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Friday 25 March 2016
Lexington Farm Pleads Guilty to Employing Illegal Aliens and Pays a Million Dollar FineRead the Press Release
Contact Person: Jim May (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that HW Group LLC, a Lexington County Farming Operation, has entered a guilty plea to a pattern and practice of employing illegal aliens, a violation of Title 8, United States Code § 1324a, and was sentenced to a one million dollar fine and 4 years of intensive supervision. Senior United States District Judge Joseph F. Anderson, Jr. of Columbia presided over the hearing.
Evidence presented at the hearing established that HW Group is one of several related entities that participate in major farming operations in Lexington County and is better known by a related entity, WP Rawl and Sons. An investigation found that the farm had a pattern and practice of employing illegal aliens in their agriculture business. This employment of illegal aliens was both directly by the farm and by the various subcontractors used. An analysis of company records showed that employees had documentation which was often outdated, counterfeit, or improper. Moreover, some of the subcontractors that were used by the farm had little or no documentation for the workers performing services on HW Group’s land. In total, the investigation found that the farm employed between 300-350 illegal aliens in its farming operations.
The Government and the corporate defendant entered into a plea agreement, whereby the corporation agreed to a one million dollar fine and four years of intensive supervision by the United States Probation Office and the Department of Homeland Security.
The United States Attorney Bill Nettles stated, "This plea and sentencing should serve as a notice to businesses that this District is focused on the demand side enforcement of immigration laws. The law applies to businesses as it does to the individuals.”
The case was investigated by agents of the Homeland Security Investigations. Assistant United States Attorneys Jim May and Jay Richardson of the Columbia office prosecuted the case.
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Lehigh County Man Indicted on Child Exploitation ChargesRead the Press Release
PHILADELPHIA - Michael Lees, a/k/a “Michael Lewis,” a/k/a “Michael Dontask,” 39, of Catasaqua, PA, was charged yesterday by indictment with the enticement of a minor, production of child pornography, attempted production of child pornography and possession of child pornography, announced United States Attorney Zane David Memeger.
According to the indictment, between October and December of 2015, Lees contacted, via Internet, a person that he believed was a 12-year old child and enticed that person to engage in sexual activity and to create a visual depiction of that activity. It is further alleged that Lees possessed a cell phone containing child pornography.
If convicted the defendant faces a mandatory minimum term of 15 years in prison up to life, a mandatory minimum of five years of supervised release, a $500 special assessment, and an additional $25,000 special assessment, and a possible fine.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by 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.
The case was investigated by the FBI and the Office of the Pennsylvania Attorney General. It is being prosecuted by Assistant United States Attorney Sherri A. Stephan.
An Indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Last Defendants in Heroin Trafficking Organization Plead GuiltyRead the Press Release
Memphis, TN – The last two defendants of a drug ring responsible for transporting heroin from Texas to Memphis for mass distribution have pleaded guilty. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the pleas today.
According to information presented in court, in November 2013, members of the Memphis Police Department Organized Crime Unit began investigating members of a drug trafficking organization who were selling large quantities of heroin in the Memphis and Shelby County area.
Abel Gamez, Sr. and Abel Gamez, Jr. were identified as two of the organization’s heroin sources of supply in Texas. The defendants reportedly had people transport heroin from Texas to Memphis via Greyhound.
In January 2015, Organized Crime Unit personnel set up random searches at the Memphis bus station. A narcotics-detection K-9 alerted on Liza Torress, who, along with her son, Arthur Olague, was a passenger on the bus. A search of Torress revealed 350 grams of heroin.
In September 2015, a federal grand jury returned a two-count superseding indictment against the aforementioned defendants, along with multiple others.
According to the indictment, between November 2013 and April 2015, Reginald Brewer aka "Blue," Clarence Carter, Cedric Caruthers aka "Jomo," Tremayne Jackson aka "Bookie," LaCedric Ruffin aka "Ced," and Anthony Wilbourn aka "Dale" conspired to possess with the intent to distribute less than 100 grams of heroin.
The indictment further alleges that Gamez, Sr., Gamez, Jr., Olague, Torres, and Larry Woodley aka "Coffee" conspired to possess with the intent to distribute 100 grams or
more of heroin. During the same time period, Carter and Woodley conspired to possess with the intent to distribute 500 grams or more of cocaine.
In December 2015, Carter, Wilbourn, Ruffin, Torress, Woodley, Olague, Brewer, and Caruthers all pleaded guilty to their charges in the indictment. In early March 2016, Gamez Sr. pleaded guilty to his charges.
On Wednesday, March 23, 2016, Gamez Jr. pleaded guilty to his charges in the indictment.
On Thursday, March 24, 2016, Jackson pleaded guilty to his charges in the indictment.
This case is being investigated by the Memphis Drug Enforcement Administration and the Memphis Police Department Organized Crime Unit.
Special Assistant U.S. Attorney Sam Stringfellow, and Assistant U.S. Attorneys Jerry Kitchen and Michelle Kimbril-Parks are prosecuting this case on the government’s behalf.
Last Defendants in Heroin Trafficking Organization Plead GuiltyRead the Press Release
Memphis, TN – The last two defendants of a drug ring responsible for transporting heroin from Texas to Memphis for mass distribution have pleaded guilty. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the pleas today.
According to information presented in court, in November 2013, members of the Memphis Police Department Organized Crime Unit began investigating members of a drug trafficking organization who were selling large quantities of heroin in the Memphis and Shelby County area.
Abel Gamez, Sr. and Abel Gamez, Jr. were identified as two of the organization’s heroin sources of supply in Texas. The defendants reportedly had people transport heroin from Texas to Memphis via Greyhound.
In January 2015, Organized Crime Unit personnel set up random searches at the Memphis bus station. A narcotics-detection K-9 alerted on Liza Torress, who, along with her son, Arthur Olague, was a passenger on the bus. A search of Torress revealed 350 grams of heroin.
In September 2015, a federal grand jury returned a two-count superseding indictment against the aforementioned defendants, along with multiple others.
According to the indictment, between November 2013 and April 2015, Reginald Brewer aka "Blue," Clarence Carter, Cedric Caruthers aka "Jomo," Tremayne Jackson aka "Bookie," LaCedric Ruffin aka "Ced," and Anthony Wilbourn aka "Dale" conspired to possess with the intent to distribute less than 100 grams of heroin.
The indictment further alleges that Gamez, Sr., Gamez, Jr., Olague, Torres, and Larry Woodley aka "Coffee" conspired to possess with the intent to distribute 100 grams or
more of heroin. During the same time period, Carter and Woodley conspired to possess with the intent to distribute 500 grams or more of cocaine.
In December 2015, Carter, Wilbourn, Ruffin, Torress, Woodley, Olague, Brewer, and Caruthers all pleaded guilty to their charges in the indictment. In early March 2016, Gamez Sr. pleaded guilty to his charges.
On Wednesday, March 23, 2016, Gamez Jr. pleaded guilty to his charges in the indictment.
On Thursday, March 24, 2016, Jackson pleaded guilty to his charges in the indictment.
This case is being investigated by the Memphis Drug Enforcement Administration and the Memphis Police Department Organized Crime Unit.
Special Assistant U.S. Attorney Sam Stringfellow, and Assistant U.S. Attorneys Jerry Kitchen and Michelle Kimbril-Parks are prosecuting this case on the government’s behalf.
Ketchikan Man sentenced to five years in prison for distribution of child pornographyRead the Press Release
Ketchikan, Alaska-U.S. Attorney Karen L. Loeffler announced today that, on March 24, 2016, a resident of Ketchikan was sentenced in federal court in Ketchikan for distribution of child pornography.
Don Arthur Henderson, 37, of Ketchikan, Alaska, was sentenced by U.S. District Chief Judge Timothy M. Burgess to serve five years in prison, to be followed by a 20 year term of supervised release, for a single count of distribution of sexually explicit images and videos of children. Many of the images were prepubescent children engaged in sexually explicit conduct. Henderson was also ordered to pay restitution of $5,000 to the victims of the offense.
According to Assistant U.S. Attorney Jack S. Schmidt, who prosecuted the case, Henderson, who had no criminal record, was identified in February 2015 by the FBI in Juneau as an individual who was distributing known images of child pornography to the internet using a peer to peer (P2P) program. Henderson had made available and distributed five known images of child pornography on the Internet using his P2P program. Further investigation revealed that Henderson had the five images of child pornography he made available on the Internet located on his personal computer for a total of 716 images and nine videos containing images of children engaged in sexually explicit conduct, including images depicting prepubescent children and sadistic and masochistic conduct.
In ordering Henderson’s sentence, Chief Judge Burgess noted the seriousness of the underlying offense of distributing child pornography and that Henderson’s actions “perpetuate the sexual exploitation of children.” Chief Judge Burgess also noted the need to protect the public, the need to deter the defendant and others, as well as, treating the defendant in the most effective manner as reasons for the sentence imposed in this case.
Ms. Loeffler commends the agents of the Federal Bureau of Investigation who conducted the investigation that led to the prosecution of Henderson.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood combines federal, state and local resources to better identify, 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.
Jicarilla Apache Woman Pleads Guilty to Federal Child Abuse ChargeRead the Press Release
ALBUQUERQUE – Fawn Lynnstar Vigil, 30, an enrolled member of the Jicarilla Apache Nation who resides in Dulce, N.M., pleaded guilty today in federal court in Albuquerque, N.M., to a child abuse charge.
Vigil was charged on Jan. 26, 2016, in a two-count indictment with (1) child abuse resulting in great bodily harm, and (2) child abuse by operating a motor vehicle recklessly on April 13, 2012, in Indian Country in Rio Arriba County, N.M.
During today’s proceedings, Vigil entered a guilty plea to Count two of the indictment charging her with child abuse. In her plea agreement, Vigil admitted that on April 13, 2012, she negligently operated a motor vehicle recklessly within the Jicarilla Apache Indian Reservation at an excessive speed, causing the vehicle to leave the roadway and roll-over. Vigil admitted that her actions endangered the life and health of a Jicarilla Apache child who was in the vehicle.
At sentencing, Vigil faces a maximum of three years in federal prison followed by up to one year of supervised release. A sentencing hearing has yet to be scheduled.
This case was investigated by the Jicarilla Apache Tribal Police Department and the New Mexico State Police. Assistant U.S. Attorney Joseph Michael Spindle is prosecuting the case.
Highest-Ranking Navy Official Sentenced to 46 Months in Prison for Accepting Bribes from Foreign Defense Contractor in Massive Bribery and Fraud SchemeRead the Press Release
For Further Information, Contact: Assistant U.S. Attorney Mark W. Pletcher (619) 546-9714
NEWS RELEASE SUMMARY – March 25, 2016
SAN DIEGO – U.S. Navy Captain Daniel Dusek, the highest-ranking official charged in the massive Navy bribery scandal, was sentenced in federal court today to 46 months in prison for giving classified information to foreign defense contractor Leonard Glenn Francis in exchange for prostitutes, luxury travel and other gifts.
In addition to imposing the prison term, U.S. District Judge Janis L. Sammartino ordered Dusek to pay a $70,000 fine and $30,000 in restitution to the Navy. He was ordered to report to the U.S. Bureau of Prisons on June 15.
Dusek, 49, pleaded guilty in January 2015 to a single count of conspiracy to commit bribery. Dusek admitted that he used his influence as Deputy Director of Operations for the 7th Fleet, headquartered in Yokosuka, Japan, and later as executive officer of the USS Essex and the commanding officer of the USS Bonhomme Richard, to benefit Francis and his company, Singapore-based Glenn Defense Marine Asia, which for decades provided port services to U.S. Navy ships. Dusek admitted that in return, Francis plied him with meals, alcohol, entertainment, gifts, dozens of nights and incidentals at luxury hotels and the services of prostitutes.
Underscoring his importance to the conspiracy, in an email to one of his employees, Francis wrote: “(Dusek) is a golden asset to drive the big decks (aircraft carriers) into our fat revenue GDMA ports.”
During the sentencing hearing, Judge Sammartino told Dusek: “It’s truly unimaginable to the court that someone in your position with the United States Navy would sell out based on what was provided to you – hotel rooms, entertainment and the services of prostitutes.” She noted that Dusek’s actions “potentially jeopardized national security.”
“Captain Dusek’s betrayal is the most distressing because the Navy placed so much trust, power and authority in his hands,” said U.S. Attorney Laura Duffy. “This is a fitting sentence for a man who was so valuable that his conspirators labeled him their ‘Golden Asset.’”
“As a Navy officer, Captain Dusek took an oath to bear true faith and allegiance to the United States. Instead, he chose self-interest, greed and prurience,” said Assistant Attorney General Leslie R. Caldwell. “And when he learned of the investigation, Captain Dusek deleted his email accounts in an attempt to shield his crimes from law enforcement. The Department of Justice is committed to holding public officials responsible when they betray the public trust.”
“This outcome again sends the message that corruption will be vigorously investigated and prosecuted,” said Director James B. Burch of the Department of Defense, Defense Criminal Investigative Service. “This is an unfortunate example of dishonorable Naval officers who recklessly risked the safety of our troops by trading classified information for cash, extravagant gifts and prostitutes. Cases such as these are not motivated by need or other difficult personal circumstances; they are the product of simple greed. This investigation should serve as a warning that those who compromise the integrity of the United States will face their day of reckoning. DCIS and our law enforcement partners will pursue these crimes relentlessly.”
“Captain Dusek put greed and personal pleasure above the safety of his shipmates, and, in doing so, violated his sworn oath as a naval officer,” said Naval Criminal Investigative Service Director Andrew Traver. “His sentence today attests to the seriousness of his crimes. NCIS, along with our partners at the Department of Justice, the Defense Criminal Investigative Service, and the Defense Contract Audit Agency have been steadfast in our commitment to fully investigate the actions of all those involved in the GDMA case, and will continue with the same determination as the investigation proceeds.”
Anita Bales, director, of Defense Contract Audit Agency, said, “DCAA is honored to be a partner with DCIS, NCIS, and the Department of Justice in this investigation. Our investigative support auditors did an outstanding job analyzing the evidence. I'm proud of their work and its impact on bringing justice to those who corruptly defraud the government.”
According to Dusek’s plea agreement, he hand-delivered Navy ship schedules to the GDMA office in Japan or emailed them directly to Francis or a GDMA employee on dozens of occasions, each time taking steps to avoid detection by law enforcement or U.S. Navy personnel.
