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3 May 2016
Menlo Worldwide Services Inc. and Its Subcontractor Estes Pay the U.S. $13 Million to Resolve False Claims Act AllegationsRead the Press Release
SACRAMENTO, Calif. — A company and its subcontractor have paid a total of $13 million to resolve allegations under the False Claims Act that they overcharged the government in various ways under the Defense Transportation Coordination Initiative contract in part by billing the cost of moving freight by air when it was actually shipped by ground, Acting United States Attorney Phillip A. Talbert announced today.
Menlo Worldwide Services Inc. has paid the United States $10 million, and Estes Forwarding Worldwide, on behalf of itself and its parent Estes Express Lines, has paid $3 million.
“This settlement demonstrates our commitment to protecting the integrity of federal contracts and ensuring the government only pays for the actual services rendered as required under the contract,” said Acting U.S. Attorney Talbert.
The civil settlement resolves a lawsuit filed in the Eastern District of California under the qui tam, or whistleblower, provisions of the False Claims Act. These provisions allow private citizens to bring civil actions on behalf of the United States for false claims and share in a portion of the government’s recovery. The whistleblowers in this case will collectively receive $2.86 million of the recovery proceeds.
This settlement was the result of a coordinated effort among the U.S. Attorney’s Office for the Eastern District of California, the United States Transportation Command, the Defense Criminal Investigative Service, the Defense Contract Audit Agency, the U.S. Army Criminal Investigation Command, and the Department of Justice’s Civil Division, Commercial Litigation Branch. Assistant United States Attorneys Kelli Taylor and Colleen Kennedy handled the matter for the United States.
The claims settled by this agreement are allegations only, and there has been no determination of liability. Menlo Worldwide Services Inc., Estes Forwarding Worldwide, and Estes Express Lines cooperated with the United States’ investigation of this matter.
McKeesport Woman Charged with Defrauding Social SecurityRead the Press Release
PITTSBURGH - A resident of Allegheny County, Pennsylvania, has been indicted by a federal grand jury in Pittsburgh on a charge of theft of government property, United States Attorney David J. Hickton announced today.
The one-count indictment named Karen Bosnak, 52, of McKeesport, Pennsylvania, as the sole defendant.
The indictment alleges that, from Nov. 16, 2013 through Sept. 18, 2014, Bosnak converted to her own use $13,970 in Title II Social Security benefits deposited to the bank account of a deceased beneficiary, after his death.
The law provides for a maximum total sentence of 10 years in prison, a fine of $250,000 or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Paul E. Hull is prosecuting this case on behalf of the government.
The U.S. Social Security Administration-Office of Inspector General conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
Maryland Man Sentenced to Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
Stole Identities from D.C. Government Agency for Use in Filing False Tax Returns
A resident of Bowie, Maryland, was sentenced today to four years in prison after pleading guilty in January for his involvement in a far-reaching identity theft and tax fraud scheme in which he assisted in the filing of fraudulent federal income tax returns seeking more than $4.4 million in refunds, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, U.S. Attorney Channing D. Phillips of the District of Columbia, Special Agent in Charge Thomas Jankowski of Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service’s Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Marc A. Bell, 49, a former employee of the District of Columbia’s Department of Youth Rehabilitation Services (DYRS), admitted taking part in a massive and sophisticated identity theft and false tax return scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. According to court documents, the scheme involved the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million from the U.S. Treasury. The false tax returns sought refunds for tax years 2005 through 2013 and were often filed in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated individuals. Refunds also were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, from 2005 to 2013, Bell was employed as a program manager, program officer or placement expeditor at the District of Columbia’s Department of Youth Rehabilitation Services (DYRS). The agency is responsible for the supervision, custody and care of young people charged with a delinquent act in the District of Columbia and either detained in a DYRS facility while awaiting adjudication or committed to DYRS by a District of Columbia Family Court judge following adjudication. In his various capacities at DYRS, Bell had access to the agency’s database system, which contained the personal identifying information of DYRS youth, including their names and social security numbers. Bell admitted that between approximately May 2010 and April 2013, he used his computer access to obtain the personal identifying information of at least 645 then-current and former DYRS youth. Bell admitted that he provided this information to other scheme participants, who used the names and social security numbers to file at least 1,160 fraudulent federal income tax returns that claimed refunds of approximately $4,441,194. The IRS issued approximately 700 U.S. Treasury checks, totaling approximately $2,422,211, in the names of the DYRS youth in whose names the tax returns were filed. Bell received financial compensation from co-conspirators for providing the stolen identities.
Bell is one of approximately 20 participants in this scheme who have pleaded guilty to federal charges in the U.S. District Court for the District of Columbia. Bell pleaded guilty in January to one count of conspiracy to defraud the government with respect to claims, one count of aiding and abetting in the filing of fictitious or false claims and one count aiding and abetting fraud and related activity in connection with identification documents. In addition to the prison term, U.S. District Judge Ellen S. Huvelle ordered Bell to serve three years of supervised release and pay restitution to the IRS in the amount of $1,972,710.
This morning, Lakisha Jackson, 40, of District Heights, Maryland, pleaded guilty to one count of conspiracy to commit theft of public money for her role in the scheme. As part of her plea, she admitted that between September 2010 and May 2012 she allowed her residential address to be used to file approximately 70 fraudulent federal income tax returns seeking refunds of approximately $229,199 and to receive 61 fraudulently-procured U.S. Treasury checks totaling approximately $193,977. Jackson faces a statutory maximum sentence of five years in prison and a $250,000 fine. She has agreed to pay restitution to the IRS in the amount of $175,953. Jackson is scheduled to be sentenced on July 13.
Acting Assistant Attorney General Ciraolo, U.S. Attorney Phillips, Special Agent in Charge Jankowski, Inspector in Charge Kelokates and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein, Paralegal Specialists Donna Galindo, Corinne Kleinman and Julie Dailey and Legal Assistant Angela Lawrence. Finally, they thanked Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Maryland Man Sentenced to Four Years in Prison for Role in Massive Identity Theft and Tax Fraud SchemeRead the Press Release
WASHINGTON – A resident of Bowie, Maryland, was sentenced today to four years in prison after pleading guilty in January for his involvement in a far-reaching identity theft and tax fraud scheme in which he assisted in the filing of fraudulent federal income tax returns seeking more than $4.4 million in refunds, announced U.S. Attorney Channing D. Phillips, Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division, Special Agent in Charge Thomas Jankowski of Internal Revenue Service-Criminal Investigation (IRS-CI), Inspector in Charge Maria L. Kelokates of the U.S. Postal Inspection Service’s Washington Division and Assistant Inspector General for Investigations John L. Phillips of the U.S. Department of the Treasury.
Marc A. Bell, 49, a former employee of the District of Columbia’s Department of Youth Rehabilitation Services (DYRS), admitted taking part in a massive and sophisticated identity theft and false tax return scheme that involved an extensive network of more than 130 people, many of whom were receiving public assistance. According to court documents, the scheme involved the filing of at least 12,000 fraudulent federal income tax returns that sought refunds of at least $42 million from the U.S. Treasury. The false tax returns sought refunds for tax years 2005 through 2013 and were often filed in the names of people whose identities had been stolen, including the elderly, people in assisted living facilities, drug addicts and incarcerated individuals. Refunds also were sent to people who were willing participants in the scheme. The refunds listed more than 400 “taxpayer” addresses located in the District of Columbia, Maryland and Virginia.
According to documents filed with the court, from 2005 to 2013, Bell was employed as a program manager, program officer or placement expeditor at the District of Columbia’s Department of Youth Rehabilitation Services (DYRS). The agency is responsible for the supervision, custody and care of young people charged with a delinquent act in the District of Columbia and either detained in a DYRS facility while awaiting adjudication or committed to DYRS by a District of Columbia Family Court judge following adjudication. In his various capacities at DYRS, Bell had access to the agency’s database system, which contained the personal identifying information of DYRS youth, including their names and social security numbers. Bell admitted that between approximately May 2010 and April 2013, he used his computer access to obtain the personal identifying information of at least 645 then-current and former DYRS youth. Bell admitted that he provided this information to other scheme participants, who used the names and social security numbers to file at least 1,160 fraudulent federal income tax returns that claimed refunds of approximately $4,441,194. The IRS issued approximately 700 U.S. Treasury checks, totaling approximately $2,422,211, in the names of the DYRS youth in whose names the tax returns were filed. Bell received financial compensation from co-conspirators for providing the stolen identities.
Bell is one of approximately 20 participants in this scheme who have pleaded guilty to federal charges in the U.S. District Court for the District of Columbia. Bell pleaded guilty in January to one count of conspiracy to defraud the government with respect to claims, one count of aiding and abetting in the filing of fictitious or false claims and one count aiding and abetting fraud and related activity in connection with identification documents. In addition to the prison term, U.S. District Judge Ellen S. Huvelle ordered Bell to serve three years of supervised release and pay restitution to the IRS in the amount of $1,972,710.
This morning, Lakisha Jackson, 40, of District Heights, Maryland, pleaded guilty to one count of conspiracy to commit theft of public money for her role in the scheme. As part of her plea, she admitted that between September 2010 and May 2012 she allowed her residential address to be used to file approximately 70 fraudulent federal income tax returns seeking refunds of approximately $229,199 and to receive 61 fraudulently-procured U.S. Treasury checks totaling approximately $193,977. Jackson faces a statutory maximum sentence of five years in prison and a $250,000 fine. She has agreed to pay restitution to the IRS in the amount of $175,953. Jackson is scheduled to be sentenced on July 13, 2016.
U.S. Attorney Phillips, Acting Assistant Attorney General Ciraolo, Special Agent in Charge Jankowski, Inspector in Charge Kelokates and Assistant Inspector General Phillips commended those who investigated the case. They also acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office for the District of Columbia, including former Assistant U.S. Attorney Sherri L. Schornstein, Paralegal Specialists Donna Galindo, Corinne Kleinman and Julie Dailey and Legal Assistant Angela Lawrence. Finally, they thanked Assistant U.S. Attorney Ellen Chubin Epstein of the District of Columbia’s Fraud and Public Corruption Section and Trial Attorneys Jeffrey B. Bender and Thomas F. Koelbl and former Trial Attorney Jessica Moran of the Tax Division, who prosecuted the case.
Manhattan U.S. Attorney Sues Narco Freedom and Certain of Its Former Executives and Business Associates for Engaging in A Series of Fraudulent SchemesRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, and Scott Lampert, Special Agent in Charge of the U.S. Department of Health and Human Services, Office of Inspector General’s (“HHS-OIG”) New York Region, announced today that the United States has filed a complaint alleging violations of the False Claims Act by NARCO FREEDOM, INC. (“NARCO FREEDOM”), a former operator of outpatient chemical dependency clinics, ALAN BRAND, former CEO of NARCO FREEDOM, GERALD BETHEA, former CEO and program director of NARCO FREEDOM, JOINING HANDS MANAGEMENT INC. (“JOINING HANDS”), a former business associate of NARCO FREEDOM and operator of short-term residences known as “three-quarter houses,” and BERNARD RORIE and DEVORAH HAIGLER, co-owners of JOINING HANDS. The complaint alleges that each of the defendants engaged in one or more fraudulent schemes that caused Medicaid to be billed for services in NARCO FREEDOM’s outpatient programs that were premised upon illegal kickbacks, or that were based on false and fraudulent medical records.
Manhattan U.S. Attorney Preet Bharara said: “Having already disrupted Narco Freedom’s fraud and taken steps to protect hundreds whose housing was put at risk by kickbacks, we now bring this follow-on action to recover the funds fraudulently taken from federal healthcare programs and to hold alleged wrongdoers accountable.”
HHS-OIG Special Agent in Charge Scott Lampert said: “The allegations in this complaint continue to underscore the damage that greed does to our nation’s health care system and the tax payers who help fund it. HHS-OIG will continue to ensure that substance abuse providers are held accountable for the way they do business, so the services utilized by the vulnerable individuals that need them are delivered in an honest and appropriate manner.”
The complaint, filed today in Manhattan federal court, alleges three separate fraudulent schemes. In the first scheme, NARCO FREEDOM, BRAND, and BETHEA are alleged to have provided kickbacks in the form of below-cost housing in NARCO FREEDOM’s three-quarter houses, known as “Freedom Houses,” to induce residents of those houses to enroll in and attend NARCO FREEDOM’s outpatient programs. The scheme exploited vulnerable individuals who were forced to comply with NARCO FREEDOM’s rules because they lacked stable housing options. This scheme also was the subject of a lawsuit brought by this Office in October of 2014, United States v. Narco Freedom, Inc., 14 Civ. 8593 (JGK), in which the United States obtained a temporary restraining order and preliminary injunction enjoining NARCO FREEDOM’s conduct. The injunction was granted based on the Government’s preliminary showing of ongoing violations of the Anti-Kickback Statute and ultimately resulted in a Court order that protected the hundreds of Freedom House residents by transferring management of the Freedom Houses away from NARCO FREEDOM to other providers.
The complaint also alleges a second illegal kickback scheme, whereby NARCO FREEDOM paid JOINING HANDS and RORIE in exchange for RORIE and HAIGLER referring residents of JOINING HANDS three-quarter houses to NARCO FREEDOM outpatient programs and enforcing attendance at those programs.
The complaint alleges a third scheme in which NARCO FREEDOM and BETHEA directed and paid employees of NARCO FREEDOM’s outpatient program in Red Hook, Brooklyn, to create false medical records for patients despite the fact that those employees had not treated the patients, and to create and backdate records for services allegedly provided months or years earlier.
According to the complaint, the defendants have subjected HHS to tens of millions of dollars in losses in Medicaid funds paid as a result of the fraudulent kickback schemes.
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Mr. Bharara thanked HHS-OIG for its investigative efforts and ongoing support and assistance with the case.
The case is being handled by the Office’s Civil Frauds Unit. Assistant U.S. Attorneys Kirti Vaidya Reddy and Cristine Irvin Phillips are in charge of the case.
Lebanon Man Indicted for Illegal Firearms Following Standoff with OfficersRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Lebanon, Mo., man was indicted for being a felon in possession of firearms following an eight-hour-long standoff with law enforcement officers while he was in the attic space of a friend’s residence.
Jesse D. Ivey, 39, of Lebanon, was charged in a two-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Ivey, having been convicted of a felony, was in possession of a Charter Arms .38-caliber revolver, a high Standard .2-caliber pistol, a Ruger .357-caliber revolver and a Savage .30-06 rifle on Jan. 5, 2016.
The indictment also alleges that Ivey was in possession of a Bushmaster AR-15 .223-caliber rifle on Feb. 10, 2016.
