Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
8 July 2016
Albuquerque Man Pleads Guilty to Failing to Update his Sex Offender RegistrationRead the Press Release
ALBUQUERQUE – Willie Lewis Griffin, 44, of Albuquerque, N.M., pled guilty this morning in federal court to violating the Sex Offender Registration and Notification Act (SORNA). The guilty plea was announced by U.S. Attorney Damon P. Martinez and U.S. Marshal Conrad E. Candelaria.
SORNA, also known as the Adam Walsh Protection and Safety Act, requires that a convicted sex offender register in each jurisdiction where the offender resides, where the offender is employed, or where the offender is a student, and that the sex offender maintain current registrations.
Griffin was arrested on April 28, 2016, on a criminal complaint charging him with violating SORNA by failing to update his sex offender registration. On May 24, 2016, Griffin was indicted on that same charge. According to the indictment, Griffin failed to update his registration between Jan. 23, 2016 and May 1, 2016, in Bernalillo County, N.M.
According to the criminal complaint, Griffin was convicted in Feb. 1993, of breaking and entering, three counts of criminal sexual conduct with a weapon, armed robbery and assault with a dangerous weapon, and was sentenced to not more than 20 years in federal prison. On March 31, 2012, Griffin registered as a sex offender in the state of Michigan and agreed to notify the jurisdiction to which he moved if he relocated outside of the jurisdiction. According to the complaint, the U.S. Marshals Service was notified that Griffin had been residing in Albuquerque since Feb. 2016, and was not registered as a sex offender in the jurisdiction.
During today’s plea hearing, Griffin pled guilty to the indictment and admitted that from Jan. 23, 2016 through May 1, 2016, he failed to update his sex offender registration in Bernalillo County. At sentencing, Griffin faces a statutory maximum penalty of ten years in federal prison. Griffin will be required to register as a sex offender after completing his prison sentence. A sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Marshals Service and is being prosecuted by Assistant U.S. Attorney Niki Tapia-Brito.
18th Street Gang Member Sentenced for Prostituting 15-Year-Old GirlRead the Press Release
ALEXANDRIA, Va. –Derek Leon Mantilla, 21, an 18th Street Gang member formerly of Fairfax, was sentenced today to 144 months in prison for sex trafficking of a minor. Mantilla was also sentenced to 20 years of supervised release and ordered to register as a sex offender upon release from prison.
According to the statement of facts filed with the plea agreement, Mantilla admitted that from at least November 2014 through February 2015, that he, Ismael Antonio Mendez and Caitlyn Ann Smith, recruited a 15 year-old girl to engage in commercial sex acts to pay off a debt that was owed to Mantilla by Mendez. The adults taught the girl how to prostitute, took photos of her to use in advertisements, and created advertisements for commercial sex that were posted on the Internet. The three adults knew the girl was a minor and instructed her to lie about her age to customers. Over a three month period, the adults traveled with the girl through various states, including Virginia, for the purposes of advertising and engaging the girl in commercial sex. During that period, the girl worked seven days a week and saw an average of 10 to 12 customers a night. Once the girl had earned enough to pay off the debt, the Mantilla directed her to leave the adults, and she did. Co-defendants Ismael Antonio Mendez and Caitlyn Ann Smith previously pleaded guilty in the case.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, Leslie R. Caldwell, Assistant Attorney General of the Justice Department’s Criminal Division, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Colonel Edwin C. Roessler Jr., Chief of the Fairfax County Police Department, made the announcement after sentencing by U.S. District Judge Leonie M. Brinkema. Assistant U.S. Attorney Whitney Dougherty Russell and Special Assistant U.S. Attorney Lauren Britsch prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information please visit Project Safe Childhood.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:16-cr-91.
7 July 2016
York Man Indicted for Federal Drug Trafficking and Firearms ChargesRead the Press Release
HARRISBURG – The United States Attorney=s Office for the Middle District of Pennsylvania announced today that Quan Leroy Gross, 44, of York, Pennsylvania was indicted yesterday by a federal grand jury in Harrisburg, Pennsylvania. The indictment charged Gross with possession of a firearm by a convicted felon, possession of a firearm in furtherance of drug trafficking, and possession with intent to distribute a controlled substance, that being crack cocaine.
According to United States Attorney Peter Smith, the charges against Gross are a result of allegations that he was engaged in drug trafficking activities in York, Pennsylvania in June 2015. In addition, Gross is charged with possessing a firearm in furtherance of drug trafficking at the time of his arrest.
Gross was detained today following his detention hearing before United States Magistrate Chief Judge Martin C. Carlson. A trial date has been scheduled for September 12, 2016 before United States District Court Judge William W. Caldwell.
Gross faces a mandatory minimum of 15 years imprisonment and a statutory maximum of life imprisonment.
This case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Harrisburg Police Bureau. This case is being prosecuted by Assistant United States Attorney Meredith A. Taylor.
This case was brought as part of the Violent Crime Reduction Partnership (“VCRP”), a district wide initiative to combat the spread of violent crime in the Middle District of Pennsylvania. Led by the United States Attorney’s Office, the VCRP consists of federal, state and local law enforcement agencies whose mission is to locate, apprehend, and prosecute individuals who commit violent crimes.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is lifetime imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
West Chester Man Pleads Guilty to Plot to Attack U.S. Government OfficersRead the Press Release
CINCINNATI – Officials announced today the details of a national security case involving a plot to attack a U.S. military official and a local police station.
Assistant Attorney General for National Security John P. Carlin, Acting U.S. Attorney Benjamin C. Glassman for the Southern District of Ohio, Special Agent in Charge Angela L. Byers of the FBI’s Cincinnati Field Division, West Chester Police Chief Joel Herzog, Ohio State Highway Patrol Superintendent Colonel Paul A. Pride and Cincinnati Police Chief Eliot Isaac announced the unsealing of a bill of information and plea agreement related to Munir Abdulkader, 21, of West Chester, Ohio.
Under the plea agreement, Abdulkader has pleaded guilty to attempting to kill officers and employees of the United States, material support of a foreign terrorist organization and possession of a firearm in furtherance of a crime of violence. Abdulkader was charged for his plot to attack and kill an employee of a U.S. military installation and then attack a local police station, all in the Southern District of Ohio.
According to the statement of facts admitted by Adbulkader at the plea hearing, beginning in at least July 2014 and continuing into 2015, Abdulkader expressed his support for the Islamic State in Iraq and the Levant (“ISIL”) on Twitter accounts. From approximately March 2015 to mid-April 2015, Abdulkader began speaking with a Confidential Human Source (CHS) about his desire and intention to travel to Syria in order to join ISIL as a fighter.
During that same time, Abdulkader made plans and preparations to travel to Syria to join ISIL as a fighter. Namely, he secured a passport, saved money for the trip and researched the logistical details of traveling to Syria and joining ISIL. In late April, though, Abdulkader expressed concerns about the ability to travel and postponed his original departure date of May 2, 2015.
During May 2015, Abdulkader was in electronic communication with one or more individuals located overseas who he understood were members of ISIL. One of those individuals was a member of ISIL identified as Junaid Hussein. Through their communications, Junaid Hussein directed and encouraged Abdulkader to plan and execute a violent attack within the United States.
Abdulkader communicated with Junaid Hussein and the CHS about a plan to kill an identified military employee on account of his position with the United States government. The plan included abducting the employee at the employee’s home and filming the execution of the employee.
After killing the employee, Abdulkader planned to execute a violent attack on a police station in the Southern District of Ohio using firearms and Molotov cocktails.
In preparation for the attacks, Abdulkader took the following actions:
-
Asked the CHS to purchase a vest for holding ammunition.
-
On or about May 18, 2015, traveled to a police station in the Southern District of Ohio and conducted surveillance of the police station.
-
On or about May 20, 2015, went to a shooting range, learned how to operate certain firearms and practiced shooting the firearms. Abdulkader also negotiated the purchase of a firearm, namely an AK-47 assault rifle, for $350.
-
On May 21, 2015, provided funds for the purchase of an AK-47 assault rifle and took possession of the firearm.
Adbulkader was arrested on May 21, 2015 by the FBI Joint Terrorism Task Force (JTTF), after a controlled purchase and possession of the AK-47 assault rifle.
The defendant was charged by criminal complaint on May 22, 2015 and a bill of information was filed on March 2, 2016. Abdulkader pleaded guilty to the three charges in the information on March 24, 2016, before U.S. District Judge Michael R. Barrett. The case was under seal until today.
Attempted murder of government employees and officials is a crime punishable by up to 20 years in prison. Material support of a foreign terrorist organization is a crime punishable by 15 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 in prison.
Assistant Attorney General Carlin and Acting U.S. Attorney Glassman commended the investigation of this case by the JTTF. The case is being prosecuted by Assistant U.S. Attorney Tim Mangan and Michael Dittoe of the Justice Department National Security Division Counterterrorism Section.
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, United States Air Force OSI, FBI, United States Immigrations and Customs Enforcement, United States Internal Revenue Service, United States Secret Service, United States Postal Inspection Service, West Chester Police Department and Xenia Police Department.
-
Vermont Man Faces Heroin ChargesRead the Press Release
The Office of the United States Attorney for the District of Vermont stated that, Phillip Wilson, age 36, of Burlington, Vermont, was arrested on July 6, 2016 and charged via federal criminal complaint with distributing heroin on June 23, 2016. Wilson made his initial appearance in federal court on July 6, 2016 before U.S. Magistrate Judge John M. Conroy. At a detention hearing on July 7, 2016, the Court ordered Wilson detained pending trial.
According to court records, the Vermont State Police Drug Task Force conducted a lengthy investigation into potential heroin distribution by Wilson. On July 6, 2016—the same day Wilson was arrested—law enforcement executed federal search warrants at Wilson’s residence in Burlington and at a second residence associated with Wilson in Essex, Vermont.
If convicted on the current charge, Wilson would face a statutory maximum term of 20 years in prison. His actual sentence would be determined with reference to the federal sentencing guidelines. United States Attorney Eric Miller emphasized that the charge in the criminal complaint is only an accusation and Wilson is presumed innocent unless and until he is proven guilty.
United States Attorney Miller commended the efforts of the agencies involved in this investigation, which include the Vermont State Police Drug Task Force, the Drug Enforcement Administration, the Bureau of Alcohol Tobacco Firearms and Explosives, and the Burlington Police Department.
The prosecution is being handled by Assistant U.S. Attorney Timothy C. Doherty, Jr. Wilson is represented by defense attorney Mark Oettinger.
United States Returns $1.5 Million in Forfeited Proceeds from Sale of Property Purchased with Alleged Bribes Paid to Family of Former President of TaiwanRead the Press Release
The Department of Justice announced today that it is returning approximately $1.5 million to Taiwan, the proceeds of the sale of a forfeited New York condominium and a Virginia residence that the United States alleged in its complaint were purchased with the proceeds of bribes paid to the family of Taiwan’s former President Chen Shui-Bian.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and Executive Associate Director Peter T. Edge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) made the announcement.
According to the civil forfeiture complaints filed in this case, Yuanta Securities Co. Ltd. paid a bribe of 200 million New Taiwan dollars (equivalent to approximately $6 million USD) to former First Lady Wu Shu-Jen in 2004, during former President Chen Shui-Bian’s administration. The bribe was allegedly paid to ensure that the president would use his power so that the Taiwan authorities would not oppose Yuanta’s bid to acquire a financial holding company. The former first family used Hong Kong and Swiss bank accounts, shell companies and a St. Kitts and Nevis trust to transfer the bribe proceeds needed to purchase the properties in Keswick, Virginia, and New York. The properties were owned by the former first family of Taiwan through two limited liability companies. In October 2012, U.S. District Courts in Virginia and in New York entered final forfeiture judgments against these two properties without opposition by the record owners. The United States then sold these two properties and obtained approximately $1.5 million in proceeds, which is being returned to Taiwan.
“The Kleptocracy Initiative was established to prevent corrupt leaders from using the United States as a safe haven for their ill-gotten gains,” said Assistant Attorney General Caldwell. “We are committed to rooting out foreign official corruption and preventing corrupt officials from enjoying their spoils in the United States. We appreciate the cooperation of Taiwan law enforcement in this matter.”
“After many years of collaborative work, we are happy to return these funds to their rightful owners,” said Executive Associate Director Edge. “This is part of an ongoing effort by HSI to identify and seize illegal assets in the United States obtained by corrupt foreign leaders who abuse our financial systems in order to conceal the illicit proceeds of their crimes. HSI special agents in our 62 offices in 43 countries will continue to work with our domestic offices and international law enforcement partners to hold these individuals accountable.”
ICE-HSI investigated the case, with assistance from the agency’s attaché in Hong Kong, HSI Miami's Foreign Corruption Investigation Group and the Taiwan Supreme Prosecutors Office’s Special Investigations Division. Trial Attorney Jennifer Wallis and former Deputy Chief Linda Samuel of the Criminal Division’s Asset Forfeiture and Money Laundering Section (AFMLS) prosecuted the case. The Criminal Division’s Office of International Affairs also provided valuable assistance.
