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1 August 2016
Cincinnati-Area Man Pleads Guilty to Terrorism ChargesRead the Press Release
CINCINNATI – Christopher Lee Cornell, 22, of Green Township, Ohio, pleaded guilty today to one count of attempting to kill government employees, one count of possession of a firearm in furtherance of a crime of violence and one count of attempting to provide material support to a designated foreign terrorist organization.
The plea was announced by Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Benjamin C. Glassman of the Southern District of Ohio and Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Division. Cornell pleaded guilty before Senior U.S. District Judge Sandra Beckwith of the Southern District of Ohio.
Cornell was originally charged by an indictment returned by a federal grand jury on Jan. 21, 2015. On May 7, 2015, Cornell was additionally charged by superseding indictment with attempting to provide material support to a designated foreign terrorist organization.
According to the plea agreement, from on or about August 2014 through January 2015, Cornell plotted, planned and attempted to travel to Washington, D.C., in order to attack the U.S. Capitol during the State of the Union Address on January 20, 2015.
Cornell admitted that he conducted online research of weapons, the construction of bombs, the U.S. Capitol and other potential targets in the Washington, D.C., area. Cornell intended to kill officers and employees of the United States, and possessed two semi-automatic rifles and approximately 600 rounds of ammunition, according to the plea agreement.
The defendant admitted that his planned attack on the U.S. Capitol was an attempt to provide material support and resources – both personnel and services – to the Islamic State of Iraq and the Levant (ISIL).
The material support count carries a potential maximum sentence of 15 years in prison. Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison. Possession of a firearm in furtherance of an attempted crime of violence is a crime punishable by a mandatory sentence of five years up to life in prison.
Cornell was arrested on Jan. 14, 2015, by the FBI’s Joint Terrorism Task Force (JTTF). After his arrest, he posted statements online that included a call for others to join him in violent jihad against the United States and its citizens on behalf of ISIL, according to his admissions in the plea agreement.
The JTTF is made up of officers and agents from the Cincinnati Police Department, Colerain, Police Department, Dayton Police Department, Ohio State Highway Patrol, University of Cincinnati Police Department, U.S. Air Force Office of Special Investigations, FBI, U.S. Immigrations and Customs Enforcement, U.S. Internal Revenue Service, U.S. Secret Service, U.S. Postal Inspection Service, West Chester Police Department and Xenia Police Department.
Assistant Attorney General Carlin and Acting U.S. Attorney Glassman commended the JTTF for its investigation of this case. The case is being prosecuted by Assistant U.S. Attorney Tim Mangan and Trial Attorney Michael Dittoe of the National Security Division’s Counterterrorism Section.
Canfield man indicted for being a felon in possession of a firearmRead the Press Release
A federal grand jury turned a one-count indictment charging John T. Dellick, 22, of Canfield, with being a felon in possession of a firearm and ammunition, said Carole S. Rendon, U.S. Attorney for the Northern District of Ohio.
Dellick was taken into custody this morning.
Dellick possessed an Armi Galesi, model Brevetta, .25 caliber pistol, and ammunition, on Jan. 3, despite a previous convicting for aggravated assault in the Court of Common Pleas, Mahoning County, in 2015, according to the indictment.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Boardman Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
California Man Sentenced to 70 Years in Federal Prison for Traveling to Cambodia to Engage in Illicit Sex with Young GirlRead the Press Release
LOS ANGELES – A California man who was found guilty at trial of traveling to Cambodia to have illicit sexual conduct with young girls was sentenced today to 70 years in federal prison and $40,000 restitution to a victim.
Ronald Gerard Boyajian, 55, who previously resided in Menlo Park and has spent time on the Palos Verdes peninsula, was sentenced this afternoon by United States District Judge Christina A. Snyder.
At today’s hearing, Judge Snyder observed that “the conduct was extremely serious.” In imposing the maximum sentence, the court stated that it is “obvious that the reason for the sentence is for the protection of the public and to deter such behavior in the future.”
Following a six-week trial earlier this year, Boyajian was found guilty of three child exploitation crimes – traveling to Cambodia with the intent to engage in illicit sexual conduct, engaging in illicit sexual conduct with a nine-year-old girl in Cambodia, and committing these offenses while being required to register as a sex offender under California law.
Boyajian was arrested by the Cambodian National Police (CNP) in February 2009, while he was on his 35th trip to Asia over a nine-year period. Boyajian began traveling to Cambodia shortly after completing his parole following convictions on 22 counts of illegal sex with a minor and oral sex with a minor in 1995.
“Pedophiles will not escape punishment by crossing international borders to sexually assault children,” said United States Attorney Eileen M. Decker. “After being convicted of sexually exploiting two children here in California, this defendant tried to evade justice by traveling to Cambodia to victimize even younger children. As today’s sentence demonstrates, however, if you travel anywhere in the world for sex with children, the U.S. Department of Justice will be tenacious in prosecuting you and pursuing justice for the young victims of this hideous crime.”
Four victims whom Boyajian had sexually assaulted testified against him at trial. Each girl was between 8 and 11 years old when Boyajian purchased them from their mother and grandmothers to sexually abuse them. One victim, who was approximately 8 when Boyajian assaulted her, testified at trial that “he was abusive, he was cruel, he treated me like I wasn’t even human.”
At a hearing last week, the four testifying victims appeared before Judge Snyder. The youngest victim, who is now approximately 16 years old, asked for a strong sentence: “I would like the court not to allow him to leave prison because there are possibly other children out there who could be harmed, just like it happened to me.”
Boyajian paid pimps and relatives from impoverished families to gain access to his victims, which he preferred to weigh less than 70 pounds. While the attacks took place in the village of Svay Pak – a notorious destination for pedophiles from around the world, the victims were Vietnamese immigrants who lived in the poor community. A CNP anti-human trafficking officer testified at trial that Svay Pak was well known as a place where foreigners went to have sexual contact with females, often young girls. Boyajian went to Svay Pak to have “unlimited access to young girls for sex,” prosecutors said in court.
“Given the defendant’s age, this prison term amounts to a life sentence and assures no more children will be fall prey to this serial pedophile,” said Joseph Macias, special agent in charge for HSI Los Angeles. “Successful prosecutions are crucial to combatting child sex tourism, but HSI is also focused on strategies to prevent such crimes from occurring, including Operation Angel Watch where HSI alerts foreign law enforcement when a convicted child predator is planning to travel to their country. Last fiscal year, HSI made over 2,100 notifications to more than 90 countries.”
According to a sentencing brief filed by prosecutors, Boyajian was convicted in 1995 of unlawful sex with two 16-year-old girls, making him “a repeat and dangerous sex offender against minors.”
Boyajian’s sentencing follows lengthy sentences imposed on other sex tourists who were prosecuted in Los Angeles, including Michael Joseph Pepe, who was sentenced to 210 years in federal prison after being convicted of abusing seven victims in Cambodia, and Stanley Dan Reczko, who received a mandatory life-without-parole sentence for producing child pornography with a minor victim in the Philippines.
The case against Boyajian is the result of an investigation by U.S. Immigration and Customs Enforcement’s Homeland Security Investigations in Los Angeles and HSI’s Attaché Offices in Bangkok, Phnom Penh and Ho Chi Minh, with the assistance of the United States Embassy in Phnom Penh.
The case against Boyajian was prosecuted by David M. Herzog and Vanessa Baehr-Jones of the Violent and Organized Crime Section.
California Man Pleads Guilty to Wire Fraud and Aggravated Identity TheftRead the Press Release
BOISE – Derrick Courtney Franklin, II, 28, of Los Angeles, California, pleaded guilty on August 1, 2016, to wire fraud and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Franklin was indicted by a federal grand Jury in Boise on October 14, 2015.
According to the court proceedings, Franklin agreed to travel to Idaho for the purpose of making fraudulent purchases of gift cards and prepaid debit cards from retail stores, using stolen credit card numbers encoded and embossed onto stock debit and credit cards. Franklin and his co-conspirator, Jassmine Pettaway, 27, of Inglewood, California, made at least eight fraudulent purchases from at least four different retail stores, in the amount of at least $20,225.86. Two of those purchases were made at the Nike Factory Store in Meridian for a total of $18,204.54. Law enforcement recovered a fake Michigan driver’s license, at least 19 counterfeit credit cards, and at least 45 gift cards. Pettaway pleaded guilty on April 5, 2016, to wire fraud and aggravated identity theft. She is scheduled to be sentenced on August 29, 2016.
Wire fraud is punishable by up to 20 years in prison, a maximum fine of $250,000.00, and up to 3 years of supervised release, and a special assessment of $100. Aggravated identity theft is punishable by a mandatory minimum term of imprisonment of two years, a term of supervised release of not more than one year, and a fine up to $250,000.
Sentencing for Franklin is set for October 18, 2016, before Chief U.S. District Judge B. Lynn Winmill at the federal courthouse in Boise.
The case was investigated by the Meridian Police Department, the Boise Police Department, and the U.S. Secret Service (USSS).
California Businessman Charged with Conspiring with Israeli Banks to Hide IncomeRead the Press Release
Concealed Foreign Accounts and Failed to Report More Than $20 Million
A Los Angeles, California, businessman was charged today in an information, which charges one count of conspiracy to defraud the United States and one count of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Masud Sarshar, who owned and operated Apparel Limited Inc., a business that designed, manufactured and sold clothing and other apparel, signed a plea agreement admitting that he maintained several undeclared bank accounts at Bank Leumi and two other Israeli banks, both in his name and in the names of entities that he created. For decades, with the assistance of at least two relationship managers from Bank Leumi and a second Israeli bank (Israeli Bank A), Sarshar hid tens of millions of dollars in assets in these accounts in an effort to conceal income and obstruct the Internal Revenue Service (IRS). As alleged in the information, between 2006 and 2009, Sarshar diverted more than $21 million in untaxed gross business income to these undeclared bank accounts. Between 2007 and 2012, Sarshar also earned more than $2.5 million in interest income from these accounts. Sarshar omitted all of this income from his 2006 through 2011 individual and corporate tax returns and he failed to report his authority over and ownership of these bank accounts in false Reports of Foreign Bank and Financial Accounts (FBARs) that he submitted to the U.S. Department of Treasury.
Sarshar signed a plea agreement to the charges in the information, agreeing to plead guilty and pay more than $8.3 million in restitution to the IRS. If the court accepts the parties’ agreement, Sarshar will be sentenced to 24 months in prison. In addition, Sarshar stipulated to a civil penalty in the amount of 50 percent of the high balance of his undeclared accounts to resolve his civil liability for not disclosing the existence of his Israeli bank accounts.
“Mr. Sarshar stashed millions in secret foreign financial accounts in Israel and then sought to use these accounts to evade his U.S. tax obligations, seeking to cover his tracks along the way,” said Principal Deputy Assistant Attorney General Ciraolo. “The message of this case is clear: There are no safe havens. If you are concealing assets and income in undeclared offshore accounts – or are a banker, an asset manager or otherwise are assisting accountholders in such criminal conduct, your only viable option is to come forward and accept responsibility for your actions. Those who continue to violate U.S. tax laws will be held accountable and pay a heavy price.”
According to the information and statement of facts, Sarshar’s relationship managers at Israeli Bank A (RM1) and at Bank Leumi (RM2) visited him frequently in Los Angeles. At his request, neither bank sent him account statements by mail, but rather, RM1 and RM2 provided Sarshar with his account information in person. For example, RM2 loaded electronic copies of Sarshar’s Bank Leumi account statements on a USB drive, which she concealed in a necklace worn during her trips to the United States. To further maintain the secrecy of his accounts, Sarshar’s meetings with RM1 sometimes occurred in Sarshar’s car. RM1 and RM2 also used these visits to Los Angeles to offer Sarshar other bank products, including “back-to-back” loans. Through back-to-back loans, which Bank Leumi made to Sarshar through its branch in the United States and which Sarshar collateralized with funds from his account at Israeli Bank A, Sarshar was able to bring back to the United States approximately $19 million of his offshore assets without creating a paper trail or otherwise disclosing the existence of the offshore accounts to U.S. authorities. At the direction of RM1 and RM2, Sarshar also obtained Israeli and Iranian passports in an effort to avoid being flagged as a U.S. citizen by the compliance departments at both banks. After receiving both new passports and still being flagged as a U.S. citizen by their compliance departments, RM1 and RM2 advised Sarshar to transfer his remaining funds to yet another Israeli bank, which he did in late 2011.
“As the filing of today’s criminal charges demonstrate, the days of bank secrecy is rapidly changing,” said Chief Richard Weber for IRS-Criminal Investigation. “There's no safe place for taxpayers to divert and hide income anywhere in the world. IRS-CI works vigorously to stop offshore tax schemes such as this one and is proud that our forensic accounting skills helped uncover over $21 million in untaxed gross business income in this investigation.”
Principal Deputy Assistant Attorney General Ciraolo commended special agents from IRS-Criminal Investigation, who are investigating the case and Assistant Chief Tino M. Lisella and Trial Attorney Timothy M. Russo, of the Tax Division, who are prosecuting this case. The Tax Division thanks the U.S. Attorney’s Office of the Central District of California for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
California Businessman Charged with Conspiring with Israeli Banks to Hide IncomeRead the Press Release
WASHINGTON – A Los Angeles, California, businessman was charged today in an information, which charges one count of conspiracy to defraud the United States and one count of corruptly endeavoring to impair and impede the due administration of the internal revenue laws, announced Principal Deputy Assistant Attorney General Caroline D. Ciraolo, head of the Justice Department’s Tax Division.
Masud Sarshar, who owned and operated Apparel Limited, Inc., a business that designed, manufactured, and sold clothing and other apparel, signed a plea agreement admitting that he maintained several undeclared bank accounts at Bank Leumi and two other Israeli banks, both in his name and in the names of entities that he created. For decades, with the assistance of at least two relationship managers from Bank Leumi and a second Israeli bank (Israeli Bank A), Sarshar hid tens of millions of dollars in assets in these accounts in an effort to conceal income and obstruct the Internal Revenue Service (IRS). As alleged in the information, between 2006 and 2009, Sarshar diverted more than $21 million in untaxed gross business income to these undeclared bank accounts. Between 2007 and 2012, Sarshar also earned more than $2.5 million in interest income from these accounts. Sarshar omitted all of this income from his 2006 through 2011 individual and corporate tax returns and he failed to report his authority over and ownership of these bank accounts in false Reports of Foreign Bank and Financial Accounts (FBARs) that he submitted to the U.S. Department of Treasury.
