the doctors was conducted by the Drug Enforcement Administration, the Los Angeles Police Department, the Torrance Police Department, IRS - Criminal Investigation, the California Medical Board and the Los Angeles High Intensity Drug Trafficking Area.
The cases against Oparah and Ridgill is being prosecuted by Assistant United States Attorney Benjamin Barron of the Organized Crime Drug Enforcement Task Force.
Tulsa Woman Sentenced to 47 Months for Role in Income Tax Fraud SchemeRead the Press Release
TULSA, Okla.—A Tulsa woman was sentenced today to serve 47 months in prison and pay restitution in the amount of $88,194.23 to the Internal Revenue Service for her role in a scheme to file and obtain refunds from at least 49 false income tax returns, announced United States Attorney Danny C. Williams Sr. of the Northern District of Oklahoma and Special Agent in Charge Damon Rowe of the Internal Revenue Service-Criminal Investigation’s Dallas field office.
Tameka Denise Johnson, 34, pleaded guilty on May 20, 2015, to the federal charge of false claim against the government. Her co-conspirator Sidney Brook Mayfield, 30, of San Antonio, Texas, was sentenced to six months and ordered to pay restitution in the amount of $47,408.91 to the Internal Revenue Service on November 9, 2015. United States District Chief Judge Gregory K. Frizzell presided over both sentencings.
According to court records, during 2011 and 2012, Johnson and Mayfield obtained personal identification information such as names, dates of birth, addresses, and Social Security numbers from various persons, and used that information to create and file fraudulent income tax returns for the years 2010 and 2011. As part of the scheme Mayfield’s role was primarily to gather the personal information, and Johnson made and electronically filed the tax returns using the stolen information.
The case was investigated by IRS-Criminal Investigation. Assistant United States Attorneys Kevin C. Leitch and Clemon Ashley prosecuted the case.
###
St. Louis Man Sentenced for Methamphetamine OffenseRead the Press Release
On August 24, 2016, Gary M. Skinner, 61, of St. Louis, was sentenced for his involvement in a methamphetamine offense, the United States Attorney for the Southern District of Illinois, Donald S. Boyce, announced today.
Skinner, who had previously pled guilty to a one-count superseding indictment charging conspiracy to distribute more than 50 grams of methamphetamine, was sentenced to 121 months imprisonment, 4 years supervised release, and was fined $200.00. The offense occurred between May 2015 and October 26, 2015, in Williamson and Massac Counties. Evidence at the plea and sentencing hearings established that Skinner was involved with co-defendant Brandon L. Watson, a/k/a "Dubb," and others in distributing methamphetamine, in the form of "ice." Ice is methamphetamine which has a purity level of at least 80%. Skinner was delivering multi-ounce amounts of ice to Watson for distribution in the Metropolis area. On October 26, 2015, Skinner’s vehicle was stopped on I-57 in Williamson County for a traffic violation. During a vehicle search, officers located over 200 grams of ice, which Skinner was going to deliver to Watson in Metropolis. Later laboratory analysis confirmed that the ice had purity levels between 98% - 100%. At sentencing, the district court determined that Skinner was responsible for the distribution of more than 907 grams of ice. Co-defendant Watson was previously sentenced to 151 months imprisonment for his role in the methamphetamine conspiracy.
The investigation was conducted by the Southern Illinois Enforcement Group, Illinois State Police, and Drug Enforcement Administration. The Massac County States Attorney’s Office also assisted in the investigation.
Sedalia Sex Offender Pleads Guilty to Child PornRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Sedalia, Mo., sex offender pleaded guilty in federal court today for possessing child pornography.
Jesse William Laws, 37, of Sedalia, pleaded guilty before U.S. Magistrate Judge David P. Rush to the charge contained in a July 15, 2015, federal indictment.
Laws was required to register as a sex offender due to two 2006 federal convictions in the District of Montana for receiving and possessing child pornography, for which he was sentenced to nine years in federal prison. Following incarceration, Laws was placed on supervised release, which was transferred to the Western District of Missouri.
