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Friday 1 April 2016
Houston Psychiatrist Sentenced to 144 Months in Prison for Role in $158 Million Medicare Fraud SchemeRead the Press Release
A Houston psychiatrist was sentenced today to 144 months in prison for her role in a $158 million Medicare fraud scheme involving false claims for mental health treatment.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Kenneth Magidson of the Southern District of Texas, Special Agent in Charge Perrye K. Turner of the FBI’s Houston Field Office, Special Agent in Charge C.J. Porter of the U.S. Department of Health and Human Services-Office of Inspector General (HHS-OIG) Dallas Region, Special Agent in Charge D. Richard Goss of the Internal Revenue Service-Criminal Investigation (IRS-CI) Houston Field Office and the Texas Attorney General’s Medicaid Fraud Control Unit (MFCU) made the announcement.
Sharon Iglehart, 58, a former attending psychiatrist at Riverside General Hospital (Riverside) of Houston, was sentenced by U.S. District Judge Ewing Werlein Jr. of the Southern District of Texas. Judge Werlein also ordered Iglehart to pay $6,363,528.82 in restitution and to forfeit the same amount.
On Sept. 10, 2015, following a seven-day trial, a jury convicted Iglehart of one count of conspiracy to commit health care fraud, one count of health care fraud and three counts of making false statements relating to health care matters.
According to evidence presented at trial, from 2006 until June 2012, Iglehart and others engaged in a scheme to defraud Medicare by submitting through Riverside approximately $158 million in false and fraudulent claims to Medicare for partial hospitalization program (PHP) services, an intensive outpatient treatment for severe mental illness. The evidence presented at trial showed that the Medicare beneficiaries for whom Riverside billed Medicare did not receive PHP services. In fact, evidence proved that most of the Medicare beneficiaries rarely saw a psychiatrist and did not receive intensive psychiatric treatment at all.
In addition, evidence presented at trial showed that Iglehart personally billed Medicare for individual psychotherapy and other treatment purportedly provided to patients at Riverside locations – treatment that she never provided. Further, Iglehart falsified the medical records of patients at Riverside’s inpatient facility to make it appear as if she provided psychiatric treatment when she did not, the evidence showed.
To date, 12 other individuals have been convicted based on their roles in this scheme, including Earnest Gibson III, 71, of Houston, the former president of Riverside; Earnest Gibson IV, 38, of Pearland, Texas, the operator of one of Riverside’s PHP satellite locations; Regina Askew, 50, of Houston, a group home owner and patient file auditor; and Robert Crane, 59, of Spring, Texas, a patient recruiter, who were all convicted after a jury trial in October 2014. Earnest Gibson III was sentenced to 45 years in prison; Earnest Gibson IV was sentenced to 20 years in prison; Askew was sentenced to 12 years in prison; and Crane has not yet been sentenced. Mohammad Khan, 66, of Houston, an assistant administrator at the hospital, who managed many of the hospital’s PHPs, pleaded guilty and was sentenced to 40 years in prison.
The FBI, HHS-OIG, IRS-CI and the MFCU investigated the case with assistance from the Railroad Retirement Board’s Office of Inspector General and the Office of Personnel Management’s Office of Inspector General. The case was brought as part of the Medicare Fraud Strike Force, under the supervision of the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Southern District of Texas. Assistant Chiefs Laura M.K. Cordova and Ashlee C. McFarlane of the Fraud Section are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Team (HEAT), go to: www.stopmedicarefraud.gov.
Honolulu Man Sentenced to Life Without ParoleRead the Press Release
HONOLULU –Gilbert Lee Medina, 52, of Honolulu, was sentenced to life in prison in federal court yesterday by Senior District Judge Helen Gillmor for conspiring to distribute and possess with intent to distribute methamphetamine. There is no parole under current federal criminal law. Medina’s two prior drug felony convictions in California made imposition of the life sentence mandatory. A jury found Medina guilty of the conspiracy in December 2015, and also found him guilty of unlawfully possessing a firearm and attempting to enter a secure area of the Honolulu International Airport by fraud or false pretenses.
According to the evidence presented at trial, Medina was at the center of a large scale methamphetamine trafficking conspiracy that spanned at least 12 months from April 2012 to April 2013, and was responsible for well over 20 pounds of methamphetamine being brought from California to Hawaii. Medina received the large quantity of methamphetamine from several different sources and was responsible for distributing the methamphetamine to other members of the conspiracy in Hawaii.
The evidence presented at trial also established that Medina unlawfully possessed a firearm on his boat docked at the Ala Wai harbor. Evidence produced in court established that Medina attempted to use a false identification at the Honolulu International Airport in an effort to flee from Hawaii in May 2013, which led to the additional criminal offense for attempting to enter the secured area of the airport by presenting the false identification. Transportation Security Administration (TSA) officials did not permit Medina to get past the security, and ultimately he was arrested.
Florence T. Nakakuni, United States Attorney for the District of Hawaii, said, "This sentence is a stern warning that those individuals who repeatedly participate in drug trafficking risk being severely punished for their criminal conduct."
Michael Carney, Acting Special Agent in Charge of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations (HSI) Honolulu, and United States Attorney Nakakuni observed that, "Methamphetamine is a vicious drug that destroys lives, devastates our communities and seriously compromises the public’s safety." Acting SAIC Carney said, "The sentence in this case is fitting of the serious crimes committed by the defendant, and HSI along with its federal, state and local law enforcement partners are committed to combatting the serious threat methamphetamine presents to the well-being of our communities."
The investigation which resulted in the charges in the case was conducted by HSI, with assistance from the United States Postal Inspection Service, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. TSA at Honolulu International Airport also contributed significantly to the investigation. Assistant U.S. Attorney Tony R. Roberts handled the prosecution.
Grant County, WV man pleads guilty to prescription painkiller traffickingRead the Press Release
ELKINS, WEST VIRGINIA – Nelson Joseph Boucher, 33, of Cabins, West Virginia, pled guilty to prescription painkiller trafficking today in federal court, United States Attorney William J. Ihlenfeld, II, announced.
Boucher sold hydrocodone in August 2014 in Grant County, West Virginia. He pled guilty today to “Distribution of Hydrocodone.” He faces up to 20 years in prison and a fine of up to $1,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Stephen Warner prosecuted the case on behalf of the government. The Potomac Highlands Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Fort Thompson Man Charged with Aggravated Sexual Abuse and Abusive Sexual Contact of a ChildRead the Press Release
United States Attorney Randolph J. Seiler announced that a Fort Thompson, South Dakota, man has been indicted by a federal grand jury for Aggravated Sexual Abuse of a Child and Abusive Sexual Contact of a Child by Force.
Caleb Lewis Thompson, age 31, was indicted on March 15, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 24, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is a mandatory minimum of 30 years in custody and/or a $750,000 fine, 5 years of supervised release, and $300 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between August 1, 2013, and May 31, 2015, Thompson knowingly engaged in, and attempted to engage in a sexual act with a minor female, as well as knowingly caused, and attempted to cause another minor female to engage in sexual contact.
The charges are merely accusations and Thompson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Bureau of Indian Affairs, Crow Creek Agency. Assistant U.S. Attorney Meghan N. Dilges is prosecuting the case.
Thompson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Former Viridian Elementary Principal Found Guilty of Child Exploitation ChargeRead the Press Release
SHERMAN, Texas — A 47-year-old Carrollton, Texas man has been found guilty of child exploitation charges in the Eastern District of Texas, announced U.S. Attorney John M. Bales today.
Oscar Figueroa was indicted by a federal grand jury on July 15, 2015 and charged with coercion and enticement of minors. Figueroa was found guilty today following a four day trial before U.S. District Judge Amos L. Mazzant.
According to the indictment, on July 7, 2015, law enforcement officers became aware of a Craigslist advertisement posted by a person identified as Figueroa seeking a young male for sexual activity. An undercover officer posing as a 16-year-old boy contacted Figueroa and began exchanging text messages. Figueroa instructed the undercover officer to meet him at a particular place within the AMC Theatres at Stonebriar Centre. Frisco PD Officers arrived at the theatre and discovered Figueroa, who directed an undercover officer to a bathroom for sexual activity. During the trial, attorneys for the United States introduced Figueroa’s text messages with the undercover agent, his interview with law enforcement, Craigslist ads he posted, and the contents of his cellular phone.
Figueroa was arrested on July 10, 2015 and remains in custody. Figueroa faces a minimum of 10 years, and up to life, in federal prison at sentencing. A sentencing date has not been set.
This case is being prosecuted as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys’ Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.projectsafechildhood.gov.
This case was investigated by Homeland Security Investigations (HSI) and the Frisco Police Department and prosecuted by Assistant U.S. Attorneys Marisa Miller and Jay Combs.
Former NYS Deputy Secretary of State Indicted for Perjury, Failing to Pay RestitutionRead the Press Release
ALBANY, NEW YORK – Joseph Felix Strevell, age 54, of Castleton, New York, was arraigned today on an indictment accusing him of lying under oath to conceal his failure to pay restitution to New York State.
The announcement was made by U.S. Attorney Richard S. Hartunian, New York State Police Superintendent Joseph A. D’Amico, and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
U.S. Attorney Richard S. Hartunian said: "Restitution is a mandatory obligation that no convicted felon should be able to walk away from. Joseph Strevell tried to shirk his restitution obligation and when my office took his deposition to find out about his ability to pay, he repeatedly lied under oath to an Assistant United States Attorney to cover his tracks. As a result, he has been indicted for perjury."
New York State Police Superintendent Joseph A. D’Amico said: "We will show no mercy for convicted criminals who fail to fulfill the obligations of their sentences, and this case proves that trying to cover your tracks by lying to law enforcement never works. I want to thank the State Police Special Investigations Unit, and our partners at the U.S. Attorney’s Office and the FBI, for their persistence in this case."
The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
From 1997 to 1999, Strevell served as a Deputy Secretary of State for the State of New York. He left that position to serve as the head of the state-funded Institute for Entrepreneurship. In 2007, Strevell was convicted in federal court of defrauding New York State while leading the Institute. In March 2009, the United States District Court for the Northern District of New York entered judgment against Strevell on this conviction, requiring him to pay $111,500 in restitution to his victim, New York State. The judgment required Strevell to pay restitution at a minimum rate of $100 per month or 10 percent of his gross monthly earnings, whichever was greater, and to pay full restitution immediately if at any time he had the resources to do so.
In December 2014, the U.S. Attorney’s Office deposed Strevell under oath to determine whether he was complying with his restitution obligation. According to the indictment, when questioned about how he was able to make a $75,440 down payment on a lease with an option to purchase a 138.55-acre horse farm in Rensselaer County in April and May 2013, Strevell falsely testified that his mother and aunt provided the majority of the funds used to make the down payment. In fact, according to the indictment, neither Strevell’s mother nor aunt contributed toward the down payment.
According to the indictment, Strevell also lied during that deposition about whether he had paid for his daughter’s wedding in May 2014. Strevell falsely testified that he contributed only "a couple thousand dollars" toward wedding expenses, but, according to the indictment, Strevell paid for most of the wedding, ultimately contributing more than $30,000 toward wedding expenses by paying at least one wedding vendor directly and transferring tens of thousands of dollars from his business to his daughter.
The indictment also alleges that Strevell failed to pay restitution each month as required by the 2009 judgment.
Strevell faces five felony counts of perjury and one misdemeanor count of defaulting on his restitution obligation. If convicted of perjury, Strevell faces a maximum of 5 years in prison, a $250,000 fine, and 3 years of post-imprisonment supervised release. If convicted on the misdemeanor charge, Strevell faces a maximum of one year in prison. 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.
Strevell was arraigned today in Albany, New York, before United States Magistrate Judge Christian F. Hummel, and released pending a trial before United States District Court Judge Gary L. Sharpe.
This case is being investigated by the New York State Police and the Federal Bureau of Investigation, and is being prosecuted by Assistant U.S. Attorneys Jeffrey C. Coffman and Michael Barnett.