Sarshar signed a plea agreement to the charges in the information, agreeing to plead guilty and pay more than $8.3 million in restitution to the IRS. If the court accepts the parties’ agreement, Sarshar will be sentenced to 24 months in prison. In addition, Sarshar stipulated to a civil penalty in the amount of 50 percent of the high balance of his undeclared accounts to resolve his civil liability for not disclosing the existence of his Israeli bank accounts.
“Mr. Sarshar stashed millions in secret foreign financial accounts in Israel and then sought to use these accounts to evade his U.S. tax obligations, seeking to cover his tracks along the way,” said Principal Deputy Assistant Attorney General Ciraolo. “The message of this case is clear: There are no safe havens. If you are concealing assets and income in undeclared offshore accounts – or are a banker, an asset manager or otherwise are assisting accountholders in such criminal conduct, your only viable option is to come forward and accept responsibility for your actions. Those who continue to violate U.S. tax laws will be held accountable and pay a heavy price.”
According to the information and statement of facts, Sarshar’s relationship managers at Israeli Bank A (RM1) and at Bank Leumi (RM2) visited him frequently in Los Angeles. At his request, neither bank sent him account statements by mail, but rather, RM1 and RM2 provided Sarshar with his account information in person. For example, RM2 loaded electronic copies of Sarshar’s Bank Leumi account statements on a USB drive, which she concealed in a necklace worn during her trips to the United States. To further maintain the secrecy of his accounts, Sarshar’s meetings with RM1 sometimes occurred in Sarshar’s car. RM1 and RM2 also used these visits to Los Angeles to offer Sarshar other bank products, including “back-to-back” loans. Through back-to-back loans, which Bank Leumi made to Sarshar through its branch in the United States and which Sarshar collateralized with funds from his account at Israeli Bank A, Sarshar was able to bring back to the United States approximately $19 million of his offshore assets without creating a paper trail or otherwise disclosing the existence of the offshore accounts to U.S. authorities. At the direction of RM1 and RM2, Sarshar also obtained Israeli and Iranian passports in an effort to avoid being flagged as a U.S. citizen by the compliance departments at both banks. After receiving both new passports and still being flagged as a U.S. citizen by their compliance departments, RM1 and RM2 advised Sarshar to transfer his remaining funds to yet another Israeli bank, which he did in late 2011.
“As the filing of today’s criminal charges demonstrate, the days of bank secrecy is rapidly changing,” said Chief Richard Weber for IRS-Criminal Investigation. “There's no safe place for taxpayers to divert and hide income anywhere in the world. IRS-CI works vigorously to stop offshore tax schemes such as this one and is proud that our forensic accounting skills helped uncover over $21 million in untaxed gross business income in this investigation.”
Principal Deputy Assistant Attorney General Ciraolo commended special agents from IRS-Criminal Investigation, who are investigating the case and Assistant Chief Tino M. Lisella and Trial Attorney Timothy M. Russo, of the Tax Division, who are prosecuting this case. The Tax Division thanks the U.S. Attorney’s Office of the Central District of California for its assistance.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Allen Man Sentenced to 17 Years and 6 Months for Second Degree MurderRead the Press Release
United States Attorney Randolph J. Seiler announced that an Allen, South Dakota man convicted of Second Degree Murder was sentenced on July 28, 2016 by Chief Judge Jeffrey L. Viken, U.S. District Court.
Nile Paul Waters, a/k/a Nile Hollow Horn Bear, age 21, was sentenced to 17 years and 6 months in custody; 3 years supervised release, $100 special assessment to the Federal Crime Victims Fund, and $858.36 in restitution.
Waters was indicted for Second Degree Murder by a federal grand jury on July 14, 2015. He pled guilty on March 25, 2016.
On July 6, 2015, Waters was in Pine Ridge, South Dakota, with his girlfriend, Stanna Piper. Later in the day, Waters and Piper met Theodore Red Cloud, the victim, at Red Cloud’s residence. Waters, Piper, and Red Cloud went to another residence in the Old Sundance Grounds area. They began drinking alcohol. Waters and Red Cloud had a verbal altercation and physical struggle inside the trailer. Red Cloud then left the trailer. Moments later, a sliding glass door was broken. Waters and Piper went outside to see what happened. Once outside, Waters and Red Cloud each had a club-like weapon and they got into another physical altercation. Red Cloud fell to the ground. The Waters hit Red Cloud at least four times on his body with the club-like weapon. Red Cloud died as a result of his injuries from the assault. At least one other individual was involved in the assault.
This case was investigated by the Federal Bureau of Investigation, Bureau of Indian Affairs, Office of Justice Services, and the Oglala Sioux Tribe Department of Public Safety. Assistant U.S. Attorney Kathryn N. Rich prosecuted the case.
Waters was immediately turned over to the custody of the U.S. Marshals Service.
Albuquerque Man Pleads Guilty to Federal Drug Trafficking ChargesRead the Press Release
ALBUQUERQUE – Johnny Ramirez, 33, of Albuquerque, N.M., pled guilty today in federal court to violating federal drug trafficking laws. Under the terms of his plea agreement, Ramirez will be sentenced to 84 months in federal prison followed by a term of supervised release to be determined by the court.
Ramirez and his co-defendant Larry Valadez, 33, also of Albuquerque, were charged on Dec. 1, 2015, with drug trafficking offenses in an eight-count indictment. Ramirez and Valadez were charged with conspiring to distribute methamphetamine and heroin in May 2015, and with distributing methamphetamine and heroin in May 2015 and June 2015. According to the indictment, all eight offenses occurred in Bernalillo County, N.M. The indictment included forfeiture provisions, requiring Ramirez to forfeit $4,200 and Valadez to forfeit $4,100 to the United States.
During today’s proceedings, Ramirez pled guilty to two methamphetamine distribution counts and one heroin distribution count. In entering the guilty plea, Ramirez admitted that on May 19, he arranged for a co-conspirator to sell 23.52 grams of methamphetamine and 4.3 grams of heroin to an individual who was working with the FBI. Ramirez also admitted that on June 16, 2015, he sold 14.71 grams of methamphetamine to the same individual working with the FBI. Ramirez acknowledged that the drug deals took place in Albuquerque.
Ramirez remains in custody pending a sentencing hearing which has yet to be scheduled.
Valadez has entered a not guilty plea to the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of the FBI and the New Mexico State Police. The Organized Crimes Section of the U.S. Attorney’s Office prosecuted the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic, which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with the DEA, the Bernalillo County Opioid Accountability Initiative, Healing Addiction in our Community (HAC), the Albuquerque Public Schools and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Ackerman Man Pleads Guilty to Two Counts of Harvesting Deer on Natchez TraceRead the Press Release
OXFORD, Miss. Felicia C. Adams, United States Attorney for the Northern District of Mississippi, and Luis Santiago, Special Agent in Charge of the United States Fish and Wildlife Service, announced that:
James Larry McClure, 41, of Ackerman, Mississippi, pled guilty on July 28, 2016, before United States Magistrate Judge David A. Sanders, in Aberdeen, Mississippi, to two counts of harvesting White-tailed Deer within the boundary of the Natchez Trace Parkway in violation of federal law.
Following his guilty plea, McClure was sentenced to a term of probation of two (2) years and ordered to pay a fine of $3725.00 for each count of conviction, for a total fine of $7450.00. As a condition of his probation, McClure will be prohibited from hunting in any manner or any location for a period of two (2) years.
“This prosecution has been the result of seamless cooperation between the Mississippi Department of Wildlife, Fisheries, and Parks and the United States Fish and Wildlife Service,” said United States Fish and Wildlife Service Special Agent in Charge Santiago. “Our collective efforts help ensure that these resources will be here for future generations of fair chase hunters, trappers and outdoor enthusiasts.”
“Our officers will go to great lengths investigating each case to the fullest, wherever the facts may lead, to ensure justice is served,” states Colonel Steve Adcock, Mississippi Department of Wildlife, Fisheries, and Parks. “We appreciate the efforts of the United States Fish and Wildlife Service and the ability to work closely with them on cases such as this.”
This case was investigated by the United States Fish and Wildlife Service Office of Law Enforcement and the Mississippi Department of Wildlife, Fisheries and Parks.
"One Community Guam" and "One Community NMI"Read the Press Release
In response to the “Smart on Crime” Initiative announced in 2013 by then-Attorney General Eric Holder, Alicia A.G. Limtiaco, U.S. Attorney for the Districts of Guam and the Northern Mariana Islands (NMI), spearheaded a joint effort with the U.S. Attorney’s Office Diverse Community Outreach Coalition (“Coalition”) to put a spotlight on the need for support and services for vulnerable populations and those reentering from incarceration.
U.S. Attorney Limtiaco and the Coalition, comprised of the faith-based community, Consular Corps, private sector, government agencies, non-governmental/nonprofit/civic organizations, medical/mental/public health professionals, and educational institutions, recognized that crime prevention, strengthening protections for vulnerable populations, and reentry efforts require community ownership and a true community response for there to be an effective positive impact in the districts. In response to this need, U.S. Attorney Limtiaco and the Coalition identified and implemented key strategies calling for stakeholders in each of the districts to cooperate and collaborate as “One Community Guam” and “One Community CNMI.”
In June 2015, U.S. Attorney Limtiaco, with support of the Coalition, organized unprecedented multi-day training conferences in Guam and Saipan, NMI entitled, “Engaging Our Community in Crime Prevention, Strengthening Protections for Vulnerable Populations, and Reentry Efforts through Workforce Development Strategies.” This year, consistent with recommendations discussed at the 2015 conferences regarding the need for increased public awareness about and the implementation of reentry programs, the U.S. Attorney launched the 2nd Annual “One Community Guam” and “One Community CNMI” conferences, an ambitious schedule of three days of trainings developed to target key stakeholders and critical to the success of vulnerable populations and reentering offenders.
An initial outreach effort by the U.S. Attorney’s Office entitled, “Improving Criminal Justice Outcomes,” was held on March 1, 2016, and focused on community stakeholders. The keynote speaker was Michael G. Santos - author, motivational speaker, life coach, trainer and prison consultant. Mr. Santos served 26 years of a 45-year federal prison term for drug offenses. Mr. Santos developed the “Straight A Guide Reentry Course” and the “Earning Freedom Mastermind Reentry Course.” These programs have been adopted at several penitentiaries and have been lauded as exceptional in preparing inmates for becoming law-abiding, contributing citizens. Mr. Santos spoke to the group via videoconference about his own personal journey through 26 years in federal prison, the challenges faced by those in prison and the opportunities for reentry into the community.
In June 2016, the U.S. Attorney’s Office hosted its second conferences, “One Community Guam” and “One Community CNMI”, this time sponsoring Mr. Santos to provide in-person training to both districts. Upon his arrival in Guam, Mr. Santos hit the ground running by meeting with three groups of inmates at the Department of Corrections and, later, parolees and their families, to discuss the importance of cognitive and life skills development. On June 27 and 28, 2016, Mr. Santos trained at six venues on Guam, and on June 29 and 30, 2016, he travelled to and trained at two venues in Saipan, NMI, to meet with key stakeholders. Training was conducted for adult and youth corrections staff including corrections officers and caseworkers, social workers, and medical, mental and public health professionals, working within or associated with the correctional institutions; law enforcement/prosecutors; public defenders/defense counsel; pretrial officers; probation officers; parole officers; and other related professionals working with our criminal and juvenile justice systems. Mr. Santos also conducted training for selected offenders – adult and justice-involved youth, appropriate to act as peer facilitators for other adult offenders and justice-involved youth. Training for community stakeholders including our nonprofits, faith based community, government agencies, private sector and military counterparts was also held. Mr. Santos’ reentry course included lessons on: (1) how to develop communication skills and why those skills relate to success; (2) how to develop self-directed learning techniques; (3) how to develop critical thinking skills; and (4) how to reject criminal lifestyles and criminal associations. Mr. Santos also explained the “Seven A’s” critical to successful reentry: attitude, aspirations, actions, accountability, awareness, achievement and appreciation.
In total, Mr. Santos worked with leadership from the U.S. Attorney’s Office to conduct 25 training sessions on “Earning Freedom and Reentry” in both Guam and the NMI. The training sessions were widely attended, with over 300 attendees in Guam, and over 80 attendees in Saipan.
On June 30 and July 1, 2016, the U.S. Attorney’s Office hosted its third “One Community” conference in Guam and Saipan entitled, “Employment and Reentry – Connecting Employers and Their Employees with Government Opportunities.”