The Justice Department’s Kleptocracy Asset Recovery Initiative is carried out by a dedicated team of prosecutors in AFMLS, working in partnership with federal law enforcement agencies to forfeit the proceeds of foreign official corruption and, where appropriate, return those proceeds to benefit those harmed. Individuals with information about possible proceeds of foreign corruption located in or laundered through institutions in the United States should contact federal law enforcement or send an email to [email protected].
HSI’s Foreign Corruption Investigations Group targets corrupt foreign officials around the world who attempt to utilize U.S. financial institutions to launder illicit funds. The group conducts investigations into the laundering of proceeds emanating from foreign public corruption, bribery or embezzlement. The objective is to prevent foreign derived ill-gotten gains from entering the U.S. financial infrastructure, to seize identified assets in the United States and repatriate these funds on behalf of those affected.
U.S. Attorney Targets Human Trafficking at Conference in Manhattan, Kan.Read the Press Release
MANHATTAN, KAN. – Almost 200 law enforcement officers and victim service providers from across Kansas will be in Manhattan Tuesday and Wednesday to team up in the fight against human trafficking, Acting U.S. Attorney Tom Beall said today.
“Human trafficking is the modern form of slavery,” Beall said. “It’s here now. It’s happening in communities across Kansas. It’s everybody’s problem.”
Beall is joining with Riley County Attorney Barry Wilkerson, Kansas Attorney General Derek Schmidt and the Kansas Law Enforcement Training Center to sponsor the conference, which will run from 8 a.m. to 4 p.m. July 12, and 8 a.m. to noon July 13 at the Manhattan Conference Center, 410 S. 3rd in Manhattan.
Craig Hill of the National Center for Missing and Exploited Children will lead off with a presentation on domestic child sex trafficking. Sedgwick County District Attorney Marc Bennett will talk about how law enforcement officers and prosecutors work with reluctant victims and witnesses. Tina Peck of Via Christ Health will discuss how Via Christi’s hospitals in Wichita work to identify trafficking victims who seek emergency treatment and offer them help. Assistant U.S. Attorney Jason Hart will describe how federal prosecutors are working with the Wichita Police Department to target businesses that are fronts for human trafficking.
Other speakers will include Michael Geiger, a retired detective sergeant from Portland; Chris Baughman, author of “Off the Streets,” Anna Brewer, a retired FBI agent; Deb Kluttz, executive director of The Homestead in Manhattan; Kent Bauman of the Wichita Police Department’s Exploited and Missing Children Unit, Dorothy Sucky Halley and Jeff Wagaman of the Kansas Attorney General’s Office; Katie Cronin of Stinson Leonard Street; and Vivian VanVleet of the U.S. Attorney’s Office.
Registration is required, including a $50 fee. More information is available on the Web at http://2016htconference.weebly.com/
Two Former Regions Bank Employees Indicted in Bribery and Wire Fraud SchemeRead the Press Release
BIRMINGHAM – A federal grand jury last week indicted two former Regions Bank employees for conspiracy in a $5 million bribery and wire fraud scheme, announced U.S. Attorney Joyce White Vance and FBI Special Agent in Charge Roger C. Stanton.
A 39-count indictment filed in U.S. District Court charges RICHARD ALAN HENDERSON, 57, of Hoover, and PHILIP HENRY COOPER, 66, of Birmingham, with conspiracy, bank bribery, wire fraud affecting a financial institution and money laundering.
Henderson and Cooper were Regions’ employees, serving as officers of Regions Equipment Financing Corp., a part of the bank that offered business customers various financing tools, including equipment financing and lease options. Henderson began as senior vice president and finance manager of REFCO and was promoted in April 2012 to its chief administrative officer. Cooper worked as senior vice president and asset manager of REFCO.
According to the indictment, Henderson and Cooper recruited a third man, Jesse Stewart Ellis, who has agreed to plead guilty to charges arising from this scheme, to establish a company that would enter an agreement with REFCO to provide residual value insurance, a type of insurance designed to manage asset value risk. Ellis had no experience providing residual value insurance. The defendants directed REFCO’s residual value insurance business to Ellis’ new company, and he, in return, split the proceeds of the business with Henderson and Cooper, according to the charges. The defendants concealed from Regions that they were receiving money as a result of directing REFCO’s residual value insurance business to the company Ellis established.
Between Sept. 2010 and Nov. 2015, REFCO paid Ellis’ company, Residual Assurance Inc., about $5.1 million, most often through interstate wire transfer into the new company’s account at Wells Fargo Bank, the indictment charges. Henderson received about $1.8 million as a result of the scheme and Cooper received about $1.5 million, according to the indictment. The indictment also seeks forfeiture from the defendants in those amounts.
The indictment includes 29 money laundering counts against Henderson and Cooper. The defendants moved the money generated by the scheme among several bank accounts to conceal the ownership and control of the proceeds of the scheme.
The maximum penalty for conspiracy is five years in prison and a $250,000 fine. The maximum penalty for bank bribery is 30 years in prison and a fine of $1 million or three times the value of what was solicited or accepted, whichever is greater. The maximum penalty for wire fraud affecting a financial institution is 30 years in prison and a $1 million fine, and for money laundering and money laundering conspiracy, the maximum penalty is 20 years in prison and a fine of $500,000 or twice the value of the property involved in the transaction, whichever is greater.
The FBI investigated the case, which Assistant U.S. Attorneys George A. Martin Jr. and Henry B. Cornelius are prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
###
Thirty-Pound Methamphetamine Drug Bust in Tulare County Results in Federal Conspiracy Charges Against Five IndividualsRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against five individuals for conspiring to distribute and possess with the intent to distribute methamphetamine, Acting United States Attorney Phillip A. Talbert announced.
Alfonso Rios-Ayon, 43, of Pixley; Sergio Ortega-Maldonado, 45, a Mexican national; Daniel Rios, 32, of Riverside; Ceferino Arjona-Elston, 32, a Mexican National; and Ezequiel Perez-Martinez, 31, a Mexican national, are charged with conspiracy to distribute and possess methamphetamine with the intent to distribute.
According to court documents, on June 29, 2016, law enforcement agents conducted a controlled purchase of approximately 30 pounds of crystal methamphetamine at a ranch in Pixley where Rios-Ayon lived. In the course of the operation agents arrested the all of the defendants except Ortega-Maldonado. Law enforcement officers also executed a federal search warrant at the residence and seized approximately 30 pounds of crystal methamphetamine, three firearms, multiple magazines and ammunition and approximately $12,000 in United States currency.
This case is the product of an investigation by the Drug Enforcement Administration, the Kern County Sheriff’s Office, the Tulare County Sheriff’s Office, the Southern Tri-County Task Force of the Central Valley High Intensity Drug Trafficking Area (HIDTA), the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), the California Department of Motor Vehicles Investigations, the Kern County Probation Department, and the California Highway Patrol. Assistant United States Attorney Brian K. Delaney is prosecuting the case.
If convicted, Rios-Ayon, Ortega-Maldonado, and Rios face a maximum statutory penalty of life in prison and a $10 million fine. If convicted, Arjona-Elston and Perez‑Martinez face a maximum statutory penalty of 20 years and a $1 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 defendants are presumed innocent until and unless proven guilty beyond a reasonable doubt.
Tahlequah and Checotah Men Plead Guilty to Drug ConspiracyRead the Press Release
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma announced that FREDERIC PETERSEN BECK JR., age 54, of Tahlequah, Oklahoma, and BRYAN STEVEN LAFAVOR, age 34, of Checotah, Oklahoma, pled guilty to Drug Conspiracy, in violation of Title 21, United States Code, Sections 846, 841(a)(1) and 841(b)(1)(B).
The Informations allege that in the Eastern District of Oklahoma, the defendants did willfully and knowingly combine, conspire, confederate and agree with other persons, to possess with intent to distribute and to distribute 50 grams or more of a mixture or substance containing a detectable amount of Methamphetamine, a Schedule II Controlled Substance.
The Investigation revealed that Cody McClendon, an Indian Brotherhood (IBH) gang member, currently an inmate with the Oklahoma Department of Corrections in McAlester, Oklahoma was utilizing a contraband cellular phone that he kept hidden on his person and inside his prison cell to facilitate the sale and distribution of methamphetamine. McClendon was doing this by using the cellular phone to communicate with co-conspirators via audio phone calls, text messages, and by communicating on the social media website Facebook. BECK and LAFAVOR were methamphetamine distributors for the organization.
The charges arose from a joint investigation by the Oklahoma Bureau of Narcotics, the Tahlequah Police Department, the Muskogee Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the Drug Enforcement Administration. The investigation was coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led, and coordinated by, the Office of the United States Attorney.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, accepted the pleas and ordered the completion of presentence investigation reports. The defendants will remain in the custody of the United States Marshals Service pending sentencing.
The statutory range of punishment is not less than 5 years and not more than 40 years imprisonment, up to a $5,000,000.00 fine or both.
Assistant United States Attorney Shannon Henson represented the United States.
South Bend Man Sentenced to 51 MonthsRead the Press Release
SOUTH BEND – United States Attorney for the Northern District of Indiana, David Capp, announced that Orlandor Branch, 43, of South Bend, Indiana was sentenced before Judge Robert L. Miller, Jr., for felon in possession of a firearm.
Branch was sentenced to 51 months’ imprisonment and 2 years of supervised release.
According to documents filed in this case, on October 31, 2015 the South Bend Police Department was dispatched to a home for a domestic incident. Upon arrival, police saw Branch wearing a shoulder holster that contained a firearm. On March 23, 2016 Branch changed his plea to guilty admitting to possession of a firearm as a felon.
This case was prosecuted as a result of an investigation by the U.S. Bureau of Alcohol, Tobacco, Firearms and Explosives with the assistance of South Bend, Indiana Police Department. This case was prosecuted by Assistant United States Attorney Frank E. Schaffer.
# # #
Six Charged with Trafficking Heroin in South TampaRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces the unsealing of a twelve-count indictment charging Edward McKenzie (39, Tampa), George Perdigon, a/k/a “Lee” (48, Tampa), Gregory Phelps (61, Tampa), Michael Regan (40, Sun City Center), James Dunn, a/k/a “Wiggy” (34, New York City), and Jesse Greer, a/k/a “Alex” (40, Tampa) with distribution of heroin and/or conspiracy to traffic heroin. If convicted, each faces up to 40 years in federal prison. The indictment also notifies the defendants that the United States intends to forfeit the property located at 3608 West Oklahoma Avenue in Tampa, which the defendants allegedly used to facilitate and further the conspiracy.
According to the indictment, from August 2015 through April 2016, McKenzie, Perdigon, Phelps, Regan, Dunn, and Greer participated in a conspiracy to distribute heroin in and around South Tampa.
An indictment is merely a formal charge that a defendant has committed one or more violations of federal criminal law, and every defendant is presumed innocent unless, and until, proven guilty.
This case was jointly investigated by the Tampa Police Department and the Drug Enforcement Administration. It will be prosecuted by Assistant United States Attorney Dan Baeza.
Seven Los Angeles Men Charged for Firebombing African-American ResidencesRead the Press Release
LOS ANGELES – Seven Los Angeles men were charged in a 10-count indictment unsealed today with participating in the 2014 firebombing of residences of African Americans living in the Boyle Heights section of Los Angeles. The defendants were also charged for their roles in a racketeering enterprise that used violence and intimidation to control the perceived territory of the Big Hazard street gang.
On June 22, 2016, a federal grand jury returned an indictment under seal charging the defendants, all of whom are members and associates of the Big Hazard or Hazard Grande (Hazard) street gang, with a variety of violations stemming from the racketeering enterprise and related to the alleged firebombing that occurred on May 12, 2014, which was intended to drive African Americans from the Ramona Gardens Housing Development (RGHD). The RGHD is a federally and city funded housing development that is occupied primarily by Hispanic residents and located in Boyle Heights.
Carlos Hernandez, aka Creeper and Rider, 31; Jose Saucedo, aka Lil’ Moe, 22; Francisco Farias, aka Bones, 25; Joseue Garibay, aka Malo, 23; Edwin Felix, aka Boogie, 23; Jonathan Portillo, aka Pelon, 21; and Joel Matthew Monarrez, aka Gallo, 21, were charged with conspiracy to violate civil rights; conspiracy to use fire and carry explosives to commit another federal felony; attempted arson of federal property; using fire and carrying explosives to commit another federal felony; aiding and abetting; violent crime in aid of racketeering and interference with housing rights. Hernandez and Farias were also charged with possessing, using, carrying a firearm during a crime of violence, and Felix was also charged with making a false statement to the FBI.
“The defendants used firebombs to drive the victims from their homes because of their race,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This is a hate crime. Such violence and intimidation have no place in our society.”
The Firebombing
The indictment alleges that, in early May, Hernandez led a Hazard meeting at a location in the gang’s territory near the RGHD which was attended by the other defendants. During the meeting, Hernandez allegedly told the group that they were going to use Molotov cocktails to firebomb residential units in the RGHD that were occupied by African-American families. According to the indictment, Hernandez allegedly told the defendants during the meeting that the purpose of the firebombing was to “get the n****** out of the neighborhood,” or words to that effect.
