Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
Wednesday 18 May 2016
Scottsville Man Pleads Guilty to Federal Drug ChargeRead the Press Release
LYNCHBURG, VIRGINIA – A Scottsville man pled guilty today to a drug trafficking charge in the United States District Court for the Western District of Virginia in Lynchburg, announced United States Attorney John P. Fishwick Jr.
Jermaine Ayers, 35, of Scottsville, Virginia, pled guilty today to one count of possessing with the intent to distribute and distributing crack cocaine.
“We will continue to be vigilant in working with our partners in law enforcement to rid our communities of illegal drugs,” United States Attorney John P. Fishwick Jr. said today. “Keeping our communities free from abusive drugs is paramount to improving community safety.”
Ayers faces a maximum statutory penalty of up to 20 years in prison and/or a fine of up to $1 million. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors.
The investigation of the case was conducted by the Drug Enforcement Administration. Assistant United States Attorney Christopher Kavanaugh prosecuted the case for the United States.
Schaumburg Contractor Charged with Underpaying Union Employees and Underfunding Their Pension and Welfare FundsRead the Press Release
CHICAGO — The owner of a Schaumburg construction company intentionally underpaid his union-affiliated employees by more than $1.5 million while underfunding their pension and welfare funds by another $1 million, according to federal criminal charges filed today.
JOSEPH LAMPIGNANO, the co-owner of A Lamp Concrete Contractors Inc., assigned laborers to work on government-funded road construction projects without paying the union-negotiated wage rate, according to a criminal information filed in U.S. District Court in Chicago. From approximately 2008 to 2013, Lampignano violated collectively bargained agreements with the laborers’ union by failing to pay the union wage rate to certain laborers, underpaying them by a total of more than $1.5 million, according to the information.
Over the same time period, Lampignano also submitted false reports to the unions’ pension and welfare funds that underreported the number of hours worked by certain laborers, thereby lowering the amount of contributions that A Lamp was required to make to the funds on behalf of its employees, according to the information. The shortfall to the funds totaled more than $1 million, the information states.
The information charges Lampignano, 43, of Itasca, with one count of mail fraud. The charge carries a maximum penalty of 20 years in prison.
The information also describes a scheme in which Lampignano and his superintendent, GIOVANNI “JOHN” TRAVERSA, induced employees to re-pay a portion of settlement proceeds they received from the company in resolution of a civil lawsuit. In 2013 A Lamp paid a total of $545,357 to 24 employees to satisfy unpaid wages and resolve the suit brought by the union. Subsequent to paying the settlement funds, Lampignano, Traversa and others used their positions of authority to induce certain laborers to pay some of the money back to the company, according to the information. Several employees eventually kicked back a total of at least $64,000, the information states.
Traversa, 46, of Bartlett, is charged with one count of making false statements to the Federal Bureau of Investigation and the U.S. Department of Labor Office of Inspector General regarding the settlement kickbacks. The charge is punishable by up to five years in prison.
Arraignments for Lampignano and Traversa in U.S. District Court in Chicago have not yet been scheduled.
The information was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the FBI; James Vanderberg, Special Agent-in-Charge of the Chicago Region of the Department of Labor’s Office of Inspector General, Office of Labor Racketeering and Fraud Investigations; Jeffrey A. Monhart, Regional Director of the Chicago Regional Office of the Department of Labor - Employee Benefits Security Administration; and Cook County Sheriff Thomas J. Dart.
The public is reminded that an information contains only charges and is not evidence of guilt. The defendants are presumed innocent and are entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal sentencing statutes and the advisory U.S. Sentencing Guidelines.
The government is represented by Assistant United States Attorney Brian Havey.
Information
Royersford Man Sentenced for Child Pornography Images Taken with Hidden CameraRead the Press Release
PHILADELPHIA – Kevin Rebbie, 57, of Royersford, PA, was sentenced yesterday to 240 months in prison for manufacturing child pornography, of which 180 months is a mandatory term. On December 22, 2015, Rebbie pleaded guilty to 19 counts of manufacturing child pornography, and one count of possession of child pornography. In addition to the prison term, U.S. District Court Judge Nitza I. Quinones Alejandro ordered a $2,000 special assessment and 20 years of supervised release.
Rebbie admitted that he had hidden a video camera under a sink in his bathroom for the purpose of videotaping children. After a 15-year old discovered the camera in February of 2015, the Limerick Township Police Department was contacted, and a search warrant was executed on Rebbie’s home. Seized were a total of 80 videos taken by Rebbie with a camera hidden in the bathroom, 19 of which captured minor boys and girls as they undressed, showered, and used the toilet. Rebbie saved the videos to his computer. He ultimately confessed to Limerick Township Police, was arrested in Montgomery County, and was charged federally.
“This afternoon a dangerous child predator was given a very long and appropriate sentence that will protect society for a long time,” said Memeger.
“Today’s lengthy prison sentence will hopefully begin the healing for the children robbed of their innocence at the hands of this predator,” said John Kelleghan, special agent in charge of HSI Philadelphia. “We will continue to aggressively target those who prey upon and sexually exploit our children. We owe it to the young victims in these cases, who will carry the emotional and physical scars of these crimes with them for the rest of their lives.”
Rebbie is awaiting trial in Montgomery County and Bucks County on child molestation charges.
The case was investigated by the Limerick Township Police Department in conjunction with Homeland Security Investigations. It was prosecuted by Assistant United States Attorney Michelle Rotella.
Previously Convicted Hazleton Heroin Trafficker on Supervised Release Pleads GuiltyRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a Hazleton man pleaded guilty to a Criminal Information charging him with a heroin trafficking offense.
According to United States Attorney Peter Smith, Claudio Herrera, age 49, appeared before Magistrate Judge Karoline Mehalchick yesterday in Scranton and admitted to possessing with intent to distribute approximately 60 grams (approximately 1,800 doses) of heroin in Hazleton on November 19, 2015.
The charges stem from a joint investigation by the Pennsylvania State Police and the Federal Bureau of Investigation which culminated in the execution of a search warrant at Herrera’s residence. During the search the State Police seized approximately 60 grams of heroin and other drug paraphernalia. Herrera was immediately arrested and has been detained ever since in prison. The case is being prosecuted by John C. Gurganus.
At the time of his arrest, Herrera was serving the federal supervised release portion of a previously imposed federal drug trafficking sentence. In July 2011, U.S. District Court Judge Edwin M. Kosik sentenced Herrera to a term of fifty-four (54) months of imprisonment based on a guilty plea to heroin and crack cocaine trafficking.
At the guilty plea hearing yesterday before Magistrate Judge Mehalchick, Herrera acknowledged that he (1) had been selling heroin in the Hazleton area since the summer of 2015; (2) sold heroin to a State Police cooperating witness leading to the execution of the search warrant; and (3) intended to distribute the heroin seized in his home by the State Police. Herrera further acknowledged that he faces a maximum possible sentence of 20 years’ imprisonment for the offense, to be followed by an additional term of imprisonment for his supervised release violation.
This case was brought as part of a district-wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
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.
As mentioned above, the maximum penalty under federal law is 20 years of 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.
# # #
Previously Convicted Felon Sentenced to 475 MonthsRead the Press Release
PLANO, Texas – A 39-year-old Waxahachie, Texas man has been sentenced to federal prison for crimes committed in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Joshua Mark Ford was charged in an 8 count indictment by a federal grand jury for narcotics and firearms violations. Ford was convicted at trial of all 8 counts in January 2016. Ford was sentenced to 115 months for the narcotics offenses and 30 years on the firearms offenses that will run consecutively. The Honorable U.S. District Judge Marcia A. Crone pronounced the sentence earlier today.
According to information presented at trial, on November 23, 2012, Ford was stopped by Plano Police for a traffic offense. During the course of the stop, officers found a multitude of narcotics including methamphetamine and 2,150 grams of GHB (also known as the date rape drug). Ford was also in possession of 2 firearms at the time and had been previously convicted of a felony offense, which also involved GHB and firearms.
On June 26, 2013, Ford was arrested while attempting to sell 2 gallons of GHB. During the take down, Ford pulled a firearm from his waistband and attempted to shoot a police officer. Ford was shot during the incident.
This case was prosecuted as part of the Project Safe Neighborhoods Initiative. Project Safe Neighborhoods is aimed at reducing gun and gang violence, deterring illegal possession of guns, ammunition and body armor, and improving the safety of residents in the Eastern District of Texas. Participants in the initiative include community members and organizations as well as federal, state and local law enforcement agencies.
This case was investigated by the Bureau of Alcohol, Tobacco, Firearms, and Explosives, the Plano Police Department, the Denton Police Department, and prosecuted by Assistant U.S. Attorneys Tracey Batson and Ernest Gonzales.
Pennsylvania Man Charged with Additional ISIL-Related OffensesRead the Press Release
Defendant Originally Charged with Providing Material Support to ISIL
Jalil Ibn Ameer Aziz, 19, a U.S. citizen and resident of Harrisburg, Pennsylvania, was charged in a superseding indictment with solicitation to commit a crime of violence and transmitting a communication containing a threat to injure.
The additional charges were announced by Assistant Attorney General for National Security John P. Carlin and U.S. Attorney Peter J. Smith of the Middle District of Pennsylvania.
On Dec. 22, 2015, Aziz was charged in an indictment with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The following day, Aziz appeared before U.S. Chief Magistrate Judge Martin C. Carlson of the Middle District of Pennsylvania and entered a plea of not guilty.
According to the indictment, from July 2014 to Dec. 17, 2015, Aziz knowingly conspired to provide, provided and attempted to provide material support, including personnel and services, to ISIL. The superseding indictment alleges that during the same time period, Aziz solicited, commanded, induced and endeavored to persuade others to kill and attempt to kill officers and employees of the United States. The superseding indictment further alleges that he knowingly tweeted the names, addresses, photographs and military branches of approximately 100 U.S. servicemembers to followers and viewers of his Twitter account. The communication also contained threats to injure the servicemembers, stating “kill them in their own lands, behead them in their own homes, stab them to death as they walk their street thinking that they are safe.”
Aziz was initially charged with conspiring and attempting to provide material support to ISIL in a complaint that was unsealed on Dec. 17, 2015, following his arrest. According to the complaint, Aziz used at least 57 different Twitter accounts to advocate violence against the United States and its citizens, to disseminate ISIL propaganda and to espouse pro-ISIL views. On at least three occasions, Aziz allegedly used his Twitter accounts and other electronic communication services to assist persons seeking to travel to and fight for ISIL. In one instance, Aziz allegedly acted as an intermediary between a person in Turkey and several well-known members of ISIL.
According to the allegations in the complaint, Aziz passed location information, including maps and a telephone number, between these ISIL supporters. A search of a backpack located in Aziz’s closet identified five loaded M4-style high-capacity magazines, a modified kitchen knife, a thumb drive, medication and a ski mask.
The charges contained in an indictment are only allegations, and the defendant is presumed to be innocent unless and until found guilty. The maximum sentence for both conspiring and attempting to provide material support is 20 years in prison and a $250,000 fine. The maximum sentence for the solicitation count is 20 years in prison, a $250,000 fine, a term of supervised release of five years and a $100 special assessment. The maximum sentence for the transmitting a threat to injure count is five years’ in prison, a $250,000 fine, a term of supervised release of three years and a $100 special assessment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, 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 case is being investigated by the FBI’s Joint Terrorism Task Force (JTTF), which includes the Pentagon Force Protection Agency and the Pennsylvania State Police, with assistance from the Harrisburg Bureau of Police. This case is being prosecuted by Trial Attorneys Robert Sander and Adam L. Small of the National Security Division’s Counterterrorism Section and Assistant U.S. Attorney Daryl F. Bloom of the Middle District of Pennsylvania.
Aziz Superseding Indictment
Payroll Service Company Owners Sentenced to Prison for Stealing Money Set Aside by Clients to Pay Federal and State TaxesRead the Press Release
Baltimore, Maryland – U.S. District Judge Marvin J. Garbis sentenced today payroll company owners Kevin Carden, age 56, to six years in prison for wire fraud, and his wife Beverly Carden, age 54, both formerly of Bel Air, Maryland, to five years in prison for mail fraud, both followed by three years of supervised release, arising from a scheme to steal money from their clients, the IRS and the Maryland State Comptroller.
The Cardens also each previously pleaded guilty to filing a false tax return. Judge Garbis announced that he will sentence the Cardens tomorrow for the tax offenses, which he indicated will run concurrent with the fraud sentences, adding no additional prison time. Judge Garbis also announced that after hearing additional evidence and argument tomorrow, he will determine the specific amount of losses arising from the fraud and tax schemes for which the Cardens are responsible for paying restitution.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Thomas Jankowski of the Internal Revenue Service - Criminal Investigation, Washington, D.C. Field Office; and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
“When customers realized that the money they entrusted to AccuPay was not being used as intended to pay their taxes, Kevin Carden misled them with false cover stories,” said U.S. Attorney Rod J. Rosenstein. “What really happened was that Kevin and Beverly Carden took money intended for the IRS and spent it themselves, causing millions of dollars in losses to their customers.”
“It is unacceptable to help yourself to other people’s money and violate their trust,” said Thomas Jankowski, Special Agent in Charge, IRS Criminal Investigation, Washington D.C. Field Office. “Today’s sentencings serve as reminders that this criminal behavior was inexcusable and IRS-CI is committed to bringing culpable individuals to justice.”