Ivey was arrested on Feb. 10, 2016, after an approximately eight-hour-long standoff with law enforcement officers. Officers entered a residence in Lebanon while searching for Ivey and found the Bushmaster rifle lying on the floor of the second-floor master bedroom. They heard Ivey in the attic space above the bedroom and directed him to come out of the attic space, but he refused to surrender. Ivey finally surrendered about eight hours later, at 8:37 p.m.
Dickinson cautioned that the charges contained in this indictment 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 Patrick Carney. It was investigated by the Missouri State Highway Patrol, the Laclede County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Las Cruces Man Sentenced to Ten Years for Cocaine Trafficking ConvictionRead the Press Release
ALBUQUERQUE – Gilbert G. Caldwell, 45, of Las Cruces, N.M., was sentenced today in federal court to 120 months in prison followed by three years of supervised release for his cocaine trafficking conviction.
Caldwell was arrested in Feb. 2015, and charged by criminal complaint with attempting to possess cocaine with intent to distribute. According to the complaint, Caldwell attempted to purchase 125 grams of cocaine from undercover law enforcement agents on Feb. 12, 2015, in Doña Ana County, N.M. Caldwell was subsequently indicted on the same charge on May 28, 2015.
On Dec. 15, 2015, Caldwell pled guilty to the indictment. In entering the guilty plea, Caldwell admitted meeting a person who unbeknownst to him was an undercover narcotics agent at the Sunland Park Casino on Feb. 12, 2015. Caldwell gave the undercover agent $4,500.00 in exchange for a white powder that he believed was cocaine but was in fact fake cocaine. Caldwell made the purchase with the intention of selling cocaine to others.
This case was investigated by the Las Cruces office of the DEA and was prosecuted by Assistant U.S. Attorney Luis A. Martinez of the U.S. Attorney’s Las Cruces Branch Office.
Lancaster County Man Sentenced for Possession of a Firearm and MarijuanaRead the Press Release
Contact Person: William Witherspoon (803) 929-3000
Columbia, South Carolina---- United States Attorney Bill Nettles stated today that Martiquos Javon McIlwain, age 23, of Lancaster County, South Carolina was sentenced yesterday in federal court in Columbia, South Carolina, for possession with the intent to distribute marijuana, a violation of 21 U.S.C. § 841(a)(1) and possession of a firearm in furtherance of a drug trafficking crime, a violation of 18 U.S.C. § 924(c). United States District Judge Joseph F. Anderson, Jr. of Columbia sentenced McIlwain to sixty-four (64) months incarceration followed by five (5) years of supervised release and a special assessment of $200.
Evidence presented at the change of plea hearing established that the Lancaster County Sheriff’s Department received a call for an ongoing burglary. The caller gave the police a description of the burglars. The caller also gave the description of the vehicle they were driving as a white pickup truck with a dealer’s tag. As officers arrived, the owner of the car dealership arrived on the scene and gave the officers the name of the person whom he had allowed to test drive that vehicle earlier that morning. He told the officers that the person had not returned the vehicle nor returned telephone calls.
As the officers searched the area for the vehicle, they saw a black Lexus driven by McIlwain’s co-defendant Reco Cauthen and 3 other persons in the car. Officers were familiar with these individuals and knew they had been mentioned as receivers of stolen items. When the officers began to follow the car, the rear driver’s side door opened and McIlwain jumped out of the car with a book bag and began to run. The officers gave chase on foot. They later caught McIlwain and smelled marijuana coming from the book bag. They opened the book bag and found 88 grams of marijuana in three individually wrapped packages, a mason jar containing approximately 11 grams of marijuana, 3 digital scales, a cellphone and a Taurus Model PT24/7 Pro, 9mm pistol. The firearm had been reported stolen. McIlwain also had 2 grams of marijuana in his pocket. McIlwain was arrested.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives and Lancaster County Sheriff's Department. Assistant United States Attorney William K. Witherspoon of the Columbia office prosecuted the case.
This case was prosecuted as part of the joint federal, state and local Project CeaseFire initiative, which aggressively prosecutes firearm cases.
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Lancaster County Man Pleads Guilty to Possession of a FirearmRead the Press Release
Contact Person: William Witherspoon (803) 929-3000
Columbia, South Carolina ---- United States Attorney Bill Nettles stated today that Reco Valarie Cauthen, age 42, of Lancaster County, South Carolina has entered a guilty plea in federal court in Columbia, South Carolina to possession of a firearm by convicted felon, a violation of 18 U.S.C. § 922(g)(1). United States District Judge Joseph F. Anderson, Jr. of Columbia accepted the guilty plea and will impose sentence after he has reviewed the presentence report which will be prepared by the U.S. Probation Office.
Evidence presented at the change of plea hearing established that the Lancaster County Sheriff’s Department received a call for an ongoing burglary. The caller gave the police a description of the burglars. The caller also gave the description of the vehicle they were driving as a white pickup truck with a dealer’s tag. As officers arrived, the owner of the car dealership arrived on the scene and gave the officers the name of the person whom he had allowed to test drive that vehicle earlier that morning. He told the officers that the person had not returned the vehicle nor returned telephone calls.
As the officers searched the area for the vehicle, they saw a black Lexus driven by Reco Cauthen and 3 other persons in the car. Officers were familiar with these individuals and knew they had been mentioned as receivers of stolen items. When the officers began to follow the car, the rear driver’s side door opened and Martiquos Javon McIlwain jumped out of the car with a book bag and began to run. The officers gave chase on foot.
As some officers chased McIlwain on foot, other officers located the black Lexus nearby. Cauthen was driving the car. The officers knew that Cauthen did not have a driver’s license and stopped the car. They found Cauthen and two (2) other persons in the car. Cauthen was asked for his driver’s license and admitted that he did not have one. He was arrested. The car was searched and the officers found a Ruger model P95, 9mm pistol in a closed compartment under the driver’s seat. While this was ongoing, another officer reported that he had seen Cauthen’s car and the white truck used in the burglary at Cauthen’s house earlier in the day. The white truck had been found abandoned near Cauthen’s home. Based upon all of this information, the officers obtained a search warrant for Cauthen’s home. In the house, they found an AMT Government model .45 caliber pistol located in a vent in a bathroom, 34 rounds of 9mm ammunition, six 30 round magazines for an AK-47 type rifle, a Jimenez .380 caliber pistol box and one 7.62x39 caliber round of ammunition. Cauthen is prohibited from possessing a firearm based upon a prior felony conviction.Mr. Nettles stated the maximum penalty Cauthen could receive is life imprisonment and/or a fine of $250,000.
The case was investigated by agents of the Bureau of Alcohol, Tobacco, Firearms and Explosives, the State Law Enforcement Division, and the Lancaster County Sheriff's Department. Assistant United States Attorney William K. Witherspoon of the Columbia is prosecuting the case.
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Justice Department Reaches Settlement with Columbia, South Carolina, Police Department to Ensure Communication Access for Persons with Hearing DisabilitiesRead the Press Release
The Justice Department announced today a settlement with the Columbia, South Carolina, Police Department (CPD) to ensure that persons who are deaf or hard of hearing receive sign language interpreters and other services necessary for effective communication when interacting with CPD police officers, whether on the road or at a precinct.
Title II of the Americans with Disabilities Act (ADA) requires public entities such as police officers, firefighters and correctional officers to ensure that their communications with people with hearing disabilities are as effective as their communications with people without disabilities.
CPD, under the leadership of Chief W.H. “Skip” Holbrook, serves the largest city in the state of South Carolina with more than 133,000 residents. After the department completed an investigation that found that CPD was not providing the required services to allow for effective communication with persons who are deaf or hard of hearing, CPD worked cooperatively to reach an agreement to ensure effective communication with individuals with disabilities. Under the settlement agreement, CPD will:
- Provide auxiliary aids and services free of charge, including sign language interpreters, to people who are deaf or hard of hearing, within proscribed time frames;
- Modify handcuffing policies to handcuff deaf individuals in front, safety permitting, to enable the person to communicate using sign language or writing;
- Designate an ADA coordinator for law enforcement;
- Develop and utilize a communication card to communicate with persons who are deaf or hard of hearing during routine interactions in the field;
- Develop a communication assessment form to assess, in consultation with an arrestee, what auxiliary aids or services are necessary, and the timing, duration and frequency with which they will be provided;
- Provide at least one TTY and one videophone at each CPD station and sub-station;
- Conduct annual ADA training for CPD personnel and;
- Adopt and publish grievance procedures providing for prompt and equitable resolution of complaints against CPD alleging any action that would be prohibited by Title II or the agreement.
“Our first responders play a critical role in protecting the safety of our communities, and we must ensure they can communicate effectively with all people, including those with hearing disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This settlement will ensure that the Columbia Police Department complies with federal law, protects the civil rights of all its residents and more effectively advances public safety.”
The Justice Department has a number of publications available to assist entities to comply with the ADA, including Effective Communication, which provides guidance on the department’s regulations relating to communicating effectively with people who have vision, hearing or speech disabilities. For more information on the ADA and to access these publications, visit www.ada.gov. Those interested in learning more about this settlement or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
CPD Settlement Agreement
Justice Department Reaches Settlement with Columbia, South Carolina, Police Department to Ensure Communication Access for Persons with Hearing DisabilitiesRead the Press Release
Contact person: Office of Public Affairs (202) 514-2007
WASHINGTON – The Justice Department announced today a settlement with the Columbia, South Carolina, Police Department (CPD) to ensure that persons who are deaf or hard of hearing receive sign language interpreters and other services necessary for effective communication when interacting with CPD police officers, whether on the road or at a precinct.
Title II of the Americans with Disabilities Act (ADA) requires public entities such as police officers, firefighters and correctional officers to ensure that their communications with people with hearing disabilities are as effective as their communications with people without disabilities.
CPD, under the leadership of Chief W.H. “Skip” Holbrook, serves the largest city in the state of South Carolina with more than 133,000 residents. After the department completed an investigation that found that CPD was not providing the required services to allow for effective communication with persons who are deaf or hard of hearing, CPD worked cooperatively to reach an agreement to ensure effective communication with individuals with disabilities. Under the settlement agreement, CPD will:
• Provide auxiliary aids and services free of charge, including sign language interpreters, to people who are deaf or hard of hearing, within proscribed time frames; • Modify handcuffing policies to handcuff deaf individuals in front, safety permitting, to enable the person to communicate using sign language or writing; • Designate an ADA coordinator for law enforcement; • Develop and utilize a communication card to communicate with persons who are deaf or hard of hearing during routine interactions in the field; • Develop a communication assessment form to assess, in consultation with an arrestee, what auxiliary aids or services are necessary, and the timing, duration and frequency with which they will be provided; • Provide at least one TTY and one videophone at each CPD station and sub-station; • Conduct annual ADA training for CPD personnel and; • Adopt and publish grievance procedures providing for prompt and equitable resolution of complaints against CPD alleging any action that would be prohibited by Title II or the agreement.
“Our first responders play a critical role in protecting the safety of our communities, and we must ensure they can communicate effectively with all people, including those with hearing disabilities,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division. “This settlement will ensure that the Columbia Police Department complies with federal law, protects the civil rights of all its residents and more effectively advances public safety.”
The Justice Department has a number of publications available to assist entities to comply with the ADA, including Effective Communication, which provides guidance on the department’s regulations relating to communicating effectively with people who have vision, hearing or speech disabilities. For more information on the ADA and to access these publications, visit www.ada.gov. Those interested in learning more about this settlement or the obligations of public accommodations under the ADA may call the Justice Department’s toll-free ADA information line at 800-514-0301 or 800-514-0383 (TDD), or access its ADA website at www.ada.gov. ADA complaints may be filed by email to [email protected].
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DO NOT REPLY TO THIS MESSAGE. IF YOU HAVE QUESTIONS, PLEASE USE THE CONTACTS IN THE MESSAGE OR CALL THE OFFICE OF PUBLIC AFFAIRS AT 202-514-2007.
Jury Convicts Jereb of Assault on a Federal Officer, Possession of Methamphetamine, HeroinRead the Press Release
SALT LAKE CITY -- Sentencing is set for June 30, 2016, for Arron B. Jereb, age 34, of Wyoming, convicted of assault on a federal officer, possession of methamphetamine and heroin, and possession of drug paraphernalia by a federal jury following a four-day trial in federal court last week. The jury made a specific finding as a part of its verdict on the assault count that Jereb forcibly opposed the officer, subjecting him to a potential 20-year prison sentence. He was acquitted of harming a law enforcement animal and possession of marijuana.
U.S. Attorney John W. Huber said the conduct in this case is something federal prosecutors take very seriously. “Our law enforcement officers put themselves in harm’s way every day to ensure the safety and security of our communities. We will do everything we can to protect them, including the aggressive prosecution of those individuals who put officers’ lives at risk.” Huber said.
The convictions stem from an Oct, 15, 2015, incident on U.S. Forest Service land in the Uinta-Wasatch-Cache National Forest in Salt Lake County. Just after 9 p.m., a Forest Service law enforcement officer initiated contact with two individuals in a red 1994 Chevrolet Blazer parked in a pull off area in Lambs Canyon. Jereb was a passenger in the car driven by Amber Haanpaa. Following an investigation that turned up methamphetamine, heroin, marijuana and drug paraphernalia in the car, the officer issued them mandatory appearance citations to appear in federal court.
After the suspects were released and the officer jump-started the defendant’s car battery, a series of events put the officer in fear for his safety. He called for backup officers over his radio. The defendant told the officer they would not get there in time. The officer commanded Jereb to back up and then remotely deployed his police service dog, Livo, from his patrol vehicle.
During the next several minutes, the defendant assaulted the Forest Service officer resulting in bodily injury to the officer. Livo was also injured during the incident. After continuing to fight and resist the officer, the defendant eventually escaped over the ledge of a steep embankment by the road. He was later found by responding officers who arrived on the scene to assist the Forest Service officer.
The potential maximum penalty for assault on a federal officer with a specific verdict of forcibly opposed is 20 years in prison. Possession of methamphetamine and possession of heroin have a potential one-year jail sentence for each count. The maximum penalty for possession of drug paraphernalia is six months in jail. Jereb is in custody pending sentencing.
Jury Convicts Columbia Man of Heroin ConspiracyRead the Press Release
JEFFERSON CITY, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Columbia, Mo., man was convicted in federal court today of his role in a conspiracy to distribute heroin in Columbia.
Nalenzer Lee Edwards, 47, of Columbia, was found guilty of participating in a conspiracy to distribute heroin from March 17 to June 17, 2015, and of possessing heroin with the intent to distribute.
Law enforcement officers, acting upon information from a confidential informant, followed Edwards from Columbia to a known drug house in Jefferson City, Mo., on June 10, 2015. According to the confidential informant, Edwards was traveling to drop off money to his heroin supplier. After 30-45 minutes inside the residence, Edwards returned to a hotel in Columbia. Later that night offices conducted a trash pull at the Jefferson City residence and discovered numerous items associated with drug trafficking.
