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28 April 2016
California Man Sentenced to More Than Six Years for Methamphetamine DistributionRead the Press Release
Tampa, Florida – United States District Judge Elizabeth A. Kovachevich sentenced Saul Muro (32, formerly of Los Angeles, CA) today to six years and six months in federal prison for conspiracy to possess and to distribute methamphetamine. Muro was found guilty in September 2015 following a bench trial.
According to court documents, in February 2013, Muro arrived in Tampa with a female co-defendant to collect the payment for ten pounds of methamphetamine that had previously been delivered, on consignment, by co-defendant Gabriel Lujan-Gaziola to undercover law enforcement officers. Muro and the female co-defendant took receipt of a sealed metal box that ostensibly contained the $103,000 to pay for the consigned methamphetamine.
On February 14, 2014, Lujan-Gaxiola was sentenced to nine years in federal prison for his role in this case.
This case was investigated by the Polk County Sheriff’s Office and the Drug Enforcement Administration. It was prosecuted by Assistant United States Attorney Kelley Howard-Allen.
California Doctor Pleads Guilty to $2.4 Million Medicare Fraud SchemeRead the Press Release
A Valencia, California, doctor pleaded guilty today to submitting more than $2.4 million in fraudulent claims to Medicare.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, U.S. Attorney Eileen M. Decker of the Central District of California, Special Agent in Charge Christian Schrank of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) Los Angeles Region and Special Agent in Charge Joseph Fendrick of the California Department of Justice’s Orange County and San Diego Office made the announcement.
Gary J. Ordog, M.D., 61, pleaded guilty before U.S. District Court Judge Fernando M. Olguin of the Central District of California to one count of health care fraud. Sentencing has been scheduled for Aug. 18, 2016.
According to admissions made as part of his plea agreement, Ordog purported to be a physician, specializing in toxicology. Ordog admitted that he submitted false claims to Medicare for purported visits with Medicare beneficiaries, when in fact those visits never actually occurred, including on dates when Ordog was out of the country. He also admitted to billing for services provided to beneficiaries who were deceased on the dates Ordog purportedly treated them and for services totaling more than 24 hours in one day. Ordog fabricated patient records to support false claims, he admitted.
Between January 2009 and February 2015, Ordog submitted approximately $2,435,089 in false and fraudulent claims to Medicare, he admitted. Medicare paid approximately $1,295,699 of those claims, according to the plea agreement.
The HHS-OIG and the California Department of Justice investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. Fraud Section Trial Attorneys Ritesh Srivastava and Niall O’Donnell are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to www.stopmedicarefraud.gov.
Ordog Plea Agreement
California Doctor Pleads Guilty to $2.4 Million Medicare FraudRead the Press Release
LOS ANGELES – A Valencia doctor pleaded guilty today to federal charges for submitting more than $2.4 million in fraudulent claims to Medicare.
Dr. Gary J. Ordog, 61, pleaded guilty before United States District Judge Fernando M. Olguin to one count of health care fraud. Judge Olguin is scheduled to sentence Ordog on August 18.
According to admissions made as part of his plea agreement, Ordog, a physician specializing in toxicology, submitted false claims to Medicare for purported visits with Medicare beneficiaries, when in fact those visits never actually occurred. Ordog admitted the he submitted bills for services purportedly performed on deceased Medicare beneficiaries, supposedly performed when he was out of the country, and that totaled more than 24 hours for one day. Ordog fabricated patient records to support false claims, he admitted.
Assistant Attorney General Leslie R. Caldwell of the Justice Department’s Criminal Division, United States Attorney Eileen M. Decker, Special Agent in Charge Christian Schrank of the U.S. Department of Health and Human Services’ Office of Inspector General (HHS-OIG) Los Angeles Region and Special Agent in Charge Joseph Fendrick of the California Department of Justice’s Orange County and San Diego Office made the announcement.
“Medical professionals who defraud Medicare drive up the costs associated with healthcare for everyone,” said United States Attorney Eileen M. Decker. “This crime harms both taxpayers and patients.”
Between January 2009 and February 2015, Ordog submitted approximately $2,435,089 in false and fraudulent claims to Medicare, he admitted.Medicare paid approximately $1,295,699 of those claims, according to the plea agreement.
The HHS-OIG and the California Department of Justice investigated the case, which was brought as part of the Medicare Fraud Strike Force, supervised by the Criminal Division’s Fraud Section and the U.S. Attorney’s Office for the Central District of California. Fraud Section Trial Attorneys Ritesh Srivastava and Niall O’Donnell are prosecuting the case.
Since its inception in March 2007, the Medicare Fraud Strike Force, now operating in nine cities across the country, has charged over 2,300 defendants who collectively have billed the Medicare program for over $7 billion. In addition, the HHS Centers for Medicare & Medicaid Services, working in conjunction with the HHS-OIG, are taking steps to increase accountability and decrease the presence of fraudulent providers.
To learn more about the Health Care Fraud Prevention and Enforcement Action Team (HEAT), go to Health Care Fraud Unit.
Bulger Companion Sentenced to 21 Months in Prison for Criminal ContemptRead the Press Release
BOSTON – Catherine Greig, the longtime companion of convicted killer James “Whitey” Bulger, was sentenced today in U.S. District Court in Boston in connection with her refusal to testify before a federal grand jury. The investigation centered on whether others assisted her and Bulger during the 16 years they were fugitives from justice.
“Ms. Greig had a choice – to either assist or defy a Court Order. She had complete control over her own fate. Her repeated defiance translated into criminal contempt and has ultimately cost her more time in prison,” said United States Attorney Carmen M. Ortiz. “First, her role in harboring James Bulger, a murderer, resulted in the victims’ families being forced to lie in wait for justice. Then Ms. Greig’s continued and deliberate effort to protect accomplices extended the injustice, and she will now face the consequences of that decision.”
“The FBI has never wavered in its pursuit to bring Catherine Greig to justice,” said Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation. “Today’s sentence shows that defying a court order and refusing to testify about who harbored, or otherwise assisted her life on the run with Mr. Bulger, is not without consequence. Her actions adversely impacted the government’s efforts to seek answers for Bulger’s victims, and hold accountable anyone who may have helped them during their sixteen years as fugitives.”
Ms. Greig, 64, was sentenced by U.S. District Court Judge F. Dennis Saylor, IV to 21 months in prison to be served consecutively to her current sentence, and three years of supervised release to be served concurrent to the term imposed during her prior conviction. In February 2016, she pleaded guilty to one count of criminal contempt.
Greig is currently serving an eight year sentence for her 2012 conviction of identity fraud and harboring James J. Bulger. The sentence imposed today will be served after she completes her initial eight year sentence.
U.S. Attorney Ortiz and FBI SAC Shaw made the announcement today. The case was prosecuted by Assistant U.S. Attorney Mary B. Murrane of Ortiz’s Criminal Division.
Bronx Man Pleads Guilty to Participating in June 18, 2015, Upper West Side Robbery and MurderRead the Press Release
Preet Bharara, the United States Attorney for the Southern District of New York, announced today that MICHAEL ADAMS, 30, of the Bronx, pled guilty before U.S. Magistrate Judge Frank Maas to participating in an armed robbery of a small business on the Upper West Side of Manhattan on June 18, 2015, which resulted in the shooting and killing of a store clerk, Bubacarr Camera.
U.S. Attorney Preet Bharara stated: “Today, Michael Adams admitted to his role in the June 2015 robbery and murder of innocent shopkeeper Bubacarr Camera. I want to thank the ATF, the NYPD, and the U.S. Marshals for their outstanding investigative work on this important case.”
According to the allegations in the Indictment to which MICHAEL ADAMS pled guilty and other documents in the public record:
On June 18, 2015, MICHAEL ADAMS and two other men, Stephen Adams and Zubearu Bettis, shot and killed Bubacarr Camera in the course of a robbery of a store located at 906 Amsterdam Avenue on the Upper West Side of Manhattan.
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The charges to which MICHAEL ADAMS pled guilty carry a maximum of life in prison, and a mandatory minimum of 10 years in prison. The maximum and minimum penalties are prescribed by Congress and are provided here for informational purposes only, as any sentencing of the defendant would be determined by the judge.
The prosecution is being handled by the Office’s Violent and Organized Crime Unit. Assistant U.S. Attorneys Jared Lenow and Max Nicholas are in charge of the prosecution.
Beaver County Man Indicted on Federal Child Exploitation ChargesRead the Press Release
PITTSBURGH - A Beaver County resident has been indicted by a federal grand jury in Pittsburgh on charges of production and distribution of material depicting the sexual exploitation of a minor, United States Attorney David J. Hickton announced today.
The 12-count indictment, returned on April 27, named Randolph Guy Gum, 22, formerly of Rochester, Pennsylvania, as the sole defendant.
According to the indictment, on or about Jan. 19, 2014; Feb. 3, 2014; Feb. 4, 2014; Feb. 13, 2014; Feb. 14, 2014; Feb. 15, 2014; March 3, 2014; March 11, 2014; April 17, 2014; April 24, 2014; and May 5, 2014, Gum produced visual depictions, images and videos, of the sexual exploitation of a minor. The indictment further alleges that on or about July 23, 2015, Gum knowingly distributed images and videos containing material depicting the sexual exploitation of a minor.
The law provides for a maximum sentence life imprisonment for the production of child pornography counts, and a maximum sentence of 20 years imprisonment for distribution of child pornography, and a fine of $3,000,000.00. 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 and the Rochester Pennsylvania Police Department conducted the investigation leading to the Indictment in this case.
An indictment is an accusation. A defendant is presumed innocent unless and until proven guilty.
This case was brought as part of Project Safe Childhood, a nationwide initiative 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.
Bank Employee Sentenced to Prison for Submitting False Expense ReportsRead the Press Release
JOHNSTOWN, Pa. - A resident of Hollidaysburg, Pa., has been sentenced in federal court to one day in prison, two years’ supervised release and ordered to pay restitution in the amount of $7,132.03 to First National Bank on his conviction of misapplication of funds by a bank employee, United States Attorney David J. Hickton announced today.
United States District Judge Kim R. Gibson imposed the sentence on Timothy C. Nagle, 54, of Hollidaysburg, Pa.
According to information presented to the court, from Oct. 3, 2010, to Jan. 2014, Nagle, a Senior Vice President at First National Bank, Hollidaysburg, Pa., submitted approximately 24 false expense reports, thereby receiving money he was not entitled to.
Assistant United States Attorney John J. Valkovci, Jr., prosecuted this case on behalf of the government.
Mr. Hickton commended the Laurel Highlands Resident Agency of the Federal Bureau of Investigation for the investigation leading to the successful prosecution of Nagle.
Armed Drug Dealer Sentenced to Fifteen Years in PrisonRead the Press Release
OAKLAND – Jeffery Andrew Sardell was sentenced today to fifteen years in prison for possession of a firearm in furtherance of a drug trafficking crime announced United States Attorney Brian J. Stretch and Homeland Security Investigations Special Agent In Charge Ryan L. Spradlin. The sentence was handed down by United States District Court Judge James Donato following a guilty plea entered by the defendant last year.
Sardell, 29, of Hayward, pleaded guilty on December 14, 2015, to possessing two firearms in furtherance of drug trafficking. According to the plea agreement, Sardell admitted that on January 22, 2015, he knowingly possessed approximately 340 grams (net weight) of methamphetamine in his residence, packaged for distribution in 12 separate one-ounce baggies. Sardell also admitted that in furtherance of his drug trafficking, he was carrying a loaded .22 caliber firearm in his car, and possessed a second loaded .45 caliber firearm inside his residence near his methamphetamine stash.