“Crimes targeting innocent people based on the color of their skin are among the most heinous crimes a community can suffer,” said U.S. Attorney Eileen M. Decker of the Central District of California. “In this case, the crime was particularly disturbing since the targets of the criminal conduct included children. As the indictment unsealed today demonstrates, criminals that fuel racial animosity will face severe consequences. All of our communities are made safer by removing these defendants, for whom violence and intimidation are tools of their trade, from the streets.”
On Mother’s Day, May 11, 2014, Hernandez instructed the other defendants to meet at a location in Hazard territory to prepare for the attack. At the meeting, Hernandez distributed materials to be used during the firebombings, including disguises, gloves and other materials, according to the indictment.
The indictment alleges that Hernandez instructed the other defendants to split into groups, break victims’ windows in order to make clean entries, then ignite the firebombs and throw them into the victims’ residences in order to maximize damage. The defendants also took precautions in order to avoid detection by law enforcement.
“This investigation resulted in one of the largest civil rights indictments in local history thanks to the tireless efforts put forth by agents working with detectives to build this case over the past two years," said Deirdre Fike, the Assistant Director in Charge of the FBI's Los Angeles Field Office. "The FBI is committed to seeking justice for the victims whose homes were barbarically firebombed as they put their children to bed, or anyone whose Constitutionally-protected right to happiness is threatened based on the color of their skin.”
Evidence gathered by investigators indicates this attack was motivated by hatred stemming from racial bias. Most of the victims of the firebombing were African-American families who were at home with their children, many of whom were minors.
“Hate crimes and arson are among the most heinous offenses that affect our community,” said Fire Chief Ralph M. Terrazas of the Los Angeles Fire Department (LAFD). “The LAFD greatly appreciates the tireless and collaborative efforts of the U.S. Attorney, FBI, ATF, LAPD and our own arson investigators, all of which assisted in the apprehension of the individuals accused in this case. We are hopeful that the U.S. Attorney will achieve a successful prosecution.”
The Racketeering Conspiracy
According to the indictment, the defendants were members and associates of the Hazard street gang, a criminal organization whose members engaged in, among other things, robbery, extortion, witness intimidation, trafficking and conspiracy to traffic in controlled substances.
The indictment further alleges that Hazard gang members promote the reputation of the criminal enterprise among other Hispanic gangs in Southern California and inside of state and federal prisons by carrying out Hazard leaders’ orders against rival gang members and perceived enemies. Further, Hazard members maintain control and authority over its territory, often through threats, intimidation, civil rights crimes and other acts of violence, including murder.
Hazard members are known to retaliate against rival gang members who challenge Hazard’s authority or who fail to pay debts owed to Hazard members and associates. The indictment further alleges Hazard members expose and punish fellow Hazard members who violate the gang’s rules, as well as expose and punish potential witnesses to crimes by Hazard members and associates who are suspected of cooperating with law enforcement or disrespecting Hazard members. The indictment further alleges that Hazard members impose unwritten rules regarding the control of its territory, including that African-American residents reside in RGHD at the pleasure of the gang and that they face retaliation and/or expulsion from RGHD if they offend Hazard members.
“I am very proud of the partnerships between our agencies that enabled us to investigate and apprehend these violent offenders who preyed upon our community in a manner that will not be tolerated,” said Chief Charlie Beck of the Los Angeles Police Department (LAPD).
“In a civil society, we cannot accept violence fueled by hatred, especially violence that seeks to deprive the freedoms we expect everyone has the right to enjoy,” said Special Agent in Charge Eric D. Harden of the ATF. “These arrests will hopefully bring peace of mind to both the residents of Ramona Gardens and the city of Los Angeles, and demonstrate that law enforcement is united against hate.”
The indictment alleges that the defendants and others conspired to injure, oppress, threaten and intimidate African American residents in violation of their constitutional rights, including the right to occupy a dwelling free from injury, intimidation and interference based on race and color. The indictment alleges Hazard members would spray paint or “tag” gang monikers and symbols on businesses and residences, obtain and possess guns and other dangerous weapons in order to enforce the authority of the Hazard gang, intimidate rivals and residents and attack rivals and African Americans, among other things.
The defendants and others allegedly met to discuss ways to threaten, intimidate, and attack African Americans in their residences, on the streets and elsewhere, to deter them from living in Ramona Gardens because of their race and color. Saucedo would confront African-American residents, including mixed-race children, and individually or collectively threaten them by telling them they were not welcome in Hazard gang territory, namely, RGHD, and that they risked harm if they remained as residents.
If convicted of all counts listed in the indictment, Saucedo, Garibay, Portillo and Monarrez face a maximum sentence of 110 years in prison. Hernandez and Farias face a maximum sentence of life in prison, and Felix faces a maximum penalty of 115 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The investigation was conducted by agents and detectives with the LAPD’s Hollenbeck Division; the LAFD; the ATF; and the FBI Los Angeles Division’s Civil Rights Squad. The case is being prosecuted by Assistant U.S. Attorneys Mack E. Jenkins and Douglas M. Miller of the Central District of California and Trial Attorneys Patricia Sumner and Julia Gegenheimer of the Civil Rights Division’s Criminal Section.
Seven Los Angeles Men Charged for Firebombing African-American ResidencesRead the Press Release
Seven Los Angeles men were charged in a 10-count indictment unsealed today with participating in the 2014 firebombing of residences of African Americans living in the Boyle Heights section of Los Angeles. The defendants were also charged for their roles in a racketeering enterprise that used violence and intimidation to control the perceived territory of the Big Hazard street gang.
On June 22, 2016, a federal grand jury returned an indictment under seal charging the defendants, all of whom are members and associates of the Big Hazard or Hazard Grande (Hazard) street gang, with a variety of violations stemming from the racketeering enterprise and related to the alleged firebombing that occurred on May 12, 2014, which was intended to drive African Americans from the Ramona Gardens Housing Development (RGHD). The RGHD is a federally and city funded housing development that is occupied primarily by Hispanic residents and located in Boyle Heights.
Carlos Hernandez, aka Creeper and Rider, 31; Jose Saucedo, aka Lil’ Moe, 22; Francisco Farias, aka Bones, 25; Joseue Garibay, aka Malo, 23; Edwin Felix, aka Boogie, 23; Jonathan Portillo, aka Pelon, 21; and Joel Matthew Monarrez, aka Gallo, 21, were charged with conspiracy to violate civil rights; conspiracy to use fire and carry explosives to commit another federal felony; attempted arson of federal property; using fire and carrying explosives to commit another federal felony; aiding and abetting; violent crime in aid of racketeering and interference with housing rights. Hernandez and Farias were also charged with possessing, using, carrying a firearm during a crime of violence, and Felix was also charged with making a false statement to the FBI.
“The defendants used firebombs to drive the victims from their homes because of their race,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This is a hate crime. Such violence and intimidation have no place in our society.”
The Firebombing
The indictment alleges that, in early May, Hernandez led a Hazard meeting at a location in the gang’s territory near the RGHD which was attended by the other defendants. During the meeting, Hernandez allegedly told the group that they were going to use Molotov cocktails to firebomb residential units in the RGHD that were occupied by African-American families. According to the indictment, Hernandez allegedly told the defendants during the meeting that the purpose of the firebombing was to “get the n****** out of the neighborhood,” or words to that effect.
“Crimes targeting innocent people based on the color of their skin are among the most heinous crimes a community can suffer,” said U.S. Attorney Eileen M. Decker of the Central District of California. “In this case, the crime was particularly disturbing since the targets of the criminal conduct included children. As the indictment unsealed today demonstrates, criminals that fuel racial animosity will face severe consequences. All of our communities are made safer by removing these defendants, for whom violence and intimidation are tools of their trade, from the streets.”
On Mother’s Day, May 11, 2014, Hernandez instructed the other defendants to meet at a location in Hazard territory to prepare for the attack. At the meeting, Hernandez distributed materials to be used during the firebombings, including disguises, gloves and other materials, according to the indictment.
The indictment alleges that Hernandez instructed the other defendants to split into groups, break victims’ windows in order to make clean entries, then ignite the firebombs and throw them into the victims’ residences in order to maximize damage. The defendants also took precautions in order to avoid detection by law enforcement.
“This investigation resulted in one of the largest civil rights indictments in local history thanks to the tireless efforts put forth by agents working with detectives to build this case over the past two years,” said Assistant Director in Charge Deirdre Fike of the FBI’s Los Angeles Division. “The FBI is committed to seeking justice for the victims whose homes were barbarically firebombed as they put their children to bed, or anyone whose Constitutionally-protected right to happiness is threatened based on the color of their skin.”
Evidence gathered by investigators indicates this attack was motivated by hatred stemming from racial bias. Most of the victims of the firebombing were African-American families who were at home with their children, many of whom were minors.
“Hate crimes and arson are among the most heinous offenses that affect our community,” said Fire Chief Ralph M. Terrazas of the Los Angeles Fire Department (LAFD). “The LAFD greatly appreciates the tireless and collaborative efforts of the U.S. Attorney, FBI, ATF, LAPD and our own arson investigators, all of which assisted in the apprehension of the individuals accused in this case. We are hopeful that the U.S. Attorney will achieve a successful prosecution.”
The Racketeering Conspiracy
According to the indictment, the defendants were members and associates of the Hazard street gang, a criminal organization whose members engaged in, among other things, robbery, extortion, witness intimidation, trafficking and conspiracy to traffic in controlled substances.
The indictment further alleges that Hazard gang members promote the reputation of the criminal enterprise among other Hispanic gangs in Southern California and inside of state and federal prisons by carrying out Hazard leaders’ orders against rival gang members and perceived enemies. Further, Hazard members maintain control and authority over its territory, often through threats, intimidation, civil rights crimes and other acts of violence, including murder.
Hazard members are known to retaliate against rival gang members who challenge Hazard’s authority or who fail to pay debts owed to Hazard members and associates. The indictment further alleges Hazard members expose and punish fellow Hazard members who violate the gang’s rules, as well as expose and punish potential witnesses to crimes by Hazard members and associates who are suspected of cooperating with law enforcement or disrespecting Hazard members. The indictment further alleges that Hazard members impose unwritten rules regarding the control of its territory, including that African-American residents reside in RGHD at the pleasure of the gang and that they face retaliation and/or expulsion from RGHD if they offend Hazard members.
“I am very proud of the partnerships between our agencies that enabled us to investigate and apprehend these violent offenders who preyed upon our community in a manner that will not be tolerated,” said Chief Charlie Beck of the Los Angeles Police Department (LAPD).
“In a civil society, we cannot accept violence fueled by hatred, especially violence that seeks to deprive the freedoms we expect everyone has the right to enjoy,” said Special Agent in Charge Eric D. Harden of the ATF. “These arrests will hopefully bring peace of mind to both the residents of Ramona Gardens and the city of Los Angeles, and demonstrate that law enforcement is united against hate.”
The indictment alleges that the defendants and others conspired to injure, oppress, threaten and intimidate African American residents in violation of their constitutional rights, including the right to occupy a dwelling free from injury, intimidation and interference based on race and color. The indictment alleges Hazard members would spray paint or “tag” gang monikers and symbols on businesses and residences, obtain and possess guns and other dangerous weapons in order to enforce the authority of the Hazard gang, intimidate rivals and residents and attack rivals and African Americans, among other things.
The defendants and others allegedly met to discuss ways to threaten, intimidate, and attack African Americans in their residences, on the streets and elsewhere, to deter them from living in Ramona Gardens because of their race and color. Saucedo would confront African-American residents, including mixed-race children, and individually or collectively threaten them by telling them they were not welcome in Hazard gang territory, namely, RGHD, and that they risked harm if they remained as residents.
If convicted of all counts listed in the indictment, Saucedo, Garibay, Portillo and Monarrez face a maximum sentence of 110 years in prison. Hernandez and Farias face a maximum sentence of life in prison, and Felix faces a maximum penalty of 115 years in prison. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
An indictment is merely an accusation, and the defendants are presumed innocent unless proven guilty.
The investigation was conducted by agents and detectives with the LAPD’s Hollenbeck Division; the LAFD; the ATF; and the FBI Los Angeles Division’s Civil Rights Squad. The case is being prosecuted by Assistant U.S. Attorneys Mack E. Jenkins and Douglas M. Miller of the Central District of California and Trial Attorneys Patricia Sumner and Julia Gegenheimer of the Civil Rights Division’s Criminal Section.