Dusek was so helpful to GDMA that an employee gloated, Dusek is “an official GDMA card holder.” He was lavishly rewarded for his efforts. In one example cited in the plea agreement, GDMA paid for a hotel for Dusek and his family at the Marriott Waikiki in Hawaii on July 19, 2010. A few weeks later, on August 5, 2010, GDMA paid for a hotel room for Dusek at the Shangri-La in Makati, Philippines and while there, GDMA provided him with the services of a prostitute.
Soon after Dusek’s vacations in Hawaii and the Philippines, Francis asked Dusek to exercise his influence on GDMA’s behalf by steering the aircraft carrier USS Abraham Lincoln and its associated strike group to Port Klang, Malaysia – a port terminal owned by Francis. Dusek replied in a series of emails to GDMA in late August 2010 that he would make it happen. “Good discussion with N00 (Admiral) today and convince him that PKCC (Francis’ terminal) is the better choice,” Dusek wrote to Francis on August 21, 2010. Three days later, Dusek reported to Francis that he had “everyone in agreement that the next CSG (Carrier Strike Group) through the AOR (area of responsibility) will stop at PKCC. Dates will be 08-12 Oct.”
In fact, the USS Abraham Lincoln Carrier Strike Group did make that visit to Francis’ port on October 8-12, 2010, a port visit that cost the United States approximately $1.6 million.
On September 17, 2013, when Dusek learned that Francis and Navy personnel had been arrested, he deleted the contents of his email accounts in an effort to avoid detection by law enforcement.
To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Dusek, Lieutenant Commander Todd Malaki, Commander Michael Vannak Khem Misiewicz, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense civilian employee Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; and on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; the others await sentencing.
The ongoing investigation is being conducted by NCIS, DCIS and the Defense Contract Audit Agency. The case is being prosecuted by Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California and Trial Attorney Brian R. Young of the Criminal Division’s Fraud Section.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
DEFENDANT Case Number: 15-CR-131-JLS
Daniel Dusek Age: 49 San Diego, CA
SUMMARY OF CHARGES
Conspiracy to Commit Bribery, in violation of 18 U.S.C. § 371. Maximum penalty five years in prison, $250,000 fine or twice the gross pecuniary gain or loss from the offense, whichever is greater.
INVESTIGATING AGENCIES
Defense Criminal Investigative Service
Naval Criminal Investigative Service
Defense Contract Audit Agency
Highest-Ranking Navy Official Sentenced to 46 Months in Prison for Accepting Bribes from Foreign Defense Contractor in Massive Bribery and Fraud SchemeRead the Press Release
The highest-ranking official charged in a massive Navy bribery scandal was sentenced in federal court today to 46 months in prison for giving classified information to a foreign defense contractor in exchange for prostitutes, luxury travel and other gifts.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Laura E. Duffy of the Southern District of California, Director James B. Burch of the Department of Defense’s Defense Criminal Investigative Service (DCIS), Director Andrew Traver of the Naval Criminal Investigative Service (NCIS) and Director Anita Bales of Defense Contract Audit Agency (DCAA) made the announcement.
U.S. Navy Capt. Daniel Dusek was sentenced by U.S. District Judge Janis L. Sammartino of the Southern District of California, who also ordered Dusek to pay a $70,000 fine and $30,000 in restitution to the Navy. He was ordered to report to the U.S. Bureau of Prisons on June 15, 2016.
Dusek, 49, pleaded guilty in January 2015 to a single count of conspiracy to commit bribery. Dusek admitted that he used his influence as Deputy Director of Operations for the Seventh Fleet, headquartered in Yokosuka, Japan, and later as executive officer of the USS Essex and the commanding officer of the USS Bonhomme Richard, to benefit Leonard Glenn Francis and his company, Glenn Defense Marine Asia (GDMA). For decades, GDMA provided port services to U.S. Navy ships and in return, Francis plied Dusek with meals, alcohol, entertainment, gifts, dozens of nights and incidentals at luxury hotels and the services of prostitutes, Dusek admitted.
Underscoring his importance to the conspiracy, in an email to one of his employees, Francis wrote: “(Dusek) is a golden asset to drive the big decks (aircraft carriers) into our fat revenue GDMA ports.”
“As a Navy officer, Captain Dusek took an oath to bear true faith and allegiance to the United States,” said Assistant Attorney General Caldwell. “Instead, he chose self-interest, greed and prurience. And when he learned of the investigation, Captain Dusek deleted his email accounts in an attempt to shield his crimes from law enforcement. The Department of Justice is committed to holding public officials responsible when they betray the public trust.”
“Captain Dusek’s betrayal is the most distressing because the Navy placed so much trust, power and authority in his hands,” said U.S. Attorney Duffy. “This is a fitting sentence for a man who was so valuable that his conspirators labeled him their ‘Golden Asset.’”
“This outcome again sends the message that corruption will be vigorously investigated and prosecuted,” said Director Burch. “This is an unfortunate example of dishonorable naval officers who recklessly risked the safety of our troops by trading classified information for cash, extravagant gifts and prostitutes. Cases such as these are not motivated by need or other difficult personal circumstances; they are the product of simple greed. This investigation should serve as a warning that those who compromise the integrity of the United States will face their day of reckoning. DCIS and our law enforcement partners will pursue these crimes relentlessly.”
“Captain Dusek put greed and personal pleasure above the safety of his shipmates and, in doing so, violated his sworn oath as a naval officer,” said Director Traver. “His sentence today attests to the seriousness of his crimes. NCIS, along with our partners at the Department of Justice, the Defense Criminal Investigative Service and the Defense Contract Audit Agency have been steadfast in our commitment to fully investigate the actions of all those involved in the GDMA case, and will continue with the same determination as the investigation continues.”
“DCAA is honored to be a partner with DCIS, NCIS and the Department of Justice in this investigation,” said Director Bales. “Our investigative support auditors did an outstanding job analyzing the evidence. I’m proud of their work and its impact on bringing justice to those who corruptly defraud the government.”
According to Dusek’s plea agreement, he hand-delivered Navy ship schedules to the GDMA office in Japan or emailed them directly to Francis or a GDMA employee on dozens of occasions, each time taking steps to avoid detection by law enforcement or U.S. Navy personnel.
Dusek was lavishly rewarded for his efforts to help GDMA. For example, according to the plea agreement, GDMA paid for a hotel for Dusek and his family at the Marriott Waikiki in Hawaii on July 19, 2010, and on Aug. 5, 2010, GDMA paid for a hotel room for Dusek at the Shangri-La in Makati, Philippines, and provided him with the services of a prostitute.
Soon after, Francis asked Dusek to exercise his influence on GDMA’s behalf by steering the aircraft carrier USS Abraham Lincoln and its associated strike group to Port Klang, Malaysia (PKCC) – a port terminal owned by Francis. Dusek replied in a series of emails to GDMA in late August 2010 that he would make it happen. “Good discussion with N00 (Admiral) today and convince him that PKCC is the better choice,” Dusek wrote to Francis on Aug. 21, 2010. Three days later, Dusek reported to Francis that he had “everyone in agreement that the next CSG (Carrier Strike Group) through the AOR (area of responsibility) will stop at PKCC. Dates will be 08-12 Oct.” The port visit cost the United States approximately $1.6 million.
On Sept. 17, 2013, when Dusek learned that Francis and Navy personnel had been arrested, he deleted the contents of his email accounts in an effort to avoid detection by law enforcement.
To date, 10 individuals have been charged in connection with this scheme; of those, nine have pleaded guilty, including Dusek, Lieutenant Commander Todd Malaki, Commander Michael Vannak Khem Misiewicz, NCIS Special Agent John Beliveau, Commander Jose Luis Sanchez and U.S. Navy Petty Officer First Class Dan Layug. Former Department of Defense civilian employee Paul Simpkins awaits trial. On Jan. 21, 2016, Layug was sentenced to 27 months in prison and a $15,000 fine; on Jan. 29, 2016, Malaki was sentenced to 40 months in prison and to pay $15,000 in restitution to the Navy and a $15,000 fine; and on March 18, 2016, Alex Wisidagama, a former GDMA employee, was sentenced to 63 months and $34.8 million in restitution to the Navy; the others await sentencing.
The ongoing investigation is being conducted by NCIS, DCIS and DCAA. The case is being prosecuted by Assistant Chief Brian R. Young of the Criminal Division’s Fraud Section and Assistant U.S. Attorney Mark W. Pletcher of the Southern District of California.
Those with information relating to fraud, corruption or waste in government contracting should contact the NCIS anonymous tip line at www.ncis.navy.mil or the DOD Hotline at www.dodig.mil/hotline, or call (800) 424-9098.
Heroin Trafficker, Raymond Valentino Bowser, SentencedRead the Press Release
MARQUETTE, MICHIGAN —U.S. District Judge Robert Holmes Bell sentenced Raymond Valentino Bowser, age 31, of Chicago, IL, to 60 months in federal prison and 12 years of supervised release, U.S. Attorney Patrick Miles announced today. Sentencing followed Bowser’s guilty plea, entered last December, to distribution of heroin within 1,000 feet of a playground.
Bowser was the subject of an investigation conducted by the Gogebic-Iron Area Narcotics Team (GIANT). GIANT made an undercover purchase of heroin from Bowser in Bessemer, Michigan on February 20, 2015. The next day, Bowser was arrested on an unrelated domestic violence charge and taken into custody. During the arrest, Bowser provided a false name and a fake Illinois driver’s license bearing his photo. He was released on bond and then disappeared.
GIANT learned Bowser’s true identity and that he had a 2008 federal drug conviction in Minnesota. In addition, they learned that Bowser was still on federal supervised release and that he was not supposed to leave Minnesota.
GIANT next encountered Bowser on April 17, 2015, when they again bought heroin from him in Bessemer. After the purchase, GIANT executed a search warrant at Bowser’s residence in Bessemer and found a part of a brick of heroin that weighed about 35 grams. According to GIANT, this piece of heroin could be broken up into 350 dosage units or "points." Bowser was arrested on State of Michigan charges, and then turned over to the U.S. Drug Enforcement Administration (DEA) for federal prosecution.
Rather than proceeding to the Federal Bureau of Prisons to commence his sentence, Bowser is being transported to Douglas County, Wisconsin, to face heroin-related charges there, and to the U.S. District Court in Minnesota to answer for violations of the terms of supervised release that were imposed on him as a result of his 2008 federal drug conviction.
This case was prosecuted by Assistant U.S. Attorney Maarten Vermaat.
END
Georgia Resident Pleads Guilty to Laundering Proceeds from a Stolen Identity Tax Refund Fraud SchemeRead the Press Release
An Austell, Georgia, resident pleaded guilty today to one count of money laundering, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney John A. Horn of the Northern District of Georgia.
According to court documents, Rapheal Atebefia, his co-defendants and others obtained the means of identification of actual individuals, including their names and social security numbers and used this information to access the Internal Revenue Service’s (IRS) “Get Transcript” database. Get Transcript is an IRS web application program that enabled individuals to access their tax filing information. The stolen names and the information obtained from Get Transcript were used to file false income tax returns.
Atebefia and his co-conspirators obtained prepaid debit cards from stores located in multiple states and registered the cards in the names of the stolen identities. These debit cards were used to receive the income tax refunds requested on the false tax returns. To conceal this fraudulent scheme, the prepaid debit cards were then used to purchase money orders. Atebefia deposited the money orders into his bank accounts and then structured cash withdrawals of the proceeds in order to prevent the bank from filing Currency Transaction Reports.
Atebefia faces a statutory maximum sentence of 20 years in prison. A sentencing date has not been set. He also faces monetary penalties, restitution and forfeiture.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Horn commended special agents of IRS-Criminal Investigation and the U.S. Postal Service, who investigated the case and Trial Attorneys Michael C. Boteler and Charles M. Edgar Jr. of the Tax Division and Assistant U.S. Attorney Brian Pearce of the Northern District of Georgia, who are prosecuting this case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Georgia Doctor Pleads Guilty to False Billing for Surgical Monitoring Performed by Medical AssistantRead the Press Release
ATLANTA – Robert E. Windsor, an Atlanta-area physician, has pleaded guilty to health care fraud for filing claims for surgical monitoring services he did not perform.
“Windsor put patients at risk by passing the surgical monitoring work he was paid to perform to an unauthorized medical assistant and then lied about it,” said U.S. Attorney John Horn. “This doctor’s scam left patients without a qualified physician monitoring their neurological health during surgery and cheated other healthcare providers out of over $1 million.”
“The conduct of Dr. Windsor was not only criminal, it was reckless and irresponsible. While Dr. Winsor's repeated and extensive practice of falsely billing for services that he himself did not render is at the heart of these federal charges, the potential risk and harm to those many patients who were not getting the required services should not be overlooked. This guilty plea will hold Dr. Windsor accountable for his greed based criminal conduct,” said J. Britt Johnson, FBI Special Agent in Charge,
“The callous disregard for patient safety, coupled with the arrogance of billing for services performed by an untrained employee, is shocking,” said Derrick Jackson, Special Agent in Charge for the HHS Office of Inspector General. “Together with our law enforcement partners, we will seek justice for Medicare beneficiaries and the program they depend upon and trust when they need health care services.”
“Health care fraud is a serious problem that undermines the ability of the Department of Defense to focus on warfighting and defense by diverting precious taxpayer dollars from our national security efforts. DCIS will relentlessly investigate those who defraud DoD’s critical programs, bring violators to justice, and recover funds wherever possible,” said John F. Khin, Special Agent in Charge of the Southeast Field Office-Defense Criminal Investigative Service.
According to United States Attorney Horn, the charges and other information presented in court: Robert E. Windsor, a licensed Georgia physician, entered into a contract with American Neuromonitoring Associates, P.C. (ANA), a Maryland corporation, to provide a medical service called intra-operative monitoring. In this medical procedure, a physician monitors a patient’s nerve and spinal cord activity during surgery to reduce potential adverse effects to the patient.
The contract stated that Windsor would provide real-time monitoring services for patients in surgery via an online platform with technologists in the operating room. Windsor was responsible for providing a final monitoring report at the conclusion of each surgery, and ANA and its sister company would thereafter bill patients and health care benefit programs, including private health insurance companies, for the monitoring. Windsor was paid a fee for each surgery monitored.