On June 17, 2015, law enforcement officers again followed Edwards from Columbia to the Jefferson City residence. After he left the Jefferson City residence, police officers conducted a traffic stop. Officers searched his car and found approximately 19.8 grams of heroin hidden inside the dash. At the same time, a SWAT team executed a search warrant at the residence and seized heroin and crack cocaine.
Edwards told law enforcement officers that he had been obtaining heroin from his Jefferson City supplier on a weekly basis for the past three or four months. Edwards admitted that he packaged the heroin into smaller amounts for sale to customers in Columbia.
Following the presentation of evidence, the jury in the U.S. District Court in Jefferson City, Mo., deliberated for more than an hour before returning the guilty verdicts to U.S. District Judge Brian C. Wimes, ending a trial that began Monday, May 2, 2016.
Under federal statutes, Edwards is subject to a sentence of up to 40 years in federal prison without parole. The maximum statutory sentence is prescribed by Congress and is provided here for informational purposes, as the sentencing of the defendant will be determined by the court based on the advisory sentencing guidelines and other statutory factors. A sentencing hearing will be scheduled after the completion of a presentence investigation by the United States Probation Office.
This case is being prosecuted by Assistant U.S. Attorney Jim Lynn. It was investigated by the Drug Enforcement Administration, the Columbia, Mo., Police Department, MUSTANG (the Mid-Missouri Unified Strike Team and Narcotics Group) and the Jefferson City, Mo., Police Department.
Joplin Man Indicted for Armed Robbery of Jewelry StoreRead the Press Release
SPRINGFIELD, Mo. – Tammy Dickinson, United States Attorney for the Western District of Missouri, announced that a Joplin, Mo., man was indicted by a federal grand jury today for the armed robbery of a local jewelry store.
Paul Lloyd, 33, of Joplin, was charged in a four-count indictment returned by a federal grand jury in Springfield, Mo.
Today’s indictment alleges that Lloyd stole cash and jewelry from Select Jewelry, 3120 S. Main St., Joplin, at gunpoint on March 17, 2016.
Lloyd is also charged with discharging a firearm during a crime of violence and with being a felon in possession of a firearm and ammunition. The indictment also charges Lloyd with transporting a stolen vehicle, a 2002 Ford Mustang, across state lines from Missouri to Oklahoma.
Lloyd, after driving the stolen Mustang into Oklahoma, was arrested by Cherokee County, Okla., sheriff’s deputies following a pursuit. A loaded SCCY 9mm firearm was recovered next to the driver’s side door of the Mustang.
Dickinson cautioned that the charges contained in this indictment 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 James J. Kelleher. It was investigated by the Joplin, Mo., Police Department, the Cherokee County, Mo., Sheriff’s Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives.
Immigration Attorney Sentenced to Probation for Assisting Alien in Immigation Fraud SchemeRead the Press Release
ATLANTA - Bonnie Monique Youn has been sentenced to two years on probation for her role in submitting a false application to adjust status on behalf of a Korean citizen to the Citizenship and Immigration Services.
“Youn is an immigration attorney and has a thorough familiarity with immigration rules yet she advised an alien to fraudulently file an application with immigration services claiming to be employed by an entity she controlled,” said U. S. Attorney John Horn. “Her sentence and prohibition to practice law for two years are appropriate punishment for submitting false information to United States Immigration authorities.”
“Immigration fraud presents a serious threat to the national security of our country,” said Special Agent in Charge of ICE Homeland Security Investigations Atlanta Nick S. Annan. “Illegal schemes like this not only undermine the integrity of our nation's legal immigration system, but they create potential security vulnerabilities while also cheating deserving immigrants of benefits they rightfully deserve."
According to U.S. Attorney Horn, the charges and other information presented in court: Youn filed an application to adjust status based upon employment on behalf of her client, C.O.M.P. The application stated that C.O.M.P. worked for the Asian American Educational Foundation of Georgia (AAEFG) as an accountant in 2006-07 and again in 2010. The application included wage and tax and payroll records that would appear to support the representation that C.O.M.P. had worked for AAEFG.
In September 2011, federal agents interviewed C.O.M.P. at the hair products business that she and her husband ran near Baton Rouge, Louisiana. C.O.M.P. initially told the agents that she worked for AAEFG in 2006-07 and 2010. As the interview progressed, however, the agents noticed that C.O.M.P., who was standing behind a counter, appeared to be looking down at something before she would answer their questions. When confronted, C.O.M.P. admitted that she was referring to notes that Youn and Youn’s paralegal helped her prepare in the event that she was interviewed by federal agents about her alleged employment at AAEFG. C.O.M.P. admitted that she never worked for AAEFG and that she never lived in Georgia.
She also admitted that she would send money to AAEFG and that AAEFG would in turn send her payroll checks. The false payroll scheme involving C.O.M.P. began when AAEFG was controlled by Youn.
Youn instructed C.O.M.P. to obtain a Georgia driver’s license to use as proof of her residency in the state during the time that she allegedly worked for AAEFG. Although C.O.M.P. never lived in Georgia, she obtained the state driver’s license with the intent to use it to prove that she lived in Georgia and worked at AAEFG in the event she was ever questioned about her alleged employment at AAEFG.
Bonnie Monique Youn, 46, of Tucker, Georgia, was sentenced to two years on probation by U.S. District Judge Amy Totenberg, and was ordered to pay a $5,245 fine. Pursuant to her plea agreement with the United States, Youn closed her law office on March 31, 2016. As part of her sentence, Youn is prohibited from practicing law until April 1, 2018. Youn pleaded guilty on Jan. 20, 2016, to a negotiated plea.
This case was investigated by Special Agents with Homeland Security Investigations and the Office of the Inspector General for the United States Department of Labor.
Assistant United States Attorneys William L. McKinnon, Jr. and Lynsey Barron 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.
Houston Man Sentenced in Conspiracy to Traffic over 13 Kilograms of CocaineRead the Press Release
U.S. Attorney Kenneth Polite announced that MICHAEL MENDEZ of Houston, Texas, age 52, was sentenced today after having previously pled guilty to one count of conspiring to distribute and to possess with intent to distribute five kilograms or more of cocaine hydrochloride (“powder cocaine”).
U.S. District Judge Jay C. Zainey sentenced MENDEZ to 60 months in prison, to be followed by 5 years of supervised release.
According to court records, on June 10, 2015, Louisiana State Police conducted a traffic stop of MENDEZ as he was driving east on Interstate 12 in Tangipahoa Parish. During the stop, police discovered over thirteen kilograms of cocaine hydrochloride hidden inside of a “trap” compartment underneath the body of the car and a loaded 9 millimeter Glock pistol on the front-passenger seat.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration and the Louisiana State Police in investigating this matter. Assistant United States Attorney Brandon S. Long is responsible for the prosecution.
High-Level Member of Large-Scale, $5 Million ATM Skimming Scheme Sentenced to More Than Seven Years in PrisonRead the Press Release
NEWARK, N.J. – A Chicago man was sentenced today to 89 months in prison for his role in a large-scale, long-running, and lucrative scheme to steal bank customer account information – commonly referred to as “ATM skimming” – by installing hidden card-reading devices on ATMs throughout New Jersey, New York, Connecticut, Florida, and elsewhere, U.S. Attorney Paul J. Fishman announced.
Dinu Horvat, 29, was previously convicted on four counts of a superseding indictment – conspiracy to commit bank fraud, aggravated identity theft, conspiracy to possess 15 or more counterfeit access devices, and conspiracy to possess access device-making equipment – following a one-week trial before U.S. District Judge William J. Martini. Judge Martini imposed the sentence today in Newark federal court.
According to documents filed in this case and the evidence at trial:
Horvat was a high-level member of an extensive ATM skimming scheme organized by Marius Vintila, 33, who previously pleaded guilty to bank fraud conspiracy and aggravated identity theft charges. The scheme defrauded Citibank, TD Bank, Wells Fargo, and multiple other financial institutions out of at least $5 million and affected thousands of bank customers.
Vintila and defendant Bogdan Radu, 33, designed and constructed sophisticated card-reader devices and pinhole camera panels capable of reading and storing customers’ bank account information and personal identification numbers. Horvat and his partners then secretly installed the card-reader devices and the pinhole cameras panels onto bank ATMs and removed them a few days later after they had recorded customer bank account information as customers performed routine bank transactions at ATMs.
The stolen data was used to create thousands of false and fraudulent ATM cards, which Horvat and others used to withdraw millions of dollars from customers’ bank accounts. Horvat also recruited others to participate in the scheme.
In addition to the prison term, Judge Martini sentenced Horvat to five years of supervised release and ordered him to pay restitution of $7.4 million.
The ATM skimming operation in which Horvat participated is one of the largest ever uncovered by law enforcement. To date, 13 of the 16 individuals charged in connection with the scheme, including Vintila and Radu, have pleaded guilty.
U.S. Attorney Fishman praised special agents of the U.S. Secret Service, Newark Field Office, under the direction of Acting Special Agent in Charge Jeffrey Wood; special agents of Immigration and Customs Enforcement, Homeland Security Investigations (ICE-HSI) in Newark, under the direction of Special Agent in Charge Terence S. Opiola, with the investigation. He also thanked the Barnegat Township Police Department and the Brick Township Police Department for their participation in the case.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal and David M. Eskew of the U.S. Attorney’s Office Criminal Division in Newark.
Defense Counsel: E. Alexander Jardines Esq., West New York, New Jersey
Guilty Plea in Scheme to Steal & Use Personal Identifying Information from ATMsRead the Press Release
PROVIDENCE, R.I. – Moises Morales Cano, 31, of Astoria, N.Y., pleaded guilty in federal court in Providence, R.I., today to conspiracy to commit bank fraud and aggravated identity theft, admitting to his role in a scheme to manipulate bank ATM machines. The scheme resulted in the theft of personal information skimmed from debit cards belonging to more than 1,300 individuals and the loss of more than $709,000.
Appearing before U.S. District Court Judge John J. McConnell, Jr., Moises Morales Cano admitted to the court that between January 1 and April 4, 2015, he conspired with another individual to attach skimming devices on ATMs at banks in several communities in Rhode Island and Connecticut. According to information presented to the court, approximately 1,329 individuals had their debit cards compromised resulting in a total loss of approximately $709,597.50.
An ATM skimming device is a technology that directly attaches to an ATM in order to intercept unknowing customers’ debit card information from the magnetic strip on ATM cards. The stolen information and PINs are downloaded and re-encoded onto counterfeit debit cards. The counterfeit debit cards are used to make fraudulent transactions from the accounts of unknowing victims.
Cano’s guilty plea is announced by United States Attorney Peter F. Neronha, Ted A. Arruda, Resident Agent in Charge of the Providence office of the U.S. Secret Service, and Warwick Police Chief Colonel Stephen M. McCartney.
Cano has been detained in federal custody since his arrest in Queens, N.Y., on September 9, 2015. He is scheduled to be sentenced on July 20, 2016.
The case is being prosecuted by Assistant U.S. Attorney Lee H. Vilker.
The matter was investigated by the United States Attorney’s Office, the U.S. Secret Service, and the Warwick Police Department, with the assistance of the Smithfield, East Providence, Cranston, and Johnston Police Departments.
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Contact:
Jim Martin (401) 709-5357
email: [email protected]
on Twitter @USAO_RI
Greensburg Man Charged with Using Cell Phone to Coerce a Minor to Have SexRead the Press Release
PITTSBURGH - A resident of Westmoreland County has been indicted by a federal grand jury in Pittsburgh on a charge of attempted coercion and enticement of a minor to engage in illegal sexual activity, United States Attorney David J. Hickton announced today.
The one-count indictment named Robert Franzino, 60, of Greensburg, Pennsylvania, as the sole defendant.
According to the indictment, from Sept. 9, 2015 and continuing thereafter until March 13, 2016, Franzino used facilities and means of interstate and foreign commerce, specifically an Android cellular phone to knowingly attempt to persuade, induce, entice, and coerce a minor to engage in sexual activity.
The law provides for a maximum total sentence of life in prison, a fine of $750,000.00, or both. Under the Federal Sentencing Guidelines, the actual sentence imposed would be based upon the seriousness of the offenses and the prior criminal history, if any, of the defendant.
Assistant United States Attorney Jessica Lieber Smolar is prosecuting this case on behalf of the government.
The Greensburg Police Department conducted the investigation leading to the indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
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.
Gang Member Sentenced to 35 Years in Prison for RICO ConspiracyRead the Press Release
NEWPORT NEWS, Va. – Robbie Bowles, 30, of Newport News, was sentenced today to 300 months in prison for various violent crime and drug offenses. Bowles’ sentence will run consecutive to a 120 month sentence on an earlier federal firearms conviction.
Bowles pleaded guilty on Nov. 16, 2015. According to court documents, Bowles was a member of the Newport News street gang Thug Relations, which engaged in the distribution of marijuana and crack cocaine. The gang established dominance over the drug trade in its territory through violence and intimidation, which included physical assaults, home invasions, and numerous shootings, some of which resulted in murders. In particular, Bowles admitted threatening victim Aaron Sumler because Sumler and a friend had allegedly been selling cocaine in the area of Aqueduct Apartments, which was part of Thug Relations territory. When those threats went unheeded, Bowles was involved in Sumler’s murder. In addition, Bowles participated in a home invasion robbery of a rival drug dealer, during which one of the victims was struck in the head with a firearm. Bowles also participated in three separate shootings of rival gang members, causing each victim serious bodily injury.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, and John S. Adams, Special Agent in Charge of the FBI’s Norfolk Field Office, made the announcement after sentencing by U.S. District Judge Raymond A. Jackson. Assistant U.S. Attorneys Howard J. Zlotnick, Lisa R. McKeel, Brian Samuels, and Trial Attorney Yvonne L. Garcia of the Criminal Division’s Organized Crime and Gang Section 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. 4:14-cr-59.
Gainesville Physician Convicted of 162 Counts of Health Care FraudRead the Press Release
GAINESVILLE, FLORIDA – At the conclusion of a five-week jury trial, Ona M. Colasante, 59, a physician from Gainesville, Florida, was convicted yesterday of 162 counts of health care fraud. The verdict was announced by Christopher P. Canova, United States Attorney for the Northern District of Florida.
Colasante owned and operated medical businesses known as the Hawthorne Medical Center in Hawthorne, Florida, between 1998 and March 2009, and the Colasante Clinic in Gainesville, Florida, between January 2010 and January 2013. Through these businesses, Colasante defrauded Medicare, Medicaid, and Blue Cross Blue Shield of Florida through a series of false billing schemes. At trial, the government presented evidence that Colasante, and employees acting at her direction, ordered non-FDA approved drugs at a drastically reduced price, administered them to unsuspecting patients, and then fraudulently billed insurance companies for the cost of FDA-approved drugs. The evidence showed that Colasante also billed insurance companies for medically unnecessary tests and submitted false diagnosis codes in support of her fraudulent claims for reimbursement.