Former Loan Officer Sentenced to Prison for Role in $45 Million Mortgage Fraud SchemeRead the Press Release
Contact Person: Dean Secor (843) 727-4381
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Steven F. Weiss, age 67, of Virginia Beach, Virginia was sentenced on Wednesday in federal court in Charleston, South Carolina for Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud, a violation of 18 U.S.C. § 371. U.S. District Judge Richard M. Gergel sentenced Weiss to 30 months in federal prison. Judge Gergel also ordered Weiss to serve three years of supervised release after he is released from prison (the first twelve months under electronic monitoring) and to pay restitution in the amount of $4,961,732.
Evidence presented at Weiss’ change of plea hearing established that he participated in a mortgage fraud conspiracy that utilized real estate and mortgage businesses operated in Summerville, South Carolina under the names North American Mortgage Group, LLC; Realty Executives of Coastal Carolina; and New Freedom Enterprises, LLC.
The scheme involved more than 70 properties, approximately $45 million of mortgage loans, and a loss of more than $23 million suffered by financial institutions. The properties were located in Charleston, Johns Island, Ladson, Mount Pleasant, Summerville, Edisto Island, St. Helena Island, Garden City, Murrells Inlet, Myrtle Beach, North Myrtle Beach, Lake Keowee, and Tybee Island, Georgia.
Weiss worked as a loan officer for North American Mortgage Group, LLC. He was directly involved with at least 13 of the properties involved in the scheme, and the losses associated with those 13 properties totaled $4,961,732.
Two defendants previously pleaded guilty in connection with the scheme and are awaiting sentencing. Scott M. Wickersham, 36, of Summerville, pleaded guilty to one count of Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud, in violation of Title 18, United States Code, Section 1349, and two counts of Willfully Making and Subscribing a False Tax Return, in violation of Title 26, United States Code, Section 7206(1). Kelly Martin, 34, of Moncks Corner pleaded guilty to one count of Conspiracy to Commit Mail Fraud, Wire Fraud, and Bank Fraud, in violation of Title 18, United States Code, Section 371.
Two other defendants were indicted in December in connection with the scheme and their cases are pending.
The case was investigated by agents of the Federal Bureau of Investigation (FBI) and the Internal Revenue Service-Criminal Investigation (IRS-CI). Assistant United States Attorney Dean H. Secor of the Charleston office prosecuted the case.
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Foreign National Pleads Guilty in Mail Fraud SchemeRead the Press Release
A foreign national pled guilty to orchestrating an international mail fraud scheme.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and Delany De-Leon Colon, Acting Inspector in Charge, United States Postal Inspection Service (USPIS), Miami Division, made the announcement.
Cristian Mariano Pardo, 30, and Jorge Gabriel Barca, 33, both of Buenos Aires, Argentina, were indicted in West Palm Beach on a single count of conspiracy to commit mail fraud, in violation of Title 18, United States Code, Section 1341 and fifteen counts of mail fraud, in violation of Title 18, United States Code, Sections 1349. Barca has not been arrested and remains a fugitive. Pardo pled guilty to the conspiracy to commit mail fraud and a single count of mail fraud. Pardo faces up to 20 years in prison on each of the two counts of conviction, plus $250,000 in fines and mandatory restitution as to each charge.
According to the indictment and court records, between September 2008 and September 2015, Pardo and Barca operated telemarketing call centers or “boiler rooms,” in Argentina that targeted Spanish-speaking consumers residing in the United States. The defendants obtained the names of these consumers from lead lists which they had purchased in Argentina. The lists included names of consumers who had previously made online or direct mail purchases of various items, including items sold on Spanish language television, such as English classes.
The telemarketers, acting at the direction of the defendants, would call Spanish-speaking U.S. residents to tell them that they would be receiving a small parcel in the mail that the consumers had ordered. The callers would state that if the consumers failed to pay for the cost on delivery (C.O.D.) package – typically a charge of $500 - they would be subject to lawsuits, expensive attorney’s fees and court costs, arrest, deportation, and/or have their credit ruined.
In truth, these consumers had not ordered any merchandise, and only paid the $500 demanded for the C.O.D. because of the numerous threats made by the boiler room callers.
When consumers refused delivery of a package sent by the defendants’ companies, they frequently were contacted again by the Argentinian telemarketers, who often identified themselves as attorneys. The callers reiterated that the consumers had agreed to receive the products and pay for them, and again threatened the consumers if they refused to accept the packages, including threats of lawsuits, expensive court and attorney’s fees, arrest, deportation, and that the consumer’s credit would be ruined.
As a result of these threats, numerous consumers paid an average of $500 for products of nominal value that they in fact had never ordered, fearing the consequences of failing to do so. In order to avoid detection and the filing of consumer complaints, Pardo and Barca changed the names of their companies frequently, and at one point moved the operation from West Palm Beach to Los Angeles, CA. During the course of the conspiracy, Pardo and Barca, through their companies, collected proceeds from the targeted consumers of over $1 million.
Mr. Ferrer commended the investigative efforts of USPIS. This case is being prosecuted by Assistant U.S. Attorney Lauren Jorgensen.
An indictment is only an accusation and a defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Federal Jury Returns Guilty Verdicts in Wichita Massage Parlor Prostitution CaseRead the Press Release
KANSAS CITY, KAN. - A federal jury today returned guilty verdicts on all counts against a Wichita man in a massage parlor prostitution case, U.S. Attorney Barry Grissom said.
They found defendant Kay Tee, 51, Wichita, Kan., guilty on one count of attempting to entice a person to cross state lines to engage in prostitution, one count of using a telephone in furtherance of prostitution and one count of money laundering.
During trial, prosecutors presented evidence that Tee was arrested May 28, 2015, at the airport in Wichita when he drove there to pick up a person he believed was buying a Wichita massage parlor. In fact, the person Tee had talked with several times on the phone was one of two undercover informants working with federal investigators.
Tee tried to collect fees from both undercover informants – one posing as a buyer and the other as a seller – in return for helping to arrange the sale. He also offered to provide additional services including filing city paperwork and doing taxes for the massage parlor. Tee talked with the agents about the fact employees of the massage parlor would be performing sex services for customers.
Sentencing is set for July 13. He faces a maximum penalty of 20 years and a fine up to $250,000 on the money laundering charge, a maximum penalty of five years and a fine up to $250,000 on the phone charge, and a maximum penalty of 20 years and a fine up to $250,000 on the enticement charge. Grissom commended the Wichita Police Department, Homeland Security Investigations and Assistant U.S. Attorney Jason Hart for their work on the case.
Federal Jury Convicts York Resident of Heroin Trafficking ConspiracyRead the Press Release
HARRISBURG - The United States Attorney's Office for the Middle District Pennsylvania announced today that Andrew Alexander, age 31, York, Pennsylvania, was convicted yesterday of conspiring to trafficking heroin. The three-day trial was held before U.S. District Court Judge Yvette Kane.
According to United States Attorney Peter Smith, the jury returned with the verdict of guilty after approximately three hours of deliberation. The charge carries a maximum punishment of twenty years in prison. The jury found Alexander not guilty of the charge of drug possession with intent to distribute.
The case arose from a search warrant executed on a home in March 2013 by York City Police. During the search, police found 35 grams of crack cocaine, cocaine, and heroin. Most of the heroin – 900 bags – was found floating in a toilet.
Police officers and occupants of the home testified at trial. According to the witnesses, when Alexander heard police at the front door, he ran to the bathroom and tried to flush the heroin down the toilet.
Veronica Rivera and Andrew Gonzalez were also charged with drug trafficking crimes for their role in drugs found in this house. Both pled guilty to conspiracy to distribute drugs and are awaiting sentencing.
Police found, in the pants pocket of Alexander, what was described by witnesses as a “drug owe” sheet. Names on the sheet correspond to subjects prosecuted in the U.S. Attorney’s Office’s recent “Southside” racketeering prosecution, which has resulted in 21 convictions or guilty pleas to date.
The investigation was conducted by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the York City Police Department. The case was prosecuted by Assistant United States Attorneys Michael A. Consiglio and Scott Ford.
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.
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Federal Jury Convicts International Drug Trafficker of Failing to Appear for His 1999 SentencingRead the Press Release
Orlando, Florida – United States Attorney A. Lee Bentley, III announces that a federal jury yesterday found Ralph Georg Toni Martin, a/k/a Mirko Dominic Martin, (46, Würzburg, Germany) guilty of failure to appear for his sentencing in a federal drug case, after being released on bail by order of the Court. He faces a maximum penalty of 10 years in federal prison, consecutive to a federal prison sentence of over 8 years that Martin has already been ordered to serve by the Court in his underlying drug case. A sentencing hearing is scheduled for June 22, 2016.
Martin was indicted on December 16, 2015.
According to evidence presented at trial, on August 31, 1998, Martin was arrested by the Drug Enforcement Administration for his role in an international MDMA (Ecstasy) ring that imported MDMA into the United States from Europe, and distributed the drugs in the Orlando area. After Martin’s arrest, the Court ordered his release on bail, with the standard release condition that he appear at any and all future proceedings in his case. On October 15, 1998, at a hearing before the Court, Martin pleaded guilty to conspiracy to possess with intent to distribute MDMA, importation of MDMA, and conspiracy to commit money laundering. He was then advised of a sentencing date of January 20, 1999. Martin did not appear for his sentencing and was a fugitive from justice for over 16 years. During this period, he was able to avoid apprehension by law enforcement, living in California and New Jersey.
On September 18, 2015, Martin was arrested by local law enforcement in Bayonne, New Jersey. Martin has already been sentenced to 97 months for the charges to which he pled guilty in 1998.
This case was investigated by the United States Marshals Service, with assistance from the Orange County Sheriff’s Office and the Bayonne, New Jersey Police Department. It is being prosecuted by Assistant United States Attorneys Andrew C. Searle and Sean Shecter.
Fairmont man pleads guilty to participating in interstate heroin trafficking operationRead the Press Release
CLARKSBURG, WEST VIRGINIA – Daniel Ross Sims, 27, of Fairmont, West Virginia, pled guilty to heroin trafficking today in federal court, admitting that he participated in a Detroit to Morgantown heroin trafficking network, United States Attorney William J. Ihlenfeld, II, announced.
Sims was charged along with thirteen other individuals in February 2016 when a series of three federal indictments interrupted a Detroit, Michigan to Morgantown, West Virginia heroin trafficking scheme. Specifically, Sims sold heroin in late 2014 near West Virginia University in Monongalia County, West Virginia.Sims pled guilty today to “Distribution of Heroin within 1,000 feet of a Protected Location.” He faces between one and forty years in prison and a fine of up to $2,000,000. Under the Federal Sentencing Guidelines, the actual sentence imposed will be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant U.S. Attorney Zelda Wesley prosecuted the case on behalf of the government. The Mon Metro Drug and Violent Crime Task Force investigated.U.S. Magistrate Judge Michael John Aloi presided.
Escapee Sentenced to Federal Prison for Austin Bank RobberiesRead the Press Release
In Austin this morning, 38-year-old Brian Anthony Whitford was sentenced to 160 months in federal prison for robbing two Austin banks last year after escaping from a half-way house announced United States Attorney Richard Durbin, Jr., FBI Special Agent in Charge Christopher Combs, San Antonio Division, and United States Marshal Robert Almonte.
In addition to the prison term, United States District Judge Sam Sparks ordered that Whitford pay $3,703.00 restitution to Compass Bank and be placed on supervised release for a period of three years after completing his prison term.
In December 2015, Whitford pleaded guilty to two counts of bank robbery. By pleading guilty, Whitford admitted that on April 13, 2015, he escaped from a halfway house in Del Valle, TX, where he was completing his federal sentence for robbing two Austin banks in April 2010. On the same day of his escape, Whitford attempted to rob a Wells Fargo Bank branch located on Guadalupe Street and then successfully robbed a Compass Bank branch located on South Congress Avenue.