Sardell was charged by a federal grand jury in a Superseding Indictment returned on August 27, 2015. He was charged with being a felon in possession of a firearm and ammunition, in violation of 18 U.S.C. § 922(g); possession with intent to distribute marijuana and methamphetamine, in violation of 21 U.S.C. § 841; and possession of firearms in furtherance of drug trafficking, in violation of 18 U.S.C. § 924(c).
According to filed court documents, Sardell was arrested in January of 2015, after a parole search. The search, conducted by Hayward Police officers, yielded more than $1,700 in cash on Sardell’s person, loaded firearms in his car and house, and methamphetamine, packaging materials, and a scale in his bedroom. At the time of the search, Sardell already was on parole following an assault conviction, as well as on probation for possessing methamphetamine for sale.
This case was the result of an investigation by the Department of Homeland Security, Homeland Security Investigations San Francisco Field Office, and the Hayward Police Department.
Alleged Escapee from Syracuse Halfway House IndictedRead the Press Release
SYRACUSE, NEW YORK – Hector Rueben Padin-Rivera, 39, was indicted yesterday for escaping from the Syracuse Pavilion Residential Re-entry Center on April 4, 2016, announced United States Attorney Richard S. Hartunian.
The indictment alleges that Padin-Rivera was in the Syracuse halfway house following a 2001 conviction for Attempted Distribution of Cocaine Base and a revocation of his supervised release in connection with that conviction. The indictment further alleges that on April 4, 2016, Padin- Rivera left the Syracuse halfway house without permission, and on April 8, 2016, he was arrested pursuant to a Criminal Complaint in Albany. He is currently being held without bail pending trial. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
The charge against Padin-Rivera carries a maximum sentence of 5 years in prison, a fine of up to $250,000, and a term of supervised release of up to 3 years. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
This case is being investigated by the United States Marshals Service and is being prosecuted by Assistant U.S. Attorney Robert Levine.
Alien in Oswego County Charged with Illegally Reentering United StatesRead the Press Release
SYRACUSE, NEW YORK – Jesus Alberto Medina-Montes, 24, was indicted yesterday for illegally reentering the United States without inspection after having been previously removed from the United States, announced United States Attorney Richard S. Hartunian.
The indictment charges Medina-Montes with illegal reentry of a removed alien and alleges that on April 7, 2016, Medina-Montes, an alien who was previously removed from the United States to Mexico on October 26, 2010, was found in Parish, New York. The charges in the indictment are merely accusations. The defendant is presumed innocent until proven guilty.
The charge filed against Medina-Montes carries a maximum sentence of 2 years in prison, a fine of up to $250,000, and a term of supervised release of up to 1 year. A defendant’s sentence is imposed by a judge based on the particular statute the defendant is charged with violating, the U.S. Sentencing Guidelines and other factors.
Medina-Montes was arrested on April 8, 2016 pursuant to a Criminal Complaint and is being detained without bail pending trial by order of the court.
This case is being investigated by the U.S. Department of Homeland Security, U.S. Customs & Border Protection and is being prosecuted by Assistant U.S. Attorney Robert Levine.
Albuquerque Man Pleads Guilty to Defrauding Federal Food Stamp ProgramRead the Press Release
ALBUQUERQUE – Sergio Escobedo, 37, of Albuquerque, N.M., entered a guilty plea this morning to defrauding the Supplemental Nutrition Assistance Program, more commonly known as the Food Stamp Program.
Escobedo is one of six defendants charged with defrauding the Food Stamp Program in a 32-count indictment that was filed in Aug. 2014. The indictment alleged that between Sept. 2009 to May 2010, Escobedo, conspired with Joseph Martin Padilla, 34, Wilfredo Lopez, 47, Joshua Moya, 34, Justin Quintana, 30, and Veronica Hernandez, 42, to defraud the United States through the unauthorized use of Food Stamp benefits, which are currently called Supplemental Nutrition Assistance Program (SNAP) benefits. During this time, Padilla worked as a Family Assistance Analyst for the Income Support Division of the New Mexico Human Services Department (HSD) where he was responsible for determining applicants’ eligibility and benefit level for SNAP benefits.
SNAP is funded by the U.S. Department of Agriculture and is administered by the States. The program was created to alleviate hunger and malnutrition, and permits low income households to obtain more nutritious diet by increasing the food purchasing power for eligible households. In New Mexico, individuals qualify to participate in SNAP based on income and need by completing an application with the Income Support Division of HSD. Once an applicant is deemed eligible for SNAP benefits by a Family Assistance Analyst, the Analyst establishes a SNAP account in the applicant’s name and electronic benefit transfers (EBT), which are determined based on income, resources and household size, are deposited into the account on a monthly basis.
The indictment charged Padilla with abusing his position as a Family Assistance Analyst by conspiring with his co-defendants to defraud the United States through the unauthorized use of SNAP benefits. It alleged that Padilla used names and personal identifiers he obtained from his co-defendants to establish fraudulent SNAP accounts, sometimes in exchange for cash or other things of value. It also charged Padilla with establishing and using a fraudulent SNAP account to fraudulently obtain approximately $1,468.00 in SNAP benefits for himself. According to the indictment, Padilla fraudulently established 25 separate SNAP accounts through which the United States was defrauded of approximately $45,263.00 in SNAP benefits. Additionally, Padilla, aided and abetted by his co-defendants, fraudulently established SNAP accounts that were used to fraudulently obtain an aggregate of $12,705.00 in SNAP benefits.
During today’s proceedings, Escobedo pled guilty to one count of the indictment and admitted that he met with Padilla in Jan. 2009, and paid $100.00 for Padilla to process a SNAP benefit application in Escobedo’s name even though Escobedo was ineligible to receive SNAP benefits at that time. Escobedo further admitted that from Sept. 1, 2009 through Feb. 16, 2010 he obtained $4,678.00 in illegal SNAP benefits for himself. At sentencing, Escobedo faces a statutory maximum penalty of five years in prison. A sentencing hearing has yet to be scheduled.
On Nov. 23, 2015, Padilla pled guilty two counts of the indictment and admitted that he was previously employed by HSD and despite his awareness of the policies and procedures of HSD, he processed numerous applications for SNAP benefits in a fraudulent manner in exchange for cash payments. Padilla acknowledged that his illegal conduct resulted in an aggregate loss to the U.S. Department of Agriculture and the State of New Mexico of approximately $181,398.76. Padilla was sentenced on Feb. 22, 2016, to a year and a day in prison followed by three years of supervised release and was ordered to pay $181,398.76 in restitution to the USDA.
On May 19, 2015, Lopez entered a guilty plea to one count of the indictment and admitted that he completed fraudulent applications for SNAP benefits in his name, another for himself in a pseudonym, and in the names of two other individuals. Lopez paid $100.00 to process each of the applications. Lopez was sentenced on Jan. 14, 2016, to four years of probation and was ordered to pay $8,382.00 in restitution to the USDA.
On May 18, 2015, Quintana pled guilty to one count of the Indictment, and admitted meeting Padilla through Moya, and knowing that Padilla had the ability to register people to receive food stamps. Quintana admitted that he agreed to pay Padilla a fee in exchange for arranging for him to receive food stamps unlawfully. Quintana obtained $486.00 in SNAP benefits through his illegal conduct. He also received a fee for collecting SNAP applications from six other people and delivering the completed applications to Padilla for the purpose of assisting them in obtaining SPA benefits unlawfully. Quintana acknowledged that his criminal conduct caused a monetary loss to the U.S. Department of Agriculture of $9,384.00. Quintana was sentenced on Aug. 17, 2015, to three years of probation and was ordered to pay $9,384.00 in restitution.
On March 9, 2015, Moya pled guilty to one count of the indictment and admitted that he fraudulently obtained SNAP benefits to which he was not entitled. Moya admitted that in early Dec. 2009, Padilla provided him with an application to obtain food stamps. Moya completed the application and returned it to Padilla for processing even though he knew that he was not entitled to SNAP benefits. Moya admitted unlawfully receiving $866.00 in SNAP benefits. Moya also admitted providing another application for SNAP benefits to a family member and that his relative unlawfully received $1,578.00 in SNAP benefits. On May 6, 2015, Moya was sentenced to six months in prison, or time served, followed by three years of supervised release. Moya also was ordered to pay $2,444.00 in restitution.
Hernandez has entered a not guilty plea to the charges in the indictment. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty beyond a reasonable doubt.
This case was investigated by the Office of Inspector General for the U.S. Department of Agriculture and the Office of Inspector General for New Mexico Human Services, and is being prosecuted by Assistant U.S. Attorney Sean J. Sullivan.
Alabama and Georgia Residents Sentenced to Prison for Involvement in Stolen Identity Tax Refund Fraud SchemeRead the Press Release
Two men who conspired to file more than 1,200 false tax returns using stolen identities were sentenced to prison today, announced Acting Assistant Attorney General Caroline D. Ciraolo of the Justice Department’s Tax Division and U.S. Attorney George L. Beck Jr. of the Middle District of Alabama.
Ernest James Simmons Jr., 29, of Phenix City, Alabama, was sentenced to 24 months and 15 days in prison followed by five months of home detention and Calvin J. Perry, 28, of Atlanta, Georgia, was sentenced to 32 months in prison. Simons and Perry each pleaded guilty in December 2015 to one count of conspiracy to defraud the government with respect to filing false income tax refund claims and one count of aggravated identity theft.
According to court documents and evidence presented at the sentencing hearing, between 2010 and 2012, Simmons and Perry conspired with Perry’s mother, Pamela Ann Smith, to run a large-scale stolen identity refund fraud scheme from Smith’s tax return preparation business, Jaycal Tax Service, in Phenix City. Smith recruited her son Perry, and Perry’s friend, Simmons, to participate in the scheme. As part of the conspiracy, Smith, Perry and Simmons opened multiple bank accounts and post office boxes. They filed more than 1,200 federal income tax returns using the stolen personal identification information of actual individuals, which included their names and social security numbers. Simmons was directly connected to false returns claiming more than $700,000 in fraudulent refunds and Perry was directly connected to false returns claiming over $1 million in fraudulent refunds. U.S. Treasury checks were mailed to physical addresses and post office boxes and then deposited into multiple bank accounts, all under the control of Simmons, Perry and Smith. Perry personally obtained more than $300,000 and Simmons personally obtained more than $150,000, from the scheme.
In addition to the prison term, U.S. District Judge Myron H. Thompson ordered Perry and Simmons each to serve three years of supervised release. Perry was also ordered to pay restitution in the amount of $308,152 and Simmons was ordered to pay restitution in the amount of $167,194. In February, Smith was sentenced to serve 51 months in prison after pleading guilty for her role in the scheme.
Acting Assistant Attorney General Ciraolo and U.S. Attorney Beck commended special agents of Internal Revenue Service–Criminal Investigation, who investigated the case and Trial Attorneys Gregory P. Bailey, Michael C. Boteler and Robert J. Boudreau of the Tax Division and Assistant U.S. Attorney Jonathan Ross of the Middle District of Alabama, who prosecuted the case.
Additional information about the Tax Division and its enforcement efforts may be found on the division’s website.