Hernandez et al Indictment
Sentencings for June 30 - July 6, 2016Read the Press Release
Aurelia Quezada-Moreno, 47, of Mexico, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 6, 2016, for conspiracy to distribute 1.5 to 5 kilograms of a mixture of substance containing a detectable amount of methamphetamine. Quezada-Moreno was arrested in Del Rio, Texas. She received 120 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $100.00 special assessment and restitution in the amount of $300.00. In addition, Quezada-Moreno will be subject to deportation upon release from custody. This case results from an ongoing Organized Crime Drug Enforcement Task Forces (OCDETF) joint investigation conducted by the Wyoming Division of Criminal Investigation and the U.S. Drug Enforcement Administration. The principal mission of the OCDETF program is to identify, disrupt and dismantle the most serious drug trafficking, weapons trafficking and money laundering organizations, and those primarily responsible for the nation’s illegal drug supply.
Kerry John Garnica, 53, of, Casper, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 6, 2016, for being a felon in possession of a firearm. Garnica was arrested in St. Paul, Minnesota. He received 30 months imprisonment, to be followed by three years of supervised release, and was ordered to pay a $500.00 fine and a $100.00 special assessment. This case was investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Robert Vance Poutre, 51, of Evansville, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on July 6, 2016, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine, for carrying a firearm during and in relation to a drug trafficking crime, and for being a felon in possession of a firearm. Poutre was arrested in Casper, Wyoming. He received 240 months imprisonment, to be followed by five years of supervised release, and was ordered to pay a $300.00 special assessment and restitution in the amount of $500.00. This case was investigated by the Wyoming Division of Criminal Investigation and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Marcos Correa, 31, of Riverside, California, was sentenced by Federal District Court Judge Alan B. Johnson on July 5, 2016, for conspiracy to distribute 500 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Correa was arrested in New Mexico. He received 151 months and 24 days of imprisonment to run concurrent to his undischarged sentence in New Mexico. In addition, Correa will be placed on supervised release for five years upon release from custody and was ordered to pay a $100.00 special assessment and restitution in the amount of $5,000.00. This case was investigated by the Cheyenne Police Department.
Bryan Kip Noyes, 55, of Price, Utah, was sentenced by Chief Federal District Court Judge Nancy D. Freudenthal on July 5, 2016, for distribution of 200 grams or more of a mixture or substance containing a detectable amount of methamphetamine. Noyes was arrested in Salt Lake City, Utah. He received 18 months imprisonment, to be followed by two years of supervised release, and was ordered to pay a $300.00 fine and a $100.00 special assessment. This case was investigated by the Wyoming Division of Criminal Investigation.
Joel Scott Elliott, 38, of Sheridan, Wyoming, was sentenced by Federal District Court Judge Scott W. Skavdahl on June 30, 2016, for attempted escape from custody. Elliott received 24 months and one day with 12 months to be served concurrently and 12 months and one day to be served consecutively to his undischarged sentence in a previous criminal matter. In addition, Elliott was ordered to pay a $100.00 special assessment and restitution in the amount of $720.20. This case was investigated by the Natrona County Sheriff’s Office and the U.S. Marshals Service.
Salvadoran National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that RENE MARTINEZ-QUIJANO, age 34, a citizen of El Salvador, was sentenced today after previously pleading guilty to a one-count Indictment for illegal entry of a removed alien.
U.S. District Judge Mary Ann Vial Lemmon sentenced MARTINEZ-QUIJANO to time served, followed by one year of supervised release, and a $100 special assessment fee. MARTINEZ-QUIJANO will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on March 1, 2016, MARTINEZ-QUIJANO was found in the United States after having been previously deported from the United States on June 27, 2014.
U.S. Attorney Polite praised the work of the Immigration and Customs Enforcement agency in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Salvadoran National Sentenced for Immigration OffenseRead the Press Release
U.S. Attorney Kenneth A. Polite announced that FRANCISCO MENDOZA-ZAVALA, age 41, a citizen of El Salvador, was sentenced today after previously pleading guilty to a one-count Indictment for illegal reentry of a removed alien.
U.S. District Judge Mary Ann Vial Lemmon sentenced MENDOZA-ZAVALA to time served, followed by one year of supervised release, and a $100 special assessment fee. MENDOZA-ZAVALA will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on March 30, 2016, MENDOZA-ZAVALA was found in the United States after having been previously deported from the United States on September 6, 2012.
U.S. Attorney Polite praised the work of United States Immigration and Customs Enforcement agents in investigating this matter. Assistant United States Attorney Jon Maestri was in charge of the prosecution.
Sacramento Man Sentenced to 8 Years in Prison for Child Exploitation OffenseRead the Press Release
SACRAMENTO, Calif. — Dean Lynn Christiansen, 70, of Sacramento, was sentenced today to eight years and one month in prison, to be followed by five years of supervised release, for receiving child pornography, Acting United States Attorney Phillip A. Talbert announced. U.S. District Judge Morrison C. England Jr. also ordered Christiansen to pay a $17,500 fine.
According to court documents, between October 14, 2010 and October 17, 2012, Christiansen used a peer-to-peer file-sharing network to search for and collect more than 790 files containing pictures and videos that depicted the sexual exploitation of children. A search warrant executed at Christiansen’s home revealed that, at various times, many of those images and videos were made available to others over the internet. The images and videos Christiansen possessed involved the portrayal of sadistic, masochistic, and other depictions of violence, and included depictions of prepubescent minors under 12 years old. On September 24, 2015, Christiansen pleaded guilty to one count of receiving child pornography.
This case was the product of an investigation by the Federal Bureau of Investigation and the Sacramento County Sheriff’s Office, Internet Crimes Against Children Task Force. Assistant United States Attorney André M. Espinosa prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute those who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. Click on the “resources” tab for information about internet-safety education.
Retired Funeral Director Sentenced for Submitting Fraudulent Claims to the Veterans AdministrationRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Karen Schlager, 60, of Snyder, NY, who was convicted of submitting false and fraudulent claims to the Department of Veterans Affairs, was sentenced to one year probation, 80 hours community service, and a $5,000 fine by U.S. District Judge Lawrence J. Vilardo. The defendant was also ordered to pay restitution totaling $14,900 to the U.S. Department of Veterans Affairs.
Assistant U.S. Attorney MaryEllen Kresse, who handled the case, stated that the defendant, who was the funeral director at Schlager Funeral Home in Amherst, submitted claims to the VA seeking payment for death benefits, including transportation costs, burial services, and funeral costs, that she knew had not provided to veterans or their families. As a result of the defendant’s actions, the VA suffered a loss of approximately $13,800.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Veterans Administration, Office of Inspector General, Criminal Investigations Division, under the direction of Special Agent-in-Charge Jeffrey G. Hughes.Redwood City Resident Pleads Guilty to Defrauding Produce Vendors of Millions of Dollars Worth of Fruits and VegetablesRead the Press Release
SAN JOSE – Remon Issa Daniel pleaded guilty in federal court late yesterday to three counts of wire fraud for his scheme to defraud produce vendors, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Special Agent in Charge John F. Bennett. The plea follows charges Daniel pretended to be employed by reputable produce companies and ordered loads of fruits and vegetables on credit, when he knew he did not have the funds to pay for the loads and had no intention of paying for them.
In pleading guilty, Daniel admitted that between 2014 and his arrest on February 25, 2016, he defrauded at least 38 different businesses of more than $1.5 million worth of fruits and vegetables. Daniel ordered produce primarily from companies in California, Arizona, and Texas, and usually claimed to be from Bay Produce, New San Jose Wholesale, or General Produce, each a genuine produce wholesaler in Northern California. In fact, Daniel had no association with any of these companies. Daniel admitted to sending some of the vendors a copy of a deposit slip as proof that he had made a payment for the product. Only after the vendor released the produce to Daniel did the vendor learn that the deposited check was returned for insufficient funds.
Daniel was indicted by a grand jury on March 10, 2016, on 14 counts of wire fraud, in violation of 18 U.S.C. § 1343. Pursuant to yesterday’s plea, Daniel has admitted he is guilty of three of the counts in the indictment and the remaining counts will be dismissed. He is currently being held in in the Santa Clara County Main Jail, pending sentencing, which is set for October 19, 2016, at 9:45 a.m., before the Honorable United States District Judge Lucy Koh. The maximum statutory penalty for a violation of 18 U.S.C. § 1343, is 20 years’ imprisonment and a fine of $250,000 or twice the gross gain or loss from the offense, plus restitution. However, any sentence following conviction would be imposed by the court after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Amber Rosen is prosecuting the case with the assistance of Susan Kreider, Yolanda Singletary, and Nina Williams. The prosecution is the result of an investigation by the Federal Bureau of Investigation.
Orangeville, Pennsylvania Man Charged with Distribution of Child PornographyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that child pornography distribution charges were filed in U.S. District Court in Scranton against Cedrick Vaughn Perkins, age 20, of Orangeville, Pennsylvania.
According to U.S. Attorney Peter Smith, Perkins is charged in a Criminal Information with distributing child pornography over the internet between January and June 2015.
Along with the Information, a plea agreement was filed in which Perkins agrees to plead guilty to the child pornography distribution charge. The plea agreement is subject to the approval of the court.
The case was investigation by Homeland Security Investigations. The case is being prosecuted by Assistant United States Attorney Todd K. Hinkley.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 20 years of imprisonment, a term of supervised release following imprisonment, and a $250,000 fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
# # #
Oklahoma City Woman Pleads Guilty to Committing Health Care Fraud and Food Stamp FraudRead the Press Release
Oklahoma City, Oklahoma – SHALONDA SUGGS, 36, of Oklahoma City, pled guilty last Thursday to health care fraud in connection with submitting false claims to Medicaid for behavioral health counseling services, announced Mark A. Yancey, Acting United States Attorney for the Western District of Oklahoma, and Scott Pruitt, Attorney General for the State of Oklahoma. Suggs also pled guilty to stealing Supplemental Nutrition Assistance Program benefits (SNAP benefits, formerly known as food stamps), which she wrongfully received based on her false statements regarding her income.
On April 5, 2016, Suggs was indicted on sixteen counts of health care fraud and one count of theft of government funds. The Indictment alleged that in July 2013, Suggs opened a behavioral health counseling agency called Focus Pointe Counseling, LLC. It is alleged Suggs obtained a contract with the Oklahoma Health Care Authority (OHCA), which allowed Focus Pointe to receive reimbursement from Medicaid for providing behavioral health counseling services to Medicaid-eligible children. It was alleged that Suggs then submitted Medicaid claims for behavioral health counseling services that were purportedly provided by four counselors supposedly employed by Focus Pointe. It was alleged that the counselors were never actually employed by Focus Pointe and never provided any of the counseling services claimed by Focus Pointe. It was alleged that the OHCA paid Focus Pointe for the false claims and that Suggs used the proceeds for her personal benefit. It is further alleged that during the time period Suggs was fraudulently receiving funds from the OHCA, she was receiving SNAP benefits by making false statements to the Oklahoma Department of Human Services that she was unemployed and had a negligible source of income.
Last Thursday, Suggs admitted that on February 4, 2015, she used Focus Pointe Counseling to submit a claim to the OHCA using the name and Medicaid provider number of certain counselor for a behavioral counseling session that was supposedly provided to a Medicaid beneficiary on August 16, 2014. Suggs admitted that the counselor was not in fact employed by Focus Pointe and that the counseling session was not actually provided. She also admitted that from August 2014 through May 2015, she was receiving SNAP benefits that she obtained by making false statements about her lack of income.
As part of her plea, Suggs agreed to pay restitution to Medicaid in the amount of $204,334.24 and to the Supplemental Nutrition Assistance Program in the amount of $4,959.00.
At sentencing, Suggs faces up to 10 years in prison, three years of supervised release, and a $250,000 fine on each count. A sentencing date will be set by the court in approximately 90 days. Reference is made to the Indictment and other public filings for further information.
Medicaid and SNAP are programs that are funded and administered jointly by the federal government and the State of Oklahoma. This case is the result of a cooperative federal and state investigation by the Federal Bureau of Investigation, the Oklahoma Attorney General’s Office, and the United States Department of Agriculture, Office of Inspector General. It is being prosecuted by Assistant U.S. Attorney Amanda Maxfield Green and Oklahoma Assistant Attorney General Lory Dewey.
Ohio psychiatrist pleads guilty to not paying more than a half-million dollars in taxesRead the Press Release
A psychiatrist from Oregon, Ohio, pleaded guilty to tax evasion for not paying more than a half-million dollars in taxes, said Carole S. Rendon, Acting United States Attorney for the Northern District of Ohio, and Kathy Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
Sandra Vonderembse, 65, pleaded guilty to attempting to evade taxation or the payment thereof from 2005 through 2013.
Vonderembse admitted that despite earning compensation in excess of $240,000 per year from 2009 through 2011 as a psychiatrist working for multiple businesses and the State of Ohio, she falsely claimed zero taxable income and zero tax owing for each of those years on federal tax returns. In tax years stretching back to 2005, Vonderembse failed to pay taxes due on her income and filed tax returns falsely claiming taxable income as “None.” From 2005 to 2011 she also had her earnings paid to nominee entities to conceal income from the IRS and sent fake financial instruments to the IRS in purported payment of her taxes, according to court documents.
Vonderembse faces a statutory maximum sentence of five years in prison. She has agreed to pay restitution to the IRS in the amount of $565,000.
The defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, and the defendant’s role in the offense and the characteristics of the violation. In all cases the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
The investigating agency in this case is the Internal Revenue Service-Criminal Investigation in Toledo. The case is being handled by Assistant United States Attorney Noah P. Hood and Department of Justice Trial Attorneys Jack Morgan and Jeffrey McLellan.
Ohio Psychiatrist Pleads Guilty to Tax EvasionRead the Press Release
An Oregon, Ohio, psychiatrist pleaded guilty to tax evasion today in the U.S. District Court for the Northern District of Ohio, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division.
Sandra Vonderembse admitted that despite earning compensation in excess of $240,000 per year from 2009 through 2011 as a psychiatrist working for multiple businesses and the state of Ohio, she falsely claimed zero taxable income and zero tax owing for each of those years on federal tax returns. In tax years stretching back to 2005, Vonderembse failed to pay taxes due on her income and filed tax returns falsely claiming taxable income as “None.” From 2005 to 2011, she also had her earnings paid to nominee entities to conceal income from the Internal Revenue Service (IRS) and sent fake financial instruments to the IRS in purported payment of her taxes.
Vonderembse faces a statutory maximum sentence of five years in prison, as well as a term of supervised release. She has agreed to pay restitution to the IRS in the amount of $565,000.
Acting Assistant Attorney General Ciraolo commended special agents of IRS - Criminal Investigation, who investigated the case and Assistant U.S. Attorney Noah Hood and Trial Attorneys Jack Morgan and Jeffrey McLellan of the Justice Department’s Tax Division, who are prosecuting the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division website.
Norwich Resident Admits Role in Insurance Fraud SchemeRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that CARLINS CALIXTE, 32, of Norwich, pleaded guilty today before U.S. District Judge Jeffrey A. Meyer in New Haven to one count of conspiracy to commit mail and wire fraud stemming from his involvement in an insurance fraud scheme.
According to court documents and statements made in court, between April 2011 and February 2014, CALIXTE and others conspired to stage approximately 50 car crashes in southeastern Connecticut for the purpose of defrauding automobile insurance companies and enriching themselves. A high percentage of these planned crashes were single-vehicle accidents on remote roads where there were no witnesses other than the occupants of the crashed vehicle. After each staged accident, the defendants filed fraudulent property damage and bodily injury claims with various automobile insurance companies. They then collected payouts on the fraudulent claims from the victim insurance companies. These payouts typically ranged from about $10,000 to about $30,000 per accident.
In pleading guilty, CALIXTE admitted his personal involvement in at least seven staged crashes. After each crash, CALIXTE either filed a fraudulent property damage or bodily injury claim with his or another participant’s automobile insurance provider, or he aided and abetted other participants in their submission of fraudulent claims.
CALIXTE were arrested on May 23 and is released on bond. He is a citizen of Haiti and a lawful permanent resident of the U.S.
Judge Meyer scheduled sentencing for September 30, 2016, at which time CALIXTE faces a maximum term of imprisonment of 20 years.
This matter is being investigated by the Federal Bureau of Investigation, the Norwich Police Department and the National Insurance Crime Bureau, with the assistance of the Mohegan Tribal Police Department. The case is being prosecuted by Assistant U.S. Attorney Avi M. Perry.
Northwest Alabama Pharmacies Owner Agrees to Plead Guilty to Obstructing Medicare AuditRead the Press Release
BIRMINGHAM – The owner of two northwest Alabama pharmacies has agreed to plead guilty to obstructing a Medicare audit and to pay a $2.5 million penalty to the government.
U.S. Attorney Joyce White Vance, FBI Special Agent in Charge Roger C. Stanton, Health and Human Services Office of Inspector General Special Agent in Charge Derrick L. Jackson, and Food and Drug Administration Office of Criminal Investigation Special Agent in Charge Robert J. West announced the charge and plea agreement today.
The U.S. Attorney’s Office for the Northern District of Alabama charged RODNEY DALTON LOGAN, 63, of Muscle Shoals, with one count of obstructing a 2012 federal audit of Medicare claims submitted by a pharmacy he owned. Logan, a registered pharmacist, owned Leighton Pharmacy Inc., which did business as Sheffield Pharmacy and Homecare in Sheffield, and Russellville Pharmacy in Russellville. At various times, according to the charge, Logan was the lead pharmacist at both Sheffield and Russellville. Prosecutors filed the charge by information in U.S. District Court, along with a plea agreement reached between Logan and the government.
“This case revolves around the falsification of documents in an effort to defraud Medicare, which exists to provide health care services for the elderly,” Vance said. “My office and our law enforcement partners are committed to ensuring the integrity of government programs and to prosecuting those who would provide false information to criminally profit from those programs.”
“Fraud undermines the financial integrity of the Medicare system and combating health care fraud remains a top priority for the FBI,” Stanton said. “This should serve as a reminder to others that the FBI and its law enforcement partners will identify, investigate and present for prosecution those individuals involved in similar activities.”
"Obstructing a Medicare audit is something the OIG takes very seriously," Jackson said. "Submitting documentation to Medicare to substantiate that tablets or capsules were utilized when, in fact, bulk pharmaceutical powders were actually used is straight-up fraud."
The Sheffield and Russellville pharmacies operated as both compounding and retail pharmacies. A compounding pharmacy is one that prepares customized medications for individual patients, usually by mixing ingredients in order to create a prescription. The two pharmacies sold compounded prescriptions to patients in Alabama and other states.
According to the information and plea agreement, Logan obstructed a 2012 audit of the Sheffield pharmacy’s claims for Medicare reimbursement on compounded prescriptions as follows:
CVS/Caremark Inc. administered prescription drug claims for Medicare Part D and served as an auditor on Medicare’s behalf. Part D prohibited reimbursement to pharmacies for compounded medications made using bulk pharmaceutical powders. Russellville and Sheffield nonetheless sought Part D reimbursement after February 2009 for compounded medications, primarily topical pain creams, made from bulk powders. The pharmacies, however, used the billing code for the tablet or capsule form of the ingredient.
In response to the 2012 audit, Logan caused Sheffield to submit falsified and misleading documents stating that medications in tablet or capsule form were used as ingredients for the compounded prescriptions.
The maximum penalty for obstructing a federal audit is five years in prison and a fine of $250,000 or twice the amount improperly gained through the defendant’s conduct.
FBI, HHS-OIG and FDA-OCI investigated the case, which Assistant U.S. Attorney Chinelo Diké-Minor and Trial Attorney William Chang of the Justice Department’s Criminal Division Fraud Section are prosecuting.
###
New Castle Man Sentenced to 77 Months in Prison for New Castle Bank RobberiesRead the Press Release
PITTSBURGH - A former resident of New Castle, Pennsylvania, has been sentenced in federal court to 77 months imprisonment, followed by three years supervised release, on charges of bank robbery. Calvin Douglas Smith was also ordered to pay restitution in the amount of $3,266.00, United States Attorney David J. Hickton announced today.
United States District Mark R. Hornak imposed the sentence on Calvin Douglas Smith, age 44, formerly of New Castle, Pennsylvania.
The court was advised that on Nov. 5, 2014, Smith robbed Huntington Bank located at 101 E. Washington St., New Castle, PA, and on Dec. 2, 2014, Smith robbed First Commonwealth Bank located at 27 E. Washington St., New Castle, PA. The banks are both insured by the Federal Deposit Insurance Corporation.
Assistant United States Attorney Cindy K. Chung prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation and the New Castle City Police Department for conducting the investigation leading to the successful prosecution of Smith.
New Bedford Man Sentenced to 11 Years for Armed Bank RobberyRead the Press Release
BOSTON – A New Bedford man was sentenced yesterday in U.S. District Court in Boston for robbing the St. Anne’s Credit Union in New Bedford in September 2013.
David Frates, 36, was sentenced by U.S. District Court Judge Richard G. Stearns to 11 years in prison, five years of supervised release and restitution of $1,098. In May 2015, Frates pleaded guilty to armed bank robbery.
On the morning of Sept. 24, 2013, a man wearing a translucent mask and hooded sweatshirt entered the St. Anne’s Credit Union in New Bedford. Once inside the bank, the man brandished what appeared to be a black semi-automatic firearm, threatened the tellers, and ordered the tellers to give him cash. The man took $1,098 in cash and fled the bank.
A few days later, the New Bedford Police Department received an anonymous tip suggesting that David Frates was involved in the robbery. During an investigation, the clothing Frates was wearing and the weapon he carried were recovered. The weapon was determined to be a BB gun. Frates was arrested and charged in January 2014.
U.S. Attorney Carmen M. Ortiz; Harold H, Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and New Bedford Police Chief Joseph C. Correiro, made the announcement. The case was prosecuted by Assistant U.S. Attorney Kenneth G. Shine of Ortiz’s Major Crimes Unit.
Navajo Woman from Gallup Sentenced for Federal Involuntary Manslaughter ConvictionRead the Press Release
ALBUQUERQUE – Clara Beth Joe, 27, an enrolled member of the Navajo Nation who resides in Gallup, N.M., was sentenced this morning in Santa Fe, N.M., to 24 months in federal prison followed by three years of supervised release for her involuntary manslaughter conviction.
Joe was arrested on Aug. 27, 2014, on an indictment filed Aug. 12, 2014, charging her with involuntary manslaughter. The indictment alleged that Joe committed the crime on Jan. 30, 2014, on the Navajo Indian Reservation in San Juan County, N.M.
On Aug. 20, 2015, Joe pled guilty to the indictment and admitted that on Jan. 31, 2014, law enforcement officers found her, heavily intoxicated and suffering from hypothermia, near a creek in Crystal, N.M., on the Navajo Indian Reservation. After inquiries were made about the whereabouts of Joe’s 13-month-old son, the officers found the child, who had drowned, closed to the area where Joe had been found. Joe admitted that her intoxication an important contributing factor in her son’s death.
The Gallup office of the FBI and the Crownpoint office of the Navajo Nation Division of Public Safety investigated the case, which was prosecuted by Assistant U.S. Attorney Paul H. Spiers.
Montgomery County Woman Convicted of Social Security FraudRead the Press Release
HOUSTON – A 67-year-old Willis woman has admitted she stole the identity of a deceased woman and used it for financial gain for nearly 20 years, announced U.S. Attorney Kenneth Magidson.
Jerrie Mona Chesney pleaded guilty today to one count of theft of public money.
In the late 1980s, Chesney read in a local newspaper about the death of a woman who had lived in the Beaumont area. Chesney contacted woman’s family and was able to obtain her personal identification information under the guise that she was an old high school friend. However, Chesney had no prior knowledge this woman. Chesney also obtained additional personal information about the deceased woman from the local funeral home who handled the burial arrangements.
Chesney took the identifying information and obtained a Texas Driver’s License and a Social Security card using the deceased woman’s name as her own.
From approximately 1995 until 2014, Chesney obtained Social Security disability benefits and supplemental Social Security benefits utilizing the name of the deceased woman. She was also able to obtain Medicare benefits and food stamp benefits using the woman’s false identification information. As a result, she received approximately $388,000 in benefits from these programs.
U.S. District Judge Lee Rosenthal accepted the plea today and set sentencing for Oct. 16, 2016. At that time, Chesney faces up to five years in federal prison and a possible maximum fine of $250,000. She will remain on bond pending that hearing.
The Social Security Administration - Office of Inspector General investigated. Assistant U.S. Attorney Quincy L. Ollison is prosecuting the case.
Monroeville Man Sentenced to 12 Years in Prison for Distributing Child PornographyRead the Press Release
PITTSBURGH - A former resident of Allegheny County, Pennsylvania, has been sentenced in federal court to 151 months imprisonment, followed by a lifetime supervised release, on a charge of distribution of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
United States District Judge Nora Barry Fischer imposed the sentence on Andrew Patterson, age 46, formerly of Monroeville, Pennsylvania.
According to information presented to the court, the court was advised that from on or about June 15, 2014, to on or about June 16, 2014, Patterson distributed videos and images containing material depicting the sexual exploitation of minors.
Assistant United States Attorney Jessica Lieber Smolar prosecuted this case on behalf of the government.
U.S. Attorney Hickton commended the Federal Bureau of Investigation, the Indiana County District Attorney’s Office, the Allegheny County District Attorney’s Office, and the Monroeville Police Department for conducting the investigation leading to the successful prosecution of Patterson.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Miranda Brakley Was Sentenced to 2 Years ProbationRead the Press Release
HAMMOND – United States Attorney for the Northern District of Indiana, David A. Capp, announced that Miranda Brakley, 36, of Lake Station, Indiana was sentenced in Hammond Federal Court for one count theft of government funds.
Brakley was sentenced to 2 years probation which includes a 6 month term of home detention. Brakley was also ordered to make restitution to the City of Lake Station in the amount of $664.00.
According to documents filed in the case, while employed by the court, Brakley embezzled approximately $16,000 from the Lake Station City Court.
This case was investigated by the Federal Bureau of Investigation and the Internal Revenue Service –Criminal Investigation Division, and resulted from an audit conducted by the Indiana State Board of Accounts. This case was handled by Assistant United States Attorney Philip C. Benson.