Authorities arrested Whitford on April 15, 2016, in San Antonio.
This joint investigation was conducted by the FBI and the United States Marshals Service with assistance from the Austin and San Antonio Police Departments. Assistant United States Attorney Ashley Hoff and Gregg Sofer prosecuted this case on behalf of the Government.
Eagle Butte Man Charged with Failure to Register as a Sex OffenderRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man has been indicted by a federal grand jury for Failure to Register as a Sex Offender.
Gaylen Paul Sampson, a/k/a Thurman Paul Sampson, age 41, was indicted on March 15, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 30, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 10 years in custody and/or a $250,000 fine, up to life of supervised release, and $100 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between April 14, 2013, and April 23, 2013, Sampson, a person required to register under the Sex Offender Registration and Notification Act, and a sex offender by reason of a conviction under Federal Law, failed to register and update his registration.
The charge is merely an accusation and Sampson is presumed innocent until and unless proven guilty.
The investigation is being conducted by the U.S. Marshals Service. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Sampson was remanded to the custody of the U.S. Marshals Service pending trial. A trial date has not been set.
Drug Conspiracy Indictment UnsealedRead the Press Release
PHILADELPHIA - Donti Hunter, a/k/a Donte Hunter, a/k/a Pumpkin, a/k/a P, 37, and Jaekhon Cook, a/k/a Jae Khahn Cook, 23, both of Philadelphia, PA, were charged by Indictment, unsealed today, in a drug conspiracy, announced United States Attorney Zane David Memeger. The charges include conspiracy to distribute 28 grams or more of cocaine base, distribution of 28 grams or more of cocaine base, distribution of 28 grams or more of cocaine base within 1,000 feet of a public school, and aiding and abetting, in relation to distribution of more than 28 grams of cocaine base (“crack”). The case also involves the seizure of approximately 21 grams of cocaine base (“crack”), cash and narcotics packaging and paraphernalia from a home on the 800 block of Preston Street in Philadelphia.
If convicted, Hunter faces a mandatory minimum of 10 years in prison with a maximum possible sentence of life, at least 16 years of supervised release, a possible fine, and a $700 special assessment; Cook faces a mandatory minimum of five years in prison with a maximum possible sentence of life, at least eight years of supervised release, a possible fine, and a $700 special assessment.
The case was investigated by the Federal Bureau of Investigation and the Philadelphia Police Department. It is being prosecuted by Assistant United States Attorney Arlene Fisk.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Don't be Fooled by ScammersRead the Press Release
PORTLAND, Ore. - This April Fool’s Day, don’t get fooled by scammers pretending to be from the FBI, Internal Revenue Service (IRS), U.S. Marshals Service, or any other federal agency.
Law enforcement officials are aware of a recent wave of scam attempts. Callers identify themselves as a federal officer and typically instruct people to wire “settlement” money to avoid arrest. These phone calls are fraudulent. Federal agencies do not call or email individuals, threatening them to send money.
There are many versions of this government impersonation scam, but they are all variations of the same tactic. The type of scam has been around for years and targets people across the nation. In 2016 reports have streamed in to law enforcement about attempts to scam residents throughout the country.
If you have been targeted by government-impersonating scammers, the sooner you report it, the better are the chances that law enforcement will be successful in their investigation. Here’s how to report specific scam attempts:
FBI Impersonation
Scams impersonating the FBI have been around for years and continue today—sometimes citing current FBI Director James Comey or a local field office Special Agent in Charge. The FBI first warned the public in 2008 that “the fraudulent e-mails give the appearance of legitimacy due to the usage of pictures of the FBI Director, seal, letterhead, and/or banners.”
FBI Impersonation: Call your local FBI office Portland Division: 503-224-4181
IRS Impersonation
Earlier this month, the Treasury Inspector General for Tax Administration (TIGTA) warned that criminals continue to impersonate IRS agents, resulting in reports of more than one million fraudulent contacts since October 2013 and more than 5,500 victims who have collectively lost approximately $29 million.
IRS Impersonation: Fill out the “IRS Impersonation scam” form on TIGTA’s website: https://www.treasury.gov/tigta/contact_report_scam.shtml
Jacqueline Siegel - (503) 265-3525
TIGTA
U.S. Marshals Impersonation and Jury Service Scam
Earlier this week, the United States Courts warned that scammers are now more sophisticated, using official-sounding call centers and citing designated court hearing times. The U.S. Marshals Service has also received complaints of specific officer names or badge numbers being cited by scammers.
Marshal Impersonation: Call your local U.S. Marshals Service office: In Oregon: 503-326-2209
In addition, all types of fraud schemes and scams can always be reported to the Internet Crime Complaint Center (IC3) at www.ic3.gov. The following information is helpful to report:
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Header information from e-mail messages;
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Identifiers for the perpetrator(e.g., name, Web site, bank account, e-mail addresses);
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Details on how, why, and when you believe you were defrauded;
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Actual and attempted loss amounts;
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Details about the government impersonation; and
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Other relevant information you believe is necessary to support your complaint.
Filing a complaint through IC3’s website allows analysts from the FBI to identify leads and patterns from the hundreds of complaints that are received daily. The sheer volume of complaints allows that information to come into view among disparate pieces, which can lead to stronger cases and help zero in on the major sources of criminal activity. The IC3 then refers the complaints, along with their analyses, to the relevant law enforcement agency for follow-up.
The public can learn about other common scams by visiting http://www.fbi.gov/scams-safety/frauds-from-a-to-z, and learn about ways to reduce their risk of being scammed: http://www.fbi.gov/scams-safety/fraud/internet_fraud.
If you receive a scam phone call, you may also contact the FCC - Federal Communications Commission at the number and website below:
FCC Consumer Center: 1-888-225-5322
FCCWebsite;
https://consumercomplaints.fcc.gov/hc/en-us
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Dominican Man Sentenced to 24 Months for Illegal Reentry After DeportationRead the Press Release
CONCORD, NEW HAMPSHIRE –United States Attorney Emily Gray Rice announced that Onix Abreu, of the Dominican Republic, was sentenced to twenty four months in federal prison, after pleading guilty to illegally reentering the United States after having been previously deported.
On June 15, 2015, the New Hampshire State Police were contacted concerning an individual attempting to obtain a New Hampshire driver’s license at the Salem, New Hampshire office of the New Hampshire Department of Motor Vehicles. The State Police found that the defendant was presenting a birth certificate purportedly issued in Puerto Rico, a social security card, and a driver’s license issued in Pennsylvania to support his application. The State Police sought the assistance of ICE-ERO Deportation Officers. Upon arrival, the ICE-ERO officers questioned the defendant who admitted he was Onix Abreu and that he had been previously deported. Abreu was taken into ICE custody and transported to the Manchester ICE office where a full set of fingerprint impressions were taken. Abreu’s fingerprints matched those contained in the Department of Homeland Security’s Automated Biometric Identification System (IDENT) and to the FBI’s Integrated Automated Fingerprint Identification System (IAFIS) for fingerprints taken from the defendant on the occasion of his previous deportation. Abreu was deported from Alexandria, Louisiana to the Dominican Republic in 2005.
Abreu pled guilty to the charge on September 22, 2015.
The case was investigated by the New Hampshire State Police and the Department of Homeland Security and prosecuted by Assistant U.S. Attorney Alfred Rubega.
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Chief Financial Officer of Furniture Company Pleads Guilty to $18 Million Accounting Fraud Against Bank and Gas City, IndianaRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Diego Rodriguez, the Assistant Director-in-Charge of the New York Field Office of the Federal Bureau of Investigation (“FBI”), announced that NORMAN D’SOUZA, the former chief financial officer and vice president of finance of a New Jersey-based furniture wholesaler and retailer (“Company-1”) and an Indiana-based furniture manufacturer affiliated with Company-1 (“Company-2”), pled guilty today to participating in a fraudulent scheme to obtain $17 million in loans from a commercial bank based in New York, New York (the “Bank”) and $1 million in municipal loans from Gas City, Indiana (the “City”), by making false statements and providing false and fraudulent documents concerning the Companies’ financial condition. D’SOUZA pled guilty before U.S. District Judge Ronnie Abrams.
U.S. Attorney Preet Bharara said: “As he admitted in court today, Norman D’Souza repeatedly misrepresented the financial condition of two companies to deceive a bank and a municipality into lending the companies $18 million dollars, which was never repaid. Together with our partners at the FBI, we will continue to aggressively pursue accounting frauds like this one, which caused millions of dollars in losses.”
FBI Assistant Director-in-Charge Diego Rodriguez said: “The charges that D'Souza pleaded guilty to are an example of how accounting frauds can lead to large financial losses to banks. Financial fraudsters believe their schemes, whether complex or unsophisticated, will persist undetected. However, when the numbers don't add up, the FBI will unravel the scheme and root out who is responsible.”
According to the allegations contained in the Information to which D’SOUZA pled guilty and statements made during D’SOUZA’s plea proceeding:
From in or about 2011 until in or about September 2014, Company-1, through D’SOUZA and others, fraudulently induced the Bank into lending Company-1 millions of dollars by repeatedly making false and misleading statements about Company-1’s financial condition. D’SOUZA falsely inflated Company-1’s sales and accounts receivable on “borrowing base certificates” and in financial statements that D’SOUZA provided to the Bank pursuant to loan agreements. D’SOUZA used those falsely inflated sales and accounts receivable to mislead the Bank about Company-1’s true financial performance, which enabled Company-1 to secure and draw down a $17 million revolving credit facility from the Bank. Company-1 ultimately defaulted on the loans issued by the Bank in September 2014. At that time, the outstanding balance of the loans was approximately $16.99 million.
Separately, in 2012, the City offered loans and other financial incentives to Company-2 in return for Company-2’s agreement to operate a furniture factory in the City and employ local residents. Among other things, D’SOUZA falsely inflated Company-2’s sales figures in financial statements provided to the City. The false financial statements misled the City about Company-2’s true financial performance and enabled Company-2 to secure and draw down more than $1 million in loans from the City. Company-2 ultimately defaulted on the loans issued by the City in September 2014. At that time, the outstanding balance of the loans was $1 million.
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D’SOUZA, 50, of Monmouth Junction, New Jersey, pled guilty to one count of conspiracy to commit bank fraud, which carries a maximum sentence of 30 years in prison, and one count of conspiracy to commit wire fraud, which carries a maximum sentence of 20 years in prison. D’SOUZA is scheduled to be sentenced on July 22, 2016, before Judge Abrams.
The maximum potential sentences in this case are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant will be determined by the judge.
Mr. Bharara praised the investigative work of the FBI.
The case is being prosecuted by the Office’s Complex Frauds and Cybercrime Unit. Assistant U.S. Attorney Edward A. Imperatore is in charge of the prosecution.
16-074
Chicago Doctor Indicted for Falsifying Medical Certifications to Help Applicants Bypass U.S. Citizenship Testing RequirementsRead the Press Release
CHICAGO — A Chicago physician and a member of her staff have been indicted for falsifying medical certifications to help applicants bypass tests for U.S. citizenship.
DR. JASMINKA KOSTIC and NIKKI POZDOL fraudulently diagnosed the applicants as physically or mentally impaired, which purportedly rendered them unable to demonstrate the required knowledge of U.S. history and the English language, according to an indictment returned yesterday in U.S. District Court in Chicago. A medical certification of impairment allows individuals to seek a waiver from the civics and English-language tests required for naturalized U.S. citizenship.
Dr. Kostic, 59, of Chicago, and Pozdol, 47, of Chicago, are each charged with one count of knowingly making false statements in a document submitted to the U.S. Citizenship and Immigration Services. Dr. Kostic is also charged with one count of attempted unlawful procurement of citizenship or naturalization. Both charges are punishable by a maximum sentence of ten years in prison.
An arraignment date in federal court in Chicago has not yet been scheduled.
