Latest Records
Newest first across public DOJ and U.S. Attorney press releases.
29 April 2016
Man Pleads Guilty to Lying and Concealment in Connection with the Mother Emanuel AME Church ShootingRead the Press Release
U.S. Attorney Bill Nettles of the District of South Carolina announced today that Joseph Carlton Meek, 21, of Lexington, South Carolina, pleaded guilty to an indictment charging him with misprision of a felony and making a false statement. Meek entered the guilty plea as a result of his actions following the June 17, 2015, attack on parishioners of the Emanuel African Methodist Episcopal Church in Charleston. Meek faces a maximum of three years on the misprision count and five years on the false-statement count. U.S. District Judge Richard Gergel of the District of South Carolina presided over the hearing and will sentence Meek at a later date.
This guilty plea is the result of an investigation conducted by the FBI, Charleston Police Department and South Carolina Law Enforcement Division. Assistant U.S. Attorneys Jay N. Richardson and Nathan Williams of the District of South Carolina are prosecuting the case.
MEDIA ADVISORY-- New Mexico Hope Initiative Partners to Discuss Impact of DEA’s National Take Back Initiative on New Mexico’s Opioid EpidemicRead the Press Release
ALBUQUERQUE – U.S. Attorney Damon P. Martinez, Bernalillo County Commissioner Maggie Hart Stebbins, City Councilor Diane Gibson, and Ryan P. Cangiolosi, Chief Strategic Advisor for UNM’s Health Sciences Center, will join DEA Assistant Special Agent in Charge Sean R. Waite at 12:00 p.m. (noon) on Saturday, April 30, 2016, at a DEA Drug Take Back collection site in Albuquerque, N.M., to discuss the impact of DEA’s National Take Back Initiative on New Mexico’s opioid epidemic. This media opportunity is part of the prevention and education component of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative.
WHO:
U.S. Attorney Damon P. Martinez
Asst. Special Agent in Charge Sean R. Waite, DEA Albuquerque District Office
Bernalillo County Commissioner Maggie Hart Stebbins, District 3
City Councilor Diane Gibson, District 7
Ryan P. Cangiolosi, Chief Strategic Advisor, Office of Strategy and Engagement at the UNM Health Sciences Center
WHEN:
SATURDAY, APRIL 30, 2016
12:00 p.m., noon
WHERE:
DEA Drug Take Back Collection Site
Walgreens
8400 Montgomery NE
Albuquerque, NM 87111
OPEN PRESS
The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic that has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico. The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
Latin King Nicholas Baez Charged with Murder During Narcotics ConspiracyRead the Press Release
HAMMOND- United States Attorney David A. Capp announced today that a criminal complaint was filed against Nicholas Baez, a/k/a “Cali”, 22, of Hammond, Indiana for causing the death of another through the use of a firearm in connection with a narcotics conspiracy.
According to documents filed in the case, Baez is an alleged to be a member of the Latin Kings who fired 5 rounds into Estrella’s bar, killing one of the patrons. It is alleged that the shooting occurred in response to rival gang members previously being seen in the bar and to prevent rival gangs from encroaching on Latin Kings territory.
This complaint is part of the ongoing efforts to curb the activities of violent street gangs in the Northern District of Indiana.
This case is the result of the investigative efforts of the Federal Bureau of Investigation’s Gang Response Investigative Team, the Bureau of Alcohol, Tobacco, Firearms and Explosives, the East Chicago Police Department, the Hammond Police Department, the Lake County, Indiana, Sheriff’s Department, and Lake County High Intensity Drug Trafficking Area officers and agents. The case is being prosecuted by Assistant United States Attorneys David Nozick and Dean Lanter.
The United States Attorney's Office emphasized that a Complaint is merely an allegation and that all persons charged are presumed innocent until and unless proven guilty in court.
If convicted in court, any specific sentence to be imposed will be determined by the judge after a consideration of federal sentencing statutes and the Federal Sentencing Guidelines.
# # #
Lake Worth Resident Charged with Distribution of Fentanyl Resulting in DeathRead the Press Release
A Lake Worth resident is charged with distributing fentanyl, a controlled substance that was ingested and caused the death of another individual.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Adolphus P. Wright, Special Agent in Charge, United States Drug Enforcement Administration (DEA), Miami Field Division, Ric Bradshaw, Sheriff, Palm Beach County Sheriff’s Office (PBSO) and Bryan Kummerlen, Chief, West Palm Beach Police Department (WPBPD), made the announcement.
Christopher Sharod Massena, 24, of Palm Beach County was indicted on one count of distribution of fentanyl resulting in death, four counts of distribution of heroin, and one count of possession with intent to distribute heroin. This morning, Massena was ordered held without bond following a pre-trial detention hearing. If convicted of the narcotics distribution resulting in death, Massena faces a mandatory minimum sentence of 20 years to life in prison, to be followed by supervised release and a potential fine of up to $1 million dollars. If convicted of the additional charges, Massena faces a maximum statutory term of 20 years’ imprisonment, to be followed by supervised release and a potential fine of up to $1 million dollars.
“Fentanyl is another dangerous face of the illegal narcotics trade,” stated U.S. Attorney Wifredo Ferrer. “It is a controlled substance that is up to 100 times stronger than morphine and can be lethal, even in very small doses. As a community, we must be vigilant and educate ourselves and others regarding the dangers associated with all drug abuse.”
“The DEA takes the illegal distribution of any illegal drug very seriously,” said DEA Special Agent in Charge A.D. Wright. “The recent spike in opiate sales which are resulting in deaths only heightens our commitment to continue our fight. The DEA is working very closely with our law enforcement partners in Palm Beach County and the United States Attorney’s Office to fully investigate and prosecute illicit drug trafficking activities to ensure that those responsible are held accountable for the consequences of their actions, especially when the sales result in the tragic death of another individual.”
According to the court record, on February 18, 2016, Massena distributed fentanyl, a Schedule II controlled substance, to a twenty-three year old man who died of acute fentanyl toxicity shortly after ingesting the substance. Thereafter, on four separate occasions, Massena distributed controlled substances, to wit, heroin and heroin mixed with fentanyl, to an undercover police officer. On April 21, 2016, Massena possessed heroin with the intent to distribute the narcotic.
Mr. Ferrer commended the investigative efforts of the DEA, PBSO, and WPBPD. Mr. Ferrer also thanked the Federal Bureau of Investigation for their assistance. This case is being prosecuted by Assistant U.S. Attorney Jennifer C. Nucci.
An indictment is merely an allegation and a defendant is presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov
Kissimmee Resident Convicted at Trial of Wire FraudRead the Press Release
On April 27, 2016, a Miami jury found a Kissimmee, Florida resident guilty of wire fraud.
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, and George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, made the announcement.
Michael John Alcocer Roa, 34, of Kissimmee, Florida, was convicted at trial of five counts of wire fraud, in violation of Title 18, United States Code, Section 1343. Alcocer faces a maximum statutory sentence of 100 years in prison. Alcocer is scheduled to be sentenced by U.S. District Court Senior Judge Patricia A. Seitz on July 12, 2016.
According to the court record, including testimony and evidence presented at trial, Alcocer set up a Florida corporation called Inovatrade Inc. (“Inovatrade”) in October 2008. Between 2008 and 2011, Alcocer told people that they could trade foreign currencies at Inovatrade, set up managed accounts in which others could trade foreign currencies on their behalf, or earn guaranteed interest payments of approximately 15% per year or greater. Alcocer also represented that Inovatrade maintained all of its clients’ accounts segregated, safeguarded, and protected in a trust account.
Evidence at trial showed that based on those and other representations, approximately 300 individuals and entities sent Inovatrade over $7 million. Many of those individuals and entities received documents from Inovatrade purporting to show their account balances, as well as trading activity in their accounts or monthly interest and other promotional payments earned. But when individuals requested to withdraw their money from Inovatrade, many were unable to do so. Alcocer and Inovatrade provided various, and often inconsistent, excuses, and after some time, many of the individuals and entities received no more communications, nor did they receive their money.
Financial summaries of bank records associated with Inovatrade and Alcocer introduced at trial showed that little to no actual trading took place in the Inovatrade accounts, the vast majority of the money that entered the Inovatrade accounts came from individuals and entities rather than from business revenue, and Alcocer cashed out and transferred millions of dollars of that money from the Inovatrade accounts to personal accounts in the United States and in Panama.
Mr. Ferrer commends the investigative efforts of the FBI. The case was prosecuted by Assistant U.S. Attorneys John P. Gonsoulin and Vanessa S. Snyder.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Joliet Man Charged with Arson for Allegedly Setting Fire to His Employer’s Warehouse in WoodridgeRead the Press Release
CHICAGO — A Joliet man was charged with arson today for allegedly causing a fire that destroyed his employer’s furniture distribution center in west suburban Woodridge.
RUBEN ANTONIO OCHOA CRUZ, a high lift operator in the warehouse, used a Bic lighter to spark the fire on April 21, 2016, according to a criminal complaint filed in U.S. District Court in Chicago. He set the fire after meeting with his supervisors regarding an issue with his attendance at work, according to the complaint. Approximately 65 employees were working at the warehouse at the time of the fire, and all of them escaped safely.
The complaint charges Cruz, 20, with one count of arson. He made an initial appearance today before U.S. Magistrate Judge Maria Valdez and was ordered held in federal custody. A detention hearing was scheduled for May 4, 2016, at 11:00 a.m.
According to the complaint, firefighters from approximately 30 departments worked for seven hours to extinguish the blaze, which caused millions of dollars in damage. The distribution center was burned to the ground, the complaint states. No firefighters were injured.
The arson charge carries a minimum sentence of five years in prison and a maximum sentence of 20 years.
The complaint was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; and Jeffery Magee, Special Agent in Charge of the Chicago Field Division of ATF. The officials praised the bravery of the firefighters who worked tirelessly to extinguish the blaze.
The Woodridge Police Department, Lemont Police Department and the Office of the Illinois State Fire Marshal provided substantial assistance in the investigation.
The public is reminded that a complaint is not evidence of guilt. The defendant is presumed innocent and is entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt. If convicted, the Court must impose a reasonable sentence under federal statutes and the advisory United States Sentencing Guidelines.
The government is represented by Assistant U.S. Attorney Misty Wright.
International Competition Network Marks its 15th Annual Conference Promoting International Convergence and CooperationRead the Press Release
Showcases Work on Merger Remedies, Unilateral Conduct and Agency Assessment
At its annual meeting, the International Competition Network (ICN) approved new work on crafting remedies in merger review, agency assessment and performance measurement, cartel investigative powers, market studies, competition agency ethics programs, and advocacy to the business community, the Justice Department’s Antitrust Division announced today. The ICN also presented the outcome of a network-wide assessment to guide its operations, agenda and future work plans, known as its “Second Decade initiative.”
The ICN held its 15th annual conference, hosted by the Competition Commission of Singapore (CCS), on April 26-29, 2016. More than 500 delegates from more than 75 jurisdictions participated, including competition experts from international organizations and the legal, business, consumer and academic communities. Principal Deputy Assistant Attorney General Renata Hesse of the Department of Justice’s Antitrust Division and Federal Trade Commission Chairwoman Edith Ramirez led the U.S. delegation. The conference showcased the achievements of ICN working groups on unilateral conduct, agency effectiveness, mergers, cartels and competition advocacy.
Principal Deputy Assistant Attorney General Hesse moderated a panel on monopolization and the global economy. The panel was part of the Unilateral Conduct Working Group’s on-going project on the analytical framework for single firm conduct enforcement, exploring various perspectives to inform and articulate common principles of sound competition analysis. The Unilateral Conduct Working Group, co-chaired by the Justice Department, promotes convergence and sound enforcement of laws and policies applicable to conduct by firms with substantial market power.
“The ICN has become a crucial instrument for dialogue, cooperation, and convergence within the global antitrust community,” said Principal Deputy Assistant Attorney General Hesse. “The Annual Conference provides us all with an opportunity to reflect on the great progress that has been made in competition policy and enforcement around the world, as well as the challenges that lie ahead. This practical cooperation with many other jurisdictions helps to create a strong foundation for more effective enforcement in a globalized economy. We look forward to continuing our work with ICN and its members on these important issues in the coming year.”
Chairwoman Ramirez spoke on a panel about disruptive innovation and competition issues. She highlighted the FTC’s advocacy relating to emerging internet peer-to-peer platforms, as reflected in a 2015 FTC Workshop on the Sharing Economy. This panel was the culmination of a CCS-led special project devoted to government advocacy and disruptive innovation that also produced a comparative report based on input from 44 competition agencies. Chairwoman Ramirez also accepted an award for the FTC’s advocacy work involving the sharing economy as part of the Annual ICN/World Bank Advocacy Contest, which recognizes and promotes successful advocacy initiatives by ICN members.
“Since its founding 15 years ago, ICN has become the premier forum for promoting convergence and cooperation in competition enforcement,” said Chairwoman Ramirez. “In developing consensus-based, common-sense guidance on enforcement, the ICN helps its members be effective champions for competition and consumers.”
The Unilateral Conduct Working group provided an update of its work on the Analytic Framework for Assessing Unilateral Conduct. Over the past year, the group received position papers and held teleconferences on two topics: what is substantial market power and what conduct is exclusionary. The working group also announced the launch of a new project to analyze the effects of vertical restraints in online markets.
The Agency Effectiveness Working Group, co-chaired by the FTC from 2012 to 2016, addresses competition agency strategy, operations, and procedures. The working group developed reports on agency ethics and measuring agency performance, which were adopted at the conference. An agency’s commitment to its ethics rules and the evaluation of its actions are core components of agency governance. Evaluation, and the accountability it reinforces, can provide an informed foundation for future agency planning and enforcement choices and helps justify the resources an agency receives for its mission. The working group also presented new on-line training modules on setting up a new competition agency, setting priorities, conducting dawn raids in cartel investigations, applying economic analytical tools, and addressing state restraints – adding to the ICN’s Training on Demand online curriculum.
The ICN’s members also adopted the Merger Remedies Guide presented by the Merger Working Group. The guide details the overarching principles that form the basis of merger remedies and provides practical guidance on how these principles inform the design and implementation of merger remedies. The Justice Department and the FTC were active contributors to the development of the Guide. Following the conference, the FTC will co-chair the Merger Working Group.
The ICN’s Cartel Working Group presented two new work products designed to aid members’ cartel enforcement efforts: a catalogue of agency investigative powers and a framework for sharing non-confidential information. The framework aims to facilitate improved cooperation among member agencies. Working group discussions at the conference addressed effective detection and deterrence, enforcement cooperation, leniency, compliance and sanctions.
The Advocacy Working group presented an update of its Market Studies Good Practices Handbook and online Market Studies Information Store, a unique resource of over 600 competition agency market studies spanning 10 years and covering more than 30 jurisdictions. The working group also expanded its web-based toolbox on competition advocacy, providing examples of agency messages to business on the benefits of competition.
The results of the ICN’s Second Decade initiative reinforced the network’s commitments to inclusive engagement with its members and non-governmental advisors, experience sharing and the exchange of best practices among members, promotion of convergence and cooperation around sound enforcement approaches, and international advocacy for competition principles to the benefit of member agencies, consumers, and economies worldwide.
The ICN was created in October 2001, when the FTC and the Justice Department joined antitrust agencies from 13 other jurisdictions to increase understanding of competition policy and promote convergence toward best practices around the world. The ICN now comprises 132 member agencies from 120 jurisdictions.
More resources are available on the ICN website.
Information: Federal Court ArraignmentsRead the Press Release
The United States Attorney’s Office announced that those persons listed below were arraigned before the U.S. Magistrate and the indictments handed down by the Grand Jury unsealed.