Between at least January 2010 through July 2013, Windsor instead assigned the monitoring to a medical assistant who impersonated Windsor by using Windsor’s log-in credentials in the online platform. The medical assistant was not a doctor and was not permitted to perform the monitoring under the contract with ANA. Windsor submitted final monitoring reports falsely stating that he had conducted the monitoring, which ANA and its sister company relied upon in billing health care benefit programs for his services. On several occasions, Windsor billed ANA for monitoring services he purportedly performed when he was actually traveling on an international flight.
In total, after collecting reimbursements from insurers, ANA paid Windsor over $1.1 million for monitoring services he did not perform during this time period. Investigators uncovered Windsor’s fraud through analysis of Medicare billing data and complaints to the HHS-OIG Hotline at 800-HHS-TIPS.
Robert E. Windsor, 54, of Cumming, Georgia, pleaded guilty before U.S. District Court Judge Amy Totenberg. Sentencing for Windsor is scheduled for June 3, 2016 at 10:30 a.m.
This case is being investigated by the Federal Bureau of Investigation; the Department of Defense, Defense Criminal Investigative Service; and the Department of Health and Human Services, Office of the Inspector General.
Assistant United States Attorney Nathan P. Kitchens is prosecuting the case. Former Assistant United States Attorney Jamie L. Mickelson prosecuted the case prior to the plea.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the home page for the U.S. Attorney’s Office for the Northern District of Georgia Atlanta Division is http://www.justice.gov/usao/gan/.
Former Tallassee, Alabama, Assistant Police Chief Sentenced for Beating Suspect During Interrogation, False Statements to the FBI and Selling DrugsRead the Press Release
The Justice Department announced today that former Tallassee, Alabama, Assistant Police Chief, Chris Miles, 41, was sentenced to 41 months in prison for depriving a suspect of his federally protected rights by beating the suspect with a phone book-sized packet of paper during an interrogation and then lying about the incident to an FBI agent investigating the matter. Miles was also sentenced for selling marijuana that he stole from the police evidence room.
Miles’ pleaded guilty on Nov. 17, 2015, to one count of deprivation of civil rights, two counts of false statements and one count of possession with intent to distribute. He was sentenced by U.S. District Judge Myron H. Thompson of the Middle District of Alabama.
According to admissions made during his plea hearing, in April 2013, while he was on duty as assistant police chief, Miles beat a prisoner who was serving a sentence at Tallassee Jail while Miles was interrogating that prisoner about uncharged crimes the prisoner was suspected of having committed. During the questioning, Miles grabbed a thick packet of copy paper and used it to strike the victim multiple times across the victim’s face and head. Miles also repeatedly slapped the victim across the face and head with his hand. His abuse caused the victim to suffer bruising and physical pain. Miles also admitted that earlier in 2013 he stole approximately 16 pounds of marijuana from the police evidence room and later sold it to a known drug dealer.
“Law enforcement leaders serve as role models for their fellow officers, and at all times they must act with integrity, fairness and professionalism,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “Justice requires even-handed treatment for all, and without exception, we will aggressively prosecute any officer who beats an inmate, breaks the law and lies to federal investigators.”
“Miles was a maverick, working outside the law,” said U.S. Attorney George L. Beck Jr. of the Middle District of Alabama. “While we expect interrogations to be thorough, an officer cannot turn an investigation into a punishment. Fortunately, the overwhelming majority of our law enforcement official’s act reasonably and within the bounds of the Constitution.”
This case was investigated by the Auburn Resident Agency of the FBI’s Mobile Field Office, with the assistance of Alabama’s State Bureau of Investigation. The case was prosecuted by Assistant U.S. Attorney Jerusha T. Adams for the Middle District of Alabama and Trial Attorney Gabriel Davis of the Civil Rights Division.
Former Secretary of Kentucky’s Personnel Cabinet Charged with Accepting KickbacksRead the Press Release
LEXINGTON - Timothy M. Longmeyer, the former Secretary of the Kentucky Personnel Cabinet, solicited and accepted over $200,000 in kickbacks during his tenure, according to a criminal complaint unsealed in federal court today.
An affidavit filed with the complaint alleges that Longmeyer accepted kickbacks from a private consulting company, in exchange for his help in securing multi-million dollar contracts for the consultant, which allowed the consultant to work with the insurance companies who provide healthcare coverage to everyone employed by the state.
As Secretary of the Personnel Cabinet, Longmeyer was responsible for overseeing the Kentucky Employees’ Health Plan (“KEHP”). The KEHP contracted with Humana, Inc. (“Humana”) and Anthem Blue Cross Blue Shield (“Anthem”) to provide healthcare coverage under the KEHP.
Longmeyer used his position to persuade Humana and Anthem to hire the private consultant for services, such as focus groups and telephone surveys. In return, Longmeyer accepted recurring payments from the consultant, including cash and straw contributions to certain political campaigns. The consultant made these payments with the proceeds from contracts with Humana and Anthem.
Longmeyer resigned from the Kentucky Personnel Cabinet on September 30, 2015. During the year leading up to his resignation, Longmeyer solicited approximately $212,500 in kickbacks from the consultant, according to the complaint. Longmeyer received approximately $203,500 in cash and straw campaign contributions.
Kerry B. Harvey, United States Attorney for the Eastern District of Kentucky, and Howard Marshall, Special Agent in Charge, Federal Bureau of Investigation, jointly made the announcement today after the complaint was filed.
Longmeyer is scheduled to appear in court on April 20, at 1:30 p.m. He will face up to 10 of years in prison and a maximum fine of $250,000. However, any sentence following a conviction would be imposed by the Court after consideration of the U.S. Sentencing Guidelines and the federal statutes.
Any criminal complaint is an accusation only. A defendant is presumed innocent and is entitled to a fair trial at which government must prove guilt beyond a reasonable doubt.
Former New Canaan Resident Admits Defrauding InvestorsRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, today announced that JOHN B. JEFFREY, also known as TUCKER JEFFREY, 48, formerly of New Canaan, Conn., and currently a resident of Denver, Colo., waived his right to indictment and pleaded guilty yesterday before U.S. District Judge Victor A. Bolden in Bridgeport to one count of wire fraud stemming from a scheme to defraud investors of more than $1.3 million.
According to court documents and statements made in court, JEFFREY offered individuals the opportunity to invest in Anchor Shipping and Trading, and Southern Cross Shipping, representing to victims that the companies were organized in the Marshall Islands, were engaged in the cargo shipping business, and had long-term contracts that would support a profitable international shipping business. Instead of using invested funds as he had promised, JEFFREY used the vast majority of the money for his personal expenses, including paying for the mortgage on his New Canaan home, tuition at private schools, country club dues, and home renovation and landscaping costs.
As part of the scheme, JEFFREY created bogus documents that represented that certain well-known executives in the international shipping business were involved with the companies when, in fact, those executives had no such involvement. He also e-mailed and telephoned his victims falsely representing that the companies were profitable, that the victims would soon be receiving distributions from their investments, and to reassure victims when payments were delayed.
JEFFREY faces a maximum term of imprisonment of 20 years and a fine of up to approximately $2.6 million. A sentencing date is not scheduled.
This matter has been investigated by the Federal Bureau of Investigation and is being prosecuted by Assistant U.S. Attorney Susan L. Wines.
Former NIH Employee Sentenced to Prison for Using Her Government Credit Card for Unauthorized PurchasesRead the Press Release
Greenbelt, Maryland – U.S. District Judge Theodore D. Chuang sentenced Francesca Maria Daniele, age 49, of LaPlata, Maryland, today to 21 months in prison followed by three years of supervised release for wire fraud in connection with the misuse of her government credit card. Judge Chuang also ordered Daniele to forfeit and pay restitution of $22,338.67, the amount of loss resulting from her conduct.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division; and Elton Malone, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of the Inspector General (HHS-OIG), Special Investigations Branch.
In July 2014, Daniele worked at the National Institutes of Health (NIH), purchasing equipment from vendors and administering contracts on behalf of NIH. According to her plea agreement, from July 12 to 28, 2014, Daniele used her government credit card to fraudulently make approximately $21,830.19 of personal purchases at retail stores. She used her cell phone to call the credit card’s customer service center to approve those purchases. To conceal the scheme, Daniele falsely reported that her credit card had been lost.
Additionally, on October 15, 2014, Daniele opened a credit card account in the name of her minor child. She used the credit card to buy a laptop computer, video game console, a ring and other items, all of which were shipped to a hotel room she rented under an assumed name. Daniele did not pay for several of the items, resulting in a loss to the credit card company of approximately $508.48.
United States Attorney Rod J. Rosenstein praised the HHS-OIG for its work in the investigation, and thanked Assistant United States Attorney Thomas P. Windom and Trial Attorney Justin D. Weitz of the Justice Department’s Public Integrity Section, who prosecuted the case.
Former Hedge Fund Manager Sentenced for Defrauding Investors and Obstructing the SECRead the Press Release
ATLANTA – Stanley J. Kowalewski has been sentenced to 18 years in federal prison for defrauding the investors in his former hedge funds and obstructing the U.S. Securities and Exchange Commission’s (SEC) investigation into his activities.
“Investors trusted Kowalewski to invest their money as promised,” said U.S. Attorney John A. Horn. “Instead, he stole their hard-earned savings and repeatedly lied to them and the SEC about his investments and self-dealing. Incredibly, while on bond awaiting trial in the case, Kowalewski continued to defraud investors based on false promises relating to a new investment business that turned out to be just another scam.”
“While sentencing Mr. Kowalewski to federal prison does not make his many investor turned victims fiscally whole again, denying him his freedom and the opportunity to enjoy their money does have value. It is unfortunate, however, that, in the aftermath of the high profile Madoff case and others like it, we are still plagued with large scale investment fraud schemes such as this. The FBI will continue to work with its many partners, to include the SEC, in identifying, investigating, and presenting for prosecution those individuals that would engage in greed based criminal schemes that defraud so many people,” said J. Britt Johnson, Special Agent in Charge, FBI Atlanta Field Office.
“This criminal action demonstrates the U.S. Department of Labor's resolve to vigorously enforce the law to ensure that those who defraud employee benefit plans are brought to justice. This case also exemplifies our commitment to protect employee benefits in coordination with fellow federal agencies,” said Isabel Colon, Regional Director of the Employee Benefits Security Administration’s Atlanta Regional Office.
According to U.S. Attorney Horn, the charges and other information presented in court: Kowalewski was the sole owner and Chief Executive Officer of SJK Investment Management, LLC, in Greensboro, North Carolina. Beginning in 2009, Kowalewski solicited investment money from pension funds, school endowments, hospitals, non-profit foundations, and other investors which he placed in two SJK “hedge fund of funds,” an onshore fund and an offshore fund called the Absolute Return Funds. Almost immediately after receiving the first investor money, Kowalewski began diverting the proceeds to pay for personal and business overhead expenses.
In December 2009, Kowalewski formed a new SJK fund called the Special Opportunities Fund, which he did not disclose to investors. He diverted over $16 million from the Absolute Return Funds to the Special Opportunities Fund without disclosing the transfers to investors. After he secretly transferred the funds, Kowalewski diverted millions from the Special Opportunities Fund to himself through various self-dealing transactions, including having the Special Opportunities Fund buy three homes that Kowalewski owned and in which his family, his parents, and his brother-in-law’s family lived. Kowalewski also bought a multi-million-dollar beach house in Pawleys Island, South Carolina, and directed that the Special Opportunities Fund pay him $4 million as a fee to which he was not entitled. Kowalewski created and altered documents in an effort to make these transactions appear legitimate.
Also as part of the scheme, Kowalewski overvalued the assets held by the Special Opportunities Fund and used those fraudulent valuations to calculate the returns for investors in the Absolute Return Funds. As a result, the monthly statements distributed to SJK investors showed fraudulently inflated returns. Investors lost over $11 million as a result of Kowalewski’s fraudulent scheme.
On March 30, 2010, the SEC initiated a proceeding to determine whether there had been violations of the federal securities laws in connection with SJK. As part of its investigation, the SEC subpoenaed Kowalewski to testify under oath. During his sworn testimony, Kowalewski testified that, after the Special Opportunities Fund had purchased his three homes, the Fund had leased the properties to him and his relatives, each for a yearly rental payment. He testified further that Michael J. Fulcher, the Chief Financial Officer of SJK, had drafted, and Kowalewski had signed, the leases at or near the time of the homes’ sales. In truth, however, Kowalewski and his relatives had never leased the homes back from the Special Opportunities Fund. Prior to Kowalewski’s sworn testimony, Kowalewski and Fulcher conspired to obstruct the SEC proceeding by creating the leases and backdating them, in an effort to document the claimed lease relationships and to conceal Kowalewski’s self-dealing transactions. Kowalewski provided the fraudulent leases to the SEC as part of the investigation and then testified falsely about them. Kowalewski further lied to the SEC in his sworn testimony when he testified that he had disclosed the Special Opportunities Fund to investors and attorneys and other professionals had approved of his self-dealing transactions.
While on bond awaiting trial in this case, Kowalewski defrauded investors in another company he controlled named Global Remediation Solutions. He solicited money from investors based on false pretenses and then misrepresented to them how he spent the money. As before, he diverted the investors’ money to his own personal use. Kowalewski was living in Pawleys Island at the time. After Kowalewski’s new fraud came to light, his bond was revoked. Kowalewski has been in custody based on that revocation since September 25, 2015.
Stanley J. Kowalewski, 44, of Pawleys Island, South Carolina, was sentenced by U.S. District Judge Richard W. Story to 18 years in prison, with credit for the time served since September 25, 2015, to be followed by three years of supervised release, and ordered to pay restitution in the amount of $9,436,236.23. Kowalewski was convicted on 22 counts of wire fraud, one count of conspiracy, and one count of obstructing the SEC proceeding in November 2015 after a jury trial.
Michael J. Fulcher, 59, of Greensboro, North Carolina, has pleaded guilty to one count of conspiring with Kowalewski to obstruct the SEC proceeding. His sentencing date has not yet been scheduled.
This case was investigated by Special Agents of the Federal Bureau of Investigation, Investigators with the Atlanta Regional Office of the U.S. Department of Labor’s Employee Benefits Security Administration (EBSA), and Special Agents of the Atlanta Regional Office of the U.S. Department of Labor’s Office of the Inspector General. The Atlanta Division Office of the U.S. Securities and Exchange Commission previously brought a civil action against Kowalewski. In that case, Kowalewski was ordered to pay over $16 million in disgorgement and civil penalties.