According to their plea agreements, until its closure in March 2013, Kevin and Beverly Carden owned and operated AccuPay, Inc., which provided payroll and payroll tax services to small and medium businesses. Kevin Carden ran the company’s “tax department,” which was responsible for handling the employment tax portion of the business. AccuPay received funds from its clients that it held in trust to pay over to the IRS and the Comptroller of Maryland for AccuPay’s clients’ employment taxes. Kevin Carden was responsible for transferring the client funds to make the required tax payments.
During the course of the fraud scheme, which lasted from 2010 to March 2013, AccuPay withdrew from the clients’ funds the full amount of payroll taxes owed, but then paid the taxing authorities only a portion of the funds. While AccuPay falsely represented to its clients that it paid all of the taxes owed, in fact, Beverly Carden diverted some of those funds to a joint personal bank account that she and her husband maintained which the couple then used to pay personal expenses.
Because of the Cardens’ failure to fully pay existing tax obligations owed by their clients, both the federal and state taxing authorities imposed interest and penalties on AccuPay’s clients, thereby further increasing the magnitude of their tax obligations. Thus, the payments that the Cardens did make to the taxing authorities in part were being applied to pay interest charges and penalties imposed as a result of underpayments earlier in the scheme.
The Cardens used various methods to cover up their diversion of funds and to allay their clients’ concerns when the clients learned that the taxing authorities had apparently not been paid the full amounts they were supposed to receive. For example, in the instances in which AccuPay’s clients confronted employees at AccuPay about the underpayment of their taxes, Kevin Carden either told those clients that the underpayment would be addressed or (in some cases) avoided their inquiries. Kevin Carden further represented to those clients with whom he spoke that the underpayment was due to (1) a mistake by the taxing authority; (2) an error made by AccuPay employees; and/or (3) problems with the software AccuPay used to file tax returns. These representations were often untrue.
In addition, as a further means of covering up their diversion of funds and allaying their clients’ concerns, in late 2011 AccuPay sent a letter to their clients stating that they had hired a chief financial officer (CFO) to audit tax deposits and filings for all tax clients back to 2009 “for correctness, compliance, and completeness.” In fact, that individual was not AccuPay’s CFO, but rather was an independent tax preparer the Cardens had hired to prepare their own personal taxes and the corporate taxes of AccuPay, rather than those of the clients.
In 2012, a client of AccuPay confronted representatives of AccuPay with the fact that the company had failed to pay over $300,000 in taxes owed from 2008 to 2012. In response, AccuPay paid the client’s tax deficiencies.
The Cardens also admitted that they filed a false individual tax return for 2011 in which they did not report the amount of payroll taxes that had been diverted from AccuPay’s clients to the Cardens’ personal account. Beverly Cardin also admitted that she did not file a 2012 individual tax return.
Today’s announcement is part of efforts underway by President Obama’s Financial Fraud Enforcement Task Force (FFETF) which was created in November 2009 to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets and conducting outreach to the public, victims, financial institutions and other organizations. Since the inception of FFETF in November 2009, the Justice Department has filed more than 12,841 financial fraud cases against nearly 18,737 defendants including nearly 3,500 mortgage fraud defendants. For more information on the task force, visit www.stopfraud.gov.
United States Attorney Rod J. Rosenstein commended the IRS - Criminal Investigation and FBI for their work in the investigation. Mr. Rosenstein praised the Bel Air Police Department for their assistance in the investigation, and thanked Assistant U.S. Attorneys Evan T. Shea and Jefferson M. Gray, who prosecuted the case.
Overland Park Couple Arrested in Bank Fraud, Citizenship Fraud CaseRead the Press Release
KANSAS CITY, KAN. - A married couple from India who allegedly obtained U.S. citizenship by fraud have been arrested on bank fraud and immigration charges, Acting U.S. Attorney Tom Beall said today.
The couple, Ajay Dave, 60, and Parul Dave, 59, who live in Overland Park, are scheduled to make an initial appearance in the case at 2:30 p.m. today in Kansas City, Kan., before Chief U.S. Magistrate Judge James P. O’Hara. A federal grand jury returned a sealed indictment against the Daves last week in which the Daves are charged with two counts of bank fraud, two counts of making false statements on their applications to become U.S. citizens, and four counts related to obtaining their U.S. citizenship by fraud.
If convicted, the defendants face up to 30 years in prison, $1 million in fines, and forfeiture of residential real estate identified in the case. They also face revocation of their United States citizenship and possible deportation to India.
The indictment alleges that the Daves provided false financial information and bogus tax returns in April 2010 to First Federal Bank in Overland Park to obtain a $417,000 mortgage loan on an Overland Park residence. It also alleges they engaged in similar conduct in July 2010 to obtain a $238,500 refinance of a home they own in Topeka, Kan., from Topeka’s Heritage Bank.
Then, starting in 2012, when the Daves, who came to the United States in 1999, began the process of seeking naturalized citizenship, they failed to disclose their alleged false statements to the banks, according to the indictment. Parul Dave became a U.S. citizen on October 26, 2012; Ajay Dave, who before he was naturalized was known as Ajaykumar Balwantrai Dave, was sworn in as a U.S. citizen on August 23, 2013.
Beall said the case arose from a joint investigation of the Kansas Department of Revenue; the Department of Homeland Security’s Citizenship and Immigration Services (Fraud Detection and National Security Office); Homeland Security Investigations; U.S. Office of Labor Racketeering and Fraud Investigation; Kansas Department of Labor Fraud Investigation Division; Kansas Alcoholic Beverage Control; and the Overland Park Police Department. The case is being prosecuted by Assistant U.S. Attorney Brent Anderson.
As in any criminal case, defendants are presumed innocent until and unless proven guilty. An indictment merely alleges criminal conduct and is the document by which prosecution of the case goes forward.
Olmstep Twp. woman charged with embezzling $270,000 from bankRead the Press Release
A woman from Olmsted Township was charged with embezzling from a bank, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio, and Stephen D. Anthony, Special Agent in Charge of the FBI's Cleveland Office.
Betti J. Haviland, 37, of Olmsted Township, Ohio, is charged with theft, embezzlement, or misapplication by a bank officer or employee. Specifically, the information alleges that from September 28, 2007 through April 3, 2015, Haviland stole $270,685 from Lorain National Bank, where she was employed as a vault teller.
The case is being prosecuted by Assistant U.S. Attorney Matthew B. Kall following an investigation by the Federal Bureau of Investigation.
If convicted, the defendant's sentence will be determined by the court after a review of the federal sentencing guidelines and factors unique to the case, including the defendant’s prior criminal record (if any), the defendant’s role in the offense, and the characteristics of the violation.
An information is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Northampton County Woman Charged with Possession of SteroidsRead the Press Release
PHILADELPHIA - Kathleen Fields, 43, of Bethlehem, Pennsylvania was charged by Information, filed on May 16, 2016, with one count of possession with intent to distribute anabolic steroids, announced United States Attorney Zane David Memeger.
If convicted the defendant faces a maximum possible sentence of 10 years in prison, a possible fine, supervised release, and a $100 special assessment.
The case was investigated by U.S. Postal Inspection Service and is being prosecuted by Assistant United States Attorney Andrea G. Foulkes.
An Information is an accusation. A defendant is presumed innocent unless and until proven guilty.
New Port Richey Man Indicted for Impersonating A U.S. SenatorRead the Press Release
Tampa, FL – United States Attorney A. Lee Bentley, III announces the unsealing of an indictment charging Sidney C. Hines (67, New Port Richey) with five counts of false impersonation of a federal officer or employee of the United States. If convicted, he faces a maximum penalty of three years in federal prison for each count.
According to the indictment, Hines received a mortgage loan secured by his home in New Port Richey and subsequently fell behind on his mortgage payments. In an effort to help delinquent borrowers such as Hines, the Federal National Mortgage Association (“Fannie Mae”) created the HomeSaver Advance (“HSA”) loan program. HSA allowed delinquent borrowers who were able to make future scheduled mortgage payments, but were unable to pay past due amounts immediately, to cure the delinquency by entering into an unsecured loan for the amount in the arrears. On October 15, 2008, Hines obtained a HSA loan for $5,863.73.
Hines failed to make the required payments on his HSA loan and the loan was turned over to ClearSpring Loan Services, a debt collection agency. Beginning in March 2013 and continuing through the end of 2014, Hines impersonated a sitting United States Senator on multiple occasions in telephone calls that he made to ClearSpring. During those calls, acting as the Senator, he stated that Hines’s HSA loan was paid in full and that the loan should be removed from his credit report.
An indictment is merely a formal charge that a defendant has committed a violation of one or more federal criminal laws, and every defendant is presumed innocent unless, and until, proven guilty.
This case was investigated by the United States Capitol Police and the Federal Housing Finance Agency – Office of Inspector General. It will be prosecuted by Special Assistant United States Attorney Chris Poor.
New Orleans Couple Plead Guilty to Drugs, Firearms and Obstruction ChargesRead the Press Release
U.S. Attorney Kenneth A. Polite announced that GROSS WILLIAMS, age 49, and his wife, KATHLEEN WILLIAMS, age 46, both residents of New Orleans, pled guilty today. GROSS WILLIAMS pled guilty to conspiracy to distribute a kilogram or more of heroin and five kilograms or more of cocaine, as well as illegal possession of a firearm by a convicted felon. KATHLEEN WILLIAMS pled guilty to obstruction of justice for destroying a cellular phone used by GROSS WILLIAMS in his drug dealing activity.
According to court documents, GROSS WILLIAMS was a large-scale narcotics dealer. He operated a used car business in Arabi that served as a cover and means of laundering his drug proceeds. Law enforcement officers seized over $425,000 in cash and a .40 caliber semi-automatic pistol from the WILLIAMS’s bedroom during a search, and later discovered another $240,000 in cash in a safe deposit box that KATHLEEN had opened in her name. Through a detailed financial investigation, law enforcement was able to show that GROSS deposited hundreds of thousands of dollars in cash into the bank accounts of his used car business despite selling only a few midrange models each year. KATHLEEN also admitted that she destroyed her husband’s “dope phone” the day that he was arrested.
GROSS WILLIAMS faces a minimum term of imprisonment of 20 years to a maximum of life, a fine of up to $20,000,000 and ten years of supervised release following any term of imprisonment. KATHLEEN WILLIAMS faces a maximum term of imprisonment of twenty years, a fine of up to $25,000, and 3 years of supervised release following any term of imprisonment. U.S. District Judge Kurt D. Engelhardt set sentencing for August 17, 2016.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration, the Federal Bureau of Investigation, the St. Bernard Parish Sheriff’s Office, the New Orleans Police Department, and Louisiana Probation and Parole, in investigating this matter. Assistant United States Attorneys David Haller and Hayden Brockett are in charge of the prosecution.
New Hartford Businessman Pleads Guilty to Filing False Tax ReturnsRead the Press Release
SYRACUSE, NEW YORK – Dino Tucciarone, 57, of New Hartford, New York, pled guilty today to filing a false federal income tax return, announced United States Attorney Richard S. Hartunian.
As part of his guilty plea, Tucciarone admitted that he owned and operated Disaster Services, Inc. in New Hartford, New York and earned substantial income over and above what he reported on his personal federal income tax returns. The defendant admitted that he made material misrepresentations in his tax returns by substantially under reporting his income and tax liability for the years 2007, 2008 and 2009. The unreported income resulted in additional tax due and owing to the IRS totaling more than $250,000.00.
At sentencing, Tucciarone faces a maximum sentence of 3 years in prison, a fine of up to $250,000, and a term of supervised release of at least 1 year. As part of his guilty plea, Tucciarone also agreed to pay restitution to the Internal Revenue Service for all back taxes due for tax years 2007 through 2009 as well as payment of all accrued penalties and interest. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors. Sentencing is scheduled for September 15, 2016.
This prosecution resulted from an investigation conducted by the Internal Revenue Service Criminal Investigation Division, Syracuse, New York. The case was prosecuted by Assistant United States Attorney Ransom P. Reynolds.
Naples Man Pleads Guilty in Connection with “Operation Fraudulent Pain”Read the Press Release
Fort Myers, Florida – United States Attorney A. Lee Bentley, III announces that Wisler Cyrius (35, Naples) today pleaded guilty to conspiracy to commit mail fraud and conspiracy to commit money laundering. He faces a maximum penalty of 20 years in federal prison for each count. In addition, he has agreed to pay restitution to the victim automobile insurance companies and forfeit the proceeds of the offenses.
Cyrius is the fourth individual to plead guilty following the culmination of a two-year joint federal and state law enforcement investigation, dubbed “Operation Fraudulent Pain.” The investigation disrupted five unlicensed chiropractic clinics that had received more than $2 million in ill-gotten Personal Injury Protection (PIP) payments from automobile insurance companies. Anouce Toussaint (33, Naples) previously pleaded guilty to conspiracy to commit mail fraud and conspiracy to launder money. Garry Joseph (37, Naples) and Maria Victoria Lopez (44, Moore Haven) previously pleaded guilty to conspiracy to commit mail fraud.
According to the plea agreements, Tamiami Pain and Rehab LLC, First Choice Pain and Rehab Inc., Parkway Medical and Rehab LLC, T&C Consultants d/b/a Collier Chiropractic Center, and Immokalee Pain & Rehab LLC were unlicensed chiropractic clinics operating in Naples and Immokalee. At each clinic, conspirators paid licensed health care practitioners who, in exchange for payments, allowed their names to be listed on official documents as though they were the true owners of the clinics. The conspirators controlled the finances and oversaw and managed the clinics' day-to-day business, including the insurance billing practices.