According to today’s plea agreement, the probation office searched Laws’s residence on Feb. 11, 2015, because Laws was suspected of having violated certain conditions of his release. Laws admitted that he had been drinking and that he had been in the presence of children without the permission of the probation office, which were both in violation of his supervised release. The court revoked his supervised release and sentenced him to two years in federal prison without parole.
Probation officers examined a cell phone while they were searching the residence. Investigators found 107 possible images of child pornography on the phone. The browser history revealed multiple visits to a child pornography Web site.
Under federal statutes, Laws is subject to a mandatory minimum sentence of 10 years in federal prison without parole, up to a sentence of 20 years in federal prison without parole, which must be served consecutively to the two-year sentence he is currently serving for the revocation of his supervised release. 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 Lawrence Miller. It was investigated by the U.S. Office of Probation and Parole and the FBI.
Rumford Man Sentenced to Four Years for Firearm PossessionRead the Press Release
Contact: Jonathan R. Chapman
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Troy Blanchard, 27 of Rumford, Maine, was sentenced today in U.S. District Court by Judge D. Brock Hornby to four years in prison and three years of supervised release for possessing a firearm after having been convicted of a felony.
According to court records, on January 19, 2016, officers of the Rumford Police Department saw Blanchard walking on a street in that town carrying a shotgun. Blanchard then dropped the firearm and entered a nearby residence. The police recovered the shotgun and then arrested Blanchard at the residence. Blanchard was prohibited under federal law from possessing firearms because of a 2014 conviction in Oxford County for trafficking in drugs.
The case was investigated by the United States Bureau of Alcohol, Tobacco, Firearms and Explosives and the Rumford Police Department.
Roanoke Man Pleads Guilty to Methamphetamine ChargeRead the Press Release
ROANOKE, VIRGINIA – The third member of a conspiracy that distributed large quantities of various drugs throughout the Roanoke Valley pled guilty today in the United States District Court for the Western District of Virginia in Roanoke to federal drug conspiracy charges, United States Attorney John P. Fishwick Jr. announced.
Noel Phillip Solett, 40, of Roanoke, Va., pled guilty today to one count of conspiring to distribute at least 50 grams of methamphetamine or at least 500 grams of a substance containing a detectable about of methamphetamine.
“These defendants caused great pain to individuals throughout the Roanoke Valley who struggled with addiction to these dangerous substances,” United States Attorney Fishwick said today. “I am grateful to the men and women who investigated and prosecuted this conspiracy and slowed the tide of drugs into our community.”
According to evidence presented at today’s guilty plea hearing by Assistant United States Attorney Laura D. Rottenborn, Solett admitted that between December 2015 and February 2016 he bought methamphetamine from co-conspirator Tyler Johnson. Johnson pled guilty to federal drug charges last week. Solett and Johnson generally met in Roanoke or Salem to conduct their drug transactions. Solett admitted to buying 1,000 grams of crystal methamphetamine from Johnson. Solett then sold the methamphetamine to other drug customers. Solett also sold heroin. One of Solett’s drug customers was Brandon Thomas. Thomas previously pled guilty to federal sex trafficking and drug trafficking charges.
Solett was interdicted by police in February 2016 during the course of a drug transaction in the parking lot of a Roanoke hotel. During a search of his vehicle, Roanoke City Police found two lockboxes in the trunk of his car, which contained methamphetamine, heroin, LSD, and ammunition. Police also recovered a .45 caliber handgun in the driver’s side door compartment.
The investigation of the case was conducted by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations, the Roanoke City Police Department, the Roanoke County Police Department, the Salem Police Department, and the Virginia State Police. Assistant United States Attorneys Donald R. Wolthuis and Laura Day Rottenborn prosecuted the case for the United States.