Appearing before U.S. Magistrate Ostby in Billings on April 28, 2016 and entering pleas of Not Guilty were:
- TAWNYA BEARCOMESOUT, a 39-year-old resident of Lame Deer, appeared on charges of voluntary manslaughter, and involuntary manslaughter. If convicted of the most serious charge contained in the indictment, BEARCOMESOUT faces 15 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-13
Appearing before U.S. Magistrate Ostby in Billings on April 26, 2016 and entering pleas of Not Guilty were:
- DUANE TIMOTHY SMITH, a 34-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, possession of a firearm in furtherance of a drug trafficking crime, and possession of a firearm not registered in National Firearms Registration and Transfer Record. If convicted of the most serious charges contained in the indictment, SMITH faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-46
- THOMAS DEAN SMITH, a 42-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, felon in possession of a firearm, and possession of a firearm in furtherance of a drug trafficking crime. If convicted of the most serious charges contained in the indictment, SMITH faces life in in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Federal Bureau of Investigation. PACER Case Reference. 16-46
Appearing before U.S. Magistrate Johnston in Great Falls on April 25, 2016 and entering pleas of Not Guilty were:
- RAFAEL RAMOS-ROMERO, a 29-year-old resident of Mexico, appeared on charges of illegal reentry. If convicted of the charge contained in the indictment, RAMOS-ROMERO faces 10 years in prison, $250,000 in fines, and 3 years supervised release. The case was investigated by the Department of Homeland Security. PACER Case Reference. 16-14
- RYAN JASON TATSEY, a 31-year-old resident of Spokane, Washington, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, possession with intent to distribute methamphetamine, and distribution of methamphetamine. If convicted of the most serious charges contained in the indictment, TATSEY faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Bureau of Indian Affairs, Drug Enforcement Administration and Glacier County Sheriff’s Office. PACER Case Reference. 16-16
Appearing before U.S. Magistrate Ostby in Billings on April 25, 2016 and entering pleas of Not Guilty were:
- PEDRO CARRASCO, JR., a 33-year-old resident of Billings, appeared on charges of conspiracy to distribute methamphetamine and possession with intent to distribute methamphetamine, felon in possession of a firearm, possession of a firearm in furtherance of a drug trafficking crime, and conspiracy to commit money laundering. If convicted of the most serious charges contained in the indictment, CARRASCO faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-41
- MATTHEW DENNIS COZZENS, a 32-year-old resident of Billings, appeared on charges of conspiracy to possess with intent to distribute methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, COZZENS faces life in prison, $10,000,000 in fines, and 5 years supervised release. The case was investigated by the Drug Enforcement Administration. PACER Case Reference. 16-43
- JOSHUA DON RAY, a 37-year-old resident of Ashland, appeared on charges of distribution of methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, RAY faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-47
- GEORGIA ANN WILSON, a 40-year-old resident of Ashland, appeared on charges of distribution of methamphetamine, and possession with intent to distribute methamphetamine. If convicted of the most serious charge contained in the indictment, WILSON faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-47
- TROY DEE WILSON, a 21-year-old resident of Ashland, appeared on charges of distribution of methamphetamine. If convicted of the most serious charge contained in the indictment, WILSON faces 20 years in prison, $1,000,000 in fines, and 3 years supervised release. The case was investigated by the Bureau of Indian Affairs. PACER Case Reference. 16-47
If any of the above cases are of interest to your media organization and the community it serves, we encourage you to monitor the progress of the case regularly through the U.S. District Court calendar and the PACER system so that you stay current and not miss any important developments in the case.
To establish a PACER account, which will allow you to review documents filed in the case, please go to, http://www.pacer.gov/register.html. To access the district court’s calendar, please go to https://ecf.mtd.uscourts.gov/cgi-bin/PublicCalendar.pl.
Hagerstown Drug Trafficker Sentenced to 5 Years in PrisonRead the Press Release
Baltimore, Maryland – U.S. District Judge George L. Russell III sentenced Eric Christopher Smallwood, a/k/a “Big Baby” and “E,” age 40, of Hagerstown, Maryland today to five years in prison followed by four years of supervised release for conspiring to distribute and possession with intent to distribute cocaine in the Hagerstown area.
The sentence 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; Captain Paul “Joey” Kifer, Acting Chief of the Hagerstown Police Department; Washington County Sheriff Douglas W. Mullendore; and Assistant Special Agent in Charge Don A. Hibbert of the Drug Enforcement Administration, Baltimore District Office.
According to his plea agreement, Smallwood regularly obtained bulk quantities of cocaine from Abdul Smith, which he re-sold to customers in the Hagerstown area. Smallwood provided the proceeds of these sales to Smith to pay for prior supplies of cocaine. Agents obtained a wiretap on phone lines used by Smith and Smallwood, and intercepted numerous calls between them discussing the distribution of cocaine.
Over the course of the conspiracy, Smallwood obtained at least 400 grams of cocaine from Smith, which he then re-distributed to customers in Maryland.
Co-defendants Abdul Jamel Smith, age 40; Rory Slade Jenkins, a/k/a/”Malik,” age 56; Altonia Sylvester Henderson, age 40; and Johnathan Woodley, a/k/a “Ming”: age 39, all from Hagerstown, previously pleaded guilty to their participation in the drug conspiracy and were sentenced from five years of probation to 51 months in prison.
United States Attorney Rod J. Rosenstein praised the FBI, DEA, Hagerstown Police Department and Washington County Sheriff’s Office for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorneys Kenneth S. Clark and Matthew C. Sullivan, who prosecuted the case.
Grand Jury Returns Indictment Charging Kaysville Man with Attempt to Evade Payment of Taxes, Failure to Pay TaxesRead the Press Release
SALT LAKE CITY – A federal grand jury returned a five-count indictment this week charging David Brian Bybee, age 55, of Kaysville, Utah, a Utah businessman and CPA, with two counts of tax evasion and three counts of failure to pay taxes. The indictment alleges Bybee has taken steps to evade payment of personal tax debt and payroll taxes for his employees through the use of nominees and misrepresentations to IRS revenue officers.
According to the indictment, Bybee managed and controlled several companies from his home in Kaysville or at other business addresses in Davis County. Bybee hired and managed employees for the Bybee companies. His duties included generating revenue, keeping books and records, paying expenses, making employee payroll, withholding and paying over taxes from employee payroll, and filing all required business returns. Bybee issued payroll checks from Bybee companies and withheld Medicare and Social Security (often referred to as Federal Insurance Contribution Act or “FICA” taxes) and federal income tax withholdings, collectively referred to as “payroll taxes.”
The first count of the indictment, attempt to evade and defeat payment of tax, alleges Bybee attempted to evade a large part of the income tax he owned to the federal government for calendar years 2000, 2001, 2002, 2005, 2006, 2007, 2008 and 2009, in an amount totaling about $153,569.41. The indictment alleges he took steps to conceal and attempt to conceal the nature, extent and location of his assets from the IRS to avoid paying the taxes.
A second count of attempt to evade and defeat payment of tax relates to efforts the indictment alleges Bybee took to evade paying payroll taxes to the federal government on behalf of the employees of three companies he controlled from about April 30, 2000, to about March 14, 2011. Bybee deducted and collected payroll taxes totaling at least $39,244.49 but did not report the payroll taxes with the exception of one employment tax payment of $899.32 in April 2012. Bybee was determined to be responsible for the payroll taxes and was assessed penalties totaling $47,919.06 for the unpaid taxes. According to the indictment, he has failed to make any payments.
The final three counts of the indictment allege Bybee failed to truthfully account for and pay over to the IRS all of the federal income taxes withheld and FICA taxes due to the United States on behalf of the Bybee companies and its employees for three calendar quarters, including approximate payroll taxes of $2,247.51 for the fourth quarter of 2010; $1,800 for the fourth quarter of 2011; and $1,830.66 for the fourth quarter of 2012.
A summons will be issued to Bybee to appear for an arraignment in federal court. The maximum potential penalty for each of the five counts in the indictment is five years, a fine of $250,000, and the costs of prosecution.
Indictments are not findings of guilt. Individuals charged in an indictment are presumed innocent unless or until proven guilty in court.
The case is being prosecuted by the U.S. Attorney’s Office in Salt Lake City and investigated by special agents of IRS-Criminal Investigation.
Grafton couple who owned head shop chain sentenced to prison for distributing synthetic cannabinoids known as spiceRead the Press Release
A Grafton couple who owned a chain of head shops were sentenced to prison for conspiring to distribute synthetic cannabinoids known as spice, law enforcement officials said.
Sean Lightner, 41, was sentenced to three years in prison while Sherry Lightner, 40, was sentenced to two years in prison.
Nathan Albright, 30, of Glendale, Arizona, was sentenced earlier this month to two years in prison.
All three previously pleaded guilty to one count each of conspiracy to possess with intent to distribute a controlled substance analogue, as well as engaging in monetary transactions in property derived from specified unlawful activity.
“This couple operated stores throughout the state to sell dangerous synthetic drugs to anyone who walked through the front door,” said Acting U.S. Attorney Carole Rendon. “They knew what they were doing was illegal.”
"This is an important victory for the residents of Northern Ohio. Not only are criminals going to jail for their crimes, but the government has seized a significant portion of the illegal proceeds through asset forfeiture,” said Kathy A. Enstrom, Special Agent in Charge, IRS Criminal Investigation, Cincinnati Field Office. “The laundering of illegal drug profits is as important and essential to drug traffickers as the very distribution of their illegal drugs. Without these ill-gotten gains, the traffickers could not finance their organizations.”
Dale Drummond, 41, of Cleveland, and Mark Picard, 34, of Whittier, Calif., have pleaded guilty to their roles in the case and are awaiting sentencing.
Synthetic cannabinoids are a large family of chemically unrelated structures functionally similar to THC. Synthetic cannabinoids may contain Schedule I controlled substances or controlled substance analogues and have purported physchotropic effects when smoked or ingested.
The Lightners operated a chain of head shops -- retail stores specializing in drug and smoking paraphernalia -- doing business as Twilight Boutique, where they sold synthetic cannabinoids along with accessories such as bongs, pipes and rolling papers, according to court documents.
They franchised the Twilight Boutique on Madison Avenue in Lakewood to Drummond for a percentage of the store’s monthly revenue. Drummond also sold synthetic cannabinoids from the store, according to the court documents.
The Lightners expanded their business to include several locations in Ohio after they began selling synthetic cannabinoids. They controlled Twilight Corp., located on Royalton Road in Grafton, and the Twilight Boutique stores located on State Route 43 in Streetsboro, Cleveland Road West in Sandusky, Pearl Road in Brunswick, North Abbe Road in Elyria, Lorain Road in Fairview Park, Whipple Avenue in Plain Township, North Court Street in Athens, Midway Plaza in Tallmadge, South Alex Road in West Carrollton, West Fourth Street in Ontario and Clinton Plaza Drive in Oneonta, N.Y., according to court documents.
The Lightners presented laboratory reports to others, including employees, alleging that the synthetic cannabinoids sold in the Twilight Boutique stores did not contain controlled substances or controlled substance analogues in an effort to give the appearance that the synthetic cannabinoids were legal when the Lightners knew they were illegal, according to court documents.
Albright manufactured and sold synthetic cannabinoids through his company, Desert Distribution, LLC and Albright and Picard sold synthetic cannabinoids through their company, Royal Dutch, LLC.
Prosecutors forfeited nearly $400,000 in cash as well as several firearms and automobiles as part of the case.
This case is being prosecuted by Assistant United States Attorneys Carmen Henderson, Teresa Dirksen and Christian M. Stickan following an investigation by the Drug Enforcement Administration -- Tactical Diversion Squad, Internal Revenue Service -- Criminal Investigations, Lorain County Drug Task Force, Medina County Drug Task Force, Portage County Drug Task Force, Westshore Enforcement Bureau, MEDWAY Drug Enforcement Agency, METRICH Enforcement Unit, Cuyahoga County Sheriff’s Office, Linndale Police Department, Lakewood Police Department, Cleveland Police Department, Ontario Police Department, Sandusky Police Department, Ohio HIDTA and the Ohio State Patrol.
Georgia Man Sentenced for Conspiracy to Possess Fraudulent Identification DocumentsRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JARED HARRIS, age 26, of Riverdale, Georgia, was sentenced yesterday after previously pleading guilty to a one-count Superseding Bill of Information charging him with conspiracy to possess with intent to use five or more fraudulent identification documents.
U.S. District Judge Mary Ann Vial Lemmon sentenced HARRIS to serve 21 months in prison, to be followed by three years of supervised release. Additionally, HARRIS was ordered to pay restitution in the amount of $13,170 to the victim, Wal-Mart Corporation.
According to court documents, HARRIS, together with another Georgia man, co-conspirator TERRELL WASHINGTON, drove through several states in possession of multiple stolen U.S. Treasury checks, fraudulent forms of identification, and proceeds of their illegal check cashing scheme. The pair was ultimately caught in a Kenner Wal-Mart after a cashier identified HARRIS and WASHINGTON, as the individuals who had first attempted to use fake IDs to cash a stolen U.S. Treasury check. WASHINGTON’s trial is scheduled for June 13, 2016.
U.S. Attorney Polite praised the work of the U.S. Secret Service in investigating this matter. Assistant U.S. Attorney Michael M. Simpson was in charge of the prosecution.
Four Individuals Sentenced on Federal Charges Related to Tax Refund SchemeRead the Press Release
St. Louis, MO – The final of four individuals that participated in a scheme to file false claims for federal tax refunds for tax years 2008 through 2011 was sentenced today to two years in prison. Ninety-three false federal income tax returns were filed by the defendants as part of a scheme, which claimed approximately $335,297 in fraudulent refunds and which caused a loss to the United States government of $184,464.
"The object of these fraudulent refund schemes is to defraud the government and the taxpaying public," said Karl Stiften, Special Agent in Charge of IRS Criminal Investigation. "The prosecution of these individuals is a vital element in maintaining public confidence in our tax system."
Romel Tomlin, with addresses in Grand Prairie, TX and Phoenix, AZ, was sentenced today; Tyra Tomlin, Phoenix, AZ, was sentenced in January to 24 months in prison; Keith Hebb, St. Louis, and Jermaine Irons, St. Louis, were each sentenced in January to five years of probation. They appeared before United States District Judge Rodney W. Sippel.
This case was investigated by Internal Revenue Service-Criminal Investigation. Assistant United States Attorney Charles Birmingham handled the case for the U.S. Attorney's Office.
Fort Apache Man Sentenced to Prison for Sexual AbuseRead the Press Release
PHOENIX – On April 18, 2016, Jerome Remijo Reano, 21, of Whiteriver, Arizona, a member of the Fort Apache Indian Reservation, was sentenced by U.S. District Judge Susan R. Bolton to 336 months in federal prison to be followed by lifetime supervised release. Reano had previously pleaded guilty to one count of sexual abuse.
The investigation revealed Reano had sexually abused two minors, and the abuse occurred on the Fort Apache Indian Reservation where the victims were also member/eligible.
The investigation in this case was conducted by the Bureau of Indian Affairs and the White Mountain Apache Tribal Police Department. The prosecution was handled by Anthony W. Church, Assistant U.S. Attorney, District of Arizona, Phoenix.
CASE NUMBER: CR-15-08073-PCT-SRB
RELEASE NUMBER: 2016-036_ Reano
# # #
For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
Former U.S. Postal Letter Carrier Admits Role in Stealing Tax Refund Checks as Part of ScamRead the Press Release
CAMDEN, N.J. – A former U.S. Postal employee from Burlington County, New Jersey, today admitted his role in a conspiracy to steal income tax refund checks from the U.S. Mail, U.S. Attorney Paul J. Fishman announced.
Earl Champagne, 47, of Willingboro, New Jersey, pleaded guilty before U.S. District Judge Robert B. Kugler in Camden federal court to an information charging him with one count of theft of U.S. Mail and one count of theft of government money.
Stolen Identity Refund Fraud
Stolen Identity Refund Fraud (SIRF) is a common type of fraud committed against the United States government that results in more than $2 billion in losses annually to the Treasury. SIRF schemes generally share a number of hallmarks:
• SIRF perpetrators obtain personal identifying information, including Social Security numbers and dates of birth, from unwitting individuals, who often reside in the Commonwealth of Puerto Rico.
• Participants complete Individual Income Tax Return 1040 Forms using the fraudulently obtained information, falsifying wages earned, taxes withheld and other data and always ensuring the fraudulent form generates a tax refund check from the U.S. Treasury.
• They direct the U.S. Treasury Department to mail the fraudulently obtained checks to locations the perpetrators control or can access. In some cases, SIRF perpetrators bribe mail carriers to remove the checks from their mail routes.
• With the checks in hand, they generate cash proceeds by depositing the Treasury checks into bank accounts that they control.
According to documents filed in this case and statements made in court:
From 1995 to November 2014, Champagne was employed by the U.S. Postal Service as a mail carrier. He was required to deliver mail that had been placed in the mail stream for delivery and was assigned to deliver mail to locations in Pennsauken, New Jersey.