In addition, Colasante billed insurance companies for counseling, treatment, and training that was never performed. Her businesses repeatedly submitted fraudulent billings for smoking-cessation treatment purportedly administered to patients who were non-smokers.
Colasante faces up to 10 years’ imprisonment on each of the counts of conviction. Sentencing is scheduled for July 25, 2016, at 10:00 a.m. at the United States Courthouse in Gainesville, Florida.
United States Attorney Canova praised the work of the Department of Health and Human Services Office of Inspector General, the Federal Bureau of Investigation, the Florida Attorney General’s Medicaid Fraud Control Unit, and the United States Food and Drug Administration, whose joint investigation led to the convictions in this case.
The case was prosecuted by Assistant United States Attorneys Tiffany H. Eggers and Ryan J. Love.
“Health care programs and patients depend on ethical practices from medical providers,” said United States Attorney Canova. “I commend the diligent investigators and prosecutors who uphold our federal laws and bring to justice those who abuse their positions of trust.”
“The Medicare system relies on doctors to diagnose and treat beneficiaries,” stated Shimon Richmond, Special Agent in Charge of the Department of Health and Human Services Office of Inspector General. “When doctors intentionally misdiagnose patients, perform unnecessary tests and procedures, and use non-FDA approved drugs and devices on patients for personal gain, they betray the trust of the Medicare system and the patients themselves.”
“This case is the result of coordination between multiple federal and state law enforcement agencies, working together to protect the American health care system. Crimes committed through fraudulent and excessive claims are not victimless; Americans everywhere absorb the costs of those schemes through higher insurance costs and medical bills. The FBI and their law enforcement partners will vigilantly identify those engaging in similar conduct and advocate for their prosecution,” said Michelle S. Klimt, Special Agent in Charge, FBI Jacksonville Division.
"The FDA's requirements for approving new drug applications are designed to ensure the safety, efficacy and quality of drugs distributed to American consumers," said Robert J. West, Special Agent in Charge of the FDA’s Office of Criminal Investigations’ Miami Field Office. "The FDA will continue to aggressively pursue those who place the public health at risk by distributing foreign unapproved prescription drugs of unknown origin and ingredients instead of FDA-approved drugs."
The United States Attorney's Office for the Northern District of Florida is one of 94 offices that serve as the nation’s principal litigators under the direction of the Attorney General. For more information about the United States Attorney’s Office, Northern District of Florida, visit http://www.justice.gov/usao/fln/index.html.
For more information, contact: Amy Alexander, Public Information Officer
(850) 216-3854, [email protected]Former Postal Worker Sentenced to Prison for Workers’ Comp FraudRead the Press Release
NORFOLK, Va. – Ronald Henderson, 58, of Lewiston, North Carolina, was sentenced today to 13 months in prison for Federal Employees’ Compensation Fraud. He was also ordered to pay $163,956.23 in restitution to the Department of Labor.
Henderson pleaded guilty on Dec. 2, 2015. According to court documents, on June 11, 2011, Henderson falsely claimed to have injured his shoulder while performing his duties as a mail carrier in Suffolk. The injury had actually occurred previously while off-duty. In addition to receiving compensation as a result of the false disability claim, Henderson filed hundreds of false travel claims seeking reimbursement for expenses related to obtaining medical treatment. He also failed to notify the Department of Labor after he returned to work and was able to unlawfully
“double-dip” by receiving workers’ compensation payments and his normal paycheck at the same time.Dana J. Boente, U.S. Attorney for the Eastern District of Virginia, made the announcement after sentencing by Chief U.S. District Judge Rebecca Beach Smith. Assistant U.S. Attorney Randy Stoker 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. 2:15-cr-120.
Former New York State Assembly Speaker Sheldon Silver Sentenced in Manhattan Federal Court to 12 Years in PrisonRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that former New York State Assembly Speaker SHELDON SILVER was sentenced this afternoon to 12 years in prison after having been found guilty by a federal jury of using his official position to obtain nearly $4 million in bribes and kickbacks in exchange for his official acts and obtaining another $1 million through laundering the proceeds of his crimes. SILVER was sentenced in Manhattan federal court by U.S. District Judge Valerie E. Caproni who also presided over the five-week jury trial.
U.S. Attorney Preet Bharara said: “Today’s stiff sentence is a just and fitting end to Sheldon Silver’s long career of corruption.”
According to the evidence introduced at trial, court filings, and statements made in Manhattan federal court:
For more than two decades, SHELDON SILVER served as Speaker of the New York State Assembly, a position that gave him significant power over the operation of state government. SILVER used this immense power – including, in particular, his power over the real estate industry and his control over certain health care funding – to unlawfully and corruptly enrich himself. Among other things, he unlawfully solicited and obtained client referrals worth millions of dollars in exchange for SILVER’s official acts, and attempting to disguise this money as legitimate outside income earned from his work as a private lawyer. In particular, SILVER claimed on financial disclosure forms required to be filed with New York State and in public statements that the millions of dollars he received in outside income while also serving as Speaker of the Assembly came from a Manhattan-based law firm, Weitz & Luxenberg P.C., where SILVER claimed to work representing individual clients in personal injury actions. These claims were materially false and misleading – and made to cover up unlawful payments SILVER received solely due to his official power and influence as an elected legislator and the Speaker of the Assembly.
The scheme provided SILVER with two different streams of unlawful income: (i) approximately $700,000 in kickbacks SILVER received by steering two real estate developers with business before the state legislature to a law firm with which he was associated, and (ii) more than $3 million in asbestos client referral fees SILVER received by, among other official acts, awarding $500,000 in state grants to a university research center of a physician who referred patients made ill by asbestos to SILVER at Weitz & Luxenberg.
Unlawful Income From the Real Estate Law Firm
SILVER entered into a corrupt relationship with Goldberg & Iryami, which specialized in making applications to New York City to reduce taxes assessed on properties. Beginning in at least 2000, SILVER approached two prominent developers of properties in Manhattan, Glenwood Management Corp. and The Witkoff Group, Inc., and asked them to hire Goldberg & Iryami. The developers – both of whom lobbied SILVER on real estate issues because their businesses depended heavily on favorable state legislation – agreed to use Goldberg & Iryami as SILVER had requested. Over the years, Witkoff and Glenwood Management, in particular, paid millions of dollars in legal fees to Goldberg & Iryami. SILVER received a cut from the legal fees amounting to nearly $700,000. SILVER had no public affiliation with Goldberg & Iryami and performed no legal work at all to earn those fees, which were simply payments for SILVER having arranged the business through his official power and influence.
While continuing to receive the fees and in furtherance of the scheme, SILVER took official action beneficial to Glenwood Management and Witkoff. For example, while SILVER was publicly associated with advocating for tenants, a proposal that benefitted Glenwood Management was in substantial part enacted in real estate legislation in 2011 with SILVER’s support.
Unlawful Income From Asbestos Client Referrals
SILVER also entered into a corrupt arrangement with Dr. Robert Taub, who was a leading physician specializing in the treatment of asbestos-related diseases, through which SILVER issued state grants and otherwise used his official position to provide favors to Dr. Taub so that Dr. Taub would refer and continue to refer his patients to SILVER at Weitz & Luxenberg, a firm with which SILVER was affiliated as counsel. Specifically, SILVER arranged for New York State to fund two grants – each for $250,000, and paid out of a secret and un-itemized pool of funds controlled entirely by SILVER – for a research center Dr. Taub had established. SILVER used his official position to provide Dr. Taub with other benefits as well, including helping to direct $25,000 in state funds to a not-for-profit organization for which one of Dr. Taub’s family members served on the board, and asking the CEO of a second not-for-profit to hire a second family member of Dr. Taub’s.
From 2002 to the present, SILVER received more than $3 million from legal fees Weitz & Luxenberg received from patients Dr. Taub had referred to SILVER at the firm while SILVER was taking official actions to benefit Dr. Taub. SILVER did no legal work whatsoever on these asbestos cases, his sole role having been to use his official position and access to state funds to induce Dr. Taub to provide him with these lucrative referrals.
Silver’s Efforts to Cover Up the Scheme
SILVER took various efforts to disguise his unlawful outside income and prevent the detection of his criminal scheme. SILVER listed on his official public disclosure forms that his outside income consisted of “limited practice of law in the principal subject area of personal injury claims on behalf of individual clients,” which was false and misleading. Beginning in 2010, SILVER’s disclosures changed to state that the source of his legal income was a “Law Practice” that “includ[ed]” being of counsel to Weitz & Luxenberg. SILVER never disclosed his relationship with Goldberg & Iryami or any work beyond what he claimed was a “personal injury” practice.
SILVER also repeatedly made false statements about his outside income in his public statements, including the following:
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SILVER claimed he performed legal work consisting of spending several hours each week evaluating legal matters brought to him by potential clients and then referring cases that appeared to have merit to lawyers at Weitz & Luxenberg.In fact, SILVER did no such work on the asbestos cases and obtained those referrals to Weitz & Luxenberg based on his corrupt arrangement with Dr. Taub.
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SILVER claimed his law practice involved the representation of “plain, ordinary simple people.”In fact, SILVER represented some of the largest real estate developers in the state, for whom favorable state legislation was critical to their business interests.
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SILVER claimed through his spokesperson that SILVER found clients by virtue of his having been a “lawyer for more than 40 years,” in a manner that was “not unlike any other attorney in this state, anywhere.” In fact, SILVER found his lucrative asbestos and real estate developer clients solely by virtue of his official position.
- SILVER stated through his spokesperson that “[n]one of his clients have any business before the state.” In fact, SILVER’s outside income included millions of dollars of fees obtained through Glenwood and Witkoff, both of which had significant business before the state, and Dr. Taub, to whose benefit SILVER provided state funding and other benefits related to SILVER’s official position.
In addition, SILVER thwarted the Moreland Commission to Investigate Public Corruption so that it would not learn of his illegal outside income, first by filing legal motions on behalf of the Assembly and taking other action to block the Moreland Commission’s investigation into legislators’ outside income.
Finally, SILVER laundered part of crime proceeds through private investment vehicles that yielded him another $1 million in ill-gotten gains.
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In addition to the prison sentence, Judge Caproni ordered SHELDON SILVER, 72, of New York, New York, to pay a $1.75 million fine, forfeit $5.3 million, and pay a $700 special assessment fee. SILVER also was sentenced to two years of supervised release. The Government had sought a fine above the Sentencing Guidelines level in light of the taxpayer-funded pension that Silver will received for the rest of his life, despite having been convicted of federal corruption offenses. In imposing the fine, Judge Caproni took into account Silver’s pension.
SILVER was found guilty by a unanimous jury on November 30, 2015, of two counts of honest services wire fraud, two counts of honest services mail fraud, two counts of extortion under color of official right, and one count of engaging in illegal monetary transactions.
U.S. Attorney Bharara praised the work of the Criminal Investigators of the United States Attorney’s Office and the Federal Bureau of Investigation, who jointly conducted this investigation.
This case was prosecuted by the Office’s Public Corruption Unit. Assistant U.S. Attorneys Carrie H. Cohen, Howard S. Master, Andrew D. Goldstein, and James McDonald are in charge of the prosecution.
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Former Mayor of Clinchco Pleads Guilty to Federal Fraud ChargesRead the Press Release
ABINGDON, VIRGINIA – The former mayor of Clinchco, Virginia in Dickenson County, pled guilty today in Federal Court to fraud charges stemming from her use of town funds used to make improvements and repairs to her personal home while she was Mayor, United States Attorney John P. Fishwick Jr. announced.
Peggy Sue Stanley Mickens, 50, of Clinchco, Virginia, pled guilty today to one count of theft concerning programs receiving Federal funds, one count of mail fraud and one count of wire fraud.
“This defendant misused her position of public trust for her own personal benefit,” United States Attorney John P. Fishwick Jr. said today. “We will continue to look into all manners of public corruption and prosecute those who misuse public money for their own benefit.”
According to evidence presented at previous hearings by Russell County Commonwealth’s Attorney and Special Assistant United States Attorney Brian Patton, Mickens was elected Mayor of Clinchco in May 2012, at which time she gained access to, and possession of the town’s banking instrument, credit cards, invoices and banking statements.
In 2013, Clinchco received approximately $20,000 from the Department of Housing and Urban Development [HUD] via a Community Development Block Grant, to be used to rehabilitate homes and/or construct new homes in the town.
Mickens admitted today that, without any type of procurement formalities or approval she hired a contractor to remodel her home and paid for it from the town’s BB&T bank account via a checks signed by Peggy Sue Stanley Mickens.
The defendant took these actions without the knowledge or consent of town officials.
Mickens also admitted today to using a Lowe’s credit card maintained by the Town of Clinchco on August 26, 2013. The defendant admitted to using the town’s credit card, without the knowledge or consent of town officials, to charge $662 from the Lowe’s store in Wise, Virginia to obtain materials for her personal home.
The investigation of the case was conducted by Federal Bureau of Investigation and the Virginia State Police. Russell County Commonwealth’s Attorney and Special Assistant United States Attorney Brian Patton prosecuted the case for the United States.
Former Letter Carrier Pleads Guilty in Scheme to Steal and Cash Hundreds of Postal Money OrdersRead the Press Release
NEWARK, N.J. – A Little Egg Harbor, New Jersey, man today admitted his role in a scheme to steal and convert hundreds of blank U.S. Postal Service money orders, resulting in nearly $200,000 in losses, U.S. Attorney Paul J. Fishman announced.
Jonel Normil, 26, pleaded guilty before U.S. District Judge Madeline Cox Arleo to an information charging him with one count of conspiring to embezzle, convert to his use and the use of others U.S. Postal Service money orders.
According to the documents filed in this case, other cases, and statements made in court:
Normil was employed as a letter carrier with the U.S. Postal Service in Cape May Court House, New Jersey. He also picked up and dropped off mail at the U.S. Post Office in Stone Harbor, New Jersey.
Normil admitted that he used his position as a letter carrier to steal hundreds of U.S. Postal Service money orders from the Stone Harbor and Cape May Court House post offices. Normil gave the stolen money orders to other conspirators, who made them look legitimate and imprinted them with dollar values of $900 or $1,000 before depositing them into bank accounts or cashing them at post offices in New Jersey, New York, and Georgia.
The charge for conspiring to embezzle, steal, and convert blank U.S. Postal Service money orders carries a maximum penalty of five years in prison and $250,000 fine. As part of his plea agreement, Normil agreed to the entry of a forfeiture order against him in the amount of approximately $181,000, which represents the approximate losses to financial institutions and the U.S. Postal Service resulting from the scheme. His sentencing is scheduled for Aug. 16, 2016.