Dr. Kostic is a licensed physician who maintains a medical practice on the North Side of Chicago. Pozdol worked in Dr. Kostic’s office. According to the indictment, Dr. Kostic and Pozdol falsely certified that an applicant was unable to demonstrate the ability to read, write and speak English, and unable to answer questions regarding U.S. history and civics – even in a language understood by the applicant. The certification also provided a false length of time in which a medical examination was allegedly rendered to the applicant, and a false description of the clinical methods used to diagnose the purported impairments, according to the indictment.
Dr. Kostic and Pozdol fraudulently certified the impairment results as true and correct in U.S. Citizenship and Immigration Services Form N-648, titled “Medical Certification for Disability Exceptions,” the indictment states. The false N-648 would have allowed the individual to request a physical or mental impairment exception to the civics and English-language tests required for U.S. citizenship, according to the indictment.
The indictment was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; James M. Gibbons, Acting Special Agent-in-Charge of the Chicago Office of the U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); and Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation.
The public is reminded that an indictment 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.
The government is represented by Assistant United States Attorney Devlin Su.
Indictment
Cherry Creek Man Charged with Sexual Abuse of a MinorRead the Press Release
United States Attorney Randolph J. Seiler announced that a Cherry Creek, South Dakota, man has been indicted by a federal grand jury for Sexual Abuse of a Minor.
Sylvan Larrabee, age 23, was indicted on March 15, 2016. He appeared before U.S. Magistrate Judge Mark A. Moreno on March 30, 2016, and pled not guilty to the Indictment.
The maximum penalty upon conviction is up to 30 years in custody and/or a $500,000 fine, up to life of supervised release, and $200 to the Federal Crime Victims Fund. Restitution may also be ordered.
The Indictment alleges that between March 1, 2015, and May 29, 2015, Larrabee knowingly caused and attempted to cause a minor female to engage in sexual acts.
The charges are merely accusations and Larrabee is presumed innocent until and unless proven guilty.
The investigation is being conducted by the Cheyenne River Sioux Tribe and the Federal Bureau of Investigation. Assistant U.S. Attorney Jay Miller is prosecuting the case.
Larrabee was released on bond. A trial date has not been set.
Chelsea Man Indicted for Massachusetts and Puerto Rico Cocaine Distribution SchemeRead the Press Release
BOSTON – A Chelsea resident was arrested today in connection with distributing cocaine in Massachusetts and Puerto Rico.
Jose Ramirez-Baez, 39, was indicted on one count of conspiracy to distribute and possess with the intent to distribute 500 grams or more of cocaine, two counts of attempted possession with the intent to distribute 500 grams or more of cocaine, and three counts of money laundering.
According to the indictment, from June 2014 to March 2016, Ramirez-Baez conspired to possess and distribute cocaine in Chelsea, Everett and Puerto Rico. He also allegedly possessed with intent to distribute heroin in Massachusetts in December 2015 and January 2016. According to the indictment, on three occasions between Sept. 28, 2015 and Nov. 12, 2015, Ramirez-Baez deposited a total of $18,700 in an account bearing the name J&Y Landscaping at a Bank of America branch in Medford. Ramirez-Baez deposited the money in an effort to conceal the fact that it was derived from proceeds of narcotics trafficking.
The narcotics charges provide a sentence of no greater than 40 years in prison, a minimum of four years and up to a lifetime of supervised release and a fine of $5 million on each count. The charge of money laundering provides a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $500,000 on each count. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service; Manny J. Muriel, Acting Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Colonel Richard D. McKeon, Superintendent of the Massachusetts State Police, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Eric Rosen of Ortiz’s Narcotics and Money Laundering Unit.
The details contained in the Indictment are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Cedar Rapids Man Sentenced to 20 Years for Heroin and Fentanyl Conspiracy Resulting in Four Injuries, Two DeathsRead the Press Release
A man who conspired to distribute heroin and fentanyl that led to multiple overdoses and deaths was sentenced today to 20 years in federal prison.
DeShaun Anderson, age 43, from Cedar Rapids, Iowa, received the prison term after a September 23, 2015 guilty plea to one count of conspiracy to distribute heroin and fentanyl resulting in serious bodily injury and death.
At the September plea hearing, Anderson admitted he conspired with others to distribute heroin and another powerful opiate, fentanyl, in Cedar Rapids. Anderson admitted that, on four occasions, users suffered serious bodily injury as a result of using the substances either he or his co-conspirators distributed. He also admitted that two individuals died as a result of using substances distributed by the co-conspirators. All of the deaths and overdose injuries admitted by Anderson occurred between late February and mid-April of 2015. Court documents reflect that, between January and April 2015, at least four other individuals lost consciousness, but did not suffer serious injuries, after using drugs distributed by Anderson or his co-conspirators.
Anderson was sentenced in Cedar Rapids by United States District Court Judge Leonard T. Strand. Anderson was sentenced to 240 months’ imprisonment. A special assessment of $100 was imposed, and he was ordered to make $12,371 in restitution. He must also serve a 4-year term of supervised release after the prison term. There is no parole in the federal system.
Anderson is being held in the United States Marshals’ custody until he can be transported to a federal prison.
The case was investigated by the Cedar Rapids Police Department and the Drug Enforcement Administration (DEA) Task Force consisting of the DEA; the Cedar Rapids Police Department; the Linn County Sheriff's Office; the Marion Police Department; the Iowa City Police Department; and the Iowa Division of Narcotics Enforcement, and prosecuted by Assistant United States Attorney Dan Chatham.
Court file information at https://ecf.iand.uscourts.gov/cgi-bin/login.pl.
The case file number is 15-CR-00046-LRR.
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Carlsbad Man Arrested on Federal Arson ChargeRead the Press Release
ALBUQUERQUE – Travis Hayslip, 36, of Carlsbad, N.M., made his initial appearance today in federal court in Las Cruces, N.M., on a criminal complaint charging him with arson. Hayslip remains in custody pending a preliminary hearing and a detention hearing which have yet to be scheduled.
Hayslip was arrested on March 31, 2016, by the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) on a federal arson charge. According to the criminal complaint, on March 9, 2016, a fire was ignited and caused an estimated $2 million in damages to the Quality Inn, a hotel that was under construction at 4106 National Parks Highway in Carlsbad in Eddy County, N.M. The complaint alleges that Hayslip walked through a part of the hotel that was under construction and allegedly lit a piece of debris with a lighter.
If convicted of the crime charged in the criminal complaint, Hayslip faces a maximum of life in federal prison. Charges in criminal complaints are merely accusations. All criminal defendants are presumed innocent unless proven guilty beyond a reasonable doubt.
Special Agents from the Las Cruces office and the Phoenix Field Division of the Bureau of Alcohol, Tobacco, Firearms and Explosives and members of ATF’s National Response Team worked jointly with the Carlsbad Fire Department, the Carlsbad Police Department, the Pecos Valley Drug Task Force, the Office of New Mexico Fire Marshal, the Office of the New Mexico State Fire Investigator, and Gilbert Police Department K9 Handler, to follow leads, investigate the fire scene, interview witnesses and suspects, and analyze available surveillance footage. Assistant U.S. Attorney Marisa Lizarraga of the U.S. Attorney’s Las Cruces Branch Office is prosecuting the case.
Canadian Man Arraigned on Drug Charges Following Extradition to United States in Case Involving Largest Seizure of Cocaine in District HistoryRead 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 Harinder Dhaliwal, 44, was arraigned this afternoon before U.S. Magistrate Judge H. Kenneth Schroeder. Dhaliwal was indicted by a federal grand jury in February 2014 along with co-defendants Alvin Randhawa and Gursharan Singh on charges of conspiracy to possess with intent to distribute, and to distribute, cocaine and marijuana, conspiracy to export cocaine, attempt to export cocaine, conspiracy to import marijuana, and possession of cocaine with intent to distribute. The charges carry a mandatory minimum sentence of 10 years in prison, a maximum of life, and a $10,000,000 fine.
Assistant U.S. Attorney Timothy C. Lynch, who is handling the case, stated that according to the indictment, between 2007 and May 2011, Dhaliwal conspired with others to smuggle cocaine into Canada from the United States and marijuana into the United States from Canada via several international bridges located including ones in the Buffalo-Niagara region. Investigators believe that approximately 2,000 kilograms of cocaine were trafficked during the course of the conspiracy.Also charged in the conspiracy were Ravinder Arora, Michael Bagri and Parminder Sidhu. All three defendants have been convicted.
Dhaliwal pleaded not guilty at his arraignment and is being detained pending trial. Extradition proceedings are underway to bring Alvin Randhawa and Gursharan Singh, who are also in Canada, to the Western District of New York.
Today’s arraignment is the result of an investigation by Special Agents of Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, Officers from the United States Customs and Border Protection, under the direction of Rose Hilmey, Acting Director of Field Operations, the Peel Regional Police Department, under the direction of Chief Jennifer Evans, the Canada Border Services Agency, under the direction of Rick Comerford, Regional Director General, Southern Ontario Region and the Toronto Police, under the direction of Chief William Blair.The fact that a defendant has been charged with a crime is merely an accusation and the defendant is presumed innocent until and unless proven guilty.
Baton Rouge Man Convicted of Possessing with the Intent to Distribute HeroinRead the Press Release
BATON ROUGE, LA - United States Attorney Walt Green announced today that DARYL D. WALKER, age 42, of Baton Rouge, Louisiana, has pled guilty to possession with intent to distribute heroin in violation of Title 18, United States Code, Section 841, and possession of a sawed-off shotgun in violation of Title 26, United States Code, Section 5861(d), as contained in a Superseding Bill of Information filed in early March.
During a March 29, 2016, hearing, WALKER entered his pleas in Court before Chief U.S. District Judge Brian A. Jackson. According to the stipulated factual basis that was presented to the Court in connection with WALKER’S guilty pleas on March 22, 2015, WALKER obtained 6,000 heroin pills in Baton Rouge, Louisiana. WALKER admitted that he took possession of the heroin pills with the intent to distribute them. WALKER was identified as a potential heroin dealer as part of a substantial heroin-trafficking and money laundering conspiracy investigation conducted by the U.S. Drug Enforcement Tactical Diversion Squad, Internal Revenue Service Criminal Investigation Division, and Bureau of Alcohol, Tobacco, Firearms, and Explosives, with assistance from the Louisiana State Police, East Baton Rouge Parish Sheriff’s Office, Iberville Parish Sheriff’s Office, Baton Rouge Police Department, and the Plaquemine Police Department. DEA aerial surveillance confirmed the delivery of the heroin to WALKER by Aaron Lambert, a co-defendant in the case. In addition to the heroin plea, WALKER also admitted that, at the time of his arrest on November 24, 2015, he possessed a sawed-off shotgun in his Baton Rouge residence.
As a result of his pleas, WALKER is facing a sentence that includes, among other things, a term of up to 50 years imprisonment. At the conclusion of the plea hearing, the Court accepted WALKER’s guilty pleas and remanded him to the custody of the United States Marshal. His sentencing hearing is scheduled for August 4, 2016.
U.S. Attorney Green stated: “My office, together with our federal, state, and local partners, will continue efforts to eliminate drug trafficking and the significant harmful effects on our community resulting from heroin distribution and use. I greatly appreciate the hardworking team of federal, state, parish, and city law enforcement agencies that allowed for the successful identification, arrest, and conviction of a heroin dealer.”
Eric L. Watson, the Assistant Special Agent-in-Charge of the New Orleans Field Division of the U.S. Drug Enforcement Administration stated: “The collaborative efforts of several law enforcement agencies have been successful in dismantling this drug trafficking organization.” These drug trafficking organizations continue to spread poison in our communities making our schools, churches and neighborhoods unsafe. The DEA will continue to attack these organizations using all conventional and unconventional methods to improve our quality of life.
This matter is being handled by the U.S. Attorney’s Office for the Middle District of Louisiana and the U.S. Drug Enforcement Administration. The case is being prosecuted by Assistant United States Attorney Paul L. Pugliese.