Champagne admitted that from March 2014 to July 2014 he stole U.S. Treasury Checks from the mail and gave them to others. He said he was approached by two individuals who asked him to retrieve checks from the mail with the promise that he would be paid. The individuals told Champagne that the checks were IRS checks and that they would mostly be addressed to individuals with “Spanish” names. The individuals expected to either pick up the checks from Champagne or for him to notify them that the checks were in the mailbox so that they could retrieve the checks themselves. For this service, Champagne was paid $50 per check for every check stolen from the mail. Champagne admitted that he stole 72 U.S. checks totaling $442,776.
The theft of U.S. Mail and theft of government money charges to which Champagne pleaded guilty each carry a maximum potential penalty of 15 years in prison and a fine of $250,000. Champagne's sentencing is scheduled for Aug. 3, 2016.
U.S. Attorney Fishman credited special agents of the IRS-Criminal Investigation, under the direction of Special Agent in Charge Jonathan Larsen, and U.S. Postal Service, Office of Inspector General, under the direction of Special Agent in Charge Monica Weyler, with the investigation leading to today’s guilty plea.
The government is represented by Assistant U.S. Attorney Jason M. Richardson of the U.S. Attorney's Office Criminal Division in Camden.
Defense counsel: Michael Riley Esq., Mount Holly, New Jersey
Former SunTrust Mortgage VP and Loan Officers Sentenced to PrisonRead the Press Release
ALEXANDRIA, Va. – Mohsin Raza, 51, and his wife, Humaira Iqbal, 40, of Woodbridge, were sentenced to 24 months and 15 months in prison, respectively, for conspiracy and wire fraud affecting a financial institution.
The four defendants were convicted by a federal jury on Feb. 3. According to court documents and evidence presented at trial, in 2005 Raza was hired by SunTrust Mortgage (STM) as a vice-president tasked with opening an office in Annandale. Raza hired his wife and her brothers, Farukh Iqbal, 41, and Mohammad Ali Haider, 33, both of Chantilly, to work as loan officers at SunTrust Mortgage. From 2006 until 2007, when the defendants left SunTrust Mortgage, they falsified loan applications for borrowers and purchased fake tax documents to support the false loan applications. SunTrust Mortgage underwriters in Richmond approved the loans totaling several million dollars based in large part upon the fake documents in the files, and ultimately borrowers were given loans to buy homes that they could not afford.
Iqbal and Haider were each sentenced today to one year and one day in prison. In addition to their prison sentences, Raza and Humaira Iqbal were also ordered to forfeit two properties and $40,000 and pay restitution to victims in the amount of $1,923,324.53.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; Paul Abbate, Assistant Director in Charge of the FBI’s Washington Field Office; and Olga Acevedo, Special Agent in Charge, Federal Housing Finance Agency Office of Inspector General, made the announcement after sentencing by U.S. District Judge Claude M. Hilton. Assistant U.S. Attorney Jack Hanly and Special Assistant Attorney Joseph Capone prosecuted the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1:15-cr-118.
Former Newburgh City Fire Chief Pleads Guilty to Wire Fraud for Fraudulently Obtaining Retirement BenefitsRead the Press Release
Preet Bharara, United States Attorney for the Southern District of New York, announced that MICHAEL J. VATTER pled guilty today to wire fraud in connection with state pension benefits before U.S. District Judge Cathy Seibel in White Plains federal court.
Manhattan U.S. Attorney Preet Bharara said: “Michael Vatter, the former Newburgh City Fire Chief, cheated the public he swore to serve by double-dipping, receiving both a public pension and a paycheck at the same time. Today, he admitted to his fraud, and he will be held accountable for his corruption.”
According to the Indictment:
VATTER served in the Newburgh City Fire Department in various capacities from in or about 1980 until his retirement in May 2000. Following his retirement, VATTER attended law school and practiced law. In November 2009, the Indictment charges, VATTER returned to the Newburgh Fire Department as its Chief. The Indictment further alleges that VATTER failed to report his return to the public sector New York State and Local Police and Fire Retirement System despite knowing he had a duty under state law to do so. As a result, VATTER received more than $95,000 in pension benefits that he was not entitled to receive.
Under New York State law, a public sector retiree who is receiving a pension and who returns to public service cannot receive both pension payments and a public sector paycheck. The law permits public sector retirees to earn up to $30,000 per year from public sector employment before their pension benefits are cut off for that year.
VATTER, 57, of Walkill, New York, faces a maximum sentence of 20 years in prison.
Mr. Bharara praised the investigative work of the Federal Bureau of Investigation, the Office of the New York State Comptroller, and the Orange County Sheriff’s Office.
This prosecution is being handled by the Office’s White Plains Division. Assistant U.S. Attorney James McMahon is in charge of the prosecution.
16-104 ###
Former IRS Employee Pleads Guilty to Theft of Government FundsRead the Press Release
CONTACT: Barbara Burns
PHONE: (716) 843-5817
FAX: (716) 551-3051BUFFALO, N.Y.-U.S. Attorney William J. Hochul Jr. announced today that Yvonne E. Borders, 43, of Cheektowaga, NY, pleaded guilty to theft of government funds before U.S. Magistrate Judge H. Kenneth Schroeder, Jr. The charge carries a maximum penalty of one year in jail and a $100,000 fine.
Assistant U.S. Attorney Elizabeth R. Moellering, who is handling the case, stated that Borders applied for and collected unemployment benefits from the United States Department of the Treasury that she was not entitled to because she was working at the time for the Internal Revenue Service. Individuals are eligible for unemployment benefits when they become unemployed through no fault of their own and meet certain eligibility requirements. However, the defendant certified claims for benefits while she was employed as a contact representative with the IRS and failed to report this work to the New York State Department of Labor.
In total, Borders collected $18,550 in benefits that she was not entitled to from January 2009 through December 2013.
The plea is the result of an investigation by the Department of the Treasury, Treasury Inspector General for Tax Administration, under the direction of Robert E. O’Malley, the United States Department of Labor, Office of Inspector General, Office of Labor Racketeering and Fraud Investigations, under the direction of Acting Special Agent in Charge Jonathan Mellone, New York Region, and the New York State Department of Labor, under the direction of Commissioner Roberta Reardon.
Sentencing is scheduled for July 27, 2016 at 10:30 a.m. before Judge Schroeder.Former Fox News Commentator Pleads Guilty to FraudRead the Press Release
ALEXANDRIA, Va. – Wayne Shelby Simmons, 62, of Annapolis, Maryland, a former Fox News commentator who has falsely claimed he spent 27 years working for the Central Intelligence Agency (CIA), pleaded guilty today to major fraud against the government, wire fraud, and a firearms offense.
“Wayne Simmons is a convicted felon with no military or intelligence experience,” said Dana J. Boente, U.S. Attorney for the Eastern District of Virginia. “Simmons admitted he attempted to con his way into a position where he would have been called on to give real intelligence advice in a war zone. His fraud cost the government money, could have put American lives at risk, and was an insult to the real men and women of the intelligence community who provide tireless service to this country. This case is a prime example of this office’s ongoing commitment to vigorously prosecute government fraud and threats to national security.”
“Mr. Simmons lied about his criminal history and CIA employment in order to fraudulently obtain government contracts, and separately, defrauded a victim through a phony real estate investment deal,” said Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office. “With these criminal actions, Mr. Simmons abused the trust of others, both in and outside of government, for his own personal financial gain. I commend the work of the talented FBI personnel and prosecutors who vigorously pursued this case and brought about today’s guilty plea.”
In a statement of facts filed with his plea agreement, Simmons admitted he defrauded the government in 2008 when he obtained work as a team leader in the U.S. Army’s Human Terrain Systems program, and again in 2010 when he was deployed to Afghanistan as a senior intelligence advisor on the International Security Assistance Force’s Counterinsurgency Advisory and Assistance Team. Simmons admitted making false statements about his financial and criminal history, and admitted that there are no records or any other evidence that he was ever employed by or worked with the CIA, or ever applied for or was granted a security clearance by that agency. Simmons also admitted that in order to obtain the senior intelligence advisor position, he lied about work he had done a year earlier as a team leader on the Human Terrain Systems program. Simmons admitted to making similar false statements in 2009 as well, in an unsuccessful attempt to obtain work with the State Department’s Worldwide Protective Service.
As to the wire fraud charge, Simmons admitted to defrauding an individual victim, identified as E.L., out of $125,000 in connection with a bogus real estate investment. Simmons admitted to sending E.L. promised monthly disbursements to make it appear as if her funds had been invested as promised, and to repeatedly lying to her about the whereabouts of her money in order to perpetuate the fraud. As Simmons admitted, he simply spent the funds on personal purposes and there was never any actual real estate investment project.
As to the firearms charge, Simmons admitted that at the time he was arrested in this case, he was unlawfully in possession of two firearms, which he was prohibited from possessing on account of his prior felony convictions, including a prior Maryland felony conviction and two prior federal felony firearms convictions.
Simmons was indicted by a federal grand jury on Oct. 14, 2015, and faces a maximum penalty of 10 years in prison on the major fraud against the government count, a maximum penalty of 20 years in prison on the wire fraud count, and a maximum penalty of 10 years in prison on the felon-in-possession of a firearm count when sentenced on July 15. The maximum statutory sentences are prescribed by Congress and are 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.
Dana J. Boente, U.S. Attorney for the Eastern District of Virginia; and Paul M. Abbate, Assistant Director in Charge of the FBI’s Washington Field Office, made the announcement after the plea was accepted by Senior U.S. District Judge T.S. Ellis, III. Assistant U.S. Attorneys Paul J. Nathanson and James L. Trump, along with the assistance of Senior Trial Attorney Robert E. Wallace of the Counterintelligence and Export Control Section of the Department of Justice’s National Security Division are prosecuting the case.
A copy of this press release may be found on the website of the U.S. Attorney’s Office for the Eastern District of Virginia. Related court documents and information may be found on the website of the District Court for the Eastern District of Virginia or on PACER by searching for Case No. 1: 15-cr-293.
Former Employee of Shuttered Financial Services Firm, Barbara Jean Kelsey, Sentenced to 78 Months in Prison for Fraud and Money LaunderingRead the Press Release
Investigators Recover and Return Over $1 million to Victims
GRAND RAPIDS, MICHIGAN —U.S. Attorney Patrick A. Miles, Jr. announced today that Barbara Jean Kelsey of Elkhart, Indiana was sentenced by U.S. District Judge Janet T. Neff to a total of 78 months in prison for conspiracy to commit mail fraud and wire fraud and substantive money laundering crimes. Kelsey pled no contest to the charges on November 13, 2015.
U.S. Attorney Miles stated: “Financial fraud is a crime of greed and opportunity. When a person uses fraud to decimate another individual’s financial security, they deserve to face a significant prison term.”
Kelsey was an employee of the financial services firm Fabian & Associates, LLC located in Kalamazoo. Along with Joseph Stephen Fabian, the principal of Fabian & Associates, Kelsey defrauded more than 30 clients of the firm causing losses of over $3.8 million between 2007 and 2010. Fabian and Kelsey used a variety of ruses to induce clients and prospective clients to withdraw money from their existing retirement accounts, investment accounts, bank accounts, and other sources to place into investment products that the firm recommended. But Fabian fabricated many of the investment products that were recommended. Or, when the recommendation was for a legitimate investment, Fabian and Kelsey failed to deposit the money on their clients’ behalf. Kelsey assisted Fabian by creating shell corporations and opening bank accounts to divert client monies intended for investment. She represented herself to clients as a Certified Public Accountant even though she had no more than a high school education. She moved client monies between various accounts without any regard for accounting. Investigators traced nearly $1 million to Kelsey’s personal bank accounts, which Kelsey spent on herself, including the purchase of a house.
Judge Neff labeled Kelsey’s crimes as “egregious,” “immoral,” and “unconscionable.” Many of Fabian’s and Kelsey’s victims were of retirement age or near-retirement age and also included individuals and families looking for safe investment opportunities to provide income to support special-needs children or to deal with health problems and attendant medical expenses.
Fabian is currently serving a 92 month prison sentence issued by Judge Neff in 2012. Since that time, the United States has recovered through forfeiture proceedings over $1 million and applied the recoveries to victim restitution.
“Ms. Kelsey portrayed herself as a competent, trustworthy accountant, and she was neither,” said David P. Gelios, Special Agent in Charge, FBI Detroit Division. “She preyed upon individuals that were taking steps to financially secure their families’ futures. Rather than grow their investments, Kelsey misappropriated funds provided to Fabian & Associates, LLC for her own personal use, and irreparably damaged the financial futures of the victims in this case. Today, Ms. Kelsey is being held to account for her crimes.”
The case was prosecuted by Assistant U.S. Attorney Joel S. Fauson and investigated by the Federal Bureau of Investigation’s Kalamazoo Resident Agency.
END
Federal, State and Local Agencies Join Forces to Reduce Violence and Recidivism Among Formerly Incarcerated Individuals in Luzerne CountyRead the Press Release
HARRISBURG – In recognition of the designation of April 24-30, 2016 as National Reentry Week by the U.S. Department of Justice, the United States Attorney’s Office for the Middle District of Pennsylvania hosted an organizational meeting at Wilkes University for law enforcement officers, prosecutors, court personnel, prison officials, probation/parole officers, treatment/reentry service providers, community representatives and other stakeholders who desire to participate in a reentry call-in program designed to reduce violence and recidivism among formerly incarcerated individuals reentering the Luzerne County community from county, state and federal prisons.
Removing barriers to successful reentry helps formerly incarcerated individuals compete for jobs, attain stable housing, and support their families. An important part of that commitment is preparing those who have paid their debt to society for substantive opportunities beyond the prison gates, and addressing collateral consequences to successful reentry that too many returning citizens encounter.
The Department of Justice requested each United States Attorney’s Office in the country to hold a reentry-related event. As stated by the Department in the memorandum announcing the initiative, “[s]upporting successful reentry is an essential part of our mission to promote public safety. If we can reduce recidivism by helping individuals return to productive, law-abiding lives, we will reduce crime across this country, make our prisons safer, and make our neighborhoods better places to live.”
The meeting today at Wilkes University in Wilkes-Barre is the initial gathering of what the U.S. Attorney’s Office has called the Luzerne County Reentry Coalition. The speakers included representatives of the Pennsylvania Commission on Crime and Delinquency, the Pennsylvnaia Board of Probation and Parole, the U.S. Attorney’s Offices for the Middle District and Eastern District of Pennsylvania, and Al Murray, Esquire, who developed the CARES Program as part the Reentry Program in the Middle District of Pennsylvania.
# # #
Federal Grand Jury IndictmentsRead the Press Release
Contact Person: Beth Drake (803) 929-3000
####
United States Attorney Bill Nettles stated today that a Federal Grand Jury in Florence, South Carolina, returned Indictment(s) against the following: Man Arrested on Francis Marion University Campus on Counterfeit Charges
Justin Daniels, age 20, of Florence, South Carolina was charged in a 2-count indictment with manufacturing counterfeit $100.00 Federal Reserve Notes, a violation of Title 18, U. S. C. §471 and possessing counterfeit $100.00 Federal Reserve Notes, a violation of Title 18, U. S. C. §472. The maximum penalty Daniels could receive is 20 years imprisonment and a maximum fine of $250,000.00. The case was investigated by agents of the United States Secret Service and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Federal Corrections Officer Indicted on Bribery and Contraband Charges
Angela McLeod, age 44, of Dillon, South Carolina was charged in a 2-count indictment with bribery, a violation of Title 18, U. S. C. §201(b)(2)(C) and bringing contraband into a federal prison, a violation of Title 18, U. S. C. §1791(a)(1). The maximum penalty McLeod could receive is 15 years imprisonment and a maximum fine of $250,000.00. The case was investigated by agents of the Office of Inspector General for the Department of Justice and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Man Indicted for Possession of Child Pornography
Billy Loyd, age 45, of Myrtle Beach, South Carolina was charged in a 1-count indictment with possession of child pornography, a violation of Title 18, U. S. C. §2252A(a)(5)(B). The maximum penalty Loyd could receive is 10 years imprisonment and a maximum fine of $250,000.00. The case was investigated by agents of the Bureau of Immigration and Custom Enforcement and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
Man Indicted for Possession of Child Pornography
Daniel Joe Wells, age 68, of Myrtle Beach, South Carolina was charged in a 1-count indictment with possession of child pornography, a violation of Title 18, U. S. C. §2252A(a)(5)(B). The maximum penalty Wells could receive is 10 years imprisonment and a maximum fine of $250,000.00. The case was investigated by agents of the Bureau of Immigration and Custom Enforcement and is assigned to Assistant United States Attorney A. Bradley Parham of the Florence office for prosecution.