Acting U.S. Attorney Hosts Stakeholder Session to Celebrate Inaugural National Reentry WeekRead the Press Release
COLUMBUS, Ohio – Acting U.S. Attorney Benjamin C. Glassman, in partnership with the Ohio Department of Rehabilitation and Correction Office of Reentry and the Ohio Association of Local Reentry Coalitions, convened professional reentry stakeholders from across the District to discuss best practices and partnerships moving forward.
As part of the Obama Administration’s commitment to strengthening the criminal justice system, the Department of Justice designated the week of April 24-30, 2016, as National Reentry Week. National Reentry Week events are taking place in all 50 states, the District of Columbia, Puerto Rico and the Virgin Islands. U.S. Attorney’s Offices alone are hosting more than 200 events and Bureau of Prisons facilities are holding more than 370 events.
“Too often, justice-involved individuals who have paid their debt to society confront daunting obstacles to good jobs, decent housing, adequate health care, quality education, and even the right to vote,” said Attorney General Lynch. “National Reentry Week highlights the many ways that the Department of Justice – and the entire Obama Administration – is working to tear down the barriers that stand between returning citizens and a meaningful second chance – leading to brighter futures, stronger communities, and a more just and equal nation for all.”
More than 50 individuals representing 30 local, state and federal government agencies and service providers participated, including leadership from the U.S. District Court, Federal Probation Office, Governor John Kasich’s Office and Franklin County Commissioner Marilyn Brown’s Office.
“Reentry is a matter of both public safety and justice, and we are committed to it,” Acting U.S. Attorney Glassman said. “In this, as in so many areas, we are at our best when we collaborate, share information, and work together. Today’s session is a step forward in connecting the many worthy efforts at strengthening reentry in Ohio at the local, state, and federal levels. I am proud to work with all of these partners in support of making Ohio a safer and fairer place for all of our citizens, including those returning home after a term of incarceration.”
The group committed to building more effective partnerships moving forward between every level of government by formalizing information sharing and reconvening at least annually.
To join future efforts, contact Jennifer Thornton at [email protected].
27 April 2016
Wyeth and Pfizer Agree to Pay $784.6 Million to Resolve Lawsuit Alleging that Wyeth Underpaid Drug Rebates to MedicaidRead the Press Release
BOSTON – United States Attorney Carmen M. Ortiz announced today that drug companies Wyeth and Pfizer, Inc., have agreed to pay $784.6 million to resolve allegations that Wyeth failed to give the government the same discounts it provided to private purchasers of its drugs, as required by the Medicaid program.
“This significant settlement illustrates that the government will not permit drug companies to dodge their obligations to the Medicaid program or create elaborate pricing schemes to deceive Medicaid into paying more than it should for drugs,” said U.S. Attorney Ortiz. “This settlement, after years of hard-fought litigation, shows our commitment to ensuring that healthcare businesses do not take advantage of the federal health insurance programs which serve those who need assistance most.”
“This settlement demonstrates our unwavering commitment to hold pharmaceutical companies responsible for pursuing pricing schemes that attempt to manipulate and overcharge federal health care programs – programs that protect the poor and disabled – for drugs sold to commercial customers at much lower prices,” said Principal Deputy Attorney General Benjamin Mizer, head of the Civil Division for the Department of Justice.
“When we make agreements with others we expect follow-through,” said Phillip Coyne, Special Agent in Charge with the Office of Inspector General of the U.S. Department of Health and Human Services. “Similarly, taxpayers rightly expect large pharmaceutical companies will not falsely report prices to boost profits. Any drug company shirking those responsibilities can expect to be held accountable for its deception.”
According to the government’s complaint, Wyeth gave thousands of hospitals deep discounts on two of its proton pump inhibitor (PPI) drugs, Protonix Oral and Protonix IV, but failed to report those discounts to Medicaid. The government alleged that Wyeth “bundled” discounts on Protonix Oral with discounts on Protonix IV in order to induce hospitals to use Protonix Oral, which hospitals otherwise would have had little incentive to use because other pre-existing oral PPI drugs were priced competitively and were considered to be at least as effective and safe. Wyeth wanted to control the hospital market because patients discharged from the hospital on Protonix Oral were likely to stay on the drug for long periods of time, during which payers, including Medicaid, would pay nearly full price for the drug.
Under the Medicaid program, which is the nation’s provider of health insurance to the poor and disabled, drug companies must report to the government the best prices they offer other customers for their brand name drugs. Based on these reported best prices, the drug companies pay rebates to the state Medicaid programs so that Medicaid receives the same discounts that drug companies offer to other large customers in the marketplace.
The government alleged that Wyeth hid from Medicaid the bundled discounts it gave to hospitals on Protonix Oral and Protonix IV. As a result, Wyeth wrongfully avoided paying hundreds of millions of dollars in rebates to Medicaid from 2001 to 2006.
Under the terms of today’s settlement, Wyeth will pay $413,248,820 to the federal government and $371,351,180 to state Medicaid programs. The settlement resolves allegations filed by two whistleblowers, Lauren Kieff and William St. John LaCorte. See United States ex rel. Kieff and LaCorte v. Wyeth and Pfizer, Inc., Nos. 03-12366 and 06-11724-DPW (D. Mass.). The False Claims Act permits private parties to sue on behalf of the government for false claims for government funds and to receive a share of any recovery. Under the terms of the settlement agreement, the federal and state governments will pay a combined relator share of $98,058,190.
As part of the settlement, Wyeth and Pfizer do not deny the government’s allegations. Pfizer, which is headquartered in New York City, acquired Wyeth in 2009. The conduct at issue occurred prior to the acquisition.
This settlement is part of the government’s ongoing initiative to combat health care fraud, and specifically to reduce and prevent Medicare and Medicaid fraud. One of the most powerful tools in this effort is the False Claims Act. Since the beginning of the 2016 fiscal year, the District of Massachusetts has recovered over $1 billion in health care fraud settlements on behalf of American taxpayers, and simultaneously has secured the payment of over $150 million to whistleblowers who initiated these matters. For more information, see Warner Chilcott, Millennium Health, RehabCare, Coloplast Corp., and Boston Medical Center.
This matter was investigated by the U.S. Department of Health and Human Services, Office of the Inspector General and the Federal Bureau of Investigation. It was handled by Assistant U.S. Attorneys Gregg Shapiro, Brian Pérez-Daple, and Kriss Basil of Ortiz’s Office and Justice Department Trial Attorneys Sanjay Bhambhani, Andy Mao, Zoila Hinson, and Christopher Terranova of the Civil Division’s Commercial Litigation Branch.
Wyeth and Pfizer Agree to Pay $784.6 Million to Resolve Lawsuit Alleging That Wyeth Underpaid Drug Rebates to MedicaidRead the Press Release
The Department of Justice announced today that pharmaceutical companies Wyeth and Pfizer Inc. have agreed to pay $784.6 million to resolve allegations that Wyeth knowingly reported to the government false and fraudulent prices on two of its proton pump inhibitor (PPI) drugs, Protonix Oral and Protonix IV. Pfizer, which is headquartered in New York City, acquired New Jersey-based Wyeth in 2009, approximately three years after Wyeth had ended the conduct that gave rise to the settlement.
“This settlement demonstrates our unwavering commitment to hold pharmaceutical companies responsible for pursuing pricing schemes that attempt to manipulate and overcharge federal health care programs – programs that protect the poor and disabled – for drugs sold to commercial customers at much lower prices,” said Principal Deputy Assistant Attorney General Benjamin C. Mizer, head of the Justice Department’s Civil Division.
“This significant settlement illustrates that the government will not permit drug companies to dodge their obligations to the Medicaid program or create elaborate pricing schemes to deceive Medicaid into paying more than it should for drugs,” said U.S. Attorney Carmen Ortiz for the District of Massachusetts. “This settlement, after years of hard-fought litigation, shows our commitment to ensuring that healthcare businesses do not take advantage of the federal health insurance programs which serve those who need assistance most.”
PPI drugs are used to treat symptoms of, among other things, acid reflux. In a complaint filed in 2009, the government alleged that Wyeth failed to report deep discounts on Protonix Oral and Protonix IV that it made available to thousands of hospitals nationwide. As part of the settlement, Wyeth and Pfizer do not deny the government’s allegations.
According to the government’s complaint, Wyeth sold Protonix Oral and Protonix IV through a bundled sales arrangement in which a hospital could earn deep discounts on both drugs if it placed them on formulary and made them “available” within the hospital. Through this bundled arrangement, Wyeth sought to induce hospitals to buy and use Protonix Oral, which hospitals otherwise would have had little incentive to use, because other pre-existing oral PPI drugs were priced competitively and were considered to be as safe and effective. Wyeth wanted to control the hospital market because patients discharged from the hospital on Protonix Oral were likely to stay on the drug for long periods of time, rather than switch to competing PPIs, during which time payers, including Medicaid, would pay nearly full price for the drug.
Under the Medicaid program, which is the nation’s provider of health insurance to the poor and disabled, drug companies must report to the government the best prices they offer other customers for their brand name drugs. Based on these reported best prices, the drug companies pay rebates to the state Medicaid programs so that Medicaid, a large purchaser of drugs, receives the benefit of the same discounts drug companies offer to other large customers in the marketplace.
The government alleged that Wyeth hid from Medicaid the bundled discounts Wyeth gave to hospitals on Protonix Oral and Protonix IV. As a result, Wyeth wrongfully avoided paying hundreds of millions of dollars in rebates to Medicaid during the period from 2001 to 2006. Under the terms of today’s settlement, Wyeth will pay $413,248,820 to the federal government and $371,351,180 to state Medicaid programs.
“When we make agreements with others we expect follow-through,” said Special Agent in Charge Phillip Coyne of the U.S. Department of Health and Human Services Office of Inspector General (HHS-OIG). “Similarly, taxpayers rightly expect large pharmaceutical companies will not falsely report prices to boost profits. Any drug company shirking those responsibilities can expect to be held accountable for its deception.”
“This litigation and settlement demonstrate the commitment of my office and other state attorneys general across the country to ensuring that pharmaceutical companies live up to their obligations to the Medicaid program,” said New York Attorney General Eric T. Schneiderman.
The settlement resolves allegations filed under the False Claims Act by Lauren Kieff, a former hospital sales representative for the pharmaceutical company AstraZeneca Pharmaceuticals, LP, and William St. John LaCorte, a physician practicing in New Orleans, Louisiana. Under the False Claims Act, private parties may sue on behalf of the government for false claims for government funds and to receive a share of any recovery. The relator share in this case will be $98,058,190 and will be paid from the proceeds of the federal and state settlements.
The settlement was the result of close cooperation between the Civil Division’s Commercial Litigation Branch, the U.S. Attorney’s Office for the District of Massachusetts, the state attorneys general and other law enforcement entities including Medicaid Fraud Control Units, and the HHS-OIG.
This settlement illustrates the government’s emphasis on combating health care fraud and marks another achievement for the Health Care Fraud Prevention and Enforcement Action Team (HEAT) initiative, which was announced in May 2009 by the Attorney General and the Secretary of Health and Human Services. The partnership between the two departments has focused efforts to reduce and prevent Medicare and Medicaid financial fraud through enhanced cooperation. One of the most powerful tools in this effort is the False Claims Act. Since January 2009, the Justice Department has recovered a total of more than $29 billion through False Claims Act cases, with more than $17.5 billion of that amount recovered in cases involving fraud against federal health care programs. The case is captioned United States ex rel. Kieff and LaCorte v. Wyeth and Pfizer, Inc., Nos. 03-12366 and 06-11724-DPW (D. Mass.).