Roanoke Man Pleads Guilty to Federal Firearm ChargeRead the Press Release
ROANOKE, VIRGINIA – A Roanoke man, who was previously convicted of a crime and therefore prohibited by federal law from possessing a firearm, pled guilty last week to a federal firearms charge, United States Attorney John P. Fishwick Jr. announced today.
Jon Phillip Dumire, 23, of Roanoke, pled guilty last Friday in the United States District Court for the Western District of Virginia in Roanoke to one count of being a previously convicted felon illegally in possession of a firearm.
“Keeping firearms out of the hands of prohibited users is the first step in making our communities less violent,” Untied States Attorney Fishwick said today. “If our friends and neighbors are going to feel safe in our neighborhoods they must know that law enforcement is working to ensure that illegal guns are being taken off the streets.”
According to evidence presented during a guilty plea hearing in District Court last week, in the early morning hours of December 27, 2014, while at a house party on Stewart Avenue, SE in Roanoke, and thereafter, Dumire was armed with two guns, a small silver. 25 caliber pistol with a white handle and a .380 caliber pistol. Dumire was seen holding these guns and wearing them on his hips throughout the events that morning at the party, after the party and inside and outside his residence.
The case was brought following an investigation by the Central Virginia Violent Crime Safe Streets Task Force [Roanoke Violent Crime Task Force], a joint state-federal task force formed in January 2016 led by the FBI that includes the Virginia State Police, Roanoke City Police and Roanoke County Police. While not an official member of the task force, the Bureau of Alcohol, Tobacco, Firearms and Explosives is routinely involved in the work of the task force and was crucial in the Dumire investigation. The case was prosecuted for the United States by United States Attorney John P. Fishwick Jr. and Assistant United States Attorney Daniel Bubar.
Quincy Police Lieutenant Charged with Defrauding his DepartmentRead the Press Release
BOSTON – A Lieutenant with the Quincy Police Department was charged in an indictment unsealed today in connection with collecting double pay while working for the Quincy Police Department in 2015.
Thomas Corliss, 51, was indicted on 12 counts of mail fraud and one count of fraud involving federal funds. Corliss was released on conditions following an appearance before U.S. District Court Magistrate Judge Jennifer C. Boal.
As alleged in the indictment, an internal investigation by the Quincy Police Department revealed that Lieutenant Corliss had fraudulently collected double pay for working multiple details and/or police shifts that overlapped on multiple occasions in 2015. It is also alleged that Corliss collected his regular pay while on vacation in the Bahamas and on Cape Cod in 2015. In total, Corliss’s defrauded the QPD of more than $10,000.
The charge of mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000. The charge of fraud involving federal funds provides for a sentence of no great than 10 years in prison, three years of supervised release and a fine of 250,000. Actual sentences for federal crimes are typically less than the maximum. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Ronald G. Gardella, Special Agent in Charge of the Department of Justice Office of the Inspector General, New York Field Office; and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys Dustin Chao and Ryan DiSantis of Ortiz’s Public Corruption Unit.
The details contained in the charging document are allegations. The defendant is presumed to be innocent unless and until proven guilty beyond a reasonable doubt in the court of law.
Prison for Head Telemarketer at Predatory “Law Firm”Read the Press Release
Assistant U.S. Attorneys Emily W. Allen (619) 546-9738, Valerie Chu (619) 546-6750
NEWS RELEASE SUMMARY – August 29, 2016
SAN DIEGO – San Diego telemarketer Charles Rose was sentenced today to eight months in custody for his role in a fraudulent loan modification scheme that employed as many as 30 telemarketers to sell bogus legal services to hundreds of struggling homeowners. In reality, this “law firm” had just one figurehead attorney, and did not perform any legal services for the 1,000 clients they swindled.