Assistant United States Attorneys Stephen H. McClain and J. Russell Phillips prosecuted the case.
For further information please contact the U.S. Attorney’s Public Affairs Office at [email protected] or (404) 581-6016. The Internet address for the U.S. Attorney’s Office for the Northern District of Georgia is http://www.justice.gov/usao-ndga.
Former D.C. Government Employee Pleads Guilty to Accepting Bribes in Scheme Involving PermitsRead the Press Release
WASHINGTON – Lucretia R. Barksdale, a former employee of the District of Columbia Department of Consumer and Regulatory Affairs (DCRA), pled guilty today to a federal bribery charge stemming from a scheme in which she accepted cash in return for facilitating the issuance of construction permits, announced U.S. Attorney Channing D. Phillips, Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, and Daniel W. Lucas, Inspector General for the District of Columbia.
Barksdale, 51, of Oxon Hill, Md., pled guilty in the U.S. District Court for the District of Columbia to a charge of receipt of a bribe by a public official. The charge carries a statutory maximum of 15 years in prison and potential financial penalties. Under federal sentencing guidelines, Barksdale faces a likely range of 12 to 18 months in prison and possible financial penalties. She is to be sentenced July 13, 2016 by the Honorable Amit P. Mehta.
According to the government’s evidence, Barksdale worked from July 2001 until June 2012 as a contact representative in DCRA’s Business License Department. She was responsible for reviewing and processing applications for various permits. In two meetings at her workstation in April and May of 2012, Barksdale accepted a total of $900 in cash from a person who was actually participating in an undercover FBI investigation. In exchange for this money, she issued two air conditioning permits and one electrical permit. In processing these permits, she did not require the person to take a number and wait in line at DCRA, which is the practice for all customers. She also falsified the requirement calling for the signature of a certified licensed tradesman who would oversee the construction. Instead, she inserted the name of a master licensed tradesman who she knew was not involved in the construction work.
In announcing the plea, U.S. Attorney Phillips, Assistant Director in Charge Abbate, and Inspector General Lucas commended the work of those who investigated the case from the FBI’s Washington Field Office and the District of Columbia Office of the Inspector General. They also expressed appreciation for the efforts of those who worked on the case from the U.S. Attorney’s Office, including Paralegal Specialist Kristy Penny and Assistant U.S. Attorneys Lionel André and Michelle N. Bradford, who are prosecuting the case.
Ex-Employee Pleads Guilty to Conspiring to Defrauding New York Power AuthorityRead the Press Release
A former senior investigator of the New York Power Authority (NYPA) pleaded guilty today to charges of conspiring to defraud NYPA and for filing a false 2010 tax return to hide substantial income from the government, the Department of Justice, the Internal Revenue Service and the New York State Inspector General announced.
Between 2009 and 2012, Stephen Sheridan, of Valley Cottage, New York, conspired to defraud NYPA in connection with a $3 million landscaping and maintenance contract. Sheridan helped the owner of the landscaping company skim money that should have gone to the employees who did the work, and fraudulently receive reimbursement from NYPA for fake, “no show” employees. As a result, Sheridan and his co-conspirator received money that was supposed to go to the working employees. In connection with the scheme, Sheridan also filed a false tax return for 2010, according to the two-count felony charge filed in U.S. District Court of the Southern District of New York.
“The defendant schemed to keep money from the NYPA contract that should have gone to the employees who actually did the work,” said Assistant Attorney General Bill Baer of the Justice Department’s Antitrust Division. “And he doubled down on this crime by hiding that extra income from the IRS. The division will continue to work with our partners at the FBI, IRS and New York Inspector General to hold accountable individuals who corrupt the public procurement process.”
“Government employees have access to money and influence the general public doesn’t,” said Assistant Director in Charge Diego Rodriguez of the FBI’s New York Field Office. “The belief that no one is watching can lead to greed and corruption. This case should prove the FBI and our law enforcement partners won’t stop weeding out those in power who try gaming the system.”
“Mr. Sheridan, for his own personal benefit, not only took advantage of the NYPA, but of the employees who were contracted to do work for it and law abiding taxpayers,” said Special Agent in Charge Shantelle P. Kitchen of the IRS Criminal Investigation New York Field Office. “He is now held accountable for the money he diverted and kept for his own use. IRS Criminal Investigation remains committed to ensuring that everyone pays their fair share of taxes.”
“This former employee used his insider knowledge to corrupt the State contracting process, steal from taxpayers and undercut hard-working employees trying to make an honest, living wage,” said New York State Inspector General Catherine Leahy Scott. “I will continue dedicating the resources of my office and working with local and federal law enforcement partners to fight waste, fraud and abuse in New York and bring to justice anyone who defrauds the state and takes advantage of the labor force.”
Sheridan’s fraud conspiracy charge carries a maximum penalty of 20 years in prison; his tax charge carries a maximum penalty of three years in prison. Each charge carries a maximum fine of $250,000, which may be increased to twice the gain derived from the crime or twice the loss suffered by the victims of the crime, if either of those amounts is greater than the statutory maximum fine. Sheridan will also be ordered to pay restitution to NYPA.
The charges against Sheridan arose from an investigation initiated by the New York State Inspector General and are part of an ongoing joint federal and state investigation of bid rigging, fraud and tax-related offenses in the award of contracts at NYPA’s facility in White Plains, New York. This is the third charge to result from the investigation. In June 2015, Thomas Delaney pleaded guilty to conspiring to defraud NYPA and to a tax violation, and in December 2015, Peter Shine pleaded guilty to a tax violation. This ongoing investigation is being conducted by the Antitrust Division’s New York Office with the assistance of the FBI, the IRS Criminal Investigation and the New York State Office of the Inspector General. NYPA is cooperating with the investigation. Anyone with information on bid rigging or other anticompetitive conducted related to the award or performance of municipal and state contracts should contact the Antitrust Division’s Citizen Complaint Center at 888-647-3258 or visit http://www.justice.gov/atr/contact/newcase.html.
Defendant Sentenced to over Five Years in Prison for Fraudulently Obtaining Scientific EquipmentRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Terrence Mullen, age 41, of Boonton, New Jersey, today to 63 months in prison followed by three years of supervised release for interstate transportation of property taken by fraud. Judge Grimm also entered an order that Mullen forfeit and pay restitution of $414,682.89.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein and Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office.
According to his plea agreement, in September and October 2013, using a fraudulent internet domain name, Mullen emailed a company that specialized in producing and selling scientific devices about the purchase of two mass spectrometers and related equipment for over $400,000. In order to obtain credit to make the purchase, in September 2013, Mullen submitted false information to the company on the credit application, including a false name, references and banking information.
In order to conceal the fraud scheme from New Jersey law enforcement, in October 2013, Mullen rented business space in Beltsville, Maryland and directed the company to deliver the mass spectrometers and equipment to the Beltsville location. After the company shipped the items from Texas to Beltsville, Mullen sold the spectrometers to a company located in New Jersey. Mullen used the sales proceeds to pay for personal expenses and a family member’s educational expenses.
The amount of the loss to the company as a result of the scheme was at least $414,682.89.
United States Attorney Rod J. Rosenstein commended the FBI for its work in the investigation and thanked Assistant U.S. Attorneys Thomas P. Windom and Michael T. Packard, who prosecuted the case.
Cuban National Sentenced for Bank FraudRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051
BUFFALO, N.Y. – U.S. Attorney William J. Hochul, Jr. announced today that Claudia Diaz Diaz, 22, a Cuban National, who was convicted of conspiracy to commit bank fraud, was sentenced to time served and three years probation by U.S. District Court Judge Richard J. Arcara, to conspiracy to commit bank fraud.Assistant U.S. Attorney Russell T. Ippolito, Jr., who handled the case, stated that Diaz fraudulently obtained the credit/debit card numbers of actual people and then encoded counterfeit cards with the information illegally obtained. The defendant then used the counterfeit cards to purchase merchandise at retail stores in the area, including a Tops Market in Amherst, NY and a CVS Pharmacy in Buffalo, NY. Diaz obtained the information associated with approximately 79 credit and debit card accounts at various financial institutions.
Five other Cuban Nationals, Eduardo Quinones Hernandez, Yasser Carrillo Chartrand, Yaily Santurio Milian, Misael Toledo Rios, and Jose Valdivia Quinones are also charged in this scheme to defraud involving counterfeit debit cards. Hernandez, Quinones, Milian and Rios have been convicted, charges are pending against Chartrand. 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.
Today’s sentencing is the result of an investigation by Immigration and Customs Enforcement, Homeland Security Investigations, under the direction of Special Agent in Charge James C. Spero, the U.S. Secret Service, under the direction of Special Agent in Charge C. Todd Laster, and the New York State Police, under the direction of Major Michael Cerretto.
Convicted Cross-Burner Indicted on Federal Gun ChargesRead the Press Release
Montgomery, Alabama – Steven Joshua Dinkle, 30, a former Exalted Cyclops of the Ozark, Alabama chapter of the International Keystone Knights of the Ku Klux Klan (KKK), was arraigned in federal court on March 22, 2016 on charges of being a felon in possession of a firearm, announced George L. Beck, Jr., United States Attorney for the Middle District of Alabama. The arraignment follows an indictment by a federal grand jury earlier this month.
Dinkle was previously convicted in May of 2014 of several federal felonies surrounding the burning of a cross in a predominantly black neighborhood. Dinkle served his sentence for the convictions and was released in May of 2015. While on supervised release from May to August 2015, Dinkle was cited for multiple violations of the terms of his probation, including possession of a firearm, and his probation was revoked. He is still in Bureau of Prison custody following the probation revocation.
This past Tuesday, Dinkle entered a plea of not guilty to allegations that he possessed a firearm while he was on supervised release following the 2014 felony convictions. Federal law makes it a crime for anyone who has been convicted of a felony offense to possess a firearm, unless they have had their gun rights restored.
An indictment merely alleges that a crime has been committed and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. Dinkle faces a possible sentence of up to 10 years imprisonment if convicted.
This case is being investigated by the Bureau of Alcohol, Tobacco and Firearms, the United States Probation Office, and the Dale County Sheriff’s Office. This case is being prosecuted by Assistant United States Attorney Susan Redmond.
Columbia Marijuana Dealer Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Paul W. Grimm sentenced Leonaldo Harris, age 34, of Columbia, Maryland today to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute between 1,000 and 3,000 kilograms of marijuana. Judge Grimm also ordered Harris to pay a money judgment of $2 million.
The sentence was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI); Colonel William M. Pallozzi, Superintendent of the Maryland State Police; and Colonel Tyree C. Blocker, Commissioner of the Pennsylvania State Police.
According to his plea agreement, Harris conspired with Jermaine McGregor and Jennifer Sims to obtain and transport marijuana from California to Maryland for distribution. Harris arranged for bulk cash to be transported from Maryland to California to purchase marijuana. McGregor assisted in the transportation of the cash, packing money in suitcases which he took with him on commercial flights from Maryland to California. Harris arranged for McGregor to make at least six trips to California, transporting between $200,000 and $250,000 on each flight. Harris directed McGregor and other conspirators where to go in California to obtain the marijuana, which the conspirators then transported to a residence in California controlled by Harris. Harris, McGregor, and other co-conspirators then packaged the marijuana for shipment to Maryland.
Harris arranged for the marijuana to be shipped to a warehouse in Beltsville, Maryland, where Sims often accepted delivery of the marijuana. Harris, McGregor and other members of the conspiracy then repackaged the marijuana for distribution and sold it to others in Maryland. Harris and Sims lived together in Columbia, where they counted the drug proceeds and stored.
On April 19, 2013, law enforcement executed a search warrant at Harris and Sims’ residence and recovered a money counter, 17 kilograms of marijuana, and a 9mm handgun.
Jermaine McGregor, age 37, of Inglewood, California, and Jennifer Simms, age 33, of Columbia, Maryland previously pleaded guilty to their roles in the conspiracy. McGregor was sentenced to 30 months 14 days in prison, and Sims was sentenced to four years of probation.
United States Attorney Rod J. Rosenstein praised HSI Baltimore, the Maryland State Police and Pennsylvania State Police for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Nicolas A. Mitchell and Bryan E. Foreman, who prosecuted the case.
Co-owner of Orange Village company pleads guilty to tax chargesRead the Press Release
The co-owner of a sewage and plumbing business in Oakwood Village pleaded guilty this week to tax charges, law enforcement officials said.
Remo DiFranco is scheduled to be sentenced on June 16. He pleaded guilty to two counts of conspiracy to defraud the IRS.
DiFranco, along with two other people and the company where he worked, conspired between 2007 and 2012. DiFranco and other employees prepared checks to a company for specific amounts and falsely classified the payments as rent and material expenses. DiFranco and another executive signed and filed tax returns for years 2007 through 2011 knowing the tax returns understated the company’s income and overstated its expenses, according to court documents.
“Conspiring to impede the IRS by creating business checks for expenses that were not incurred and receiving a kickback from those fraudulent business checks is not tax savings, but rather a recipe for criminal prosecution,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office.
This case is being prosecuted by Assistant U.S. Attorney Antoinette Bacon following an investigation by the Internal Revenue Service – Criminal Investigations.
Cincinnati Man Sentenced for Stealing Special Agent’s Identity in connection with eBay and PayPal SchemeRead the Press Release
ALEXANDRIA, Va. – Rohit Jawa, 25, formerly of Cincinnati, Ohio, was sentenced today to 48 months in prison for wire fraud and aggravated identity theft.
Jawa pleaded guilty on Nov. 17, 2015. According to court documents, from at least February 2013 through June 16, 2015, the defendant devised and executed a complex identity theft scheme to defraud financial institutions, insurance companies, and others. The defendant managed numerous PayPal accounts that were engaged in a scheme to defraud eBay buyers and eBay’s third-party parcel insurance company. During this period, the defendant repeatedly transferred money representing the proceeds of his fraud scheme from and between accounts he controlled in victim names to accounts he controlled in his own name. In connection with this scheme, the defendant stole the identity of a Special Agent of the United States Postal Service Office of Inspector General (USPS OIG), and then used that identity to fraudulently gain access to law enforcement databases from which he stole personal identifying information of multiple victims. The defendant then used the identifying information of those individuals to open further fraudulent financial accounts in their names, without their knowledge or consent.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Rico Medina, Deputy Assistant Inspector General for Investigations for USPS OIG, made the announcement after sentencing by U.S. District Judge Anthony J. Trenga.