Wilson Man Sentenced for Drug Trafficking and Firearm OffensesRead the Press Release
RALEIGH – The United States Attorney’s Office announced that yesterday in federal court, Senior United States District Judge James C. Fox sentenced DENNIS TAYLOR, 55, of Wilson to 154 months imprisonment, followed by 5 years of supervised release.
TAYLOR was named in a two-count Indictment filed on May 7, 2015, charging him with Conspiracy to Distribute and Possess with the Intent to Distribute 28 grams or more of cocaine base (crack) and Using and Carrying a Firearm During and in Relation to a Drug-Trafficking Offense and aiding and abetting. On September 28, 2015, TAYLOR pled guilty to both Counts of the Indictment.
From September, 2013 to June, 2014, detectives with the Wilson County Sheriff’s Office Special Operations Division conducted an investigation involving the distribution of crack cocaine and firearms in the Rainwater and Artis Road area of Lucama. The investigation began as deputies had responded to this area of the county for numerous years for various complaints to include illegal street racing and drug activity. Throughout the course of the investigation, detectives seized a total of nearly 200 grams of crack cocaine and 12 firearms to include two .22 caliber rifles, two 7.62 SKS rifles, three .22 caliber pistols, a 9mm pistol, a .45 caliber pistol, a .17 caliber rifle, a 20 gauge shotgun, and a .380 pistol. A majority of the firearms that were seized throughout the investigation had been reported stolen. This case was part of Operation E.O.G. (Education Over Guns), an initiative conducted in June 2014.
Investigation of this case was conducted by the Bureau of Alcohol, Tobacco, Firearms, & Explosives and the Wilson County Sheriff’s Office with Detective Brandon Barbrey the lead investigator. Assistant United States Attorney Edward D. Gray prosecuted the case for the government.
U.S. Attorney’s Office Spreads Anti-Drug/Anti-Gang Message During Reading Program for Kindergarten Students at a Dallas Elementary SchoolRead the Press Release
DALLAS — Representatives from the U.S. Attorney’s Office for the Northern District of Texas were welcomed today at Gabe Allen Elementary School in west Dallas, where they were invited to read to kindergartners.
As part of the District’s crime prevention and community outreach activities, U.S. Attorney’s Office representatives took the Justice Department’s anti-drug/anti-gang messaging to kindergarten classes at the school using the Rotary Club of Dallas’s “I Like Me” book program. Today, each student received a personalized “I Like Me” book that encourages them to be good and take the right paths in life, such as saying no to drugs and gangs – making it a perfect tool for law enforcement personnel to use to interact positively with children.
Each personalized book features that student as a central character in the book, as well as the names of the student’s two best friends, their teacher, and their school. Personalizing the book enhances the student’s self-esteem, helps develop a joy of reading, and overcomes the disinterest some students experience due to their inability to relate to the people in other stories. Since 1993, over half a million children around the world have participated in the “I Like Me” program.
This program is just another example of the partnerships that community groups and law enforcement undertake to build mutual trust and make our communities a safer place for all of us to live.
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U.S. Attorney’s Office Hosts Reentry Seminar in Tucson as Part of National Reentry WeekRead the Press Release
TUCSON, Ariz. – The Department of Justice has designated the week of April 24-30, 2016, as “National Reentry Week.” Reentry is a key priority of the Department and involves helping formerly-incarcerated individuals successfully reenter their communities, and avoid recidivism, by competing for jobs, attaining stable housing, and supporting their families.
On April 25, 2016, as part of National Reentry Week, the Arizona U.S. Attorney’s Office partnered with the U.S. Probation Office, the Federal Bureau of Prisons, and several faith-based and non-governmental agencies to host a “What Happens Now” seminar in Tucson. The event was geared toward the families of federal inmates scheduled to be released to Pima County in the coming months. During the seminar, family members were encouraged to support their loved ones’ transition from prison, to maintain ongoing communication with their loved ones, and to provide positive reinforcement.
“Inmates should have a meaningful second chance to rebuild their lives, and their family relationships, after they have paid their debt to society,” said U.S. Attorney John S. Leonardo. “Promoting reentry is crucial to making our communities stronger and safer.”
RELEASE NUMBER: 2016-035_Reentry Initiative
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For more information on the U.S. Attorney’s Office, District of Arizona, visit http://www.justice.gov/usao/az/
Follow the U.S. Attorney’s Office, District of Arizona, on Twitter @USAO_AZ for the latest news.
U.S. Attorney for the Northern District of Texas Launches Prescription Drug Abuse Prevention Public Service AnnouncementRead the Press Release
DALLAS — John Parker, the United States Attorney for the Northern District of Texas, announced the release today of a public service announcement (PSA) that addresses the dangers of prescription drug abuse and recommends ways parents can keep their children safe.
The announcement is made in advance of this year’s National Prescription Drug Take-Back Day this Saturday, April 30, 2016. Take-Back Day provides a safe, convenient and responsible means of disposing of unused prescription drugs, while educating the public about the dangers of misusing medications.
According to the Centers for Disease Control, 46 people die each day from an overdose of prescription painkillers in the United States. The rate of prescription painkiller overdoses has more than quadrupled since 1999 and is now the leading cause of injury death, causing more deaths than motor vehicle traffic accidents annually.
Teens and young adults, who mistakenly believe prescription drugs are safer than illicit drugs, are abusing pills at an alarming rate. One in four teens has misused or abused a prescription drug at least once in their lifetime, a 33 percent increase since 2008.
The increase in the use of prescription drugs has also led to an explosion of heroin abuse. The recent national heroin abuse rate is 19 times higher among those who reported prior use of prescription pain relievers than among those who did not report such use. And four out of every five people who try heroin for the first time admit to having abused prescription pain relievers first.
Prescription drug abuse prevention has long been a priority of the Administration. For more information regarding the Administration’s efforts see this White House Fact Sheet.
The PSA provides tips on how parents can dispose of prescription drugs safely, since the home medicine cabinet is the number-one source of prescription pills for teens and young adults. On Take-Back Day, collection sites will be open from 10:00 a.m. to 2:00 p.m. Click here to locate a collection site near you.
The PSA may be found here. Media requesting a high resolution version may contact the U.S. Attorney’s Office of Public Affairs at [email protected] or 214-659-8600.
# # #U.S. Attorney Jill Westmoreland Rose Meets with Leadership of Reentry Councils to Discuss the Efforts of Western District's Reentry Programs for Former OffendersRead the Press Release
CHARLOTTE, N.C. – United States Attorney Jill Westmoreland Rose met today with the leadership of Reentry Councils for Mecklenburg and Buncombe counties and a Project Reentry representative for Iredell county, to discuss the efforts of reentry programs in place aimed at reducing recidivism and helping former offenders transition successfully into mainstream society following incarceration. The Department of Justice has designated the week of April 24-30, 2016, as National Reentry Week, to bring attention to some of the unique challenges faced by formerly incarcerated individuals and to highlight the department’s efforts to support and strengthen reentry programs and to help former inmates stay out of the criminal justice system.
“The challenges faced by former offenders released from prison are multiple and can oftentimes contribute to a cycle of incarceration,” said U.S. Attorney Rose following today’s meeting. “Lack of employment and housing opportunities, educational needs, substance abuse and lack of vocational training are some of the barriers that can make a difference in whether a person successfully reenters society after serving his or her prison term. We are partnering with community organizations across the district to remove some of these obstacles and to provide former offenders with the tools and resources they need to be productive, law-abiding citizens post release.”
Reentry Councils for Mecklenburg and Buncombe Counties and Project Reentry for Iredell County are organizations that provide services to previously incarcerated individuals in their respective communities. At today’s meeting, each representative provided an overview of the services their programs offer to former inmates or those nearing the end of their prison term, including vocational training, finding and maintaining employment, access to education, housing needs, life skills training, parenting coaching, anger management, and substance abuse counseling. During today’s meeting, current challenges and ways of improving existing programs were discussed, as well as future initiatives and goals to enhance reintegration outcomes.
As part of National Reentry Week, U.S. Attorney General Loretta E. Lynch released this week the “Roadmap to Reentry,” the Department’s comprehensive vision to reduce recidivism through reentry reforms at the Federal Bureau of Prisons (BOP). These efforts will help those who have paid their debt to society prepare for substantive opportunities beyond the prison gates, promote family unity, contribute to the health of our economy, advance public safety and sustain the strength of our communities.
Each year, more than 600,000 citizens return to our neighborhoods after serving time in federal and state prisons. Another 11.4 million individuals cycle through local jails. And nearly one in three Americans of working age have had some sort of encounter with the criminal justice system — mostly for relatively minor, non-violent offenses, and sometimes from decades in the past. The long-term impact of a criminal record prevents many people from obtaining employment, housing, higher education, and credit — and these barriers affect returning individuals even if they have turned their lives around and are unlikely to reoffend.
The principles outlined in the “Roadmap to Reentry” are aligned with the work of the Federal Interagency Reentry Council which has been working since its creation five years ago to reduce recidivism and improve employment, education, housing, health and child welfare outcomes.
Two Orlando Men Involved in Carjacking of Federal Officer Sentenced to Federal PrisonRead the Press Release
Orlando, Florida – U.S. District Judge Gregory A. Presnell has sentenced two Orlando men for carjacking and using a firearm while committing that offense. Gregory McDonald (18) was sentenced to 20 years in federal prison and Dante Askins (18) was sentenced to 14 years in federal prison. Both men pleaded guilty in February 2016.
According to court documents, on August 12, 2015, McDonald and Askins committed an armed carjacking of a U.S. Customs and Border Protection officer at a hotel in Orlando. The victim, who was on vacation with his family, had gone down to his SUV in the hotel parking lot to preload his GPS for a trip to Destin the next morning. Askins approached the victim and stuck a long-barreled .22 caliber revolver in his face. He, along with McDonald and two minors, then forced the victim into the backseat of his vehicle at gunpoint. McDonald pistol whipped the victim three times in the back of the head. The carjackers held the victim for approximately two hours. When OnStar location services contacted the vehicle, the carjackers fled and the victim escaped.
This case was investigated by the Federal Bureau of Investigation, the Orange County Sheriff’s Office, and the Florida Department of Law Enforcement. It was prosecuted by Assistant United States Attorney Tiffany L. Cummins.
Two Northeast Alabama Men Indicted in Joppa Post Office BurglaryRead the Press Release
BIRMINGHAM – A federal grand jury today indicted two northeast Alabama men for burglarizing a U.S. Post Office in Joppa, announced U.S. Attorney Joyce White Vance and U.S. Postal Inspection Service, Postal Inspector in Charge Adrian Gonzalez.
Separate four-count indictments filed in U.S. District Court charge CLAY AUSTIN PARKER, 34, of Arab, and BRETT MICHAEL BAKER, 30, of Albertville, with one count each of post office burglary, theft of a post office key, theft of postal property and theft of postal money orders stemming from the burglary of the Joppa Post Office on Dec. 28. PARKER and BAKER join ANDREW CLAYTON ROGERS and TESSA JEAN MCCAY, who were indicted in March for the 2015 burglary.
The maximum penalty for theft of a post office key is 10 years in prison and a $250,000 fine. The maximum penalty for post office burglary and theft of postal money orders is five years in prison and a $250,000 fine. The maximum penalty for theft of postal property is three years in prison and a $250,000 fine.
The U.S. Postal Inspection Service investigated the case, which Assistant U.S. Attorney Davis Barlow is prosecuting.