According to his plea agreement, Joseph conspired to defraud automobile insurance companies of approximately $2 million from October 2012 to February 2015. He and a co-conspirator were the true owners of Parkway Medical and Rehab and Collier Chiropractic Center. They caused automobile insurance companies to be billed for claims that violated Florida law because the clinics were not properly licensed. They also submitted claims for unnecessary treatments and/or services that had not actually been rendered.
From June 2013 to February 2015, Cyrius and Toussaint conspired with others to solicit individuals to participate in staged motor vehicle accidents in exchange for compensation. The conspirators also sent automobile insurance companies claims for unnecessary services rendered to purported accident victims who had been paid to participate in the staged accidents. The conspirators also submitted claims to automobile insurance companies that were unlawful under Florida law because the clinics submitting the claims were not properly licensed. Cyrius and Toussaint used a shell corporation to conduct financial transactions designed to conceal the proceeds and to avoid reporting requirements.
According to her plea agreement, between October and December 2014, Lopez conspired with others to defraud automobile insurance companies. She had worked in billing and customer service at more than one clinic operated by her co-conspirators. Lopez was coached to mislead others about the true ownership of clinics and knew that non-health practitioners were directing medical treatments in order to maximize claims for payment. In addition, knowing that a patient had participated in a staged accident, Lopez coached that patient to receive medically unnecessary treatment. She directed another patient not to tell his insurance company that he was being compensated for receiving unnecessary treatment.
Joseph is scheduled to be sentenced on June 27, 2016. Toussaint and Lopez are scheduled to be sentenced on July 11, 2016. Each faces a maximum penalty of 20 years in federal prison. The United States will also seek a forfeiture money judgment from each defendant equal to the amount of proceeds obtained as a result of each offense.
A fifth individual, Nesly Loute, was also charged in Operation Fraudulent Pain. He is scheduled for trial in July 2016.
This case was investigated by the Federal Bureau of Investigation, the State of Florida’s Department of Financial Services Division of Insurance Fraud, the Internal Revenue Service - Criminal Investigation, and U.S. Immigration and Customs Enforcement’s Homeland Security Investigations. Assistance was also provided by the Florida Highway Patrol, the National Insurance Crime Bureau, the Florida Department of Health, and the State Attorneys’ Offices for the 13th and 19th Judicial Circuits. The following insurance companies also assisted with the case: Travelers, Nationwide, Bristol West, Esurance, Windhaven, Farmers, Direct General, Allstate, State Farm, Progressive, Geico, Infinity, and Foremost. It is being prosecuted by Assistant United States Attorney David G. Lazarus.
Montgomery County Man Pleads Guilty to Tax ChargesRead the Press Release
PHILADELPHIA - Francis J. Bass, 61, of Montgomery County, PA, a former employee of Lundy Law in Philadelphia, pleaded guilty today to four counts of subscribing a false federal income tax return. As the Intake Coordinator for the law firm, he referred personal injury clients to medical providers and hired private investigators. In exchange for these referrals, Bass received payments directly from the medical providers and investigators selected by him. He received approximately $500 per client.
During tax years 2009 through 2013, Bass understated the income on his tax returns by failing to report the majority of the funds he received from these medical providers. To conceal the source of the funds he received for his referrals, Bass created a fictitious Schedule C “investigation” business, on which he reported a minimal amount of the referral payments.
For tax years 2009 through 2012, Bass failed to report approximately $483,901 in income and owed additional taxes of approximately $126,104. As part of his plea agreement, Bass agreed that he owed an additional $77,360 in taxes for approximately $341,264 in income for tax year 2013. The total amount of taxes owed to the IRS for 2009 through 2013 is approximately $203,464.
A sentencing hearing is scheduled for September 13, 2016. The defendant faces a maximum possible sentence of 12 years in prison, one year of supervised release, a possible fine, and a $400 special assessment
The case was investigated by the Internal Revenue Service Criminal Investigations and the Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Terri A. Marinari and David J. Ignall.
Mexican National Sentenced for Firearm ViolationsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ERIC DE JESUS MENDOZA-MARTINEZ, age 20, a citizen of Mexico, was sentenced today after previously pleading guilty to a one-count Indictment for violations of the Federal Gun Control Act.
U.S. District Judge Martin Feldman sentenced MENDOZA-MARTINEZ to serve ten months imprisonment and ordered to pay a special assessment of $100. Following his term of imprisonment, MENDOZA-MARTINEZ will be surrendered to the custody of the U.S. Immigration and Customs Enforcement for removal proceedings.
According to court documents, on or about November 7, 2015, MENDOZA-MARTINEZ, an alien present illegally in the United States, was found in possession of a Taurus .380 caliber semi-automatic pistol.
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 United States Attorney Spiro G. Latsis is in charge of the prosecution.
Menominee Man Sentenced for Facilitating Underage ProstitutionRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on May 17, 2016, Brian L. Kelley (age: 36) of the Menominee Indian Reservation was sentenced to federal prison by Chief United States District Judge William C. Griesbach. Kelley had previously entered a guilty plea for inducing and enticing an underage victim to engage in prostitution contrary to Title 18, United States Code, Section 2422(b). According to the plea agreement and other documents filed with the court, Kelley used his position as a barber shop owner and bait shop proprietor to hire minors for the purpose of paying them in return for sexual activities.
In pronouncing sentence, Chief Judge Griesbach noted the serious nature of the charges and that the sentence is in the best interest of the public and especially the victims, stating “the real damage here is to the victims”. Ultimately, Kelley was sentenced to 72 months in federal prison followed by 10 years of supervised release.
The case was investigated by the Menominee Tribal Police and the Federal Bureau of Investigation. It was prosecuted by Assistant United States Attorney Daniel R. Humble.
# # #
Maryland man convicted of heroin delivery causing deathRead the Press Release
MARTINSBURG, WEST VIRGINIA – A federal jury returned a guilty verdict today convicting Lateef Fisher, 38, of Hagerstown, Maryland, of selling heroin that resulted in the death of another, United States Attorney William J. Ihlenfeld, II, announced.
Evidence presented at the two day trial indicated that Fisher, also known as “Apple,” conspired with another individual to sell heroin in June 2014 in Berkeley County, West Virginia. That heroin led to the death of a 27 year-old male victim.
As a result of the conviction, Fisher faces a minimum of 20 years in federal prison and up to life."Heroin has taken the lives of far too many people," said U.S. Attorney Ihlenfeld. "We will continue to be aggressive in our pursuit of those who sell heroin, especially when it results in the death of another."
Assistant U.S. Attorneys Paul Camilletti and Anna Krasinski prosecuted the case on behalf of the government. The Eastern Panhandle Drug and Violent Crime Task Force, a HIDTA-funded initiative, investigated.
Chief U.S. District Judge Gina M. Groh presided.Licensed Professional Counselors Sentenced for Roles in $9.5 Million Fraudulent Billing Health Care Fraud Scheme to Siphon and Steal Money from Workers’ Compensation ProgramRead the Press Release
DALLAS — Two licensed professional counselors from the Dallas-Fort Worth metroplex who pleaded guilty to their respective roles in a massive health care fraud scheme that involved bribes, unnecessary medical treatment, fraudulent billing, and the falsification of medical documents to fraudulently bill the federal government, through the Department of Labor’s (DOL) Office of Worker Compensation Programs (OWCP), more than $9.5 million, were sentenced this week, announced U.S. Attorney John Parker of the Northern District of Texas.
The lead defendant charged in the case, licensed professional counselor Larry Washington, 63, of Desoto, Texas, was sentenced on Monday to 78 months in federal prison and ordered to pay approximately $7.7 million in restitution. He pleaded guilty in January 2016 to one count of conspiracy to commit health care fraud and must surrender to the Bureau of Prisons on July 19, 2016. Washington ran businesses known as AAA Mental Health, LLC, Mind Spa, Inc., Solutions Health and Rehabilitation, and Convergence Emergence Diversion.
Another licensed professional counselor, Henrietta Price, 51, of Cedar Hill, Texas, was sentenced on Monday to six months home confinement, three years of probation and was ordered to pay $199,796.93 in restitution. She, too, pleaded guilty to one count of conspiracy to commit health care fraud. Price provided counseling services at Mind Spa, Inc. and also treated patients at her own company, Lifeline Counseling.
Through his businesses, Washington provided patients with counseling, pain management, chiropractic services, physical therapy and massage services. He sought out and recruited his patients who were former postal and VA employees who had suffered on-the-job injuries that prevented them from returning to work. Washington knew that even though these individuals had once suffered a work-related injury, their injuries were not severe enough to warrant continued OWCP payments.
Twenty-one claimants, four doctors or medical providers, a senior claims examiner at DOL, a claims representative, and a medical provider’s employee were charged in the scheme. All but two defendants have pleaded guilty to their respective roles in the scheme.
In total, the defendants were able to collectively fraudulently bill the federal government through the OWCP for more than $9.5 million and receive more than $8.7 million in government payments based on their fraudulent billing. The DOL made approximately $11.4 million in payments to these claimants for their compensation and medical services. The government anticipates that as a result of the convictions, it will also prevent the payment of an estimated $11 million in future payments to the claimant defendants.
The scheme began with former or current government employees – U.S. postal employees or Veterans Affairs (VA) employees – who claimed that they had been injured during the course of their work duties. Each of these claimants claimed they had suffered an on-the-job injury, ranging from strains to trigeminal neuralgia, which prevented them from returning from work.
Under OWCP, these “claimants” could receive workers’ compensation payments (typically between 66% and 75% of pre-disability wages, tax free) and paid medical treatment, if a qualified doctor deemed the medical services necessary to treat the injury and if the injury prevented the claimant from working.
A DOL claims examiner would review the claim and its documentation, and either approve or reject the claim. In certain circumstances, if an on-the-job injury caused permanent damage, a claimant could have received a “scheduled award” – that is, a lump sum payment meant to compensate that individual for their injury. These awards often amounted to several hundred thousand dollars. Claimants often sought the help of professionals, typically former DOL claims examiners in filing their claims and in getting their claims approved. These “claims representatives” either charged claimants a percentage of any paid claim or a flat rate fee. When doctors or other medical providers treated the claimants, they could bill OWCP for their work if they submitted the proper documentation and certification.
The investigation was led by the U.S. Postal Service Office of Inspector General, and the Department of Labor Office of Inspector General, with assistance from Internal Revenue Service Criminal Investigation, U.S. Treasury Office of Inspector General, Social Security Administration Office of Inspector General/Cooperative Disability Investigations Unit, and the U.S. Department of Veterans Affairs Office of Inspector General.
Assistant U.S. Attorney P.J. Meitl and Special Assistant U.S. Attorneys Jennifer Bray and Nicola Dana are in charge of the prosecution.
# # #
Justice Department Reaches Extension Agreement to Improve Georgia’s Developmental Disability and Mental Health SystemRead the Press Release
The Justice Department today announced that it has entered into an extension agreement with the state of Georgia to improve the quality and availability of services for people with developmental disabilities living in the community and to provide supported housing to individuals with significant mental illness who need it.
The extension agreement builds upon a 2010 settlement agreement resolving a lawsuit brought by the department under the Americans with Disabilities Act and the Supreme Court’s Olmstead decision. The case involves Georgia’s provision of community services for individuals with mental illness and developmental disabilities. The department found in 2009 that Georgia was forcing people with disabilities into state hospitals instead of providing community-based services, in violation of the ADA’s integration requirements. In January, the department alleged that Georgia was not in compliance with the 2010 agreement, both regarding helping people move from institutions into their communities and regarding quality and oversight of community-based services. In light of the agreement and the significant commitments Georgia has made in it, the department has agreed to withdraw its motion to enforce that earlier agreement.
The agreement will resolve the seven areas of alleged deficiency identified by the department in its January court filing. Under the agreement, Georgia will help people with developmental disabilities move from its state hospitals to integrated settings, consistent with their needs and preferences; will identify and address each individual’s needs in the community prior to discharge; and will monitor services and track outcomes for people after their discharge. For individuals who have moved from the state hospitals to the community, Georgia will monitor their health and wellbeing to ensure that emerging needs are met in a timely fashion. The extension agreement also calls for creation of at least 675 new Medicaid home- and community-based waiver slots as alternatives to placement in a facility. Georgia will provide clinical oversight and enhanced support coordination for individuals with developmental disabilities served by the state.
The extension agreement enhances quality oversight, requiring specific actions in the event of serious incidents and corrective actions to address deficiencies. The state will collect and review data to identify any trends and develop quality improvement initiatives. In addition, Georgia will require providers to develop risk management and quality improvement programs.
Under the agreement, at least 600 additional individuals with mental illness will receive bridge funding and at least 633 will receive housing vouchers under the Georgia housing voucher program. By June 30, 2018, the state is to have capacity to provide supported housing to any of the people with mental illness covered by the settlement agreement that need it. The extension agreement requires a referral procedure to supported housing for people who need it leaving the state hospitals, jails, prisons, emergency rooms or homeless shelters.
“By strengthening the services provided by Georgia’s mental health system, this agreement will make a difference in the lives of Georgians with developmental disabilities or mental illness who wish to build lives in the community,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “We look forward to working with Georgia to deliver on the promise of community integration enshrined in the ADA.”
“During the past five years, the State of Georgia has significantly changed the way it provides services for people with disabilities,” said U.S Attorney John A. Horn of the Northern District of Georgia. “Recognizing that we have more work to do in this area, I am encouraged by Georgia’s willingness to continue to partner with the Department of Justice and stakeholders to improve the quality of services for people with developmental disabilities and significant mental illness in our community.”