Amherst Man Re-Sentenced in Watermark Ponzi SchemeRead 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 Ian Campbell Gent, 73, of Amherst, NY, who was convicted in February 2011 following a jury trial of mail fraud and conspiracy charges in connection with the $6,000,000 Watermark Ponzi scheme, was resentenced to six years in prison by Chief U.S. District Judge William M. Skretny. The defendant appealed his original conviction and sentence. The conviction was upheld but a question was raised about Gent’s sentencing. The defendant was re-sentenced based on the fact that he joined the company a year into the scheme. Gent requested of a “time served” sentence which was rejected by Judge Skretny who instead imposed a 72 month sentence.
Assistant U.S. Attorney Gretchen L. Wylegala, who handled the case, stated that the defendant was hired by Guy Gane, who was convicted and sentenced to 13 years in jail in 2011, to assist him at Watermark M-One Financial Services. The company was shut down in May 2008 as a result of action by the United States Postal Inspection Service and the Securities and Exchange Commission. Gent, along with co-defendant James Lagona, were found guilty following a jury trial of participating in a scheme which began in early 2006, when Gane and his employees began selling "debentures" to trusting clients, claiming to be using the money to invest in waterfront real estate. Gane promised a 10% return after a year to his investors. However, no investments were made, and Gane used new investor funds to pay off the earlier investors. A total of 94 victims suffered losses of over $6,000,000. Lagona was sentenced to nine years in prison.
The sentencing is the culmination of an investigation on the part of Special Agents of the United States Postal Inspection Service, under the direction of Shelly Binkowski, Inspector in Charge, U.S. Postal Inspection Service, Boston Division, and Special Agents of the Internal Revenue Service, Criminal Investigation Division, under the direction of Shantelle Kitchen, Special Agent in Charge of the New York Field Office.
Albuquerque Man Pleads Guilty to Federal Firearms ChargeRead the Press Release
ALBUQUERQUE – Marcos Barela, 28, of Albuquerque, N.M., pleaded guilty today in federal court to violating the federal firearms laws under a plea agreement with the U.S. Attorney’s Office.
Barela was charged by federal indictment on Oct. 7, 2015, with unlawfully possessing a firearm and ammunition on May 4, 2015, in Bernalillo County, N.M. According to the indictment, Barela was prohibited from possessing firearms or ammunition because of his prior criminal history which includes felony convictions for embezzlement, robbery, conspiracy to commit robbery, possession of a controlled substance, battery on a peace officer, arson and criminal damage to property.
Barela was arrested on a warrant for a state probation violation on May 4, 2015. He was arrested on the federal indictment Jan. 21, 2016, after he was transferred to federal custody from state custody.
During today’s proceedings, Barela pled guilty to the indictment and admitted that on May 4, 2015, he was in possession of a loaded firearm which he handled and placed in in the back pocket of his pants upon his arrest by law enforcement.
At sentencing, Barela faces a statutory maximum penalty of ten years in federal prison. He remains in custody pending a sentencing hearing which has yet to be scheduled.
This case was investigated by the Albuquerque offices of the Bureau of Alcohol, Tobacco, Firearms and Explosives and the DEA with assistance from the 2nd Judicial District Attorney’s Office and the Probation and Parole Division of the New Mexico Corrections Department.
Assistant U.S. Attorney David M. Walsh is prosecuting the case under a federal anti-violence initiative that targets “the worst of the worst” offenders for federal prosecution. Under this initiative, the U.S. Attorney’s Office and federal law enforcement agencies work with New Mexico’s District Attorneys and state, local and tribal law enforcement agencies to target violent or repeat offenders primarily based on their prior criminal convictions for federal prosecution with the goal of removing repeat offenders from communities in New Mexico for as long as possible. Because New Mexico’s violent crime rate, on a per capita basis, is one of the highest in the nation, New Mexico’s law enforcement community is collaborating to target repeat offenders from counties with the highest violent crime rates, including Bernalillo County, N.M., under this initiative.
Alabama Resident Pleads Guilty for Role in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Filed More Than 335 False Tax Returns Seeking Over $400,000 in Tax Refunds and Attempted to Threaten Witness
A Montgomery County, Alabama resident pleaded guilty today to one count of wire fraud and one count of aggravated identity theft, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck, Jr. of the Middle District of Alabama.
According to court documents, James Vernon Battle, 30, used stolen personal identification information to prepare and file at least 335 false federal income tax returns for tax years 2013 and 2014 that fraudulently claimed more than $400,000 in tax refunds. Battle obtained the stolen personal identification information from Wendy Huff. Huff worked at two loan companies in Montgomery, Alabama. Battle directed the Internal Revenue Service (IRS) to issue the requested refunds via prepaid debit cards and U.S. Treasury checks. Those prepaid debit cards and checks were sent to various addresses in Montgomery, including Huff’s residence. Battle also brought several U.S. Treasury checks to Huff’s workplace where she used her position to cash them. Huff returned half of the proceeds to Battle and kept the balance for herself.
Battle faces a statutory maximum sentence of 20 years in prison for the wire fraud charge and a mandatory minimum sentence of two years in prison for the aggravated identity theft charge, which will be in addition to any other term of imprisonment he receives. He also faces substantial monetary penalties and restitution.
Wendy Huff previously pleaded guilty and is scheduled to be sentenced on July 14. A sentencing date has not been scheduled for Battle.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of IRS-Criminal Investigation and the U.S. Secret Service, who investigated the case, and Trial Attorneys Michael C. Boteler and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Thursday 31 March 2016
“Sovereign Citizens” Sentenced to Prison for Tax FraudRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated that Jefford Henry, Jeffrey Henry, Linda Marie Henry, Makeshia Glover and Bobby McGuire, were sentenced today in federal court in Columbia, South Carolina, for conspiracy to commit wire, mail and bank fraud, a violation of 18 U.S.C. § 1349, wire fraud, a violation of 18 U.S.C. § 1343, mail fraud, a violation of 18 U.S.C. § 1341, and money laundering, a violation of 18 U.S.C. § 1956. United States District Judge Mary Geiger Lewis of Columbia sentenced Jefford Henry to 108 months, Jeffrey Henry to 121 months, Linda Marie Henry to 87 months, Makeshia Glover to 87 months and Bobby McGuire to 46 months.
Evidence presented at the trial established that the defendants are members of the sovereign citizen group, the Moorish Nation. The defendants stole approximate 2 million dollars from the IRS and attempted to steal over 12 million dollars by submitting fraudulent tax returns. Evidence established that once the money was deposited, the defendants shared in the proceeds, buying automobiles and property. The defendants claimed that their belief structure allowed them to steal from the IRS - an argument that the Government refuted and the jury rejected. Because the defendants have continued to file frivolous and nonsensical demands with the court, they were taken into custody immediately after the sentence was pronounced.
The case was investigated by agents of the FBI and IRS CID. Assistant United States Attorneys Jim May and DeWayne Pearson of the Columbia office prosecuted the case.
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“Pill Mill” Distributor Pleads Guilty to Conspiracy to Distribute OxycodoneRead the Press Release
Baltimore, Maryland - Walter Moffett, age 51, of Chestertown, Maryland pleaded guilty today to his participation in a drug conspiracy in connection with the operation of purported pain management clinics that were actually “pill mills.” Eight co-conspirators previously pleaded guilty to the same charge.
The guilty pleas was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Special Agent in Charge Nicholas DiGiulio, Office of Investigations, Office of Inspector General of the Department of Health and Human Services; Chief Gary Gardner of the Howard County Police Department; Charles County Sheriff Troy Berry; St. Mary’s County Sheriff Tim Cameron; Chief Hank Stawinski of the Prince George’s County Police Department; Calvert County Sheriff Mike Evans; Chief Cathy L. Lanier of the Metropolitan Police Department; Commissioner Kevin Davis of the Baltimore Police Department; Chief James W. Johnson of the Baltimore County Police Department; and Colonel W. Steven Flaherty, Superintendent of the Virginia State Police.
“Pharmaceutical pills can be just as harmful as illegal drugs when they are used without proper medical supervision and without valid medical need,” said U.S. Attorney Rod J. Rosenstein. “Abuse of oxycodone is one of our most significant drug enforcement challenges, and it contributes to the epidemic of heroin overdose deaths.”
“Last year, DEA and its partners combined their resources to identify these drug dealers who cunningly attempted to bypass the Maryland Prescription Drug Monitoring Program (CRISP). The result of these efforts was the dismantling of a drug trafficking organization that was making a toxic profit off of addiction. These “runners” and “distributors” were allowing a countless number of highly addictive prescription opioids to hit the streets of Maryland, Delaware, Washington, DC, and Virginia,” said Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division. “The DEA wants to thank our law enforcement partners for their unwavering commitment to eradicating these drug dealers, who are destroying lives and making enormous profits from the diversion of pain medication.”
According to court documents, “pill mills,” routinely engage in the practice of prescribing and dispensing controlled substances - primarily oxycodone - outside the scope of professional practice and without a legitimate medical purpose. The owners kept the profits from the pill mill operations and from the sales of oxycodone in cash. According to the indictments, the owners recruited “distributors” and “runners” to visit their clinics so that they would profit from the cash fees charged for an office visit. Runners are recruited - usually by a distributor - to enter pill mill clinics with fictitious complaints of pain in order to obtain prescriptions for oxycodone and other controlled substances. Typically, runners filled the prescription and gave the oxycodone tablets they received to the distributor. Runners were typically paid in either cash or oxycodone tablets for their services. The distributors then generally sold the pills for a profit.
According to his plea agreement, since at least 2014, Moffett conspired with other individuals to distribute oxycodone. During the course of the conspiracy, Moffett obtained large quantities of oxycodone 30 mg pills by visiting pain clinics, including PG Wellness Center, in Oxon Hill, Maryland, and A Plus Pain Center, in Washington, DC, and getting prescriptions from the doctors working there. Moffett also worked with others to go to the clinics to obtain prescriptions for oxycodone, also without a medical need. Those individuals then filled the prescriptions at various pharmacies in the Maryland, Delaware, Washington, D.C., and Virginia areas and provided the pills to Moffett and other conspirators. Moffett, who was an addict, took some of the pills himself and sold the remaining pills to co-conspirators for a profit. Those co-conspirators then re-sold the oxycodone pills for up to $30 per pill.
Obtaining and filling the prescriptions for oxycodone required a significant amount of coordination between Moffett and his co-conspirators. For example, they had to ensure that individuals were not caught getting oxycodone prescriptions from multiple clinics at the same time. The Maryland Prescription Drug Monitoring Program (known as CRISP) allowed practitioners to report all narcotic prescriptions so that other practitioners could make sure that patients were not obtaining multiple prescriptions. Moffett and other members of the conspiracy regularly sought to circumvent the limitations imposed by CRISP and other states’ prescription drug monitoring programs. During the course of the conspiracy, investigators overheard Moffett discussing with others conspirators the details of his and others’ visits to the clinics, filling the prescriptions, and distributing the pills.
During Moffett’s participation in the conspiracy at least 340,000 mgs of oxycodone were distributed.
U.S. District Judge Marvin J. Garbis scheduled sentencing for Moffett on August 12, 2016 at 10:00 a.m.
Co-defendants Danielle Silberstein, age 32, of Waldorf; Peter Snyder, age 35, of Ocean City, Maryland; Robert Long, age 35, of Mechanicsville, Maryland; Jamie Davis, age 29, of LaPlata, Maryland; Ronald Tennyson, age 33, of Mechanicsville; Terrell Downing, age 26, of New Carrollton, Maryland; and John Fields, age 67, of Temple Hills, Maryland, previously pleaded guilty to the conspiracy and are awaiting sentencing. Ronald Rust, age 45, of Alexandria, Virginia, also pleaded guilty and was sentenced to two years in prison. Co-defendant Melissa Catlett, age 39, of King George, Virginia passed away before her case was adjudicated.