U.S. Attorney Fishman credited special agents of the U.S. Postal Service, Office of the Inspector General, under the direction of Executive Special Agent in Charge Monica Weyler of the Eastern Area Field Office, and the U.S. Postal Inspection Service, under the direction of Inspector in Charge David W. Bosch, Philadelphia Division, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Rahul Agarwal of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: H. Robert Boney Esq., Mays Landing, New Jersey
Former Enterprise Used Car Sales Manager in San Antonio Sentenced to Federal Prison in Fraud SchemeRead the Press Release
In San Antonio today, 37-year-old Jamie Dawn McCord of Universal City, TX, was sentenced to one year and one day in federal prison for embezzling over $200,000 from her former employer, Enterprise Holdings, announced United States Attorney Richard Durbin, Jr., and FBI Special Agent in Charge Christopher Combs, San Antonio Division.
In addition to the prison term, United States District Judge Xavier Rodriguez ordered that McCord pay $209,041.08 restitution to Enterprise Holdings and be placed on supervised release for a period of three years after completing her prison term.
On October 6, 2015, McCord, former San Antonio Area Sales Manager over used car sales for Enterprise, pleaded guilty to two counts of wire fraud. By pleading guilty, McCord admitted that between January 2007 and September 2014, she manipulated company records and provided false information to Enterprise officials in Texas and Missouri to hide the fact that she embezzled cash down payments from customers purchasing Enterprise vehicles in San Antonio.
This investigation was conducted by the FBI. Assistant United States Attorney Greg Surovic prosecuted this case on behalf of the Government.
Former DEA Agent Pleads Guilty to Tax Evasion and Witness TamperingRead the Press Release
Tampa, Florida – United States Attorney A. Lee Bentley, III announces that Samuel Murad (62, Clearwater) has pleaded guilty to tax evasion and witness tampering. He faces a maximum penalty of 5 years’ imprisonment for the tax evasion count and up to 20 years in federal prison for the witness tampering count. His sentencing hearing has been set for August 4, 2016.
According to the plea agreement, in the mid-1990’s, while working as a DEA Special Agent, Murad served as the case agent in an investigation of a marijuana importation conspiracy. One of the participants in that conspiracy, J.P., was convicted and sentenced to 30 years in prison.
Around 2009, after Murad had retired from the DEA, J.P.’s attorney hired Murad to assist with their effort to obtain a reduction in J.P.’s prison sentence. Because Murad was the former case agent in this investigation, he was prohibited by federal law from being physically present in any formal or informal setting on behalf of J.P., to include meeting with an employee of DEA, or appearing on behalf of J.P. before a judge. DEA’s Office of Professional Responsibility also advised Murad that he could not communicate with the government on behalf of J.P. with the intent to influence the government.
Around this time, J.P.’s attorney met with DEA Special Agent Robert Joseph Quinn about plans to initiate an effort to obtain a sentence reduction for J.P. During their meeting, J.P.’s attorney informed Agent Quinn that Murad — a friend and former colleague of Quinn — was involved in the effort to reduce J.P.’s prison sentence. After this meeting, Agent Quinn contacted Murad about the sentence reduction effort. During their conversation, Murad asked Agent Quinn to handle, on the DEA end, the effort to obtain a sentence reduction for J.P. Agent Quinn then communicated with representatives from the U.S. Attorney’s Office to explore the possibility of obtaining the sentence reduction.
In June 2012, once arrests had been made related to J.P.’s cooperation efforts, Murad became frustrated at the prospect of not getting paid for his involvement in the J.P. matter. Murad sent a series of emails to J.P.’s brother demanding large sums of money to stay involved. In one email, Murad asked for $700,000 and said, “if we can’t come [to] some kind of understanding, then you guys get to keep your money and [J.P.] stays in jail because good luck getting him out without my testimony.” In a subsequent meeting with J.P.’s brother, Murad demanded $750,000 to stay involved in the matter. Ultimately, J.P.’s brother agreed to pay Murad $500,000 in cash.
On Friday, August 17, 2012, J.P.’s brother handed Murad a shopping bag containing $223,000 in cash. During this meeting, Murad asked J.P.’s brother how much money he had in his wallet. J.P.’s brother showed Murad that he had $800 in his wallet; Murad took that money and added it to the shopping bag full of cash. Murad also told J.P.’s brother to tell J.P. to “shut up” on the prison telephone. Although Murad did not tell J.P.’s brother why he gave this instruction, Murad knew that J.P.’s jail calls were being monitored by law enforcement.
After this meeting, Murad told Agent Quinn that he had received over $200,000 in cash from J.P.’s brother and had put it in a safe deposit box. Murad laughed that he had to get a larger safe deposit box because there was so much cash. Murad never paid taxes on the $223,800 he received from J.P.’s brother.
The FBI then began investigating the effort to obtain a sentence reduction for J.P. In an interview on November 22, 2013, Agent Quinn lied about Murad not receiving any money, other than expenses, for his work on the J.P. matter. After his interview with the FBI, Murad met with Agent Quinn and directed Quinn not to talk to the FBI. Murad attempted to corruptly persuade Agent Quinn not to provide the FBI with information about the $223,800 cash payment and Murad’s concealment of those funds in the safe deposit box.
On February 13, 2014, the FBI executed a search warrant on Murad’s safe deposit box and seized $73,420. Pursuant to a seizure warrant, the FBI also seized $60,139.03 from Murad’s checking account. The day after the search, Murad met with Quinn (who had retired from the DEA) and accused him of saying too much to the FBI, which Quinn denied. Murad, again, instructed Quinn not to talk to the FBI any further. Two months later, in his second interview with the FBI, Quinn lied again about Murad not getting paid by J.P.’s family. After being confronted by the FBI, Quinn ultimately told the truth.
Quinn previously pleaded guilty for his role in this case. His sentencing hearing has been set for May 11, 2016.
This case was investigated by Federal Bureau of Investigation. It is being prosecuted by Assistant United States Attorneys Simon Gaugush and Josephine Thomas.
Former CEO of Pharmacy Dispensing Service Admits to Federal Tax ChargeRead the Press Release
NEWARK, N.J. – The former chief executive officer of a company that provided pharmacy dispensing services today admitted to filing a false federal income tax return, U.S. Attorney Paul J. Fishman announced.
Gary J. Sekulski, 68, of Flanders, New Jersey, pleaded guilty before U.S. District Judge Katharine S. Hayden to Count 3 of an indictment charging him with filing a false federal income tax return for tax year 2009.
According to documents filed in this case and statements made in court:
Sekulski was the CEO and President of Healthcare Corporation of America (HCA), a New Jersey company that controlled a pharmacy dispensing service to public and non-profit entities. Sekulski admitted that for tax year 2009, received approximately $172,000 from HCA that he willfully failed to report on his federal income tax return. Sekulski admitted that he prepared this return himself, signed it under penalty of perjury, and caused it to be filed with the IRS knowing that it falsely reported his income. He admitted that he intentionally filed materially false federal income tax returns with the IRS for the 2007 and 2008 tax years. In all, Sekulski failed to report approximately $353,000 in taxable income.
The tax count to which Sekulski pleaded guilty carries a maximum potential penalty of three years in prison and a fine of $250,000 or twice the amount of pecuniary gain or loss from the offense. Sentencing is scheduled for Sept. 8, 2016.
U.S. Attorney Fishman credited special agents of IRS – Criminal Investigation, under the direction of Special Agent in Charge Jonathan D. Larsen; and special agents of the FBI, under the direction of Special Agent in Charge Timothy Gallagher, for the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorneys Lee M. Cortes Jr. and Shirley U. Emehelu, of the U.S. Attorney’s Office Special Prosecutions Division in Newark.
Defense counsel: William C. Cagney Esq., New Brunswick, New Jersey
Foreign Lottery Scams Continue to Target Idaho ResidentsRead the Press Release
BOISE – The United States Attorney’s Office and US Postal Inspectors have seen a recent uptick of sweepstakes fraud victims in Southeastern Idaho, to include the Pocatello, Montpelier and Preston areas. Inspectors’ last trip through the area to speak to victims discovered losses of over $70,000 due to foreign lottery scams.
Who Are Postal Inspectors?
The US Postal Inspection Service (USPIS) is the law enforcement, crime prevention and security arm of the US Postal Service (USPS), and is responsible for enforcing more than 200 federal laws in investigations of crimes that may adversely affect or fraudulently use the US Mail, the postal system or postal employees. Postal Inspectors are federal law enforcement agents who conduct investigations of postal-related crime, such as mail fraud and theft, violent crimes against postal employees, revenue fraud, dangerous mail, illegal drugs in the mail, and child exploitation conducted via the mail.
Foreign Lotteries Are Illegal!
Federal law (18 USC 1302) prohibits mailing any ticket, share or chance in a foreign lottery. If you respond to a solicitation, your name will be forwarded to a mailing list used by scammers. You will continue to receive solicitations.
What is a Foreign Lottery Scam and How Does it Typically Work?
Typically, this is how the sweepstakes scheme begins: You receive an offer by mail to enter a sweepstakes, claiming you could win a car, computer, a vacation or lots of money. You fill out the questionnaire and include your contact information, and mail it back to the address provided. Soon thereafter, you receive a phone call, email or mail stating you’ve won a cash sweepstakes/lottery and perhaps even a car.
However, in order to claim the prize, you need to send payment for taxes, processing, legal or customs fees. The payment is usually requested to be mailed to another US address, Jamaica/foreign country or wired to another person in the US or to another country.
The fraudsters gain victims’ trust through frequent phone conversations. Many victims tend to be older Americans, who are generally polite and trusting. Some are lonely, and enjoy the personal contact with someone they believe to be a “friend.” They have a hard time believing they’ve fallen for a scam, but these crooks are relentless and demanding. They may even threaten, coerce and use psychological intimidation to make victims give up their money.
How Can You Recognize an Illegal Foreign Lottery?
● Scammers mail letters to confirm victims’ winnings. Victims may be solicited via the mail.
● Victims are solicited by phone through heavy-handed marketing tactics and incessant calls.
● Victims are asked to pay fees, duties or taxes before they can collect their winnings.
● Once a victim responds to a solicitation, the scammer continues to contact them, asking for additional payments and promising even greater winnings.
● Scammers from other countries, such as Jamaica, Nigeria, Holland, Canada and the Philippines, target US victims.
● Scammers from overseas use Voice over Internet Protocol (VoIP) devices allowing them to disguise their international number and make it appear as if it were a domestic call coming from a US area code.
● Victims are typically asked to mail cash or wire money via Western Union or MoneyGram overseas.
● Recipients of cash payments are either co-conspirators, foreign nationals residing in the US or other victims who have become unknowing participants.
Improve Your Odds
Older Americans are often targeted by scammers. Speak with your older loved ones about the consequences of foreign lottery scams. A few protective- measures taken with their consent, and a simple conversation about avoiding scams could be the key to preserving their financial well-being.
● Confirm frequent unknown domestic or international calls
● Monitor all accounts for unusual activity
● Identify unknown and recurring payments
● Discuss repeated wire-transfer patterns of checks made out to cash
● Take notice of stacks of sweepstakes offers or prize notification letters around the home
● Talk about changes in living conditions-living beneath one’s means, past-due bills, etc.
● Do not answer the phone. It may be best to change your phone number.
You can report fraud online at postalinspectors.uspis.gov or get a copy of Form 8165, Mail Fraud Report, at your local Post Office. You can also file a complaint by calling 877-876-2455 (option 4).
Florida Man Pleads Guilty to Federal False Statements and Aggravated Identity Theft Charges in New MexicoRead the Press Release
ALBUQUERQUE – Clinton William Yetter, 50, of Gainesville, Fla., pleaded guilty yesterday in Albuquerque, N.M, federal court to false statements and aggravated identity theft charges.
Yetter was charged in a four-count indictment filed on May 29, 2013, with two counts of making false statements and two counts of identity fraud. The indictment alleged that Yetter made the false statements on Oct. 4, 2011 and May 2, 2012, in Bernalillo County, N.M., when applying for U.S. passports. It also alleged that Yetter used the name of another person in making the applications.
During yesterday’s change of plea hearing, Yetter pled guilty to the indictment without the benefit of a plea agreement. Yetter is in federal custody and will remain detained pending his sentencing hearing, which has yet to be scheduled.
At sentencing, Yetter faces a statutory maximum penalty of five years in prison on each of the false statements charges. He faces a mandatory two-year prison sentence on the identity theft charges, which must be served consecutive to any prison sentence imposed on the false statements charges.
This case was investigated by the U.S. Department of State, Diplomatic Security Service and is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
Federal Jury Convicts Final Conspirator in $278 Million Investment Fraud SchemeRead the Press Release
Baltimore, Maryland – A federal jury convicted Richard Shusterman, age 53, of Highland Beach, Florida late on May 2, 2016, of conspiring to commit wire fraud and nine counts of wire fraud in connection with a complex scheme to defraud investors and lenders of $278 million by selling fraudulent investment portfolios of debts purportedly owed by hospital patients. U.S. District Judge James K. Bredar detained Shusterman pending a detention hearing scheduled for today at 11:00 a.m. Shusterman is the fourth and final conspirator to be convicted in the scheme.
The conviction 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; and Special Agent in Charge Andre R. Watson of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI).
“Richard Shusterman and his co-conspirators perpetrated a brazen and complex Ponzi scheme that defrauded investors of more than $278 million,” said U.S. Attorney Rod J. Rosenstein. “The conspirators pretended that they were repaying investors with revenue earned by collecting debts, but they were really using the money of new victims to repay previous investors.”
According to trial evidence, Shusterman was a shareholder and president of International Portfolio, Inc. (IPI), located in Pennsylvania. Co-conspirator Robert Feldman was part owner of IPI, and president of United Consulting, Inc. Shusterman and Feldman represented that IPI had experience in the purchase, valuation, collection and resale of medical accounts receivable, comprising of past due patient accounts which the hospitals and other entities selling the accounts had been unsuccessful in collecting. Beginning on June 21, 2006, Shusterman and Feldman, through United Consulting and IPI, bought and sold consumer debt, including medical debt portfolios. From December 2006 through June 2008, IPI paid more than $25 million to purchase over $4.1 billion in medical accounts receivable, comprising more than 3,872,514 past due patient accounts.
Jonathan Rosenberg and Douglas Kuber operated Account Receivable Services, LLC (ARS) in New York, New York. They agreed to promote the sale of IPI debt portfolio. Pursuant to their agreement, Shusterman, through IPI, bundled the past due patient accounts from IPI’s inventory into investment portfolios, and then sold the portfolios to ARS at a discounted rate. ARS’s purchases of the medical debt portfolios from IPI came from investors who agreed to lend money to ARS on a fixed-term basis in return for a high, fixed interest rate. Shusterman and IPI agreed to manage the collection activity for each debt portfolio that IPI sold. Any funds collected by IPI were to be forwarded to escrow accounts opened and maintained by ARS, which, in turn, would use the funds to cover the periodic interest payments and outstanding balances owed to the investors.