The telemarketers, who reported to Rose and followed his example to make sales, recruited new customers using a series of lies designed to lure them into paying a hefty $3,500 fee to the “law firm” of Haffar & Associates. Using scripts, form letters, and his own recorded sales calls, Rose taught his telemarketing staff how to use a variety of false statements to get desperate homeowners to pay the exorbitant fees. Among the lies used by Rose and his staff were claims of the firm’s “98% success rate,” clean record with the California State Bar, special access and success with “just about every lender,” and specialized staff and “lawyers” who would conduct a “forensic audit” of the clients’ loan documents.
Rose and his co-schemers falsely told victims that their attorneys had “never” lost a client’s home to foreclosure, and that although the firm had a “100% money back guarantee,” no customer had “ever asked for a refund.” In fact, as Rose and figurehead attorney Mohamed Haffar have both admitted, Haffar & Associates did not have anything close to a 98% success rate, did not have any special connections with banks or their legal departments, did not successfully complete loan modifications, and many of their dissatisfied customers never received the refunds they requested.
One of Rose’s co-schemers, Michael Nazarinia, did actually supervise the “case managers” who submitted some loan modification applications to banks. But in contrast to the representations made to clients, attorney Haffar did not directly supervise Nazarinia’s case managers – instead, they dealt with clients without any input or direction from Haffar. The schemers understood that Haffar’s fees were intended to compensate him for the risk he took in allowing Nazarinia and Rose to use his name, bar license, and law firm to execute the scheme.
After Haffar & Associates stopped doing new business, Rose and Nazarinia started a new company, called “REST Report Matters,” charging even more money for a product they claimed would facilitate the review of applications for loan modifications. Rose admitted that he made false representations to potential clients in order to induce them to sign up and pay their fees.
In addition to his fraudulent loan modification scheme, Rose was also charged with tax offenses for failing to report over $120,000 in income from Haffar & Associates to the IRS.
United States Attorney Laura Duffy condemned the conduct in this case, noting that “these individuals preyed on the vulnerability of some of our neediest citizens during their time of hardship and suffering. Our law enforcement partners will continue to root out these scams to punish people who enrich themselves by exploiting others.”
“Charlie Rose aggressively pursued distressed mortgage holders, offering a false sense of hope while he enriched himself,” said Robert Wemyss, Postal Inspector in Charge of the Los Angeles Division. “When criminals use the mail to perpetrate fraud, postal inspectors, with the full cooperation of their law enforcement partners, will actively pursue them until they are brought to justice.”
Anthony J. Orlando, Acting Special Agent in Charge of IRS Criminal Investigation said, “Using the promise of a law firm to represent its clients, the defendants preyed on financially desperate homeowners struggling to keep a roof over their heads. As today’s sentence shows, those who brazenly enrich themselves on the backs of distressed homeowners will be held accountable for their crimes.”
“Charles Rose preyed on others’ misfortune to line his own pockets,” said Special Agent in Charge Leslie DeMarco of the Federal Housing Finance Agency – Office of Inspector General. “The sentence he received today provides justice and will hopefully act as a deterrent to anyone else who might be tempted to engage in similar conduct.”
Three co-defendants were also convicted on federal charges in the scheme. In addition to stipulating to his disbarment, attorney Mohamed Haffar pleaded guilty to tax charges relating to the venture in August 2014, and was later sentenced by U.S. District Judge Houston to three months. Michael Nazarinia pleaded guilty in November 2015 to mail fraud and tax offenses, admitting that he generated a fraudulent lease agreement in order to deceive a client’s mortgage holder and fraudulently delay eviction. Nazarinia also admitted to filing false income tax returns and failing to pay more than $30,000 in taxes. Nazarinia was sentenced to nine months in prison, also by Judge Houston. And in May 2015, Stacy Tuers pleaded guilty on tax charges and admitted that he knew the telemarketers were making false statements to potential clients, but continued to sell Haffar & Associates loan modification services.
DEFENDANT:
Charles Rose, 15CR1786-JAH Age: 32 San Diego, CA
CHARGES
Mail fraud, in violation of 18 U.S.C. § 1341
Maximum Penalties: 20 years’ imprisonment, $250,000 fine or twice the pecuniary loss or gain, $100 special assessment, restitution.