The United States Attorney stated that all charges in these Indictments are merely accusations and that all defendants are presumed innocent until and unless proven guilty.Fayette County Man Charged with Possessing and Distributing Child PornographyRead the Press Release
PITTSBURGH - A Fayette County resident has been indicted by a federal grand jury in Pittsburgh, on charges of distribution and possession of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The six-count indictment, returned on April 27, named Matthew Robert Sible, 30, of Fairchance, Pa., as the sole defendant.
According to the indictment, on July 13, 2015, July 23, 2015, August 4, 2015, and August 6, 2015, Sible distributed images containing material depicting the sexual exploitation of minors, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age. The indictment further alleges that on August 19, 2015 and September 10, 2015, Sible knowingly possessed and knowingly accessed with intent to view images in computer graphic files, the production of which involved the use of minors engaging in sexually explicit conduct, some of whom had not yet attained 12 years of age.
The law provides for a maximum total sentence of 120 years in prison, a fine of $1,500,000.00 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 Department of Homeland Security, Immigration & Customs Enforcement, Homeland Security Investigations, and Office of Pennsylvania’s Attorney 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.
This case was brought as part of Project Safe Childhood, a nationwide initiative launched in
May 2006 by the Department of Justice to combat the growing epidemic of child sexual exploitation and abuse. Led by the United States Attorneys' Offices and the Criminal Division's Child Exploitation and Obscenity Section, Project Safe Childhood marshals federal, state, and local resources to locate, apprehend, and prosecute individuals who sexually exploit children, and to identify and rescue victims. For more information about Project Safe Childhood, please visit www.justice.gov/psc.
FACT SHEET: During National Reentry Week, Reducing Barriers to Reentry and Employment for Formerly Incarcerated IndividualsRead the Press Release
President Obama Establishes Federal Interagency Reentry Council
An estimated 70 million or more Americans have some kind of criminal record. Each year, more than 600,000 individuals are released from Federal and State prisons, and millions more are released each year from local jails. Promoting the rehabilitation and reintegration of individuals who have paid their debt to society makes communities safer by reducing recidivism and victimization; assists those who return from prison, jail, or juvenile justice facilities to become productive citizens; and saves taxpayer dollars by lowering the direct and collateral costs of incarceration.
Providing incarcerated individuals with job and life skills, education programming, and mental health and addiction treatment increases the likelihood that they will be successful when released. Policies that limit opportunities for people with criminal records create barriers to employment, education, housing, health care, and civic participation. All of these are critical to reducing recidivism and strengthening communities.
As part of National Reentry Week, the Administration has taken a series of steps to reform the federal approach to reentry by addressing barriers to reentry, supporting state and local efforts to do the same, and engaging the private sector to provide individuals who have earned a second chance the opportunity to participate in the American economy.
Today, the President will sign a Presidential Memorandum establishing the Federal Interagency Reentry Council to lead the Government’s work on the rehabilitation and reintegration of individuals returning to their communities from prisons and jails. The Attorney General has successfully led a Cabinet-level working group for the last five years, and this Memorandum will build on that success and ensure that the Federal Government will continue this important work.
The Administration is taking important steps to reduce barriers to employment for formerly incarcerated individuals:
- The Office of Personnel Management (OPM) is publishing a proposed rule that would prohibit federal agencies from asking questions about criminal and credit history to applicants for tens of thousands of jobs in the competitive service, as well as the career senior executive service, until a conditional offer of employment has been made. People with criminal records are already eligible to compete for the vast majority of federal jobs; the proposed rule builds on current practice at many agencies by ensuring that hiring managers are making selection decisions based solely on applicants' qualifications.
Early inquiries into an applicant's criminal history may discourage motivated, well-qualified individuals who have served their time from applying for a federal job. Early inquiries could also lead to the disqualification of otherwise eligible candidates, regardless of whether an arrest actually resulted in charges or a conviction, and regardless of whether consideration of an applicant's criminal history is justified by business necessity. These barriers to employment unnecessarily narrow the pool of eligible and qualified candidates for federal employment, while also limiting opportunities for those with criminal histories to obtain the means to support themselves and their families.
The rule would also allow agencies to request exceptions where there are legitimate job-related reasons why they might need to obtain a candidate's background information sooner in the hiring process. Unless an exception is granted, only after a conditional job offer is made will candidates be asked questions about criminal and credit history that may bear on their suitability for federal employment.
- The Presidential Memorandum directs all agencies and departments to review their procedures for conducting a suitability determination for a job applicant with a criminal record. These suitability determinations evaluate each individual’s character and conduct and consider such factors as the relevance of any past criminal conduct to the job; the nature, seriousness, recency, and circumstances of any criminal conduct; the age of the individual at the time of the conduct; contributing societal conditions; and whether any efforts have been made toward rehabilitation.
- The Presidential Memorandum directs all agencies with discretion to grant or deny occupational licenses to revise their procedures, consistent with the need to protect public safety, to ensure that a criminal record is not an automatic disqualifier and that the determination to grant or deny a licenses is made after consideration of all relevant facts and circumstances.
Engaging the Private Sector and Honoring Champions of Change
The President continues to call on members of the private sector to improve their communities by creating a pathway to a job for a formerly incarcerated individual. On April 11th, the White House hosted 19 companies to launch the Fair Chance Business Pledge, including American Airlines, Busboys and Poets, The Coca-Cola Company, Facebook, Georgia Pacific, Google, Greyston Bakery, The Hershey Company, The Johns Hopkins Hospital and Health System, Koch Industries, Libra Group, PepsiCo, Prudential, Starbucks, Uber, Under Amour/Plank Industries, Unilever and Xerox.
In the two weeks since these initial companies took the pledge, an additional 93 companies and organizations have joined the pledge, including Microsoft, Best Buy, Lyft, Kellogg Company, Staples, TrueBlue, the Oklahoma City Thunder, Catholic Charities USA, NAACP, Manufacturing Alliance of Philadelphia, American Civil Liberties Union, the American Sustainable Business Council and dozens of small and medium-sized companies from across the country.
Together, these 112 companies and organizations employ well over 1.5 million people. By joining the pledge, they are committing to take action to reduce barriers to a second chance, such as “banning the box,” ensuring information regarding a criminal record is considered in the proper context, and engaging in hiring practices that do not unnecessarily place jobs out of reach for those with criminal records. Companies and organizations interested in joining the pledge can continue to do so by visiting www.whitehouse.gov/fairchancepledge.
This past Wednesday, the White House honored 10 individuals as “White House Champions of Change for Expanding Fair Chance Opportunities.” These individuals were recognized for their leadership and tireless work to remove barriers to a second chance for those with a criminal records.
Additional Federal Agency Actions To Reduce Barriers During National Reentry Week
As part of National Reentry Week, the Federal Interagency Reentry Council agencies have announced additional steps to improve the rehabilitation and reintegration of formerly incarcerated individuals:
- The Council of Economic Advisors released a report, “Economic Perspectives on Incarceration and the Criminal Justice System,” and hosted an event with the Brennan Center for Justice and the American Enterprise Institute focused on the economic impact of the criminal justice system and identified cost-effective ways to reduce crime and incarceration rates.
- The Department of Justice (DOJ) announced its “Roadmap to Reentry,” outlining five evidence-based principles of reform to be implemented by the Bureau of Prisons to ensure DOJ’s commitment to reentry is incorporated throughout incarceration – from intake to release.
- Attorney General Lynch sent a letter to governors asking them to allow individuals reentering the community to exchange their corrections identification card for a state identification cards or to accept a corrections identification card as a form of identification. The lack of state-issued identification is another common barrier in getting a job, housing, or opening a bank account.
- The U.S. Attorneys’ Offices and Bureau of Prisons are hosting hundreds of events in all 50 states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands, including job fairs and resource fairs, mock interview sessions, resume workshops, family engagement events.
- The Department of Housing and Urban Development (HUD) released guidance on the application of Fair Housing Act standards to the use of criminal records by providers of housing and guidance for public housing authorities on excluding the use of arrest records in housing decisions.
- HUD and DOJ announced recipients of $1.75 million in grants for Public Housing Authorities and nonprofit legal service organizations to assist young people residing in public housing or who would be residing in public housing but for their criminal record.
· The Department of Health and Human Services released guidance clarifying that individuals in state or local halfway houses and those on probation or parole are not excluded from Medicaid and describing how states can better facilitate access to Medicaid services for individuals reentering the community.
- The Department of Veterans Affairs (VA) is participating in 120 events at Bureau of Prison facilities and VA medical centers to serve justice-involved Veterans. VA’s Veterans Justice Outreach initiative is active in over 350 Veterans Treatment Courts and other Veteran-focused court programs and 1,284 local jails.
Eagle Butte Man Sentenced for Assault with a Dangerous WeaponRead the Press Release
United States Attorney Randolph J. Seiler announced that an Eagle Butte, South Dakota, man convicted of Assault with a Dangerous Weapon was sentenced on April 25, 2016, by U.S. District Judge Roberto A. Lange.
Emmet Bruguier, Jr., age 43, was sentenced to 33 months in custody, followed by 2 years of supervised release, and a special assessment of $100 to the Federal Crime Victims Funds.
Bruguier was indicted by a federal grand jury on August 11, 2015. He pled guilty on February 8, 2016.
The conviction stemmed from an incident on or about June 10, 2015, when Bruguier exited a building and approached the victim who was standing outside of the building. The victim took his jacket off and squared off with Bruguier. At that point, Bruguier brandished a box cutter. The victim attempted to run away from Bruguier, but Bruguier swung the box cutter in a downward motion, making contact with the victim’s back. As a result, the victim sustained a cut near his left shoulder and another near his lower back.
This case was investigated by the Cheyenne River Sioux Tribe Law Enforcement Services. Assistant U.S. Attorney Jay Miller prosecuted the case.
Bruguier was immediately turned over to the custody of the U.S. Marshals Service.
District Man Sentenced to Six Years in Prison for Sexually Assaulting Homeless WomanRead the Press Release
WASHINGTON – Ernest L. Williams, 65, of Washington, D.C., was sentenced today to six years of incarceration for sexually assaulting a homeless woman in a Northwest Washington alley, U.S. Attorney Channing D. Phillips announced.
Williams was found guilty in February 2016 of assault with intent to commit first-degree sexual abuse, following a trial before the Honorable Milton C. Lee in the Superior Court of the District of Columbia. Judge Lee sentenced Williams to a total of 15 years in prison, but suspended all but six years on the condition that he successfully complete five years of supervised probation. Williams also must register as a sex offender for the rest of his life.
According to the government’s evidence, Williams and the victim were both homeless and staying at a park on North Capitol Street. On Oct. 10, 2014, both had been drinking during the day and the victim became hungry. That night, Williams offered to go with her to a local carry-out to get some food. However, on the walk, he made an excuse to cut through an alley off the unit block of Florida Avenue NW. Once in the alley, he pinned her against a fence and started sexually assaulting her. She screamed “help” and rape” repeatedly and tried to fight back, but he overpowered her. He hit her in the face, sexually assaulted her on the ground.
A woman in a nearby house heard the screams and called the police. When officers from the Metropolitan Police Department (MPD) arrived, Williams was on top of the victim. He was arrested and has been in custody ever since.
In announcing the sentence, U.S. Attorney Phillips commended the work of those who investigated the case from the Metropolitan Police Department. He also acknowledged the efforts of those who worked on the case for the U.S. Attorney’s Office, including former Assistant U.S. Attorney Jeff Cook; Michael Ambrosino, Special Counsel for DNA and Forensic Evidence; Criminal Investigators Mark Fitzgerald, Mark Crawford and Melissa Matthews; Victim/Witness Advocate Lezlie Richardson; Paralegal Specialist Tierra Nanches; Information Technology Specialist Anisha Bhatia, and Legal Intern Sontanna Cremins. Finally he commended the work of Assistant U.S. Attorney Nicholas Miranda, who investigated and prosecuted the case.
District Court Enters Permanent Injunction Against Former Owner and Operator of Compounding Pharmacies to Enjoin Distribution of Certain Sterile Drugs ProductsRead the Press Release
The U.S. District Court for the Middle District of Florida entered a permanent injunction against Paul W. Franck, who has owned and operated numerous compounding pharmacies, to enjoin the distribution of certain sterile drugs products, the Department of Justice announced today.
“The American people must be protected from compounded sterile drugs that pose a risk to the public health,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “The Department of Justice will continue to work aggressively with the FDA to deter compounding pharmacies that distribute adulterated or misbranded drugs and put patients at risk of significant harm.”
The department filed a complaint in the District Court at the request of the Food and Drug Administration (FDA), alleging that Franck violated the federal Food, Drug and Cosmetic Act (FDCA) by causing drugs to become adulterated and misbranded while such drugs were held for sale after shipment of one or more of their components in interstate commerce.
As alleged in the complaint, Franck has owned and operated numerous compounding pharmacies in the state of Florida over the past 20 years and he was responsible for providing final approval for all decisions concerning manufacturing and quality operations. The complaint alleged that the defendant and/or his employees manufactured, processed, packed, labeled, held and/or distributed drugs, including sterile drugs such as antibiotics, antivirals, cardiovascular drugs, drugs for pain management and total parental nutrition.
In conjunction with the filing of the complaint, Franck agreed to settle the case. The permanent injunction entered by the court requires that Franck cannot manufacture, hold or distribute any sterile drugs at or from his facility unless and until his facility, equipment, processes and procedures used to manufacture, hold, or distribute drugs are established, maintained, operated and administered in conformity with the permanent injunction and all applicable laws and regulations and are adequate to prevent such drugs from becoming adulterated or misbranded as defined in the order. Franck must also, among other things, establish and maintain a system to report to FDA all adverse drug experiences associated with his drugs.
The complaint alleged that a FDA inspection of Franck’s Lab Inc., doing business as Trinity Care Solutions in May 2014, found conditions establishing that the drugs manufactured and distributed by the defendant were adulterated. For example, FDA observed dead spiders, beetles, ants, wasps and cockroaches in the ceiling panel directly above the sterile manufacturing area, the area where non-sterile gowns were stored and donned, and the sink where employees prepared for sterile processing. In addition, as alleged in the complaint, FDA found other insanitary conditions, such as lack of sufficient physical barriers to prevent the introduction of contamination from nearby construction; lack of positive air pressure in the clean room relative to surrounding rooms which compromises the cleanliness of the clean room’s air; and materials around the laminar flow hood’s vent that were not cleanable and were potential sources of viable and non-viable particles. The complaint alleged that the defendant violated the FDCA by causing articles of drug to become adulterated, in that they are prepared, packed, or held under insanitary conditions whereby they may have been rendered injurious to health, while such drugs were held for sale after shipment of one or more of their components in interstate commerce.
The complaint also alleged that FDA inspected the defendant’s pharmacy, Franck’s Lab Inc. dba Franck’s Compounding Pharmacy, between March and May 2012. As alleged in the complaint, FDA initiated this inspection following reports of eye infections in patients who had been administered an injectable sterile eye solution, Brilliant Blue G (BBG) and/or injectable drug products containing triamcinolone (triamcinolone drugs) that had been compounded by Franck’s Lab. As alleged in the complaint, FDA laboratory analysis of samples of the defendant’s compounded BBG collected during this inspection revealed that the drug was contaminated with a fungus as well as other microorganisms, and these fungus-type organisms matched the clinical isolates from patients who developed eye infections after administration of this drug.
The complaint alleged, among other things, that the defendant violated the FDCA by causing drugs to become adulterated in that they consisted in whole or in part of a filthy, putrid, or decomposed substance, while such drugs were held for sale after shipment of one or more of their components in interstate commerce and that because the defendant’s purportedly sterile drugs contained microbiological contamination, the defendant’s labeling for such drugs was false or misleading. According to the complaint, as of March 2013, the U.S. Center for Disease Control had identified 47 cases of eye infections among 45 patients in nine states linked to exposure to the defendant’s BBG and/or triamcinolone drugs.
In addition, as noted in the complaint, the defendant has conducted a number of recalls of drugs over the years manufactured and distributed from his pharmacies.