This case was investigated by the FBI’s Washington Field Office Cyber Task Force. Assistant U.S. Attorney Whitney Dougherty Russell prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-239.
California Man sentenced to 10 years in prison for drug and money laundering conspiracyRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that Joseph Cecil, aka “Kevin Dupree,” 53, of Sacramento, California, was sentenced to 10 years in prison, followed by five years of supervised release. Cecil pleaded guilty on December 22, 2015, to conspiracy to distribute methamphetamine and heroin and conspiracy to launder money. His co-conspirator, Stacy Johnson also pleaded guilty to conspiracy to launder money and awaits sentencing on May 31, 2016.
According to court documents, Cecil has a long history of violating the laws related to illegal drug possession, trafficking, and money laundering.
Between January 2013 and January 2015, Cecil entered into an agreement with Johnson and others to distribute methamphetamine and heroin throughout Alaska. Cecil orchestrated a system wherein the drugs were sent to Alaska from California. Cecil himself then took possession of these drugs with the intent to distribute them in Alaska communities.
Furthermore, Cecil conspired with the others to launder the proceeds of the drug sales in an attempt to conceal and disguise the nature, source, ownership, and control of the funds. Cecil, Johnson, and others laundered money knowing that the money represented the proceeds of drug sales. Cecil arranged for his co-defendants to use a series of bank accounts to move money made from the sale of heroin and methamphetamine. Proceeds were deposited in Alaska and withdrawn in California. In other instances, Cecil instructed members of the group to send drug sale proceeds via Western Union and Money Gram wire transfers. Thousands of dollars were transferred from Alaska to California using these methods of money transfer. This money laundering activity also further supported the distribution of heroin and methamphetamine in Alaska.
The case was prosecuted by Assistant U.S. Attorney Stephan Collins, Lead Organized Crime and Drug Enforcement Task Force Attorney for the District of Alaska. The case was investigated by the Organized Crime Drug Enforcement Task Force which includes the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF), the Internal Revenue Service Criminal Investigation (IRS-CI), and Homeland Security Investigations (HSI).
Beatrice Woman Charged with Conspiracy to Distribute MethamphetamineRead the Press Release
United States Attorney, Deborah R. Gilg, announced that on March 24, 2016, an indictment was unsealed charging Quirstin Marie Gross, 24, of Beatrice, with conspiracy to distribute and possess with the intent to distribute 50 grams or more of a substance containing methamphetamine between December 1, 2013, and October 31, 2015. The charge carries a possible penalty of not less than five years, and not more than 40 years imprisonment, and a fine of up to $5,000,000. Following any prison term, there would be a term of supervised release of at least four years.
Gross had an initial appearance in federal court in Lincoln on March 28, 2016. She is scheduled for trial beginning on May 31, 2015, and she was ordered detained pending trial.
This case was investigated by the Lincoln/Lancaster County Drug Task Force and the Metro Fugitive Task Force.
Appleton Felon Sentenced to 5 Years in Prison for Firearm PossessionRead the Press Release
Gregory J. Haanstad, United States Attorney for the Eastern District of Wisconsin, announced that on March 24, 2016, Kong Vang (age: 21) of Appleton, Wisconsin, was sentenced to 60 months in federal prison by Chief United States District Judge William C. Griesbach. Vang previously entered a guilty plea to an indictment charging him with being a felon in possession of a firearm.
On May 25, 2015, a Federal Firearms Licensed dealer in Oshkosh was burglarized and eleven firearms were stolen. Vang agreed to sell several of the firearms on behalf of the burglars in exchange for money or drugs. In pronouncing sentence, Chief Judge Griesbach noted the very serious nature of the offense, the number of stolen firearms involved, the defendant’s sale of firearms to individuals prohibited from purchasing them legally, and the defendant’s prior criminal history for drug dealing.
The case was investigated by the Lake Winnebago Area Metropolitan Enforcement Group and the Bureau of Alcohol, Tobacco, Firearms, and Explosives. The case was prosecuted by Assistant United States Attorney Daniel R. Humble.
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Anchorage Man sentenced to 18 years in prison for attempting to sexually exploit children in CambodiaRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that an Anchorage man was sentenced Thursday for attempting to sexually exploit children in Cambodia over the course of four years and attempting to arrange a child sex tourism trip for himself and others to Cambodia.
During yesterday’s all day sentencing hearing, Jason Jayavarman, 46, was fined $50,000, sentenced to 18 years in prison and ordered to submit to supervised release for life by U.S. District Judge Sharon L. Gleason. Jayavarman was convicted in March 2015 of attempted sexual exploitation of a child for the purpose of producing child pornography, and of attempted travel with the intent to aid and abet others to engage in illicit sexual conduct in a foreign place.
The evidence presented at trial established that over the course of 12 trips to Cambodia between 2010 and his arrest in 2013, Jayavarman produced multiple videos of himself engaging in sexual acts with an individual who he believed to be a child. Jayavarman then transported the recordings back to the United States.
According to trial evidence, Jayavarman also planned a trip for himself and others to Cambodia for the purpose of engaging in sexual activity with children as young as 12 years old. Trial evidence demonstrated that Jayavarman explained to one of the other potential travelers – who was an undercover FBI agent – how to groom a child for sex, avoid law enforcement detection and record high quality “mementos” of the sexual abuse.
Jayavarman’s child exploitation activities came to light following a concerned citizen’s anonymous tip to Crime Stoppers.
The FBI and the Anchorage Police Department investigated the case. Assistant U.S. Attorney Audrey J. Renschen and Trial Attorney Ravi Sinha of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section (CEOS), Project Safe Childhood combines federal, state and local resources to better identify, 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.
Albuquerque Man Pleads Guilty to Federal Mail Theft ChargeRead the Press Release
ALBUQUERQUE – David G. Martin, 29, of Albuquerque, N.M., pleaded guilty today in federal court to a theft of mail charge.
Martin was arrested on Jan. 20, 2016, on a criminal complaint charging him with theft of mail. The complaint alleged that on Dec. 30, 2015, Martin unlawfully possessed a large quantity of mail that did not belong to him and a Unite States Postal Service (USPS) Neighborhood Delivery Collection Box Unit (NDCBU). When found in possession of these items, Martin was in a truck that had been reported stolen. A search of the truck revealed that it contained hundreds of pieces of U.S. mail and their content, credit cards and identification that did not belong to Martin.
Martin was subsequently indicted on Feb. 9, 2016, and charged with theft or receipt of stolen mail on Dec. 30, 2015, in Bernalillo County, N.M. During today’s proceedings, Martin pled guilty to the indictment without the benefit of a plea agreement.
At sentencing, Martin faces a maximum penalty of five years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the U.S. Postal Inspection Service and the Albuquerque Police Department and is being prosecuted by Assistant U.S. Attorney Nicholas Jon Ganjei.
Alaska Man Sentenced to 216 Months for Attempting to Sexually Exploit Children in CambodiaRead the Press Release
An Anchorage, Alaska, man was sentenced for attempting to sexually exploit children in Cambodia over the course of four years and attempting to arrange a child sex tourism trip for himself and others to Cambodia, announced Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division and U.S. Attorney Karen L. Loeffler of the District of Alaska.
Jason Jayavarman, 45, was sentenced yesterday to serve 216 months in prison and a lifetime term of supervised release by U.S. District Judge Sharon L. Gleason of the District of Alaska for his March 2015 conviction of attempted sexual exploitation of children and attempted travel with the intent to engage in illicit sexual conduct in a foreign place.
The evidence presented at trial established that over the course of 12 trips to Cambodia between 2010 and his arrest in 2013, Jayavarman produced multiple videos of himself engaging in sexual acts with an individual who he believed to be a child. Jayavarman then transported the recordings back to the United States.
According to trial evidence, Jayavarman also planned a trip for himself and others to Cambodia for the purpose of engaging in sexual activity with children as young as 12 years old. Trial evidence demonstrated that Jayavarman explained to one of the other potential travelers – who was an undercover FBI agent – how to groom a child for sex, avoid law enforcement detection and record high quality “mementos” of the sexual abuse.
Jayavarman’s child exploitation activities came to light following a concerned citizen’s anonymous tip to Crime Stoppers.
The FBI and the Anchorage Police Department investigated the case. Trial Attorney Ravi Sinha of the Criminal Division’s Child Exploitation and Obscenity Section (CEOS) and Assistant U.S. Attorney Audrey J. Renschen of the District of Alaska prosecuted the case.
This case was brought as part of Project Safe Childhood, a nationwide initiative to combat the growing epidemic of child sexual exploitation and abuse launched in May 2006 by the Department of Justice. Led by U.S. Attorneys’ Offices and CEOS, Project Safe Childhood marshals federal, state and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
Thursday 24 March 2016
Wilmington Heroin Traffickers IndictedRead the Press Release
WILMINGTON, Del. - Charles M. Oberly, III, United States Attorney for the District of Delaware, announced that Willie Brothers Jr., and Raheem Ridley, both of Wilmington, were indicted on March 11, 2016, for conspiracy to distribute over 100 grams of heroin. Brothers faces a maximum sentence of 40 years in prison, a fine of $5,000,000, and 4 years of supervised release following a prison sentence. Ridley’s charges expose him to a maximum sentence of life in prison, a fine of $8,000,000, and 8 years of supervised release for heroin trafficking. Ridley was also indicted for the illegal possession of a handgun, for which he faces an additional maximum penalty of ten years in prison, a fine of $250,000, and 3 years of supervised release.
According to statements made at Brothers’ initial appearance earlier today, Brothers and Ridley conspired to package together heroin that they purchased in bulk. Before placing the heroin in bags, they would add Fentanyl to the heroin. Fentanyl is an opioid that been linked to the sharp increase in heroin-related overdose deaths in the region, and across the country.
U.S. Attorney Oberly commented, “I am pleased to see the successful cooperation and effort between member agencies of our local HIDTA. The joint efforts of law enforcement agencies are making and will continue to make a difference in the City of Wilmington and its surrounding area.”
“The cooperation among law enforcement won’t stop with these indictments,” said FBI Special Agent in Charge Kevin Perkins. “If you want to traffic heroin, do so at your own risk; we will be coming after you next. I want this indictment to send a clear message to drug traffickers that we are united in this fight and our resolve is unwavering.”
Cecil County Maryland Sheriff Scott Adams commented, "I second the sentiments of U.S. Attorney Oberly. The partnerships we have formed with HIDTA have stopped large quantities of heroin from reaching the streets of Cecil County. I applaud the work of all my law enforcement partners."
This indictment is the result of significant cooperation between High Intensity Drug Trafficking Area (“HIDTA”) program law enforcement agencies. The investigation is led by the Federal Bureau of Investigation’s Delaware Safe Streets Task Force and the Cecil County Drug Taskforce, with significant assistance from the Wilmington Police Department, Delaware State Attorney General’s Office and Bureau of Alcohol, Tobacco, Firearms and Explosives (“ATF”). The FBI Safe Streets Task Force is a coalition of federal, state, and local law enforcement agencies. This case continues to be investigated and is being prosecuted by Special Assistant United States Attorney Christopher L. de Barrena-Sarobe.
The charges in the Indictment are only allegations. The defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
United States and Tennessee File Suit Against Lenoir City Chiropractor and Manchester PhysicianRead the Press Release
The United States and Tennessee filed suit in U.S. District Court in Nashville today, alleging that Matthew Anderson, a Chiropractor from Lenoir City, Tenn., and David Florence, a Doctor of Osteopathy from Manchester, Tenn., made fraudulent claims to Medicare and TennCare in violation of the False Claims Act and the Tennessee Medicaid False Claims Act, announced David Rivera, U.S. Attorney for the Middle District of Tennessee. The suit also names the Cookeville Center for Pain Management; Preferred Pain Center of Grundy County; McMinnville Pain Relief Center; and PMC Management; and claims that the defendants have been unjustly enriched and caused Medicare and TennCare to pay out money through mistake of fact.
“The U.S. Attorney’s Office will work with our federal and state partners and aggressively pursue those who seek to profit at the expense of taxpayers,” said U.S. Attorney David Rivera. “It is imperative that those who profit from dispensing pain medication always consider the well-being of patients as well as the addiction epidemic facing this country.”
Anderson is a chiropractor who operated four pain clinics in Tennessee. Although several of these clinics changed names at times, they were recently known as Cookeville Center for Pain Management; Spinal Pain Solutions in Harriman, Tenn; Preferred Pain Center of Grundy County in Gruetli Laager, Tenn; and McMinnville Pain Relief Center. Anderson operated these clinics both on his own and later through his management company, PMC Management. All of the clinics are now closed, except that the clinic in Harriman, Tenn. now operates under a new name with new owners.
According to the complaint, Anderson believed that medical clinics had to have a physician owner, so he recruited several physicians to serve as the sham owners of the four pain clinics, while Anderson, and later his company PMC, managed the clinics. In fact, according to the complaint, Anderson was the true owner who controlled the pain clinics during the entire time they were in operation.
The complaint alleges that the four pain clinics engaged in the following fraud schemes:
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Anderson operated Cookeville Center for Pain Management as a pill mill in which a nurse practitioner wrote prescriptions for controlled substances for Medicare and TennCare patients that had no legitimate medical purpose. Medicare and TennCare ultimately paid for those prescriptions, which were not allowable under Program rules.
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Anderson instructed employees at the four pain clinics to upcode office visits, by assigning an inaccurate billing code to increase Medicare reimbursement.
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Anderson continued to allow the pain clinics in Cookeville and Harriman to operate as pain management clinics and bill Medicare for services during a period in 2012 in which medical directors were not on site for the minimum time during operating hours as required by Tennessee law governing pain management clinics.As a result, according to the complaint, Medicare paid for non-reimbursable office visits, injections, and controlled substances prescriptions written by nurse practitioners at the clinics, without the required oversight of a medical director.
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In addition, David Florence, a doctor of osteopathy in Manchester, Tenn., who was one of the sham physician owners, also ran a pill mill out of his Center for Advanced Medicine in Manchester.
According to the complaint, Anderson reaped over $5 million from the four pain clinics, and took over 90% of the pain clinics’ profits, while the sham physicians only earned a salary for their service as medical directors. The government alleges that the scheme defrauded Medicare and TennCare of at least $1 million. The United States and Tennessee are seeking to recover treble damages plus penalties pursuant to the False Claims Act.