The Civil Rights Division enforces the ADA, which authorizes the Attorney General to investigate whether a state is serving individuals in the most integrated settings appropriate to their needs. Please visit www.justice.gov/crt to learn more about the Olmstead decision, the ADA and other laws enforced by the Justice Department’s Civil Rights Division.
The agreement was secured due to the efforts of Civil Rights Division’s Special Litigation Section and the U.S. Attorney’s Office of the Northern District of Georgia.
Georgia ADA Extension Agreement
Jefferson City Physician Pleads Guilty to Making False StatementsRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced today that a Jefferson City, Mo., physician has pleaded guilty in federal court to making false statements in order to receive payments on health care claims.
Randall E. Meyer, 60, of Jefferson City, waived his right to a grand jury and pleaded guilty before U.S. Chief District Judge Greg Kays on Friday, May 13, 2016, to a federal information that charges him with making false statements related to health care matters.
Meyer, a physician and surgeon, is a partner at Central Missouri Cardiology, P.C., a cardiology practice group in Jefferson City. Under the terms of his plea agreement, Meyer must surrender his medical license two weeks prior to his sentencing hearing, which has not yet been scheduled.
This case involves Meyer’s treatment of 14 patients from Jan. 1 through Dec. 31, 2010. Meyer admitted that he claimed the percentage of the patients’ lesions and stenosis in their arteries was 70 percent or greater when, in fact, it was substantially less. Meyer used his misstatement of the significance of the lesions and stenosis to ensure the claims would be paid. He then submitted (or caused to be submitted) claims for payment for treatments or services to health care benefit programs.
The health care benefit programs would not have allowed, reimbursed, or paid those claims if the programs had known Meyer was inflating the percentage of patient lesion and stenosis.
The estimated loss amount for purposes of sentencing is more than $95,000 but less than $150,000. Under the terms of his plea agreement, Meyer must pay $76,369 in restitution, based on the estimated loss to the private insurers who reimbursed the claims. However, the government has not waived its right to pursue civil or administrative remedies with respect to the claims Meyer submitted (or caused to be submitted) to federal payors through the False Claims Act.
Explanation of Medical Terms
Stenosis is an abnormal narrowing in a blood vessel. A stent is a tube or other device placed in the body to create a passage between two hollow spaces and/or widen a narrow blood vessel. Coronary stents are placed during percutaneous coronary intervention (PCI), also known as an angioplasty. The most common use for coronary stents is in the coronary arteries, into which a bare-metal stent or drug-eluting stent is inserted. When a patient is determined to have stenosis to a degree that justifies intervention, and is undergoing a PCI, a physician must accurately document and maintain in the medical record his or her findings for the need to treat the patient, and any intervention and subsequent treatment.
This case is being prosecuted by Senior Litigation Consultant Gregg R. Coonrod and Assistant U.S. Attorney Cindi Woolery. It was investigated by Health and Human Services – Office of the Inspector General, the FBI, the U.S. Department of Labor – Employee Benefits Security Administration and the Missouri Attorney General’s Medicaid Fraud Control Unit.
Jamaican man charged with illegally reentering the U.S.Read the Press Release
A federal grand jury returned an indictment charging Jamaican citizen Trevor Arthur Junior Campbell, 41, for re-entering the United States illegally after being deported to Jamaica, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Campbell was found in the United States after being previously deported on August 11, 1997. Campbell previously entered the United States and was deported in 1997 after being convicted of an aggravated felony and was later found in Cleveland, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case following an investigation by the United States Immigration and Custom Enforcement, Department of Homeland Security.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum and in most cases it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial, in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Jalil Abn Ameer Aziz Who Was Charged with Providing Material Support to ISIL Faces New Charges for Solicitation to Commit A Crime of Violence and Transmitting A Communication Containing A Threat to InjureRead the Press Release
HARRISBURG – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that Jalil Ibn Ameer Aziz, 19, a U.S. citizen and resident of Harrisburg, who was previously charged by a federal Grand Jury in Scranton on charges of conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL) faces new federal charges. In a Superseding Indictment a federal Grand Jury in Harrisburg charged Aziz with solicitation to commit a crime of violence and transmitting a communication containing a threat to injure.
According to U.S. Attorney Peter Smith, on December 22, 2015, Aziz was charged in an indictment with conspiring and attempting to provide material support to the Islamic State of Iraq and the Levant (ISIL), a designated foreign terrorist organization. The following day, Aziz appeared before U.S. Chief Magistrate Judge Martin C. Carlson of the Middle District of Pennsylvania and entered a plea of not guilty.
According to the indictment, from July 2014 to December 17, 2015, Aziz knowingly conspired to provide, provided and attempted to provide material support, including personnel and services, to ISIL. The superseding indictment alleges that during the same time period, Aziz solicited, commanded, induced and endeavored to persuade others to kill and attempt to kill officers and employees of the United States. The superseding indictment further alleges that he knowingly tweeted the names, addresses, photographs and military branches of approximately 100 U.S. servicemembers to followers and viewers of his Twitter account. The communication also contained threats to injure the servicemembers, stating “kill them in their own lands, behead them in their own homes, stab them to death as they walk their street thinking that they are safe.”
Aziz was initially charged with conspiring and attempting to provide material support to ISIL in a complaint that was unsealed on December 17, 2015, following his arrest. According to the complaint, Aziz used at least 57 different Twitter accounts to advocate violence against the United States and its citizens, to disseminate ISIL propaganda and to espouse pro-ISIL views. On at least three occasions, Aziz allegedly used his Twitter accounts and other electronic communication services to assist persons seeking to travel to and fight for ISIL. In one instance, Aziz allegedly acted as an intermediary between a person in Turkey and several well-known members of ISIL.
According to the allegations in the complaint, Aziz passed location information, including maps and a telephone number, between these ISIL supporters. A search of a backpack located in Aziz’s closet identified five loaded M4-style high-capacity magazines, a modified kitchen knife, a thumb drive, medication and a ski mask.
The case is being investigated by the FBI’s Joint Terrorism Task Force (JTTF), which includes the Pentagon Force Protection Agency and the Pennsylvania State Police, with assistance from the Harrisburg Bureau of Police. This case is being prosecuted by Assistant United States Attorney Daryl F. Bloom and by Trial Attorneys Robert Sander and Adam L. Small of the National Security Division’s Counterterrorism Section.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
The maximum penalty provided in the statute for each of counts 1 and 2 is 20 years imprisonment and a $250,000 fine. The maximum penalty for Count 3, Solicitation to Commit a Crime of Violence is 20 years’ imprisonment, a $250,000 fine, a term of supervised release of five years and a $100 special assessment. The maximum penalty for count 4, Transmitting a Communication Containing a Threat to Injure, is five years’ imprisonment, a $250,000 fine, a term of supervised release of three years and a $100 special assessment.
If convicted, the defendant’s sentence will be determined by the court after reviewing factors unique to this case, including the defendant’s prior criminal record, if any, 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.
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.
# # #
Jacksonville Men Sentenced for Aggravated Identity Theft, Attempted Bank Fraud and Possession of Counterfeit SecuritiesRead the Press Release
Jacksonville, Florida – U.S. District Court Judge Timothy J. Corrigan has sentenced Jacksonville residents David Lee Mitchell (60) and Hezekiah Williams (59) to 10 years in federal prison, respectively, for their role in an identity theft and counterfeit check scheme. Varying upward at the time of sentencing, both men were ordered to serve eight years in federal prison for attempted bank fraud and possession of counterfeit business checks, followed by a consecutive mandatory minimum term of two years’ imprisonment for aggravated identity theft.
A third co-defendant, Travis Ware (24, Jacksonville), was sentenced on March 9, 2016, to a mandatary minimum term of two years in federal prison for aggravated identity theft.
According to court documents, on November 23, 2014, Florida Highway Patrol troopers pulled over a vehicle occupied by Williams, Mitchell, and Ware. During the traffic stop, the troopers observed marijuana inside the vehicle. A search of the vehicle revealed 25 counterfeit business checks made out to various individuals and 15 forms of identification from 7 different people. Many of the names on the identification documents matched those printed on the counterfeit checks. Further investigation determined that Mitchell, Williams, and Ware had been driving around three days earlier, attempting to fraudulently cash the counterfeit checks and recruiting others to use the various forms of identification to cash the counterfeit checks.
This case was investigated by the Florida Highway Patrol and the United States Secret Service, Jacksonville Field Office. It was prosecuted by Assistant United States Attorney Kevin C. Frein.
Indictment Charges Former Insurance and Annuities Salesman with Establishing Fictional Companies to Defraud Elderly InvestorsRead the Press Release
CHATTANOOGA, Tenn. – On May 17, 2016, a federal grand jury sitting in Chattanooga, Tenn., returned a seven-count indictment against John Allen Morris, Jr., 50, of Knoxville, Tenn., for wire fraud, mail fraud, bank fraud and wrongful use of a government seal.
According to the indictment on file with U.S. District Court, beginning in 2006, Morris devised a scheme to defraud and obtain money by false pretenses. He established two fictitious companies, Pillar Management Company (PMG) and Superior Life Insurance Company (Superior) and then contacted elderly investors by various means, including the telephone, to invest in annuities, bonds, and insurance products. Morris convinced several investors to surrender legitimate annuities to invest in his companies. He established bank accounts at different financial institutions in which he deposited this money received from investors. Rather than investing the funds, Morris converted the money from investors for his own personal use, including paying personal bills and expenses for himself and his family, buying personal property for himself and others, and investment in personal ventures such as an automobile refurbishment and resale enterprise, and “Football Tech” – a business which claimed to stage football camps for high school football players and others. Additionally, to perpetuate his scheme, Morris used some of the funds from investors to pay off others.
If convicted, Morris faces a maximum of 20 years in prison for the wire and mail fraud charges. He faces a maximum of 30 years in prison for bank fraud and a maximum of five years in prison for wrongful use of a government seal.
If you believe that you have been a victim of Morris, please contact the local Federal Bureau of Investigation (FBI) office at 865-744-0751.
Agencies conducting this investigation include the FBI, U.S. Postal Inspection Service, and Tennessee Department of Commerce and Insurance. Assistant U.S. Attorney Steve Neff represents the government.
Members of the public are reminded that an indictment constitutes only charges and that every person is presumed innocent until his or her guilt has been proven beyond a reasonable doubt.
###
Indianapolis man indicted on robbery chargesRead the Press Release
INDIANAPOLIS –United States Attorney Josh J. Minkler announced today that an Indianapolis man has been indicted on 22 counts related to recent robberies in the Indianapolis area. Donnell E. Gilder, 22, was indicted on 11 counts of robbery, nine counts of brandishing a firearm during a crime of violence, and two counts of discharging a firearm during a crime of violence.
“Protecting our neighborhoods from violent crime is a top priority in my office,” said Minkler. “Terrorizing this community with guns and violence will not be tolerated and those who do, will be arrested, prosecuted, and sent to federal prison.”
The indictment alleges that between February 29, 2016, and April 27, 2016, Gilder robbed 10 Speedway Gas Stations and a Marsh Supermarket on the Northeast side of Indianapolis. On two occasions, he discharged a handgun during the robbery.
The criminal complaint filed earlier this month alleges that on April 27, 2016, at approximately 3:45 a.m., Gilder approached the Speedway gas station located at 5900 E 71st Street. The clerk, who was outside the building on a break, saw Gilder approach dressed in all black. She quickly ran back into the store and locked the front door. Gilder is alleged to have fired a handgun at the door, shattering the glass and narrowly missing the clerk.
The criminal complaint further alleges that a short while later, Gilder was seen driving a stolen vehicle near the robbery scene. IMPD officers attempted to stop the vehicle but Gilder jumped from the vehicle while it was still in gear. The stolen vehicle continued rolling and struck an officer’s patrol car. Officers continued to chase Gilder and apprehended him a few blocks away. Officers recovered a loaded 9mm handgun from the pursuit route.
This case was investigated by the Indianapolis Metropolitan Police Department and the Bureau of Alcohol Tobacco Firearms and Explosives.“This investigation is an example of our renewed focus on targeting those individuals committing violent crime in Indianapolis,” said Chief Troy Riggs. “I would like to thank the officers and detectives who worked tirelessly to take this violent individual off of our streets. We are appreciative of the US Attorney’s Office for their partnership and willingness to prosecute these cases at the federal level.”
“There is no place in our society for those who use firearms for violent, criminal purposes,” said Donald Soranno, Special Agent in Charge of ATF’s Columbus Field Division. “ATF will continue to work with our law enforcement partners to ensure that those who would do harm in our community are brought to justice.”
State level criminal charges were initially filed against Gilder by the Marion County Prosecutor’s Office. Those charges have been dismissed to allow for the federal prosecution of these acts.
According to Assistant U.S. Attorney Jeffrey D. Preston, who is prosecuting this case for the government, Gilder faces a minimum of 260 years in prison if convicted of all charges.
An indictment is only a charge and not evidence of guilt. All parties are presumed innocent until proved guilty in federal court.
Hancock County, WV man sentenced for possession of child pornographyRead the Press Release
WHEELING, WEST VIRGINIA – Ryan Bobby Schnettler, 25, of Weirton, West Virginia, was sentenced today to 87 months in prison for possession of child pornography, United States Attorney William J. Ihlenfeld, II, announced.