In Guam, the training focused on “Doing Business with DoD” and provided information on contractual, legal and policy requirements regarding base access in Guam and local procedures used to implement these requirements, including: what DoD contracts say about access; DoD / U.S. Department of the Navy (DoN) / Joint Region Marianas (JRM) policies covering base access, including information on the eligibility of individuals with prior convictions; installation specific application access policies; and appeal of the denial process and related information. Panel members included Small Business Advisors, Naval Facilities Engineering Command Marianas; Regional Program Director for Force Protection, Joint Region Marianas; USAF, 36th Security Force Squadron; and USAF, 36th Wing Staff Judge Advocate and Assistant Staff Judge Advocate. Another panel entitled, “What Employers Need to Know” provided information on Equal Employment Opportunity laws and guidance, including the use of criminal background checks and consideration of arrest and conviction records in employment decisions, and the disparate impact on vulnerable populations and their reentry to the workforce; “Ban the Box” legislation; Work Opportunity Tax Credit (WOTC); affirmative action; social security programs; and related issues. Additional topics included an overview of the immigration process and compliance by employers with federal immigration laws, including the Immigration Reform and Control Act requiring employers to verify the identity and employment eligibility of their employees and criminal and civil sanctions for employment related violations. Speakers on this panel included the Equal Employment Opportunity Commission, U.S. Department of Labor, U.S. Department of Homeland Security/Immigration and Customs Enforcement/Homeland Security Investigations, U.S. Department of Homeland Security/U.S. Citizenship and Immigration Services, and Social Security Administration. The last panel entitled, “A Local Perspective: Employment Challenges, Best Practices and Resources,” discussed challenges and barriers to employment, and strategies and approaches, such as the Workforce Innovation and Opportunity Act (WIOA) and Guam’s Combined State Plan for Program Year 2016-2019 addressing workforce needs of businesses and those seeking jobs including individuals who have consistently faced significant barriers to employment such as ex-offenders, Veterans, low- income individuals, individuals with disabilities, homeless individuals, individuals facing substantial cultural barriers, and other vulnerable populations. Additional topics included the Guam Registered Apprenticeship Program (GRAP) which provides incentives for employers who are sponsors of apprenticeships; and relevant local labor and employment regulations, best practices and resources. Testimonials of employers who have successfully employed offenders who have reentered the community were also shared. Speakers on this panel included Guam Department of Labor, Guam Chamber of Commerce, Guam Contractors Association (GCA), GCA Trades Academy, and Guam Community College. In addition, Mr. Santos spoke about his own personal journey, the importance of and critical need for preparing offenders for reentry into the community, and the important role of employers in the reentry process.
In Saipan, the training included a session on “What Employers Need to Know.” The speakers discussed information on Equal Employment Opportunity laws and guidance, including the use of criminal background checks and consideration of arrest and conviction records in employment decisions, and the disparate impact on vulnerable populations and their reentry to the workforce; “Ban the Box” legislation; Work Opportunity Tax Credit (WOTC); affirmative action; social security programs; and an overview of the immigration process and compliance by employers with federal immigration laws, including the Immigration Reform and Control Act requiring employers to verify the identity and employment eligibility of their employees and criminal and civil sanctions for employment related violations. The second session was on “Earning Freedom and Reentry,” a presentation by Mr. Santos on his journey through federal prison, the challenges faced by those incarcerated, the importance of reentry programs, and the opportunities for reentry into the community. The third session shared “A Local Perspective: Employment Challenges, Best Practices and Resources.” The panel members discussed challenges and barriers to employment, and strategies and approaches to assist the workforce and businesses in hiring individuals who have consistently faced significant barriers, such as ex- offenders, Veterans, low-income individuals, individuals with disabilities, homeless individuals, individuals facing substantial cultural barriers, and other vulnerable populations; WOTC; and relevant local labor and employment regulations, best practices and resources. The speakers included representatives from the Equal Employment Opportunity Commission; Social Security Administration; Homeland Security Investigations, U.S. Department of Homeland Security; U.S. Citizenship and Immigration Services, U.S. Department of Homeland Security; CNMI Department of Labor; Office of Personnel Management; Northern Marianas College; Nutrition Assistance Program and Division of Youth Services, CNMI Department of Community & Cultural Affairs; Northern Marianas Trades Institute; and Island Training Solutions.
In furtherance of the “Smart on Crime” Initiative, the U.S. Attorney worked with the Governor of Guam and the Governor of the Northern Mariana Islands to coordinate the proclamation of April 24-30, 2016, as National Reentry Week. The proclamations were held on May 3, 2016 at the Governor’s Conference Room at Adelup, Guam, and on May 9, 2016, at the Governor’s Conference Room at Capitol Hill, Saipan.
Guam Chamber of Commerce (Chamber) Member Jeff Jones, Chamber President Catherine Castro, Trainer Michael G. Santos, Lt. Gov. of Guam Raymond Tenorio, U.S. Attorney Alicia Limtiaco, Chamber Member Monty McDowell, at the Chamber Luncheon Meeting
Trainer Michael G. Santos with Professional Staff at training held at the U.S. Attorney’s Office in Guam
Community stakeholders with Trainer Michael G. Santos and U.S. Attorney Alicia Limtiaco held at the U.S. Attorney’s Office in Guam
Participants at the “Employment and Reentry – Connecting Employers and Their Employees with Government Opportunities” Conference in Guam
Trainer Michael G. Santos, U.S. Attorney Alicia Limtiaco, AUSA/Prevention and Reentry Coordinator Stephen Leon Guerrero, National Security Specialist/DOSM Joe Quitano, and NMI DOC Commissioner Georgia Cabrera, at training held at the NMI Department of Corrections for DOC officers in Saipan Trainer Michael G. Santos and U.S. Attorney Alicia Limtiaco at Professional Staff training held at the Multi-Purpose Center in Saipan, NMI Trainer Michael G. Santos at the “Earning Freedom and Reentry” session at the “Employment and Reentry – Connecting Employers and Their Employees with Government Opportunities” Conference in Saipan, NMI U.S. Attorney Alicia Limtiaco and Lt. Governor Raymond Tenorio with community stakeholders at the Proclamation Signing at the Governor’s Office in Guam
U.S. Attorney Alicia Limtiaco and Governor of the CNMI Ralph Torres with community stakeholders at the Proclamation Signing at the Governor’s Office in Saipan, NMI
Guam Department of Labor Robert Dames, AUSA/Prevention and Reentry Coordinator Stephen Leon Guerrero, Guam Department of Corrections (DOC) Director Alberto Lamorena, Trainer Michael G. Santos, U.S. Attorney Alicia Limtiaco, DOC Corrections Social Work Administrator Therese Tayama, and DOC Clinical Psychologist Dr. Patricia Taimanglo at presentations conducted by Michael G. Santos with inmates at the DOC
29 July 2016
United States and State of Oklahoma Obtain $4.7 Million Judgment Against Behavioral Health Counseling Company and Its Owner for Submitting False ClaimsRead the Press Release
Oklahoma City, Oklahoma – Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma, and E. Scott Pruitt, Attorney General for the State of Oklahoma, jointly announce that a judgment for $4,752,101.50 has been entered against LXE Counseling, LLC ("LXE") and Lexie Darlene George a/k/a Lexie Darlene Batchelor ("Batchelor") in a civil qui tam "whistleblower" lawsuit for submitting false claims related to behavioral health counseling to Medicaid patients in Oklahoma.
LXE is an Oklahoma limited liability corporation headquartered in Atoka, Oklahoma, that provides behavioral and mental health counseling in various offices throughout the state. Batchelor is the owner and CEO of LXE. LXE and Batchelor provided behavioral health psychotherapy and rehabilitation services to those who could not afford medical services under Oklahoma Medicaid ("SoonerCare"), which is a jointly funded program by the federal and state government administered by the Oklahoma Health Care Authority ("OHCA").
On November 5, 2015, the United States and State of Oklahoma intervened in the lawsuit styled United States and State of Oklahoma ex. rel. Pittman, et al., v. LXE Counseling, LLC, et al. (Case No. CIV-13-1129-R) and asserted claims for violations of the federal False Claims Act, the Oklahoma Medicaid False Claims Act, the Oklahoma Medicaid Program Integrity Act, and common law claims. The judgment entered today was on the government’s specific claims that LXE and Batchelor submitted or cause to be submitted the following false Medicaid claims to OHCA:
a. claims for services provided by persons not qualified to provide those services;
b. claims for services where the defendants altered dates or times of services or altered service codes to make otherwise ineligible claims eligible for reimbursement;
c. claims for face-to-face services that were double-billed for the same dates and times by the same person (i.e. using variations of Defendant Bachelor’s name);
d. claims for face-to-face services performed by Batchelor while she was instead attending a funeral, a wedding, or on trips;
e. claims for telemedicine services when LXE and its providers were not authorized or approved by OHCA to provide telemedicine services; and
f. claims for rehabilitation services provided to patients who never received any psychotherapy services, despite representations on LXE’s treatment plans that these services were necessary and OHCA regulations that only allows rehabilitation services to be provided as adjunct services to compliment psychotherapy.
United States District Judge David Russell entered a judgment today against LXE and Batchelor for a total of $4,752,101.50. Of that amount, $4,631,101.50 is for triple the amount of false claims and $121,000 is for penalties, as provided under the False Claims Act and the Oklahoma Medicaid False Claims Act. In addition to the monetary judgment, LXE and Batchelor entered into an agreement with United States Department of Health and Human Services Office of Inspector General whereby each of them will be excluded nationally from participation in the Medicaid and Medicare programs for five years.
This case is the result of a joint investigation by the Oklahoma Medicaid Fraud Control Unit and the United States Department of Health and Human Services Office of Inspector General. The case is being prosecuted by Assistant United States Attorneys Bob Troester and Amanda Johnson together with Assistant Attorneys General Niki Batt and Christopher Robinson.
U.S. Attorney’s Office Will Not Pursue Criminal Civil Rights Charges in Death of Adams County RancherRead the Press Release
BOISE – The U.S. Attorney’s Office for the District of Idaho announced today that there is insufficient evidence to pursue federal criminal civil rights charges against Adams County deputy sheriffs Cody Roland and Brian Wood for the death of Jack Yantis on Nov. 1, 2015.
Earlier today, the U.S. Attorney’s Office notified Mr. Yantis’s family, through their attorney, of this decision.
Federal authorities conducted a comprehensive and independent investigation of the events surrounding the death of Mr. Yantis, who was shot on Highway 95 near Council, Idaho, as he attempted to assist the deputies with his injured bull. The bull had been struck by a car and the accident drew the deputies, medical personnel and Mr. Yantis to the scene. The independent investigation included a review of the materials and evidence gathered by the Idaho State Police, including reports of the thorough investigation of the shooting scene; forensic reports detailing the scientific examination of physical evidence, such as gunshot residue and ballistics evidence; the autopsy report of Mr. Yantis; the necropsy report of the bull; interviews of emergency responders and travelers present at the time of the shooting; interviews with two civilian eyewitnesses who witnessed the shooting; multiple interviews with Roland and Wood; the 911 calls and dispatch recordings for the incident; and the deputies’ histories as law enforcement officers.
No recorded audio or video evidence of the shooting exists. The investigation determined that Wood and Roland had body cameras issued by the Adams County Sheriff’s Office, but that neither body camera recorded the shooting. The investigation determined that Wood’s body camera’s memory was full and that Roland did not activate his body camera.
In order to proceed with a prosecution under the applicable federal criminal civil rights law, Title 18, U.S. Code, Section 242, federal prosecutors must establish beyond a reasonable doubt that a law enforcement officer acted willfully to deprive an individual of a constitutional right. In this investigation, the right involved was Mr. Yantis’s Fourth Amendment right to be free from an unreasonable seizure, which includes the right to be free from unreasonable physical force by law enforcement officers.
To prove that a shooting violated the Fourth Amendment, federal prosecutors must prove beyond a reasonable doubt that the use of force was objectively unreasonable based on all of the surrounding circumstances. The law requires that the reasonableness of an officer’s use of force be judged from the perspective of a reasonable officer on the scene, and not from the added perspective of hindsight. The law set forth by the U.S. Supreme Court requires consideration of the fact that law enforcement officers are often forced to make split-second judgments in circumstances that are tense, uncertain, and rapidly evolving.
In addition, to prove that a shooting violated section 242, federal prosecutors must prove beyond a reasonable doubt that the officers acted willfully. This high legal standard – one of the highest standards of intent imposed by law – requires proof that the officer acted with the specific intent to do something that the law forbids. It is not enough to show that the officer made a mistake, acted negligently, acted by accident, or even exercised bad judgment.
Mr. Yantis’s death is tragic, is a tremendous loss to his family and has had a substantial effect on the Adams County community. However, the evidence does not meet the substantial evidentiary requirements imposed by the criminal law. In light of this, and for the reasons explained below, this matter is not a prosecutable violation of the applicable federal civil rights statute.
Roland and Wood each provided multiple statements to state investigators and/or the FBI offering their versions of how and why this shooting occurred. Some statements were written and some were recorded by investigators. In addition, the deputies each separately participated in a walk-through demonstration with state investigators that was audio and video recorded. Neither the deputies’ statements nor their demonstrations of their actions in the walk-through proved that they acted willfully. Accordingly, federal prosecutors determined that in assessing whether the evidence was sufficient to prove that the deputies acted willfully, they would need to examine whether other evidence corroborated or disproved the deputies’ statements and demonstrations. They also determined that they would need to assess whether other evidence affirmatively proved that the deputies acted willfully.
Only four witnesses observed the shooting: Roland, Wood and two civilian eyewitnesses. All four eyewitnesses to the shooting were consistent on certain facts: that Mr. Yantis possessed a rifle with which he was preparing to shoot or euthanize his injured bull; that Roland and Wood also were nearby; that Mr. Yantis aimed his rifle at the bull’s head to shoot it; that there was some sort of exchange, whether verbal or physical, between one or more of the deputies and Mr. Yantis, during which Mr. Yantis moved or was moved away from the bull; that as Mr. Yantis moved away from the bull, the barrel of his rifle changed directions away from the bull; and that the deputies fired at Mr. Yantis at that point. Although the witnesses did not agree on whether Mr. Yantis’s rifle discharged, investigators determined through forensic evidence that it did. Federal prosecutors concluded that the forensic evidence and all other evidence was insufficient to resolve inconsistencies among the eyewitness statements on other topics, such as in which order the fired shots occurred and what precisely caused the movement of Mr. Yantis’s rifle away from the bull’s head. Based on all of this evidence, federal prosecutors determined that the evidence was insufficient to prove, beyond a reasonable doubt, that either Roland or Wood acted willfully with a bad purpose to violate the law. Accordingly, the Department of Justice’s review of this incident will be closed without prosecution. This decision is limited strictly to an application of the high legal standard required to prosecute the case under the federal criminal civil rights statute; it does not reflect an assessment of any other aspect of the incident that led to Mr. Yantis’s death.
In this case, the U.S. Attorney’s Office for the District of Idaho and the FBI each devoted significant time and resources to investigating the circumstances surrounding Mr. Yantis’s death and, working with the Justice Department’s Civil Rights Division, to complete a thorough analysis of the evidence gathered. The U.S. Attorney’s Office and the FBI received full cooperation from the Idaho State Police, the primary investigative agency on the incident. The U.S. Attorney’s Office, the FBI and the Civil Rights Division, together as the Department of Justice, remain committed to investigating allegations of excessive force by law enforcement officers and will continue to devote the resources required to ensure that all serious allegations of civil rights violations are thoroughly examined.