An indictment contains only charges. A defendant is presumed innocent unless and until proven guilty.
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Two Malaysian Men Sentenced to Federal Prison for Smuggling Endangered Wildlife into U.S.Read the Press Release
PORTLAND, Ore. - Two Malaysian nationals pled guilty to conspiring to smuggle wildlife today after they used mail parcels to smuggle five orangutan skulls and nine other protected species of wildlife, including bear claws and macaque skulls, into the District of Oregon.
Eoin Ling Churn Yeng, 35, and Galvin Yeo Siang Ann, 33, both Malaysian citizens, admitted before U.S. District Judge Robert E. Jones to conspiring to smuggle wildlife into the District of Oregon from 2008 through 2015. Following their guilty pleas the Court immediately sentenced them to six months in prison and fines totaling $25,000.00. Each defendant was also ordered to perform 240 hours of community service and will be required to serve one year of supervised release after his prison term.
The investigation into Ling and Yeo began in 2013, when a routine search of an international package revealed a helmeted hornbill mandible that was being shipped to a residence in Forest Grove, Oregon. Helmeted hornbills are listed as endangered under the Endangered Species Act (ESA) and protected by the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES). Agents with the U.S. Fish and Wildlife Service (Service) initiated an undercover operation named “Operation Pongo,” for the orangutan genus Pongo. The investigation revealed that Ling and Yeo were co-owners of an online business that has smuggled approximately $95,000 worth of endangered wildlife into the U.S. since 2004.
Undercover Service agents communicated with Ling and Yeo and purchased three orangutan skulls, four helmeted hornbill skulls, one CITES-protected rhino hornbill head, one ESA-protected babirusa (wild pig) skull, one CITES-protected langur skull, and one ESA-protected dugong (marine mammal) rib over the course of the operation. In December 2015, Ling and Yeo traveled to Portland to meet an associate, but agents with Service and the National Oceanic and Atmospheric Administration arrested them soon after their arrival.
“I commend all the agencies that played a role in this successful investigation and prosecution,” said U.S. Fish and Wildlife Service Deputy Chief Edward Grace. “Orangutans are one of the rarest great ape species on Earth, and the desire to possess a skull from one as tourist art or trophy in someone's collection will not be tolerated. The Service will continue to fully investigate and bring to justice those individuals who continue to perpetrate criminal acts involving orangutans and other protected wildlife species.”
Operation Pongo was conducted by the U.S. Fish and Wildlife Service, which received assistance from the Office of International Affairs, Environmental Crimes Section of the Environment and Natural Resources Division, U.S. State Department, FBI Legal Attaché in Kuala Lumpur, National Oceanic and Atmospheric Administration, Bureau of Land Management, and the Multnomah County Sheriff’s Office. The case was prosecuted by Assistant U. S. Attorney Ryan W. Bounds.
Two Kansas Men Charged with Attacking Somali Men Because of Their Race and National OriginRead the Press Release
WICHITA, KAN. – Omar Cantero Martinez, 31, and Armando Sotelo, 24, both of Dodge City, Kan., were charged with federal hate crimes for attacking three Somali men because of their race and national origin. Acting U.S. Attorney Tom Beall of the District of Kansas and Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, made the announcement.
The indictment, which was unsealed today, charges Martinez and Sotelo with three counts of causing bodily injury to a victim because of actual and perceived race and national origin. The charges are filed under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, which criminalizes willfully causing bodily injury to any person because of that person’s actual or perceived race, color, religion or national origin, gender, sexual orientation, gender identity or disability.
The indictment alleges that on June 19, 2015, Martinez and Sotelo caused bodily injury to three Somali men who were lawfully present in the United States and residing in Dodge City. The attackers are alleged to have used a broken glass bottle in the assault against two of the Somali men.
Each charge carries a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Indictments are merely allegations of criminal conduct, and all defendants are presumed innocent until and unless proven guilty.
The case is being investigated by the FBI and the Dodge City Police. The case is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Mona Furst of the District of Kansas.
Two Kansas Men Charged for Attacking Somali Men Because of their Race and National OriginRead the Press Release
Omar Cantero Martinez, 31, and Armando Sotelo, 24, both of Dodge City, Kansas, were charged with federal hate crimes for attacking three Somali men because of their race and national origin. Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, and Acting U.S. Attorney Tom Beall of the District of Kansas made the announcement.
The indictment, which was unsealed today, charges Martinez and Sotelo with three counts of causing bodily injury to a victim because of actual and perceived race and national origin. The charges are filed under the Matthew Shepard and James Byrd Jr. Hate Crimes Prevention Act, which criminalizes willfully causing bodily injury to any person because of that person’s actual or perceived race, color, religion or national origin, gender, sexual orientation, gender identity or disability.
The indictment alleges that on June 19, 2015, Martinez and Sotelo caused bodily injury to three Somali men who were lawfully present in the United States and residing in Dodge City. The attackers are alleged to have used a broken glass bottle in the assault against two of the Somali men.
Each charge carries a maximum penalty of 10 years in federal prison and a fine up to $250,000.
Indictments are merely allegations of criminal conduct, and all defendants are presumed innocent until and unless proven guilty.
The case is being investigated by the FBI and the Dodge City Police. The case is being prosecuted by Trial Attorney Risa Berkower of the Civil Rights Division’s Criminal Section and Assistant U.S. Attorney Mona Furst of the District of Kansas.
Martinez and Sotelo Indictment
Twice-Removed Mexican Sentenced to Time Served for Returning to United StatesRead the Press Release
PITTSBURGH - A native of Mexico pleaded guilty in federal court to a charge of reentry of removed alien and was sentenced to time served, United States Attorney David J. Hickton announced today.
Jose Alfredo Mora-Aguilar, 34, of Coraopolis, Pa., pleaded guilty to one count before United States District Judge Mark R. Hornak.
In connection with the guilty plea, the court was advised that Mora-Aguilar was found in the United States despite having been removed on two prior occasions.
Assistant United States Attorney James T. Kitchen is prosecuting this case on behalf of the government.
Homeland Security Investigations conducted the investigation that led to the prosecution of Jose Alfredo Mora-Aguilar.
Taos County Businessman Arraigned on Federal Tax ChargesRead the Press Release
ALBUQUERQUE – Robert Baños, 45, of Red River, N.M., was arraigned today on a five-count indictment alleging federal tax charges, announced U.S. Attorney Damon P. Martinez and Ismael Nevarez Jr., Special Agent in Charge of the Phoenix Field Office of IRS Criminal Investigation.
Baños is the owner of the Old Tymer’s Café and Bighorn Sports and Rental, both of which are located in Red River in Taos County, N.M. The indictment, which was filed on April 12, 2016, charges Baños with five counts of filing false tax returns. Baños made his initial appearance this morning in federal court in Albuquerque, N.M. During the proceedings, Baños entered a not guilty plea and was released on conditions of release pending trial.
The indictment charges Baños with violating the federal tax laws during five tax years, 2009 through 2013, by filing tax returns that failed to report his true income. The indictment alleges that during each of those tax years, Baños falsely reported that he had a negative income in the individual income tax returns he filed with the IRS.
If convicted, Baños faces a statutory maximum penalty of three years in federal prison. Charges in indictments are merely accusations and defendants are presumed innocent unless found guilty in a court of law.
This case was investigated by the Albuquerque office of IRS Criminal Investigation and is being prosecuted by Assistant U.S. Attorney Reeve L. Swainston.
Statement by the United States Attorney’s Office Following the Sentencing of Former U.S. Speaker of the House John Dennis HastertRead the Press Release
U.S. District Judge Thomas M. Durkin for the Northern District of Illinois today sentenced John Dennis Hastert, 74, of Plano, Illinois, to 15 months in federal prison. Hastert pleaded guilty last year to one count of illegally structuring cash withdrawals in order to evade financial reporting requirements.
After the sentencing hearing, the U.S. Attorney’s Office for the Northern District of Illinois issued the following statement:
“With this case, the Office sought to hold Mr. Hastert accountable for the crimes he committed that could still be prosecuted: illegally structuring cash withdrawals and lying to the government about his motive for engaging in that activity. All of us have been inspired by the strength and bravery of the victims and witnesses who came forward in the most challenging of circumstances. As in all cases, the Office is dedicated to doing everything we can to help victims and their families seek justice. It is our hope that the sentence imposed today will promote respect for the law.”
The sentencing was announced by U.S. Attorney Zachary T. Fardon for the Northern District of Illinois; Special Agent in Charge Michael J. Anderson of the Chicago Office of the Federal Bureau of Investigation; and Special Agent in Charge James D. Robnett of the Chicago Office of the Internal Revenue Service-Criminal Investigation Division.
The government is represented by Assistant U.S. Attorneys Steven A. Block and Diane MacArthur.
Statement by the United States Attorney’s Office Following the Sentencing of Former U.S. Speaker of the House John Dennis HastertRead the Press Release
CHICAGO — U.S. District Judge Thomas M. Durkin today sentenced JOHN DENNIS HASTERT, 74, of Plano, to 15 months in federal prison. Hastert pleaded guilty last year to one count of illegally structuring cash withdrawals in order to evade financial reporting requirements.
After the sentencing hearing, the United States Attorney’s Office for the Northern District of Illinois issued the following statement:
“With this case, the Office sought to hold Mr. Hastert accountable for the crimes he committed that could still be prosecuted: illegally structuring cash withdrawals and lying to the government about his motive for engaging in that activity. All of us have been inspired by the strength and bravery of the victims and witnesses who came forward in the most challenging of circumstances. As in all cases, the Office is dedicated to doing everything we can to help victims and their families seek justice. It is our hope that the sentence imposed today will promote respect for the law.”
The sentencing was announced by Zachary T. Fardon, United States Attorney for the Northern District of Illinois; Michael J. Anderson, Special Agent-in-Charge of the Chicago Office of the Federal Bureau of Investigation; and James D. Robnett, Special Agent-in-Charge of the Chicago Office of the Internal Revenue Service Criminal Investigation Division.
The government is represented by Assistant U.S. Attorneys Steven A. Block and Diane MacArthur.
Springfield Man Pleads Guilty to Gun PossessionRead the Press Release
BOSTON – A Springfield man previously convicted of rape pleaded guilty in U.S. District Court in Springfield yesterday in connection with unlawfully selling a firearm.
Hector Nieves, 35, pleaded guilty to one count of possession of a firearm by a convicted felon. U.S. District Court Judge Mark G. Mastroianni scheduled sentencing for July 12, 2016.
On Sept. 2, 2015, Nieves negotiated the sale of a .22 caliber pistol and ammunition to a cooperating witness. He received the cash from the cooperating witness, and arranged for his co-conspirator, Mark Alexander, to deliver the firearm and ammunition. Following previous convictions of rape and failure to register as a sex offender, Nieves was prohibited from possessing a firearm and ammunition.
The charging statute provides for a sentence of no greater than 10 years in prison, three years of supervised release and a fine of $250,000. Actual sentences for federal crimes are typically less than the maximum penalties. Sentences are imposed by a federal district court judge based upon the U.S. Sentencing Guidelines and other statutory factors.
United States Attorney Carmen M. Ortiz; Harold H. Shaw, Special Agent in Charge of the Federal Bureau of Investigation, Boston Field Division; and Daniel J. Kumor, Special Agent in Charge of the Bureau of Alcohol, Tobacco, Firearms and Explosives, Boston Field Division, made the announcement. The case was also investigated by the Western Massachusetts Gang Task Force. The case is being prosecuted by Assistant U.S. Attorney Alex J. Grant of Ortiz’s Springfield Office.