Fraudulent Inflation of Purchase Prices for IPI Debt Portfolios to Obtain Larger Investor Loans
Rosenberg and Kuber misrepresented to investors that a loan secured by IPI debt portfolios would not be used to pay up-front fees and commissions associated with the investment offering. In fact, however, ARS and IPI devised an elaborate process involving the use of multiple escrow accounts and independent accountants to feign a transparent tracking of the deposit of the loan proceeds, the revenue from collection activity, the repayment of interest, and the sale of portfolios. Funds to pay a 5% to 10% fee would come from the investor’s loan proceeds. Pursuant to this undisclosed fee arrangement, ARS and IPI would agree to a concealed purchase price for a debt portfolio. Then they would tell the investor that the portfolio price was 5% to 10% higher than the concealed price.
Shusterman agreed to kickback the loan proceeds in excess of the true purchase prices to Rosenberg and Kuber. The kickbacks were characterized as a refund or a rebate. In so doing, ARS and IPI avoided the intricate escrow arrangement they had created to convince investors to finance the joint venture. From June 2007 to March 2009, Shusterman paid Kuber and Rosenberg kickbacks totaling in excess of $8 million.
In reliance on those misrepresentations, investors provided loans to ARS of approximately $145 million to purchase IPI debt portfolios, which IPI managed. Other investors purchased approximately $122,500,000 worth of IPI debt portfolios, which IPI also managed.
Fraudulent Inflation of Collection Results
In order to induce existing investors to maintain and increase their participation in the investment scheme and to persuade new investors to join, ARS and IPI falsely represented the amount of income being generated from the collection activity for the medical debt portfolios. It became apparent almost from the start that collections were significantly inadequate, not only in their failure to cover periodic interest payments that ARS owed its investors, but also to repay the investors’ principal.
Shusterman and Rosenberg agreed that IPI would advance ARS the money needed to make ARS’s periodic interest payments to the investors. From July 2008 to December 2009, and without the investors’ knowledge, Shusterman and his conspirators wired approximately 209 advances from IPI into the bank accounts of the ARS debt portfolios, which were subsequently used to pay periodic interest payments due to an investor and/or inflate the collection history of the respective investor debt portfolios. Misleading collection reports were created to deceive the investors.
After their plan to subsidize ARS with monthly advances was implemented, an investor was induced to fund the purchase of 12 more portfolios between July and November 2008, totaling approximately $65 million in new investments. Another investor representative living in West River, Maryland was induced to fund the purchase of a portfolio on November 8, 2008 for $10 million, and another portfolio on May 26, 2009 for $5 million.
To conceal poor collection results and artificial resale prices for IPI debt portfolios, and to assure a continuing flow of new funding into the investment scheme, Shusterman and his conspirators continued to solicit existing and prospective investors to purchase or finance IPI debt portfolios. In so doing, they fraudulently used new investor funds to make interest and resale payments in order to meet the investment benchmarks of prior investors.
As a result of the scheme, the loss to investors was $278 million.
Shusterman faces a maximum sentence of 20 years in prison. Judge Bredar scheduled his sentencing for October 11, 2016, at 11:00 a.m.
New Jersey residents Robert Feldman, age 68, of Beach Haven; Jonathan E. Rosenberg, age 47, of West Orange; and Douglas A. Kuber, age 55, of Livingston, previously pleaded guilty to their participation in the conspiracy and face a maximum sentence of 20 years in prison. Feldman, Rosenberg and Kuber are scheduled to be sentenced on June 2, 14 and 30, 2016, respectively.
Today’s announcement is part of the efforts undertaken in connection with the President’s Financial Fraud Enforcement Task Force. The task force was established to wage an aggressive, coordinated and proactive effort to investigate and prosecute financial crimes. With more than 20 federal agencies, 94 U.S. attorneys’ offices, and state and local partners, it’s the broadest coalition of law enforcement, investigatory and regulatory agencies ever assembled to combat fraud. Since its formation, the task force has made great strides in facilitating increased investigation and prosecution of financial crimes; enhancing coordination and cooperation among federal, state and local authorities; addressing discrimination in the lending and financial markets; and conducting outreach to the public, victims, financial institutions and other organizations. Since fiscal year 2009, the Justice Department has filed over 18,000 financial fraud cases against more than 25,000 defendants. For more information on the task force, please visit www.StopFraud.gov.
United States Attorney Rod J. Rosenstein thanked the FBI and HSI Baltimore for their work in the investigation. Mr. Rosenstein praised Assistant U.S. Attorneys Martin J. Clarke and Leo J. Wise, who are prosecuting the case.
Elk Grove Man Sentenced to Two and a Half Years in Prison for National Guard Recruiting FraudRead the Press Release
SACRAMENTO, Calif. — Richard C. Sihner, 54, of Elk Grove, was sentenced today to two years and six months in prison for a scheme to fraudulently obtain bonuses in a recruitment program for the California National Guard, Acting United States Attorney Phillip A. Talbert announced.
On January 22, 2016, after a seven-day trial, a jury found Sihner guilty of 18 counts of wire fraud relating to his scheme to receive unearned recruiting bonuses relating to California National Guard enlistees. The jury also convicted Sihner of one count of making false statements to a federal agent.
In sentencing Sihner, United States District Judge John A. Mendez rejected the suggestion that any blame for the crime rested with others involved in the process. “You, and you alone, are responsible,” said Judge Mendez.
“Integrity is a California National Guard core value, and we're committed to holding our soldiers and airmen accountable if they elect to commit fraud,” said Maj. Gen. David S. Baldwin, Adjutant General for the California National Guard. “These cooperative efforts by the U.S. Attorney's Office continue to help us ensure we remain not only a capable force, but also an ethical force worthy of the people's trust.”
Sihner is a retired member of the California National Guard and participated in the Guard Recruiter Assistant Program (G-RAP). The United States Army contracted with Document and Packaging Broker Inc. (DOCUPAK) to administer G-RAP. Under G-RAP, members of the California National Guard served as recruiting assistants (RA). If an RA referred a potential Guard member to a recruiting office and that person ultimately enlisted, the RA was eligible to receive monetary compensation disbursed by DOCUPAK. RAs would typically receive a $1,000 payment when a nominee enlisted and a second $1,000 payment when the nominee left for boot camp. Ultimately, the G-RAP program was discontinued following the discovery of widespread fraud. Recruits who walked into recruiting offices entirely on their own initiative and were not referred by an RA, were claimed by corrupt RAs in DOCUPAK’s system, often with the assistance of corrupt recruiters.
According to evidence produced at trial, from December 27, 2007 to April 16, 2010, Sihner was an RA in the G-RAP program. A recruiter gave him information about new recruits so that Sihner could falsely claim to have referred them. Sihner made false claims and wrote elaborate falsehoods in the notes section of the DOCUPAK online portal indicating that he had referred the recruits. In fact, the recruits had made contact with the Guard to discuss potential enlistment for reasons entirely unrelated to Sihner. Sihner was paid $95,000 in compensation for purportedly referring 51 soldiers to enlist. Of the 39 recruits federal agents contacted prior to indictment, none had been referred to the Guard by Sihner. When confronted, Sihner lied to federal law enforcement agents investigating the fraud by repeatedly claiming that he had personally referred all of the new soldiers and that he had taken them to the recruiting office to introduce them.
This case was the product of an ongoing investigation by the Army Criminal Investigative Command Major Procurement Fraud Unit, the Defense Criminal Investigative Service, and the Federal Bureau of Investigation. Assistant United States Attorneys Matthew G. Morris and Katherine T. Lydon prosecuted the case.
Other National Guard members and recruiters have been charged in similar recruiting‑fraud schemes in the Eastern District of California. The following defendants have pleaded guilty and await sentencing.
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2:14-cr-153 TLN — Brian Kaps, 42, of Chico, pleaded guilty on November 21, 2014, to one count of wire fraud. Sentencing is set for August 18, 2016.
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2:14-cr-152 TLN — Sarah Nattress, 28, of Paradise, pleaded guilty on October 23, 2014, to one count of wire fraud. Sentencing is set for May 26, 2016.
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1:14-cr-108-LJO — Nicholas Huerta, 33, of Fresno, pleaded guilty on September 14, 2015, to one count of wire fraud. Sentencing is set for November 14, 2016.
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1:14-cr-106 DAD — Joaquin Cuenca, 38, of San Diego, was a recruiter. On February 2, 2016, a jury found him guilty of three counts of wire fraud for fraudulent bonuses. He is scheduled for sentencing on July 18, 2016.
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District Man Sentenced to 77 Months in Prison for Robbing Two Grocery Stores over Five-Day PeriodRead the Press Release
WASHINGTON - Christopher Tyler, 38, of Washington, D.C., was sentenced today to a 77-month prison term on federal charges stemming from two robberies of grocery stores, U.S. Attorney Channing D. Phillips announced.
Tyler pled guilty in March 2016, in the U.S. District Court for the District of Columbia, to two counts of interference with interstate commerce by robbery. He was sentenced by the Honorable Tanya S. Chutkan. Following his prison term, he will be placed on three years of supervised release.
According to the government’s evidence, on July 25, 2014, at approximately 10:50 p.m., Tyler entered a Safeway store in the 1600 block of Maryland Avenue NE. He was wearing a mask and was armed with what appeared to be a black handgun. Tyler pointed the weapon at store employees and demanded that they “open the money room.” A cashier indicated that she did not have a key to the room. Tyler then used a newspaper rack to climb over a wall into the room where the store’s safe was located. He then robbed the store of money that had been received through that evening’s sales. He fled and was not apprehended that night.
On July 30, 2014, at approximately 10:50 p.m., Tyler entered another Safeway store, this time in the 1100 block of Fourth Street SW. He again was armed with what appeared to be a black handgun and again was wearing a mask. Tyler forced a store employee to open the room where another employee was counting the night’s proceeds and putting the money into the store’s safe. He demanded that an employee fill a bag with money.
Tyler then fled the store with approximately $15,000 in cash. Officers from the Metropolitan Police Department (MPD), responding to a 911 call for a robbery, arrived just as Tyler was running from the store. Officers stopped him after a brief foot chase. The officers recovered a black pellet gun that strongly resembles a semi-automatic handgun from the defendant. The officers also recovered the money that he dropped while attempting to escape. Tyler has been in custody since his arrest.
In announcing the sentence, U.S. Attorney Phillips commended the work of the officers, detectives, and others who worked on the case from the Metropolitan Police Department. He also praised the efforts of those who worked on the case from the FBI’s Washington Field Office. Finally, he acknowledged the efforts of those who worked on the case from the U.S. Attorney’s Office, including Assistant U.S. Attorneys Jin Park, Thomas Swanton, and Nihar Mohanty.
Departments of Justice and Education Reach Settlement with Arizona Department of Education to Meet the Needs of English Language Learner StudentsRead the Press Release
The Departments of Justice and Education entered into a voluntary settlement agreement late yesterday with the Arizona Department of Education (ADE) under the Equal Educational Opportunities Act and Title VI of the Civil Rights Act of 1964. The agreement requires ADE to raise its English proficiency criteria to properly identify English language learner (ELL) students in grades three through 12 and to properly determine when those students no longer need language services. The agreement also requires ADE to ensure that Arizona public schools offer language support services to thousands of students who were prematurely moved out of language services or incorrectly identified as initially fluent English proficient from the 2012-13 school year to the present.
The agreement follows a separate settlement agreement with the United States on April 22, 2016, that requires ADE to raise its proficiency criteria for identifying ELL students in kindergarten and to offer language services to ELL students incorrectly identified as English proficient in kindergarten. That agreement also requires ADE to ensure that ELL students who opt out of ELL services have their English language proficiency assessed every year until they are proficient in English.
“We commend Arizona’s Superintendent of Public Instruction and ADE for voluntarily agreeing to take these important steps to ensure that ELL students are timely identified and receive language services critical to their academic success,” said Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division.
“Today’s agreement recommits the State of Arizona to fully serve all Arizona ELL students so they will receive the services they need to be college and career ready,” said Assistant Secretary Catherine E. Lhamon for the Department of Education’s Office for Civil Rights. “We are thrilled for the thousands of students every year who will benefit from this critically important agreement.”
These agreements arise out of the departments’ monitoring of a 2012 settlement agreement with ADE that aimed to resolve the departments’ findings that ADE had under-identified and prematurely removed from ELL status and ELL services tens of thousands of ELL students between 2006 and 2012. As contemplated in that 2012 settlement agreement, the departments and ADE resolved issues that arose during monitoring with the agreements announced today.
The Equal Educational Opportunities Act requires state and local education agencies to take appropriate action to overcome language barriers that impede students’ equal participation in instructional programs, and Title VI of the Civil Rights Act of 1964 bans discrimination on the basis of race and national origin by schools that receive federal funds. Enforcing these laws is a top priority of the Justice Department’s Civil Rights Division. Additional information about the Civil Rights Division is available on its website at www.justice.gov/crt. Enforcement of Title VI is also a top priority of the Department of Education’s Office for Civil Rights. Additional information about the Department of Education’s Office for Civil Rights is available on its website at www.ed.gov/ocr/.
ADE Kindergarten Settlement Agreement
ADE Grades 3-12 Settlement Agreement
Defendant Sentenced to 30 months in Prison for CounterfeitingRead the Press Release
BOISE - Joseph Bylow, 32, of Eagle, Idaho, was sentenced today in United States District Court to 30 months in prison for counterfeiting, U.S. Attorney Wendy J. Olson announced. Senior U.S. District Judge Edward J. Lodge also ordered Bylow to pay restitution in the amount of $644. Bylow pleaded guilty on November 12, 2016.
According to the plea agreement, Bylow admitted that in July and August 2015, he and a co-defendant manufactured and passed counterfeit Federal Reserve Notes to various businesses in Eagle, Boise, and Emmett, Idaho. Initially, Bylow and his co-defendant manufactured counterfeit one dollar notes by printing images of these notes on cotton paper stock. When officers of the Ada County Sheriff’s Office contacted Bylow and his co-defendant at their home, both admitted counterfeiting one dollar notes and passing them at various businesses. Officers seized items including an Epson printer, cotton business paper, a paper cutter, and sheets of paper with one-dollar notes printed on them. Shortly thereafter, Bylow and his co-defendant began manufacturing counterfeit ten and fifty dollar notes by washing or bleaching one and five dollar notes and using them as blanks to print ten and fifty dollar notes. When a search warrant was executed on Bylow and his co-defendant’s residence, they were in possession of acetone, peroxide liquid bleach, copy paper, transparent tape, carpet cleaner, and a spray bottle—items used by Bylow and his co-defendant for manufacturing counterfeit notes. Approximately $500 of counterfeit $5, $10, and $50 bills in various stages of production were recovered during the execution of the search warrant. Approximately $644 of counterfeit notes in denominations of one, ten, and fifty dollars were recovered as passed by Bylow and his co-defendant.