As part of the proposed consent decree submitted to the court, the defendant represented that as of the date of the entry of the decree, he is not engaged in the manufacture, holding, or distribution of any drugs, nor he is causing the manufacture, holding, or distribution of drugs. The permanent injunction provides that if the defendant intends to resume manufacturing, holding or distributing any drugs at or from his facility, he shall notify FDA in advance of doing so.
The permanent injunction includes limited, precise exceptions for drugs for animal use or any drug for which the defendant is the sponsor of a new drug application approved by FDA.
“Mr. Franck risked the health of the American public by compounding drugs under unacceptable conditions,” said Director Janet Woodcock of the FDA’s Center for Drug Evaluation and Research. “Today’s action reflects the FDA’s continued efforts to take appropriate and aggressive enforcement action against those who put patients’ health at risk by choosing not to follow the law.”
The government is represented by Trial Attorney Roger Gural of the Civil Division’s Consumer Protection Branch, with the assistance of Senior Counsel Michele Svonkin of the Department of Health and Human Services’ Office of General Counsel – Food and Drug Division.
Defendant Sentenced on Federal Bank Robbery ChargeRead the Press Release
United States Attorney Kenyen R. Brown of the Southern District of Alabama announces that United States District Court Judge Kristi K. DuBose sentenced Donald Keith Smith on April 29, 2016 to serve a term of imprisonment of 60 months followed by 3 years of supervised release for committing a Bank Robbery of the Regions Bank in Daphne, Alabama on October 29, 2015 in violation of 18 USC § 2113(a). The defendant had previously pled guilty before the Court on January 22, 2016.
This case was investigated by the Federal Bureau of Investigation, who worked in coordination with the Daphne Police Department and the Mobile Police Department to solve the crime. The case was prosecuted by Assistant United States Attorney Lawrence J. Bullard for the United States Attorney’s Office for the Southern District of Alabama.
DEA’s National Prescription Drug Take-Back Day is SaturdayRead the Press Release
Twice-annual event takes place from 10 a.m. to 2 p.m. April 30
Detroit, MI – After collecting and destroying 5.5 million pounds—2,762 tons—of unused prescription drugs in the past 5 years, the U.S. Drug Enforcement Administration (DEA) is continuing its efforts to take back unused, unwanted and expired prescription medications. The DEA invites the public to bring their potentially dangerous, unwanted medicines to one of over 5,000 collection sites around the country, including over 440 sites in the Detroit Field Division, that are manned by more than 3,800 of DEA’s tribal and local law enforcement partners. This service is free of charge, with no questions asked.
The public can find a nearby collection site by visiting www.dea.gov, clicking on the “Got Drugs?” icon, and entering their zip code into the search window, or they can call 800-882-9539. Only pills and other solids, like patches, will be accepted—the public should not bring liquids, needles or other sharps to take back sites.
America is presently experiencing an epidemic of addiction, overdose and death due to abuse of prescription drugs, particularly opioid painkillers. 6.5 million Americans abuse prescription drugs, according to the most recent National Survey on Drug Use and Health, more than abuse cocaine, heroin, and hallucinogens combined.
U.S. Attorney for the Eastern District of Michigan, Barbara McQuade said, “Prescription pill addiction has exploded in Michigan, and has led to a resurgence in heroin use and overdose deaths,” McQuade said. “We appreciate DEA’s effort to remove this poison from homes so that it does not end up in the wrong hands.”
DEA Special Agent in Charge Timothy J. Plancon said, “Most prescription drug abusers get their pills from their own family, or from their friends. Please take the proactive step to reduce substance abuse in the United States by removing unwanted prescription drugs from your home.”
Drug overdoses are now the leading cause of injury-related death in the United States, eclipsing deaths from motor vehicle crashes or firearms. The removal from homes of unwanted prescription pills that can be abused, stolen or resold is an easy way to help fight the epidemic of substance abuse and addiction.
U.S. Department of Justice
Drug Enforcement Administration
Timothy J. Plancon
Special Agent in Charge
Detroit Field Division
www.dea.gov
Date: April 29th, 2016
Contact: Rich Isaacson
Number: (313) 234-4310
Crawford County man sentenced for being a felon in possession of firearmsRead the Press Release
Evansville – United States Attorney Josh J. Minkler announced today that Richard Smitson, 50, of Crawford County, Indiana, was sentenced to 70 months in prison by U.S. District Chief Judge Richard L. Young following his guilty plea to two counts of possessing firearms after a felony conviction. This case was the result of an investigation by the Bureau of Alcohol, Tobacco, Firearms and Explosives and the Indiana State Police.
Immediately before sentencing, Smitson admitted that on October 14, 2014, and on February 4, 2015, he possessed a total of 26 firearms after having been convicted of a felony. Smitson admitted negotiating an agreement to sell two firearms to an undercover police officer. After arranging a second sale, Smitson was arrested and surrendered an additional twenty-four firearms to the Bureau of Alcohol, Tobacco, Firearms and Explosives that he unlawfully possessed.
Smitson has been convicted on eight drug-related felonies dating back to 1993 in Crawford County.
According to Assistant U.S. Attorney Todd S. Shellenbarger, who prosecuted the case for the government, Judge Young imposed three years of supervised release following Smitson’s release from prison. Smitson must submit to drug testing and drug abuse treatment while on supervision.
Couple Sentenced to Years in Prison in Scheme that Used Stolen Identities to Steal over $900,000 from California Disability SystemRead the Press Release
LOS ANGELES – A Lancaster couple has been sentenced, with each receiving several years in federal prison, for conspiring to defraud the California Employment Development Department (EDD) by filing fraudulent applications for disability benefits and obtaining more than $900,000 from the agency.
Robert Lee Lett, 48, who during the time of scheme lived in Lancaster and now claims a South Los Angeles residence, was sentenced on Monday to 57 months in federal prison by United States District Judge Andre Birotte Jr. His wife, LaTanya Annette Lett, 44, was also sentenced on Monday by Judge Birotte to 46 months in prison.
In addition to the prison terms, Judge Birotte ordered the couple to pay restitution in the total amount of $900,711.
The Letts each pleaded guilty to one count of conspiracy to commit mail fraud on January 25. According to court documents, including the plea agreements filed in this case, from 2011 to 2015, the Letts defrauded the EDD by filing 127 fraudulent disability applications. These applications were filed in the names of identity theft victims and included bogus certifications of disability with forged doctors’ signatures.
The Letts arranged to have mail received in the victims’ names at a dozen different addresses and repeatedly used the disability benefits cards they received in the mail to withdraw over $900,000 in cash from ATM’s during the four year period.
“This was a serious offense in which the defendants intended to steal at least $1.5 million, and actually obtained more than $900,000 over the course of several years,” said United States Attorney Eileen M. Decker. “Their fraudulent conduct continued even after law enforcement authorities executed a search warrant at their home seeking evidence related to their scheme. The crime was well-planned, repetitious and long-term, which has earned them terms in federal prison.”
This case is the result of an investigation by the Postal Inspection Service, California Employment Development Department, Investigation Division, and the United States Secret Service.
Byram Healthcare and Hollister, Inc. to Pay $20.9 Million to Resolve Kickback AllegationsRead the Press Release
The Department of Justice announced today that Hollister Inc. (Hollister), a manufacturer of disposable health care products, and Byram Healthcare Centers Inc. (Byram), a supplier of medical products, have agreed to pay $11.44 million and $9,372,882.50, respectively, to resolve allegations that Hollister paid unlawful kickbacks to Byram and that Byram received unlawful kickbacks from Hollister and several other manufacturers, with the intent to induce Byram to conduct promotional campaigns designed to refer patients to the manufacturers’ products. The settlement with Byram also calls for the company to pay $127,117.50 to the state of California to resolve allegations that Byram submitted falsely inflated claims to that state’s Medicaid program, Medi-Cal, in violation of California regulations.
“This settlement demonstrates the Justice Department’s continuing determination to prevent manufacturers and suppliers of medical devices covered by federal health care programs from paying or receiving kickbacks,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will not permit such illegal payments to taint the decision-making of those who serve the beneficiaries of these important programs.”
“We are committed to rooting out commercial bribery, especially in the healthcare industry where the payment of kickbacks erodes patients’ trust in the quality of their medical care,” said U.S. Attorney Carmen M. Ortiz for the District of Massachusetts. “These unlawful cash incentives also threaten the integrity of the health care system and siphon taxpayer dollars from our nation’s health care programs.”
“The FBI will aggressively investigate companies that engage in kickback schemes at the expense of both patients and taxpayers,” said Special Agent in Charge Harold H. Shaw of the FBI’s Boston Field Division. “Those who seek to exploit the nation’s health care system through bribes or other fraudulent conduct will be held accountable for their actions.”
The settlement with Hollister resolves allegations that, from 2007 through 2014, it paid kickbacks to Byram in return for marketing promotions, conversion campaigns and other referrals of patients to Hollister’s ostomy and continence care products. On seven occasions from 2007 through 2012, Hollister allegedly agreed to pay Byram the costs of bonus commissions (sometimes called spiffs) that Byram paid to its sales personnel for each new patient order for a Hollister product. In addition, each year from 2009 to 2014, Hollister allegedly agreed to pay Byram $200,000, for “catalog funding” that was actually intended to induce Byram’s recommendation of Hollister products to patients.
The settlement with Byram resolves the same catalog funding claims, as well as allegations that, in 2012 and 2013, Byram received numerous kickbacks from Hollister and three other manufacturers of ostomy and continence care products, namely Coloplast Corp., Montreal Ostomy and Safe N’ Simple, in return for Byram’s agreement to conduct promotional campaigns and to refer patients to the manufacturers’ products. The settlement with Byram also resolves allegations by the United States and the state of California that Byram submitted falsely inflated claims to the California Medi-Cal program in violation of California’s upper billing limit regulation, Cal. Code Regs., tit. 22, § 51008.1, which limits the amount a provider can bill for certain products. The United States and the state of California allege that, when Byram billed Medi-Cal for Coloplast urology products that Byram sold to Medi-Cal beneficiaries, Byram knowingly failed to account for substantial discounts that Byram knew, at the time it billed the Medi-Cal program, materially reduced the prices it paid for the products.
In connection with the False Claims Act settlement, Byram has also entered into a corporate integrity agreement with the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG).
“Health care product manufacturers that financially reward suppliers in exchange for the referral of business can improperly direct patients to certain products over others,” said Special Agent in Charge Phillip M. Coyne of HHS-OIG. “We will continue to investigate such wasteful business arrangements.”
The settlements resolve allegations in a whistleblower lawsuit filed by two former employees and one current employee of Coloplast under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers’ share of the Hollister and Byram settlements has not been determined. Claims against two other defendants in the lawsuit, Coloplast Corp. and Liberator Medical Supply Inc., were resolved in December 2015 for a total of $3.66 million. The settlements announced today bring the total recovery in the case to $24.6 million. The whistleblowers are pursuing certain additional claims in the case.
The investigation was conducted by the FBI and HHS-OIG. The case was handled by the U.S. Attorney’s Office for the District of Massachusetts with assistance from the Civil Division’s Commercial Litigation Branch.
The case is captioned United States ex rel. Herman, et al. v. Coloplast Corp., et al. Case No. 11-cv-12131-RWZ (D. Mass.). The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Byram Healthcare and Hollister, Inc. to Pay $20 Million to Resolve Kickback AllegationsRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that Hollister, Inc., a manufacturer of disposable health care products, and Byram Healthcare Centers, Inc., a supplier of medical products, have agreed to pay $11.44 million and $9.3 million, respectively, to resolve allegations that they engaged in a kickback scheme designed to increase sales and profits.
“We are committed to rooting out commercial bribery, especially in the healthcare industry where the payment of kickbacks erodes patients’ trust in the quality of their medical care,” said U.S. Attorney Ortiz. “These unlawful cash incentives also threaten the integrity of the health care system, and siphon taxpayer dollars from our nation’s health care programs.”
“This settlement demonstrates the Justice Department’s continuing determination to prevent manufacturers and suppliers of medical devices covered by federal health care programs from paying or receiving kickbacks,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division. “We will not permit such illegal payments to taint the decision-making of those who serve the beneficiaries of these important programs.”
“The FBI will aggressively investigate companies that engage in kickback schemes at the expense of both patients and taxpayers,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division. “Those who seek to exploit the nation’s health care system through bribes or other fraudulent conduct will be held accountable for their actions.”
“Health care product manufacturers that financially reward suppliers in exchange for the referral of business can improperly direct patients to certain products over others,” said Special Agent in Charge Phillip M. Coyne, U.S. Department of Health and Human Services, Office of Inspector General. “We will continue to investigate such wasteful business arrangements.”
The settlement with Hollister resolves allegations that, from 2007 through 2014, it paid kickbacks to Byram in return for marketing promotions, conversion campaigns, and other referrals of patients to Hollister’s ostomy and continence care products. On seven occasions from 2007 to 2012, Hollister allegedly agreed to pay Byram the costs of its bonus commissions paid to sales personnel for each new patient order for a Hollister product. In addition, from 2009 to 2014, Hollister allegedly agreed to pay Byram $200,000 annually, purportedly for “catalog funding,” to induce Byram’s recommendation of Hollister products to patients.
The settlement with Byram resolves allegations that, in 2012 and 2013, Byram received numerous kickbacks from Hollister and three other manufacturers of ostomy and continence care products, namely Coloplast Corp., Montreal Ostomy, and Safe N’ Simple, in return for Byram’s agreement to conduct promotional campaigns and to refer patients to the manufacturers’ products. The settlement also resolves allegations by the United States and the State of California that Byram submitted inflated claims to the California Medi-Cal program in violation of the state’s regulation which limits the amount a provider can bill for certain products. The United States and California allege that, when Byram billed Medi-Cal for Coloplast urology products that Byram sold to Medi-Cal beneficiaries, it failed to account for substantial discounts that Byram knew, at the time it billed the Medi-Cal program, reduced the prices it paid for the products.
In connection with the False Claims Act settlement, Byram has agreed to pay $127,117 to California and has entered into a corporate integrity agreement with the U.S. Department of Health and Human Services, Office of Inspector General.
The settlements resolve allegations in a whistleblower lawsuit filed by two former employees and one current employee of Coloplast under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and to share in any recovery. The whistleblowers’ share of the settlements has not been determined. Claims against two other defendants in the lawsuit, Coloplast Corp., and Liberator Medical Supply, Inc., were resolved in December 2015 for a total of $3,660,000. The settlements announced today bring the total recovery in the case to $24.6 million.
The investigation was conducted by the Federal Bureau of Investigation and the U.S. Department of Health and Human Services, Office of Inspector General. The case was handled by Assistant U.S. Attorneys George Henderson and Kriss Basil of the District of Massachusetts with assistance from the Justice Department’s Civil Division.
The claims resolved by the settlements are allegations only, and there has been no determination of liability.
Broward Resident Charged for her Participation in a Fraudulent Jamaica Based Lottery SchemeRead the Press Release
A Broward County resident was charged criminally, for her involvement in a Jamaica based telemarketing fraud scheme
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida and Delany De-Leon Colon, Acting Inspector in Charge, U.S. Postal Inspection Service (USPIS), Miami Division, made the announcement.
Elizabeth Gonzalez, 25, of Hollywood and Miami Gardens, is charged by criminal information with one count of conspiracy to commit wire fraud, in violation of Title 18, United States Code, Section 1349, and eight counts of wire fraud, in violation of Title 18, United States Code, Section 1343. If convicted, Gonzalez faces a maximum statutory sentence of twenty years in prison as to each count.
According to the information, beginning in or about September 2015, Gonzalez’s co-conspirators are alleged to have contacted elderly victims in the United States and falsely informed them that they had won a lottery prize. The co-conspirators told victims they had to pay several thousand dollars in taxes and fees, in order to collect their purported lottery winnings. The co-conspirators then allegedly instructed the victims on how to send the money, and to whom, including sending wire transfers to Gonzalez. In December 2015 and January 2016, Gonzalez received nine separate wire transfers from various telemarketing lottery fraud victims in California, Connecticut, New York and North Carolina.
The defendant’s husband, Delroy Drummond, was previously convicted of conspiracy to commit wire and mail fraud for his role in a Jamaican based telemarking fraud scheme that involved some of the alleged victims of Gonzalez’s fraud scheme (Case No. 16-60023-CR-WPD). Drummond is scheduled to be sentenced on May 31, 2016 at 1:15 p.m. by U.S. District Judge William P. Dimitrouleas.