Social media and online safety forum set for next week in Ohio CountyRead the Press Release
WHEELING, WEST VIRGINIA – A community forum highlighting the latest advances in social media and technology will take place next week in Wheeling in order to help parents keep their children safe online.
The United States Attorney’s Office and the West Virginia State Police will partner with Ohio County Schools to host the event on Wednesday, May 4 at 6:00 p.m. at Woodsdale Elementary School. It will feature a presentation outlining current trends in social media and Internet usage by kids of all ages. Strategies will be offered to help ensure that young people remain safe and that teenagers use technology responsibly. Following the presentation, representatives from the U.S. Attorney’s Office and the State Police will take questions and address concerns raised by the audience.
“In recent years, advances in technology have occurred so rapidly that many parents have a hard time keeping up with their kids,” noted U.S. Attorney Ihlenfeld. “Technology can enhance the ability to learn and communicate, but at the same time it can put our children in harm’s way. We invite the community to join us to discuss the challenges that we all face in keeping our kids safe in the digital age.”The event is open to the public and those attending will be permitted to park on the playground at the school. Anyone with questions about the event should contact the U.S. Attorney’s Office at 304-234-0100.
Shenandoah Man Pleads Guilty to Heroin Trafficking ConspiracyRead the Press Release
SCRANTON—The United States Attorney’s Office for the Middle District of Pennsylvania announced that a 38-year-old Shenandoah resident connected to a large-scale heroin trafficking ring that operated in Schuylkill County during 2012 through September 2015, pleaded guilty today before Senior U.S. District Court Judge James M. Munley in Scranton.
According to United States Attorney Peter Smith, Thomas Nestor pleaded guilty to conspiracy to distribute more than 100 grams of heroin. Nestor admitted to distributing heroin and traveling with co-conspirators to obtain heroin for distribution. He was involved in distributing and possessing with intent to distribute between 400 and 700 grams, which is equivalent to between 13,000 and 23,000 retail bags of heroin,
Nestor was indicted by a federal grand jury in Scranton in September 2015, as a result of an investigation by the Federal Bureau of Investigation, investigators from the Pennsylvania State Police, and Shenandoah Police. Assistant U.S. Attorney Francis P. Sempa is prosecuting the case.
Judge Munley ordered a presentence investigation to be completed, and scheduled sentencing for July 28, 2016. Nestor faces a mandatory minimum sentence of five years in prison and a potential maximum sentence of 40 years in prison.
This case was brought as part of a district wide initiative to combat the nationwide epidemic regarding the use and distribution of heroin. Led by the United States Attorney’s Office, the heroin initiative targets heroin traffickers operating in the Middle District of Pennsylvania and is part of a coordinated effort among federal, state and local law enforcement agencies.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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Schuylkill Federal Correctional Institution Inmate Charged for Possession of A Homemade WeaponRead the Press Release
SCRANTON - The United States Attorney’s Office for the Middle District of Pennsylvania announced that a felony Criminal Indictment was returned by a federal grand jury in Scranton on April 26, 2016, charging federal prison inmate Davon Perry, age 36.
According to United States Attorney Peter Smith, Perry was charged with allegedly possessing a homemade sharpened weapon in June of 2015.
If convicted, Perry could be imprisoned for a maximum sentence of up to 5 years and a fine in the amount of $250,000.
The investigation was conducted by the FBI. The case is assigned to Assistant United States Attorney Todd K. Hinkley.
Indictments and Criminal Informations are only allegations. All persons charged are presumed to be innocent unless and until found guilty in court.
A sentence following a finding of guilt is imposed by the Judge after consideration of the applicable federal sentencing statutes and the Federal Sentencing Guidelines.
The maximum penalty under federal law is 5 years of imprisonment, a term of supervised release following imprisonment, and a fine. Under the Federal Sentencing Guidelines, the Judge is also required to consider and weigh a number of factors, including the nature, circumstances and seriousness of the offense; the history and characteristics of the defendant; and the need to punish the defendant, protect the public and provide for the defendant's educational, vocational and medical needs. For these reasons, the statutory maximum penalty for the offense is not an accurate indicator of the potential sentence for a specific defendant.
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School Police Officer Indicted by Federal Grand Jury on Attempted Sex Trafficking Charges for Allegedly Using Internet to Entice MinorRead the Press Release
LOS ANGELES – A police officer employed by the Los Angeles Unified School District was taken into federal custody this morning after being named in an indictment that charges him with the attempted sex trafficking of a child.
Mauricio Edgardo Estrada, 28, who has been placed on administrative leave by LAUSD, surrendered himself to federal authorities after he was indicted yesterday by a federal grand jury.
The two-count indictment charges Estrada with attempted sex trafficking of a child and use of the Internet to induce a minor to engage in criminal sexual activity.
The case against Estrada is the result of an undercover operation by the Los Angeles Regional Human Trafficking Task Force, which includes representatives of U.S. Immigration and Customs Enforcement’s Homeland Security Investigation (HSI), the Los Angeles County Sheriff’s Department and the Department of State’s Diplomatic Security Service. The Task Force was conducting an anti-sex trafficking operation in Artesia and posted an advertisement on the Craigslist website that was designed to attract individuals interested in engaging in commercial sex acts with minors.
“Protecting children from sexual exploitation means focusing our resources on all aspects of the industry that preys upon young people,” said United States Attorney Eileen M. Decker. “Prosecutors in my office who deal with sex crimes against children have a long history of targeting those who produce, distribute and possess child pornography. We also aggressively prosecuted pimps who prostitute minors and use physical violence to establish and maintain control over their victims. Now we are turning our attention to customers who seek out young prostitutes, because their demand fuels an industry that causes so much harm to so many young people.”
On April 20, Estrada responded to the advertisement via e-mail and subsequently engaged in a series of text messages with an undercover agent he thought was a 15-year-old girl, according to the indictment. Estrada agreed to pay $150 to engage in sex with the “girl.” In preparation for the encounter, Estrada purchased condoms. When he arrived at a gas station in Artesia for the encounter with the girl, Estrada had approximately $150 in his possession. He was taken into custody by the Los Angeles County Sheriff’s Department and subsequently released from county jail after posting bond.
“It’s deeply troubling when those sworn to protect our kids, are accused of an act that violates every tenet of the oath they pledged to uphold,” said Joseph Macias, special agent in charge for HSI Los Angeles. “The reality is that the defendants in child exploitation cases come from all walks of life and access to children is all too often the common denominator. The predators who’re brazenly stalking our children online need to know that HSI, together with its law enforcement partners, is working tirelessly to track you down and hold you accountable for your crimes.”
Estrada is expected to be arraigned on the indictment this afternoon in United States District Court in downtown Los Angeles.
An indictment contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
Both of the charges in the indictment carry a mandatory minimum sentence of 10 years in federal prison and statutory maximum sentence of life.
Last week, a San Pedro man was indicted on charges of attempted sex trafficking of a child and use of the Internet to induce a minor to engage in criminal sexual activity. Joshua Paul Crouch allegedly sought to have sex with a 13-year-old girl after responding to an advertisement on backpage.com (see: http://go.usa.gov/cuZnP). Crouch is scheduled to be arraigned on the indictment this afternoon in United States District Court.
President Barack Obama has declared April 2016 as National Child Abuse Prevention Month, during which “we recommit to giving every child a chance to succeed and to ensuring that every child grows up in a safe, stable, and nurturing environment that is free from abuse and neglect.”
Last month, Attorney General Loretta E. Lynch released the 2016 National Strategy for Child Exploitation Prevention and Interdiction (http://go.usa.gov/cuWMR). The strategy provides a comprehensive threat assessment of the nature and scope of the current dangers facing our nation’s children, including child pornography offenses, sextortion and live-streaming of child sexual abuse, child sex trafficking, child sex tourism and sex offense registry violations.
Santa Clara Insurance Broker Charged with Wire Fraud and Mail Fraud in Alleged Theft from Widow’S Insurance PolicyRead the Press Release
SAN JOSE – Gary Thornhill was charged with wire fraud and mail fraud in connection with an alleged attempt to steal more than a million dollars from a client’s trust account, announced United States Attorney Brian J. Stretch and Federal Bureau of Investigation Acting Special Agent in Charge Bertram Fairries.
In an indictment unsealed today, Thornhill, 63, of Santa Clara, is accused of using his position in a boutique insurance brokerage to withdraw funds from a widow’s client trust account. According to the indictment, Thornhill was a fiduciary who had responsibility for management and oversight of an account containing the proceeds of an insurance policy he created for a married couple years earlier. Beginning in January 2011, several years after the husband passed away, Thornhill allegedly transmitted written requests for funds to be drawn against the cash value of the widow’s insurance policy and then deposited the proceeds into an account he exclusively controlled as trustee for the policy. Throughout calendar year 2011, Thornhill allegedly withdrew almost $1.5 million from the account and put the funds into the account which he controlled and used for his own personal benefit. Thornhill is charged with one count of wire fraud, in violation of 18 U.S.C. § 1343, and one count of mail fraud, in violation of 18 U.S.C. § 1341.
Thornhill was arrested today and made his initial appearances in federal court in San Jose before the Honorable Paul S. Grewal, U.S. Magistrate Judge. Thornhill was released on a $500,000 bond with conditions. His next scheduled appearance is set for Monday, May 2, at 1:30 p.m. before Magistrate Judge Cousins for review of the bond conditions.
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 defendant faces for each count a maximum sentence of 20 years’ imprisonment, a fine of $250,000 or twice the gross gain or twice the gross loss, plus restitution. 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 Timothy J. Lucey is prosecuting the case with the assistance of Laurie Worthen. The prosecution is the result of an investigation the by the Federal Bureau of Investigation.
Saline County Man Sentenced for Methamphetamine OffenseRead the Press Release
David E. Garris II, 36, of Eldorado, Illinois, was sentenced today in United States District Court in Benton to a term of 132 months in prison for possessing with intent to distribute 39 grams of methamphetamine, announced James L. Porter, Acting United States Attorney for the Southern District of Illinois.
Garris was found to be in possession of the methamphetamine and $4180.00 in cash during a routine traffic stop conducted by the Illinois State Police on March 21, 2015, in Saline County. At the time of the traffic stop Garris was on parole from the Illinois Department of Corrections after being sentenced to 5 years in state prison in 2013 for possessing methamphetamine manufacturing materials in Saline County.
In addition to the 132 month federal sentence, Garris was ordered to pay $300 in fines and special assessments to the United States and was placed on a 3 year term of supervised release to follow his incarceration.
The case was investigated by the Carmi office of the Southern Illinois Drug Task Force and the Illinois State Police and was prosecuted by Assistant United States Attorney James M. Cutchin.
Robert Durst Sentenced to over Seven Years in PrisonRead the Press Release
U.S. Attorney Kenneth A. Polite announced that ROBERT DURST, age 73, was sentenced today after previously pleading guilty to being a felon in possession of a firearm.
U.S. District Judge Kurt D. Engelhardt sentenced DURST to 85 months in prison, to be followed by three years of supervised release. Additionally, DURST was ordered to pay a $5,000 fine and a $100 special assessment.