Schnettler was discovered in possession of child pornography in October 2015 in Hancock County, West Virginia. He pled guilty in February 2015 to one count of “Possession of Child Pornography.”
Assistant U.S. Attorney Stephen Vogrin prosecuted the case on behalf of the government. The West Virginia State Police investigated.
Senior U.S. District Judge Frederick P. Stamp, Jr. presided.
Hammond Woman Sentenced for Role in Tax Fraud SchemeRead the Press Release
NEW ORLEANS – U.S. Attorney Kenneth A. Polite announced that RAVEN HUGHES, age 28, of Hammond, was sentenced today after previously pleading guilty to mail fraud and aggravated identity theft for engaging in a multi-year tax fraud scheme.
U.S. District Judge Susie Morgan sentenced HUGHES to 36 months imprisonment, to be followed by 3 years of supervised release. Additionally, HUGHES was ordered to pay restitution in the amount of $119,050 to the Internal Revenue Service.
According to court documents, HUGHES obtained the name and social security number of unsuspecting individuals and used that information without their knowledge or authorization to prepare false tax returns that claimed large tax refunds. The refund checks were mailed to numerous Post Office Boxes throughout Louisiana that were opened by HUGHES, as well as to HUGHES’s residence in Hammond. Refund checks were also sent electronically via wire into one of HUGHES’s four bank accounts.
Once the tax refund checks were received, HUGHES falsely endorsed and cashed the checks. HUGHES also arranged for some of the refunds to be transmitted electronically into bank accounts under her control. In total, HUGHES caused not fewer than 148 federal income tax returns to be submitted in the names of at least 103 different individuals without their knowledge or authorization. As a result of the conduct described above, between 2009 and 2012 HUGHES received approximately $199,050.
U.S. Attorney Polite praised the work of the Internal Revenue Service – Criminal Investigation in investigating this matter. Assistant United States Attorney Jordan Ginsberg was in charge of the prosecution.
Green Bay Man Indicted on Federal Drug and Firearm ChargesRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on May 17, 2016, a federal grand jury returned an indictment against Edward J. Brantley (age: 38) of Green Bay, Wisconsin.
Brantley faces charges alleging he was a felon in possession of a firearm, possessed cocaine base with the intent to distribute, and possessed a firearm in furtherance of a drug conspiracy, contrary to Title 18, United States Code, Sections 922(g)(1), 924(c)(1)(A), and Title 21, United States Code, Sections 841(a) and 841(b)(1)(B). He faces penalties ranging from a mandatory ten years imprisonment up to a life sentence, a $5,000,000 fine, and a lifetime of supervised release.
This case was investigated by the Brown County Drug Task Force comprised of investigators from the Brown County Sheriff’s Department, Green Bay Police Department, Ashwaubenon Public Safety Department, and the De Pere Police Department. The case will be prosecuted by Assistant United States Attorney Daniel R. Humble.
An indictment is only a charge and is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government must prove him guilty beyond a reasonable doubt.
# # #
Fredericktown man charged wtih robbing a pharmacyRead the Press Release
A federal grand jury returned a one-count indictment charging Donald Boozer, 37, of Fredericktown, with a pharmacy robbery, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about August 24, 2014, Boozer took a controlled substance from a Rite Aid pharmacy in Uhrichsville, Ohio.
If convicted, the defendant’s sentence will be determined by the Court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Drug Enforcement Administration and the Uhrichsville Police Department. The matter is being prosecuted by Assistant United States Attorney David M. Toepfer.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Former President and CEO of Montgomery-Based Steel Company Convicted of Bankruptcy FraudRead the Press Release
Montgomery, Alabama – On Tuesday, May 17, 2016, a federal jury in Montgomery convicted Kennon W. Whaley, 51, from Auburn, Alabama on two counts of bankruptcy fraud for concealing assets of his business from the Bankruptcy Court and his creditors, announced George Beck Jr., U.S. Attorney for the Middle District of Alabama.
Whaley had been the president and CEO of Southeastern Stud & Components from the time the company was created in 1999. Southeastern Stud was located in Montgomery and was in the business of manufacturing light steel framing components to be used in commercial and industrial construction. At its peak in 2005, Southeastern Stud grossed over $34,000,000, had 125 full-time employees and distributed steel to customers throughout the United States.
By 2009, the company’s revenue had decreased substantially, so Whaley, on behalf of Southeastern Stud, filed for Chapter 11 bankruptcy protection in March of that year and the company remained in bankruptcy until October of 2011. Because Southeastern Stud was allowed to continue its operation during the bankruptcy, Whaley was required under the law to disclose all assets and property of the company to the Bankruptcy Court each month.
However, the evidence at trial showed that despite this requirement Whaley diverted the proceeds from a $260,000 insurance payment to the company in 2010 to pay off a personal gambling debt. The evidence showed that in January of 2010 Mr. Whaley traveled to the Wynn Las Vegas Casino where he incurred a $100,000 gambling debt during a trip of just four days. The evidence also showed that Wynn Las Vegas began to put pressure on Whaley to pay the debt beginning in February of 2010. Casino records from Wynn Las Vegas, and the bank records of the account where the insurance proceeds were deposited, showed that Whaley used the company’s insurance money pay off his gambling debt and to pay himself over $30,000 in cash. None of these transactions were ever disclosed by Whaley to the Bankruptcy Court as required.
The casino records also show that once his debt was paid off in October of 2010, Whaley made a return trip to Wynn Las Vegas during which he spent over $20,000 at the casino and sent a limousine to pick up his wife at the airport. At that time, Southeastern Stud was still in bankruptcy and approximately 70% of its employees had lost their jobs.
“Our bankruptcy laws are designed to provide financial protection for both creditors and debtors alike,” stated U.S. Attorney Beck. “When debtors attempt to illegally thwart the very laws that provide them protection and take advantage of this fraud in bankruptcy court, they will be punished.”
Whaley faces a maximum sentence of 5 years in prison on each count of Bankruptcy Fraud.
The case was investigated by the FBI after they received a tip from one of Whaley’s former employees. The case was prosecuted by Assistant United States Attorneys Brandon Essig and John Geer.
Former Director of World Ambassadors, LTD Pleads Guilty to Tax EvasionRead the Press Release
A Cedar Rapids man pled guilty yesterday in federal court in Cedar Rapids. Jon S. Petersen, 55, was convicted of one count of filing a false tax return for the calendar year 2013.
At the plea hearing, Petersen admitted filing a fraudulent income tax return. The return failed to include as income donations he diverted from World Ambassadors into his own personal checking account. In a plea agreement, Petersen admitted he used approximately $114,581 of those funds in 2013 for his own personal use, and such funds constituted taxable income to him. World Ambassadors is a nonprofit corporation.
From 2005-2015, Petersen claimed to struggle with a sex addiction. It became costly so Petersen would pay for this addiction through his credit cards, home equity lines of credit, and World Ambassadors donations.
From 2010-2014, the number of contributors to World Ambassadors ranged from 31 to 38 people. From January 2010 through December 2014, World Ambassadors received total deposits in the amount of $476,466.37. Of these deposits, $475,555.47 was deposited into Petersen’s personal checking account either by bank transfers from the World Ambassador’s account or checks payable to himself from that account. During this time period, World Ambassadors did not benefit from the use of these funds.
Sentencing before United States District Court Chief Judge Leonard T. Strand will be set after a presentence report is prepared. Petersen remains free on bond. Petersen faces a mandatory minimum sentence of three years’ imprisonment without the possibility of parole, a fine of not more than $250,000, a $100 special assessment, and up to 1 year of supervised release following any imprisonment.
The case is being prosecuted by Assistant United States Attorney Matthew J. Cole and was investigated by the Internal Revenue Service.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 16-CR-39-LTS.
Follow us on Twitter @USAO_NDIA.
Former Clayton County Police Officer Charged with Soliciting BribesRead the Press Release
ATLANTA – Former Clayton County Police Department Officer Grant Kidd, Jr., has been arraigned after being charged for soliciting a bribe to dismiss pending criminal charges against two Clayton County defendants.
“A law enforcement officer who is allegedly looking to line his own pockets by obstructing justice undermines the dedication and hard work of his fellow officers as well as the community’s trust and respect for its police officers,” said U. S. Attorney John Horn.
“When a law enforcement officer strays from his sworn oath, as is alleged in our investigation and in the resulting federal grand jury indictment, it is extremely disheartening to us and others who work so hard within the criminal justice system and do so with integrity and commitment. Due to the vast potential harm that these cases can cause, the FBI will continue to dedicate significant resources toward investigating such matters involving allegations of public corruption involving police officers,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
According to U. S. Attorney Horn, the indictment, and other information presented in court: Kidd was employed by the Clayton County Police Department (CCPD) as a patrol officer. In July 2015, Kidd allegedly used a friend to contact two Clayton County criminal defendants who were charged with theft and forgery. Kidd arranged to meet with the two defendants in a parking lot of a shopping center shortly after they were released from the Clayton County Jail. During a recorded conversation, Kidd allegedly assured the defendants that their charges would be “administratively dismissed” if they paid him $1,500. Kidd even offered a money back guarantee to the defendants if their criminal charges were not dismissed. After these allegations surfaced, Kidd resigned from the CCPD.
Grant Kidd, Jr., 52, of Hampton, Georgia, was indicted by a federal grand jury May 11, 2016. He was arraigned before United States Magistrate Judge Russell G. Vineyard.
Members of the public are reminded that the indictment only contains charges. The defendant is presumed innocent of the charges and it will be the government’s burden to prove the defendant’s guilt beyond a reasonable doubt at trial.
This case is being investigated by the Federal Bureau of Investigation. Assistant United States Attorney Brent Alan Gray is prosecuting the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
East Alton Man Indicted for Production and Receipt of Child PornographyRead the Press Release
A federal grand jury sitting in East St. Louis has returned a two-count indictment against Steven A. Yon, 27, of East Alton, Illinois, for Production of Child Pornography and Receipt of Child Pornography, James L. Porter, Acting United States Attorney for the Southern District of Illinois announced today. The offenses charged in the indictment allege that on or about August 20, 2014, Yon knowingly induced a minor to engage in sexually explicit conduct for the purposes of producing a visual depiction of that conduct and that on or about August 24, 2014, Yon knowingly received visual depictions containing child pornography using a facility of interstate commerce.
A trial date has not yet been set. If convicted of Production of Child Pornography, Yon faces a prison term of not less than fifteen (15) years up to life, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life. If convicted of Receipt of Child Pornography, Yon faces a term of imprisonment of not less than five (5) years up to twenty (20) years, a fine up to $250,000, and a term of supervised release of not less than five (5) years up to life.
An Indictment is a formal charge against a defendant that is comprised of the essential facts constituting the offense charged. Under the law, a defendant is presumed to be innocent of a charge until proven guilty beyond a reasonable doubt to the satisfaction of a jury.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in 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."
This investigation was conducted by the Madison County Sheriff’s Department and the Federal Bureau of Investigation’s Metro East Cyber Crimes and Analysis Task Force. The case is assigned to Assistant United States Attorney Ali Summers for prosecution.
Department of Justice and Federal Trade Commission Encourage Puerto Rico to Consider Expanding the Scope of Practice of OptometristsRead the Press Release
Agencies Submit Joint Statement Regarding Proposed Legislation Addressing the Authority of Optometrists to Utilize and Prescribe Medications for Treatment and Diagnosis in Puerto Rico
The Department of Justice’s Antitrust Division and the staff of the Federal Trade Commission (FTC) have issued a joint statement encouraging the Puerto Rican legislature to consider expanding the services that optometrists can provide. The statement describes the potential benefits to patients of enhanced competition among vision care providers, including greater access to timely and cost competitive care. It recommends that the legislature only maintain restrictions on optometrists to utilize and prescribe medications for treatment and diagnosis that are necessary to ensure patient health and safety.
The joint statement is in response to a request from Puerto Rico Representative Jose L. Báez Rivera, Chair of the Public Safety Committee in the Puerto Rico House of Representatives. The request asked for views on the possible competitive effects of Puerto Rico Senate Bill 991 (SB 991), which would expand the scope of practice for optometrists in Puerto Rico and permit them to use and prescribe medications to diagnose and treat diseases of the eye.
“According to the Centers for Disease Control and Prevention, Puerto Rico has the highest percentage of adults in the United States and its territories with blindness or severe difficulty seeing,” said Principal Deputy Assistant Attorney General Renata Hesse, head of the Justice Department’s Antitrust Division. “As our statement explains, increasing competition among eye care providers in Puerto Rico by allowing optometrists to perform more eye care services can help expand access to cost effective and timely care. Whenever it is consistent with patient safety, competition should play a key role in controlling health care costs.”
The agencies’ comments are limited to SB 991’s effect on the authority of optometrists to use and prescribe medications and its competitive effects. SB 991 would provide optometrists in Puerto Rico – like optometrists in all states, the District of Columbia, and other U.S. territories – with the authority to prescribe at least some medications for the diagnosis and treatment of eye diseases. Providing optometrists a pharmacological role in the care they provide, with conditions the legislature finds appropriate to ensure patient safety, has the potential to bring the benefits of competition to Puerto Rican health care consumers.
Comments on S.B. 8991 - Optometry Letter
Deming Man Pleads Guilty to Narcotics Trafficking and Conspiracy ChargesRead the Press Release
ALBUQUERQUE – Ramiro Trevizo-Granillo, 33, of Deming, N.M., pled guilty today in federal court in Las Cruces, N.M., to narcotics trafficking and conspiracy charges. Under the terms of his plea agreement, Trevizo-Granillo will be sentenced to 156 months in federal prison followed by a term of supervised release to be determined by the court.