Mr. Ferrer commended the investigative efforts of USPIS, U.S. Immigration and Customs Enforcement's Homeland Security Investigations (ICE-HSI), Miami Field Office, U.S. Marshals Service, Broward County Drug Task Force and the Miami-Dade Police Department Economic Crimes Bureau. This case is being prosecuted by Assistant United States Attorney Randy Katz.
An information is merely an allegation and every defendant is presumed innocent until proven guilty.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://pacer.flsd.uscourts.gov.
Arizona Woman Pleads Guilty to Federal Heroin Trafficking Charge in New MexicoRead the Press Release
ALBUQUERQUE – Traci Marie Salinas, 30, of Phoenix, Ariz., pleaded guilty this morning in Albuquerque, N.M., to a federal heroin trafficking charge under a plea agreement with the U.S. Attorney’s Office.
Salinas was arrested in Oct. 2015, after DEA agents seized approximately one kilogram (2.20 pounds) of heroin from her during a consensual search at the Greyhound Bus Station in Albuquerque. According to the criminal complaint, Salinas had the package of heroin strapped around her waist.
Salinas was indicted on Nov. 5, 2015, and charged with possession of heroin with intent to distribute on Oct. 13, 2015, in Bernalillo County, N.M.
During today’s proceedings, Salinas pled guilty to the indictment and admitted that on Oct. 13, 2015, she transported heroin from Phoenix, Ariz., to New Mexico on the Greyhound Bus. Salinas admitted strapping the heroin to her stomach and waist underneath her clothing. Salinas further admitted that she picked up the heroin in Phoenix and expected to be paid to deliver the drugs to Columbus, Ohio.
At sentencing, Salinas faces a maximum penalty of 20 years in federal prison. A sentencing hearing has yet to be scheduled.
This case was investigated by the Albuquerque office of the DEA. Assistant U.S. Attorney Dean S. Tuckman is prosecuting the case as part of the New Mexico Heroin and Opioid Prevention and Education (HOPE) Initiative. The HOPE Initiative was launched in January 2015 by the UNM Health Sciences Center and the U.S. Attorney’s Office in response to the national opioid epidemic which has had a disproportionately devastating impact on New Mexico. Opioid addiction has taken a toll on public safety, public health and the economic viability of our communities. Working in partnership with Bernalillo County, DEA, Healing Addiction in our Community (HAC) and other community stakeholders, HOPE’s principal goals are to protect our communities from the dangers associated with heroin and opioid painkillers and reducing the number of opioid-related deaths in New Mexico.
The HOPE Initiative is comprised of five components: (1) prevention and education; (2) treatment; (3) law enforcement; (4) reentry; and (5) strategic planning. HOPE’s law enforcement component is led by the Organized Crime Section of the U.S. Attorney’s Office and the DEA in conjunction with their federal, state, local and tribal law enforcement partners. Targeting members of major heroin and opioid trafficking organizations for investigation and prosecution is a priority of the HOPE Initiative. Learn more about the New Mexico HOPE Initiative at http://www.HopeInitiativeNM.org.
10 Indicted in Ice Distribution ConspiracyRead the Press Release
Jackson, TN – Ten individuals have been indicted on federal drug charges for their alleged roles in a conspiracy to distribute large quantities of highly pure methamphetamine. Edward L. Stanton III, U.S. Attorney for the Western District of Tennessee, announced the indictment today.
According to the indictment, between February 2015 and early April 2016, the defendants conspired with each other to unlawfully distribute multiple grams of "ice," which is meth that boasts a purity greater than 80 percent. A yearlong investigation revealed that the drugs were allegedly being transported from Phoenix, Arizona to West Tennessee for distribution. More than $146,000 was seized during the investigation, along with 54 firearms, and more than five kilos of ice.
On Thursday, April 28, 2016, nine of the defendants were arrested and taken into federal custody — one remains a fugitive. The round-up was conducted by the Federal Bureau of Investigation (FBI); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); 24th Judicial Drug Task Force; Tennessee Highway Patrol; Decatur County Sheriff’s Department; Lexington Police Department; Jackson Police Department; and the Henderson County Sheriff’s Department.
The defendants include:
• Franklin Shane Rushing, 46, of Decaturville, Tennessee
• Shannon Lee Baxin, 44, of Savannah, Tennessee
• Guadalupe Lopez Hernandez, 39, of Phoenix, Arizona
• Francisco Javier Suarez, 39, of Phoenix, Arizona (fugitive)
• Reyna Rosario Reyes, 28, of Phoenix, Arizona
• Terry Wayne Morton, 51, of Murfreesboro, Tennessee
• Randle Hugh Bushart, 52, of Friendship, Tennessee
• Amanda Jane Ivey, 44, of Lexington, Tennessee
• Joe Thomas Daniel, 31, of Reagan, Tennessee
• Freddie Joe Dailey, 56, of Parsons/Scotts Hill, TennesseeHernandez, Suarez, Reyes, Baxin, Rushing, Morton, Bushart, Ivey, and Dailey have been charged with one count of conspiracy to distribute 50 grams or more of meth; and one count of aiding and abetting each other to distribute, attempt to distribute, possess with the intent to distribute, and attempt to possess with the intent to distribute 50 grams or more of meth.
Hernandez, Suarez, and Reyes are also charged with an additional count of distributing, attempting to distribute, possessing with intent to distribute, and attempting to possess with intent to distribute 50 grams or more of meth.
Dailey is charged with three additional counts of possessing with the intent to distribute, and attempting to possess with intent to distribute 50 grams of meth.
Rushing is also charged with two counts of distributing, attempting to distribute, possessing with the intent to distribute, and attempting to possess with intent to distribute meth; and one count of possessing a firearm in furtherance of a drug trafficking crime.
Bushart is also charged with one count of possessing with the intent to deliver, and attempting to possess with intent to deliver 50 grams or more of meth.
Ivey is also charged with two counts of distributing, attempting to distribute, possessing with the intent to distribute, and attempting to possess with intent to distribute meth.
Morton is also charged with one count of possessing with intent to distribute and attempting to possess with intent to distribute meth; and two counts of felony possession of a firearm.
Daniel is being charged with three counts of possessing with the intent to distribute, and attempting to possess with intent to distribute meth; one count of possessing a firearm in furtherance of a drug trafficking crime; and one count of felony possession of a firearm.
The conspiracy, aiding and abetting, possession and distribution of 50 grams or more of meth charges hold individual penalties of no less than 10 years imprisonment and a fine of up to $10 million.
The distribution, possession with the intent to distribute, and attempt to possess and distribute meth holds a penalty of up to 20 years imprisonment and a fine of up to $1 million.
Possession of a firearm in furtherance of a drug trafficking crime holds a penalty of no less than five years imprisonment consecutive to any other term of imprisonment and a fine of up to $250,000.
Felony possession of a firearm holds a penalty of up to 10 years imprisonment and a fine of up to $250,000.
This case is being investigated the Federal Bureau of Investigation (FBI); Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF); 24th Judicial Drug Task Force; Lexington Police Department; Henderson County Sheriff's Department; Decatur County Sheriff's Department; Dyersburg Police Department; and the Jackson Police Department. The agencies are being assisted by the sheriff’s departments for Rutherford County and Crockett County.
Assistant U.S. Attorney Beth Boswell is prosecuting this case on the government’s behalf.
The charges and allegations contained in the indictment are merely accusations, and the defendants are considered innocent unless and until proven guilty.
"Pimp" Pleads Guilty in Child Sex Trafficking CaseRead the Press Release
DALLAS — Edric Norvell Robinson, Sr., 45, of Dallas, pleaded guilty this week, before U.S. Magistrate Judge Paul D. Stickney, to one count of sex trafficking of children as charged in an indictment returned by a federal grand jury in Dallas in September 2015, announced U.S. Attorney John Parker of the Northern District of Texas.
Robinson, who remains in federal custody, faces a statutory penalty of not less than 10 years and up to life in federal prison and a $250,000 fine. Sentencing is set for August 10, 2016, before U.S. District Judge Ed Kinkeade.
According to documents filed in his case, from approximately April 7, 2014, through August 19, 2014, Robinson knowingly recruited, enticed, harbored and transported a minor female, whom he caused to engage in a commercial sex act.
This year marks the 10th anniversary of the Project Safe Childhood (PSC) initiative. PSC is a department initiative launched in May 2006 that aims to combat the proliferation of technology- facilitated sexual exploitation crimes against children. Led by U.S. Attorneys’ Offices and the Criminal Division’s Child Exploitation and Obscenity Section, PSC marshals federal, state, tribal and local resources to better locate, apprehend and prosecute individuals who exploit children via the Internet, as well as to identify and rescue victims. Since FY 2011, the Department of Justice has filed 20,260 PSC cases against 19,111 defendants. These cases include prosecutions of child sex trafficking; sexual abuse of a minor or ward; child pornography offenses; obscene visual representation of the sexual abuse of children; selling or buying of children; and many more statutes. To learn more about PSC’s work, please visit: https://www.justice.gov/psc.
U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) and the Texas Department of Public Safety, both members of the North Texas Anti-Trafficking Taskforce (NTATT), investigated the case. Assistant U.S. Attorneys Cara Foos Pierce is in charge of the prosecution.
# # #
28 April 2016
“Babysitter” Charged with Producing Child PornographyRead the Press Release
CORPUS CHRISTI, Texas – Rosa Linda Ganceres, 53, of Mathis, has been charged in a criminal complaint for sexual exploitation of a child, otherwise known as production child pornography, announced U.S. Attorney Kenneth Magidson.
According to the federal criminal complaint filed this morning, Ganceres and her boyfriend - Daniel Benson Billman, a registered sex offender - placed an ad on craigslist offering babysitting services. The victim’s mother answered the ad and Ganceres was supposed to care for the child, according to the allegations. Instead, Billman sexually assaulted the two-year-old girl while Ganceres allegedly recorded the assault.
Authorities executed a search warrant at Billman’s residence and seized a cellular telephone. Forensic examination led to the discovery of a video of the child involved in sexual explicit conduct that Ganceres allegedly recorded.
Billman has pleaded guilty for his crimes. In March 2016, Senior U.S. District Judge Janis Graham Jack sentenced him to 50 years in federal prison.
Ganceres is in custody and expected to make her initial appearance at 2:00 p.m. today before U.S. Magistrate Judge B. Janice Ellington.
If convicted, she faces a minimum of 15 years and up to 30 years in federal prison as well as a possible $250,000 fine.
The charges are the result of the investigative efforts of Homeland Security Investigations, Aransas Pass Police Department and Corpus Christi Police Department’s Internet Crimes Against Children Task Force.
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."
A criminal complaint is a formal accusation of criminal conduct, not evidence.
A defendant is presumed innocent unless convicted through due process of law.Youngstown man faces firearms chargesRead the Press Release
A federal grand jury returned a one-count indictment charging Wallace A. Lewis, Sr., 26, of Youngstown, with being a felon in possession of a firearm and ammunition, said Carole S. Rendon, Acting U.S. Attorney for the Northern District of Ohio.
The indictment alleges that on or about January 5, 2016, Lewis possessed a Charter Arms, .22 caliber revolver, and ammunition, after having been previously convicted of felonious assault with a firearm specification, in Case Number 09CR1304, in the Mahoning County Court of Common Pleas.
If convicted, the defendant’s sentence will be determined by the court after review of factors unique to this case, including the defendant’s prior criminal record, if any, the defendant’s role in the offense and the characteristics of the violations. In all cases, the sentence will not exceed the statutory maximum and, in most cases, it will be less than the maximum.
The investigation preceding the indictment was conducted by the Youngstown Police Department and the Bureau of Alcohol, Tobacco, Firearms and Explosives. The matter is being prosecuted by Assistant United States Attorney Jason M. Katz.
An indictment is only a charge and is not evidence of guilt. A defendant is entitled to a fair trial in which it will be the government’s burden to prove guilt beyond a reasonable doubt.
Watertown Business Owner Pleads Guilty to Tax Evasion and Mail FraudRead the Press Release
BOSTON – A Watertown business owner pleaded guilty yesterday in U.S. District Court in Boston in connection with a scheme to evade taxes and workers’ compensation insurance premiums by paying employees under-the-table for their work.
Richard Moxley, 67, pleaded guilty one count of tax evasion and one count of mail fraud. U.S. District Court Senior Judge Mark L. Wolf scheduled sentencing for August 17, 2016.
Moxley owned and operated Sparkling Windows, a window and gutter cleaning company based in Watertown. From 2008 to 2012, Moxley devised and executed a scheme to defraud the Internal Revenue Service and the insurance company providing workers’ compensation insurance for Sparkling’s employees, by filing false tax returns and paying workers “under the table.” To do this, Moxley arranged to bring client checks to a check casher, and paid undocumented workers weekly wages in cash. By doing so, he concealed a substantial portion of the company’s business revenues and payroll, and filed false tax returns, evading a significant portion of federal taxes, and fraudulently reducing the premiums for workers’ compensation insurance owed in connection with the business.
The charge of tax evasion provides for a sentence of no greater than five years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. The charge of mail fraud provides for a sentence of no greater than 20 years in prison, three years of supervised release and a fine of $250,000 or twice the gross gain or loss, whichever is greater. Actual sentences for federal crimes are typically less than maximum penalties. Sentences are imposed by a federal district court judge based on the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Joel P. Garland, Special Agent in Charge of the Internal Revenue Service’s Criminal Investigation in Boston; and Matthew Etre, Special Agent in Charge of Homeland Security Investigations in Boston, made the announcement. The case was investigated with the cooperation of the Massachusetts Insurance Fraud Bureau. The case is being prosecuted by Assistant U.S. Attorney Eve A. Piemonte.
U.S. Attorney’s Office Spearheads Reentry Efforts During National Reentry WeekRead the Press Release
FORT WORTH/DALLAS — As part of National Reentry Week, the U.S. Attorney’s Office for the Northern District of Texas hosted two events yesterday related to the Department of Justice’s efforts to make our criminal justice system more fair, more efficient and more effective at reducing recidivism and helping formerly incarcerated individuals contribute to their communities.
“Supporting successful reentry is an essential part of this District’s mission to promote public safety,” said U.S. Attorney Parker. “The bottom line is that removing the barriers to employment, housing and education for those returning from prison reduces crime and makes our neighborhoods safer places to live. Supporting them in their desire to be productive and law-abiding citizens is vital.”
The Department is also raising awareness of the importance of reentry strategies that both increase public safety and fulfill our nation’s commitment to the promise of individual redemption.
Yesterday afternoon, the U.S. Attorney’s Office participated in a Reentry Information Fair at the Federal Medical Center (FMC) Carswell in Fort Worth, Texas. Representatives from area service providers and community groups were on hand to provide information and resources to assist inmates in overcoming reentry barriers they may encounter in employment, medical care, public assistance, identification and housing. The U.S. Attorney’s Office also gave inmates nearing release a copy of its just-published Reentry Resource Directory.
Yesterday evening, the U.S. Attorney’s Office hosted its monthly Project Safe Neighborhood (PSN) Probation/Parole Reentry Session in Dallas; approximately 300 recently-released state parolees and probationers attended. The monthly sessions are designed to emphasize the coordinated efforts of local, state and federal law enforcement concerning federal gun laws and to ensure attendees know about social service resources that are available to assist them as they integrate back into society. The Office will host a similar session this evening in Fort Worth.
During the week of April 24-30, 2016, designated as National Reentry Week by the Department of Justice, the U.S. Attorney’s office is sponsoring and coordinating several events designed to raise awareness about the importance of reentry work. On Monday, U.S. Attorney Parker welcomed approximately 300 attendees at the 2016 Reentry Symposium in Dallas, and on Tuesday, staff members from the U.S. Attorney’s Office joined Bureau of Prisons (BOP) staff at Federal Correctional Institute (FCI) Fort Worth to participate in a Reentry Simulation that offered FCI inmates an opportunity to experience, first-hand, one month in the life of a newly-released offender.
Earlier this week, Attorney General Loretta E. Lynch announced new reforms to strengthen the BOP, including the “Roadmap to Reentry,” the Department’s comprehensive vision to reduce recidivism through reentry reforms at the BOP.
The principles outlined in the “Roadmap to Reentry” are aligned with the work of the Federal Interagency Reentry Council, which has been to reduce policy barriers to successful reentry, opening up opportunities in education, job placement, housing, healthcare, and a host of other areas critical to successful reintegration.