"These defendants allegedly supplied narcotics to patients without regard to medical need," said Derrick L. Jackson, the Special Agent in Charge at the U.S. Department of Health and Human Services, Office of Inspector General in Atlanta. "The result was an expansion of abuse and addiction to controlled substances which enriched the defendants at the expense of the taxpayers."
“Our office is dedicated to fighting Tennessee’s prescription drug crisis with every tool at our disposal,” said Tennessee Attorney General Herbert H. Slatery III. “Pursuing individuals who attempt to take advantage of the system serves as a deterrent and helps protect the integrity of our healthcare programs.”
“Like many states, Tennessee is battling a prescription drug epidemic,” said TBI Director Mark Gwyn. “We want to hold those accountable who unnecessarily provide prescription drugs with no regard for the taxpayer’s dime and ensure legal medications get in the hands of citizens who really need them.”
The allegations in today’s complaint were originally raised in a lawsuit filed by the former office manager in the Cookeville pain clinic. She brought her claims under the qui tam, or whistleblower, provisions of the False Claims Act, which allow private citizens with knowledge of false claims to bring civil suits on behalf of the government and to share in any recovery.
The case was investigated by the Department of Health and Human Services, Office of Inspector General, and the Tennessee Bureau of Investigation Medicaid Fraud Control Unit. Assistant U.S. Attorney Ellen Bowden McIntyre represents the United States, and Assistant Attorney General Philip Bangle represents Tennessee.
The case is docketed as United States ex rel. Norris v. Anderson, No. 3:12-cv-00035 (M.D. Tenn.). The claims in the complaint are allegations only, and there has been no determination of liability.
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U.S. Marshals Service National Operation Nets More Than 8,000 FugitivesRead the Press Release
NEW ORLEANS – For the second consecutive year, the U.S. Marshals Service conducted a high-impact national fugitive apprehension initiative focusing on the country’s most violent offenders. This six-week initiative, called Operation Violence Reduction12 (Operation VR12), was conducted between February 1 and March 11. While Operation VR12 was conducted nationwide in all 94 federal judicial districts, U.S. Marshals focused special attention on 12 selected locations, designated as priority cities by the U.S. Department of Justice: Baltimore, Maryland; Brooklyn, New York; Camden, New Jersey; Chicago, Illinois; Compton, California; Fresno, California; Gary, Indiana; Milwaukee, Wisconsin; Oakland, California; Savannah, Georgia; Washington, D.C.; and New Orleans, LA.
The U.S. Marshals Service used its multi-jurisdictional investigative authority and fugitive task force nationwide network to arrest more than 648 gang members and others wanted on criminal charges including 559 for homicide and 946 for sexual offenses. Investigators seized 463 firearms, $390,360 in currency, more than 71 kilograms of illegal narcotics and recovered 17 children who had been abducted and reported missing.
“We applied a strategically focused approach to locate and apprehend the nation’s most dangerous fugitives. By removing these violent offenders from the streets, the communities they preyed upon can immediately feel more secure.” said U.S. Marshals Service Deputy Director David Harlow. “Operation VR12 was about using our expertise and law enforcement partnerships to significantly impact our communities by focusing on the worst of the worst violent criminals.”
Locally, the operation in the Eastern District of Louisiana resulted in the arrest of 151 fugitives, gang members, sex offenders and violent criminals who met the OVR12 operational criteria. This closed 211 warrants, including 40 for Homicide, 35 for Robbery, 27 Sex Offenses and 19 Weapons Violations. “The success of this Operation is a testimony to the strength and determination of our law enforcement partnerships,” said Genny May, the United States Marshal for the Eastern District of Louisiana. She continued that “We want the public to know that this task force has the support of every local, state and federal agency in this region. We will continue to work together to take dangerous, violent offenders off the streets to ensure the safety and security of this community.”
The agencies who participated in OVR12 and the USMS Task Force are New Orleans Police Department, Jefferson Parish Sheriff’s Office, Orleans Parish Sheriff’s Office, St Charles Parish Office, St John Parish Sheriff’s Office, St Bernard Parish Sheriff’s Office, Plaquemine Parish Sheriff’s Office, Slidell Police Department, Kenner Police Department, Louisiana Probation and Parole, Louisiana State Police, Housing Authority of New Orleans, Washington Parish Sheriff’s Office, U.S. Border Patrol, Department of Homeland Security Office of Inspector General, Department of Homeland Security/Immigration and Customs Enforcement, Federal Bureau of Investigation, Alcohol, Tobacco, Firearms and Explosives, New Orleans Emergency Medical Services, and Crimestoppers.
Some notable arrests in the Eastern District of Louisiana include:
On February 29th, 2015, Lionel Trumble escaped form the Orleans Parish Sheriff’s Office custody after attending a hearing in Municipal Court. After significant media coverage many hours of investigative work, task force officers developed information that Trumble was hiding in a residence located in the 2400 block of Milan Street in New Orleans. Trumble was arrested without incident on March 9th, 2016, still wearing the leg irons from his court appearance.
Dave Turner was wanted by St. Charles Sheriff’s Office for attempted first degree murder, first degree rape and second degree kidnapping. On February 1st, Turner forced entry into a residence where he assaulted and strangled the victim, causing her to lose consciousness. He then kidnapped the victim, forcing her into his vehicle. While driving, the victim unsuccessfully tried to escape, resulting in Turner opening the passenger side door and pushing her out of the moving vehicle. Turner was arrested without incident in New Orleans, LA, on February 2nd by the U.S. Marshals Task Force.
Michael and Terrell Monroe Michael and Terrell Monroe were wanted by the New Orleans Police Department for the November 25th, 2015 murder of Joe Dorsey, who succumbed to multiple gunshot wounds after the brazen, daylight attack on a city street. After extensive work conducted during this operation, local investigators developed information that the suspects were hiding in southwest Georgia. U.S. Marshals in Georgia arrested both Monroe brothers at separate locations on March 7th, 2016 and recovered a .40 caliber pistol, the same caliber used in the murder.
Ricky McKeel, a known member of the Harvey Hustlers street gang, allegedly assaulted a known female leading the Jefferson Parish Sheriff’s Office to charge him with Aggravated Assault with a Firearm, Felon in Possession of a Firearm and two counts of Assault. Investigative efforts led task force officers to a residence in Harvey, LA where McKeel had barricaded himself in the attic, resulting in a three hour standoff with the JPSO SWAT team until he ultimately surrendered. A subsequent search warrant uncovered a Taurus 9mm semi-automatic handgun.
“This initiative highlights the success that our law enforcement partners can have when we come together – across federal, state, and local lines – to address violent crime in our region,” stated U.S. Attorney Polite.
The concept behind interagency law enforcement operations such as Operation VR12 evolved largely from regional and district task forces. Since the 1980s, the Marshals Service has combined their resources and expertise with local, state and federal agencies to find and apprehend dangerous fugitives. Operation VR12 continued this tradition.
For more information about Operation VR12, including photographs and B-roll footage, visit www.usmarshals.gov or www.usmarshals.gov/district/la-e/index.html.
U.S. Bureau of Prisons Corrections Officer Sentenced in Connection with Assault of Prison Inmate and Falsifying ReportsRead the Press Release
The Justice Department announced today that U.S. Bureau of Prisons Corrections Officer William Houghton, 32, was sentenced to one year and a day in prison in connection with the beating of a federal inmate and the subsequent submission of false reports.
Houghton previously pleaded guilty to violating the civil rights of an inmate inside the Coleman Correctional Facility in Coleman, Florida, on March 22, 2014, by striking the inmate repeatedly in the head and face. Houghton admitted that the inmate did not make any physically aggressive movements, show signs of imminent violence towards the defendant or clench his fists prior to the assault. While the inmate was on the ground, Houghton continuously told the inmate to stop resisting even though he was not resisting in any way, the defendant admitted. Houghton also pleaded guilty to submitting two false reports in connection with the incident, falsely stating that the inmate had attempted to assault him and omitting the fact that Houghton had repeatedly punched the inmate.
“When correction officers violate the civil rights of those they pledge to protect, they threaten the trust that all of us place in law enforcement to keep us safe and secure,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “The Department of Justice will continue its vigorous efforts to ensure that when people abuse their law enforcement authority to break the law, we hold them accountable for their actions.”
This case was investigated by the FBI and the Justice Department’s Office of Inspector General, and prosecuted by Trial Attorneys Jared Fishman and Maura White of the Civil Rights Division’s Criminal Section.
Two Soldotna Men indicted for "spice" traffickingRead the Press Release
Anchorage, Alaska – U.S. Attorney Karen L. Loeffler announced today that a federal grand jury returned an indictment against two Soldotna men, charging them with trafficking in synthetic cannabinoids, informally known as “spice.” The two men are also charged with firearms offenses, in connection with Spice trafficking.
Philip Drake Kneeland, 33, of Soldotna, Alaska, allegedly doing business as Tobacco Distress, Inc., and William Donald Vincent Dooley, 27, of Soldotna, Alaska, are named in the indictment.
According to the indictment, in 2015, law enforcement authorities searched the premises of Tobacco Distress, located at Mile 91.5 of the Sterling Highway, Soldotna, and Kneeland’s Soldotna residence, seizing spice containing illegal “cannabimimetic agents,” including synthetic cannabinoids such as JWH-018, JWH-073, JWH-250 and others packaged as “Judgment Day,” “Armageddon,” “Big Bang,” “California Dreams” and other spice “brands” with flavor labels such as “Mango,” “Grape,” and “Cotton Candy.”
Spice consists of plant material laced with psychotropic drugs. Usually marketed in flashy foil packaging, spice is falsely sold as “herbal incense,” “potpourri,” and mislabeled as “not intended for human consumption.” The indictment alleges that using spice has caused escalating and frequent emergency room visits nationwide, for agitation, anxiety, nausea, vomiting, tachycardia, hypertension, seizures, and hallucinations.
Kneeland is named in five counts, and if convicted could face up to 20 years in prison on the three spice charges, and an additional mandatory minimum 30 years on firearms charges, consecutive to any sentence imposed for the drug charges. Dooley is named in three counts, and if convicted could face up to 20 years on the spice charges, and an additional mandatory five years in prison on a firearms charge. The indictment also seeks the forfeiture of real property, more than $75,000.00 in currency, several firearms and a 2014 GMC Sierra pickup truck.
U.S. Attorney Loeffler commends the Kenai Police Department, the Alaska State Troopers, the Drug Enforcement Administration, and the Bureau of Alcohol, Tobacco, Firearms and Explosives for the investigation preceding the indictment.
An indictment is only a charge and is not evidence of guilt. A defendant is presumed innocent and is entitled to a fair trial at which the government must prove guilt beyond a reasonable doubt.
Two Men Indicted for Armed Robbery of Five Stores in St. Mary’s CountyRead the Press Release
Greenbelt, Maryland – A federal grand jury indicted Quantaz Lamar Shields, age 28, of Leonardtown, Maryland; and Trevone Damone Butler, age 25, of Lexington Park, Maryland, on charges that they conspired to rob businesses in St. Mary’s County. The indictment was returned on March 21, 2016 and unsealed today after Butler’s arrest. Shields is in custody on other charges.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; St. Mary’s County Sheriff Tim Cameron; and St. Mary’s County State’s Attorney Richard Fritz.
According to the 10 count indictment, on five occasions from October 20 to 28, 2015, Shields brandished a firearm and demanded money from employees of a liquor store, motel, pizza store, convenience store and pharmacy in Lexington Park and Leonardtown. Shields took store proceeds, tip money and cigarettes. Prior to leaving the pizza store and pharmacy, Shields phoned Butler so that Butler could pick him up from the scene of the robberies.
A detention hearing was held this morning for Butler before U.S. Magistrate Judge Jillyn K. Schulze in U.S. District Court in Greenbelt. Butler was detained pending trial. An initial appearance is scheduled for Shields on May 2, 2016 at 10:00 a.m.
Shields and Butler face a maximum sentence of 20 years in prison for the robbery conspiracy and on each count of robbery. Shields also faces a mandatory minimum sentence of 7 years in prison for the first count of brandishing a firearm during a robbery, consecutive to any term of imprisonment for the robberies, a consecutive mandatory minimum sentence of 25 years in prison for each additional count of brandishing a firearm during a robbery, and 10 years in prison for being a felon in possession of a gun.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
United States Attorney Rod J. Rosenstein commended the FBI, St. Mary’s County Sheriff’s Office and St. Mary’s County State’s Attorney’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant United States Attorneys Kelly O'Connell Hayes and Leah Jo Bressack, who are prosecuting the case.
Two Men Charged with Armed Robbery after Shoot-out with Law Enforcement Results in FatalityRead the Press Release
KANSAS CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that two men were charged in federal court today for the armed robbery of a Walgreens in Blue Springs, Mo., which resulted in a third suspect being fatally shot by law enforcement officers.
Shannon R. Thomas, 25, of Shawnee, Kan., and Deonte J. Collins-Abbott, 21, of Grandview, Mo., were charged in a federal criminal complaint filed in the U.S. District Court in Kansas City, Mo.
Today’s criminal complaint charges both Thomas and Collins-Abbott with the armed robbery of a Walgreens located at 9th and Duncan in Blue Springs. Thomas and Collins-Abbott are also charged with aiding and abetting each other to possess a firearm during a crime of violence.
According to an affidavit filed in support of today’s criminal complaint, law enforcement officers were conducting surveillance on Thomas and Collins-Abbott as part of an investigation into a series of 21 armed robberies of businesses in Independence, Mo., Raytown, Mo., North Kansas City, Mo., Kansas City, Mo., and Kansas City, Kan., since Jan. 2, 2016. In all of these robberies, the affidavit says, the suspects have consistently displayed handguns in a threatening manner and behaved in a violent and aggressive fashion physically toward their victims, including shooting one victim at the Conoco located at 4656 Prospect Ave., Kansas City, Mo., on March 15, 2016. The robberies appear to have been committed consistently by at least four suspects who appear in surveillance video in most of the incidents.
Law enforcement officers saw Collins-Abbott leave his apartment and travel to the apartment of Jermon Seals in Shawnee early this morning. When Collins-Abbott and Seals left the apartment, the affidavit says, they both appeared to be holding handguns and were dressed in all black clothing. They left in Seals’s 2001 BMW X5 SUV and eventually stopped to pick up Thomas.