Trevizo-Granillo was arrested on July 30, 2015, on a criminal complaint charging him with participating in a methamphetamine trafficking conspiracy and conspiracy to tamper with a witness. The complaint alleged that Trevizo-Granillo provided an individual with 30 grams of methamphetamine on July 4, 2014, with the understanding that the purchaser would be selling the drugs to others. The complaint further alleged that while Trevizo-Granillo was detained on the aforementioned methamphetamine distribution charge, he engaged in a recorded telephone conversation with another person during which he discussed a scheme to prevent a witness from testifying against him.
Trevizo-Granillo was subsequently indicted on Oct. 15, 2015, and charged with participating in a methamphetamine distribution conspiracy on July 4, 2014, in Luna County, N.M., and conspiracy to tamper with a witness on July 4, 2015.
During today’s proceedings, Trevizo-Granillo pled guilty to the indictment and admitted that on July 4, 2014, he sold 30 grams of methamphetamine to another person. Trevizo-Granillo further admitted that on July 5, 2015, he had a conversation with a friend about making a cooperator involved in his case “disappear” so the cooperator would not testify against him.
Trevizo-Granillo remains in federal custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Deming office of Homeland Security Investigations and the Deming Police Department. Assistant U.S. Attorney Mark A. Saltman of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Defendant Sentenced to Life in Prison for 2004 Triple Murder in Indian CountryRead the Press Release
A defendant was sentenced today in the Eastern District of Oklahoma to three consecutive terms of life in prison for the murder of three people in March 2004 in Indian Country, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Mark F. Green of the Eastern District of Oklahoma.
“More than a decade after committing three brutal murders, the defendant has been held to account for his crimes,” said Assistant Attorney General Caldwell. “After waiting many years for some closure, I hope the families of the defendant’s victims take some solace in today’s sentences.”
“Twelve years have passed since these three innocent victims were brutally murdered,” said U.S. Attorney Green. “This case has traveled through many courts, both state and federal. Finally, today there can be closure for these families. I sincerely thank the prosecution team for a job well done!”
On Oct. 29, 2015, David Brian Magnan, 53, was convicted after a jury trial in the shooting deaths of three victims, James Howard, Karen Wolf and Lucilla McGirt, who were members of the Seminole Nation. U.S. District Court Judge Ronald A. White of the Eastern District of Oklahoma presided over the trial and imposed today’s sentence. Magnan was sentenced to an additional 36 months to run consecutive to the life sentences for his probation being revoked on a prior federal arson conviction.
The evidence presented at trial established that in the early morning hours of March 2, 2004, Magnan arrived with two other men at Howard’s home, where the victims had celebrated a birthday the prior evening. Armed with a pistol, Magnan confronted an individual outside of the house and a fight ensued, after which Magnan shot the individual in the abdomen. Magnan then entered the home where he found the three victims asleep. He first confronted Howard, who he shot multiple times in the chest as he lay in bed. Magnan then moved to a bedroom where he found McGirt and Wolf sleeping. Magnan shot Wolf in the head and shot McGirt in the shoulder and head. McGirt survived that evening and identified Magnan as the shooter, but she succumbed to her wounds two weeks later. Following the shootings, Magnan and the two other men fled the scene and hid the murder weapon, which police subsequently recovered.
The Oklahoma State Bureau of Investigation, the Seminole County Sheriff’s Office, the Seminole Nation Lighthorse Police and the FBI investigated the case. Senior Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Edward Snow of the Eastern District of Oklahoma prosecuted the case.
Defendant Sentenced to Life in Prison for 2004 Triple Murder in Indian CountryRead the Press Release
WASHINGTON – A defendant was sentenced today in the Eastern District of Oklahoma to three consecutive terms of life in prison for the murder of three people in March 2004 in Indian Country, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Mark F. Green of the Eastern District of Oklahoma.
“More than a decade after committing three brutal murders, the defendant has been held to account for his crimes,” said Assistant Attorney General Caldwell. “After waiting many years for some closure, I hope the families of the defendant’s victims take some solace in today’s sentences.”
“Twelve years have passed since these three innocent victims were brutally murdered,” said U.S. Attorney Green. “This case has traveled through many courts, both state and federal. Finally, today there can be closure for these families. I sincerely thank the prosecution team for a job well done!”
On Oct. 29, 2015, David Brian Magnan, 53, was convicted after a jury trial in the shooting deaths of three victims, James Howard, Karen Wolf and Lucilla McGirt, who were members of the Seminole Nation. U.S. District Court Judge Ronald A. White of the Eastern District of Oklahoma presided over the trial and imposed today’s sentence. Magnan was sentenced to an additional 36 months to run consecutive to the life sentences for his probation being revoked on a prior federal arson conviction.
The evidence presented at trial established that in the early morning hours of March 2, 2004, Magnan arrived with two other men at Howard’s home, where the victims had celebrated a birthday the prior evening. Armed with a pistol, Magnan confronted an individual outside of the house and a fight ensued, after which Magnan shot the individual in the abdomen. Magnan then entered the home where he found the three victims asleep. He first confronted Howard, who he shot multiple times in the chest as he lay in bed. Magnan then moved to a bedroom where he found McGirt and Wolf sleeping. Magnan shot Wolf in the head and shot McGirt in the shoulder and head. McGirt survived that evening and identified Magnan as the shooter, but she succumbed to her wounds two weeks later. Following the shootings, Magnan and the two other men fled the scene and hid the murder weapon, which police subsequently recovered.
The Oklahoma State Bureau of Investigation, the Seminole County Sheriff’s Office, the Seminole Nation Lighthorse Police and the FBI investigated the case. Senior Trial Attorney Michael Sheckels of the Criminal Division’s Human Rights and Special Prosecutions Section and Assistant U.S. Attorney Edward Snow of the Eastern District of Oklahoma prosecuted the case.
Cincinnati Woman Indicted for Embezzlement Scheme, Defrauding IRSRead the Press Release
CINCINNATI – A federal grand jury has charged Angelia Zwick, a/k/a Angelia Strunk, 45, of Cincinnati, with one count of wire fraud and three counts of willfully filing a false income tax return with the Internal Revenue Service (IRS).
Benjamin C. Glassman, Acting United States Attorney for the Southern District of Ohio, Kathy A. Enstrom, Special Agent in Charge, Internal Revenue Service (IRS), Criminal Investigation, Cincinnati Field Office, and Mark Porter, Special Agent in Charge, U.S. Secret Service, announced the indictment that was returned today.
The indictment alleges that from approximately July 2009 through May 2013, Angelia Zwick worked for a Cincinnati employer and devised a scheme to defraud her employer by embezzling funds in excess of her authorized pay and compensation. Zwick allegedly wired the stolen funds from her employer’s bank account to a bank account for Amerihealth and Life Solutions, LLC (“Amerihealth”), a company owned by Zwick.
Zwick allegedly took the refunds intended for her employer’s clients and diverted those refunds into bank accounts controlled by Zwick in the amount of approximately $328,000.
It has been alleged that Zwick filed false income tax returns with the IRS for the 2010, 2011, and 2012 income tax years. For the 2010 income tax year, Zwick failed to report as income the funds she embezzled from her employer and she claimed false expenses for Amerihealth. For the 2011 and 2012 income tax years, Zwick claimed false expenses for Amerihealth.
“No matter what the source of income, all income is taxable,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The prosecution of individuals who intentionally conceal income and evade taxes is a vital element of the IRS' enforcement strategy.”
Wire fraud is a crime punishable by up to 20 years imprisonment, and filing a false income tax return with the IRS in a crime punishable by up to three years imprisonment.
Acting U.S. Attorney Glassman commended the investigation of this case by the IRS and U.S. Secret Service, and Assistant U.S. Attorney Timothy Mangan, who is prosecuting the case.
An indictment merely contains allegations, and the defendant is presumed innocent unless proven guilty in a court of law.
Child exploitation charges filed in several cases as part of Project Safe ChildhoodRead the Press Release
Criminal charges were filed in federal court against two men for sexually exploiting children, law enforcement officials said.
Charges in the cases, which are not related, coincide with the 10th anniversary of Project Safe Childhood, the Justice Department’s program to combat the sexual exploitation of children, both online and in person.
Eric Shotwell, 41, of Minerva, was charged with crossing state lines to engage in sexually explicit conduct with a minor after police recovered a missing 14-year-old Missouri girl at his home in Stark County.
The girl was reported missing on March 11. Police determined the girl was using the “TextNow” app on her phone and traced it to Shotwell’s home on West 1st Street. The girl was recovered on March 17 and Shotwell was arrested, according to court documents.
The girl told investigators she met Shotwell on a dating site she was on to make new friends. She texted with Shotwell for two months before he wanted to meet in person. She stated Shotwell provided nude photos of himself and she then sent nude photos of herself. He then picked her up at a pizza shop in Missouri. They returned to Ohio and Shotwell engaged in sexual acts with the girl even though he knew she was 14, according to court documents.
The girl told investigators that Shotwell became violent at his home, punching her, slapping her, pushing her into a wall and calling her a “stupid bitch” and “stupid whore”. He placed chains around feet and neck, tightening the chains until she passed out. Investigators found chains in Shotwell’s bedroom when they searched his home, according to court documents.
In another case, James D. Sullivan, 58, of Cleveland, was charged with one count of attempted production of child pornography and one count of possession of child pornography. Federal agents searched his computer after he was arrested for filming girls and women in the shower at Geneva State Park on July 18. The search revealed Sullivan used the laptop to view child pornography and images of children being sexually assaulted, according to court documents.
At the time of his arrest, Sullivan was on probation after having served more than 25 years in state prison for raping a 12-year-old girl, photographing the act, and assaulting other child victims, according to court documents.
A grand jury this week indicted Richard Purnell, 55, of Parma, on one count of sex trafficking of children. Purnell knowingly solicited a minor to engage in commercial sex acts between October 2015 and May 6, 2016. He sexually assaulted a 13-year-old girl who was advertised on the web site backpage.com. These assaults continued after the girl turned 14, according to court documents.
Experts offer the following tips for parents and guardians about how to help their children avoid being exploited:
- Talk to your kids about the topic from an early age and establish open lines of communication.
- Know what your child is looking at, and who they’re talking to.
- Think beyond “stranger danger” – as our relationships are more social-media focused, some kids don’t think of someone online as a stranger, even if they’ve never met in person.
- Parents should not be afraid to technology. Educate yourself about apps like kik and whisper, which allow users anonymity and don’t verify ages. And find out your child is using.
- Monitor your children’s use of the internet and their phone; keep your computer in an open, common room of the house.
- Tell your kids why it’s so important not to disclose personal information online.
- Check your kids’ profiles and what they post online.
- Report inappropriate activity to the web site or law enforcement immediately.
- Explain to your kids that once images are posted online they lose control of them and can never get them back.
- Only allow your kids to post photos or any type of personally identifying information on websites with your knowledge and consent.
- Trust your gut and parental intuition.
For more information for both parents and children about how to avoid being exploited, go to: www.justice.gov/ndoh/defending-children, www.justice.gov/psc, or www.fbi.gov/about-us/investigate/vc_majorthefts/cac
Federal, state and local law enforcement regularly investigate and prosecute child exploitation cases.
This morning in Toledo, former Northwood High School teacher Frank Stefan, 59, was sentenced to 10 years in prison for possession of child pornography. Stefan had on his computers nearly 2,000 videos and images of children being raped and sexually assaulted by adults. He also admitted that he had an inappropriate sexual relationship with a 16-year-old student in 2005 and attempted to have a relationship with another student during the 2009-10 school year, according to court documents.
David Guevara, Sr., 35, of Youngstown, was charged Wednesday via criminal information with transportation of a minor to engage in illegal sexual activity. Guevara met a 15-year-old girl last summer. He engaged in a sexual relationship with the minor and traveled with her to Philadelphia, even though he knew she was just 15 years old. Guevara stated that it was his intent to have a child with the minor and to move her and the baby to Mexico, according to court documents.
“These are the latest in a steady stream of cases in which people exploit our children,” said Acting U.S. Attorney Carole S. Rendon. “Law enforcement will continue to do all it can to lock up these predators. Parents, guardians and relatives need to do all they can to know who children are communicating with, whether it’s over their phones, on their computers on in person.”
“Child predators, like Eric Shotwell, build trust through coercion techniques to ultimately satisfy their perverse, criminal desires,” said Stephen D. Anthony, Special Agent in Charge of the Federal Bureau of Investigation’s Cleveland Office. “The FBI commends the Great Plains, Missouri, and Minerva Police Departments for their swift efforts in rescuing this young girl, and the Canton Police Department for their hard work on this case. The FBI will continue efforts of supporting and collaborating with our law enforcement partners in order to educate and protect our children.”
“Sexual exploitation of children is an alarming concern in our society,” said Secret Service Special Agent in Charge of the Cleveland Field Office, Craig Wisniewsky. “The Secret Service is committed to work closely with the National Center for Missing and Exploited Children and our law enforcement partners to identify and prosecute these predators.”
“The Stefan case is particularly troubling because of the defendant's prior position of trust with children,” said Marlon Miller, Special Agent in Charge of HSI Detroit. “HSI actively works with our law enforcement partners in our shared fight against those who sexually exploit children. Removing these predators from our communities and bringing them to justice is a responsibility we take very seriously. We applaud the court's significant prison sentence.”