U.S. Attorney Rice Encourages Participation in National Night Out EventRead the Press Release
Concord, New Hampshire – U.S. Attorney Emily Gray Rice announces the 32nd Annual National Night Out, which will be celebrated throughout New Hampshire on Tuesday night, August 2, 2016. “We encourage citizens to join the men and women of the law enforcement agencies which protect our communities for the National Night Out in the cities and towns in our state. National Night Out is an opportunity to leave our homes, visit our neighbors and become acquainted with one another. Our communities are stronger and safer when we all work together as partners in the same effort.”
National Night Out is designed to: heighten crime and drug prevention awareness; generate support for and participation in local anticrime efforts; strengthen neighborhood spirit and police-community partnerships; and send a message to criminals letting them know neighborhoods are organized and fighting back. This year, National Night Out events will be held in several communities throughout New Hampshire. Registered events will take place in Bedford, Belmont, Concord, Dover, Farmington, Greenland, Groveton, Hartford, Laconia, Lincoln, Manchester/Rochester, Milford, Mont Vernon, Northfield, Pittsfield, Portsmouth, Salem, Somersworth.
U. S. Attorney Rice stated, “Our nation has recently experienced terrible tragedies, leaving us feeling sad and uncertain. Violence is never the answer. The solution lies in forging stronger connections. We must recommit ourselves to doing everything possible to bridge divides, heal rifts, and build trust, and to ensure that all of our neighbors, including our first responders, feel respected, supported, and safe.”
National Night Out organizers are expecting over 16,000 communities and 38 million people nationwide to take part in community events on Tuesday.
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U.S. Attorney Ortiz Announces Partnership with Lowell High-Risk Reentry InitiativeRead the Press Release
BOSTON – U.S. Attorney Carmen M. Ortiz announced today that her Office will partner with the Office of Middlesex County Sheriff Peter Koutoujian to create the Lowell High-Risk Reentry Initiative. Drawing on their experience with reentry programs throughout the Commonwealth, the U.S. Attorney’s Office and the Middlesex County Sheriff’s Office convened the initiative together with the Middlesex County District Attorney’s Office and Lowell Police Department, in an effort to assist individuals being released from prison and prevent them from re-engaging in criminal conduct.
“Our criminal justice system must be focused just as much on preventing crime as in punishing past criminal conduct,” said United States Attorney Carmen M. Ortiz. “It is essential for public agencies to assist individuals released from prison in finding a new way of life when they return to their communities. This means lawful employment, stable housing, critical healthcare, and the other essential elements of a productive life. We look forward to the interagency and community partnerships that will measurably contribute to a decrease in crime and improvement in the quality of life for Lowell residents.”
The Lowell High-Risk Reentry Initiative is part of a nationwide trend to reform the paradigm of punishing repeat criminals with more prison time. A 2010 Harvard University study of Massachusetts county jail high-risk reentry programs, funded by the District of Massachusetts’s Project Safe Neighborhoods grant, compared recidivism rates of county jails that offer pre-release programs for inmates with jails that do not offer the programs. The results of the study revealed a 23 percent reduction in violent recidivism rates for program participants versus those who did not take part in the initiatives.
Through the Lowell High-Risk Reentry Initiative, federal, state, and local law enforcement join forces with social service agencies, mental health and substance abuse providers and faith-based organizations to tackle the complexities associated with reentry into the community after incarceration. Team members with the Lowell High-Risk Reentry Initiative will work with an average of 80 to 90 high-risk inmates per year.
High-risk prisoners participating in the reentry program will be provided with information at bi-monthly meetings regarding pre- and post-incarceration services, as well as the consequences of reoffending. For many, reoffending could result in significant state or federal prison sentences.
Through the Lowell High-Risk Reentry Initiative, participants will be offered “wrap-around” services, receiving focused assistance from social service providers, probation officers and others to ensure accountability and continuity of care. They will be provided enhanced opportunities to participate in employment training, education programs, substance abuse and mental health treatment. Prior to release, participants will be encouraged to build relationships with individuals representing resources that are needed for success on the outside, including the probation officer who is a crucial component of the program. Participants will undergo intense supervision upon release from prison to ensure greater success and accountability.
The Lowell High-Risk Reentry Initiative’s social services and mental health partners include: Career Center of Lowell, Community Teamwork, Lowell House, South Bay Day Services (Lowell Mental Health), Greater Lowell Workforce Development Board, UTEC, South Bay Community Services, Middlesex Community College, and Place of Promise. Middlesex County Superior Court Probation, Lowell District Court Probation and the Massachusetts Department of Revenue are also partners in the initiative.
The Lowell High-Risk Reentry Initiative’s model is based on the award-winning Boston Reentry Initiative (BRI), which has achieved measurable success and national attention for its model of recidivism reduction. Both programs focus their resources on inmates who pose the greatest risks to reoffend.
Two Toledo men charged with a federal hate crime for beating African-American stranger they saw on the streetRead the Press Release
Charles Butler, 33, and Robert Paschalis, 25, both of Toledo, were charged with a federal hate crime today for beating an African-American stranger they saw on the street.
The charges were announced by Principal Deputy Assistant Attorney General for the Civil Rights Division Vanita Gupta, Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division, U.S. Attorney Carole S. Rendon of the Northern District of Ohio, Toledo Police Chief George Kral and Lucas County Prosecutor Julie Bates.
The men were charged by complaint with beating the victim, A.W., because he is black. According to the complaint, on May 18, 2016, Butler and Paschalis drove past A.W. on the street while A.W. was unloading items from his truck. The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs. Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times.
The beating stopped only when two off-duty Ohio state police officers happened on the scene and pulled Butler and Paschalis away. A.W. suffered an orbital fracture and damage to his right eye. Butler later posted to Facebook that the attack was “in the name of the White Race.”
“These individuals engaged in a violent assault against another person based on his race and now will be held accountable,” Anthony said. “The FBI will continue to work with our law enforcement partners to ensure hate crimes are thoroughly investigated and prosecuted to the greatest extent of the law.”
“These defendants launched an unprovoked attack on an African-American man based solely on his race,” Rendon said. “There is no place for racial violence in our society and these two men will be held accountable.”
Kral said: “The Toledo Police Department is committed to protecting all citizens from those who chose to pray on them. Whenever a crime is motivated simply because of the victim’s race it makes the crime all the worse. I commend the United States Attorney’s Office for the charging of this person as they see fit. I want to let the citizens of Toledo know that we will work tirelessly to protect their interest at the local, state and federal level.”
A complaint is merely an accusation and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with Toledo Police Department and Lucas County Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Two Orlando Men Plead Guilty to Robbing Publix SupermarketsRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that Cecil Dante Buckner (36) and Jarmen Lindell Sharp (34), both of Orlando, pleaded guilty to conspiracy to interfere with interstate commerce by robbery, and two substantive counts of interference with interstate commerce by robbery. Buckner also pleaded guilty to two counts of brandishing a firearm during and in relation to the robberies. Sharp faces a maximum penalty of 20 years’ imprisonment. Buckner faces a minimum penalty of 32 years, up to life, in federal prison. A sentencing date has not yet been set.
According to the plea agreement, beginning no later than February 28, 2014, and continuing through on or about April 23, 2014, Buckner, Sharp and another individual conspired to rob Publix supermarkets in Orange and Volusia Counties. Specifically, on February 28, 2014, the two and their co-conspirator robbed the Publix located at 2295 Aloma Avenue, in Winter Park; on March 16, 2014, robbed the Publix located at 7640 West Sand Lake Road, in Orlando; and on March 30, 2014, robbed the Publix located at 2410 South Woodland Boulevard, in DeLand. During each of the robberies, Buckner and a co-conspirator wore masks and gloves to conceal their identities. Buckner held store customers and employees at gunpoint at the front of the stores, while the co-conspirator forced store employees into the cashier room at gunpoint and stole cash. Sharp acted as the “lookout” during each of the robberies, waiting in the parking lot of the stores to alert Buckner and the co-conspirator in the event law enforcement arrived. In total, Buckner, Sharp, and their co-conspirator stole over $24,000 from Publix as a result of these robberies.
Additionally, on May 4, 2016, Buckner and another individual robbed the Publix supermarket located at 2515 Thonotosassa Road, in Plant City. During that robbery, Buckner held store customers and employees at gunpoint while the other individual forced a store employee into the cashier room, at gunpoint. As a result of this robbery, Buckner and the other individual stole over $18,000 from Publix.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, the Orange County Sheriff’s Office, the Winter Park Police Department, and the Deland Police Department. It is being prosecuted by Assistant United States Attorney Kara M. Wick.
Two Ohio Men Charged with Hate Crime for Beating African-American ManRead the Press Release
Charles Butler, 33, and Robert Paschalis, 25, both of Toledo, Ohio, were charged with a federal hate crime today for beating an African-American stranger they saw on the street.
The charges were announced by Principal Deputy Assistant Attorney General of the Civil Rights Division Vanita Gupta, U.S. Attorney Carole S. Rendon of the Northern District of Ohio and Special Agent in Charge Stephen D. Anthony of the FBI’s Cleveland Division.
The men were charged by complaint with beating the victim, A.W., because he is black. According to the complaint, on May 18, 2016, Butler and Paschalis drove past A.W. on the street while A.W. was unloading items from his truck. The two men circled back, got out of their own truck and began attacking A.W. while yelling racial slurs. Butler grabbed a broom from the back of A.W.’s truck and struck A.W. with it multiple times.
The beating stopped only when two off-duty Ohio State Police officers happened on the scene and pulled Butler and Paschalis away. A.W. suffered an orbital fracture and damage to his right eye. Butler later posted to Facebook that the attack was “in the name of the White Race.”
A complaint is merely an accusation and the defendants are presumed innocent unless proven guilty.
This case is being investigated by the FBI Cleveland Division’s Toledo Resident Agency, in cooperation with the Toledo Police Department and Lucas County, Ohio, Prosecutor’s Office. The case is being prosecuted by Assistant U.S. Attorney Michael Freeman of the Northern District of Ohio and Trial Attorney Dana Mulhauser of the Civil Rights Division’s Criminal Section.
Butler Complaint
Two Former Delaware Residents Charged in $270,000+ Tax Fraud SchemeRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that an Indictment has been handed down by the Grand Jury, charging Tanisha Gregory, age 34, and Nduka White, age 32, formerly of Newark, Delaware, with False Claims Conspiracy, Mail Fraud, and Social Security Fraud. Both defendants face up to 20 years in prison, 3 years of supervised release, in addition to possible fines and restitution.
The Indictment alleges that, from February 2012 through June 2015, Gregory and White conspired with one another to defraud the United States by filing false tax returns using other people’s identities. It is alleged that the defendants obtained unauthorized access to the names and social security numbers of at least 50 people, in Delaware and elsewhere. The defendants used this identification information to file false tax returns with the Internal Revenue Service (IRS), claiming more than $270,000 in refunds for the 2011 through 2014 tax years. According to the Indictment, the defendants attempted to conceal their receipt of the refunds, by transferring the proceeds through bank accounts and prepaid debit card accounts in other people’s names. The defendants are alleged to have received more than $130,000 from the IRS on account of the false returns.
This case is the result of an investigation conducted by the Internal Revenue Service Criminal Investigation, the United States Postal Inspection Service, and the Social Security Administration Office of the Inspector General. This case is being prosecuted by Assistant U.S. Attorney Lauren Paxton. The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Three Miami Residents Sentenced in Largest Medicare Fraud Scheme Loss in 2015Read the Press Release
Three Miami residents were sentenced for their role in the largest Medicare fraud scheme loss prosecuted in the Southern District of Florida in 2015.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Shimon R. Richmond, Special Agent in Charge, U.S. Department of Health and Human Services, Office of Inspector General (HHS-OIG), Miami Regional Office, made the announcement.
Jorge Lorenzo, 36, Yahima Pardo, 33 and Roberto De Jesus Alonso, 48, all of Miami, Florida were sentenced by U.S. District Judge William Dimitrouleas to 188 months, 41 months, and 37 months in prison, respectively. The defendants were also ordered to pay $40,388,943.00 in restitution to the Medicare program. In addition, forfeiture money judgments were entered against each defendant and the government has seized assets and cash in excess of $2 million. On May 10, 2016, Lorenzo and Pardo pled guilty to conspiracy to commit health care and wire fraud, and Alonso pled guilty to conspiracy to commit money laundering.
According to the court record Lorenzo, Pardo, and De Jesus Alonso participated in massive health care fraud, money laundering and kickback schemes, that over the course of approximately four years, resulted in more than $40 million in losses to the Medicare program. During the course of the criminal conduct, Lorenzo owned and/or controlled eight home health agencies across Miami-Dade County that collectively received more than $40 million in fraudulent claim payments from Medicare. Lorenzo installed shell owners at his home health agencies whose primary role was to authorize millions of dollars in Medicare claim payments through corporate checks made out to fictitious companies staffed by other co-conspirators. The co-conspirators then laundered the fraudulently obtained money to Lorenzo. More than $40 million in Medicare payments were made in response to fraudulent claims for services that were not medically necessary, never rendered and in some instances were linked to prescriptions that Lorenzo counterfeited. Collectively, these eight home health agencies were operational for an average of only 8 months before being closed at Lorenzo’s direction at the first hint of a Medicare fraud investigation. Conspirators Pardo and Alonso, were shell owners of two of the eight home health agencies and laundered millions of dollars in Medicare claim payments to Lorenzo.
Lorenzo also directed co-conspirators to incorporate more than fifteen fictitious shell companies. The shell companies were used to disguise the flow of more than $25 million in fraudulently-obtained Medicare proceeds for Lorenzo’s personal benefit, including the purchase of real estate, luxury vehicles, artwork and jewelry. Coconspirator Alonso incorporated at least two of the fictitious companies to launder proceeds which were intended to benefit elderly, blind and disabled patients.