Mexican National Sentenced for Violation of the Federal Gun Control ActRead the Press Release
U.S. Attorney Kenneth A. Polite announced that OMAR RICO-ALMANZA, age 34, a citizen of Mexico, was sentenced today after previously pleading guilty a one-count Indictment for violations of the Federal Gun Control Act.
U.S. District Judge Carl J. Barbier sentenced RICO-ALMANZA to time served, to be followed by one year of supervised release, and a $100 special assessment. Additionally, RICO-ALMANZA will be surrendered to the custody of the U.S. Immigration and Custom Enforcement for removal proceedings.
U.S. Attorney Polite praised the work of the Homeland Security Investigations of the U.S. Department of Homeland Security, in investigating this matter. Assistant U.S. Attorney Spiro G. Latsis was in charge of the prosecution.
Merritt Island Man Convicted of Multiple Federal Child Pornography OffensesRead the Press Release
Orlando, Florida – U.S. District Judge Roy B. Dalton, Jr. has found Joshua Adam Tatro (24, Merritt Island) guilty of 9 counts of producing child pornography, 3 counts of receiving child pornography, and 1 count of possessing child pornography. He faces a mandatory minimum sentence of 15 years, up to 30 years, in federal prison for each of the production offenses. In addition, he faces a mandatory minimum sentence of 5 years, up to 20 years’ imprisonment, for each receipt offense, and up to 20 years in federal prison for the possession charge. A sentencing hearing is scheduled for October 3, 2016.
According to testimony and evidence presented at trial, on nine separate occasions between October 2014 and March 2015, Tatro produced images and videos depicting him sexually abusing a three year-old child. He also used a messaging app on his phone to send and receive images depicting child pornography, and he uploaded images of child pornography onto an online account that he maintained. Law enforcement began investigating Tatro after they learned of his online activity from the National Center for Missing and Exploited Children.
On March 17, 2015, agents from the Brevard County Sheriff’s Office executed a search warrant at Tatro’s residence, where he and the child victim were living. During the execution of the warrant, cellphones were recovered from Tatro’s pocket and his bedroom. A forensic examination of those phones led to the recovery of the explicit images and videos that Tatro had produced. During an interview with agents, Tatro admitted to producing the images and videos, and to sending them to others using the messenger app.
In total, Tatro possessed 76 videos and 692 photographs of child pornography on his cellphones. A search of his online drive account revealed more than 1,000 stored images of child pornography. Several of the images in Tatro’s possession depicted children under the age of 12 being sexually abused and exploited.
This case was investigated by the Brevard County Sheriff’s Office and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. It is being prosecuted by Assistant United States Attorney Andrew C. Searle.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Member of Brooklyn Street Gang Arrested and Charged with Racketeering, Double Homicide, Narcotics Trafficking and Unlawful Use of FirearmsRead the Press Release
A five-count indictment was unsealed today in United States District Court for the Eastern District of New York charging Frank Smith, a member of a Coney Island-based gang known variously as “Rival Impact,” “R.I.,” “Mermaids,” “Mermaid Boys,” and “33rd Street Crew,” with crimes including racketeering, murder in aid of racketeering, narcotics trafficking and unlawful use of firearms. The defendant was arraigned this afternoon before United States Magistrate Judge Lois Bloom at the federal courthouse in Brooklyn.
The charges were announced by Robert L. Capers, United States Attorney for the Eastern District of New York; Diego Rodriguez, Assistant Director-in-Charge, Federal Bureau of Investigation, New York Field Office (FBI); and William J. Bratton, Commissioner, New York City Police Department (NYPD).
As detailed in the indictment, between January 2001 and October 2014, to maintain Rival Impact’s power and hold in the Coney Island section of Brooklyn, the defendant and his gang engaged in widespread narcotics distribution and violence, including the October 4, 2010 murders of Terrance Serrano and Rashawn Washington, in addition to various attempted murders, robberies, assaults and intimidation. Serrano and Washington, who were members of a rival gang known as “Thirty-O,” were shot and killed while sitting in their car after leaving a nightclub in Manhattan.
“As alleged, for years the defendant and other members of this violent Brooklyn street gang have plagued neighborhoods throughout Coney Island and elsewhere with drugs and violence. Today’s charges send the clear message that violence by and among street gangs will not be tolerated. We will use all available resources to hold accountable those who endanger the lives and well-being of the residents of our communities,” stated United States Attorney Capers.
“Street gangs have an impact on the communities in which they operate. They spread fear and violence so they can control their so called turf; and for them murder just comes with the territory. But the FBI and our law enforcement partners won’t accept any crime as a new normal, and we won’t stop pursuing gang members,” said FBI Assistant Director-in-Charge Rodriguez.
“We are hopeful that today’s indictment is a milestone along the path to this individual’s conviction,” said NYPD Commissioner Bratton. “The defendant, as alleged, terrorized Coney Island and other parts of the City by selling illegal narcotics, murdering members of a rival gang and using violence and intimidation to achieve his criminal objectives.”
The charges are merely allegations, and the defendant is presumed innocent unless and until proven guilty. If convicted of the charges in the indictment, Smith faces a maximum sentence of life imprisonment.
The government’s case is being prosecuted by the Office’s Organized Crime and Gangs Section. Assistant United States Attorney Maria Cruz Melendez is in charge of the prosecution.
The Defendant:
FRANK SMITH
Age: 31
Staten Island, New YorkEDNY Docket No. 16-CR-346
Lowell Man Sentenced for $440,000 Embezzlement SchemeRead the Press Release
BOSTON – A Lowell man was sentenced today in U.S. District Court in Boston in connection with the theft of more than $440,000 from a Spain-based seafood and fish distributor for which he served as the United States representative.
Jorge Manuel Silva, 59, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to 15 months in prison, two years of supervised release and restitution of $440,398. In March 2016, he pleaded guilty to two counts of bank fraud.
Silva was an independent contractor for Seaport Fish Co., a corporation established to distribute fish and seafood in the United States by Freiremar Group, headquartered in Spain. Silva was responsible for coordinating sales to Seaport customers, collecting customer payments, and depositing those payments into Seaport’s account at Bank of America. From July 2008 through June 2010, Silva instead diverted more than $903,000 in Seaport customer checks to two accounts he held at Enterprise Bank in Lowell.
On occasion, Silva reimbursed Seaport with checks drawn on his Enterprise accounts several weeks or months after he had deposited the customer checks into those accounts. On other occasions, he used Seaport funds to pay personal expenses and the expenses for his other businesses. In this fashion, Silva diverted $440,398 of Seaport funds to his own uses.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Sandra S. Bower of Ortiz’s Economic Crimes Unit.
Louisville Based MD2U, a Regional Provider of Home-Based Care, and Its Principal Owners Admit to Violating the Federal False Claims Act and Being Liable for MillionsRead the Press Release
Knowingly Presented False Claims and Altered Records to Get False Claims Paid Will Pay Millions to Settle Allegations
MD2U Holding Company, including its related companies and individually named owners, have agreed to pay millions to resolve a government lawsuit alleging that they violated the federal False Claims Act by knowingly submitting false medical claims to Medicare and other government health care programs, altering records to support false claims and providing services that were medically unnecessary, announced U.S. Attorney John E. Kuhn Jr. for the Western District of Kentucky
“Unfortunately, our healthcare system is under assault from a small minority of providers who engage in fraudulent billing, overbilling and providing unnecessary services,” said U.S. Attorney Kuhn. “In an effort to control these losses and force accountability, my office and the Department of Justice pursues and recovers false and fraudulent billings as one of its highest priorities. This significant case against MD2U is but one example of the vigorous work against healthcare fraud taking place in the Western District and across the nation.”
“This provider billed for medically unnecessary home visits and often grossly exaggerated the level of service provided,” said Special Agent in Charge Derrick L. Jackson for the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) in Atlanta. “The OIG is committed to protecting the integrity of federal health care programs by aggressively pursuing entities that increase their revenue through deceitful schemes and trickery.”
The government’s complaint alleged that between July 1, 2007, and Nov. 30, 2014, MD2U submitted false billings for patients who were neither homebound nor home-limited; improperly billed the government for medically unnecessary visits; billed government health care programs at the highest payment codes (upcoding) when a lower code would have been more appropriate; and cloned medical records (a cut, copy, paste electronic program) in order to justify patient visits. Specifically, the government’s complaint alleged that MD2U’s schemes included the following:
- MD2U required non-physician providers (NPPs) to document that patients were homebound or home-limited and indicate in the medical record that an outpatient visit would jeopardize the patient’s health, regardless as to whether this was true or not. A number of MD2U patients were neither homebound nor home-limited, as some patients worked outside the home, attended school outside the home, drove independently, routinely saw other providers in the office and in at least one case, went horseback riding.
- MD2U would require NPPs to perform medically unnecessary visits and improperly bill Government Health Care Programs for evaluation and management (E&M) visits in order to generate revenue. Management instructed NPPs to schedule patient visits more frequently than necessary in order to increase productivity.
- According to a review of Medicare claims submitted by MD2U between July 1, 2007, and Nov. 30, 2014, 98 percent were falsely billed to Medicare. NPPs’ patient visits would often last less than ten minutes with some lasting less than five minutes (and in at least one reviewed case – 34 seconds), but these encounters were billed as comprehensive medical visits and billed at the highest level E&M code possible. The American Medical Association’s guidelines for these codes indicate that practitioner’s using the codes billed by MD2U should be performing comprehensive medical exams and should typically spend 60 minutes face-to-face with the patient, family member or caregiver.
- Management trained NPPs to bill all visits using the highest level E&M code available.
- MD2U also utilized an electronic medical records (EMR) system that permitted the NPPs to easily electronically cut, copy and paste medical notes from prior visits. The ability to migrate notes from visits that occurred weeks, months, or even years prior to the current patient encounter created the illusion that MD2U’s NPPs were performing a significant amount of work during their patient encounters when, in fact, they were not. If the documentation was deficient to bill the highest level code, MD2U would direct NPPs to go back and change the medical record – after the encounter had occurred – to falsely show that more work was performed during the visit in order to support the highest level billing.
Through a stipulation and order to be entered by the court, the defendants have admitted that they violated the False Claims Act, 31 U.S.C. §§ 3729-3733, by (a) making or causing others to make false statements and (b) submitting or causing others to submit false claims to the United States. The defendants admit that these actions caused damages and that they are liable to the United States in the amount of $21,511,756 under the False Claims Act (which allows for damages in the amount of three times the government’s loss, plus penalties).
Further, in the consent judgment to be entered by the court, defendants J. Michael Benfield, Chief Executive Officer and President of MD2U; Greg Latta, Chief Information Officer; and Karen Latta, Chief Operations Officer, all owners, residing in Louisville, Kentucky, admit that, due in part to the actions of a former employee, they caused the submission of false claims to the United States in violation of the False Claims Act. They further admit that the submission of the claims for payment caused these damages as a result of misrepresentations, false representations and/or deceptive conduct; that it was done with reckless disregard of the falsity of the claims; and in doing so, caused the United States to be deceived.
Through the terms of the stipulation and order, the defendants can fulfill their obligations to pay the consent judgment by paying $3.3 million and a percentage of MD2U’s net income over the next five years. The defendants have also agreed to enter into a five year corporate integrity agreement with HHS-OIG.
The settlement announced today illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $27.1 billion through False Claims Act cases, with more than $17.1 billion of that amount recovered in cases involving fraud against federal health care programs. Tips and complaints from all sources about potential fraud, waste, abuse and mismanagement, including the conduct described in the United States’ complaint, can be reported to the Department of Health and Human Services, at 1-800-HHS-TIPS (1-800-447-8477).
This matter was handled by Assistant U.S. Attorney Benjamin S. Schecter with the U.S. Attorney’s Office for the Western District of Kentucky, HHS-OIG; Defense Criminal Investigative Services; and the Railroad Retirement Board, Office of the Inspector General.
The case is captioned United States v. MD2U Holding Company et al., Case No. 3:16-cv-00440-GNS
Louisville Based MD2U, A Regional Provider of Home-Based Care, and Its Principal Owners Admit to Violating the Federal False Claims Act and Being Liable for MillionsRead the Press Release
Knowingly presented false claims and altered records to get false claims paid
Will pay millions to settle allegations
LOUISVILLE, KY – MD2U Holding Company, including its related companies and individually named owners (“Defendants”), have agreed to pay millions to resolve a government lawsuit alleging that they violated the federal False Claims Act by knowingly submitting false medical claims to Medicare and other government health care programs, altering records to support false claims, and providing services that were medically unnecessary U.S. Attorney John E. Kuhn, Jr. today announced.
"Unfortunately, our healthcare system is under assault from a small minority of providers who engage in fraudulent billing, overbilling, and providing unnecessary services," stated U.S. Attorney Kuhn. "In an effort to control these losses and force accountability, my office and the Department of Justice pursues and recovers false and fraudulent billings as one of its highest priorities. This significant case against MD2U is but one example of the vigorous work against healthcare fraud taking place in the Western District and across the nation."