A judge in Los Angeles, California, signed an arrest warrant for DURST on March 11, 2015, for the 2000 murder of Susan Berman. Agents of the Federal Bureau of Investigation (“FBI”), New Orleans Field Office, located DURST in a local hotel on March 14, 2015, where he had checked in under the alias “Everette Ward.” A lawful search of DURST’s hotel room found him to be in possession of a loaded Smith and Wesson .38 caliber revolver, a realistic mask, and over $40,000 in cash. DURST had previously been convicted of multiple felonies and was indicted in the Eastern District of Louisiana on April 10, 2015, for being a felon in possession of a firearm.
U.S. Attorney Polite would like to thank the hard work of the Orleans Parish District Attorney’s Office, the FBI, the Los Angeles Police Department, and the Los Angeles County District Attorney’s Office in this matter. Assistant United States Attorneys Michael McMahon and Myles Ranier were in charge of the prosecution.
Ripon Man Arraigned for Bankruptcy Fraud IndictmentRead the Press Release
SACRAMENTO, Calif. — Kulvir Singh Cheema, 55, of Ripon, was arraigned today before U.S. Magistrate Judge Edmond F. Brennan on bankruptcy fraud charges, United States Attorney Benjamin B. Wagner announced.
On March 31, 2016, a federal grand jury returned an indictment against Cheema, charging him with false bankruptcy declaration, concealment of bankruptcy assets, and fraudulent transfer. At the arraignment, Cheema entered a plea of not guilty. A status conference is scheduled for May 20, 2016 before U.S. District Judge Garland E. Burrell Jr.
According to court documents, when Cheema filed for bankruptcy in April 2011, he provided false information about his employment and wages that he received, his current income, his residence, and whether he had lost a piece of property in the past. He is also alleged to have concealed income that he received, as well as assets such as trucks and bank accounts that he controlled and that were held in other names. In January 2010, in contemplation of filing for bankruptcy, Cheema knowingly and fraudulently transferred ownership of his residence in Ripon from himself to another person.
This case is the product of an investigation by the Federal Bureau of Investigation. Assistant U.S. Attorneys John K. Vincent and Brian A. Fogerty are prosecuting the case.
If convicted, Cheema faces a maximum statutory penalty of five years in prison for each of the three bankruptcy counts and up to a $250,000 fine. Any sentence, however, would be determined at the discretion of the court after consideration of any applicable statutory factors and the Federal Sentencing Guidelines, which take into account a number of variables. The charges are only allegations; the defendant is presumed innocent until and unless proven guilty beyond a reasonable doubt.
Pulaski County, Arkansas, Sheriff's Office Sergeant Arrested for Mail FraudRead the Press Release
LITTLE ROCK— Christopher R. Thyer, United States Attorney for the Eastern District of Arkansas, today announced the arrest of Kelvin Hendrix, 47, a Sergeant with the Pulaski County Sheriff’s Office for mail fraud. Federal agents with the Federal Bureau of Investigation (FBI) arrested Hendrix, a 25-year veteran with the Sheriff’s Office, when he reported for work. Upon arrest, agents executed a federal search warrant on Hendrix’s residence in Bauxite, Arkansas. Agents also arrested Jennifer Gann of Sherwood, 35, an employee of Cruse Uniforms and Equipment, for her involvement in the mail fraud scheme.
The arrest stemmed from a federal complaint signed by Judge Jerome T. Kearney.
"Today Sergeant Kelvin Hendrix of the Pulaski County Sheriff’s Office was arrested on a federal criminal complaint for mail fraud," Thyer said. "As alleged in the complaint, Sergeant Hendrix was using his position with the Sheriff’s Office to purchase firearms, which were ultimately paid for by Pulaski County," "As soon as Sergeant Hendrix’s scheme was discovered, Sheriff Doc Holladay immediately notified the FBI and turned much of the investigation over to them.
"While it is disheartening to learn that a 25-year veteran of the Sheriff’s Office would violate the public’s trust in such a manner, it is reassuring to know that Sheriff Holladay and the other good men and women of the Pulaski County Sheriff’s Office will treat one of their own in the same manner they would treat any other person alleged to be involved in criminal activity," concluded Thyer.
"The initial allegation was brought to my attention." Holladay said. "The information was given to the Federal Bureau of Investigation due to the nature of the investigation."
The FBI discovered that, as part of their mail fraud scheme, Hendrix and Gann stole funds allocated by the Pulaski County Sheriff’s Office for the purchase of employee uniforms and used those stolen funds to purchase firearms from Cruse. Between July 2015 and April 2016, Hendrix and Gann used this scheme to purchase at least 25 firearms.
The charge of mail fraud carries a statutory penalty of not more than 20 years’ imprisonment, not more than a $250,000 fine, and not more than three years of supervised release. The criminal complaint contains only allegations. A federal Grand Jury will decide whether to indict on these charges. Hendrix and Gann are presumed innocent until proven guilty.
This case was investigated by the Federal Bureau of Investigation. The case is being prosecuted by Assistant United States Attorney Benecia B. Moore.
Prior Felon from Roswell Pleads Guilty to Violating Federal Narcotics and Firearms LawsRead the Press Release
ALBUQUERQUE – Javier Madrid, 28, of Roswell, N.M., pleaded guilty today in federal court in Las Cruces, N.M., to violating the federal narcotics trafficking and firearms laws under a plea agreement with the U.S. Attorney’s Office.
Madrid was arrested in Nov. 2015, on a criminal complaint charging him with possession of methamphetamine, heroin and cocaine with intent to distribute and being a felon in possession of ammunition. According to the complaint, on July 31, 2015, law enforcement agents executed a federal search warrant on Madrid’s residence and vehicle in Roswell where they discovered 17 grams of methamphetamine, 25 grams of heroin, 42 grams of cocaine, $3,960 in cash, and multiple rounds of ammunition.
Madrid was subsequently indicted on Feb. 17, 2016, and charged with possession of methamphetamine, heroin and cocaine with intent to distribute and being a felon in possession of ammunition. According to the indictment, Madrid committed these crimes on July 31, 2015, in Chaves County, N.M. At the time, Madrid was prohibited from possessing firearms or ammunition because he previously had been convicted of a narcotics trafficking crime.
During today’s proceedings, Madrid pled guilty to the indictment. In entering the guilty plea, Madrid admitted that on July 31, 2015, law enforcement agents executed a search warrant at his home and seized methamphetamine, heroin and cocaine, which he intended to distribute to others. Madrid also admitted that the agents seized multiple rounds of ammunition during the search, which he was prohibited from possessing because of his prior felony convictions.
This case was investigated by the Roswell office of the FBI, the New Mexico State Police and the Roswell Police Department. Assistant U.S. Attorney Randy M. Castellano of the U.S. Attorney’s Las Cruces Branch Office prosecuted 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, the Albuquerque City Council, 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.
Prescription Drug Take-Back Day to Take Place on Saturday, April 30, 2016Read the Press Release
ROANOKE, VIRGINIA – United States Attorney John P. Fishwick Jr. announced that the United States Attorney’s Office is proud to once again partner with local law enforcement, Roanoke Area Youth Substance Abuse Coalition (RAYSAC), the Drug Enforcement Administration and the Western Virginia Water Authority to collect expired, unused and unwanted prescription drugs for safe destruction on Saturday, April 30, from 10 a.m. to 2 p.m. at ten area locations. The public is invited to bring unused or unwanted medications to this free and anonymous event that is part of the nationwide prescription drug “Take-Back” program that seeks to prevent prescription pill abuse, theft and environmental concerns.
“Working with our law enforcement and community partners to properly collect and dispose of prescription drugs is tremendously important to all of us,” United States Attorney Fishwick said today. “I look forward to seeing our friends and neighbors this Saturday at the Berglund Center parking lot to help in this important cause.”
This is the valley’s 11th such take-back event. To date, over 17,000 pounds of prescription medications have been turned in by area citizens for proper disposal making the Roanoke-area one of the largest collection locations in the state. This Saturday there will be ten collection locations in the valley: Roanoke Civic (Berglund) Center parking lot, the Super Shoes parking lot on West Main in Salem, Kroger parking lots in Daleville, Vinton (Hardy Road), Tanglewood Mall, Bonsack, Colonial/Brambleton and Westlake as well as the Roanoke County Fire and Rescue Station #1 on Hershberger Road and the Market Street Pharmacy in Craig County. (www.dea.gov for other sites in the region)
This initiative addresses vital public safety and public health issues. Medications that languish in home cabinets are highly susceptible to diversion, misuse and abuse. Rates of prescription drug abuse in the U.S. and in the valley are increasing at alarming rates, as are the number of accidental poisonings and overdoses due to these drugs. Studies show that ninety-percent of abused prescription drugs are obtained from family and friends, including from the home medicine cabinet. In fact, the majority of commonly abused drugs by teenagers are prescription medications.
In addition, flushing medications down the drain can result in trace amounts of pharmaceuticals showing up in our nation’s waterways. This initiative offers a safe and convenient disposal option for the valley residents.
This initiative is sponsored by RAYSAC, the Western Virginia Water Authority, Prevention Council of Roanoke County, U.S. Drug Enforcement Administration, Roanoke County Police Department, Roanoke Police Department, Botetourt County Sheriff’s Department, Salem Police Department, Roanoke County Sheriff’s Department, Vinton Police Department, Roanoke Valley Academy of Medicine, the U.S. Attorney’s Office Western District of Virginia, the Virginia State Police and the VA National Guard.
By working together to provide a free, secure place to dispose of unwanted medications, the law enforcement agencies, RAYSAC and the Western Virginia Water Authority are helping prevent drug abuse, protecting our valley’s waterways and making our communities safer.
Portland Man Pleads Guilty to Additional Bank Robbery ChargesRead the Press Release
Contact: James W. Chapman, Jr.
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: United States Attorney Thomas E. Delahanty II announced that Jimmy Odong, 26, of Portland, pleaded guilty in U.S. District Court to committing four bank robberies in Portland. The charges arise from the robberies of University Credit Union on May 14, 2015; TruChoice Federal Credit Union on May 26, 2015; and CPort Credit Union and Bank of America, both on June 19, 2015.
In the robberies, Odong was captured on bank security cameras wearing a hat or wig that partially disguised his appearance, he demanded cash from tellers, and he brandished what appeared to be a gray or black semiautomatic handgun.
On January 20, 2016, Odong pled guilty to the robbery of Key Bank in Freeport, Maine, on July 17, 2015, and awaits sentencing.
The defendant faces up to 20 years in jail and a $250,000 fine for each robbery. According to a plea agreement, Odong has agreed to be sentenced for all of the robberies to a total term of imprisonment of between 12 years and three months and 14 years. He will be sentenced after completion of a presentence investigation report prepared by the U.S. Probation Office.
The investigation was conducted by Federal Bureau of Investigation (“FBI”); the Freeport, Portland and Brunswick Police Departments; the Maine State Police; and the Southern Maine Gang Task Force comprised of agents and officers from the FBI; the Bureau of Alcohol, Tobacco, Firearms and Explosives; the U.S. Drug Enforcement Administration; U.S. Immigration and Customs Enforcement’s Homeland Security Investigations; and the Portland, South Portland, Lewiston and Biddeford Police Departments. U.S. Attorney Delahanty praised the cooperation among these law enforcement agencies noting that “these bank robberies were quickly solved because local, state, and federal law enforcement agencies worked closely together.”
Press AdvisoryRead the Press Release
SYRACUSE, NEW YORK – United States Attorney Richard S. Hartunian and the United States District Court for the Northern District of New York will host, Intensive Reentry Court: Recognizing Our Partners, Celebrating Our Successes, tomorrow (Thursday April 28, 2016) at 11:00 am in the Ceremonial Courtroom of the Federal Courthouse in Syracuse.