An additional co-conspirator, Sonmy Rodriguez, 45, of Miami, Florida, was sentenced on July 27, 2016 to 22 months in prison.
Mr. Ferrer commended the investigative efforts of the FBI and HHS-OIG. This case was prosecuted by Assistant United States Attorneys Kevin J. Larsen and Evelyn B. Sheehan.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Three Men Collectively Sentenced to 180 Months for Stealing Multiple Rifles from Pawn ShopRead the Press Release
Memphis, TN – Three men responsible for stealing eight rifles from a West Tennessee pawn shop have been collectively sentenced to 180 months in federal prison. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the sentences today.
The three defendants include:
• Dameion Cain, 36, of Memphis, Tennessee
• George McGhee, 25, of Memphis, Tennessee
• Denzel Jones, 21, of Memphis, Tennessee
According to information presented in court, in July 2014, the three defendants rode from Memphis to Mr. Cash Pawn Shop in Oakland, Tennessee. Upon arrival, the defendants broke into the establishment and stole eight .22 caliber rifles.
In August 2014, law enforcement officials were able to identify the three defendants as the culprits responsible for burglarizing the establishment.
In addition to participating in the aforementioned burglary, officials were also able to identify Cain as the person who unlawfully took a 5.56 caliber rifle and .223 caliber rifle from Big Daddy’s Pawn on Hickory Hill Road in July 2014.
In February 2015, Cain pleaded guilty before U.S. District Judge John T. Fowlkes Jr. to one count of unlawfully taking a 5.56 caliber rifle and a .223 caliber rifle from a business; and one count of unlawfully possessing a 5.56 caliber rifle and a .223 caliber rifle.
In July 2015, Judge Fowlkes sentenced Cain to 120 months in federal prison.
In March 2015, Jones pleaded guilty to unlawfully taking eight .22 caliber rifles from a business.
In August 2015, Jones received time served and three years of supervised release.
In April 2016, McGhee pleaded guilty to unlawfully possessing multiple .22 caliber rifles.
On Friday, July 29, 2016, Judge Fowlkes sentenced McGhee to 60 months in federal prison.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF).
Assistant U.S. Attorney Bayonle Osundare prosecuted this case on the government’s behalf.
Tensed Man Pleads Guilty to False Statement in Passport Application and Aggravated Identity TheftRead the Press Release
COEUR D'ALENE – Kevin John Weinreis, 50, of Tensed, Idaho, pleaded guilty yesterday to false statement in a passport application, and aggravated identity theft, U.S. Attorney Wendy J. Olson announced. Weinreis was indicted by a federal grand jury in Coeur d’Alene on February 17, 2016.
According to the plea agreement, in August 2002, Weinreis obtained a United States passport using his real photo, but another individual’s name and identifying information. In November 2014, Weinreis renewed this passport, again using the identifying information of another.
In January 2016, a Deputy United States Marshal and a Benewah County Sheriff’s Deputy opened an investigation into the false passport. During an interview occurring on January 8, 2016, Weinreis gave false statements about his identity and was arrested. Officers located and seized a state identification card, social security card, and a U.S. passport, belonging to another individual, on Weinreis. Later, while incarcerated, Weinreis admitted his true identity.
The charge of false statement in a passport application is punishable by up to ten years in prison and a fine up to $250,000. The charge of aggravated identity theft carries a mandatory two-year consecutive sentence to the false statement in a passport application charge, and a fine up to $250,000. Weinreis also faces up to a three-year term of supervised release following his prison sentence.
Sentencing is set for October 11, 2016, at 2:30 p.m. in Coeur d’Alene, before Chief United States Judge B. Lynn Winmill.
The case was investigated by the U.S. Department of State – Diplomatic Security Service, the U.S. Marshals Service, and the Benewah County Sheriff’s Office.
Sulphur man pleads guilty to submitting false information to contractor regulated by nuclear commissionRead the Press Release
LAKE CHARLES, La. – U.S. Attorney Stephanie A. Finley announced that a Sulphur man pleaded guilty Thursday to submitting a false certification to perform inspections on a nuclear module being constructed at a Lake Charles construction yard.
Joseph B. Burnworth, 35, of Sulphur, La., pleaded guilty before U.S. District Judge Patricia Minladi to one count of submission of false information. According to the guilty plea, from April to August of 2013, Burnworth performed quality control visual inspections of welds on a nuclear module being constructed by a company in Lake Charles. The defendant did not possess the certification required to perform such work and instead used a false certificate to secure the job. He performed 150 such inspections, which had to be re-inspected by a properly certified inspector. Additionally, Burnworth assisted two other individuals with obtaining and presenting false certifications to gain similar employment.
Burnworth faces up to two years in prison, one year of supervised release and a $5,000 fine. A sentencing date of November 3, 2016 was set.
The U.S. Nuclear Regulatory Commission conducted the investigation. Assistant U.S. Attorneys Myers P. Namie and Dominic Rossetti are prosecuting the case.
Statement by U.S. Attorney General Loretta E. Lynch on the Departure of John Walsh from the U.S. Attorney's Office for the District of ColoradoRead the Press Release
WASHINGTON – Attorney General Loretta E. Lynch released the following statement on the planned departure of U.S. Attorney John Walsh of the District of Colorado, effective Aug. 10, 2016:
“U.S. Attorney John Walsh has served the people of the District of Colorado and the entire nation with extraordinary distinction,” said Attorney General Lynch. “For the past six years, John has protected our civil liberties, defended our national security and aggressively and successfully prosecuted organized crime, drug cartels and gang violence. He played a key leadership role on the team that won a landmark $7 billion settlement against Citibank, securing millions for defrauded consumers in the largest settlement in the history of the Colorado U.S. Attorney’s office and one of the largest settlements in the Justice Department’s history. He served as a co-chair of the department’s Residential Mortgage-Backed Securities Working Group, where he led efforts to root out fraud and abuse and hold institutions accountable for the kinds of misleading lending practices that helped cause the 2008 financial crisis. And he has been an outstanding leader of the Attorney General’s Advisory Committee – lending valuable insight and advice to the Justice Department as a whole. The people of Colorado, and the country, are safer thanks to John’s keen judgment, deep empathy and unwavering fidelity to justice. I want to thank John for his exemplary service and I look forward to all that he will accomplish in the years to come.”
Statement by Attorney General Loretta E. Lynch on the Departure of John Walsh from the U.S. Attorney’s Office for the District of ColoradoRead the Press Release
Attorney General Loretta E. Lynch released the following statement on the planned departure of U.S. Attorney John Walsh of the District of Colorado, effective Aug. 10, 2016:
“U.S. Attorney John Walsh has served the people of the District of Colorado and the entire nation with extraordinary distinction,” said Attorney General Lynch. “For the past six years, John has protected our civil liberties, defended our national security and aggressively and successfully prosecuted organized crime, drug cartels and gang violence. He played a key leadership role on the team that won a landmark $7 billion settlement against Citibank, securing millions for defrauded consumers in the largest settlement in the history of the Colorado U.S. Attorney’s office and one of the largest settlements in the Justice Department’s history. He served as a co-chair of the department’s Residential Mortgage-Backed Securities Working Group, where he led efforts to root out fraud and abuse and hold institutions accountable for the kinds of misleading lending practices that helped cause the 2008 financial crisis. And he has been an outstanding leader of the Attorney General’s Advisory Committee – lending valuable insight and advice to the Justice Department as a whole. The people of Colorado, and the country, are safer thanks to John’s keen judgment, deep empathy and unwavering fidelity to justice. I want to thank John for his exemplary service and I look forward to all that he will accomplish in the years to come.”
Skagway Man Sentenced to 12 Months and One Day in Prison for Failure to Pay TaxesRead the Press Release
Juneau, Alaska – U.S. Attorney Karen L. Loeffler announced today that DANIEL HENRY, 61, of Skagway, was sentenced by Chief U.S. District Judge Timothy M. Burgess on Monday, August 1, 2016, to serve 12 months and one day in prison for his convictions on four counts of willful failure to file income tax returns, Judge Burgess also ordered HENRY to pay $600,064 in restitution.
HENRY is the owner and operator of the Skagway Fish Company, a restaurant in Skagway, Alaska, HENRY is also an elected member of the Municipal Assembly in Skagway. For the years 2004-2012, HENRY did not file a federal income tax return. The amount of accumulated taxes Henry would have had to pay during that time period was $600,064.
In his comments prior to imposing the sentence, Judge Burgess described this as a serious offense given the amount of money involved and the time period that HENRY did not file income tax returns.
This matter was prosecuted by Assistant United States Attorney Jack Schmidt out of the U.S. Attorney's Office in Juneau, Alaska.
“The vast majority of citizens of our great country file a timely and accurate tax return. When someone does not, they not only cheat themselves and their government, but all honest taxpayers. Failing to file and pay a just tax shifts the burden to the rest of us by robbing us all of the funds needed for essential services, infrastructure, and the defense of our homeland. IRS CI and the Department of Justice are committed to fighting for the honest taxpayers by prosecuting tax cheats, thus maintaining a level playing field,” stated Special Agent in Charge Darrell Waldon of IRS Criminal Investigation.
U.S. Attorney Loeffler commends the Internal Revenue Service Criminal Investigations, for the successful investigation and prosecution of this case.
Rosebud Woman Charged with Assaulting a Federal OfficerRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rosebud, South Dakota, woman has been indicted by a federal grand jury for Assaulting, Resisting, Opposing, and Impeding a Federal Officer.
Abigail Marie Garneaux, a/k/a Abigail Marie Garcia, age 27, was indicted on July 19, 2016. She appeared before U.S. Magistrate Judge Mark A. Moreno on July 28, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 20 years in custody and/or a $250,000 fine, 3 years of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that on May 28, 2016, Garneaux forcibly assaulted, resisted, opposed, impeded, intimidated, or interfered with an officer from the Rosebud Sioux Tribe, while said officer was engaged in his official duties. The offense included bodily injury and use of a pepper spray on the officer.
The charge is merely an accusation and Garneaux is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Rosebud Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Carrie G. Sanderson is prosecuting the case.
Garneaux was released on bond pending trial. A trial date has not been set.
Rome Man Indicted for Unlawful Possession of a FirearmRead the Press Release
SYRACUSE, NEW YORK – Michael Dyer, age 32, of Rome, New York, was arraigned today on a charge of being a felon in possession of a firearm.
The announcement was made by United States Attorney Richard S. Hartunian and Delano A. Reid, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New York Field Division.
Dyer is charged with being a felon in possession of a 12 gauge shotgun. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
If convicted, Dyer faces up to 10 years in prison, a fine of up to $250,000, and a term of post-imprisonment supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Dyer was arraigned today in Syracuse, before United States Magistrate Judge Andrew T. Baxter, and detained pending a trial scheduled for September 26, 2016 before Chief United States District Court Judge Glenn T. Suddaby.
This case is being investigated by the Oneida County Drug Enforcement Task Force and the ATF, and is being prosecuted by Assistant U.S. Attorney Robert S. Levine.
Rapid City Man Sentenced for EscapeRead the Press Release
United States Attorney Randolph J. Seiler announced that a Rapid City, South Dakota, man convicted of Escape from Custody was sentenced on July 25, 2016, by Chief Judge Jeffrey L. Viken, U.S. District Court.
Laun McCloskey, age 22, was sentenced to 24 months of imprisonment, and ordered to pay a $100 special assessment to the Federal Crime Victims Fund.
McCloskey was charged on August 18, 2015, and pleaded guilty on April 22, 2016. The charge relates to McCloskey leaving Community Alternatives of the Black Hills, where he was serving part of a federal sentence, without permission and not returning.
The investigation was conducted by the U.S. Marshals Service. Assistant U.S. Attorney Ben Patterson prosecuted the case.
Rancho Cordova Man Sentenced for Passport FraudRead the Press Release
SACRAMENTO, Calif. — Satnam Singh, 56, of Rancho Cordova, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to six months in prison, to be followed by three years of supervised release, and a $2,000 fine for making a false statement in an application for a United States passport, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, Singh immigrated to the United States from India in the 1980s and ultimately naturalized as a United States citizen in that identity in 1996. Meanwhile, in 1993, Singh filed a fraudulent application for asylum in the entirely fake identity of “Rupinder Singh,” and in 2012, he naturalized in that second, fake identity. He successfully applied for a U.S. passport for the false identity and traveled internationally using the Rupinder Singh passport at least twice in 2013. In his plea agreement, Singh admitted that he created the Rupinder Singh identity in order to avoid child support obligations.
This case was the product of an investigation by the U.S. State Department’s Diplomatic Security Service (DSS). Assistant U.S. Attorney Nirav Desai prosecuted the case.
“DSS will continue to aggressively protect our borders by safeguarding the integrity of our travel documents,” said David Zebley, Special Agent In-Charge of U.S. State Department’s Diplomatic Security Service, San Francisco Field Office. Diplomatic Security is firmly committed to working with the U.S. Attorney’s Office and other law enforcement agencies around the world to investigative allegations of passport and visa fraud and bring those who committed these crimes to justice.”
At today’s sentencing hearing, Judge Burrell said that this was a serious crime and the sentence was needed to promote respect for the law and provide a deterrent. Judge Burrell ordered Singh to surrender to serve his sentence on October 14, 2016.
Quincy Man Pleads Guilty to Defrauding Charities and Law FirmsRead the Press Release
BOSTON – A Quincy man pleaded guilty today in U.S. District Court in Boston to using counterfeit cashier’s checks to defraud victims, including charities and law firms, of at least $1 million.
Manuel Ponce Vazquez, 59, pleaded guilty to an Information charging him with one count of mail fraud. Ponce Vazquez was charged and arrested in April 2016. U.S. District Court Judge Indira Talwani scheduled sentencing for Nov. 4, 2016.
Beginning around August 2013, Ponce Vazquez and his co-conspirators defrauded law firms and other victims by sending them counterfeit cashier’s checks, then convincing them to forward a portion of the checks’ supposed value to bank accounts Ponce Vazquez opened, generally using an alias. Once the checks were discovered to be fraudulent, the victims’ bank accounts were debited, and the victims were left with thousands of dollars in losses, having unwittingly forwarded their own money to Ponce Vazquez.