"This provider billed for medically unnecessary home visits and often grossly exaggerated the level of service provided," said Derrick L. Jackson, Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "The OIG is committed to protecting the integrity of federal health care programs by aggressively pursuing entities that increase their revenue through deceitful schemes and trickery.”
The government’s complaint alleged that between July 1, 2007, and November 30, 2014, MD2U submitted false billings for patients who were neither homebound nor home-limited; improperly billed the government for medically unnecessary visits; billed government health care programs at the highest payment codes (upcoding) when a lower code would have been more appropriate; and cloned medical records (a cut, copy, paste electronic program) in order to justify patient visits. Specifically, the government’s complaint alleged that MD2U’s schemes included the following:
-
MD2U required nonphysician providers (NPPs) to document that patients were homebound or home-limited and indicate in the medical record that an outpatient visit would jeopardize the patient’s health, regardless as to whether this was true or not. A number of MD2U patients were neither homebound nor home-limited, as some patients worked outside the home, attended school outside the home, drove independently, routinely saw other providers in the office, and in at least one case, went horseback riding.
-
MD2U would require NPPs to perform medically unnecessary visits and improperly bill Government Health Care Programs for evaluation and management (E&M) visits in order to generate revenue. Management instructed NPPs to schedule patient visits more frequently than necessary in order to increase productivity.
-
According to a review of Medicare claims submitted by MD2U between July 1, 2007, and November 30, 2014, 98 percent were falsely billed to Medicare. NPPs’ patient visits would often last less than ten minutes with some lasting less than 5 minutes (and in at least one reviewed case – 34 seconds), but these encounters were billed as comprehensive medical visits and billed at the highest level E&M code possible. The American Medical Association’s guidelines for these codes indicate that practitioner’s using the codes billed by MD2U should be performing comprehensive medical exams and should typically spend 60 minutes face-to-face with the patient, family member or caregiver.
-
Management trained NPPs to bill all visits using the highest level E&M code available.
-
MD2U also utilized an electronic medical records (EMR) system that permitted the NPPs to easily electronically cut, copy and paste medical notes from prior visits. The ability to migrate notes from visits that occurred weeks, months, or even years prior to the current patient encounter created the illusion that MD2U’s NPPs were performing a significant amount of work during their patient encounters when, in fact, they were not. If the documentation was deficient to bill the highest level code, MD2U would direct NPPs to go back and change the medical record – after the encounter had occurred – to falsely show that more work was performed during the visit in order to support the highest level billing.
Through a Stipulation and Order to be entered by the Court, the Defendants have admitted that they violated the False Claims Act, 31 U.S.C. §§ 3729-3733, by (a) making or causing others to make false statements and (b) submitting or causing others to submit false claims to the United States. The Defendants admit that these actions caused damages and that they are liable to the United States in the amount of $21,511,756 under the False Claims Act (which allows for damages in the amount of three times the government’s loss, plus penalties).
Further, in the Consent Judgment to be entered by the Court, defendants J. Michael Benfield, Chief Executive Officer and President of MD2U; Greg Latta, Chief Information Officer; and Karen Latta, Chief Operations Officer, all owners, residing in Louisville, admit that, due in part to the actions of a former employee, they caused the submission of false claims to the United States in violation of the False Claims Act. They further admit that the submission of the claims for payment caused these damages as a result of misrepresentations, false representations, and/or deceptive conduct; that it was done with reckless disregard of the falsity of the claims; and in doing so, caused the United States of America to be deceived.
Through the terms of the Stipulation and Order, the Defendants can fulfill their obligations to pay the Consent Judgment by paying $3.3 million and a percentage of MD2U’s net income over the next five years. The Defendants have also agreed to enter into a five year Corporate Integrity Agreement with the Department of Health and Human Services, Office of Inspector General.
The settlement announced today illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $27.1 billion through False Claims Act cases, with more than $17.1 billion of that amount recovered in cases involving fraud against federal health care programs. Tips and complaints from all sources about potential fraud, waste, abuse, and mismanagement, including the conduct described in the United States’ complaint, can be reported to the Department of Health and Human Services, at 800-HHS-TIPS (800-447-8477).
This matter was handled by Assistant United States Attorney Benjamin S. Schecter with the U.S. Attorney’s Office for the Western District of Kentucky, the Department of Health and Human Services, Office of Inspector General; Defense Criminal Investigative Services; and the Railroad Retirement Board, Office of the Inspector General.
The case is captioned United States v. MD2U Holding Company et al., Case No. 3:16-cv-00440-GNS.
-
Lewiston Man Sentenced to 7 Years for Trafficking Heroin, Oxycodone, Crack and Cocaine and Possessing Firearms During the Drug TraffickingRead the Press Release
Contact: Daniel J. Perry
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: Matthew Mennealy, 34, of Lewiston, Maine, was sentenced yesterday by United States District Judge George Z. Singal for his involvement in distributing heroin, oxycodone, crack and cocaine and possessing firearms while drug trafficking. Mennealy received a sentence of 84 months in prison to be followed by 3 years of supervised release for these crimes.
According to Court records, in December 2014, agents stopped a vehicle in which Mennealy was a passenger. The agents subsequently searched the vehicle and located cocaine base, oxycodone pills, heroin, and a loaded 22 caliber handgun which had a live round in the chamber.
Agents later sought and obtained a search warrant for Mennealy’s residence. The subsequent search of the residence revealed a bin hidden in the basement ceiling that contained 46 grams of cocaine base, 79 grams of cocaine, 59 grams of heroin, and 106 oxycodone 30 mg. pills. The agents discovered a loaded pistol secreted under a pillow in the master bedroom and a loaded handgun in the kitchen next to a surveillance system.
Mennealy was charged with the drug trafficking crimes and possessing firearms in relation to those drug crimes in June 2015. Mennealy pleaded guilty to those charges on January 26, 2016.
This case results from a collaborative investigation conducted by the U.S. Drug Enforcement Administration and the Maine Drug Enforcement Agency.
KC Man Sentenced to 30 Years for Drug Trafficking, Money Laundering ConspiraciesRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Kansas City, Mo., man has been sentenced in federal court for his role in conspiracies to distribute methamphetamine in Jackson County, Mo., and to engage in money laundering.
Travis Ybarra, also known as “HoodNutt,” 27, of Kansas City, was sentenced by U.S. Chief District Judge Greg Kays on Wednesday, July 6, 2016, to 30 years in federal prison without parole.
On Aug. 28, 2015, Ybarra was found guilty of participating in a conspiracy to distribute methamphetamine from Jan. 1, 2009, to Dec. 11, 2012. Ybarra was also found guilty of participating in a money-laundering conspiracy that involved proceeds of drug trafficking.
Ybarra was found responsible for the distribution of more than 15 kilograms of methamphetamine. During the conspiracy, he made concerted efforts to threaten and locate for retribution individuals he believed owed him money and had cheated one of his drug dealers. He was recorded on telephone intercepts making threats.
Ybarra fled from law enforcement and discarded a firearm and methamphetamine. At the time of his arrest Ybarra was in possession of a firearm, ammunition and a Taser (along with drugs and drug trafficking items such as a money counter). His pre-trial release was revoked for fleeing from the police at such a high rate of speed that his car went airborne, and for being in possession of a semi-automatic assault-style rifle with four magazines and 119 rounds of ammunition and a 9mm handgun with 14 rounds.
In July 2011, the Jackson County Drug Task Force began an investigation into a drug-trafficking organization distributing methamphetamine in the Kansas City, Mo., area. Ybarra and co-defendant John Martinez, also known as “Whisper,” of Kansas City, Mo., were partners who supplied methamphetamine to mid-level distributers, who then sold the methamphetamine to others.
Martinez was sentenced on Feb. 10, 2015, to 12 years and six months in federal prison without parole, after pleading guilty to the same charges.
This case was prosecuted by Assistant U.S. Attorneys Bruce Rhoades and Adam Caine. It was investigated by the Drug Enforcement Administration, the Independence, Mo., Police Department, the Jackson County Drug Task Force and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
KC Man Pleads Guilty to Child Porn After Attempting to Meet Two Minors for SexRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Kansas City, Mo., man pleaded guilty in federal court today to distributing child pornography following an undercover operation in which he attempted to meet two minor girls for sex.
Daniel C. Irwin, 38, of Kansas City, pleaded guilty before U.S. District Judge Roseann Ketchmark to the charge contained in an Aug. 27, 2014, federal indictment.
By pleading guilty today, Irwin admitted that he distributed a video of child pornography over the Internet on July 21, 2014. Irwin was an assistant vice president of accounting at State Street in Kansas City at the time of the offense.
Irwin admitted that he sent the child pornography video to an undercover detective with the Kansas City, Mo., Police Department. Irwin met with the undercover detective and attempted to exchange incest pornography for the opportunity to have sex with the undercover detective’s two minor daughters (ages 12 and 16). Irwin sent additional videos of child pornography to the undercover detective on Aug. 4, 2014.
Under federal statutes, Irwin is subject to a mandatory minimum sentence of five years in federal prison without parole, up to a sentence of 20 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Patrick D. Daly. It was investigated by the Kansas City, Mo., Police Department and the FBI.
Project Safe Childhood
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc . For more information about Internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
Justice Department Announces Settlement Agreement with Seattle Cancer Care Alliance over Pharmacy Control FailuresRead the Press Release
WASHINGTON - The Department of Justice announced today that it has reached a settlement with Seattle Cancer Care Alliance (SCCA) relating to losses of more than 96,000 pills of oxycodone between 2011 and 2013. SCCA self-reported the diversions after discovering that a nurse employed at the cancer care center had used falsified and altered prescriptions to divert oxycodone from SCCA’s on-site pharmacy. The nurse conducted the scheme by drafting prescriptions for patients who were formerly receiving care at the center, obtaining physician signatures on those prescriptions, and then altering the prescriptions to reflect higher quantities and doses before transmitting them to the on-site pharmacy to be filled. The nurse would then pick up the controlled substances from the pharmacy under the guise that she was doing so as a service to the patient. Once her scheme was discovered, SCCA terminated the nurse’s employment. She subsequently took her own life.
“In our efforts to combat unlawful uses of prescription drugs we depend on the vigilance of pharmacists to closely monitor and enforce the controlled system of distribution,” said First Assistant, Helen J. Brunner. “This case reflects the Justice Department’s commitment to use all of the enforcement tools at our disposal to ensure that highly-abused substances are provided to patients under the supervision of their doctors and not leaked to the illicit drug trade.”
The investigation by the Department of Justice, in partnership with the Drug Enforcement Administration, determined that SCCA’s pharmacists violated the Controlled Substances Act when they dispensed controlled substances to the nurse who was conducting the fraud. Specifically, DOJ found that that the pharmacists were not acting in the “usual course of their professional practice” when they failed to take steps to verify that the high-dose, high-quantity painkillers “prescribed” were appropriate for the patients purportedly receiving them, based upon each patient’s prior prescription history. In fact, many of the former patients whose identities were used in the scheme were “opiate naïve.” Had these individuals actually received and taken the high-quantity, high-dose oxycodone filled in their names, they could have been harmed as a result.
The scheme carried out by the nurse was first uncovered in 2013, when a former patient at SCCA was injured on the job and was given a legitimate prescription for pain medication. Washington State’s Department of Labor and Industries denied the claim because the state Prescription Monitoring Program indicated the patient was already receiving high strength pain medication from SCCA. When the patient disputed receipt of such medications, workers with L&I alerted SCCA, which launched the internal investigation and uncovered the fraud. Since its discovery, SCCA has notified all the affected patients about the fraud.
Under the settlement reached July 7, 2016, SCCA admits no law violation, wrongdoing or misconduct but agreed, among other things to: (1) require its pharmacists to consult with the prescriber, or take other reasonable steps, to confirm the prescription’s appropriateness and veracity whenever there are signs that a prescription for a controlled substance is not appropriate for the patient to whom it is prescribed based upon the patient’s prior prescription history; (2) add an entry regarding the nurse’s fraud in the SCCA prescription and clinic records for each of the patients whose identities were used for the false prescriptions; and (3) pay the United States $250,000.
The Drug Enforcement Administration monitors pharmacy prescribing practices to ensure compliance with federal law. Pharmacies found in violation face escalating penalties up to the revocation of their DEA Registration number which allows them to write prescriptions for controlled substances.
The case was litigated by Assistant U.S. Attorney Christina Fogg in the U.S. Attorney’s Office for the Western District of Washington.
settlement_agreement_fully_executed_2.pdf
Joint Investigation Takes Down Willimantic Drug Trafficking RingRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, Patricia Froehlich, Connecticut State’s Attorney for the Judicial District of Windham, Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, and Cpl. Stanley Parizo, Jr. of the Willimantic Police Department today announced that a federal grand jury in New Haven returned an indictment today charging nine men with distributing heroin, cocaine and crack cocaine in and around Willimantic.