“The law enforcement partnership to protect children from predators cuts across all jurisdictional lines because we all are deeply committed to our mission,” said Holly Welsh, chief prosecutor of the Internet Crimes Against Children Task Force. “Our Ohio Internet Crimes Against Children Task Force involves hundreds of police agencies and prosecutors around the state, it receives significant funding from the Department of Justice, and it works hand in hand with the FBI and federal prosecutors to root out and punish those who exploit children. We also work on the prevention side to help parents, teachers and children recognize the dangers that of the Internet and use it safely.”
Shotwell is being prosecuted by Assistant U.S. Attorney Michael A. Sullivan following an investigation by the FBI. James Sullivan is being prosecuted by Assistant U.S. Attorney Carol Skutnik following an investigation by the United States Secret Service and Ohio State Highway Patrol. Purnell is being prosecuted by Assistant U.S. Attorney Bridget Brennan following an investigation by the FBI. Stefan was prosecuted by Assistant U.S. Attorney Tracey Tangeman following an investigation by Homeland Security Investigations. Guevara is being prosecuted by Assistant U.S. Attorney Benedict Gullo following an investigation by the FBI, the Mahoning County Sheriff’s Office and the Youngstown Police Department.
A charge 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.
If convicted, the defendants’ sentences will be determined by the court after review of factors unique to this case, including the defendants’ prior criminal records, if any; their role in the offenses; and the characteristics of the violations. In all cases, the sentences will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
California man charged with applying for passport with false identityRead the Press Release
A federal grand jury returned a two-count indictment charging Erwin Mazariegos, Jr., 33, of Los Angeles, with possessing and using a fraudulently obtained State of Ohio identification card, in the name of another person, in an attempt to obtain a U.S. passport, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
Mazariegos knowingly transferred, possessed and used, without lawful authority, the identification of another to make false statements in an application for a U.S. passport. Mazariegos, Jr., attempted to obtain the passport from a Post Office in Warren, Ohio, according to the indictment.
Assistant United States Attorney Karrie D. Howard is prosecuting the case, following an investigation by the U.S. Bureau of Diplomatic Security.
If convicted, the court will determine the defendant’s sentence after a review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense, and the characteristics of the violation. In all cases, the sentence will not exceed the statutory maximum. In most cases, it will be less than the maximum.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government's burden to prove guilt beyond a reasonable doubt.
Bullitt County, Kentucky, Man Sentenced to 360 Months in Prison for Production of Child PornographyRead the Press Release
LOUISVILLE, Ky. – A Bullitt County, Kentucky, man was sentenced today to 360 months in prison, followed by a life-time of supervised release, by Senior United States District Judge Thomas B. Russell, for the production of child pornography, announced United States Attorney John E. Kuhn, Jr.
“Thirty years is a just sentence for Michael Mudd, who exploited two young children to manufacture child pornography," stated U.S. Attorney Kuhn. “This successful prosecution was part of Project Safe Childhood, a Department of Justice initiative launched ten years ago this month to combat the growing epidemic of child sexual exploitation and abuse. We will continue to work with our law enforcement partners to rescue child victims and pursue criminals like Mr. Mudd who prey on them."
Michael Mudd, 47, previously admitted in court that he had photographed and video recorded two male children. He created the images inside his residence as well as outside at a small lake near the trailer park where he lived. At least one of the children was identified and a staff member with Family and Children’s Place in Louisville, Kentucky, conducted a forensic interview with the 12-year-old boy. During the interview, the child described multiple occasions during which Mudd photographed and video recorded him engaging in sexually explicit conduct. According to the child, the recording/photographing took place on multiple occasions dating back to the fall of 2013 and continuing to May 2014. The computer forensic examination of the items seized from Mudd’s home revealed the existence of the videos / photographs described by the boy.
Mudd was arrested on August 25, 2014, on a criminal complaint. A federal grand jury indicted Mudd on September 18, 2014. Mudd pleaded guilty to two separate counts of producing child pornography on June 17, 2015.
According to the record of this case, law enforcement officials executed a federal search warrant on Mudd’s residence on August 7, 2014. Mudd was at home during execution of the warrant. Law enforcement officials seized a number of items, including computers, cellular telephones and other digital devices. The items were submitted for forensic examination.
While law enforcement officials were on the scene of the search, neighbors approached and expressed concern about Mudd’s conduct with young boys in the neighborhood. Within 24 hours of executing the warrant, an adult female made contact with law enforcement. She reported that her 12-year-old son told her that Mudd had recorded her son engaging in sexually explicit conduct.
Assistant United States Attorney Jo E. Lawless prosecuted the case. The United States Postal Inspection Service, with assistance from the Bullitt County Sheriff’s Office, conducted the investigation.
***
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."
Buffalo Man Sentenced for Distributing OxymorphoneRead 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 Vincent Sawicki, 64, of Buffalo, NY, who was convicted of distribution of oxymorphone, was sentenced to three years probation with six months of home detention by U.S. District Judge Richard J. Arcara.
Assistant U.S. Attorney Frank T. Pimentel, who handled the case, stated that on April 11, 2011, the defendant sold 40 Opana tablets to an undercover officer at 2175 South Park Avenue in Buffalo. On one occasion the previous month, the defendant sold 70 oxycodone tablets to an individual at the defendant’s residence.
The sentencing is the result of an investigation on the part of the Drug Enforcement Administration, under the direction of James J. Hunt, Special Agent in Charge, New York Field Division.
Buffalo Man Pleads Guilty to Sex TraffickingRead 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 Kenneth White, 39, of Buffalo, NY, who was convicted of sex trafficking of a minor, was sentenced to 156 months in prison by U.S. Senior District Judge William M. Skretny.
Assistant U.S. Attorneys John E. Rogowski and Scott S. Allen Jr., who handled the case, stated that White utilized violent force to cause five victims to engage in commercial sex acts between 2006 and 2012. The sex acts occurred in cities across the country including New York, Philadelphia, Pittsburgh, Law Vegas, Atlantic City, and others. The defendant, who utilized the internet to advertise the victims and solicit customers, received all of the money earned by the victims as a result of these acts.
White knew that one of the victims (Victim1) was under 18 years old. The defendant initially made contact with Victim 1 through a chat line. On the first night the defendant met the Victim in person, White gave the child alcohol and marijuana, and sexually assaulted her. Ultimately, Victim 1 agreed to work for the defendant because (in her later words) she “did not have any money, was hungry, and needed to take a shower.” Victim 1 provided commercial sex acts for at least three customers a day.
The defendant often used force and violence against the victims. For instance, when the victims broke the defendant’s rules, he charged them “debts.” The rules included: victims were not allowed to make direct eye contact with the defendant and they were not allowed to possess their own cellular phones. When victims broke the “rules,” in addition to having to repay the financial “debts” through commercial sex acts, the defendant raped and battered his victims.
Other examples of force and violence used by the defendant:
• Victim 2 watched White violently beat his co-defendant with a broom handle, belt, and hair straightener.
• The defendant forced Victim 2 to perform commercial sex acts while severely bruised and sleep deprived and forced her to stay awake by forcing her to consume Red Bull and pills. At times, the defendant forced Victim 2 to have sex with 10 to 20 men per day.
• Victim 4 was also forced to watch the defendant beat his co-defendant. In June 2009, the defendant impregnated Victim 4, forced her to have an abortion, and then forced her to perform commercial sex acts on the same day as the procedure. Victim 4 was raped by a client on this same day.
• The defendant beat Victim 5 while she was seven months pregnant.
As a result of forcing his victims to perform commercial sex acts through violence and coercion, the defendant received hundreds of thousands of dollars.
The sentencing is the result of an investigation on the part of Special Agents of the Federal Bureau of Investigation, under the direction of Special Agent in Charge Adam S. Cohen, and the Internal Revenue Service, Criminal Investigations Division, under the direction of under the direction of Special Agent-in-Charge Shantelle P. Kitchen.Bronx, New York Man Charged in Identity Theft SchemeRead the Press Release
PHILADELPHIA - Edward Terrell Providence, 51, of the Bronx, New York, was charged by Indictment, unsealed today, with one count of bank fraud and six counts of aggravated identity theft, announced United States Attorney Zane David Memeger. Providence was arrested this morning.
According to the indictment, Providence posed as legitimate PNC Bank account holders to obtain ATM cards for their accounts. Other co-schemers then used the cards to withdraw more than $388,000 by purchasing goods at various merchants and withdrawing cash from ATM machines.
If convicted, Providence faces a mandatory term of two years in prison with a maximum possible sentence of 42 years, up to five years of supervised release, a possible fine, and a $700 special assessment.
The case was investigated by the Homeland Security Investigations and is being prosecuted by Assistant United States Attorney Michael S. Lowe.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Bronx Man Charged in Manhattan Federal Court with 2013 Home-Invasion Robbery and MurderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Division of the Federal Bureau of Investigation (“FBI”), and William J. Bratton, the Commissioner of the New York City Police Department (“NYPD”), announced the return of a Superseding Indictment charging TERRILL STATON with the October 29, 2013, home-invasion robbery and murder of Erwin Elliot, 44, in the Bronx, New York.
Manhattan U.S. Attorney Preet Bharara stated: “As alleged, the defendant went into Erwin Elliot’s home with a gun, robbed him, and murdered him. Thanks to the dogged efforts of the FBI and the NYPD, the defendant is now being held accountable for his alleged brutal crimes.”
FBI Assistant Director-in-Charge Diego Rodriguez stated: “Today, Terrill Staton faces justice for his alleged role in the brutal home-invasion robbery and murder of a Bronx resident. The FBI would like to thank our law enforcement partners for their assistance with this case.”
NYPD Commissioner William Bratton said: “I want to commend the NYPD detectives and our law enforcement partners who were integral to this indictment, which we hope will offer some consolation to the family who lost their loved one to this violent act.”
As alleged in the Superseding Indictment,[1] on October 29, 2013, STATON carried out a home-invasion robbery of Erwin Elliot, a marijuana dealer, at 642 East 221st Street in the Bronx. In the course of the robbery, STATON shot and killed Elliot.
* * *
STATON was already in federal custody, and will be arraigned on the Superseding Indictment before U.S. District Judge Naomi Reice Buchwald at a date to be determined.
A chart containing the charges and maximum penalties is below. The statutory maximum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
Mr. Bharara praised the outstanding investigative work of the FBI and the NYPD. Mr. Bharara also thanked the Bronx District Attorney’s Office for its assistance in the case.
The case is being handled by the Office’s Violent and Organized Crime Unit. Assistant United States Attorneys Hadassa Waxman and Michael Gerber are in charge of the prosecution.
The charges contained in the Indictment are merely accusations, and the defendant is presumed innocent unless and until proven guilty.
CHARGE
MAXIMUM PENALTY
Robbery conspiracy
20 years in prison
Robbery
20 years in prison
Murder
Life in prison
Mandatory minimum:
5 years in prison, to be imposed consecutively to any other sentence
[1] As the introductory phrase signifies, the entirety of the text of the Indictment and the descriptions of the Indictment set forth below constitute only allegations, and every fact described should be treated as an allegation.
Boca Raton Attorney Sentenced to 2 ½ Years in Prison for Tax EvasionRead the Press Release
A Boca Raton attorney was sentenced to 30 months in prison, to be followed by three years of supervised release, and was ordered to pay restitution in the amount of $1.9 million for evading the payment of approximately $1,501,724 in income tax due to the Internal Revenue Service (IRS) for calendar years 1997, 1999, 2001, 2002, and 2004 through 2007, by concealing his income, assets, and liabilities.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Kelly R. Jackson, Special Agent in Charge, Internal Revenue Service, Criminal Investigation (IRS-CI), made the announcement.
William J. Reilly, 62, previously pled guilty to one count of tax evasion, in violation of Title 26, United States Code, Section 7201.
According to court documents, Reilly was an attorney and member of the New York Bar who owned William J. Reilly, Esq. P.C., a law firm through which the defendant practiced securities law. The law firm operated in New York City until 1998, when Reilly moved his law practice to Boca Raton, Florida.
From 1992 through 1997, Reilly worked as the outside securities counsel for a corporation and was paid, in part, with options to purchase stock in the corporation. In 1997, Reilly exercised some of his stock options and then sold some of the shares for more than $1.6 million.
From October 1997 through January 1998, shortly after exercising his stock options, Reilly acquired significant assets, including two residences in Boca Raton, Florida, a residence in Chittenden, Vermont, and oceanfront property in Portsmouth, Rhode Island. Only one of these assets, a Boca Raton residence, was titled in Reilly’s name. On May 17, 1999, Reilly purchased a ten acre parcel of land located across the road from his Chittenden, Vermont home, and Reilly used a shell company to hold title to this land. The Portsmouth land, where Reilly began to construct a home, was also transferred to the name of a shell corporation. Reilly also purchased a 2001 Jaguar XJ8 and a 2002 Chevrolet Suburban in the name of a nominee.
From 2005 through 2010, Reilly used bank accounts for his law firm and the shell corporation to receive personal income, transfer funds into his personal accounts, and pay personal expenses directly, including his Visa credit card account, his children’s private school and college tuition, support his daughter’s equestrian business, make vehicle and mortgage payments, contribute to his son’s political campaign, and purchase more than $50,000 in tickets for sporting events and concerts. Reilly also caused clients and others who owed money to the defendant to pay monies to shell corporations controlled by Reilly or to pay Reilly’s personal expenses directly.