On several occasions, Ponce Vazquez and his co-conspirators targeted charities and other non-profits. Posing as a philanthropist, a conspirator would tell a charity that he wished to make a large donation of a specified amount. Soon after, the charity would receive a cashier’s check, ostensibly from the supposed donor, but in excess of the expected amount. The conspirator would explain that the excess money had been sent by mistake and ask for it to be returned, claiming in several instances that it was needed urgently to help a child suffering from an acute illness who required surgery within the week. Only after the charity had sent Ponce Vazquez thousands of dollars would it learn that the cashier’s check was a fake.
More frequently, the targets of Ponce Vazquez’s scam were law firms who believed they were being hired to help collect a debt. Before the firms took any action to collect the supposed debt, they received counterfeit cashier’s checks, ostensibly from the debtors, fully repaying the debt. At the direction of one of Ponce Vazquez’s co-conspirators, the firms forwarded the majority of the checks’ purported value to a bank account that Ponce Vazquez controlled, unwittingly paying Ponce Vazquez using the firms’ own money.
The charging statute provides a sentence of no greater than 20 years in prison, three years of supervised release, a fine of $250,000 or twice the gross gain or loss, whichever is greater, and restitution. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz and Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division, made the announcement today. Assistance was also provided by Braintree Police Department and the Norfolk District Attorney’s Office. This case is being prosecuted by Assistant U.S. Attorney Brian A. Pérez-Daple of Ortiz’s Economic Crimes Unit.
Portland Man Found Guilty of Committing Two Armed Bank RobberiesRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Neil West, Sr., 65, was found guilty yesterday in U.S. District Court of armed bank robbery and conspiracy to commit bank robbery, following a jury trial. The charges arose from the September 4, 2015 robbery of the University Credit Union in Portland and the September 12, 2015 robbery of TD Bank in Lewiston. West was found not guilty of robbing or conspiring to rob Norway Savings Bank on August 23, 2015.
According to evidence at trial and court records, co-conspirators Joseph Richards and Crystal Default robbed the two financial institutions and West was their getaway driver. The TD Bank robbery resulted in a high-speed chase which terminated in Saco and resulted in the arrests of West and Richards.
At the time of both robberies, West was on federal supervised release stemming from a June 2013 conviction for Accessory After the Fact (Bank Robbery) for which he received a 41-month prison sentence.
West faces up to 25 years in prison and a $250,000 fine on the robbery charges and up to five years in prison and a $250,000 fine on the conspiracy charges. He will be sentenced after completion of a presentence investigation report by the U.S. Probation Office.
On January 20, 2016, Richards and Default pleaded guilty to armed bank robbery and conspiracy to commit bank robbery and await sentencing.
The joint investigation was conducted by the Franklin (New Hampshire), Manchester (New Hampshire), Freeport, Portland, Lewiston, Old Orchard Beach and Saco (Maine) Police Departments; the Maine State Police; and the Southern Maine Gang Task Force comprised of agents and officers from the Federal Bureau of Investigation; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, Lewiston and Biddeford Police Departments.
Plattsmouth Man Sentenced for Conspiracy to Distribute CocaineRead the Press Release
United States Attorney Deborah R. Gilg announced that on July 26, 2016, Jose Jaime Hernandez Badillo, 27, of Plattsmouth, was sentenced to six and one-half years (78 months) in prison for conspiracy to distribute 500 grams or more of a mixture or substance containing cocaine between November of 2013 and September 4, 2014. Following the prison term, Lewis will serve five years on supervised release.
Information provided to law enforcement indicated that Hernandez Badillo was responsible for the distribution of at least 5 kilograms (11 pounds) of cocaine. On September 3, 2014 Lincoln/Lancaster County Drug Task Force officers were told by an informant that a Lincoln man would be returning from a trip to Omaha to obtain cocaine. The man was stopped when he returned to Lincoln, and during a search of his vehicle, officers found 478 grams (approximately 17 ounces) of cocaine. An additional 1 ½ ounces were found during a search of his Lincoln residence. A second Lincoln man was contacted by officers at his apartment on September 5, 2014 which resulted in the finding of an additional 2/3 ounce of cocaine. All of this cocaine was believed to have been obtained from Hernandez Badillo.
This case was investigated by the Lincoln/Lancaster County Drug Task Force.
Pharmacist Pleads Guilty to Distributing and Possessing OxycodoneRead the Press Release
PITTSBURGH – An Allegheny County resident pleaded guilty in federal court to a charge of distribution of, and possession with intent to distribute, oxycodone, United States Attorney David J. Hickton announced today.
George Norkus, 68, of Pittsburgh, Pa., pleaded guilty to one count before United States District Judge Arthur J. Schwab.
In connection with the guilty plea, the court was advised that Norkus was a pharmacist at all times relevant to the charged offense. From on or about Oct. 1, 2015, to on or about Feb. 16, 2016, Norkus knowingly, intentionally, and unlawfully distributed, and possessed with intent to distribute, a quantity of oxycodone, a Schedule II controlled substance. In addition, Norkus, unlawfully, knowingly, and intentionally omitted material information from reports, records, and other documents required to be made, kept, or filed under Title 21 of the United States Code.
Judge Schwab scheduled sentencing for Dec. 1, 2016 at 11 a.m. The law provides for a total sentence of not more than 24 years in prison, a fine of $1,250,000, a term of supervised release of at least three years, or any or all of the above. Under the Federal Sentencing Guidelines, the actual sentence imposed is based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Cindy K. Chung is prosecuting this case on behalf of the government.
The Drug Enforcement Administration conducted the investigation that led to the prosecution of George Norkus.
Peekskill Man Sentenced to 15½ Years in Prison for Heroin Trafficking and Distributing Heroin and Fentanyl That Resulted in DeathRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced that LAKUAN RHYNE was sentenced yesterday to 186 months in prison for conspiring to distribute more than a kilogram of heroin in and around Westchester County during 2014, and distributing the heroin and fentanyl that resulted in the overdose death of an individual. RHYNE pled guilty to a felony Information in White Plains federal court on April 21, 2016, before U.S. District Judge Nelson S. Román, who imposed sentence.
U.S. Attorney Bharara stated: “Overdose deaths from opioid use have taken their toll in cities, small towns, and rural America. The fentanyl-laced heroin sold by Lakuan Rhyne resulted in one of those tragic deaths, but Rhyne continued peddling this poison even after that. For his callous crime, he has received an appropriately heavy sentence.”
According to the Information, statements made in open court, and other documents in the public record:
LAKUAN RHYNE, a/k/a “Rico,” was the central participant in a drug trafficking ring based in Westchester County, New York. From early 2014 through the fall of 2014, RHYNE and his associates conspired to distribute significant quantities of heroin, as well as crack and powder cocaine, throughout Westchester County. RHYNE and his associates sold their drugs out of cars, residences, and on the streets. Some of the heroin distributed by RHYNE was laced with fentanyl, a synthetic opioid that is significantly stronger than both ordinary heroin and morphine. Between February and July 2014, confidential informants acting at the direction of the FBI purchased over 100 grams of heroin from RHYNE during the course of approximately 20 controlled transactions. In total, during the course of the conspiracy, RHYNE was responsible for distributing over a kilogram of heroin.
On the evening of January 26, 2014, in the parking lot of a restaurant in Peekskill, New York, RHYNE supplied a mixture containing heroin and fentanyl to an associate for the purpose of selling that mixture to a customer. That customer was Thomas Coogan, a 23-year-old from Buchanan, New York. Later that night, Coogan used the fentanyl-laced heroin supplied by RHYNE, and died as a result. Following Coogan’s death, of which RHYNE was aware, RHYNE continued to sell heroin.
* * *
In addition to the prison sentence, Judge Román ordered RHYNE to forfeit $15,000, to pay $17,676.88 in restitution to the family of Thomas Coogan, and to pay a $100 special assessment fee. RHYNE also was sentenced to five years of supervised release.
Mr. Bharara praised the outstanding work of the FBI, the Westchester County Northern Narcotics Initiative, which includes the Westchester County Department of Public Safety and the police departments of Peekskill, Croton-on-Hudson, Buchanan, Bedford, Yorktown, Mount Kisco, and Ossining, as well as the FBI Violent Crimes Task Force.
The prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorneys George Turner and Michael Gerber are in charge of the prosecution.
Participant in Prison Tax Fraud Ring Sentenced to 21 Months in PrisonRead the Press Release
SACRAMENTO, Calif. — Judy Ruth Mullin, 27, of Nevada City, was sentenced today by U.S. District Judge Garland E. Burrell Jr. to 21 months in prison and ordered to pay $219,984 in restitution for her role in a conspiracy to defraud the United States with false claims for federal tax refunds, Acting U.S. Attorney Phillip A. Talbert announced.
According to court documents, beginning in 2011, Mullin and six co-defendants operated a tax fraud scheme out of the California Correctional Center in Susanville. Four co‑defendants incarcerated at the correctional center obtained personal identification information of other inmates. This information was then provided to Mullin and other co‑defendants located outside the prison, who prepared and filed false income tax returns with the Internal Revenue Service, claiming refunds that they knew to be false and to which the inmates were not entitled. Mullin opened a bank account in which to deposit the fraudulently obtained refunds and transferred the wrongfully obtained refunds to the prison accounts of the incarcerated co-defendants. Mullin also personally received money in return for her participation in the scheme.
In all, the conspiracy resulted in at least 247 false claims for income tax returns in tax years 2008 through 2011. Although the IRS stopped some of these refunds, approximately 138 fraudulent refunds totaling approximately $219,984 were issued.
“Ms. Mullin and her co-defendants attempted to steal hundreds of thousands of dollars from the government by filing income tax returns claiming refunds to which the inmates were not entitled,” said Special Agent in Charge Michael T. Batdorf, IRS Criminal Investigation. “Ms. Mullin then transferred the false refunds to the prison accounts of the incarcerated co-defendants. The object of these schemes is to defraud the government and the American taxpaying public. IRS-CI will continue to identify and investigate those involved in these types of schemes.”
This case is the product of an investigation by the Internal Revenue Service, Criminal Investigation, the Federal Bureau of Investigation, and the Investigative Services Unit at the California Correctional Center. Assistant United States Attorney Amy Schuller Hitchcock is prosecuting the case.
On July 8, 2015, Edwin Ludwig the IV was sentenced to seven years in prison for his role in the scheme. Two other co-defendants have pleaded guilty and are set for sentencing in August 2016. The charges against the remaining three co-defendants are pending. The charges against them are only allegations; they are presumed innocent until and unless proven guilty beyond a reasonable doubt.
New York man pleads guilty to unlawful possession of a firearmRead the Press Release
CLARKSBURG, WEST VIRGINIA – Tyler M. Purvis-Mitchell, 22, of Albany, New York, pled guilty to unlawfully possessing a firearm in federal court today, United States Attorney William J. Ihlenfeld, II, announced.
Purvis-Mitchell pled guilty to one count of “Conspiracy to Provide a False Statement During the Purchase of a Firearm.” He admitted to selecting a firearm from Cashland II Pawn Shop and coordinating to have another individual purchase the firearm for him. That individual falsely represented that she was the actual buyer of the firearm and used money from Purvis-Mitchell to buy the firearm.
He faces up to ten years in prison and a fine of up to $250,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Shawn M. Adkins prosecuted the case on behalf of the government. The Bureau of Alcohol, Tobacco, Firearms, and Explosives investigated.
U.S. Magistrate Judge Michael John Aloi presided.
New York Doctor Convicted of Multimillion-Dollar Health Care FraudRead the Press Release
A New York surgeon who practiced at hospitals in Brooklyn and Long Island, New York, was convicted last night for submitting millions of dollars in false and fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Robert L. Capers of the Eastern District of New York, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Division and Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) New York Regional Office made the announcement.
Syed Imran Ahmed, 51, of Long Island, New York, was convicted of one count of health care fraud, three counts of making false statements related to health care matters and two counts of money laundering.
According to evidence presented at trial, Ahmed submitted millions of dollars in false claims to the Medicare program for incision-and-drainage and wound debridement surgeries that he did not perform. Trial evidence showed that many of the claims also falsely stated that the surgeries were performed in an operating room, even though Ahmed never performed the surgeries. The evidence introduced at trial showed Ahmed submitted over $25 million in false claims to the Medicare program for surgeries he never performed and he received over $3 million from Medicare as payment for the false claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of New York. Fraud Section Trial Attorneys Turner Buford and Debra Jaroslawicz and Senior Litigation Counsel Patricia Notopoulos of the Eastern District of New York are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
New York Doctor Convicted of Multi-Million Health Care FraudRead the Press Release
BROOKLYN, NY – Late yesterday, a New York surgeon who practiced at hospitals in Brooklyn and Long Island was convicted for submitting millions of dollars in false and fraudulent claims to Medicare after a three-week jury trial.
The conviction was announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, Assistant Director in Charge Diego G. Rodriguez of the FBI’s New York Division and Special Agent in Charge Scott Lampert of the U.S. Department of Health and Human Services - Office of Inspector General (“HHS-OIG”), New York Regional Office, made the announcement.
Syed Imran Ahmed, 51, of Long Island, was convicted after trial of one count of health care fraud, three counts of making false statements related to Medicare claims and two counts of money laundering.
According to evidence presented at trial, Dr. Ahmed, a surgeon, submitted millions of dollars in false claims to the Medicare program for incision-and-drainage and wound debridement surgeries that he did not perform. Many of the claims also falsely stated that the surgeries were performed in an operating room, even though Dr. Ahmed never performed the surgeries in an operating room or anywhere else. The evidence introduced at trial showed Dr. Ahmed submitted over $25 million in false claims to the Medicare program for surgeries he never performed. Dr. Ahmed received over $3 million from Medicare as payment for the false claims.