As alleged in court documents and statements made in court, in October 2015, the DEA and Willimantic Police Department, with the assistance of the Connecticut State Police, initiated an investigation into a Willimantic-based narcotics trafficking ring. The investigation, which has included the use of confidential informants, physical surveillance, controlled purchases of drugs and court authorized wiretaps on five cellular telephones utilized by the alleged co-conspirators, revealed that JOSE MIRANDA of the Bronx, New York, was supplying large quantities of heroin and cocaine to CARLOS LOPEZ-ZELADA of Willimantic and PERSIO HERNANDEZ of North Windham. LOPEZ-ZELADA and HERNANDEZ, with the help of other co-conspirators, then distributed heroin, cocaine and crack cocaine in the Willimantic area. The investigation further revealed that LOPEZ-ZELADA utilized a garage unit located on Willimantic Road in Chaplin as a stash location and point of distribution for narcotics.
The indictment charges the following nine defendants with conspiracy to possess with intent to distribute, and to distribute, heroin, cocaine and cocaine base (“crack”):
JOSE MIRANDA, a.k.a. “Omar,” 51, of the Bronx, N.Y.
CARLOS ALBERTO LOPEZ-ZELADA, a.k.a. “Willi Mexico,” 39, of Willimantic
RAFAEL GUERRERO-OLEA, a.k.a. “Rafi,” 45, of Chaplin
PERSIO HERNANDEZ, 47, of North Windham
ALBERTO DEJESUS-ROSADO, 30, of Willimantic
JOSE APONTE, 35, of North Windham
JOSE LIZARDO-OLEA, 31, of Willimantic
ANDRES SOLIS, a.k.a. “Shorty” and “Andresito,” 23, of North Windham
RENSO JIMINEZ-JEREZ, a.k.a. “Matrella,” 35, of North WindhamThe indictment also charges LOPEZ-ZELADA and GUERRERO-OLEA with possession with intent to distribute heroin.
On June 23, 2016, MIRANDA was arrested on a federal criminal complaint. It is alleged that MIRANDA was arrested before the investigation had reached its natural conclusion because he was intercepted threatening to shoot a co-conspirator who refused to pay him for a quantity of heroin that MIRANDA had provided to the individual on consignment. MIRANDA has been detained since his arrest.
Seven defendants were arrested yesterday on federal criminal complaints and are also detained. JIMINEZ-JEREZ is being sought by law enforcement.
In association with the arrests of the defendants, law enforcement officers seized suspected heroin, cocaine and crack cocaine, as well as a shotgun, from a North Windham residence shared by HERNANDEZ, SOLIS and JIMINEZ-JEREZ.
If convicted, the defendants face a maximum term of imprisonment of 20 years and a fine of up to $1 million on each count of the indictment.
“We are committed to using federal law enforcement resources to battle the opioid epidemic in Connecticut, and this investigation was funded in part with money received through the Justice Department’s National Heroin Strategic Initiative,” said U.S. Attorney Daly. “I congratulate the Windham State’s Attorney’s Office, DEA, Willimantic Police Department and Connecticut State Police for taking down this trafficking ring and slowing the flow of these deadly drugs into eastern Connecticut.”
“I am always impressed by what we achieve when we all work together,” said Windham State’s Attorney Patricia Froehlich. “The criminal justice system functions effectively only when various agencies work in cooperation with each other, and that is what happened in this case. I appreciate the efforts of all involved.”
“Those suffering from the disease of heroin addiction need access to treatment and recovery,” said DEA Special Agent in Charge Ferguson. “But, those responsible for distributing lethal drugs like heroin and fentanyl in the neighborhoods of Willimantic and throughout Connecticut need to be held accountable for their actions. In response to the ongoing opioid epidemic, DEA and its federal, state and local partners are committed to bringing to justice those that distribute this poison.”
“We are pleased with these arrests and narcotics seizures,” said Cpl. Stanley Parizo, Jr. of the Willimantic Police Department. “This has been an ongoing effort to combat narcotics trafficking within the City of Willimantic. The cooperative efforts of our federal law enforcement partners, the Willimantic Criminal Investigation Division, Willimantic SWAT team and all three city K9 teams made this a great success.”
U.S. Attorney Daly stressed that an indictment is not evidence of guilt. Charges are only allegations, and each defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt.
This matter is being prosecuted by Assistant U.S. Attorneys Patrick Caruso, Amy Brown, and David Nelson, and Assistant State’s Attorney Matthew Crocket.
Johnston Resident Charged with Drug Trafficking, Money LaunderingRead the Press Release
PROVIDENCE, R.I. – Juan G. Catala, 41, of Johnston, made an initial appearance in U.S. District Court in Providence today on charges he allegedly trafficked oxycodone and marijuana, and that he allegedly laundered the proceeds of his drug trafficking activities, announced United States Attorney Peter F. Neronha and Jeffrey Ebersole, Special Agent in Charge of the U.S. Food and Drug Administration Office of Criminal Investigations (FDA OCI).
Catala is charged by way of a federal criminal complaint with one count each of distribution of oxycodone, possession with the intent to distribute marijuana and money laundering.
According to information presented to the court, between January 2016 and March 2016, an individual assisting law enforcement in the investigation of Catala’s alleged drug trafficking activities allegedly made at least four purchases of oxycodone tablets from Catala. Each of the purchases, ranging between 39 and 87 oxycodone tablets, were electronically monitored by law enforcement. It is alleged that, at Catala’s direction, most of the cash payment for each alleged transaction was made directly into a bank account established by Catala.
On July 6, FDA OCI agents executed a court authorized search of Catala’s residence where they discovered and seized 70 pounds of marijuana, in excess of $10,000 in cash and several empty prescription bottles which previously contained oxycodone tablets. Agents seized an additional $1,500 in cash from Catala’s vehicle.
A criminal complaint is merely an allegation 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. Catala, who has been detained since his arrest, was ordered released on $10,000 unsecured bond with electronic monitoring following his initial appearance in U.S. District Court.
The case is being prosecuted by Assistant U.S. Attorney Ronald R. Gendron.
United States Attorney Peter F. Neronha acknowledges and thanks the Rhode Island State Police, DEA, and the Johnston and Middletown Police Departments for their assistance in this matter.
###
Contact:
Jim Martin (401) 709-5357
email: [email protected]
Jefferson Parish Woman Charged with Defrauding Local BusinessRead the Press Release
U.S. Attorney Kenneth A. Polite announced that TRACY NICHELSON, age 42, a resident of Metairie was charged today in a Bill of Information with one count of bank fraud.
According to the Bill of Information, NICHELSON worked as an assistant of rental management for a New Orleans real estate business. From June 2012 until July 2013, NICHELSON embezzled $16,418 from her employer. NICHELSON issued approximately 13 unauthorized checks to herself and others by forging the signature of the business’s owner.
If convicted, NICHELSON faces up to thirty years imprisonment and up to a $1,000,000 fine as well as restitution for the money embezzled.
U.S. Attorney Polite reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the U.S. Postal Inspection Service in investigating this matter. Assistant United States Attorney Julia K. Evans is in charge of the prosecution.
Jacksonville Man Pleads Guilty to Advertising for Child PornographyRead the Press Release
Jacksonville, Florida – United States Attorney A. Lee Bentley, III announces that Chad Jason Lansford (31, Jacksonville) has pleaded guilty to advertising for child pornography. He faces a minimum mandatory penalty of 15 years, up to 30 years, in federal prison. Lansford has been in federal custody since his arrest on March 12, 2015.
According to court documents, in January 2015, law enforcement officers responded to a complaint involving the mother of a nine-year-old girl who had found several sexually explicit images on her daughter’s social media account, including two images of her daughter. A review of the child’s iPod revealed online conversations between the girl and an individual later identified as Lansford. Further investigation revealed that on January 2, 2015, Lansford had sent the child images of his genitalia. During an online conversation that day, Lansford was advised that the child was nine years old. Despite this knowledge, he repeatedly requested that she take pornographic pictures of herself and send them to him. Eventually, the child complied with Lansford’s demands and produced and sent pornographic pictures of herself to him.
On March 12, 2015, law enforcement officers executed a federal search warrant at Lansford’s apartment. He was at the residence and admitted that he was the person who had engaged in the online conversations with the child.
This case was investigated by the Federal Bureau of Investigation and the Jacksonville Sheriff’s Office. It is being prosecuted by Assistant United States Attorney D. Rodney Brown.
It is another case brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Inmates Charged with Orchestrating Mail and Wire Fraud Scheme from Federal PrisonRead the Press Release
Four individuals have been charged in connection with a fraud scheme orchestrated from the Federal Detention Center in Miami, Florida.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Katherine Fernandez Rundle, State Attorney for Miami-Dade County, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, Scott Israel, Sheriff, Broward Sheriff’s Office (BSO), and Mark Overton, Chief, Bal Harbour Police Department, made the announcement.
James Sabatino, 39, of Miami, George Duquen, 53, of Davie, Valerie Kay Hunt, 53, of Davie, and Denise Siksha Lewis, 35, of North Lauderdale, were charged by indictment with conspiracy to commit mail and wire fraud, mail fraud, and wire fraud, in violation of Title 18, United States Code, Sections 1349, 1341, and 1343.
During the course of the alleged conspiracy, Sabatino and Duquen were incarcerated together at the Federal Detention Center in Miami, Florida. According to publicly filed court documents, Sabatino created several e-mail addresses for the purpose of impersonating employees of Sony Music Entertainment, a recorded music company.
Using the alias “James Prolima,” Sabatino contacted several luxury store employees and brand representatives via telephone calls, e-mails, and text messages. During those communications, Sabatino pretended to be an employee of Sony Music Entertainment and RocNation, a recorded music company founded by a prominent recording artist.
According to the indictment, Sabatino requested that the luxury store employees and brand representatives send retail items such as handbags, wristwatches, apparel, and jewelry to various locations in South Florida. Sabatino claimed the retail items would be featured in music videos and promotional materials that were being filmed and produced in Miami, Florida.
According to court records, Sabatino directed luxury store employees and brand representatives to ship the retail items to co-defendants Hunt and Lewis. From prison, Sabatino and co-defendant Duquen directed Hunt and Lewis to sell the items at South Florida pawn shops and elsewhere.
Mr. Ferrer commended the investigative efforts of the FBI, BSO, and the Bal Harbour Police Department. This case is being prosecuted by Assistant United States Attorney Christopher Browne.
An indictment is only an accusation and a defendant is presumed innocent unless and until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
- Indictment in U.S. v. Norman Seabrook and Murray Huberfeld
- Indictment in U.S. v. James Grant, Michael Harrington, Jeremy Reichberg
Hudson County Man Sentenced to Five Years in Prison for Role in $13 Million Mortgage Fraud SchemeRead the Press Release
CAMDEN, N.J. – A Hudson County, New Jersey, man was sentenced today to 60 months in prison for his role in a $13 million mortgage fraud scam that used phony documents and “straw buyers” to make illegal profits on overbuilt condos in Wildwood and Wildwood Crest, New Jersey, U.S. Attorney Paul J. Fishman announced.
John Leadbeater, 59, of Kearny, New Jersey, previously pleaded guilty before U.S. District Judge Jerome B. Simandle to a superseding indictment charging him with conspiracy to commit wire fraud. Judge Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Leadbeater and his conspirators located condominiums overbuilt by financially distressed developers in Wildwood and Wildwood Crest, New Jersey. They then recruited “straw buyers” from New Jersey, New York, Ohio, Arkansas, and California, to purchase those properties. The straw buyers had good credit scores, but lacked the financial resources to qualify for the mortgage loans. The conspirators created false documents, including loan applications that contained fraudulent financial and employment information, to make the straw buyers appear more credit-worthy and induce the lenders to make the loans.
Once the loans were approved, Leadbeater and his conspirators created and signed fraudulent closing documents in order to induce the mortgage lenders to send the loan proceeds in connection with real estate closings on the properties. Once the mortgage lenders sent the loan proceeds, Leadbeater and his conspirators took a portion of the proceeds, having funds wired or checks deposited into various accounts they controlled. They also distributed a portion of the proceeds to the other members of the conspiracy for their respective roles.
Leadbeater admitted to personally participating in fraudulent activity related to nine properties in Wildwood and Wildwood Crest. He admitted causing mortgage lenders to fund $4,711,557 worth of mortgages based on the bogus loan applications and closing documents prepared by him and his conspirators.
In addition to the prison term, Judge Simandle sentenced Leadbeater to five years of supervised release. A restitution hearing has been set for July 28, 2016.
U.S. Attorney Fishman credited special agents from the FBI’s Atlantic City Resident Agency, under the direction of Special Agent in Charge Timothy Gallagher in Newark; and special agents of IRS-Criminal Investigation in Mays Landing, under the direction of Special Agent in Charge Jonathan D. Larsen in Newark, for the investigation leading to today’s sentencing.
The government is represented by Assistant U.S. Attorneys Jacqueline M. Carle and Matthew T. Smith of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Thomas J. Cammarata Esq. and Jeffrey Garrigan Esq., Jersey City