At approximately 3:09 a.m., the affidavit says, they stopped at the Phillips 66 at 1005 N.W. Coronodo Dr., Blue Springs. They entered the business and quickly left. According to the affidavit, they had attempted to rob the business.
They then drove to the area of 9th and Duncan in Blue Springs. The affidavit says they left the vehicle and walked up to the Walgreens, where they confronted an employee outside the business and forced the employee inside at gunpoint. Once inside, one of the robbers placed a firearm to the back of the employee’s head and took money from the front register. The other two robbers went over the pharmacy counter and took prescription grade cough syrup at gunpoint from the pharmacist. They then exited the business.
Law enforcement officers confronted them as they were walking back to the vehicle, the affidavit says. They failed to comply with the officers’ commands, according to the affidavit, and turned towards the officers, pointing a gun in their direction. Officers returned fire and Seals was struck in the exchange. Collins-Abbott and Thomas were apprehended by officers after a short foot pursuit.
Dickinson cautioned that the charges contained in this complaint are simply accusations, and not evidence of guilt. Evidence supporting the charges must be presented to a federal trial jury, whose duty is to determine guilt or innocence.
This case is being prosecuted by Assistant U.S. Attorney Adam Caine. It was investigated by the FBI, the Kansas City, Mo., Police Department, the Independence, Mo., Police Department, the Bureau of Alcohol, Tobacco, Firearms and Explosives and the U.S. Marshals Service.
Twenty Seven South End Alleged Gang Members Charged with Drug and Firearm OffensesRead the Press Release
Boston – Twenty seven individuals, many of whom are affiliated with the Lenox Street Cardinals, and other street gangs operating in the Lenox Street Housing Development area of Boston’s South End, have been charged with federal and state drug and firearms offenses.
Seventeen federal indictments and one criminal complaint were unsealed today in U.S. District Court in Boston, charging 19 defendants with distribution and possession of drugs and firearms in the Lenox Street Housing Development. In addition, eight individuals from the same area were charged in criminal complaints with drug distribution by state authorities.
“Through their sale of weapons and drugs, these defendants bring violence, fear and intimidation to a community in the heart of this City,” said United States Attorney Carmen M. Ortiz. “Lenox Street’s residents, surrounded by illegal activity and the violence that accompanies it, are made to feel like prisoners in their own homes. As the Department of Justice, we are committed to assisting residents in reclaiming their right live in a peaceful environment free from drugs, guns and violence.”
“ATF will continue to aggressively partner with its federal, state, and local law enforcement counterparts to dismantle criminal street gangs, and their drug trafficking and violence committed through the use of firearms”, said Daniel Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms & Explosives, Boston Field Division. “Furthermore, it demonstrates that law enforcement will not standby and allow these criminal street gangs to get away with such acts, which creates fear for the residents within the community.”
“These arrests send a strong message that illegal drugs and guns have no place on the streets of Boston,” said Boston Police Commissioner William B. Evans. “I want to commend all of my officers and our partners from the ATF, the U.S. Attorney’s Office and the Suffolk County District Attorney’s Office for their coordinated efforts during this lengthy investigation.”
“The children and families who live at the Lenox Street Housing Development deserve a safe, healthy environment free of the violence that goes hand in hand with the drug trade. Local, state, and federal authorities will never waver in our commitment to those families and their right to live free of fear,” said Suffolk County District Attorney Daniel F. Conley.
The investigation was initiated in January 2015 with the principal goal of curtailing drug and gun trafficking that tyrannizes the Lenox Street Housing Development and severely disrupts the lives of residents. The Development and surrounding areas have historically suffered from the violence that accompanies these illegal activities. According to the Boston Police Department’s Boston Regional Intelligence Center (BRIC), the Lenox area was one of the City’s top 10 hotspots for violence in 2015. In fact, there were 30 shootings and more than 75 reports of shots fired in the area from March 2012 to June 2015.
The following defendants were charged in federal indictments or criminal complaint with:
Distribution of controlled substances within 1,000 feet of a public housing project:
1) Byron Alexander, aka “Shizz”
2) Dontane Bryant, aka “Tane”;
3) Tyler Deloach, aka “Tek”;
4) John Depina, aka “Dough”;
5) Stephen Freeman, aka “Stizz”;
6) Perry Hasberry, aka “Percy”
7) Rasean Hills, aka “Bleed”;
8) Keron-Randall Lewis, aka “Talent”;
9) Frank Melo, aka “Cuts”;
10) Pablo Moreta, aka “Migo”;
11) Anthony Nunez, aka “Dizzo”;
12) Hassan Parham, aka “Hizzy”;
13) James Richardson, aka “9-Ball”;
14) Derek Roberts, aka “Keas”;
15) Ellis Santos, aka “Slim Black”;
16) Anthony Williams aka “Batz.”
Distribution of a controlled substance:
17) Lawrence Bogarty, aka “LB”; and
18) Daryl Tolbert, aka “Blaze.”
Felon-in-possession of a firearm and ammunition:
19) George Deeble, aka “Smiley”; and
20) Pablo Moresta, aka “Migo.”
Ten of the nineteen federal defendants were arrested this morning and will appear later this afternoon in federal court.
The charge of distribution of controlled substances within 1,000 feet of a public housing project provides a mandatory minimum sentence of one year and no greater than 40 years in prison, a minimum of six years of supervised release and a fine of up to $2 million. The charge of distribution of a controlled substance provides a sentence of no greater than 20 years in prison, a minimum of three years of supervised release and a fine of up to $1 million. The charge of being a felon in possession of a firearm and ammunition provides a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
The Suffolk County District Attorney’s Office charged the following individuals in criminal complaints:
Distribution of cocaine:
1) Spencer Oyeyemi
2) Danielle Stokes
3) Monique McFarlin
4) Marquetta Matthews
Distribution of heroin:
5) Hector Delvalle
Distribution of methamphetamine:
6) Shomari Copeland
Possession of a firearm:
7) Markus Perry
Possession and illegal sale of firearm and ammunition:
8) Steven Allen
The investigation is continuing.
The case is being investigated by the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division; Boston Police Department’s Youth Violence Strike Force and District D-4 Drug Control Unit; and the Boston Housing Authority Police. The federal cases are being prosecuted by Assistant U.S. Attorneys in Ortiz’s Organized Crime and Gang Unit. The state cases are being prosecuted by Assistant District Attorneys in Conley’s Gang and Drug Units.
The details contained in the charging documents are allegations. The defendants are presumed to be innocent unless and until proven guilty beyond a reasonable doubt in a court of law.
Tulsa Man Sentenced to 30 Months for Firearm PossessionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that JOSHUA JOHN KILLBLANE, age 33, of Tulsa, Oklahoma, was sentenced to 30 months imprisonment, followed by 3 years of supervised release for FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1) and 924(a)(2).
The Indictment alleged that on or about May 21, 2015, in the Eastern District of Oklahoma, the Defendant, JOSHUA JOHN KILLBLANE, having been convicted of a crime punishable by imprisonment for a term exceeding one year, did knowingly possess in and affecting commerce, firearms, which had been shipped and transported in interstate commerce.
The charges arose from an investigation by the Muskogee Police Department, the Bureau of Alcohol, Tobacco and Firearms and the Federal Bureau of Investigation. The defendant pled guilty in November, 2015.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee presided over the hearing. The defendant will remain in the custody of the United States Marshal Service pending transportation to the designated federal facility at which he will serve his nonparoleable sentence.
Assistant United States Attorney Kristin Harrington represented the United States.
Tohono O’odham Man Sentenced to 139 Months of ImprisonmentRead the Press Release
TUCSON, Ariz. – On March 21, 2016, Cameron Carl Saraficio, 34, of Santa Cruz, Ariz., a member of the Tohono O’odham Indian Nation, was sentenced by Chief U.S. District Judge Raner C. Collins to 139 months of imprisonment. Saraficio had previously pleaded guilty to two counts of assault with a deadly/dangerous weapon.
On Dec. 25, 2014, Tohono O’odham police officers responded to a report of a domestic incident in progress. Saraficio had struck his girlfriend on the head with a large rock multiple times causing severe facial and head lacerations. As a result of a prior felony conviction for assaulting the same victim, Saraficio had been released from prison just seven months earlier. Citing the need to protect the public and the victims from further acts of violence Sarafico, the court sentenced Saraficio to 115 months in prison for his new crimes and revoked Saraficio’s supervised release on his previous conviction adding two years to be served consecutively for a total of 139 months of imprisonment. The victim is also a member of the Tohono O’odham Indian Nation.
The investigation in this case was conducted by the Tohono O’odham Police Department and the Federal Bureau of Investigation. The prosecution was handled by Serra M. Tsethlikai and Rui Wang, Assistant U.S. Attorneys, District of Arizona, Tucson.
CASE NUMBER: CR-15-0773-TUC-RCC and CR 12-1205-TUC-JGZ
RELEASE NUMBER: 2016-027_Saraficio
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Three Men Charged in $1.2M Corporate Embezzlement SchemeRead the Press Release
PHILADELPHIA – An indictment was filed today charging Daryl Stevens, 45, of Bethlehem, PA, with four counts of mail fraud, and an information was filed charging Justin Jordan, 34, of East Brunswick, NJ, and Christopher Cook, 40, of Ocean Township, NJ, with multiple counts of mail fraud, in connection with a million-dollar fraud scheme, announced United States Attorney Zane David Memeger.
Jordan and Stevens were employees of “Company A,” which was located in Radnor, Pennsylvania, and provided storeroom management services for industrial, commercial, and educational facilities throughout the United States. Cook was employed by “Company B,” which was international pharmaceutical company based in New York City, New York, with offices in New Brunswick, New Jersey. Company B hired Company A to provide inventory management and purchasing services for Company B’s New Brunswick, New Jersey offices. Jordan and Stevens were working on-site at Company B in their employment with Company A. It is alleged that they, along with Cook, created, registered, and incorporated a total of seven sham vendor companies, obtained mailing addresses for their respective sham vendor companies, and set up and controlled bank accounts for their respective sham vendor companies. Jordan allegedly controlled four of the sham vendor companies; Stevens allegedly controlled two of the sham vendor companies; and Cook allegedly controlled one of the sham vendor companies.
According to the charging documents, between July 2008 and December 2014, Jordan, Stevens, and Cook caused Company A to purchase bogus and non-existent products on behalf of Company B from the seven sham vendor companies that they controlled. Invoices were submitted by the sham vendor companies to Company A, which caused Company A to pay the sham vendor companies by mailing checks or wiring funds into the bank accounts controlled by the defendants. Additionally, the defendants allegedly caused Company A to “sell” approximately $1.2 million of bogus product purchased from the defendants’ sham vendor companies to Company B.
If convicted, each defendant faces a maximum statutory sentence of 20 years in prison per charged count, a special assessment, up to three years of supervised release, and a potential fine.
This case was investigated by the FBI. It is being prosecuted by Assistant United States Attorney James Petkun.
An indictment or information is an accusation. A defendant is presumed innocent unless and until proven guilty.
Three Individuals Arrested for Conspiracy to Distribute 5,588 Bags of HeroinRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Williamsport returned a two-count indictment charging two Philadelphia men and a Williamsport women with conspiracy to distribute and possess with intent to distribute 5,588 bags of heroin following their arrest by the Pennsylvania State Police on January 1, 2016 in Loyalsock Township, Lycoming County.
According to U.S. Attorney Peter Smith, the grand jury charged Stacy Donte Morgan, age 26, Samuel Darius Woodlyn, age 27, and Hadiyah Shadiah Bell-Evans, age 20 with conspiring to distribute and distribution of 100 grams or more of heroin. The indictment alleges that they utilized a rental vehicle and a motel room to store, transport and distribute heroin.
The federal investigation was conducted by the Federal Bureau of Investigation and the Pennsylvania State Police, with the assistance of the Lycoming County District Attorney’s Office. Assistant United States Attorney George J. Rocktashel has been assigned to the prosecution of this matter.
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.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the sentencing judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 40 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the sentencing judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Three California Men Indicted for Nationwide Conspiracy to Commit Identity, Bank, and Wire FraudRead the Press Release
WILLIAMSPORT – The United States Attorney’s Office for the Middle District of Pennsylvania announced today that a federal grand jury in Williamsport indicted three California men on November 12, 2015, charging them with conspiracy to commit wire fraud, bank fraud, and fraud in connection with identification documents in an alleged nationwide scheme to defraud five banks and over 40 jewelry stores, including stores in State College and Camp Hill, Pennsylvania.
According to U.S. Attorney Peter Smith, the new Indictment is the result of a continuing investigation. The indictment alleges that Thung Van Huynh, age 46, Tung Thanh Doan, age 48, and John Quangchoang Nguyen, age 55, used counterfeit California driver’s licenses to purchase and attempt to purchase Rolex, Omega, and Breitling watches from the victim jewelry stores throughout the United States. The watches are allegedly valued at approximately $528,614.
The indictment charges that the conspirators submitted fraudulent applications for loans and credit, totaling approximately $463,400, using the counterfeit driver’s licenses. The victims include a jewelry store in State College and another one in State College, in addition to 25 individual identity theft victims and five financial institutions. At the time of the alleged offenses, Thung Van Huynh and John Quangchoang Nguyen were residents of Garden Grove, California, and Tung Thanh Doan was a resident of Stanton, California.
The indictment was unsealed yesterday following the arrests and initial appearances of Huynh and Doan before U.S. District Court Judge Malachy E. Mannion. Nguyen’s initial appearance was held February 9, 2016.
Another alleged participant in the conspiracy and scheme to defraud, Phil Nguyen, was previously indicted and entered a guilty plea to wire fraud. Nguyen is awaiting sentencing before United States District Judge Malachy E. Mannion in Scranton.
The federal investigation was conducted by the Federal Bureau of Investigation with the assistance of the Police Departments of Patton Township and Hampden Township, and the Jeweler’s Security Alliance. Assistant United States Attorney George J. Rocktashel has been assigned to the prosecution of the case.
Indictments are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the sentencing judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 30 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the sentencing judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Texas Man Pleads Guilty to Multiple Bank Robbery ChargesRead the Press Release
St. Louis, MO – Nader Jaser Abdullah, Houston, TX, pled guilty to the armed robberies of five banks spanning five states, including the Lindell Bank here on July 14, 2015. Abdullah entered his plea today before United States District Judge E. Richard Webber. He is scheduled for sentencing June 23, 2016.