The FBI and HHS-OIG investigated the case, which was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office of the Eastern District of New York. Fraud Section Trial Attorneys Turner Buford and Debra Jaroslawicz and Senior Litigation Counsel Patricia Notopoulos of the U.S. Attorney’s Office of the Eastern District of New York are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged nearly 2,900 defendants who have collectively billed the Medicare program for more than $10 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Mexican Nationals Indicted for Cultivating Marijuana in the Sierra National Forest and the Sequoia National ParkRead the Press Release
FRESNO, Calif. — On Thursday, a federal grand jury in Fresno returned two indictments, charging five Mexican nationals with separate conspiracies to grow marijuana in national forest land, Acting United States Attorney Phillip A. Talbert announced.
In the first indictment, a federal grand jury charged Merced County residents David Villa Corrales, 34; Teodoro Anaya Garcia, 30; and Gerardo Anaya Garcia, 34, with conspiring to cultivate, distribute and possess with intent to distribute marijuana, cultivating marijuana, and damaging public lands and natural resources. According to court documents, the defendants were linked to the cultivation sites after a six-month investigation into a large‑scale cultivation operation in the Carter Creek and Chowchilla Mountain areas of the Sierra National Forest in Madera and Mariposa Counties. The defendants were supplying material, equipment, and personnel to the grow sites, which consisted of approximately 10,000 plants. The marijuana cultivation operation caused extensive damage to the land and natural resources.
This case is the product of an investigation by the United States Forest Service, the Bureau of Land Management, the California Highway Patrol, the California Department of Fish and Wildlife, the California Department of Justice’s CAMP, the California Air National Guard, the Mariposa County Sheriff’s Department, the Madera County Sheriff’s Department, the Merced County Sheriff’s Department, and the Merced County Narcotics Task Force.
In the second indictment, a federal grand jury charged Cutler residents Domingo Aquino Altamirano, 27, and Isis Ali Maldonado-Salinas, 23, with conspiring to cultivate, distribute and possess with intent to distribute marijuana, cultivating marijuana, and damaging public lands and natural resources. According to court documents, the defendants participate in growing over 1,700 marijuana plants within Sequoia National Park on the eastern slopes of Shepherd Peak. They were arrested on Sunday July 17, 2016. This case is the product of an investigation by the Sequoia National Park.
Assistant United States Attorneys Kevin P. Rooney and Daniel J. Griffin are prosecuting the cases.
If convicted of the most serious drug offenses, David Corrales and Teodoro Anaya Garcia face a mandatory minimum statutory penalty of five years, a maximum of 40 years in prison and a $5 million fine, and Gerardo Anaya Garcia faces a maximum statutory penalty of 20 years in prison and a $1 million fine. If convicted of the drug offenses, Altamirano and Maldonado-Salinas face a maximum statutory penalty of 20 years in prison and a $1 million fine. The environmental crime carries a maximum statutory penalty of 10 years in prison and a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Meth Cook Sentenced in Federal CourtRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announced that Ronald Shane Chestang, 31, of Axis, Alabama, was sentenced in federal court this morning for his participation in two conspiracies—to manufacture methamphetamine, and to purchase pseudoephedrine, a List I chemical, to be used in methamphetamine manufacturing. Chestang pled guilty to the two charges in 2013.
United States District Court Judge Kristi K. Dubose imposed a sentence of time served, which amounted to approximately 64 months that Chestang has been in custody. Chestang was also credited with time served in related state charges from Texas. The judge ordered that Chestang will commence a six-year term of supervised release immediately, which will include 90 days inpatient drug treatment. As conditions of his supervision, Chestang will be subject to testing and treatment for drug abuse. Judge Dubose also ordered that Chestang pay $200 in special mandatory assessments.
The case was investigated by the Drug Enforcement Administration and the Mobile County Sheriff’s Office. It was prosecuted in the United States Attorney’s Office by Assistant United States Attorney Gloria Bedwell.
Massachusetts Resident Admits to Enticement of a Minor for Illicit Sexual ActivityRead the Press Release
PROVIDENCE, R.I. – Christopher Chassey, 49, of Plymouth, Mass., pleaded guilty in federal court in Providence, R.I., today to one count of enticement to travel in interstate to engage in illicit sexual activity. Appearing before U.S. District Court Chief Judge William E. Smith, Chassey admitted to the court that he sent hundreds of emails and mailed cash to a person he believed to be a 14 year-old male in Rhode Island in an effort to entice him to travel to Massachusetts to engage in illicit sexual activity.
Chassey’s guilty plea is announced by United States Attorney Peter F. Neronha, Colonel Steven G. O’Donnell, Superintendent of the Rhode Island State Police, and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, Boston Division.
According to court documents, in April 2015, a member of the Rhode Island Internet Crimes Against Children (ICAC) Task Force observed an online advertisement from a person seeking a young male to engage with in illicit sexual activity in exchange for a cash payment. An ICAC law enforcement agent posing as a 14 year-old male from Rhode Island answered the ad, and, over the next eight months, engaged in an exchange of hundreds of emails, many of which were sexually explicit.
According to court documents, on at least three occasions Chassey mailed cash to the supposed 14 year-old. The third mailing, $100 in cash which arrived on December 4, 2015, was to be used to purchase a bus ticket to Plymouth, Mass., so the two could meet. Chassey was arrested on December 17, 2015, charged in a federal criminal complaint with enticement to travel in interstate to engage in illicit sexual activity.
Chassey is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on October 14, 2016.
The case is being prosecuted by Assistant U.S. Attorney Gerard B. Sullivan.
The Rhode Island ICAC Task Force is comprised of members of the Rhode Island State Police Computer Crimes Unit, along with detectives from the Coventry, Warwick, North Smithfield, Cranston, East Providence, North Kingstown, Portsmouth and Woonsocket Police Departments, and agents from the Federal Bureau of Investigation, Homeland Security Investigations and United States Postal Inspection Services.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Majority Owner of NECC and Husband Plead Guilty to Illegal Cash Withdrawals Following OutbreakRead the Press Release
BOSTON – The majority owner of New England Compounding Center (NECC) and her husband pleaded guilty today in connection with illegally withdrawing cash following the fungal meningitis outbreak.
Carla Conigliaro, 53, the majority owner of NECC and her husband, Douglas Conigliaro, 55, both of Dedham, Mass., each pleaded guilty to withdrawing cash from their bank accounts in a manner intended to defeat financial reporting requirements. U.S. District Court Judge Richard G. Stearns scheduled sentencing for Nov. 1, 2016.
In September 2012, a nationwide outbreak of fungal meningitis was traced back to contaminated vials of preservative-free methylprednisolone acetate (MPA) manufactured by NECC, a compounding pharmacy located in Framingham, Mass. Beginning on Oct. 31, 2012, the day a search warrant was executed at NECC, Carla and Douglas Conigliaro began withdrawing unusual sums of cash from their personal bank accounts. The cash transactions were structured by the Conigliaros in a manner so as to evade the $10,000 reporting requirement for the filing of a currency transaction report. The Conigliaros admitted to withdrawing $124,000 in cash in this manner.
In December 2014, following a two-year investigation, the Conigliaros and 12 other employees and associates of NECC were charged in a federal indictment. The indictment did not charge the Conigliaros with having an active role in the operations or management of NECC, but did charge them with transferring assets following the fungal meningitis outbreak.
NECC’s owner and head pharmacist Barry J. Cadden and supervisory pharmacist Glenn A. Chin, were charged with 25 racketeering acts of second-degree murder in seven states. Ten other defendants, including six pharmacists, the director of operations, the national sales director, an unlicensed pharmacy technician, and another owner, were charged with additional crimes including racketeering, mail fraud, conspiracy, and violations of the Food, Drug and Cosmetic Act. Cadden and Chin are scheduled to stand trial on Jan. 5, 2017.
United States Attorney Carmen M. Ortiz; Jeffrey J. Ebersole, Special agent in Charge of the Food and Drug Administration, Office of Criminal Investigations, New York Field Office; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; Jeffrey Hughtes, Special Agent in Charge of the U.S. Department of Veterans Affairs, Office of Inspector General, Northeast Field Office; Craig Rupert, Special Agent in Charge of the U.S. Department of Defense, Office of Inspector General, Defense Criminal Investigative Service, Northeast Field Office; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case is being prosecuted by Assistant U.S. Attorneys George P. Varghese and Amanda P.M. Strachan of Ortiz’s Health Care Fraud Unit and John W.M. Claud of the Justice Department’s Consumer Protection Branch.
The details contained in the Indictment are allegations. The defendants are presumed innocent unless and until proven guilty beyond a reasonable doubt.
Mail Theft and Bank Fraud Scheme Results in Federal Prison SentenceRead the Press Release
MEDFORD, Ore. – Christopher Alan Page, 32, of Talent, Oregon was sentenced Thursday to 36 months in federal prison by U.S. District Judge Michael J. McShane after his convictions for bank fraud, aggravated identity theft and unlawful possession of ammunition by a felon. The sentence included a mandatory consecutive term of two years’ imprisonment required by federal law because a victim’s identification was possessed or used in committing bank fraud. Page was also ordered to pay over $50,000 in restitution.
In February 2015, Page stole mail from more than 100 mailboxes in rural Josephine County, Oregon. Page was identified when a citizen confronted Page while he was in the process of stealing mail and took video of the confrontation with his cell phone. When Page was arrested, the police seized multiple credit cards and checks in the names of numerous mail theft victims. Authorities also seized large quantities of stolen mail, fraudulent debit/credit cards, stolen identity profiles, a credit card embossing machine, a credit card reader and several boxes of ammunition. Authorities also found a victim profile list, containing personal identifying information, that Page had created
The investigation determined that Page attempted to steal more than $275,000 in 54 separate fraudulent credit card transactions made using his Square, Inc. account, although most of those transactions were identified as fraudulent before Page was able to obtain the funds. Page has prior criminal convictions for burglaries, unauthorized use of a vehicle, recklessly endangering another person, possession of heroin and attempting to elude police on several occasions.
This case was investigated by the Grants Pass Department of Public Safety and the U.S. Postal Inspection Service and prosecuted by Assistant U.S. Attorney Byron Chatfield.
Lexington Man and His Medical Device Company Sued for Grant FraudRead the Press Release
LEXINGTON, Ky. – The United States Government has sued a Lexington man, and the Lexington-based medical device company he owns, for violations of the False Claims Act, a federal law that prohibits people from submitting false or fraudulent claims for payment to the federal government.
On Tuesday, July 26, 2016, the United States filed a civil suit against Jerome Hahn and Telehealth Holdings, LLC, alleging that they defrauded the government by submitting false claims in connection with federal grants. According to the Complaint, filed in U.S. District Court, Telehealth received three grants from the federal government, worth over $600,000, to support the development of a sleep apnea monitoring system and the development of electronic pillboxes customized for specific patient populations, including cancer patients.
The Complaint alleges that Hahn and Telehealth committed fraud in connection with these grants, including by making false statements in the grant applications about Telehealth’s personnel, facilities, and accounting systems.
The Complaint also alleges that Hahn and Telehealth falsely stated in grant reports that they had spent the grant funds for purposes of the grants and in compliance with grant regulations. Instead, Hahn and Telehealth allegedly spent the grant money on personal expenses, such as meals at restaurants, a trip to Keeneland Racecourse, and interest payments on personal credit cards. Hahn and Telehealth also allegedly used grant money on business expenses not allowed under the grant regulations, including costs associated with marketing and promoting their products. Additionally, Hahn and Telehealth allegedly spent over $100,000 in grant funds purchasing foreign goods and services, even though grant regulations require grant recipients to use American goods and workers.
According to the Complaint, Telehealth also falsified entries in its accounting ledgers and created false invoices in order to conceal from the government that the federal grant funds had been misspent.
The Government contends that the false statements made in the grant applications, the grant reports, and the accounting ledgers constitute violations of the False Claims Act. If the defendants are found liable at trial, they would be responsible for paying three times the amount of loss proven at trial, plus additional penalties for each false claim.
In a related criminal case, Mr. Hahn pleaded guilty to conspiring to defraud the United States by making false claims in connection with grants that were awarded to Telehealth. On June 13, 2016, U.S. District Judge Danny C. Reeves sentenced Hahn to four months in prison and an additional six months on home detention. Hahn was also ordered to pay $222,037 in restitution to the National Institutes of Health.
The investigation was conducted by the United States Attorney’s Office for the Eastern District of Kentucky; the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorney Kate K. Smith represented the United States in the related criminal case. Assistant United States Attorneys Christine Corndorf and Carrie B. Pond are litigating the False Claims Act case on behalf of the Government.
Lexington Man and His Medical Device Company Sued for Grant FraudRead the Press Release
LEXINGTON, Ky. – The United States Government has sued a Lexington man, and the Lexington-based medical device company he owns, for violations of the False Claims Act, a federal law that prohibits people from submitting false or fraudulent claims for payment to the federal government.
On Tuesday, July 26, 2016, the United States filed a civil suit against Jerome Hahn and Telehealth Holdings, LLC, alleging that they defrauded the government by submitting false claims in connection with federal grants. According to the Complaint, filed in U.S. District Court, Telehealth received three grants from the federal government, worth over $600,000, to support the development of a sleep apnea monitoring system and the development of electronic pillboxes customized for specific patient populations, including cancer patients.
The Complaint alleges that Hahn and Telehealth committed fraud in connection with these grants, including by making false statements in the grant applications about Telehealth’s personnel, facilities, and accounting systems.
The Complaint also alleges that Hahn and Telehealth falsely stated in grant reports that they had spent the grant funds for purposes of the grants and in compliance with grant regulations. Instead, Hahn and Telehealth allegedly spent the grant money on personal expenses, such as meals at restaurants, a trip to Keeneland Racecourse, and interest payments on personal credit cards. Hahn and Telehealth also allegedly used grant money on business expenses not allowed under the grant regulations, including costs associated with marketing and promoting their products. Additionally, Hahn and Telehealth allegedly spent over $100,000 in grant funds purchasing foreign goods and services, even though grant regulations require grant recipients to use American goods and workers.
According to the Complaint, Telehealth also falsified entries in its accounting ledgers and created false invoices in order to conceal from the government that the federal grant funds had been misspent.