The case was investigated by the United States Secret Service, the Ada County Sheriff’s Office, and the Boise Police Department.
Dallas Man Sentenced to More Than 17 Years in Federal Prison for Role in Takeover-Style Robbery of AT&T Store in Grand PrairieRead the Press Release
DALLAS — The ring-leader of a group of individuals who were involved in the January 2015 take-over style robbery of an AT&T store in Grand Prairie, Texas, was sentenced yesterday to a lengthy federal prison sentence, announced U.S. Attorney John Parker of the Northern District of Texas.
Luther Elder, 30, of Dallas, was sentenced to 210 months in federal prison by U.S. District Judge David C. Godbey, following his guilty plea in December 2015 to one count of interference with commerce by robbery and aiding and abetting. Elder was also ordered to pay $13,854 in restitution.
According to documents filed in the case, on January 23, 2015, Elder recruited co-defendants Chambrezia Johnson, 26, and Anthony Poe, 22, as well as another unknown individual, to assist him and co-defendant Brandon Walker, 29, in robbing an AT&T store in Grand Prairie. Upon picking up Johnson and Poe and the unknown individual, Elder and Walker drove the group to a Wal-Mart in Grand Prairie, where Elder purchased a duffel bag and an “air gun” that was intended to be used in the robbery.
After arriving at the AT&T store, Johnson and Walker entered the store to scout it out and determine how many people were in the store. They left and advised Elder, who then instructed Poe and the unknown individual to rob the store and for Johnson to stay in the back of the store as a potential getaway driver.
At approximately 1:23 p.m., Poe entered the store carrying the “air gun” while the unknown individual entered and brandished what appeared to be a firearm. Poe and the unknown individual ordered all of the employees to the back of the store and the unknown individual struck an 81-year-old customer on the side of the head, because she was not complying fast enough with his demands, and then drug her to the rear of the store by her neck. Poe and the unknown individual demanded cash and cell phones from the victims, fled the store, and were picked up by Elder and Walker. Elder and Walker than dropped off Poe and the unknown individual at a motel before being arrested as they were in route to sell the stolen phones.
Defendants Walker, Poe and Johnson, all Dallas residents, have each pleaded guilty to one count of interference with commerce by robbery and aiding and abetting; each faces a maximum statutory penalty of 20 years in federal prison and a $250,000 fine on that conviction. Poe also pleaded guilty to one count of possession with intent to distribute at least 28 grams of crack cocaine. On that conviction, Poe faces a statutory penalty of not less than five or more than 40 years in federal prison. Sentencing dates are set for later this month and in June 2015.
The case was investigated by the Grand Prairie Police Department, the Dallas Police Department and the Federal Bureau of Investigation.
Assistant U.S. Attorney Brian Poe is in charge of the prosecution.
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Cave City, Kentucky, Physician Guilty of Illegally Dispensing Controlled Substances Outside of His Professional Medical Practice and Health Care FraudRead the Press Release
BOWLING GREEN, Ky. – A Barren County, Kentucky, physician pleaded guilty today in United States District Court to seven criminal counts of knowingly and intentionally distributing and dispensing controlled substances outside the course of professional medical practice and health care fraud, while he was a practicing physician in the Western District of Kentucky, announced United States Attorney John E. Kuhn, Jr.
Dr. Christopher Steward, of Cave City, was a dentist and a nurse practitioner with a practice located at 212 Broadway in Cave City and had a Drug Enforcement Agency registration number which authorized him to write prescriptions within the course of professional medical practice.
According to the plea agreement, on six separate occasions, between March 6, 2015, and June 6, 2015, Steward intentionally conspired with patients to acquire possession of Schedule II and Schedule IV controlled substances, through misrepresentation and fraud, outside the course of medical practice, in order to distribute and/or acquire possession of prescription pills, mostly for his own use.
Further, Steward admits that on June 6, 2015, he willfully executed a scheme to defraud Kentucky Medicaid, a health care benefit program, in connection with the delivery of payment for health care benefits, by writing a prescription for alprazolam, a Schedule IV controlled substance, for a patient without the patient’s knowledge or consent. That prescription was subsequently filled by someone other than the patient, again without the patient’s knowledge or consent, and Steward obtained those pills. That fraudulent prescription was paid for by Kentucky Medicaid, through Coventry Managed Care.
Steward was arrested on April 13, 2016, made an initial appearance before Magistrate Judge H. Brent Brennenstuhl, in Bowling Green, and released on a $25,000 unsecured bond.
At the time of sentencing, the United States will move for dismissal of Count 8 of the Indictment (identity theft) and agree that a sentencing range between 18 months of imprisonment and 30 months of imprisonment is the appropriate disposition of this case. Further, the defendant will agree to forfeit property located at 212 Broadway Street in Cave City, Kentucky, and a 2009 Ford F-150 white pickup truck.
The case is being prosecuted by Assistant United States Attorney David Weiser, and it results from an investigation conducted by the Federal Bureau of Investigation (FBI) and Kentucky State Police.
Cape May County, New Jersey, Man Sentenced to 10 Years in Prison for Possessing Images of Child Sexual AbuseRead the Press Release
CAMDEN, N.J. - A West Wildwood, New Jersey, man was sentenced today to 120 months in prison for possessing images and videos of child sexual abuse, U.S. Attorney Paul J. Fishman announced.
Jeffrey Spicer, 45, previously pleaded guilty before U.S. District Judge Joseph E. Irenas to an information charging him with one count of knowingly possessing child pornography. U.S. District Judge Jerome B. Simandle imposed the sentence today in Camden federal court.
According to documents filed in this case and statements made in court:
Spicer admitted that he possessed images and videos of child sexual abuse on electronic and digital media that were seized from his residence pursuant to a search warrant executed on March 19, 2014. According to a forensic examination of these items, numerous images and videos of child sexual exploitation were discovered, including images on his cellular telephone, which he saved by taking screenshot photos with the telephone. The forensic examination further revealed that Spicer was using a password-protected “app” on his cell phone to store the child pornography.
In addition to the prison term, Judge Simandle sentenced Spicer to 10 years of supervised release and ordered him to pay $7,200 in restitution.
U.S. Attorney Fishman credited special agents of U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI), under the direction of Special Agent in Charge Terence S. Opiola; the Cape May County Prosecutor’s Office, under the direction of Prosecutor Robert L. Taylor; the Lower Township Police Department, under the direction of Chief William Mastriana; and the West Wildwood Police Department, under the direction of Chief Jackie Ferentz, with the investigation leading to today’s sentencing.
HSI encourages the public to report suspected child predators and any suspicious activity through its toll-free hotline at 1-866-347-2423 or by completing its online tip form. Both are staffed around the clock by investigators. For additional information about wanted suspected child predators, download HSI’s Operation Predator smartphone app or visit the online suspect alerts page.
The government is represented by Assistant U.S. Attorney Matthew J. Skahill of the U.S. Attorney’s Office Special Prosecutions Division in Camden.
Defense counsel: Lisa Evans Lewis Esq., Camden
Australian Man Sentenced to 78 Months for Distributing and Possessing Child PornographyRead the Press Release
ALBANY, NEW YORK – Matthew Hynd, age 40, of Mundah, Queensland, Australia, was sentenced today to serve 78 months in prison for distributing and possessing child pornography.
The announcement was made by United States Attorney Richard S. Hartunian and Andrew W. Vale, Special Agent in Charge of the Albany Division of the Federal Bureau of Investigation.
In 2010, while Hynd was living and working in Albany, FBI Agents executed a search warrant on his home, after Hynd distributed child pornography images over the Internet. Agents found hundreds of images of child pornography on Hynd’s computers. Hynd then fled the United States and returned to his native Australia.
Hynd was indicted in 2012 and extradited from Australia in August 2015. In December 2015, he pled guilty to one count of distribution of child pornography and two counts of possession of child pornography.
U.S. District Judge Mae A. D’Agostino also sentenced Hynd to serve a lifetime term of post-imprisonment supervised release, to forfeit several electronic devices on which child pornography was found, and to pay $1,000 in restitution to a child pornography victim.
This case was investigated by the Federal Bureau of Investigation and prosecuted by Assistant U.S. Attorney Katherine Kopita.
Arrowsic Man Sentenced to Six Months for Social Security FraudRead the Press Release
Contact: Michael J. Conley
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Robert Caton, 73, of Arrowsic, Maine, was sentenced today in U.S. District Court by Chief Judge Nancy Torresen to six months in prison and three years of supervised release for social security fraud. He was also ordered to pay $162,786.80 in restitution. He pleaded guilty to the charge on January 6, 2016.
According to court documents, Caton’s mother received retirement and survivors benefits following the death of her husband. The benefits were deposited into a joint account he held with her. When she died in September 2000, Caton did not notify the Social Security Administration (SSA) of her death. As a result, benefits continued to be deposited into the joint account until September 2014. At that time, the excess payments totaled $162,786.80. Caton used all but about $15,000 of these funds to pay personal bills and expenses.
In pronouncing sentence, Judge Torresen noted that Caton’s crime was a serious offense against all taxpayers that continued for 14 years and netted significant money, but also considered Caton’s age, health issues and lack of criminal history in imposing the sentence.
The investigation was conducted by the SSA’s Office of Inspector General.
Armed Drug Dealer Sentenced to 10 YearsRead the Press Release
Jacksonville, Florida – U.S. District Judge Brian J. Davis today sentenced Darrell Maxwell (26, Satsuma) to 10 years in federal prison for possessing Molly, a Schedule I controlled substance, with the intent to distribute it and possessing a firearm in furtherance of that drug trafficking crime. He pleaded guilty on December 14, 2015.
According to court documents, on June 10, 2015, Maxwell arrived at a gas station in Palatka where he had planned to sell Molly. Members of the Tri-County Drug Task Force were aware that Maxwell was in possession of the Molly and subsequently arrested him. During a search, a loaded .40 caliber pistol was recovered from Maxwell’s pants.
This case was investigated by the Florida Department of Law Enforcement, the Putnam County Sheriff’s Office, and the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF). It was prosecuted by Assistant United States Attorney Frank Talbot.
This is another case prosecuted as part of the Department of Justice’s “Project Safe Neighborhoods” Program - a nationwide, gun-violence reduction strategy. United States Attorney A. Lee Bentley, III, along with Regina Lombardo, Special Agent in Charge, ATF, are coordinating the Project Safe Neighborhoods effort here in the Middle District of Florida in cooperation with federal, state, and local law enforcement officials. It is also a part of ATF’s Frontline Strategy on reducing violent crime in communities.
Arkansas Man Pleads Guilty to Selling Counterfeit Garmin MapsRead the Press Release
KANSAS CITY, KAN. – An Arkansas man pleaded guilty Tuesday to selling counterfeit Garmin maps over the Internet, Acting U.S. Attorney Tom Beall said.
William Yates, 26, Fort Smith, Ark., pleaded guilty to one count of copyright infringement. In his plea, he admitted selling map products that were copyrighted by Garmin. Garmin International, Inc. is located in Olathe, Kan.
Yates sold counterfeit Garmin map cards on eBay, Amazon and Craigslist. An investigator with the FBI purchased cards from Yates.
He sold at least 874 counterfeit map products for more than $23,000. The products were valued at more than $67,000.
Sentencing will be set for a later date. He faces a maximum penalty of five years in federal prison and a fine up to $250,000. Beall commended the FBI and Assistant U.S. Attorney Scott Rask for their work on the case.
Alexandria Adult Day Healthcare Center Settles Civil Fraud AllegationsRead the Press Release
ALEXANDRIA, Va. – Agape Health Management, Inc., which operates under the name Agape Adult Day Healthcare Center, located in Alexandria, has agreed to pay $385,917 to settle federal and state civil fraud allegations that claimed Agape submitted false claims for reimbursement to the Virginia Medicaid Program.
Agape operates a facility located in Alexandria that provides adult day health care primarily for Virginia Medicaid recipients. The services provided include community-based health, therapeutic, and social services designed to meet the specialized needs of elderly and disabled recipients. Agape also provides transportation services to and from their facility. The allegations include claims that Agape knowingly submitted false or fraudulent claims for transportation services purportedly provided to Virginia Medicaid recipients that were not present or transported to the Agape facility on the claimed dates of service.
The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney's Office for the Eastern District of Virginia, the Virginia Attorney General’s Office Medicaid Fraud Control Unit, the U.S. Department of Health and Human Services Office of Inspector General, the Virginia Department of Medical Assistance Services, and the FBI's Washington Field Office.
The matter was investigated by Assistant U.S. Attorney Monika Moore, Assistant Attorney General Erica Bailey, and Assistant Attorney General Megan Winfield of the Virginia Attorney General’s Office Medicaid Fraud Control Unit. The civil claims settled by this Federal False Claims Act and Virginia Fraud Against Taxpayers Act agreement are allegations only; there has been no determination of civil liability.
A copy of the settlement agreement along with this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia.
Albuquerque Man Sentenced for Conviction Arising Out of String of U.S. Post Offices Burglaries in Fall of 2015Read the Press Release
ALBUQUERQUE – Ronnie D. Rael, 30, of Albuquerque, N.M., was sentenced today in federal court to 18 months in federal prison followed by two years of supervised release for his conviction on burglary and theft charges arising out of the burglaries of Albuquerque area post offices in Oct. and Nov. 2015.
Ronnie Rael and codefendant Venessa Rael, 48, also of Albuquerque, were arrested in Dec. 2015, on a criminal complaint charging them with burglary of a U.S. Post Office and theft of stolen mail. According to the complaint, the Foothills and Academy Stations of the U.S. Postal Service in Albuquerque experienced several alarm activations in Oct. and Nov. 2015. Surveillance video from those Post Offices revealed that Ronnie Rael and Venessa Rael removed large amounts of mail from the Post Offices when the alarms were activated. The complaint charged Ronnie Rael and Venessa Rael with attempting to use credit cards stolen from the Post Offices in Nov. 2015.
Ronnie Rael and Venessa Rael were subsequently charged in a five-count indictment that was filed on Dec. 17, 2015. Counts 1 and 5 charged Ronnie Rael alone with theft of mail on Nov. 15, 2015 and with breaking into a Post Office on Nov. 26, 2015. Counts 2, 3 and 4 charged Rael and his codefendant with fraudulently attempting to obtain money from the bank account of a person who had not authorized them to do so on Nov. 16, 2015; breaking into a Post Office on Nov. 17, 2015; and theft of mail on Nov. 17, 2015.