United States Attorney Rod J. Rosenstein praised the DEA Tactical Diversion Squads from Baltimore and Washington DC., HHS-Office of Inspector General, Howard County Police Department, Charles County Sheriff’s Office, St. Mary’s County Sheriff’s Office, Prince George’s County Police Department, Calvert County Sheriff’s Office, Metropolitan Police Department, Baltimore County Police Department, Baltimore City Police Department, and Virginia State Police for their work in this pharmaceutical investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kenneth S. Clark and Joshua Ferrentino, who are prosecuting this Organized Crime Drug Enforcement Task Force case.
Woman Who Took Minor Child She Met During Online X-Box 360 Gaming from Texas to Wisconsin to Engage in Sexual Activity is Sentenced to 10 Years in Federal PrisonRead the Press Release
DALLAS — A woman who pleaded guilty to federal offenses stemming from her taking a minor child, whom she met during online gaming, from Texas to Wisconsin, where she sexually assaulted him, was sentenced today to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
Jennifer Lynn Dougherty, 34, was sentenced by U.S. District Judge Ed Kinkeade to serve a total of 120 months in federal prison. Dougherty pleaded guilty in December 2015 to an indictment charging two counts of traveling in interstate commerce – from Wisconsin to Texas – with the intent to engage in criminal sexual activity. She also pleaded guilty to one count of transportation of a minor in interstate commerce – from Texas to Wisconsin – with intent to engage in criminal sexual activity. She has been in custody since her arrest in September 2015 on a related federal criminal complaint.
According to the affidavit filed with that complaint, after being notified of a missing minor child by the child’s parents, the Garland Police Department contacted the National Crime Information Center (NCIC) and entered the victim into the database as a missing juvenile. A review of the minor child’s X-Box 360 gaming system by detectives with the Garland Police Department revealed recent chat communications, sexual in nature, with a particular user, later identified as Dougherty.
On Wednesday, September 16, 2015, officers with the Dallas Police Department assigned to the Dallas Love Field airport, contacted NCIC advising they had located an individual matching the child’s description, in the company of an adult female, at the airport. Upon receipt of this information, officers with the Garland Police Department went to the Dallas Love Field airport and retrieved the missing child and adult female.
The case was brought as part of Project Safe Childhood, a nationwide initiative, which was launched in May 2006 by the Department of Justice, to combat the growing epidemic of child sexual exploitation and abuse. Led by U.S. Attorney’s Offices and the Criminal Division’s Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals, who sexually exploit children, and identify and rescue victims. For more information about Project Safe Childhood, please visit http://www.justice.gov/psc/. For more information about internet safety education, please visit http://www.justice.gov/psc/ and click on the tab “resources.”
The FBI and the Garland Police Department investigated the case. Assistant U.S. Attorney Camille Sparks was in charge of the prosecution.
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Winnebago Man Sentenced for Assault with A KnifeRead the Press Release
United States Attorney Deborah R. Gilg announced today that Mitchell Lee DeCora, age 28, of Winnebago, Nebraska was sentenced for his conviction of assault with a dangerous weapon. Senior United States District Court Judge Joseph F. Bataillon sentenced DeCora to 27 months of imprisonment to be followed by three years of supervised release.
On October 1, 2015, DeCora was at a residence on the Winnebago Indian Reservation drinking with the victim and several other persons. DeCora suddenly pulled out a knife and held it to the throat of the victim. Thereafter, DeCora punched the victim in the face and knocked him to the ground causing minor injuries.
This case was investigated by the Bureau of Indian Affairs and the Federal Bureau of Investigation.
West Haven Man Sentenced to 5 Years in Prison for Drug and Gun OffensesRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that JESSE WRUBEL, 29, of West Haven, was sentenced today by Senior U.S. District Judge Alfred V. Covello in Hartford to 60 months of imprisonment, followed by three years of supervised release, for trafficking marijuana and unlawfully possessing firearms.
This matter stems from a DEA Task Force investigation that included the use of court-authorized wiretaps, controlled purchases of marijuana and physical surveillance. On June 4, 2013, WRUBEL and Matthew Voloshin were arrested on state charges. Search warrants executed in association with their arrests revealed two loaded handguns and approximately $50,000 that were found at Voloshin’s East Haven residence, and three handguns and approximately 40 pounds of marijuana that were found at an East Haven garage rented by Voloshin. Three of the five firearms were stolen. Law enforcement also seized approximately 20 pounds of marijuana, approximately $15,000 and a loaded nine millimeter rifle from WRUBEL.
On January 30, 2014, a grand jury returned an indictment charging WRUBEL and Voloshin with marijuana and firearm offenses. WRUBEL has been detained since his arrest on February 7, 2014. On November 24, 2015, he pleaded guilty to one count of conspiracy to distribute marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime.
Voloshin also has been detained since his arrest on February 7, 2014. On June 30, 2015, he pleaded guilty to one count of conspiracy to distribute more than 20 kilograms of marijuana and one count of possession of a firearm in furtherance of a drug trafficking crime. On March 30, 2016, he was sentenced to 66 months of imprisonment.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments. The case was prosecuted by Assistant U.S. Attorneys Patrick Caruso and Amy Brown.
Waterbury Tax Preparer Admits Filing Hundreds of False Tax ReturnsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that MARCUS FOX, 41, of Waterbury, pleaded guilty today in Hartford federal court to preparing and filing hundreds of false tax returns.
According to court documents and statements made in court, FOX prepared tax returns for individuals in his community, many of whom were associated with a church he attended. From approximately 2009 through 2012, FOX prepared and filed more than 900 tax returns with the U.S. Internal Revenue Service on behalf of clients. A number of tax returns that FOX prepared contained false information, including false childcare credits, education credits, American opportunity credits, itemized deductions, education expenses, charitable contributions, unreimbursed employee business expenses, hobby expenses, and childcare costs. The false returns resulted in clients receiving substantial refunds to which they were not entitled. FOX typically received payment of between $200 and $350 for his tax preparation services.
In addition, beginning in approximately 2011, FOX falsified a number of returns in a manner that allowed FOX to secure a greater payout for himself without his clients' knowledge. FOX would prepare a client tax return with significant falsified credits or expense deductions, which resulted in a fraudulent claim for a substantial refund. The tax return would be e-filed with the IRS with instructions to split payment of the large refund between the client and FOX, with FOX receiving a substantial portion of the payment. FOX would also prepare a second tax return, which he never filed, but instead provided to his client to hide the ongoing scheme.
The government suffered a tax loss of more than $2.2 million as a result of this scheme.
FOX pleaded guilty to two counts of aiding and assisting the filing of a false tax return. He is scheduled to be sentenced by Senior U.S. District Judge Alfred V. Covello on June 23 2016, at which time he faces a maximum term of imprisonment of six years. He also has agreed that he owes restitution in the amount of $2,276,837.
This matter is being investigated by the Internal Revenue Service – Criminal Investigation Division, and is being prosecuted by Assistant U.S. Attorney Christopher W. Schmeisser.
U.S. Army Specialist Arrested on Federal Child Porn Distribution ChargeRead the Press Release
In San Antonio, a U.S. Army Specialist assigned to Fort Sam Houston remains in federal custody today in connection with the sexual exploitation of minors announced United States Attorney Richard L. Durbin, Jr., and Federal Bureau of Investigation Special Agent in Charge Christopher Combs, San Antonio Division.
A federal complaint filed this morning, charges 26–year-old Anthony Quinton Quesinberry with one count of distribution of child pornography. According to the criminal complaint, during a one-week period beginning on February 18, 2016, the defendant transmitted ten posts to random users of the social networking application named YikYak which contained images of child pornography and/or verbiage soliciting minors for sexual contact.
Yesterday, FBI agents executed a search warrant and seized the defendant’s cellphone and desktop computer. A preliminary forensic examination of the phone and computer revealed the presence of child pornography.
Upon conviction, Quesinberry faces up to 20 years in federal prison. A detention hearing for the defendant is expected to occur next week in U.S. Magistrate court in San Antonio.
It is important to note that a criminal complaint is merely a charge and should not be considered as evidence of guilt. The defendant is presumed innocent until proven guilty in a court of law.
This investigation continues. It is being conducted by the FBI together with the U.S. Army Criminal Investigative Command at both Fort Sam Houston and Fort Riley, KS. Assistant United States Attorney Sarah Wannarka is prosecuting this case on behalf of the Government.
Two Hobbs, NM Men Sentenced to Federal Prison for Drug TraffickingRead the Press Release
In Pecos today, 45-year-old Claudio Marques Martinez, Jr., was sentenced to 262 months in federal prison followed by eight years of supervised release for conspiring to transport marijuana from the Big Bend area to Hobbs, NM, for further distribution announced United States Attorney Richard Durbin, Jr., and DEA Special Agent in Charge Will Glaspy, El Paso Division.
In May 2015, Martinez’s co-defendant, 62-year-old Norberto Pando Aranda (aka “Beto”) was sentenced to 240 months in federal prison followed by ten years of supervised release for his role in the marijuana distribution scheme.
According to court records, from December 2012 to May 2013, the defendants recruited drivers to pick up marijuana along the border with Mexico in South Brewster and Presidio, Counties of Texas, and transport it to Hobbs, New Mexico. During the conspiracy, authorities seized over 1,200 kilograms of marijuana attributed to this organization. Five drivers hired by the defendants have been sentenced to federal prison terms ranging from 41 to 60 months.
This joint investigation was conducted by the DEA High Intensity Drug Trafficking Area (HIDTA) Task Force in Alpine, TX, with assistance from the Lea County (NM) Drug Task Force. Assistant United States Attorney James J. Miller, Jr., prosecuted this case on behalf of the Government.
Towson Man Pleads Guilty to Credit Card Fraud Committed While Awaiting Sentencing for Another Fraud SchemeRead the Press Release
Baltimore, Maryland – Jerry Anderson, age 30, of Towson, Maryland, pleaded guilty today to bank fraud and aggravated identity theft arising from a scheme to use a counterfeit credit card to make fraudulent purchases, while he was awaiting sentencing on a previous fraud conviction.
The guilty plea was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Brian Murphy of the United States Secret Service - Baltimore Field Office; Chief James W. Johnson of the Baltimore County Police Department; and Baltimore County State’s Attorney Scott Shellenberger.
According to his plea agreement, on April 7, 2015, Anderson pleaded guilty to a bank fraud conspiracy and aggravated identity theft related to a scheme to use stolen credit card and other personal information of victims to purchase items, including Apple iPhones, at retail locations in Maryland and elsewhere. The total actual loss resulting from the conspiracy, which operated from at least February to October 2014, was $419,807.14, and the potential loss was over $1.8 million. The conspiracy involved over 250 victims. After his guilty plea, Anderson was released under the supervision of U.S. Pretrial Services. One of the standard conditions of release is that the defendant not commit any new crimes.
Anderson admitted that on June 25, 2015, he purchased four $100 American Express gift cards at a store in Cockeysville, Maryland, using a Visa credit card. Store surveillance depicts Anderson making these purchases. The Visa credit card used in the transaction belongs to “G.B.” After being contacted by law enforcement, the victim advised that that a fraud alert had been placed on the account and that the charges on June 25, 2015 were fraudulent. The victim further advised that he did not give permission to any individual to possess or use his credit card.
On July 3, 2015, Anderson was witnessed by Apple Loss Prevention at an Apple Store in Bethesda, Maryland, purchasing two iPhones totaling $1,375.88 using a combination of gift cards. Specifically, Anderson used the American Express gift cards he fraudulently purchased on June 25, 2015, along with other gift cards, to purchase the phones. The total actual loss as a result of Anderson’s conduct was $1,389.23.
On July 8, 2015, Anderson was ordered to be detained pending sentencing. He remains detained.
U.S. District Judge George L. Russell III has scheduled sentencing for Anderson on July 8, 2016, at 11:30 a.m.