Mr. Ferrer commended the investigative efforts of IRS-CI. This case was prosecuted by Assistant U.S. Attorneys Ellen L. Cohen and Stephanie D. Evans.
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
Bangor Man Pleads Guilty to Distribution of Crack CocaineRead the Press Release
Contact: Joel B. Casey
Assistant United States Attorney
Tel: (207) 945-0373Bangor, Maine: United States Attorney Thomas E. Delahanty II announced that Syriane Baldwin, a/k/a “Del,” 29, of Bangor, Maine, pled guilty in U.S. District Court in Bangor, Maine to distribution of cocaine base, commonly referred to as “crack.” The charge carries a maximum potential penalty of 20 years imprisonment, a minimum of three years supervised release, and a maximum $1,000,000 fine.
According to Court records, on September 5, 2014 in Bangor, the defendant distributed a quantity of crack to a person who was assisting government agents in exchange for $300. A grand jury indicted Baldwin on the distribution charge in September of 2015. Baldwin will be sentenced following the completion of a presentence report.
The case was investigated by officers and agents from the Maine Drug Enforcement Agency, the New Haven, Connecticut Office of the Bureau of Alcohol Tobacco Firearms and Explosives, and the City of New Haven Police Department.
B. Braun Medical Inc. Agrees to Resolve Criminal Liability Relating to its Sale of Contaminated SyringesRead the Press Release
The Contaminated Syringes That Infected Patients Were the Subject of a Recall
Drug and medical device company B. Braun Medical Inc. (B. Braun) has agreed to pay $4.8 million in penalties and forfeiture and up to an additional $3 million in restitution to resolve its criminal liability for selling contaminated B. Braun pre-filled saline flush syringes in 2007, the Department of Justice announced today.
The B. Braun saline syringes had a B. Braun label but were manufactured by another company. Today’s resolution includes a non-prosecution agreement that requires B. Braun to implement additional practices designed to increase its oversight of its product suppliers to prevent future sales of contaminated products. B. Braun, a medical device manufacturer, has global headquarters in Melsungen, Germany, and corporate headquarters in Bethlehem, Pennsylvania, with primary manufacturing facilities in Allentown, Pennsylvania, and Irvine, California.
“The Federal Food, Drug and Cosmetic Act (FDCA) prohibits companies from selling contaminated products, even when the company did not make the product itself,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Companies must take reasonable steps to ensure that their suppliers are making quality products that help rather than harm patients. Today’s settlement shows that the government will continue to hold companies accountable for failing to fulfill this critically important responsibility.”
“Patients were infected by adulterated syringes distributed by B. Braun,” said Acting U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “This agreement helps to provide justice for the victims and to deter such future conduct by distributors of medical devices.”
According to the agreed upon statement of facts that accompany the non-prosecution agreement, in March 2006, B. Braun started buying B. Braun saline syringes from AM2PAT, Inc. (AM2PAT), which manufactured the syringes at a small facility in North Carolina. The saline solution in pre-filled saline flush syringes must be sterile because it can enter a patient’s bloodstream when the syringes are used to flush out or clean medical devices that provide access to a patient’s veins, such as central lines, ports and short peripheral catheters.
As noted in the statement of facts, B. Braun was aware of manufacturing problems at AM2PAT, even before it began purchasing syringes from AM2PAT. In separate audits, both the U.S. Food and Drug Administration (FDA) and B. Braun had found that AM2PAT was having problems complying with current good manufacturing practices. Although AM2PAT addressed some of these initial problems, additional problems persisted. In the spring of 2007, AM2PAT notified B. Braun that AM2PAT intended to move to a new manufacturing facility and change the company that would sterilize the B. Braun saline syringes through a new radiation sterilization process. Sterilization, a vital step in the manufacture of these syringes, can be complex. Before B. Braun’s quality department approved either of these changes, B. Braun began selling B. Braun saline syringes made at AM2PAT’s new facility and sterilized by the new sterilization company. B. Braun later approved both of these changes even though B. Braun had already received complaints about the syringes changing colors and information from AM2PAT that it was making changes to its radiation process to avoid “overcooking” the syringes. B. Braun approved AM2PAT’s facility move without ever seeing AM2PAT’s operations at its new facility or confirming AM2PAT’s representations that it had properly validated its clean room and equipment after the move.
Less than two months after B. Braun started selling syringes that AM2PAT made at its new facility with the new sterilization company, B. Braun recalled all of them because the radiation sterilization process caused dangerous white particles to develop in the saline inside the syringes.
After the recall, AM2PAT told B. Braun that it gave B. Braun incorrect information about its new radiation sterilization process. It also sent B. Braun information showing that AM2PAT moved manufacturing equipment to its new facility without validating that the equipment worked as expected after the move. As explained in the statement of facts, even with this new information, B. Braun resumed buying B. Braun saline syringes from AM2PAT without going to AM2PAT’s new facility.
Less than a month after B. Braun resumed buying syringes from AM2PAT, AM2PAT manufactured B. Braun saline syringes contaminated with Serratia marcescens bacteria. S. marcescens can cause blood infections. These contaminated syringes infected patients in California, Texas, New York and Nebraska. The syringes were recalled.
In the government’s non-prosecution agreement with B. Braun, B. Braun admits that it distributed B. Braun-labeled syringes that were adulterated under the FDCA. Under the terms of the agreement, B. Braun will increase oversight of its product suppliers by conducting on-site audits of companies that design and make finished products that bear the B. Braun name on the label or logo and testing such products for sterility, identity and purity, as appropriate, on a periodic basis. B. Braun will also be monitored by an independent compliance auditor during the term of the agreement. The auditor will assess B. Braun’s implementation and maintenance of the enhanced compliance measures through on-site audits of B. Braun. B. Braun’s chief executive officer and board of directors will also review and certify B. Braun’s compliance efforts on an annual basis.
“Americans expect and deserve medical devices that are safe, effective, and that meet appropriate standards for quality,” said Director George M. Karavetsos of FDA’s Office of Criminal Investigations. “Today’s announcement should serve as a reminder of the FDA’s continued focus on companies that put profits ahead of the public health.”
Today’s settlement with B. Braun follows the earlier, related prosecution in the Eastern District of North Carolina of AM2PAT and three individuals who worked at AM2PAT. In 2008, Ravindra Kumar Sharma, AM2PAT’s quality control director and Aniruddha Patel, AM2PAT’s plant manager, both pleaded guilty to criminal informations charging conspiracy to commit a number of federal offenses including felony violations of the FDCA. Both were sentenced in 2009 to 54 months in prison. AM2PAT and its former president, Dushyant Patel, were indicted on similar charges in 2009. Patel fled the country and is currently on FDA’s Office of Criminal Investigations’ “Most Wanted” list.
Principal Deputy Assistant Attorney General Mizer and Acting U.S. Attorney Bruce commended the efforts of the FDA’s Office of Criminal Investigations and its Special Agent Paul Pierce for their work on this matter. The matter was also handled by Assistant U.S. Attorney Evan Rikhye of the U.S. Attorney’s Office for the Eastern District of North Carolina and Senior Litigation Counsel Allan Gordus and Trial Attorney Shannon Pedersen of the Department’s Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
For more information about the U.S. Attorney’s Office for the Eastern District of North Carolina, visit its website at https://www.justice.gov/usao-ednc.
B. Braun Medical Inc. Agrees to Resolve Criminal Liability Relating to Its Sale of Contaminated SyringesRead the Press Release
The Contaminated Syringes That Infected Patients Were the Subject of a Recall
WASHINGTON - Drug and medical device company B. Braun Medical Inc. (B. Braun) has agreed to pay $4.8 million in penalties and forfeiture and up to an additional $3 million in restitution to resolve its criminal liability for selling contaminated B. Braun pre-filled saline flush syringes in 2007, the Department of Justice announced today.
The B. Braun saline syringes had a B. Braun label but were manufactured by another company. Today’s resolution includes a non-prosecution agreement that requires B. Braun to implement additional practices designed to increase its oversight of its product suppliers to prevent future sales of contaminated products. B. Braun, a medical device manufacturer, has global headquarters in Melsungen, Germany, and corporate headquarters in Bethlehem, Pennsylvania, with primary manufacturing facilities in Allentown, Pennsylvania, and Irvine, California.
“The Federal Food, Drug and Cosmetic Act (FDCA) prohibits companies from selling contaminated products, even when the company did not make the product itself,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “Companies must take reasonable steps to ensure that their suppliers are making quality products that help rather than harm patients. Today’s settlement shows that the government will continue to hold companies accountable for failing to fulfill this critically important responsibility.”
"Patients were infected by adulterated syringes distributed by B. Braun,” said Acting U.S. Attorney John Stuart Bruce for the Eastern District of North Carolina. “This agreement helps to provide justice for the victims and to deter such future conduct by distributors of medical devices.”
According to the agreed upon statement of facts that accompany the non-prosecution agreement, in March 2006, B. Braun started buying B. Braun saline syringes from AM2PAT, Inc. (AM2PAT), which manufactured the syringes at a small facility in North Carolina. The saline solution in pre-filled saline flush syringes must be sterile because it can enter a patient’s bloodstream when the syringes are used to flush out or clean medical devices that provide access to a patient’s veins, such as central lines, ports and short peripheral catheters.
As noted in the statement of facts, B. Braun was aware of manufacturing problems at AM2PAT, even before it began purchasing syringes from AM2PAT. In separate audits, both the U.S. Food and Drug Administration (FDA) and B. Braun had found that AM2PAT was having problems complying with current good manufacturing practices. Although AM2PAT addressed some of these initial problems, additional problems persisted. In the spring of 2007, AM2PAT notified B. Braun that AM2PAT intended to move to a new manufacturing facility and change the company that would sterilize the B. Braun saline syringes through a new radiation sterilization process. Sterilization, a vital step in the manufacture of these syringes, can be complex. Before B. Braun’s quality department approved either of these changes, B. Braun began selling B. Braun saline syringes made at AM2PAT’s new facility and sterilized by the new sterilization company. B. Braun later approved both of these changes even though B. Braun had already received complaints about the syringes changing colors and information from AM2PAT that it was making changes to its radiation process to avoid “overcooking” the syringes. B. Braun approved AM2PAT’s facility move without ever seeing AM2PAT’s operations at its new facility or confirming AM2PAT’s representations that it had properly validated its clean room and equipment after the move.
Less than two months after B. Braun started selling syringes that AM2PAT made at its new facility with the new sterilization company, B. Braun recalled all of them because the radiation sterilization process caused dangerous white particles to develop in the saline inside the syringes.
After the recall, AM2PAT told B. Braun that it gave B. Braun incorrect information about its new radiation sterilization process. It also sent B. Braun information showing that AM2PAT moved manufacturing equipment to its new facility without validating that the equipment worked as expected after the move. As explained in the statement of facts, even with this new information, B. Braun resumed buying B. Braun saline syringes from AM2PAT without going to AM2PAT’s new facility.
Less than a month after B. Braun resumed buying syringes from AM2PAT, AM2PAT manufactured B. Braun saline syringes contaminated with Serratia marcescens bacteria. S. marcescens can cause blood infections. These contaminated syringes infected patients in California, Texas, New York and Nebraska. The syringes were recalled.
In the government’s non-prosecution agreement with B. Braun, B. Braun admits that it distributed B. Braun-labeled syringes that were adulterated under the FDCA. Under the terms of the agreement, B. Braun will increase oversight of its product suppliers by conducting on-site audits of companies that design and make finished products that bear the B. Braun name on the label or logo and testing such products for sterility, identity and purity, as appropriate, on a periodic basis. B. Braun will also be monitored by an independent compliance auditor during the term of the agreement. The auditor will assess B. Braun’s implementation and maintenance of the enhanced compliance measures through on-site audits of B. Braun. B. Braun’s chief executive officer and board of directors will also review and certify B. Braun’s compliance efforts on an annual basis.
“Americans expect and deserve medical devices that are safe, effective, and that meet appropriate standards for quality,” said Director George M. Karavetsos of FDA’s Office of Criminal Investigations. “Today’s announcement should serve as a reminder of the FDA’s continued focus on companies that put profits ahead of the public health.”
Today’s settlement with B. Braun follows the earlier, related prosecution in the Eastern District of North Carolina of AM2PAT and three individuals who worked at AM2PAT. In 2008, Ravindra Kumar Sharma, AM2PAT’s quality control director and Aniruddha Patel, AM2PAT’s plant manager, both pleaded guilty to criminal informations charging conspiracy to commit a number of federal offenses including felony violations of the FDCA. Both were sentenced in 2009 to 54 months in prison. AM2PAT and its former president, Dushyant Patel, were indicted on similar charges in 2009. Patel fled the country and is currently on FDA’s Office of Criminal Investigations’ “Most Wanted” list.
Principal Deputy Assistant Attorney General Mizer and Acting U.S. Attorney Bruce commended the efforts of the FDA’s Office of Criminal Investigations and its Special Agent Paul Pierce for their work on this matter. The matter was also handled by Assistant U.S. Attorney Evan Rikhye of the U.S. Attorney’s Office for the Eastern District of North Carolina and Senior Litigation Counsel Allan Gordus and Trial Attorney Shannon Pedersen of the Department’s Consumer Protection Branch.
For more information about the Consumer Protection Branch, visit its website at http://www.justice.gov/civil/consumer-protection-branch.
For more information about the U.S. Attorney’s Office for the Eastern District of North Carolina, visit its website at https://www.justice.gov/usao-ednc.