More information on Reentry efforts in the Northern District of Texas may be found here. Additional resources regarding the Department’s Reentry efforts may be found here.
# # #
U.S. Attorney Hosts “Intensive Reentry Court Reunion”Read the Press Release
SYRACUSE, NEW YORK –United States Attorney Richard Hartunian today hosted Intensive Reentry Court Reunion: Recognizing our Partners, Celebrating our Successes, as part of the United States Department of Justice National Reentry Week. The event was held in the ceremonial courtroom at the Federal Courthouse in Syracuse, N.Y. Federal Judges, U.S. Probation Officers, the Federal Public Defenders Office, and organizations from around Central New York acknowledged the progress made over the past eight years by the program’s graduates, all former federal prisoners who have successfully returned to the community.
The Intensive Reentry Court (IRC) is a collaborative justice court for men and women recently released from prison who may pose a high risk of reoffending. Key components are reentry stakeholders – people in the community that help those transitioning from prison to society have a second chance by providing employment opportunities, treatment and counseling services, educational opportunities, legal services, housing and support and guidance.
The event today included a video, "Intensive Reentry Court: A Second Chance Begins" that captures the story and journey of several of the Syracuse Intensive Reentry Court participants and graduates. This powerful video takes the viewer through the participants’ life experiences before and after prison.
The U.S. Department of Justice designated April 24-30, 2016 as National Reentry Week and each of the 93 United States Attorney’s Office is holding reentry events. "Supporting successful reentry is an essential part of our mission to promote public safety" said Deputy Attorney General Sally Q. Yates. "If we can reduce recidivism by helping individuals return to productive, law-abiding lives, we will reduce crime across this country, make our prisons safer, and make our neighborhoods better places to live."
United States Attorney Richard S. Hartunian said: "The successful reentry of a defendant is crucial for the individual, the community, and public safety. Recidivism rates that are simply too high, reflecting a revolving door through the criminal justice system and back, must be reduced. The United States Attorney’s Office has been a proud partner in the Northern District of New York’s Intensive Reentry Court since its inception, long before the current initiative, and remains invested in the intensive work needed to help people turn their lives around and become productive and law-abiding. We honor the IRC graduates and those who have helped them seize their second chance."
The Northern District of New York began the first session of the Intensive Reentry Court ("IRC") in December 2008. The IRC in Syracuse is currently led by United States Magistrate Judge Andrew T. Baxter, with participation from United States Senior Probation Officer Liana Snyder and Probation Officer Joe Perez, Assistant Federal Public Defender Randi Bianco, and Assistant United States Attorney Tamara Thomson.
In 2010, the NDNY expanded the IRC program to include a second court in Albany, N.Y. The Syracuse IRC program has 8 current participants.
U.S. Attorney and DEA Announce Take-Back Initiative to Safely Remove Prescription Pills from Local HomesRead the Press Release
Nearly 50 locations this Saturday where Kentuckiana residents can safely and anonymously rid their homes of unwanted and expired medications
LOUISVILLE, Ky. – Kentuckiana residents have an opportunity this Saturday to safely and anonymously rid their homes of unused, unwanted, unneeded, or expired prescription medications, today announced U.S. Attorney John E. Kuhn, Jr. and U.S. Drug Enforcement Administration (DEA) Assistant Special Agent in Charge, Thomas J. Gorman. The National Prescription Take-Back Day, will take place this Saturday, April 30, 2016 at nearly 50 locations across Kentuckiana. During this one-day event, federal and local law enforcement will once again partner to increase awareness of prescription drug abuse and provide an opportunity to reduce the availability of prescription pain medications in local homes.
U.S. Attorney Kuhn and ASAC Gorman are encouraging families to clean out medicine cabinets and safely rid their homes of unwanted and expired prescription medications. Many Americans are not aware that medicines that languish in home cabinets are highly susceptible to diversion, misuse, abuse and theft. Studies show that two-thirds of all teenagers who abuse prescription narcotics first obtain the drugs from family and friends; often from their home medicine cabinet.
Further, many Americans are unsure of how to properly dispose of their unused medications and often flush them down the toilet or throw them away. This poses safety and environmental hazards.
USA Kuhn and ASAC Gorman also stated that the Take-Back is a great opportunity to begin a dialogue with children to educate them on the dangers of obtaining pharmaceuticals for illicit use.
Prior DEA Prescription Take-Backs have been extremely successful with Kentuckiana residents dramatically reducing the risk of pain pill and other medication abuses by ridding their homes of thousands of pounds of unused prescription medications. Kentucky remains among the nation’s most medicated states.
The Prescription Drug Take-Back is part of a nationwide effort sponsored by the DEA. Containers where unwanted and expired prescription medications may be safely disposed will be at locations across Kentucky, and Southern Indiana, on Saturday, from 10 a.m. to 2:00 p.m. A complete list of locations and the assisting law enforcement agency may be found in the attachment, or at www.dea.gov or by calling 800-882-9539.
More information on how to properly dispose of unused medicines can be found on the Food & Drug Administration website:
http://www.fda.gov/Drugs/ResourcesForYou/Consumers/BuyingUsingMedicineSafely/EnsuringSafeUseofMedicine/SafeDisposalofMedicines/ucm186187.htm
Two New Orleans Residents Sentenced to Lengthy Prison Terms in Heroin ConspiracyRead the Press Release
U.S. Attorney Kenneth A. Polite announced that CHRISTOPHER FRANCIS, age 32, and VINCENT JONES, age 46, both of New Orleans, were sentenced today after having previously pled guilty to one count of conspiring to distribute and to possess with intent to distribute one kilogram or more of heroin.
U.S. District Judge Carl J. Barbier sentenced FRANCIS to 240 months in prison, to be followed by 10 years of supervised release. Judge Barbier sentenced JONES to 180 months in prison, to be followed by 10 years of supervised release.
FRANCIS and JONES were two of twelve defendants charged in a 23-count Indictment on July 25, 2014. According to court documents, this Indictment sprung from an investigation into a heroin-trafficking organization operating in New Orleans East. This organization was responsible for distributing at least 15 kilograms of heroin in the New Orleans area. As part of the arrests in this case, federal agents have seized from the twelve defendants approximately $1,200,000 in assets (a combination of vehicles, currency, jewelry, and real property) as proceeds made from the sale of heroin.
U.S. Attorney Polite praised the work of the Drug Enforcement Administration in investigating this matter. Assistant United States Attorney Brandon S. Long was in charge of the prosecution.
Two Men Indicted in Scheme to Defraud LenderRead the Press Release
Baltimore, Maryland – A federal grand jury returned an indictment yesterday charging Darryl Wesley Clements, age 50, of Detroit, Michigan, and Rodney Patrick Dunn, age 40, of Elkridge, Maryland, with conspiring to commit wire fraud and four counts of wire fraud, arising from a scheme to defraud lenders from February to August 2011 in order to obtain financing for a movie.
The indictment was announced by United States Attorney for the District of Maryland Rod J. Rosenstein; Special Agent in Charge Kevin Perkins of the Federal Bureau of Investigation, Baltimore Field Office; and Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP).
“Rodney Dunn is charged with using his employment at a TARP bank to defraud lenders in a movie production financing scheme,” said Christy Goldsmith Romero, Special Inspector General for the Troubled Asset Relief Program (SIGTARP). “Co-conspirator Darryl Clements allegedly created fake documents showing that $13 million in financing had been secured for the movie. Dunn then allegedly confirmed to the lenders that the non-existent funding was held in escrow accounts at the TARP bank; on that same day the lenders wired $2.5 million for the movie.”
According to the five count indictment, CityScope Productions, LLC had contractual rights to buy the script for a movie to be produced called “Season Tickets.” Clements created documents falsely stating that CityScope had permanent financing of $13 million for the movie from Bridge Capital and The Shah Group, and that the funds were held in escrow at a bank in Baltimore. Dunn was employed at such bank, which received funds through the Troubled Asset Relief Program (TARP). In fact, there was no such financing, and there were no escrow funds held at the bank. The false documents further stated that CityScope needed a $2.5 million bridge loan to complete the financing for the movie.
The indictment alleges that in order to carry out the fraud scheme, Clements created email accounts which appeared to belong to Dunn and The Shah Group, but which Clements actually controlled. In February 2011, Clements caused Dunn to purchase five cashiers’ checks from his employer bank, made payable to Clements, each for $20, which Clements then altered by amount and payee and furnished to CityScope. Clements fraudulently placed Dunn’s forged signature on escrow agreements and proof of funds statements which Clements wired to CityScope, in order to cause CityScope to furnish those fraudulent documents to prospective lenders.
According to the indictment, Dunn communicated by telephone with Clements when a prospective lender called Dunn at the bank to verify the funds in the escrow accounts, so that Clements could return the telephone call, pose as Dunn, and verify the existence of the escrow accounts and their balances. In April 2011, Clements caused a corporation owned by a friend to change its name to The Shah Group and attempted to have Dunn open a bank account at his employer’s bank for The Shah Group.
The indictment alleges that in a telephone call on May 9, 2011, Dunn fraudulently verified the account numbers and balances of the phony escrow accounts to an official of a California company which specialized in providing bridge financing for movies (California finance company); and that Dunn later provided such verification to the California finance company and to an official of its bank in a conference call. On the same day, the California finance company loaned $2.5 million to CityScope and transmitted the funds by wire.
Both defendants face a maximum sentence of 20 years in prison. An initial appearance is scheduled for May 6, 2016 before in U.S. District Court in Baltimore.
An indictment is not a finding of guilt. An individual charged by indictment is presumed innocent unless and until proven guilty at some later criminal proceedings.
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 commended the FBI and SIGTARP for their work in the investigation. Mr. Rosenstein thanked Assistant U.S. Attorney Joyce K. McDonald, who is prosecuting the case.
Twenty-Five Miami-Area Defendants Charged with Submitting $26 Million in False Claims to the Medicare Part D ProgramRead the Press Release
Charges were filed today against 25 Miami-area defendants in three separate cases for their alleged participation in various schemes to defraud Medicare of approximately $26 million in false claims through the Medicare Part D program.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Wifredo A. Ferrer of the Southern District of Florida, Assistant Special Agent in Charge William J. Maddalena of the FBI’s Miami Division and Special Agent in Charge Shimon R. Richmond of the U.S. Department of Health and Human Services-Office of Inspector General’s (HHS-OIG) Miami Regional Office made the announcement.
“These cases build on our recent efforts to focus on Medicare prescription drug benefit fraud, targeting those who take advantage of the fastest-growing component of the Medicare program,” said Assistant Attorney General Caldwell. “Working with our partners in the Medicare Fraud Strike Force, the Criminal Division uses cutting-edge data analysis techniques to identify emerging fraud schemes and to stay ahead of the criminal curve.”
“Those who commit Medicare fraud through the filing of false claims, payment or receipt of kickbacks, or fraudulent medical practices jeopardize the integrity of the government benefit programs that countless citizens rely on for their well-being,” said U.S. Attorney Ferrer. “The U.S. Attorney’s Office and our law enforcement allies will continue to pro-actively identify for prosecution the individuals who pay kick-backs for the unauthorized use of Medicare benefits for their own illicit financial gain.”
“The actions of the FBI and our partners in the Medicare Fraud Strike Force have disrupted several health care fraud operations today,” said Assistant Special Agent in Charge Maddalena. “Unfortunately, South Florida remains ground zero for these types of scams. As such, we will continue to pursue those individuals who pay kickbacks and fraudulently bill for medical services that are not necessary or ever provided.”
“A dangerous trend is fraudulent pharmacy billing for drugs,” said Special Agent in Charge Richmond. “But exploitation of the Medicare prescription drug benefit will not be tolerated and suspects will face aggressive investigation and prosecution.”
United States v. Antonio Hevia et al. charges 18 defendants for their participation in a scheme to defraud the Medicare Part D program through false claims from eight separate Miami-Dade County area pharmacies. The defendants each face various charges from among the following offenses included in the indictment: conspiracy to commit health care fraud and wire fraud; substantive counts of health care fraud; and conspiracy to defraud the United States and pay and receive health care kickbacks. The indictment alleges that the fraud scheme was orchestrated by Pedro Torres, 43, of North Bay Village, Florida, and Antonio Hevia, 53, of Miami, who recruited individuals to be the owners of pharmacies in Miami-Dade County, which were then used to submit false and fraudulent claims to the Medicare Part D program. Hevia and Torres allegedly controlled pharmacies that were used to facilitate the fraudulent scheme, including: Sun View Pharmacy, K.A.R. Pharmacy, Lola Pharmacy, Latin Quarters Drug Store, Lily and Rosy Pharmacy, Norton Pharmacy, Health Star Pharmacy and Supply, Ultra Medical Services and OMG Pharmacy Discount. Torres and Hevia allegedly instructed the staff at the respective pharmacies to submit false and fraudulent claims for millions of dollars for prescription drugs that were not medically necessary and not provided to the Medicare Part D beneficiaries. Medicare beneficiaries were frequently referred to the pharmacies by patient recruiters, who received kickbacks for referring patients. The 18 co-conspirators are charged as owners and/or patient recruiters in the fraudulent scheme. As a result of the filing of false and fraudulent claims, Medicare made approximately $16.7 million in payments.
Assistant U.S. Attorney James Hayes of the Southern District of Florida is prosecuting this case.
United States v. Kenia Gonzalez et al. charges Julio Espinosa Moret, 40; Kenia Gonzalez Fernandez, 41; Frank Dunier Perez, 39; and Luzbella Nunez de la Torre, 47, all of Miami, with conspiracy to defraud the United States and pay and receive kickbacks and for receiving kickbacks. The indictment alleges that the defendants solicited and received kickbacks and bribes to recruit Medicare beneficiaries and induce the Medicare beneficiaries to obtain prescriptions for pharmaceutical drugs to be used in conjunction with the submission of claims to the Medicare Part D Program through OMG Pharmacy.
Trial Attorney Vasanth Sridharan of the Criminal Division’s Fraud Section is prosecuting this case.
United States v. Ronald Diaz, et al. charges Ronald Diaz, 28, Mercedes Maya, 30, and Gladys Cabrera, 28, all of Miami, with various charges, including conspiracy to commit health care fraud, health care fraud and money laundering. The indictment alleges that Diaz is the named owner of Total Pharmacy, New Life Community Pharmacy, La Botica Pharmacy, La Botica Pharmacy No 02, Solutions Drug Store, M & P Pharmacy, La Roca Pharmacy and Richard’s Pharmacy Discount, pharmacies located in Miami-Dade County, that purportedly provided prescription drugs to Medicare beneficiaries. Diaz, Maya and Cabrera allegedly submitted and caused the submission of claims via interstate wires that falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor and had been provided by these pharmacies to Medicare beneficiaries. As a result of these claims, Medicare prescription drug plan sponsors, through their pharmacy benefit managers, made approximately $10,428,019 in payments that were funded by the Medicare Part D program to the pharmacies.
Assistant U.S. Attorney Christopher Clark of the Southern District of Florida is prosecuting this case.
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 by the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
In the Southern District of Florida, nearly 900 individuals have been charged for their involvement in more than $2.5 billion in fraudulent Medicare billings.
Part D prescription medicine coverage is the fastest-growing area of the Medicare program. Last year alone, more than $120 billion was spent on the Medicare Part D program, up from $78 billion in 2010. Based on U.S. Government Accountability Office estimates, as much as $10 billion of last year’s $120 billion in Medicare Part D spending may be fraudulent. The Department of Justice, along with its law enforcement partners, is committed to aggressively targeting Part D fraud.
The Medicare Fraud Strike Force investigated the various cases with assistance from the FBI and HHS-OIG.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Hevia et al Indictment
Fernandez et al Indictment
Diaz et al Indictment
Twenty-Five Miami-Area Defendants Charged with Submitting $26 Million in False Claims to the Medicare Part D ProgramRead the Press Release
Wifredo A. Ferrer, United States Attorney for the Southern District of Florida, Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, George L. Piro, Special Agent in Charge, Federal Bureau of Investigation (FBI), Miami Field Office, and Shimon R. Richmond, Special Agent in Charge, United States Department of health and Human Services, Office of Inspector General (HHS-OIG), announce the filing of federal charges against 25 defendants in 3 separate cases, for their alleged participation in various schemes to defraud Medicare. The defendants are alleged to have collectively submitted approximately $26 million in false claims through the Medicare Part D program. This coordinated takedown is the result of the Medicare Fraud Strike Force.