The Government contends that the false statements made in the grant applications, the grant reports, and the accounting ledgers constitute violations of the False Claims Act. If the defendants are found liable at trial, they would be responsible for paying three times the amount of loss proven at trial, plus additional penalties for each false claim.
In a related criminal case, Mr. Hahn pleaded guilty to conspiring to defraud the United States by making false claims in connection with grants that were awarded to Telehealth. On June 13, 2016, U.S. District Judge Danny C. Reeves sentenced Hahn to four months in prison and an additional six months on home detention. Hahn was also ordered to pay $222,037 in restitution to the National Institutes of Health.
The investigation was conducted by the United States Attorney’s Office for the Eastern District of Kentucky; the Federal Bureau of Investigation; the U.S. Department of Health and Human Services, Office of Inspector General; and the Internal Revenue Service, Criminal Investigation Division. Assistant U.S. Attorney Kate K. Smith represented the United States in the related criminal case. Assistant United States Attorneys Christine Corndorf and Carrie B. Pond are litigating the False Claims Act case on behalf of the Government.
Lehigh Acres Resident Charged with Firearms Offenses Related to Investigation of Club Blu Mass ShootingRead the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces the arrest and charging by criminal complaint of Jazmin Challana Barron (33, Lehigh Acres) with making false statements during the purchase of a firearm and making false statements in records kept by a Federal Firearms Licensee (FFL). If convicted on all counts, she faces a maximum penalty of 10 years in federal prison for making the false statement during the purchase of a firearm and 5 years’ imprisonment for making a false statement in records kept by a FFL. Barron made her initial appearance in federal court today and was released on a $25,000 bond.
According to the complaint affidavit, on February 20, 2015, Barron purchased a MasterPiece Arms pistol (Model: MPA57SST; 5.7 caliber; SN: V9101) from Gunsmoke and Lead, a licensed federal firearms dealer, in Lehigh Acres, Florida. Barron completed an ATF Form 4473 as required to purchase the firearm; however, she provided a false address where she had not, and was not, residing at the time of the purchase. The firearm was recovered by the Fort Myers Police Department near the scene of the mass shooting at the Club Blu Bar and Grill on July 25, 2016.
A complaint is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the Fort Myers Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. It will be prosecuted by Chief Assistant United States Attorney Jesus M. Casas.
This is another case prosecuted as a part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Daryl R. McCrary, Special Agent in Charge, ATF, is coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline strategy to reduce violent crime in our communities.
Laurel Man Pleads Guilty to Federal Charges Related to a Bank Fraud Scheme and a Conspiracy to Transport Stolen Vehicles to AfricaRead the Press Release
Baltimore, Maryland – Issah Mohammed, a/k/a Yissa and Ali, age 28, a citizen of Ghana residing in Laurel, Maryland, pleaded guilty today to federal bank fraud and wire fraud conspiracy charges related to a scheme in which Mohammed and his co-conspirators impersonated individual victims to remove funds from the victims’ investment accounts. Mohammed also pleaded guilty to conspiracy to transport stolen motor vehicles in connection with his participation in a conspiracy to transport stolen vehicles to Africa.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); U.S. Customs and Border Protection Baltimore Port Director Dianna Bowman; Chief James W. Johnson of the Baltimore County Police Department; and Chief Hank Stawinski of the Prince George’s County Police Department.
According to his plea agreement from at least January 31, 2013, through May 12, 2014, Mohammed were part of a conspiracy that acquired stolen vehicles, some of which were stolen from other states and transported to Maryland, and then shipped to Africa for sale. Members of the conspiracy in the United States would hire other to steal vehicles – with the keys – so that the vehicles could be more easily sold. Mohammed and other members of the conspiracy: purchased the stolen vehicles from the thieves or an intermediary; arranged to store the vehicles at parking lots and other locations, known as “cooling spots”; loaded the vehicles into a shipping container; and transported the containers to a port, including the Port of Baltimore, for export to destinations including Lagos, Nigeria and Accra, Ghana.
In order to ship vehicles overseas, shipping companies are required to have valid titles for the vehicles. As part of the scheme, Mohammed and other members of conspiracy used fraudulent title information in an effort to conceal that the cars they sought to ship had been stolen. Mohammed and other conspirators: acquired false Vehicle Identification Numbers (VINs) and replaced the true VINs on the stolen vehicles; and registered businesses with the state of Maryland, then used these businesses to create registration paperwork for the vehicles, including false bills of sale utilizing the false VINs. In that manner, the conspirators were able to acquire or forge title(s), registration(s), and proof of insurance for the vehicles to fill out the necessary paperwork in order to be able to ship the cars overseas. The loss for the cars, both recovered and not recovered, was over $200,000.
Further, Mohammed admitted that from March through November 2104, he and his conspirators stole money from the accounts of individual victims. The conspirators obtained the email addresses of victims, then purporting to be the victims, sent emails to investment account managers requesting that funds be wired into a business account controlled by Mohammed or a co-conspirator. They also obtained victims’ account information at various investment account firms and took over the online accounts of the victims. Mohammed and others also created fraudulent checks and cashier’s checks drawn on the victims’ accounts. Conspirators recruited by Mohammed deposited those checks into bank accounts they controlled. Mohammed and others then withdrew or transferred the funds from the business account they maintained to receive the victims’ funds to other accounts controlled by the conspirators before the bank discovered the fraud. The total intended loss was approximately $1,022,183.10. The actual loss, that is funds successfully withdrawn, was $292,463.19.
The proceeds from the bank and wire fraud conspiracy were pooled with the funds used and generated from the purchase and sale of the stolen vehicles.
Mohammed faces a maximum sentence of 30 years in prison for the bank and wire fraud conspiracy, and a maximum of five in prison for conspiracy to transport stolen motor vehicles. U.S. District Judge J. Frederick Motz scheduled sentencing for October 7, 2016 at 2:15 p.m.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein commended HSI Baltimore, U.S. Customs and Border Protection and the Baltimore County and Prince George’s County Police Departments for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Judson T. Mihok and Zachary A. Myers, who are prosecuting the case.
Lakeland Man Pleads Guilty to Distributing Fentanyl, Causing Two DeathsRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Wilson Angelo Graham, Jr., a/k/a “Noony” (34, Lakeland) pleaded guilty yesterday to conspiracy to distribute fentanyl and cocaine, resulting in two deaths. He faces a minimum penalty of 20 years, up to life, in federal prison. A sentencing date has not yet been set.
Fentanyl is a Schedule II controlled substance that is used in the same manner as heroin. Because of its potency, a small amount of fentanyl is potentially lethal.
According to the plea agreement, from at least October 3, 2015, through his arrest on October 28, 2015, Graham distributed fentanyl and cocaine in Lakeland. Beginning on October 3rd, Graham sent messages to “D.G.” about fentanyl that Graham had available to sell. Graham also advised “D.G.” that the fentanyl was too strong to use more than half a baggie at once. Between October 3rd and October 16, 2015, “D.G.” made multiple trips to Graham’s residence.
On the evening of October 16, 2015, the body of “B.S.,” the girlfriend of “D.G.,” was found slumped over a coffee table in her parents’ guest cottage in Lakeland. During a search of the guest cottage, detectives with the Polk County Sheriff’s Office (PCSO) located syringes, spoons with burned residue, and an empty package with drug residue. The empty package was light blue; stamped on the package were the words “Face to Face” and a silhouette of two heads facing each other. Laboratory testing of the residues from the spoons and package revealed the presence of fentanyl. A lethal amount of fentanyl was found in “B.S.’s” body.
On the morning of October 22, 2015, the Lakeland Police Department’s Violent Crimes Unit responded to an apartment in Lakeland, where they found the body of “D.G.” on the kitchen floor. Near the body, detectives located numerous pieces of drug paraphernalia, including spoons with burned residue and an empty package with drug residue resembling the empty package found near the body of “B.S.” Light blue wax paper, with the words “Face to Face,” and a silhouette of two heads facing each other, were also found. Laboratory testing of the spoon and package residues revealed the presence of fentanyl and one of the spoons revealed the presence of cocaine. A lethal amount of fentanyl was found in “D.G.’s” body and evidence revealed that “D.G.” was at Graham’s residence the night before he died.
On October 28, 2015, PCSO detectives executed a search warrant at Graham’s residence. During the search, detectives found eight baggies containing fentanyl. At least one of the baggies resembled the baggies found near the bodies of “B.S.” and “D.G.”
This case was investigated by the Polk County Sheriff’s Office, the Lakeland Police Department, and the U.S. Drug Enforcement Administration. It is being prosecuted by Assistant United States Attorney Dan Baeza.
Kern County Man Arrested for Methamphetamine TraffickingRead the Press Release
BAKERSFIELD, Calif. — A federal grand jury returned a one-count indictment Thursday against Jose Soto, 35, of Lamont, charging him with possession with intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced. Soto was arrested today at his home on those charges.
According to court documents, on May 5, 2016, Soto possessed over 50 grams of actual methamphetamine and over 500 grams of a mixture and substance containing a detectable amount of methamphetamine, which he possessed for sale at his residence in Lamont.
This case was the product of an investigation by the Drug Enforcement Administration and the Kern County Probation Department. Assistant United States Attorney Angela Scott is prosecuting the case.
If convicted, Soto faces a maximum statutory penalty of life in prison and a $10 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Jury Convicts Mother, Two Sons in Drug Trafficking Case; Sons Also Convicted of MurderRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051ROCHESTER, N.Y.--U.S. Attorney William J. Hochul, Jr. announced today that a federal jury has convicted James Kendrick, his brother, Pablo "Paul" Plaza, and their mother Janine Plaza-Pierce of conspiracy to possess with intent to distribute and to distribute large quantities of illegal narcotics. In addition, Kendrick was found guilty of the murders of Francisco Santos and Ryan Cooper. Plaza was also found guilty of the murder of Santos. Pierce was acquitted in the murder of Santos.
“Regardless of how violent the criminals - and these defendants were among the worst - federal law provides effective tools by which to remove predators and protect the public,” said U.S. Attorney Hochul. “At the same time, solving crimes in which the victims were dismembered and years had elapsed requires extraordinary professional skill and dedication. The entire community is rightly proud of the work of our federal ATF agents and local police departments, including RPD, and from this Office, Assistant United States Attorneys Everardo Rodriquez and Melissa Marangola.”
When sentenced, defendants Kendrick and Plaza face life in prison, Pierce faces a maximum of 20 years in prison.
Assistant U.S. Attorneys Everardo A. Rodriguez and Melissa M. Marangola, who handled the prosecution of the case, stated that Kendrick and his brother Plaza spearheaded a long term, violent narcotics trafficking ring in the City of Rochester between 1993, through and including March 2011. To protect the conspiracy and its members from other drug dealers and those deemed to be disloyal workers, Kendrick, Plaza and others in the conspiracy resorted to violence including beatings and murder.
Specifically, Francisco Santos, a/k/a “Cisco,” was murdered in October 1998. Santos’ body was found in May 1999 buried on the Cattaraugus Indian Reservation in Erie County. Santos was a worker for Kendrick and Plaza and was murdered because the defendants believed he betrayed the organization by stealing drugs, cash and guns. Kendrick and Plaza initially retaliated by conducting a drive by shooting at the residence of Santos’ father, step-mother and sisters, who were four and six years old at the time.
Ryan Cooper, a/k/a “Chewey,” was murdered in late May 1999. Cooper was a cousin of the defendants. Kendrick murdered Cooper because he feared Cooper would go to police about what he knew about the murder of Francisco Santos. Rather than bury the body of Cooper as they buried Santos, Kendrick chose to dismember Cooper’s body and spread the parts around the Rochester area. While none of Cooper’s remains have ever been found, three trained cadaver dogs from the Rhode Island State Police independently alerted to a location behind the athletic field of a school in Rochester next to railroad tracks. Government witnesses testified that this was the same location where parts of Cooper’s body had been disposed.
During the trial, the Government also presented evidence of additional acts of violence including shootings the murder of Jose Troche on January 14, 2010. The Government’s proof established that Kendrick and Plaza planned and executed the murder of Troche because they feared that Troche, also a member of the conspiracy, was planning to cooperate in the prosecution of the defendants. In connection with the Troche murder, Kendrick and Plaza decided that Kendrick would go to a local supermarket and be seen on camera at the time of Troche’s.
ATF Special Agent in Charge Delano A. Reid said, “These violent drug dealers spread fear, intimidation, mayhem, and in the Rochester area for almost two decades, leaving death in their wake. Their conviction for trafficking in narcotics, using firearms, and committing homicide means that they will enjoy lengthy prison sentences in a Federal penitentiary as a just reward for their crimes. We hope that these convictions help to make the community safer and bring some solace to the families of their victims. To those gang members out there who think that crime and violence are the path forward, consider this a warning that we in law enforcement are ready for you, and you may be the next target for investigation and prosecution. We would like to extend our gratitude to the United States Attorney’s Office for their dedication to this investigation and their perseverance during a lengthy trial. I would like to extend a special thanks to our law enforcement partners, and the members of ATF and the Rochester Police Department who serve on our Rochester Violent Crime Task Force, who work hard every day to make Rochester a safer place to live.”
Nine other defendants involved in the drug conspiracy were charged and convicted.
The verdict is based on a joint investigation consisting of the Federal Bureau of Alcohol, Tobacco, Firearms and Explosives, under the direction of Delano A. Reid, Special Agent in Charge, New York Field Division, and the Rochester Police Department, Violent Crime Team/Firearms Suppression Unit, under the direction of Chief Michael Ciminelli.
Sentencing will be scheduled at a later date before Chief U.S. District Judge Frank P. Geraci, Jr. who presided over the trial.
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UPDATE:
Chief U.S. District Judge Frank P. Geraci, Jr. this afternoon granted a request by the attorney for defendant Janine Plaza Pierce to set aside the jury’s guilty verdict on the charge of conspiracy to possess with intent to distribute and to distribute large quantities of illegal narcotics. The judge also set aside the jury’s guilty verdict involving a charge of possession with intent to distribute heroin at 87 Thomas St. in Rochester against Pablo Plaza.