The event is part of the United States Department of Justice Reentry Week (April 24-30, 2016). Successful graduates of the Intensive Reentry Court, all former federal prisoners, will be acknowledged as will community stakeholders who have helped them in their transition from prison to become contributing members of society. A short video, "Intensive Reentry Court: Where a Second Chance Begins," will be shared.
United States Attorney Richard S. Hartunian will be available for interviews following the conclusion of the event.
No further information will be provided prior to the event.
Thursday, April 28, 2016
11:00 AM to 12:30 PM
Federal Courthouse
100 S. Clinton Street
Syracuse, New York
Ceremonial Courtroom, 3rd FloorOrange County Pilot Charged with Flying Private Jet with Passengers Onboard without Having Proper License Issued by FAARead the Press Release
LOS ANGELES – An Irvine man was arrested this morning on federal charges of illegally flying a twin-engine Falcon 10 turbojet airplane with passengers onboard without having a valid pilot’s license.
Arnold Gerald Leto III, 36, was charged in a criminal complaint filed yesterday in United States District court with operating an aircraft in air transportation without a valid airman’s certificate.
The affidavit in support of the criminal complaint alleges that Leto’s pilot’s license was revoked earlier this year, he operated the Falcon without having the required co-pilot, and he was never certified to fly this type of aircraft.
Leto is scheduled to be arraigned on the felony offense this afternoon in United States District Court.
Leto is charged will illegally flying the Falcon 10 from Van Nuys Airport to Las Vegas, Nevada, on April 8. Leto allegedly operated the aircraft with approximately eight passengers on board.
“Federal regulations governing the operation of aircraft and other common carriers are designed to protect the traveling public,” said United States Attorney Eileen M. Decker. “The investigation into Mr. Leto shows that he flagrantly violated these rules – and continued to do so after the FAA took action to take him out of the air. A swift and thorough investigation by the Department of Transportation has now improved the safety of all air travelers.”
According to the complaint, the aircraft that Leo piloted alone is a complex aircraft that requires two pilots to operate. Furthermore, Leto’s defendant’s pilot certificate – which he failed to surrender after it was revoked by the Federal Aviation Administration in January – did not have a turbojet-type rating that would authorize him to fly that airplane.
A criminal complaint contains allegations that a defendant has committed a crime. Every defendant is presumed to be innocent until and unless proven guilty in court.
The charge alleged in the complaint carries a statutory maximum penalty of three years federal prison.
This case was investigated by the Department of Transportation – Office of Inspector General, with assistance by the Federal Aviation Administration.
“This case that alleges operating an aircraft without a valid airman’s certificate is a clear signal that those who would seek to circumvent or disregard transportation-related laws and regulations will face serious repercussions,” said William Swallow, regional Special Agent-In-Charge, U.S. Department of Transportation, Office of Inspector General. “Our agents will continue to work with federal, state, and local authorities to ensure safety for the traveling public.”
Notice of Press ConferenceRead the Press Release
Contact Person: Lt. Curtis Wilson Office (803) 576-1429, Cell (803) 309-1624
COLUMBIA, SOUTH CAROLINA – Assistant Special Agent in Charge Robert Murphy, United States Drug Enforcement Administration, and Sheriff Leon Lott, Richland County Sheriff’s Office, will hold a press conference at 11:00 a.m., Thursday, April 28, 2016 at the Richland County Sheriff’s Office to discuss the 2016 Drug Takeback.
WHEN: Thursday, April 28, 2016 TIME: 11:00 am WHERE: Richland County Sheriff's Office
5623 Two Notch Road, Columbia, SC NOTE: All media should be in place 20 minutes prior to start.####
New York man pleads guilty to Federal heroin crimeRead the Press Release
BECKLEY, W.Va. – A New York man pleaded guilty today to a federal drug crime, announced Acting United States Attorney Carol Casto. Nicholas Thomas Novak, 32, of Brentwood, New York, entered his guilty plea to possession with intent to distribute heroin.
Novak admitted that on September 22, 2015, he possessed about 150 stamps or packets of heroin at a residence in Frankford in Greenbrier County. Novak further admitted that he brought the heroin to Greenbrier County for distribution.
Novak faces up to 20 years in federal prison when he is sentenced on August 17, 2016.
The investigation was conducted by the Greenbrier Valley Drug and Violent Crime Task Force. Assistant United States Attorney John File is handling the prosecution. The plea hearing was held before United States District Judge Irene C. Berger.
This case was prosecuted under the Greenbrier Valley Heroin and Pill Initiative, part of an ongoing effort led by the United States Attorney’s Office for the Southern District of West Virginia to combat the illicit sale and misuse of prescription drugs and heroin. The U.S. Attorney’s Office, joined by federal, state and local law enforcement agencies, is committed to aggressively pursuing and shutting down illegal pill trafficking, eliminating open air drug markets, and curtailing the spread of opiate painkillers and heroin in communities across the Southern District.
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New York Man Sentenced to 21 Years for Heroin and Crack Cocaine TraffickingRead the Press Release
Contact: David B. Joyce
Assistant United States Attorney
Tel: (207) 780-3257Portland, Maine: The United States Attorney’s Office announced that James Winbrone, 32, of Brooklyn, New York, was sentenced today in U.S. District Court by Judge D. Brock Hornby to 21 years in prison and six years of supervised release for possessing with intent to distribute heroin and distributing cocaine base, also known as crack cocaine. He was convicted on September 30, 2015, following a two-day bench trial.
Court records reveal that on April 10, 2014 and October 28, 2014, the defendant was involved in the distribution of heroin and crack cocaine in Lewiston. On January 14, 2015, a search warrant executed at a Lewiston apartment used by the defendant resulted in the seizure of cocaine and heroin. The defendant’s sentence was enhanced because of his leadership position and his involvement in an act of violence related to his drug trafficking, namely, the assault of a customer who owed him a drug debt.
The investigation was conducted by the Maine Drug Enforcement Agency, the Maine State Police, and the Southern Maine Gang Task Force, which is comprised of agents and officers from the Federal Bureau of Investigation; the Portland and Biddeford Police Departments; the Bureau of Alcohol, Tobacco, Firearms and Explosives; U.S. Immigration & Customs Enforcement’s Homeland Security Investigations; and the U.S. Drug Enforcement Administration. Assistance was also provided by the Lewiston and Auburn Police Departments and the Androscoggin County Sheriff’s Office.
New Orleans Man Charged with Possession of Stolen MailRead the Press Release
U.S. Attorney Kenneth A. Polite announced that JOHN WAYNE THOMAS, age 36, of New Orleans, was charged today in a one-count Bill of Information for possession of stolen mail.
According to the Bill of Information, on or about May 23, 2015, THOMAS was found in possession of mail matter than had been stolen, taken, embezzled and abstracted from a mail receptacle.
If convicted, THOMAS faces a maximum term of imprisonment of five years, a fine of up to $250,000, three years of supervised release following imprisonment, and a $100 special assessment.
U. S. Attorney Polite reiterated that a Bill of Information is merely a charge and that the guilt of the defendant must be proven beyond a reasonable doubt.
U.S. Attorney Polite praised the work of the United States Postal Inspection Service and Louisiana State Police in investigating this matter. Assistant United States Attorney Irene González is in charge of the prosecution.
New Hampshire Woman Pleads Guilty to Social Security, Food Stamp, and Wire FraudRead the Press Release
CONCORD, N.H. – United States Attorney Emily Gray Rice announced that Bonita Kitson, 44, of Boscawen, pleaded guilty in United States District Court for the District of New Hampshire to Social Security Fraud, Making False Statements, and Wire Fraud.
Kitson received Social Security disability benefits, Food Stamps, and Aid to the Permanently and Totally Disabled for over two years prior to her marriage in October 2010. Her husband also received Social Security disability benefits and Food Stamps before they married. Applicants for each of these benefits programs must have limited income and resources in order to qualify for assistance. The income of all members of a household is considered when determining an individual’s eligibility for Food Stamps and Aid to the Permanently Disabled.
Although they each continued to receive disability benefits and Food Stamps after they wed, neither Kitson nor her husband reported their marriage or their shared residence to Social Security or to the New Hampshire Department of Health and Human Services. To the contrary, Kitson advised both agencies that she and her husband were merely friends. The marriage was not disclosed until October 2014, when Kitson advised Social Security that her husband passed away one month earlier as part of her application for a lump-sum death benefit. As a result of this concealment, Kitson and her husband fraudulently received an additional $27,654 in disability benefits and Food Stamps, and Kitson received $1,134 in Aid to the Permanently and Totally Disabled to which she was not entitled.
Kitson is scheduled to be sentenced on July 29, 2016. The statutory maximum sentence for the charges is 20 years’ imprisonment. The court will impose a sentence after it has had an opportunity to review a presentence report prepared by the United States Probation and Pretrial Services Office and consider the advisory sentencing guidelines. Kitson was released on conditions pending sentencing.
The case was investigated by the Social Security Administration’s Office of the Inspector General in conjunction with the New Hampshire Department of Health and Human Services’ Special Investigations Unit, and prosecuted by Special Assistant United States Attorney Karen Burzycki.
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New Hampshire Woman Pleads Guilty to Social Security, Food Stamp, and Medicare FraudRead the Press Release
CONCORD, N.H. – Kim Wheeler, 46, of Allenstown, pleaded guilty in United States District Court for the District of New Hampshire to two counts of Social Security Fraud and two counts of Theft of Public Money, announced United States Attorney Emily Gray Rice.
In February 2005, Wheeler began receiving Social Security disability benefits as the representative payee for her minor child. She also received Food Stamps and Qualified Medicare Beneficiary benefits beginning in May 2010. In assessing a minor child’s eligibility for Social Security disability benefits, the income of the natural or adoptive parent with whom the child lives is considered. Similarly, the income of all members of a household is considered when determining eligibility for Food Stamps and Qualified Medicare Beneficiary benefits.
Wheeler failed to disclose that her husband and children’s father, who was employed full-time, lived with her and their children. His income would have rendered their minor child ineligible to receive any Supplemental Security Income benefits, and it would have rendered Wheeler ineligible for Food Stamps and Qualified Medicare Beneficiary benefits. Wheeler concealed her husband’s true residence from the Social Security Administration and from the New Hampshire Department of Health and Human Services, but rather, falsely reported that he did not live with her and their children. When her husband later moved out of the home and began paying child support and alimony to Wheeler, Wheeler failed to disclose this income to Social Security and to the New Hampshire Department of Health and Human Services. As a result of her concealment, Wheeler received $49,636.44 in disability benefits as her child’s representative payee, $12,372 in Food Stamps, and $5,041 in Qualified Medicare Beneficiary benefits that she would not have received if her husband’s residence and her subsequent receipt of support payments had been properly disclosed.
Wheeler is scheduled to be sentenced on August 1, 2016. The statutory maximum sentence for the charges is 10 years’ imprisonment. The court will sentence Wheeler after it has had an opportunity to review a presentence report prepared by the United States Probation and Pretrial Services Office and considers the advisory sentencing guidelines. She was released on conditions pending sentencing.
The case was investigated by the Social Security Administration’s Office of the Inspector General in conjunction with the New Hampshire Department of Health and Human Services’ Special Investigations Unit, and prosecuted by Special Assistant United States Attorney Karen Burzycki.
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