“Those who commit Medicare fraud through the filing of false claims, payment or receipt of kickbacks, or fraudulent medical practices jeopardize the integrity of the government benefit programs that countless citizens rely on for their well-being,” stated U.S. Attorney Wifredo Ferrer. “The U.S. Attorney’s Office and our law enforcement allies will continue to pro-actively identify for prosecution the individuals who pay kick-backs for the unauthorized use of Medicare benefits for their own illicit financial gain.”
“These cases build on our recent efforts to focus on Medicare prescription drug benefit fraud, targeting those who take advantage of the fastest-growing component of the Medicare program,” said Assistant Attorney General Caldwell. “Working with our partners in the Medicare Fraud Strike Force, the Criminal Division uses cutting-edge data analysis techniques to identify emerging fraud schemes and to stay ahead of the criminal curve.”
“The actions of the FBI and our partners in the Medicare Fraud Strike Force have disrupted several health care fraud operations today,” said William J. Maddalena, Assistant Special Agent in Charge, FBI Miami. “Unfortunately, South Florida remains ground zero for these types of scams. As such, we will continue to pursue those individuals who pay kickbacks and fraudulently bill for medical services that are not necessary or ever provided.”
"A dangerous trend is fraudulent pharmacy billing for drugs," said Shimon R. Richmond Special Agent in Charge for the Office of Inspector General of the U.S. Department of Health and Human Services. "But exploitation of the Medicare prescription drug benefit will not be tolerated and suspects will face aggressive investigation and prosecution."
Today, U.S. Attorney Ferrer and members of the Medicare Fraud Strike Force, announce the results of their investigative efforts.
1. United States v. Antonio Hevia et. al, Case No. 16-20267-CR-Williams
This indictment charges 18 defendants for their participation in a scheme to defraud the Medicare Part D program through false claims from eight separate Miami-Dade area pharmacies. The defendants each face various charges from among the following offenses included in the indictment: conspiracy to commit health care fraud and wire fraud, in violation of Title 18, United States Code, Section 1349, substantive counts of health care fraud, in violation of Title 18, United States Code, Section 1347, and conspiracy to defraud the United States and pay and receive health care kickbacks, in violation of Title 18, United States Code, Section 371. The indictment alleges that the fraud scheme was orchestrated by Pedro Torres, 43, of North Bay Village, and Antonio Hevia, 53, of Miami, who recruited individuals to be the owners of pharmacies in Miami-Dade County which were then used to submit false and fraudulent claims to the Medicare Part D program. Hevia and Torres allegedly controlled pharmacies that were used to facilitate the fraudulent scheme, including: Sun View Pharmacy, K.A.R. Pharmacy, Lola Pharmacy, Latin Quarters Drug Store, Lily and Rosy Pharmacy, Norton Pharmacy, Health Star Pharmacy and Supply, Ultra Medical Services, and OMG Pharmacy Discount. Torres and Hevia instructed the staff at the respective pharmacies to submit false and fraudulent claims for millions of dollars for prescription drugs that were not medically necessary and not provided to the Medicare Part D beneficiaries. Medicare beneficiaries were frequently referred to the pharmacies by patient recruiters, who received kickbacks for referring patients. The 18 co-conspirators are charged as owners and/or patient recruiters in the fraudulent scheme. As a result of the filing of false and fraudulent claims, Medicare made approximately $16.7 million in payments.
This case is being prosecuted by Assistant United States Attorney James Hayes.
2. United States v. Kenia Gonzalez et. al, Case No. 16-20268-CR-Seitz
Julio Espinosa Moret, 40, Kenia Gonzalez Fernandez, 41, Frank Dunier Perez, 39, and Luzbella Nunez de la Torre, 47, all of Miami, were charged by indictment with conspiracy to defraud the United States and pay and receive kickbacks in violation of Title 18, United States Code, Section 371, and the receipt of kickbacks in violation of Title 42 United States Code, Section 1320a-7b(b)(1)(A). The indictment alleges that the defendants solicited and received kickbacks and bribes to recruit Medicare beneficiaries and induce said Medicare beneficiaries to obtain prescriptions for pharmaceutical drugs to be used in conjunction with the submission of claims to the Medicare Part D Program through OMG Pharmacy Discount.
This case is being prosecuted by Department of Justice Trial Attorney Vasanth Sridharan.
3. United States v. Ronald Diaz, et al., Case No. 16-20251-CR-Cooke
Ronald Diaz, 28, Mercedes Maya, 30, and Gladys Cabrera, 28, all of Miami, each face various charges from among the following offenses included in the indictment: conspiracy to commit health care fraud, in violation of Title 18,United States Code, Section 1349; health care fraud, in violation of Title 18,United States Code, Section 1347; and money laundering, in violation of Title 18,United States Code, Section 1957(a). The indictment alleges that Diaz is the named owner of pharmacies located in Miami-Dade County, specifically Total Pharmacy, New Life Community Pharmacy, La Botica Pharmacy, La Botica Pharmacy No 02, Solutions Drug Store, M & P Pharmacy, La Roca Pharmacy, Richard’s Pharmacy Discount, that purportedly provided prescription drugs to Medicare beneficiaries. Diaz, Maya, and Cabrera submitted and caused the submission of claims, via interstate wires, which falsely and fraudulently represented that various health care benefits, primarily prescription drugs, were medically necessary, prescribed by a doctor and had been provided by these pharmacies to Medicare beneficiaries. As a result of these claims, Medicare prescription drug plan sponsors, through their pharmacy benefit managers, made approximately $10,428,019 in payments that were funded by the Medicare Part D program to the pharmacies.
This case is being prosecuted by Assistant United States Attorney Christopher Clark.
If convicted of the charged conduct, the defendants face a sentence of 20 years in prison if convicted of a violation of Title 18, United States Code, Section 1349, 10 years in prison if convicted of a violation of Title 18, United States Code, Section 1347, 10 years in prison if convicted of a violation of Title 18,United States Code, Section 1957(a); and 5 years in prison if convicted of a violation of Title 18, United States Code, Section 371 and Title 42 United States Code, Section 1320a-7b(b)(1)(A).
The Medicare Fraud Strike Force operations are part of the Health Care Fraud Prevention & Enforcement Action Team (HEAT), a joint initiative announced in May 2009 by the Department of Justice and HHS to focus their efforts to prevent and deter fraud and enforce current anti-fraud laws around the country. Since its inception in March 2007, the Medicare Fraud Strike Force has charged over 2,300 defendants who have collectively billed the Medicare program for more than $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
In the Southern District of Florida, nearly 900 individuals have been charged for their involvement in more than $2.5 billion in fraudulent Medicare billings.
Part D prescription medicine coverage is the fastest-growing area of the Medicare program. Last year alone, over $120 billion was spent on the Medicare Part D program, up from $78 billion in 2010. Based on the U.S. Government Accountability Office estimates, as much as $10 billion of last year’s $120 billion in Medicare Part D spending may be fraudulent. The Department of Justice, along with its law enforcement partners, is committed to aggressively targeting Part D fraud.
Mr. Ferrer and AAG Caldwell commended the investigative efforts of the Medicare Fraud Strike Force, with special accommodation to the FBI and HHS-OIG. These cases are being prosecuted by the U.S. Attorney’s Office for the Southern District of Florida and the Fraud Section of the Justice Department’s Criminal Division.
An indictment is merely an allegation, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to: www.stopmedicarefraud.gov.
Related court documents and information may be found on the website of the District Court for the Southern District of Florida at www.flsd.uscourts.gov or on http://+pacer.flsd.uscourts.gov.
Three People Connected to Shooter in San Bernardino Terrorist Attack Arrested on Federal Conspiracy, Marriage Fraud and False Statement ChargesRead the Press Release
RIVERSIDE, California – Three people with family connections to Syed Rizwan Farook, one of the perpetrators of the December 2, 2015 terrorist attack at the San Bernardino Inland Regional Center (IRC), were arrested this morning on federal conspiracy, marriage fraud and false statement charges.
A five-count indictment returned yesterday by a federal grand jury charges three defendants in a marriage fraud conspiracy that involved making false statements under oath for the purpose of obtaining immigration benefits for one of the defendants.
The three defendants arrested this morning are:
-
Mariya Chernykh, 26, of Ontario, who, according to official records, is married to Enrique Marquez, Jr., who is awaiting trial on charges of conspiring with Syed Rizwan Farook in 2011 and 2012 to provide material support to terrorists;
-
Tatiana Farook, 31, of Corona, who is Chernykh’s sister; and
-
Syed Raheel Farook, 31, of Corona, who Tatiana Farook’s husband and Syed Rizwan Farook’s brother.
The indictment charges all three defendants in a conspiracy to knowingly make under oath a false statement with respect to a material fact in an application, affidavit, and other document required by the immigration laws and regulations of the United States. This charge carries a statutory maximum sentence of five years in federal prison.
The indictment also charges Chernykh with fraud and misuse of visas, permits, and other documents; perjury; and two counts of making material false statements to federal agents. These four charges carry a combined statutory maximum sentence of 25 years in federal prison.
When Marquez was indicted by a federal grand jury at the end of 2015 with conspiring with Syed Rizwan Farook to provide material support to terrorists, he was also charged with entering into a sham marriage with Chernykh in November 2014 and illegally signing an immigration form that falsely declared he was living with her (see: http://go.usa.gov/cuKEm).
“This is the latest step in the comprehensive investigation into the horrific attacks in San Bernardino last year that took the lives of 14 innocent Americans and deeply affected so many more,” said United States Attorney Eileen M. Decker. “As I have said previously, we owe the victims, and the entire community of San Bernardino, a thorough investigation that uncovers all criminal activity surrounding these events. Today's arrests open a new phase in the process of bringing to justice all individuals who allegedly committed crimes that were uncovered during our exhaustive investigation. The charges also reflect the importance we place on statements made to law enforcement officials during a terrorism investigation. Those who lie to or conceal material information from law enforcement officers investigating terrorist acts will be prosecuted to the fullest extent of the law.”
Acting Assistant Director of the FBI’s Los Angeles Field Office, James Struyk, said, “Members of the FBI's Joint Terrorism Task Force worked around the clock in an attempt to find immediate answers in the days and weeks following the December murders in San Bernardino to ensure no additional threats to the community were present. As proof of our enduring commitment to the victims and their families, the FBI and our partners will continue to pursue all leads developed in this matter to build cases when evidence of a crime is revealed.”
Joseph Macias, Special Agent in Charge U.S. Immigration and Customs Enforcement’s (ICE) Homeland Security Investigations (HSI) in Los Angeles, stated: “Last year’s tragedy in San Bernardino showed yet again how our nation’s legal immigration system can be subverted and exploited by those intent on doing this country harm. As the second largest presence on the nation’s Joint Terrorism Task Forces, HSI special agents, in collaboration with their JTTF partners, are using their unique skills and authorities, including their immigration expertise, to pursue individuals and organizations that pose a threat to domestic security. As this case underscores, that vigilance extends to those whose actions directly or indirectly put our communities and our country at risk.”
The case against Chernykh and the Farooks stems from the overall investigation into the IRC terrorist attack. While investigating the terrorist attack, federal agents obtained official records showing that Marquez, a former neighbor of Syed Rizwan Farook’s, is married to Chernykh. The investigation determined that Marquez agreed to marry Chernykh so she could obtain immigration benefits that were not available to her because she is a Russian citizen and did not have legal status in the United States. The indictment alleges that Marquez received money from Chernykh to enter into the sham marriage.
In furtherance of this conspiracy, both Marquez and Chernykh signed immigration documents, under penalty of perjury, that included information that they lived at the same address, when they did not.
Syed Raheel Farook and Tatiana Farook participated in the conspiracy by, among other things, witnessing Marquez and Chernykh’s wedding, taking staged family pictures of Marquez and Chernykh, establishing a joint checking account for Marquez and Chernykh, and creating a back-dated lease for Marquez and Chernykh to create the illusion that they shared a marital residence with Syed Raheel Farook and Tatiana Farook.
FBI agents interviewed Chernykh as part of the investigation into the IRC terrorist attacks, and she allegedly made false statements that she lived with Marquez at Syed Raheel Farook and Tatiana Farook’s residence in Corona.
All three defendants are expected to be arraigned on the indictment this afternoon in United States District Court in Riverside.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until proven guilty in court.
Today's operation is the result of an ongoing investigation by the FBI's Joint Terrorism Task Force, which includes partners with HSI, the San Bernardino Police Department, the San Bernardino County Sheriff’s Department, the Riverside County Sheriff’s Department, the Ontario Police Department, the Riverside Police Department, the Corona Police Department and the Chino Police Department.
-
Southbay Resident Charged with Transportation of Stolen GoodsRead the Press Release
SAN JOSE - Alfred Georgis and Davis Kiryakoz were charged with conspiracy to transport stolen goods and transportation of stolen goods, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Acting Special Agent in Charge Bertram Fairries. The stolen goods are alleged to include a number of bottles of high end wines stolen from The French Laundry in Yountville and Alexander’s Steakhouse in Cupertino.
In an indictment unsealed today, Georgis, 53, of Mountain View, and Kiryakoz, 44, of Modesto, are accused of transporting in interstate commerce stolen wines worth hundreds of thousands of dollars. According to the indictment, thefts began as early as March of 2013 when approximately 142 bottles were stolen from a San Francisco wine merchant. The indictment describes the alleged theft and transportation of additional wines including the November 2014 burglary of approximately 39 bottles of wine from Alexander’s Steakhouse and the December 2014 burglary of about 100 bottles of valuable wines from the French Laundry. Defendants are charged with one count of conspiracy to transport stolen goods, in violation of 18 U.S.C. § 371 and two counts of transportation of stolen goods, in violation of 18 U.S.C. §§ 2314 and 2.
Defendants were arrested on April 27, 2016, and made their initial appearances on April 28, 2016, in federal court in Fresno and San Jose. Kiryakoz was released and Georgis was detained pending a bail hearing scheduled for May 4, 2016 before United States Magistrate Judge Nathanael Cousins.
An indictment merely alleges that crimes have been committed, and all defendants are presumed innocent until proven guilty beyond a reasonable doubt. If convicted, the defendants face a maximum sentence of 10 years’ imprisonment, a fine of $250,000 or twice the gross gain or twice the gross loss, plus restitution for each violation of 18 U.S.C. § 2314. However, any sentence following conviction would be imposed by the court only after consideration of the U.S. Sentencing Guidelines and the federal statute governing the imposition of a sentence, 18 U.S.C. § 3553.
Assistant U.S. Attorney Cynthia Frey is prosecuting the case with the assistance of Daniel Charlier-Smith. The prosecution is the result of an investigation by the Federal Bureau of Investigation and the Napa County Sheriff's Office, with assistance from the Santa Clara County Sheriff's Office, Los Gatos Monte Sereno Police Department, San Francisco Police Department, Walnut Creek Police Department, and Carmel Police Department.
South Dartmouth Man Charged with Child Pornography OffensesRead the Press Release
BOSTON – A South Dartmouth man was arrested today and charged in U.S. District Court in Boston with child pornography offenses.
Jack L. Bean, Jr., 29, was charged in a criminal complaint with one count of receipt of child pornography and one count of possession of child pornography. During an initial appearance today, Bean was detained pending a detention hearing on May 3, 2016.
According to the court documents, in September 2015, a law enforcement investigation identified an Internet-based bulletin board dedicated to the advertisement, distribution and production of child pornography with over 1,500 users who actively post new content and engage in online discussions involving the sexual exploitation of minors. Bean was allegedly identified as a user on the bulletin board. During a search executed by law enforcement officers today, Bean admitted that he downloaded and saved child pornography from the Internet, and that he had a sexual preference for girls approximately 14 years old. During the execution of the search warrant, agents identified 40 images and 29 videos of children engaged in sexually explicit conduct on Bean’s laptop.
The charge of receipt of child pornography provides for a mandatory minimum sentence of five years and no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. The charge of possession of child pornography provides for a sentence of no greater than 20 years in prison, a mandatory minimum of five years and up to a lifetime of supervised release, and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Matthew Etre, Special Agent in Charge of the Homeland Security Investigations in Boston; and Dartmouth Police Chief Robert W. Szala, made the announcement today. The case is being prosecuted by Assistant U.S. Attorney Suzanne Sullivan Jacobus of Ortiz’s Major Crimes Unit.
The details contained in the complaint are allegations. The defendant is presumed innocent unless and until proven guilty beyond a reasonable doubt in a court of law.