Subscribing to a false tax return, in violation of 26 U.S.C. § 7206(1)
Maximum Penalties: 3 years’ imprisonment, $250,000 fine, $100 special assessment, restitution.
DEFENDANTS PREVIOUSLY CHARGED:
Michael Nazarinia, 15CR2718-JAH Age: 41 San Diego, CA
Mohamed Haffar, 14CR2251-JAH Age: 36 San Diego, CA
Stacy Tuers, 15CR1342-JAH Age: 54 San Diego, CA
AGENCIES
United States Postal Inspection Service
Internal Revenue Service – Criminal Investigation
Federal Housing Finance Agency – Office of Inspector General
Northern Maine Medical Center Agrees to Pay $125,000 to Settle Civil Controlled Substances Act AllegationsRead the Press Release
Contact: Andrew K. Lizotte
Assistant United States Attorney
Tel: (207) 780-3257
Portland, Maine: United States Attorney Thomas E. Delahanty II today announced that Northern Maine Medical Center (“NMMC”), has entered into a civil settlement agreement with the United States in which it will pay $125,000 to resolve allegations that it violated the federal Controlled Substances Act (“CSA”).Controlled substances are strictly regulated in the United States because of their potential for abuse and the danger they pose if improperly used. The CSA establishes a closed system of controls over the handling of controlled substances by registrants, including hospitals, pharmacies and rehabilitation facilities. Violations of the CSA concerning dispensing and administering, distribution, recordkeeping, and other related activities can result in civil penalties.
NMMC is a hospital in Fort Kent, Maine. In addition to acute care services, NMMC also offers long term care and skilled rehabilitation at a location at 25 Bolduc Avenue, in Fort Kent, known as Forest Hill. NMMC operates as a Hospital/Clinic registered with the Drug Enforcement Administration (“DEA”), but does not have a separate registration for Forest Hill.
The settlement resolves allegations that NMMC negligently failed to maintain and keep records of its destruction of Schedule II through V controlled substances at Forest Hill and at its on-site pharmacy. The CSA requires registrants to document the amount, date and manner of destruction and disposal of controlled substances. The Government alleged that the only information NMMC maintained concerning the destruction of controlled substances at Forest Hill was a notation that the drug was “wasted”; that NMMC pharmacy records omitted the manner of disposal; and that NMMC unlawfully distributed controlled substances at Forest Hill because it did not have a registration permitting it to distribute and dispense controlled substances there.
NMMC admitted no wrongdoing in resolving the matter and contended that its actions at all times complied with the applicable CSA requirements. NMMC cooperated fully throughout the investigation.
The case was investigated by the DEA’s Office of Diversion Control. The civil action is docketed United States v. Northern Maine Medical Center, 16-cv-00445-JDL (D. Me.).
Multiple defendants plead guilty to federal drug crimesRead the Press Release
HUNTINGTON, W.Va. – Multiple defendants pleaded guilty today to federal drug crimes, announced United States Attorney Carol Casto.
Jerrell Leon Johnson, 53, of Huntington, pleaded guilty in federal court in Huntington to possession with intent to distribute 28 grams or more of crack. On January 20, 2016, members of the Drug Enforcement Administration conducted a search of Jerrell Johnson’s residence located on Rear 9th Avenue in Huntington. During that search, agents located approximately 48 grams of crack inside a kitchen drawer. Jerrell Johnson admitted that he intended to sell the crack seized by law enforcement. Agents also located a large amount of cocaine in the residence. Jerrell Johnson faces at least five and up to 40 years in federal prison when he is sentenced on December 5, 2016.
In a separate drug prosecution, Ashley Nicole Farley, 25, of Huntington, pleaded guilty in federal court in Huntington to possession with intent to distribute heroin. On August 27, 2015, Farley was arrested on a warrant for distribution of heroin. In a search of Farley incident to her arrest, officers located a gray tan powder and cash. The cash contained marked currency from a previous undercover heroin buy from Farley. Farley faces up to 20 years in federal prison when she is sentenced on December 5, 2016.