The Maryland Identity Theft Working Group has been working since 2006 to foster cooperation among local, state, federal, and institutional fraud investigators and to promote effective prosecution of identity theft schemes by both state and federal prosecutors. This case, as well as other cases brought by members of the Working Group, demonstrates the commitment of law enforcement agencies to work with financial institutions and businesses to address identity fraud, identify those who compromise personal identity information, and protect citizens from identity theft.
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 U.S. Secret Service, Baltimore County Police Department, and Baltimore County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Ayn B. Ducao and Zachary A. Myers, who are prosecuting the case.
Three Louisiana Residents Plead Guilty to Illegal Possession of FirearmsRead the Press Release
U.S. Attorney Kenneth A. Polite announced today that STERLING ROBINSON, age 26, of Gretna, DEANDRE ROSE, age 23, and EVERETT ROSS, age 28, both of New Orleans, pled guilty to violations of the Federal Gun Control Act. ROBINSON pled guilty to possession of a firearm in furtherance of narcotics distribution. ROSS and ROSE each pled guilty to possession of firearms by felons.
According to court documents, on October 14, 2014, Gretna police officers were patrolling in the area of Milton and Pratt Streets when they noticed an illegally parked vehicle. As the officers approached the vehicle to issue a citation, they saw a bag of crack cocaine in the passenger door handle. The officers also observed a semi-automatic handgun secured between the passenger seat and the middle console. A short time later, the officers observed ROBINSON, ROSE, ROSS and a female acquaintance approach and attempt to enter the vehicle.
As ROBINSON was removed from the area of the front passenger seat, he resisted arrest and attempted to reach for the bag of crack cocaine. ROSS was removed from the driver’s seat of the vehicle and ROSE was removed from the rear passenger seat. The officers searched the vehicle and two additional handguns were discovered. A Ruger model P85 9mm semi-automatic handgun was found underneath the front of the driver’s seat and accessible to ROSS. A Springfield model XDM, .45-caliber semi-automatic handgun was found underneath the rear of the front passenger’s seat and accessible to ROSE. The initially-observed, Kahr model CW9, 9mm semi-automatic handgun was accessible to ROBINSON. Further investigation revealed that each of the firearms had been reported stolen.
Court records revealed that ROSS and ROSE each had two prior felony convictions in Orleans Parish Criminal District Court. As such, they both were prohibited from possessing firearms by both state and federal law.
ROBINSON faces a maximum term of imprisonment of life, a maximum fine of $250,000 and up to five years of supervised release following any term of imprisonment. ROSS and ROSE face a maximum terms of imprisonment of ten years, a maximum fine of $250,000 and up to three years of supervised release following any term of imprisonment. U.S. District Judge Jane Triche Milazzo scheduled sentencing for June 30, 2016.
U.S. Attorney Polite praised the work of the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) New Orleans Division Office in investigating this matter. Assistant United States Attorney Nolan D. Paige, along with former Special Assistant United States Attorney Brian Ebarb, who was assigned from the Orleans Parish District Attorney’s Office are in charge of the prosecution.
Three Liberty County Defendants Sentenced to Federal Prison in Drug and Gun CasesRead the Press Release
Savannah, GA – Daniel Britton, 45, of Midway, Georgia, was sentenced yesterday to 41 months in prison by United States Chief Judge Lisa Godbey Wood after pleading guilty to transporting a firearm to Georgia from another state.
On March 28, 2016, Laron Bruce, 35, of Riceboro, Georgia, was sentenced to 170 months in prison by United States Court Judge William T. Moore, Jr. after pleading guilty to his role in a crack cocaine conspiracy.
Herbert Lewis, 27, of Ludowici, Georgia, was sentenced yesterday to 110 months in prison by Judge Moore after pleading guilty to possessing a stolen firearm. Lewis was in possession of the stolen firearm at the time he was arrested on outstanding warrants from Liberty County.
United States Attorney Edward Tarver stated, “The United States Attorney’s Office remains committed to combating drug and gun related crime throughout the Southern District of Georgia. The prison sentences in these Liberty County cases send a loud and clear message that dealing drugs and committing crimes involving guns will not be tolerated.”
Liberty County Sheriff Steve C. Sikes said, “I appreciate the efforts of the Liberty County Sheriff’s Office deputies during the investigations of these three individuals. Dangerous criminals have been removed from our community through the cooperative efforts of the Liberty County Sheriff’s Office and our partners at the ATF and the GBI. We appreciate their assistance, and that of the U. S. Attorney’s Office in making our county a safer place to live.”
This case was investigated by the ATF, the Georgia Bureau of Investigation, and the Liberty County Sheriff’s Office. Assistant United States Attorneys Charlie Bourne, Thomas Clarkson, Gregory Gilluly, and Scarlett Nokes prosecuted these cases on behalf of the United States. For additional information, please contact First Assistant United States Attorney James D. Durham at (912) 201-2547.
Texas Woman Indicted on Charge of Possession with Intent to Distribute HeroinRead the Press Release
U.S. Attorney Kenneth A. Polite announced that LORI BROADWAY, age 34, Galveston, Texas, was indicted today on one count of possession with the intent to distribute one kilogram or more of heroin.
According to court documents, on January 22, 2016, officers conducting narcotics interdiction at the AMTRAK station in New Orleans identified BROADWAY, a train passenger arriving from Houston, as a possible drug trafficker. After obtaining consent to search BROADWAY’s suitcases, officers seized approximately six kilograms of heroin.
If convicted of the charge, BROADWAY faces a minimum term of imprisonment of ten years, followed by a minimum of five years supervised release, and a fine of $10,000,000.
U.S. Attorney Polite reiterated that the Indictment is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the Louisiana State Police and the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Andre’ Jones is in charge of the prosecution.
Texas Man Pleads Guilty to Drug Conspiracy and MurderRead the Press Release
U.S. Attorney Kenneth A. Polite announced that DERRICK FIELDS, age 34, of Texas, pled guilty today to participating in a conspiracy to distribute over 5 kilograms of cocaine hydrochloride and to participation in a murder that took place in League City, Texas that was done in the course of the drug conspiracy.
According to court records, FIELDS acknowledged the drug conspiracy involved between 50 and 150 kilograms of cocaine hydrochloride and over $1,000,000 in cash that was being distributed in 2015 between Texas and Georgia, via Louisiana. FIELDS also admitted that on July 30, 2015, he participated in the murder of Antonio Martins.
FIELDS will face a sentence of not less than 30 years and not more than life in prison, a fine of not more than $10,000,000, and at least five years of supervised release. U.S. District Judge Carl J. Barbier set sentencing for July 7, 2016.
U.S. Attorney Polite praised the work of the United States Drug Enforcement Administration (DEA), the Houston Police Department, the League City Police Department, and the District Attorney’s Office in Galveston, Texas for their cooperation with in bringing FIELDS and several of his co-conspirators to justice. Assistant United States Attorneys Maurice E. Landrieu, Jr. and André G. Jones are in charge of the prosecution.
Tennessee Man Charged with Federal Crimes in Confrontation with Law Enforcement at U.S. CapitolRead the Press Release
WASHINGTON – Larry Russell Dawson, 66, of Antioch, Tenn., was charged today with two federal offenses stemming from a confrontation with law enforcement while he was being screened on Monday, March 28, 2016 at the United States Capitol Visitor Center, announced U.S. Attorney Channing D. Phillips and Matthew R. Verderosa, Chief of the U.S. Capitol Police.
Dawson was charged in a criminal complaint with assaulting, resisting, or impeding certain officers or employees with a dangerous weapon, which carries a statutory maximum of 25 years in prison, and assaulting a federal law enforcement officer with a dangerous weapon, which carries a statutory maximum of 30 years. He is to appear at a later date, yet to be determined, in the U.S. District Court for the District of Columbia.
This case is being investigated by the U.S. Capitol Police with assistance from the Metropolitan Police Department. It is being prosecuted by Assistant U.S. Attorney David Mudd and Special Assistant U.S. Attorney Nathan Charles of the U.S. Attorney’s Office for the District of Columbia.
A criminal complaint is merely a formal charge that a defendant has committed a violation of criminal laws. Every defendant is presumed innocent until, and unless, proven guilty.
Tax Preparer Indicted in Alleged Tax Fraud SchemesRead the Press Release
PROVIDENCE, R.I. – A federal grand jury in Providence on Wednesday returned a 70-count indictment alleging that Belkis M. Guzman, 47, of Cranston, a former tax preparer employed at El Centro Multiservices in Providence, participated in schemes to prepare false tax returns claiming deductions taxpayers were not entitled to and to file fraudulent tax returns using personal identifying information of others without authorization. It is alleged that the fraudulent tax returns resulted in tax refunds totaling more than $685,000, which were deposited into a bank account controlled by Guzman.
The indictment, which charges Guzman with thirty-three counts of preparing false income tax returns, eight counts of wire fraud, four counts of aggravated identity theft, twenty-three counts of forgery, and one count of theft of government funds, is announced by United States Attorney Peter F. Neronha and Manny J. Muriel, Acting Special Agent in Charge, Internal Revenue Service Criminal Investigation.
It is alleged in the indictment that in one scheme, for tax years 2009, 2010, and 2011, Guzman filed at least thirty-three fraudulent tax returns by creating, inflating or falsifying her clients’ dependents, exemptions, tax credits, deductions and expenses, with and without her client’s knowledge.
In a separate scheme, the indictment alleges that Guzman participated in a scheme to use personal identifying information of others without their authorization to file fraudulent tax returns during tax years 2009, 2010, and 2011. It is alleged that tax refunds totaling $686,823.65, obtained through the filing of fraudulent tax returns were deposited into a personal checking account belonging to Guzman.
Belkis Guzman is scheduled to appear in U.S. District Court in Providence for arraignment on April 4, 2016. An indictment is merely an allegation and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Prior to the return of an indictment against Belkis Guzman, an investigation by IRS Criminal Investigation and the United States Attorney’s Office resulted in federal tax fraud charges to be brought against Leon F. Tejada, 51, of Providence, the operator of El Centro Multiservices. Tejada pleaded guilty on December 18, 2015, to charges of tax fraud and wire fraud.
At the time of his guilty plea, Tejada admitted to the court that during tax years 2009 through 2012, without the knowledge of his clients, he created and falsified clients’ dependents, exemptions, tax credits, deductions, and expenses in order to increase the amount of tax refund due to some of his clients. An investigation by agents from IRS Criminal Investigation and by the United States Attorney’s Office determined that the tax fraud scheme resulted in a loss to the United States of $54,440.
Tejada also admitted to the court that he also devised a scheme to divert some of his clients’ tax refunds through a bank clearing house, at which time, without the knowledge of his clients, a portion of the funds were diverted into his own bank account for his own personal use.
Tejada is scheduled to be sentenced by U.S. District Court Chief Judge William E. Smith on April 5, 2016.
The cases are being prosecuted by Assistant U.S. Attorney Richard W. Rose.
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belkis_guzman_indictment.pdf
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Southern California Man Brings Methamphetamine and Heroin to Fresno for SaleRead the Press Release
FRESNO, Calif. — A federal grand jury returned a two-count indictment today against Jesus Ramon, 31, of Moreno Valley, charging him with possession of methamphetamine and heroin with the intent to distribute, United States Attorney Benjamin B. Wagner announced.
According to court documents, Ramon negotiated to sell a large quantity of methamphetamine and heroin to purported buyers who were actually Drug Enforcement Administration agents. Ramon brought the drugs to a parking lot located at Jensen and Highway 99 in Fresno where, after agents viewed the drugs, Ramon was arrested. Approximately 45 pounds of methamphetamine and over one kilogram of heroin was seized from the vehicle Ramon arrived in.
This case is the product of an investigation by the Drug Enforcement Administration, Fresno Police Department, and the Fresno Sheriff’s Department. Assistant United States Attorney Laurel J. Montoya is prosecuting the case.