According to court documents, in addition to the July 14th robbery, Abdullah robbed a bank in Hendersonville, North Carolina, three days later on July 17, 2015. Previous to those robberies, he admitted to the robberies of three other banks in Phoenix, Arizona; Las Vegas, Nevada; and Glenview, Illinois, also in July, before being arrested in Wisconsin.
He now faces a maximum penalty of 20 years in prison and/or fines up to $250,000. In determining the actual sentences, a judge is required to consider the U.S. Sentencing Guidelines, which provide recommended sentencing ranges.
This case was investigated by the Federal Bureau of Investigation in multiple jurisdictions and the St. Louis Metropolitan Police Department. Assistant United States Attorney Tom Mehan is handling the case for the U.S. Attorney's Office.
Syracuse Attorney Sentenced for Social Security Disability FraudRead the Press Release
SYRACUSE, NEW YORK – Richard S. Hartunian, United States Attorney for the Northern District of New York announced today that Christopher Chadick, 63, of Syracuse, N.Y. was sentenced today by Chief United States District Judge Glenn T. Suddaby to a five (5) year term of probation with 6 months of intermittent weekend confinement in connection with his plea of guilty to Social Security Fraud. Chadick was also ordered to pay restitution to the Social Security Administration in the amount of $247,269.40.
As part of his guilty plea on November 23, 2015, Chadick admitted that from April 2003 through August 2010, he was engaged in significant gainful employment as an attorney. He did not disclose to the Social Security Administration that he was working in any capacity after the year 2000. The evidence in the case showed that Chadick operated a law firm, handled bankruptcy actions, appeared in town courts, and later was employed by a law firm. He further admitted that he concealed his employment to fraudulently secure his monthly disability benefits. Chadick never informed the Social Security Administration of any improvement in his medical condition or that he was able to work as a lawyer while receiving Social Security Disability benefits.
The case was investigated by the Social Security Administration Office of Inspector General, based on a referral from the U.S. Bankruptcy Trustee for the Northern District of New York and was prosecuted by Assistant U.S. Attorney Tamara B. Thomson.
St. Croix Man Pleads Guilty to Unlawful Mailing of a FirearmRead the Press Release
St. Croix, USVI – On Thursday, March 24, 2016, Shawki Thomas, 25, pleaded
guilty in federal court before the Honorable George W. Cannon to one count of unlawful mailing of a firearm, United States Attorney Ronald W. Sharpe announced.According to the plea agreement filed with the court, between August 1, 2015,
and August 14, 2015, Thomas knowingly caused three firearms to be shipped through the U.S. Mail inside of a large screen television. The television and firearms were shipped from Florida to St. Croix.The defendant faces a maximum of two years in prison and a $250,000 fine. A
sentencing date has been set for July 27, 2016. The defendant remains out of custody pending sentencing.The charges are the result of investigative work of U.S. Immigration and Customs Enforcement’s Homeland Security Investigations and the U.S. Postal Inspection Service. The case is being prosecuted by Assistant U.S. Attorney Christian Stringer.
Springfield MO Woman Sentenced to 30 Months for Heroin DistributionRead the Press Release
MUSKOGEE, OKLAHOMA - The United States Attorney’s Office for the Eastern District of Oklahoma, announced that AMBER LYNN BRAKE, age 24, of Springfield, Missouri, was sentenced to 30 months imprisonment, followed by 3 years of supervised release for POSSESSION WITH INTENT TO DISTRIBUTE HEROIN, in violation of Title 21, United States Code, Sections 841(a)(1) and 841(b)(1)(B).
The Indictment alleged that on or about December 2, 2014, within the Eastern District of Oklahoma, the defendant did knowingly and intentionally possess with intent to distribute 100 grams or more of a mixture or substance containing a detectable amount of Heroin, a Schedule I Controlled Substance.
The charges arose from an investigation by the Atoka County Sheriff’s Department and the Drug Enforcement Administration. The defendant pled guilty in November, 2015.
The Honorable Ronald A. White, District Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearing. The defendant will remain in the custody of the United States Marshals Service pending transportation to the designated federal facility at which she will serve her nonparoleable sentence.
Assistant United States Attorney Shannon Henson represented the United States.
Somerset County, New Jersey, Man Arraigned on Child Pornography ChargesRead the Press Release
TRENTON, N.J. – A Branchburg, New Jersey, man appeared in federal court today to face charges for his alleged role in a conspiracy to produce sexually explicit images of children through a website he operated from his home computer, U.S. Attorney Paul J. Fishman announced.
Jonathan Soto, 26, was arraigned this morning before U.S. District Judge Freda L. Wolfson in Trenton federal court and pleaded not guilty to both counts of an indictment charging him with conspiracy to produce child pornography and possession of child pornography. He was previously arrested and charged by federal complaint on April 16, 2015, and remains in federal custody pending the charges.
According to the indictment:
From July 2014 through April 2015, Soto administered and operated a website designed to produce child pornography by tricking minor victims into engaging in sexually explicit activity on web cameras. Users of the website created false profiles on popular social media websites purporting to be young children, aged from about 10 to 16.
Using these false profiles, the users chatted with actual minor children and lured the minor victims to other websites to engage in private chats. Once in a private chat room, users then persuaded child victims to engage in sexually explicit activity. Unbeknownst to the victims, when they engaged in sexually explicit activity, they were secretly recorded, and those videos were shared with other users on Soto’s website.
FBI special agents executed a search warrant at Soto’s residence on or about April 15, 2015, and discovered computer equipment containing multiple videos of child pornography which had been downloaded from Soto’s website.
The conspiracy to produce child pornography count carries a minimum penalty of fifteen years in prison, a maximum potential penalty of thirty years in prison, and a $250,000 fine. The possession of child pornography count carries a maximum potential penalty of 10 years in prison and a $250,000 fine.
U.S. Attorney Fishman credited special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher in Newark, and the Branchburg Township Police Department, under the direction of Chief David Young, with the investigation.
The government is represented by Assistant U.S. Attorney Melissa Wangenheim of the U.S. Attorney’s Office General Crimes Unit in Newark.
The charges and allegations contained in the indictment are merely accusations, and the defendant is considered innocent unless and until proven guilty.
Defense counsel: Assistant Federal Public Defender Lisa Mack Esq., Newark
SoCal Doctor Agrees to Plead Guilty to Distributing Addictive Painkiller and Laundering Proceeds of His Drug TraffickingRead the Press Release
LOS ANGELES – In a plea agreement filed this morning, a San Gabriel Valley doctor has agreed to plead guilty to a federal drug trafficking charge for illegally distributing the powerful painkiller best known by the brand name OxyContin.
Dr. Daniel Cham, 48, of Covina, has agreed to plead guilty to one count of distribution of oxycodone and one count of money laundering.
In the plea agreement, Cham admits to unlawfully prescribing oxycodone to an undercover agent posing as a patient in March 2014 in exchange for $300 in money orders, which Cham then deposited into a bank account held in the name of another business. Cham made the deposit “knowing that the transaction was designed to conceal and disguise the nature and source of the money orders,” according to the plea agreement.
“Painkillers like oxycodone can be life-threatening to those who abuse them,” said United States Attorney Eileen M. Decker. “Many of the prescription drugs that find their way to the street come from doctors who prescribe them without medical justification. This defendant put lives at risk for money, making him no different than street-level drug dealer.”
Cham was initially charged in this case in October 2014 when a federal grand jury returned an indictment alleging narcotics trafficking, money laundering, fraud and making false statement to authorities. The indictment focused on prescriptions Cham wrote at various locations, including his medical offices in La Puente and Artesia.
As part of the investigation investigators in May 2014 executed federal search warrants at 13 locations, including Cham’s residence and medical offices. According to the affidavit in support of the search warrants, the doctor often saw patients between 8 p.m. and 2 a.m. on Fridays, Saturdays and Sundays, and he post-dated prescriptions to make them appear to have been written on weekdays. Over the course of a year that ended in March 2014, Cham issued more than 5,500 prescriptions for controlled substances – primarily for oxycodone, hydrocodone, alprazolam and carisoprodol – and he issued more than 42,000 such prescriptions since July 2010, according to the affidavit.
The affidavit also discussed how an undercover officer made three visits to Cham’s La Puente office in 2014, and how Cham wrote prescriptions for controlled substances in exchange for $200 or $300 in cash or money orders. As discussed in the affidavit, Cham issued a prescription for oxycodone even though the undercover operative said he “had been high and drunk while receiving controlled substance prescriptions” previously from Cham. On another occasion, Cham prescribed oxycodone even though the undercover law enforcement officer presented, in lieu of photo identification, a written notice that his license had been suspended for driving under the influence.
Cham’s case is pending before United States District Judge Dean D. Pregerson, who has scheduled an April 4 hearing for Cham to enter his guilty plea.
The drug trafficking and money laundering charges that Cham has agreed to plead guilty to each count carry a statutory maximum penalty of 20 years in federal prison.
In his plea agreement, Cham also agrees to forfeit to the government more than $60,000 in cash that he admits are “proceeds of [his] illegal activity.”
The investigation into Cham was conducted by the Drug Enforcement Administration, IRS Criminal Investigation, the Los Angeles County Sheriff’s Department’s Health Authority Law Enforcement Task Force, the Federal Bureau of Investigation, the California Medical Board, and the Los Angeles Police Department.
Seventeen Individuals Indicted on Drug Conspiracy ChargesRead the Press Release
“The following named individuals have been charged with a federal crime or crimes. An Indictment does not constitute evidence of guilt. An Indictment is a method of bringing charges against a defendant. A defendant is presumed innocent of the charges and may not be found guilty unless evidence establishes guilt beyond a reasonable doubt. United States Sentencing Guidelines may be considered, upon conviction, by the sentencing court. Federal prison sentences are non-parolable.”
MUSKOGEE, OKLAHOMA – The United States Attorney’s Office for the Eastern District of Oklahoma, announced that the following individuals were indicted on charges stemming from a drug conspiracy. All defendants are charged with DRUG CONSPIRACY, in violation of Title 21, United States Code, Section 846; and various defendants are charged with related crimes, including, CONTINUING CRIMINAL ENTERPRISE, in violation of Title 21, United States Code, Sections 848(a), 848(b), 848(c), 848(d) and 848(s); POSSESSION WITH INTENT TO DISTRIBUTE METHAMPHETAMINE, in violation of Title 21, United States Code, Section 841(a)(1); DISTRIBUTION OF METHAMPHETAMINE, in violation of Title 21, United States Code, Section 841(a)(1); USE OF A COMMUNICATION DEVICE IN FURTHERNACE OF DRUG TRAFFICKING, in violation of Title 21, United States Code, Section 843(b); POSSESSION OF FIREARM IN FURTHERANCE OF A DRUG TRAFFICKING CRIME, in violation of Title 18, United States Code, Sections 924(c)(1)(A) and 2; and FELON IN POSSESSION OF FIREARM, in violation of Title 18, United States Code, Sections 922(g)(1), 924(a)(2) and 2 and a DRUG FORFEITURE allegation:
CODY McCLENDON, age 35, of Tahlequah, Oklahoma
MICHAEL LINCOLN, age 39, of Tulsa, Oklahoma
AMBER CLAPHAN, age 33, of Stilwell, Oklahoma
DONALD TRAMMEL, age 40, of Tahlequah, Oklahoma
SAMANTHA SMITH, age 21, of Muskogee, Oklahoma
TERESA CHAGOLLA, age 54, of Tahlequah, Oklahoma
JACOB HORTON MASTERS JR, age 54, of Tulsa, Oklahoma
NATHAN ROWDEN GREEN, age 27, of Hulbert, Oklahoma
DUSTY ALLEN DRYWATER, age 33, of Tahlequah, Oklahoma
ASHLEY NOEL STEELE, age 29, of Tahlequah, Oklahoma
JIMMY W. SEQUICHIE JR., age 24, of Tahlequah, Oklahoma
REGINA ANN BALLARD, age 37, of Stilwell, Oklahoma
a/k/a REGINA HUMMINGBIRDMATILDA KAY BIRDTAIL, age 20, of Tahlequah, Oklahoma
FREDERIC PETERSEN BECK JR., age 53, of Tahlequah, Oklahoma
GARY WAYNE WILDER, age 35, of Tahlequah, Oklahoma
BRENDA AILEEN AIRINGTON, age 54, of Kellyville, Oklahoma
BRYAN STEVEN LAFAVOR, age 34, of Checotah, Oklahoma
The Superseding Indictment alleges that from beginning in or about the end of 2013, the exact date being unknown to the Grand Jury, and continuing until on or about January 27, 2016, within the Eastern District of Oklahoma and elsewhere, the Defendants did knowingly and intentionally conspire, confederate and agree with each other, and with others known and unknown to the Grand Jury, to possess with intent to distribute and distribute methamphetamine.
The Investigation revealed that Cody McClendon III, a/k/a Cody-Mac, an Indian Brother Hood (IBH) gang member, while an inmate with the Oklahoma Department of Corrections in McAlester, Oklahoma, was utilizing a contraband cellular phone that he kept hidden on his person and inside his prison cell to facilitate the sale and distribution of methamphetamine. McClendon was doing this by using the cellular phone to communicate with co-conspirators via audio phone calls, text messages, and by communicating on the social media website Facebook. The Defendants, through their affiliation with the IBH prison gang, promoted a climate of fear through threats of violence and attempted to commit acts of violence to protect and expand the drug organization’s criminal operations.
The charges arose from a joint investigation entitled “Home of the Brave” coordinated by the Organized Crime Drug Enforcement Task Force (OCDETF) of the Eastern District of Oklahoma. OCDETF is an initiative led and coordinated by the Office of the United States Attorney. The agencies involved in the investigation were the Oklahoma Bureau of Narcotics, the McAlester Police Department, the Tahlequah Police Department, the Muskogee Police Department, the Cherokee County Sheriff’s Department, Districts 13, 18, 25 and 27 District Attorney’s Drug Task Forces and Violent Crime Task Forces, the Muskogee County District Attorney’s Office, the Seminole Nation Lighthorse Police Department, the Oklahoma Department of Corrections, the Bureau of Indian Affairs and the McAlester and Tulsa Offices of the Drug Enforcement Administration.
The Honorable Kimberly E. West, Magistrate Judge in the United States District Court for the Eastern District of Oklahoma, in Muskogee, presided over the hearings. All defendants were remanded into the custody of the United States Marshals Service.
Assistant United States Attorney Shannon Henson represented the United States.