In another separate drug prosecution, Antonio Tarvares Johnson, 39, of Charleston, pleaded guilty in federal court in Charleston to distribution of heroin. Antonio Johnson admitted that on September 28, 2015, he sold heroin to a confidential informant working with law enforcement. The drug deal took place at the Motel 6 in Cross Lanes. Antonio Johnson additionally admitted that he sold drugs to a confidential informant on September 29, 2015, and on December 16, 2015. Antonio Johnson faces up to 20 years in federal prison when he is sentenced on December 12, 2016.
The Drug Enforcement Administration conducted the investigation of Jerrell Johnson. The investigation of Farley was conducted by the Huntington FBI Drug Task Force. Assistant United States Attorney Gregory McVey is handling the prosecutions. The plea hearings for Jerrell Johnson and Farley were held before Chief United States District Judge Robert C. Chambers.
The Metropolitan Drug Enforcement Network Team conducted the investigation of Antonio Johnson. Assistant United States Attorney Clint Carte is responsible for the prosecution of Antonio Johnson. The plea hearing for Antonio Johnson was held before United States District Judge Thomas E. Johnston.
These cases are being prosecuted as part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of illegal drugs, including heroin and crack. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down pill trafficking, eliminating open air drug markets, and curtailing the spread of illegal drugs in communities across the Southern District.
-
Follow us on Twitter: SDWVNews
-
Miami Gardens Resident Pleads Guilty to Participating in Sophisticated International Cellphone Fraud SchemeRead the Press Release
A Miami Gardens, Florida, resident pleaded guilty today to multiple criminal charges in connection with a sophisticated global cell phone fraud scheme that involved compromising cellphone customers’ accounts and “cloning” their phones to make fraudulent international calls.
U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, and Special Agent in Charge George L. Piro of the FBI’s Miami Field Office made the announcement.
Edwin Fana, 37, pleaded guilty to one count of conspiracy to commit wire fraud, access device fraud, the use, production or possession of modified telecommunications instruments, and the use or possession of hardware or software configured to obtain telecommunications services. Fana also pleaded guilty to one count of wire fraud and one count of aggravated identity theft. Sentencing will be scheduled for a later date before U.S. District Judge Daniel T.K. Hurley of the Southern District of Florida.
According to the plea agreement, Fana and his co-conspirators participated in a scheme to steal access to and fraudulently open new cellphone accounts using the personal information of individuals around the United States. Fana admitted that the conspirators then trafficked in the cellphone customers’ telecommunication identifying information, using that data as well as other software and hardware to reprogram cellphones that they controlled to transmit thousands of international calls to Cuba, Jamaica, the Dominican Republic and other countries with high calling rates. The calls were billed to the victims’ compromised accounts, he admitted.
Fana’s role in the scheme included operating a “call site” in his residence in Miami Gardens, according to the plea agreement. He admitted that he would receive telecommunication identifying information associated with victims’ accounts from his co-conspirators and use that data to re-program cellphones that he controlled. According to the plea agreement, Fana’s co-conspirators would then transmit international calls over the internet to Fana’s residence, where he would route them through the re-programmed cellphones. In October 2012, the FBI executed a search warrant on Fana’s residence and discovered approximately 88 cellphones connected to networking equipment and actively routing calls.
Fana admitted that law enforcement seized nearly 11,000 telecommunications identifying numbers from him and that the scheme caused at least $1 million in losses.
The FBI investigated the case, dubbed Operation Toll Free, which is part of the bureau’s ongoing effort to combat large-scale telecommunications fraud. Assistant U.S. Attorney Jared M. Strauss of the Southern District of Florida and Senior Counsel Matthew A. Lamberti of the Criminal Division’s Computer Crime and Intellectual Property Section are prosecuting the case.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.