If convicted, Ramon faces a maximum statutory penalty of 20 years in prison and a $1 million fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
San Antonio Businessman Pleads Guilty to Role in Kickback Scheme Involving Local School District Insurance PlansRead the Press Release
In San Antonio today, 46-year-old independent insurance consultant William O. Haff faces up to five years in federal prison after pleading guilty this afternoon to his role in a kickback/bribery scheme involving local school district insurance plans announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
Appearing before United States District Judge Xavier Rodriguez, Haff pleaded guilty to one count of conspiracy to commit wire fraud. According to court records, The Mullen Pension and Benefit Group LLP (the “Mullen Group”) was a limited partnership that did business in San Antonio and elsewhere. Among other things, the Mullen Group provided insurance and related services to state and local government entities, including school districts and municipalities, on behalf of various insurance companies. The Mullen Group received payment from these insurance companies in the form of commissions, ordinarily a certain percentage of revenue received by the insurance company from a particular contract.
By pleading guilty, Haff admitted that from March 2008, to February 2010, he accepted approximately $64,584 from the Mullen Group in exchange for providing confidential information concerning employee insurance plan Request For Proposals (RFP), including one issued by the Edgewood Independent School District in San Antonio, that was not available to competitors of the Mullen Group. Haff also admitted to accepting money from the Mullen Group for influencing Boards of Trustees for the School Districts to award insurance services contracts to clients of the Mullen Group. In July 2008, Haff accepted $2,500 for his recommendation of a Mullen Group client to the San Antonio ISD Board of Trustees.
“Haff schemed to enrich himself by effectively selling inside information to give the recipients an unfair competitive advantage, and thereby undermine the integrity of the public contracting process,” stated United States Attorney Richard L. Durbin, Jr.
Haff remains on bond pending sentencing scheduled for 1:30pm on July 13, 2016.
This investigation was conducted by special agents from the FBI. Assistant United States Attorneys Mark Roomberg and Joe Blackwell are prosecuting this case on behalf of the Government.
Rocky Hill Man Sentenced to 3 Years in Federal Prison for Trafficking OxycodoneRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, announced that NICHOLAS DYBER, 30, of Rocky Hill, was sentenced today by Chief U.S. District Judge Janet C. Hall in New Haven to 36 months of imprisonment, followed by five years of supervised release, for trafficking oxycodone. DYBER also was ordered to pay a $40,000 fine.
According to court documents and statements made in court, in 2012, the Drug Enforcement Administration’s New Haven Task Force began investigating an oxycodone trafficking operation headed by DYBER, who formerly resided in West Hartford. The investigation, which included the use of court-authorized wiretaps, controlled purchases of oxycodone, physical surveillance and the use of an undercover officer, revealed that DYBER was being supplied with bulk quantities of oxycodone by Harland Fields of the Bronx, N.Y., and Eduardo Garcia of Modesto, Calif. At times, DYBER paid Brian Vanderpool, of West Hartford, to travel to New York to pick up oxycodone from Fields and transport the pills to DYBER in Connecticut. DYBER distributed the pills he received from Fields and Garcia to customers and other Hartford-area distributors.
DYBER was arrested on October 11, 2013. On February 20, 2014, he pleaded guilty to one count of conspiracy to possess with intent to distribute 10,000 oxycodone pills
Fields, Garcia and Vanderpool also pleaded guilty. On August 21, 2014, Garcia was sentenced to 60 months of imprisonment. On October 27, 2014, Fields was sentenced to 66 months of imprisonment. On November 4, 2014, Vanderpool was sentenced to four months in a halfway house and four years of supervised release.
This matter was investigated by the Drug Enforcement Administration’s New Haven Task Force, which includes personnel from the New Haven, Hamden, Branford, Meriden, West Haven, North Haven, East Haven, Derby and Ansonia Police Departments. The case was prosecuted by Assistant U.S. Attorney Patrick Caruso.
Rhode Island Man Sentenced to Prison for Trafficking in Counterfeit Viagra from ChinaRead the Press Release
BOSTON – A Pawtucket, R.I. man was sentenced today in U.S. District Court in Boston for trafficking in counterfeit prescription medications.
Ricky Lugo, 49, was sentenced by U.S. District Court Judge Nathaniel M. Gorton to a year and a day in prison and ordered to pay restitution of $104,239. In October 2015, he was charged with four counts of trafficking in counterfeit versions of erectile dysfunction medications, including Pfizer Inc.’s Viagra, Eli Lilly’s Cialis, and Bayer’s Levitra.
From June 2013 to March 2014, Lugo sold counterfeit Viagra, Cialis, and Levitra on Craigslist and in person. Lugo purchased the counterfeit pharmaceuticals from sources outside the United States, including from China. Lugo knew that the goods he was selling were counterfeit, but nonetheless sold and attempted to sell thousands of the tablets.
At today’s sentencing hearing, Judge Gorton said that Lugo’s crime was serious, and that it was important that he be punished as a form of general deterrence to others that might consider selling counterfeit pharmaceuticals on the Internet. Judge Gorton noted that but for the extenuating circumstances of Lugo’s medical condition, he would have sentenced him to a longer term of imprisonment.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston; and Shelly Binkowski, Inspector in Charge of the U.S. Postal Inspection Service, made the announcement today. The case was prosecuted by Assistant U.S. Attorney Amy Harman Burkart of Ortiz’s Cybercrime Unit.
Readout of Attorney General Lynch's Meeting with Belgian Deputy Prime Minister and Minister of Security and the Interior Jan JambonRead the Press Release
Attorney General Loretta Lynch and Belgian Deputy Prime Minister and Minister of Security and the Interior Jan Jambon met today at the U.S. Department of Justice in Washington, D.C., and pledged continued support and cooperation between their two countries. The Attorney General and the Deputy Prime Minister discussed cooperation and collaboration in the fight against terrorism.
Plano Anesthesiologist Convicted for Role in Pill Mill Operation is Sentenced to 25 Years in Federal PrisonRead the Press Release
DALLAS — Licensed anesthesiologist, Theodore E. Okechuku, 59, of Plano, Texas, was sentenced today by Chief U.S. District Judge Jorge A. Solis to 300 months in federal prison following his conviction at trial in October 2015 on felony offenses stemming from his role in a pill mill and drug distribution conspiracy, announced U.S. Attorney John Parker of the Northern District of Texas.
Also today, coconspirator Elechi N. Oti, 50, of Augusta, Georgia, who was convicted at trial with Okechuku, was sentenced by Judge Solis to 97 months in federal prison.
Okechuku and Oti were each convicted on one count of conspiracy to unlawfully distribute a controlled substance. Okechuku was also convicted of using, carrying, and brandishing a firearm during and in relation to a drug trafficking crime and conspiring to use, carry, and brandish a firearm during and in relation to a drug trafficking crime.
Two others convicted at trial for their roles in the conspiracy, Emmanuel C. Iwuoha, 52, of Allen, Texas, and Kelvin L. Rutledge, 43, of Dallas, are scheduled to be sentenced next month.
Three co-conspirators, all from Dallas, pleaded guilty before trial. Ignatius O. Ezenagu, 57; David L. Reed, 44; and Jerry K. Reed, 45; each pleaded guilty to one count of conspiracy to unlawfully distribute a controlled substance. Ezenagu, who also pleaded guilty to one count of brandishing a firearm in relation to a drug trafficking crime, was sentenced to serve a total of 70 months in federal prison. David and Jerry Reed are scheduled to be sentenced next month.
The government presented evidence at trial that Okechuku owned and operated, with the assistance of coconspirator Ezenagu, Medical Rehabilitation Clinic (MRC). MRC was initially located at 9304 Forest Lane in Dallas, and then later, the defendants moved MRC to 9205 Skillman Street in Dallas.
MRC operated as a “pill mill,” in that it functioned as a place to unlawfully obtain controlled substances, such as hydrocodone, and not as a medical facility. Okechuku and business manager Ezenagu charged cash only for office visits in exchange for unlawful hydrocodone prescriptions.
The coconspirator drug dealers, including David Reed and his brother Jerry Reed, along with Rutledge, recruited “patients,” often from homeless shelters, and drove them in groups to MRC. On a daily basis, these dealers brought multiple patients at a time to MRC. They would escort the patients into the clinic and coordinate their office visits with Ezenagu.
Often, dealers filled out patient information for the recruits they brought to the clinic. Dealers paid cash for the office visits of their patients, and handed the money to their patients before they entered the clinic, gave it to them in MRC’s waiting room, or paid the employees directly. MRC had a caged cash room where people would pay for the office visit with money provided by the dealers, by handing the money through an opening in the bars to a clinic employee. Large amounts of cash, often more than $5,000, passed through the clinic’s drug trafficking business on a daily basis.
Okechuku and Ezenagu conspired to employ armed security guards to protect the business, its employees, and the dealers. These armed security guards displayed and brandished various firearms on their waists for all to see in order to deter violence by the “patients” and to protect the illicit drug money from robbery.
Okechuku rarely saw patients, but delegated that task to licensed physician assistant and coconspirator Oti or to Emmanuel Iwuoha, who held no medical or nursing license in Texas, but acted as a doctor, using Okechuku’s signature and DEA prescription authority. In fact, at MRC, Okechuku, Oti, and Iwuoha were referred to as “Doctor,” regardless of medical license.
Oti, Iwuoha, and at times, Okechuku, would do little to no physical examination and prescribe controlled substances, including hydrocodone, a Schedule III controlled substance at the time. Patient visits were short and they would normally leave with a 30-day prescription (120 pills) or more of hydrocodone, along with other prescriptions. Okechuku, Oti, and Iwuoha diagnosed the majority of the patients with back pain, regardless of their true condition. Hydrocodone was prescribed regardless of a patient’s need, or lack thereof.
Once the patients received the prescriptions at MRC, the coconspirator dealers would drive the groups of patients to various pharmacies to get the prescriptions filled. The dealers would also furnish the money to pay for the narcotics. Sometimes, the dealers did not need the patients to pick up the prescriptions as some pharmacies gave the hydrocodone directly to the dealers. After the prescriptions were filled, the patients gave the pills to the dealers, who then sold the pills on the street for a profit.
The FBI, Dallas Police Department and Mesquite Police Department investigated. Assistant U.S. Attorneys Kate Pfeifle and Russ Fusco, and Deputy Criminal Chief Assistant U.S. Attorney Gary Tromblay prosecuted.
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Pennsylvania Man Convicted in Tax Fraud SchemeRead the Press Release
A federal jury sitting in the Eastern District of Pennsylvania returned a guilty verdict today against an Aldan, Pennsylvania, man on charges related to a tax fraud scheme, announced the Department of Justice.
Jean Baptiste Alvarez, aka Alex, 43, was found guilty of conspiracy to defraud the United States with respect to false claims, aggravated identity theft and misuse of social security numbers. U.S. District Court Judge Michael Baylson scheduled a sentencing hearing for July 26.
Alvarez faces a statutory mandatory minimum sentence of at least two years in prison with a maximum possible sentence of 24 years in prison, up to three years of supervised release, a possible fine and a $500 special assessment.
According to evidence presented at trial, Alvarez unlawfully provided to Peterson Rene, charged elsewhere, the personal identifying information (PII) of hundreds of real persons. Specifically, Alvarez sold Rene patient information labeled “census sheets” that were created by and kept in the normal course of business, at the Kirkbride Center health care facility in Philadelphia, where the defendant worked. These “census sheets” list PII of patients, including names, social security numbers and dates of birth. From 2012 through 2015, Alvarez and Rene conspired with others to use the stolen identifying information on tax returns for the purpose of obtaining payment of false, fictitious and fraudulent tax refunds.
The case was investigated by IRS-Criminal Investigation, the FBI and the Office of Inspector General-Social Security Administration. It is being prosecuted by Assistant U.S. Attorney Terri A. Marinari and Trial Attorney Ann M. Cherry of the Justice Department’s Tax Division.
Additional information about the Tax Division’s enforcement efforts can be found on the division’s website.