On Feb. 1, 2016, Ronnie Rael pled guilty to all five counts of the indictment without the benefit of a plea agreement. Codefendant Venessa Rael pled guilty to Counts 2, 3 and 4 of the indictment on April 14, 2016. At sentencing, Venessa Rael 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 is being prosecuted by Assistant U.S. Attorney Paul Mysliwiec.
2 May 2016
“Santa Claus” Convicted of Distributing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – A 38-year-old Corpus Christi man who worked as a Santa Claus impersonator has pleaded guilty to distribution of child pornography, announced U.S. Attorney Kenneth Magidson. Reynaldo Ramirez was arrested on a criminal complaint Dec. 24, 2015.
The court heard today that the case began when a detective with the Corpus Christi Police Department was able to successfully download various files containing child pornography from an IP address that was associated with Ramirez. As a result, Homeland Security Investigations was contacted to assist in the investigation (HSI).
In December 2015, authorities executed a search warrant at Ramirez’s residence, at which time they seized several digital devices. At the time of the search, authorities located a Santa Claus costume in Ramirez’s residence. When questioned about the outfit, Ramirez stated he had performed as Santa Claus for the past 15 years throughout the South Texas area.
Ramirez admitted that he had been viewing child pornography for approximately six years. He told authorities he had downloaded more than 1,000 images of child pornography ranging in ages from toddlers to pre-teens. Ramirez also admitted to sexually assaulting a four-year-old child.
U.S. District Judge Nelva Gonzales Ramos accepted the guilty plea today and set sentencing for Aug. 10, 2016. At that time, Ramirez faces a minimum of five and up to 20 years in federal prison and a possible $250,000 maximum fine. Upon completion of any prison term imposed, Ramirez also faces a maximum of life on supervised release during which time the court can impose a number of special conditions designed to protect children and prohibit the use of the Internet.
Ramirez has been in custody since his arrest where he will remain pending his sentencing.
The charges against Ramirez are the result of an investigation conducted by the Corpus Christi Police Department-Internet Crimes Against Children Task Force with the assistance of HSI.
This case, prosecuted by Assistant U.S. Attorney Hugo R. Martinez, was brought as part of Project Safe Childhood, a nationwide initiative launched in May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state and local resources to locate, apprehend and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.usdoj.gov/psc. For more information about internet safety education, please visit www.usdoj.gov/psc and click on the tab "resources."
“Pimp” Pleads Guilty in Federal CourtRead the Press Release
DALLAS — Kenneth Richardson, 33, of Dallas, pleaded guilty Friday afternoon, before U.S. District Judge Sidney A. Fitzwater, to one count of using a facility of interstate commerce in aid of a racketeering enterprise, stemming from his operation of a prostitution “ring,” announced U.S. Attorney John Parker of the Northern District of Texas.
Richardson has been in custody since his arrest in November 2015 on an indictment charging him with that offense. He faces a maximum statutory penalty of five years in federal prison and a $250,000 fine. Sentencing is set for August 19, 2016.
According to plea papers filed in his case, from approximately July 2014 to mid-August 2015, Richardson engaged in a prostitution enterprise in various hotels in Dallas, including the Crowne Plaza located off of Interstate 35. During this time, Richardson was employed as a U.S. military contractor, and his duties included assisting new military recruits as they began processing into the military. As part of his job, Richardson had access to numerous hotel rooms at that hotel each day.
Richardson recruited several women to work for him in his prostitution enterprise and used a cell phone and hotel rooms to promote, manage, and facilitate their involvement in commercial sex acts. On more than one occasion, Richardson provided the women with hotel rooms at the Crowne Plaza to which he had access by virtue of his employment and at no cost to himself or the women. Richardson used a cell phone to communicate with these women regarding their prostitution activities, and he received payments from the women that they earned from engaging in those commercial sex acts.
The FBI is in charge of the investigation. Assistant U.S. Attorney Cara Foos Pierce is in charge of the prosecution.
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United States Attorney’s Office Conducts Onsite Review of Various Polling Locations on Primary Day to Ensure Access by Disabled AmericansRead the Press Release
ALBANY, NEW YORK – United States Attorney Richard S. Hartunian announced today that his office’s Civil Division conducted a review of polling locations in Albany and Onondaga Counties to determine whether the polling places comply with the Americans with Disabilities Act of 1990 (ADA).
"The right to vote is one of the most valuable rights protected by our Constitution, but that right is meaningless if there are physical barriers that prevent people from casting their ballot," said U.S. Attorney Hartunian. "Protecting the rights of persons with disabilities is a major focus of my office’s civil rights work, and my office will continue to vigorously ensure compliance with the ADA in the Northern District of New York."
The U.S. Attorney’s Office selected locations for review to ensure that they are accessible to the large numbers of residents who are expected to vote at these polling locations during the Presidential primary election. In a study following the previous Presidential election, the Government Accountability Office found that only 27% of polling places had no potential impediments to access by people with disabilities, meaning 73% of polling locations contained architectural barriers to voting. This initiative is being conducted in accordance with the Department of Justice’s statutory responsibility to review compliance with federal law and not in response to any specific complaint against any of the polling locations.
Federal law prohibits discrimination on the basis of disability by the owners and operators of places of public accommodation, including polling locations, and protects the right to participate in state and local government programs and services. The U.S. Attorney’s Office periodically undertakes ADA compliance reviews to ensure equal access for people with disabilities.
As part of its ADA compliance review, attorneys, architects, and staff from the U.S. Attorney’s Office and the Department of Justice surveyed 35 polling places in Albany and Onondaga Counties. If these site visits revealed that a particular polling location is not in compliance with the ADA, the U.S. Attorney’s Office will notify the appropriate state and local official of the violation and will provide a timeframe to correct the issue(s). The goal is to ensure that all polling locations are fully compliant in time for the Presidential election on Nov. 8, 2016.
The U.S. Attorney’s Office encourages affected citizens to report ADA violations at polling locations. Complaints concerning locations in the Northern District of New York may be submitted via the U.S. Attorney’s Office’s Civil Rights Hotline at (518) 618-1619 or by completing the U.S. Attorney’s written civil rights complaint form, which may be found at www.justice.gov/usao-ndny/contact-us/Civil%20Rights.
Two Members of Southern Maryland Drug Trafficking Conspiracy Each Sentenced to 10 Years in PrisonRead the Press Release
Greenbelt, Maryland – U.S. District Judge Deborah K. Chasanow sentenced Colbert Juan Jones, Jr., age 33, of St. Leonard, Maryland today to 10 years in prison, followed by four years of supervised release, for conspiracy to distribute and possess with intent to distribute powder cocaine and for being a felon in possession of a firearm. Judge Chasanow also issued an order requiring Jones to forfeit over $20,000 in drug proceeds, two cars, two shotguns, and ammunition.
On April 29, 2016, Judge Chasanow sentenced co-conspirator Vincent Leo Fletcher, age 29, of Clinton, Maryland to 10 years in prison, followed by five years of supervised release, for conspiracy to distribute and possess with intent to distribute powder and crack cocaine.
The sentences were announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Acting Special Agent in Charge Frank Riehl of the Bureau of Alcohol, Tobacco, Firearms and Explosives - Baltimore Field Division; Special Agent in Charge Karl C. Colder of the Drug Enforcement Administration - Washington Field Division; Chief Hank Stawinski of the Prince George’s County Police Department; Acting Chief Stanley Johnson, of the Maryland National Capital Park Police, Prince George’s County Division; Charles County Sheriff Troy Berry; St. Mary’s County Sheriff Tim Cameron; and Calvert County Sheriff Mike Evans.
According to their plea agreements and other court documents, from January through July 2015, Jones and Fletcher conspired with Troy Taishon Swann, Antoine Dewayne Savoy, and James Devwan Pixley, to distribute cocaine. Jones obtained cocaine from Fletcher and other sources. Fletcher obtained two to 20 ounces of cocaine several times a month from Swann and other suppliers. Fletcher distributed the cocaine to his customers for further distribution, and used some of the powder cocaine to manufacture crack cocaine, which he also distributed.
Jones sold cocaine to his customers, which included Savoy and Pixley. Jones often distributed the cocaine from the home of a female friend in Prince Frederick, Maryland, which Jones used as a stash house. Savoy and Pixley generally purchased cocaine from Jones several times a month and used at least half of that cocaine to manufacture crack cocaine, which they sold. On August 6, 2015, a search of Jones’ stash house in Prince Frederick recovered: approximately 100 grams of cocaine and drug processing paraphernalia, which Jones had attempted to hide inside an audio speaker in the basement of the residence; a 20 gauge shotgun; and 14 rounds of ammunition. A search of Jones’ residence on that same day recovered a 12 gauge shotgun and two boxes of ammunition, as well as $22,704 in cash, proceeds of Jones’ drug distribution. Jones had been previously convicted of a felony and was prohibited from possessing firearms or ammunition.
Troy Taishon Swann, age 39, of Waldorf; Antoine Dewayne Savoy, age 35, of Lusby, Maryland; and James Devwan Pixley, age 25, of Waldorf, Maryland, have pleaded guilty to their participation in this drug trafficking conspiracy. In addition, Pixley admitted to possessing a firearm in furtherance of a drug trafficking crime and Swann admitted to being a felon in possession of ammunition.
Pixley and the government have agreed that if the Court accepts his plea agreement Pixley will be sentenced to between 10 and 14 years in prison. Judge Chasanow has scheduled sentencing for Pixley on June 6, 2016 at 9:30 a.m. Judge Chasanow has scheduled sentencing for Savoy on June 27, 2016 at 12:30 p.m. and for Swann on July 11 2016 at 11:00 a.m.
United States Attorney Rod J. Rosenstein praised the ATF, DEA, Prince George’s County Police Department, Maryland National Capital Park Police, Prince George’s County Division, and the Charles, St. Mary’s and Calvert County Sheriffs’ Offices for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Michael T. Packard and Leah J. Bressack, who prosecuted this Organized Crime Drug Enforcement Task Force case.
Two Hamden Men Admit Distributing Oxycodone Involved in Weston OverdoseRead the Press Release
Deirdre M. Daly, United States Attorney for the District of Connecticut, and Michael J. Ferguson, Special Agent in Charge of the Drug Enforcement Administration for New England, today announced that TAHIR FARID, 22, and RYAN LOONEY, 19, both of Hamden, have pleaded guilty to federal oxycodone distribution charges. The charges stem from an ongoing statewide initiative targeting narcotics dealers who distribute heroin, fentanyl or opioids that cause death or serious injury to users.
According to court documents and statements made in court, on January 3, 2016, a 22-year-old male purchased 30 40-milligram oxycodone pills from FARID in exchange for $900. He then consumed some of those pills, as well as other substances. On January 5, 2016, the 22-year-old male was found unresponsive at a friend’s residence in Weston. He remains unresponsive and, according to medical personnel, is in a “persistent vegetative state.”
The investigation revealed that, prior to the victim’s overdose, LOONEY supplied FARID with oxycodone pills. FARID then distributed the pills to the victim.
FARID and LOONEY were arrested on federal criminal complaints on February 22 and February 29, respectively.
Today, LOONEY waived his right to indictment and pleaded guilty in Hartford federal court to one count of possession with intent to distribute, and distribution of, oxycodone. He is scheduled to be sentenced by U.S. District Judge Robert N. Chatigny on August 11, 2016. The charge carries a maximum term of imprisonment of 20 years.
On April 26, 2016, FARID pleaded guilty to the same charge. He is scheduled to be sentenced by Judge Chatigny on August 8, 2016.
This matter is being investigated by the Drug Enforcement Administration’s New Haven Tactical Diversion Squad, U.S. Marshals Service, Weston Police Department and Monroe Police Department. The Task Force includes participants from the New Haven, Hamden, Greenwich, Shelton, Bristol, Vernon and Wilton Police Departments.
This case is being prosecuted by Assistant U.S. Attorney Robert M. Spector.
Two Cocaine Traffickers Handed Down Lengthy Prison TermsRead the Press Release
CHARLOTTE, N.C. – U.S. District Judge Robert J. Conrad, Jr. handed down lengthy prison terms to two cocaine traffickers for their involvement in a long-standing drug conspiracy, announced Jill Westmoreland Rose, U.S. Attorney for the Western District of North Carolina. Ricardo Rebollar, 27, of Mexico, was sentenced to 168 months in prison and Jose Munoz, 28, of Asheboro, N.C., was sentenced to 70 months of prison. Each defendant was also ordered to serve five years under court supervision following their prison terms.
U.S. Attorney Rose is joined in making today’s announcement by John A. Strong, Special Agent in Charge of the Federal Bureau of Investigation (FBI); Nick Annan, Special Agent in Charge of ICE’s Homeland Security Investigations (HSI) in Atlanta and the Carolinas; Chief Robert C. Helton of the Gastonia Police Department (GPD); and Chief Kerr Putney of the Charlotte-Mecklenburg Police Department (CMPD).
According to filed documents and statements made in court, the conspiracy operated in Mecklenburg and Gaston Counties, and elsewhere, from 2011 to December 2014, and it involved more than 150 kilograms of cocaine with a street value of more than $7 million. Over the course of the investigation, law enforcement seized 19 firearms, including assault style weapons. Court records indicate that the co-conspirators used “cover cars” to provide armed support to couriers as they distributed multiple-kilograms of cocaine per delivery. This investigation has resulted in the conviction of more than 45 defendants and the seizure of more than 38 kilograms of cocaine and $2 million in drug proceeds.
Three others defendants were previously sentenced in connection with this investigation. They are:
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Jose Otoniel Rebollar, 33, of Asheboro, N.C., was sentenced on 12/8/2015 to 148 months
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Pablo Munoz, 32, of Asheboro, N.C., was sentenced on 1/29/2016 to 120 monthsfollowed by five years of supervised release.
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Raul Rebollar, 30, of Randleman, N.C., was sentenced on 11/20/2015 to 63 months in prison, followed by 3 years supervised release.
OCDETF is a joint federal, state and local cooperative approach to combat drug trafficking and is the nation’s primary tool for disrupting and dismantling major drug trafficking organizations, targeting national and regional drug trafficking organizations and coordinating the necessary law enforcement entities and resources to disrupt or dismantle the targeted criminal organization and seize their assets.
The investigation is led by the FBI, HSI, and GPD, with assistance from the North Carolina State Bureau of Investigation, CMPD, Randolph County Sheriff’s Office, Asheboro Police Department, and North Carolina State Highway Patrol. The ongoing investigation and prosecution for the government is being handled by Assistant U.S. Attorney Steven R. Kaufman of the U.S. Attorney’s Office in Charlotte.
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